China National is a Japan-invested supplier of parkas and windbreakers based in Wuxi, Jiangsu province. Its 500-worker factory focuses on high volume production of midrange and high-end jackets primarily for the Japan market.

OEM orders account for 60 percent of exports and ODM, 30 percent. The company also markets its products under the in-house cnclady brand.

The company is building a new factory in Yixing, about 100 km away from the current site, with a total area of 30,000 sqm. In October 2005, the first phase covering 12,000 sqm was put into operation.

Apart from jackets, the company makes shirts and sweaters for export.

Products
Windbreakers, down jackets and parkas account for more than one-third of China National's output. Priced at around US$20 each, the jackets mainly have a micro suede or polyester taffeta shell and down padding. Zippers, snaps, buttons and toggles are used for closure. All of the jackets do not have hoods.

China National sources materials from Jiangsu or Zhejiang, but also imports from Japan, South Korea or Taiwan on buyers' requests.

The 30-member R&D team releases 20 to 30 new styles for the autumn/winter and spring/summer seasons. Counter samples can be made within three to five days provided the warehouse has enough supply of needed raw materials and accessories.

Some of the company's new jacket releases have sleeve cuffs similar to those seen in shirts. Many of these will come in shades of dark pink, shell and wine. China National will also releasing more jackets that come with a sweater in matching color, fabric and style.

Because of higher labor costs, the company will raise product prices by 10 to 15 percent in coming months. The government is requiring companies to provide better benefits and insurance to workers, effectively raising labor costs by about 10 percent.

Manufacturing
China National has two three-storey buildings, one each for sweater and jacket production.

In the jacket factory, one section of the third floor serves as the warehouse for accessories, which are sourced locally. The cutting workshop, also located on this floor, has eight or nine workers with four cutters.

Workers first plan the design's layout to maximize usage before the fabric is cut. The current utilization rate for jacket fabric is 90 percent. Each cut piece is examined for defects such as stains, oil, grease or holes before it is sent to the sewing workshop.

There are two sewing workshops on the second floor. Both workshops are equipped with local and imported mechanical and computerized sewing machines.

Plain jackets or those with silkscreened patterns are sent to the first floor for finishing and ironing. But models that need embroidery and crochet work are sent to subcontractor factories.

All outsourced fabric is inspected by machine. All finished garments are visually inspected before they are packed for shipping.

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