Companies breaking through pandemic-induced difficulties

It was April 2020, when the Covid-19 pandemic was raging worldwide. A flight from Hangzhou, loaded with thousands of insulated lunchbox products, landed in the United States.

The products were from Just Real, a suitcase company headquartered in Hangzhou, capital of east China’s Zhejiang Province. Unlike normal companies, its another identity might be more eye-catching: it is the official suitcase supplier of the Chinese Olympic delegation for the 2016 Rio Olympics.

Just Real, with its lucre in overseas markets accounting for 70% of its total profit, is the epitome of many companies in Yishang Town, a special fashion industry zone officially established by the Zhejiang Government in 2018. It is home to more than 700 fashion apparel companies from home and abroad, and is also a charming town that perfectly combines culture, art, international exchange, and creativity.

Products in Just Real 

(Photo credit to Huang Yitong)

In 2020, the Covid-19 pandemic swept the world, causing an unprecedented impact on the global supply chain. Companies in Yishang, did not keep themselves out of the affair. With the support of the town and the Hangzhou municipal government, they started their self-rescue journey amid numerous difficulties.

“When the pandemic started, we saw a sharp decline in overseas orders. Travel restrictions were issued across the globe, so there had been far less demand for suitcases,” Li Nuo, director of Just Real Hangzhou, couldn’t reveal her palpitations while recalling the difficult days.

Finally, after rounds of discussions, they decided to rescue themselves.

“We chose insulated lunchbox as our breakthrough point, because it best suited the needs of the global market. There had been an urgent need for “virus-proof” insulated lunchboxes because students in foreign countries couldn’t use their canteens, so they had to carry their meals,” said Li.

Insulated Lunchbox in Just Real, Hangzhou

 (Photo credit to Li Liuying)

Their innovative resolutions came into effect. The insulated lunchboxes gained popularity across Just Real’s overseas markets in Europe and the U.S., helping the company to go through the difficult days amid the global pandemic.

Just Real is not the only one in Yishang trying to survive. JAC, a Canadian original clothing brand that entered China in 2006, also had its solutions. The pandemic, which broke out in 2020, closed brick-and-mortar stores, while online sales were given high expectations. In those days, JAC created its own original "streamer + designer" live sales model, with both the streamer's introduction and the top designer's dressing advice, which attracted a large number of netizens' attention and brought them rich revenue. On March 8, 2020, when JAC launched its promotional activities, its sales surpassed 1.3 million yuan, with profit margins far exceeding those of sales offline.

Besides efforts from companies themselves, support from relevant departments were also indispensable to offer fuel in snowy weather. To ease the economic burden of the companies, the administrative department of Yishang waived the store rent in February of 2020, and reduced the rent in the following months. It also coordinated with other departments to provide financial support to the companies, helping them to acquire loans to get out of the financial difficulties.

Recovery of businesses from the aftermath of the Covid-19 pandemic has always been one of the priorities of China. During these two years, China’s central government has released numerous policies, from cutting taxes to providing temporal loans. On June 1st, 2022, the State Council of China rolled out a policy package, with a prominent part contributing to bolstering micro, small and medium-sized enterprises (MSMEs), further attaching importance to tax reduction policies, financing services, and business stabilization support.

Two years have passed since the pandemic broke out around the world, and Yishang has figured out a mature system of transformation for the sustainable development of the fashion zone. It actively encourages the companies to create digital platforms and develop the digital economy, as well as planning a matrix of year-round activities, and enhancing the brand influence by holding national and international large-scale exhibitions. On July 27, 2022, the 5th China’s International Children’s Fashion Week was held in Yishang, increasing the special zone’s influence and the appeal of the companies in the zone.

China’s International Children’s Fashion Week

 (Photo from the Internet)

“Since the outbreak of the pandemic, we have been helping the companies in our zone to precisely match their supply and demand with their counterparts outside, and we’ll continue to do it,” said Xue Yuan, vice director of Hangzhou Yishang Town Operation and Development Co., Ltd.

In China, the prevention and control of the pandemic are gradually turning into normalization, while life has been moving on. Just Real has become the official suitcase supplier of the Chinese delegation for the upcoming 2022 Hangzhou Asian Games. Its stories, as well as the stories of its hundreds of counterparts in Yishang, will be going on.

Reporter丨 Li Zishuo