China
Shenzhen's young entrepreneurs look for their own business model
Kang Caiqi  ·  2023-05-29  ·   Source: NO.22 JUNE 1, 2023
When Shenzhen was designated a special economic zone in 1980, the idea that the small port town in south China would one day become a megacity seemed a long way off. In the 45 years of China's reform and opening up, countless people have flocked to this city of opportunity to start their own businesses, making fortunes for themselves and also making the city ever more prosperous.

Over 30 years ago, a number of export clothing factories took root in Nanyou, in Shenzhen's Nanshan District, due to its proximity to Hong Kong and the Shekou Industrial Zone, China's first export-oriented economic development zone, located in the same district. Today, Nanyou has become fertile ground for independent fashion designers to create their own brands. Lin Dongnuan, founder of clothing brand LINDONG, is one of those designers. Beginning her venture in 2015, this entrepreneur, born in the 1990s, is transforming her business model.

Pursuing a dream 

"To be honest, at first, making money was very simple. The overall idea was to find top-selling items on e-commerce platforms and continuously copy and sell them," Lin told Beijing Review when talking about her initial business model. "The Chinese market is so huge that there will always be customers who are willing to pay for these items. Plus, wholesalers from all over the country tend to come to Nanyou to replenish their stock, so I could make money by selling high volumes with low margins." In less than a year, Lin earned her first pot of gold through this business model.

But gradually, she felt that although this method could bring in money, it could not yield a sense of accomplishment. "To me, reproducing the same kind of clothes is no different from selling fabrics, and I couldn't help thinking that I'd failed in my career as a fashion designer," she said.

Aspiring to create novel clothes, Lin, who is not into exaggerated styles, has put a lot of effort into studying materials, textures and tailoring. "I hope that the clothes I design are tasteful and suitable for all kinds of occasions," she said.

But this requirement is not always easy to meet. In order to achieve the results she's looking for, she often goes back and forth between factories, and repeatedly compares samples to confirm the details. "The factory owners are all tired of me," Lin joked. "They are not even pleased to see my orders because the clothes with unique tailoring, especially the subtle details, can't be mass produced. They often require additional production procedures, which increases production time and generates a high error rate," she added.

Currently this young designer can't make a profit by selling large volumes like she used to, but she doesn't regret her decision. "What's important is I am doing what I love to do. Besides, I find that the younger generations in China, such as those born in the 1990s and 2000s, all value having distinctive personalities. They want to pursue individuality, and are unwilling to dress like the others. For this reason, the previous mode of money-making, massive reproduction of the best-selling clothing, will soon become less profitable," she said. "Although it is quite hard to make the transition, I think it is necessary, because this is the trend of the industry," she added. She also made no secret of her insight as an original designer. "If I demand the utmost level of detail, it will be less likely others will copy my design."

Lin Dongnuan, founder of LINDONG, provides her precise requirements to manufacturers in her office in Nanshan District, Shenzhen, on April 3 (COURTESY PHOTO)

Like the older generation of her family, entrepreneurs who came to Shenzhen in the early days of reform and opening up, Lin feels that Shenzhen is an ideal place to set up her own undertakings. "In this city, everyone values efficiency. Its fast business feedback is unparalleled. Plus, Shenzhen might be the only city in the country that meets all my standards for clothes," Lin explained. "Shenzhen is competitive in the garment industry, and the industrial chain here is already mature, as all the production links have been established over a period of more than 30 years." In the early stage of reform and opening up, Shenzhen was still a global original equipment manufacturing (OEM) base, meaning a high proportion of its factories produced products under contract to be sold by other brands. These OEM bases paved the road for producing high-end clothing later.

A work-life balance 

Lin pursues a more balanced life than her parents have and tries to find inspiration from her daily life. "My parents work around the clock. The only purpose in their lives is to see a growing balance in their bank account. And precisely because of that, they don't have time to spend the money. I am trying to avoid that pattern," she said.

As a ski enthusiast, she spotted a market for ski suits, so she decided her next move was to create outfits for specific sports. "I think this is a promising direction. Because today's young people attach importance to quality of life, and we hope that what we market is a young lifestyle, not just a bunch of products."

In Shenzhen, Lin's entrepreneurial philosophy resonates with many of her younger peers. Born in 1994, Chen Sitong, founder of aromatherapy brand Forone, is a scented candle lover and an owner of two dachshunds. She has found a way to incorporate these two passions into her business. Starting with candle cups filled with essential oil-scented wax, Chen designed dog-shaped candles with pet-friendly scents. "There are many pet owners in China who are willing to spend small fortunes on their fur babies. In this way, we want to achieve accurate brand positioning," she said.

Chen Sitong, founder of Forone, takes stock in her office in Longgang District, Shenzhen, Guangdong Province, on March 24 (KANG CAIQI)

Chen also runs another sports brand, Gemrun, which focuses on developing and manufacturing gear for American football. Chen said during the pandemic, American football and Ultimate frisbee were popular with young people who wanted to get out and sweat but couldn't travel far. However, since these two sports had just been introduced into China, most of the equipment was imported. High prices aside, the sizes were also not quite right.

"My partner and I saw this gap in the market, so we decided to set up our own brand of football and frisbee gear. In the beginning, we ran from factory to factory to choose fabrics. It was tiring, but in the end, the sales made it all worth it. Because of the enthusiasm of young people for these two sports, we quickly became the top three sellers in this field on e-commerce platforms," Chen told Beijing Review. "We have been worried our popularity would wane with post-pandemic life, but sales figures so far show that young people are even more engaged. Still, we are not going to let down our guards. We are preparing to develop from niche sports equipment to equipment for mainstream sports in the future."

Running two brands at the same time is no easy feat. "Fortunately, many of my friends are also entrepreneurs in Shenzhen. When I get into trouble, they will give me suggestions they draw from their own experiences, so that I can solve my problems effectively," Chen said. "And sometimes I can get ideas for my business just by chatting with friends over dinner. It's good to know that I am not alone, they keep me motivated all the time," she added.

(Print Edition Title: Time to Dream Bigger) 

Copyedited by G.P. Wilson 

Comments to kangcaiqi@cicgamericas.com  

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