申洲国际集团

Since its foundation in 1990, Shenzhou International evolved from a small clothing manufacturer into a world-leading supplier, serving well-known sports and leisure brands such as Uniqlo, Nike, Adidas and Puma. After its listing on the Main Board of the Hong Kong Stock Exchange in 2005, Shenzhou International began to expand its presence throughout the world, opening factories in Cambodia and Vietnam. By April 2017, its employee base had reached 76,000, with over 25% from outside of China. In recent years, competition has been fierce in the traditional textile and clothing industries and many small and medium-sized enterprises have gone bankrupt. Yet Shenzhou International has continued to increase its sales volume and market share, due to its vertical integration, flexible production and reliable high-quality output. In 2016, it generated RMB 15.1 billion in sales revenue and 2.95 billion in net profit, with a gross margin of around 30% and a net margin of 18%. The group has seen explosive growth in the last ten years. Yet in an age of increasing consumer expectations, can Shenzhou rely on existing models to achieve greater success? The comments of US President Donald Trump on reviving his country’s manufacturing industry have encouraged many firms to invest in plant building in the US (for example, the Fuyao Group of China has established a factory base in the US). However, challenges and opportunities co-exist. The “Made in US” trademark and the support of the American government may well bring opportunities for the new round of improvements to Shenzhou International, but the group's DNA as a "traditional, labor-intensive manufacturer" could impose certain limitations. It could also cause quite a stir if a company from a developing country began opening factories in a developed country. The group has to figure out whether it should set up a US factory as part of its future strategic roadmap. Could the group gain more development space through its own energetic and youthful brand Maxwin and 3D printing-enabled production of the Flyknit shoe fabrics?