Jinjiang, a small city in Fujian province, is increasingly emerging as one of the rapidly developing cities in China. The city has already earned the status of a major commercial hub for private businesses like shoes and sportswear brands in the country. Now the city is vying for a bigger share in the international arena.
According to Liu Wenru, the mayor of the city, there are more than 126 nationally certified brands in Jinjiang, which is almost as big as Singapore in total area. Though most of the brands are well-known names in China, they are hardly known outside the country.
The mayor said the city plans to take its domestic enterprises to the international level through mergers, acquisitions and other expansion moves. And with the help of these actions, they are striving to build a bunch of globally recognized brands in the next few years.
He added that mergers and acquisitions are the best options for the companies to boost their global presence, market shares and profits and to achieve these targets the city will utilize its optimum proficiency in different industries.
The Jinjiang city mayor’s office will offer incentives and rewards to the businesses that engage in mergers and acquisitions with well-known global brands. Additionally, Jinjiang will provide preferential policies, including financial support, to encourage firms to establish more stores in overseas markets.
The mayor said that over 47 overseas sales agencies, in addition to more than 30,000 exclusive dealerships or direct sales shops in the mainland, have already been installed by the local companies from Jinjiang. He added that such coalitions will help Chinese companies to sell their products in overseas markets as well.
Sportswear brands, such as Anta, Xtep, 361 and the hygiene products maker Hengan Group are all based in Jinjiang. Thirty-eight companies from the city have already been enlisted in the international stock markets and few more companies are likely to follow suit this year.
The international expansion plans of Jinjiang’s companies will depend mainly on having direct contacts with enterprises rather than relying on overseas chambers of commerce. The mayor has already initiated the process of establishing a sister-city relationship with Brooklyn in New York.
Jinjiang firms have also made their presence felt at the recent London Olympics by promoting their products aggressively through sponsorships. Some of the Jinjiang companies were the official sponsors of the national Olympic committees of Belarus, Latvia, Maldives and six Chinese teams.
Jinjiang has come a long way since establishment of the first private enterprise in March 1979. Now, more than 16,000 companies operate from the city. With a population of more than 1 million people, the city has made use of the large number of houses vacated by people who have migrated to overseas for private enterprises. More than 2 million people from Jinjiang live in 58 countries and regions, mostly in the Southeast Asia.
Fibre2fashion News Desk - China