The growing of Dalang yarn suppliers(1995-2022)
- In 1995, there is only street called Fuhua North road in Dalang Town where many yarn suppliers open their shops.
- Now, in Fukang Road, Fuhua North Road, Kangfeng Road, Yinkang Road and other professional buildings, there are full of yarn suppliers. Dalang, as the yarn trade center, has gathered more than 2,500 mills, suppliers and traders. The yarn annual turnover is more than RMB30 billion and sells more than 1 million ton. Market-share percentage is more than 60% in the yarn industry. Every year, it launches more than 10,000 kinds of yarns and has about 200 related patents.
How Dalang can become a global yarn Trading Center?
Background: When it comes to the time between 1980s and 1990s, Dongguan undertakes hundreds of knitwear factories come from Hong Kong and hundreds of local enterprises. At this stage, so many companies’ demands promoted high level growth of Dalang yarn enterprise. In 2000, there is more than 2,000 knitwear factories in Dongguan and knitwear annual output more than 100 million pieces. Among them 60% were sold to international market. Due to the huge demands, the yarn trading volume began to increase year by year.
Geographical advantage: Located in the middle of Dongguan. The distance is 1 hour from Hong Kong, Shenzhen and Guangzhou. It has a great advantage to affect the surrounding industrial market.
The rise of fashion industry in Shenzhen: Shenzhen lady’s wear brand began to lead the national fashion after 2000. Shenzhen would vigorously promote the development of fashion industry and also promoted the development of Dalang yarn market. Especially in Shenzhen Nanyou wholesale market, most of the knitwear material are come from Dalang.
Thirteen Hongs in Guangzhou supported Dalang yarn quantity: Thirteen Hongs, White Horse, Sha He and other wholesale markets in Guangzhou has the huge demands of sweaters, and they order more than 90% of the yarn from Dalang.
The rise of stock yarn: With the leading of wholesalers in Shenzhen and Guangzhou, small order with fast delivery and flexible supply chain system has begun to grow. This requires the delivery speed of sweater production to be 7 to 10 days, and yarn ready to be faster and better. The previous order production of yarn has been changed to stock yarn service. Yarn enterprises take the initiative to provide stock service. They develop new products according to global fashion trends every year and lead fashion with their new yarns and stock service.
Dalang yarn trading center in the global textile industry chain
1.The decline of Italian yarn: Between 1980s and 1990s, most of the world’s yarns were produced and purchased in Italy. There are more than thousands of yarn mills located in Italy. Due to the improvement of labor welfare in Europe, 45 days delivery and the transportation cost increase, domestic yarn factories has imported new and updated technology, and began to coordinate with the market more efficiently.
2.Dalang yarn center has undertaken the sales centers of large yarn enterprises such as mills in Jiangsu, Zhejiang and Shandong etc. As there is huge demand for yarn, the yarn factories go to Dalang. Many bosses who are come from Jiangzhe and Chaoshan started to open yarn trading company in Dalang. They sell yarns in Dalang and mills and other facilities still in other cities.
3.Global operation of Hong Kong trade company. Today, Dalang has become a global yarn trading center due to the global orders of Hong Kong foreign firms. Many Hong Kong factories were closed after 2000, but Hong Kong foreign firms were still operated. They transferred orders to Southeast Asia, but most of yarns are purchased in Dalang.
4.Dalang lacal enterprises are approaching to the international market. Since 2010, many yarn enterprises participated in domestic and abroad yarn exhibitions. By this way, they get a large number of international orders.