Initiatives with strong Chinese partners
Strengthen initiatives with strong local partners
Ahead of other Japanese companies, we established a foothold in China in 1972. Since then, our first strategic priority has always been relationship-building with leading local partners and we have been able to foster trusts with many local companies in areas ranging from textile material procurement, fabrics, apparel products to retailing.
The clothing retail market in China has emerged as the second largest market in the world, overtaking Japan. Although the Chinese economy is increasingly shrouded in uncertainty at the moment as it has entered a correction phase after a period of sustained growth, the clothing retail sector remains a priority market for us. Looking ahead, the Textile Company intend to expand operations in mid-stream and downstream sectors of the Chinese textile industry. It is highly importantly to work with partners with expertise within the market, especially in the retail sector.
In 2009, we formed a capital and business tie-up with one of China's foremost conglomerates, Shanshan Group Co.,Ltd., which began as a textile company. Since then, we have been expanding collaborative initiatives with a focus on developing brand businesses in China.
In 2011, in order to obtain a powerful partner who would expand our business in China and strengthen our global operations in the upstream and midstream areas, we acquired shares in one of China's major textile corporate groups, the Shandong Ruyi Science & Technology Group (Ruyi).
Ruyi was founded as a state-owned worsted woolen textile factory, and has achieved consistent growth by expanding its value chain from the original upstream area to the midstream and downstream area.
Through extensive cooperation under this capital alliance, we will develop global materials business by making use of Ruyi's production resources and will step up our efforts to bolster sales in the Chinese domestic market.