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Cone Denim: ‘Luxurious’ Way of Marketing

Cone Denim (Jiaxing) Limited is a large-scale denim manufacturing enterprise located in Jiaxing Economic Development Zone, Zhejiang Province, which was jointly contributed by International Textile Group from USA and Novel Group from Hong Kong, then turning into US sole proprietorship. The total investment amount of the company is 95 million USD and the registered capital is 41 million USD, with annual production capacity of 28 million yards of high-quality denim. Cone Denim adopts a complete set of technology and equipment of textile dyeing which is most advanced at present and is a textile enterprise with intensive technology, intensive capital and high market share.

Heritage of “Special DNA”

As for a company, if it can adhere to high lineage as imperial household, as well as experience baptism of centennial business environment, there must be essence born after sediment. This is the principle which is called “wash all crazy sand beginning to gold”. As a result, the company’s marketing base point is much higher than similar companies.

Cone Denim (Jiaxing) Limited is a “luxurious” company like this.

The original DNA of Cone Denim (Jiaxing) Limited is from an American textile brand called Cone Denim. This powerful brand, which was established in 1891 and has long-standing history, has gone through more than one thousand years with the internationally well-known clothing brand called Levi’s and is the largest supplier of Levi’s.

Other than inheriting powerful ‘gene’ of two groups, the ‘birth’ of Cone Denim (Jiaxing) Limited is an “unusual adventure” itself.

Fast forward to the eve before 2004...

After Europe and USA took restrictive measures to China’s textile in succession, while the Chinese government continues to strengthen the macro-control, ITG took its footstep of massive global expansion.

Wilbur Ross, the chairman of ITG, as well as the chairman and CEO who is managing private equity firm called WL Ross & Co with 4 billion USD fund, after much negotiation with Cao Guangbiao, CEO of Hong Kong Novel Group, who also has legendary history, they decided to establish the second largest global independent manufacturing enterprise of ITG in Jiaxing. Cone Denim (Jiaxing) Limited was originally 51% share held by ITG while 49% share held by Novel Group, and its first CEO is held by the Cao Qitong, the son of the chairman of Novel Group, Cao Guangbiao. This company produces top brand ‘Cone Denim’ in global denim market using the cottons from US as raw material, with annual production capacity of 28 million yards and the factory was put into production in the third season 0f 2007.

Investment in Jiaxing is a part of global massive expansion plan of ITG.

Cone Denim (Jiaxing) Limited, a company inheriting such “special DNA”, was born under everyone’s watching.

With such “luxurious” history, Cone Denim (Jiaxing) Limited has no need to worry about the marketing. Thanks to the close cooperation with Levi’s over more than one hundred years, more than 50 percent of Cone Denim’s products are assumed by Levi’s.

US ITG Group has brand influence of denim in European and American market, while Hong Kong Novel Group has strong support from its technical team and brand influence of denim in Asia-Pacific market. Based on such stable clients and favorable marketing base, Cone Denim (Jiaxing) Limited became complete export-oriented spinning enterprise, while the rest European and American marketing task is also born by ITG Group and Novel Group.

Step onto ‘Luxurious’ Way of Marketing

The so-called ‘Luxurious’ way, is about remaining connected with noble DNA of Cone Denim (Jiaxing) Limited, is about the high-end path of ‘top of the pyramid’ of Cone Denim (Jiaxing) Limited, is also about marketing network and long-term strategy of global overall arrangement by Cone Denim (Jiaxing) Limited. 。

The common people may think, since the inborn condition is already so excellent, with really big market share, plus stable and close partner, Cone Denim (Jiaxing) Limited should have nothing to worry about, then why it labor and toil with mind and body?

This might be the unique place of Cone Denim (Jiaxing) Limited, they want to declare the great strategy of global overall arrangement in the form of the declaration of independence, but Cone Denim (Jiaxing) Limited doesn’t depend on ‘parent body’ for its survival.

One day in 2008, before the attack of financial crises, Cone Denim (Jiaxing) Limited ‘settled down’ at home for only one year was starting indigenous marketing strategy.

“The Asia-Pacific market has enormous consumer group of denim, and Cone Denim (Jiaxing) Limited cannot rely on parent body for ‘oxygen supply’, while its target shall tightly lock in mainland and scan widely in Asia-Pacific market.” The leader of Cone Denim (Jiaxing) Limited communicated such amazing information to the common people at that time.。

At that time, how to do marketing and open domestic market became the ‘dream’ consistently thought by the whole elite team.

Surely, the first thing to do is to do product positioning aiming at consumer group in Asia-Pacific market. The related official of Cone Denim (Jiaxing) Limited said that they would like to make soya-bean mild as KFC for the Chinese people to consume.

As a result, Cone Denim (Jiaxing) Limited gathered the overseas technical personnel of Hong Kong Novel Group and American ITG Group and constituted a team of R&D and design, as well as developing a series of tracking survey aiming at the various demand of quality and style of denim by consumers in the Asia-Pacific region.

Gap shall be deemed as the ‘luxury’ series of denim clothes brand. Up to now, in the mainland China, Gap only has two direct-sale stores which are in Shanghai and Beijing, while the brand label of Gap is branded with “Cone Denim”.

But as early as 2008, Cone Denim (Jiaxing) Limited has signed strategic cooperation contract with a domestic leisure brand.

As everyone knows, the product of this famous brand is going the “friendly” path and seems has nothing to do with luxury. Then why this denim producing enterprise which is known as high point would like to become “ally” with such a leisure brand.

It is known that this famous brand has edged itself into the giant rank with annual sales revenue of about one hundred billion RMB and has become the success profile of Chinese SPA model.

In Chinese market, the annual sales volume of about 50 hundred billion RMB is a recognized ceiling which is hard to step over for a leisure clothes enterprise with a single brand. Giordano has lingered for about 3 years.

While haven’t reach this threshold, this famous brand has decided to use SPA model as the magic weapon of sustainably growing the company’s sales volume. In 2008, this famous brand officially introduced the first SPA type brand of native China and tried to accelerate the maturation of this new-born brand through butt joint with top-level resources in the industry. However, the so-called “top-level resources in the industry” definitely include high-quality denim clothes.

While this famous brand met Cone Denim, almost at the same time, both sides of the top management fit in easily while appreciating each other. The thing we see is the advantage of quantity of this brand. Of course, the high-end positioning of Cone Denim (Jiaxing) Limited has not been changed. We only provided denim to ‘high-end product’ of this brand and has nothing to do with other products.

At present, this famous brand is cooperating with Cone Denim by annual denim order of more than 1 million yards. Besides, we can also see the “figure” of “Cone Denim” within some domestic famous brands.

As for Cone Denim (Jiaxing) Limited, Marketing is an interesting thing. Due to the brand effect and quality guarantee, there will be many denim brands coming to initiatively discuss about the cooperation.

While aiming at the Asia-Pacific market, Cone Denim (Jiaxing) Limited has not forgotten the market proficiency of local market in Jiaxing.

It is known that among the current developed local market, Cone Denim (Jiaxing) Limited and a famous brand in Jiaxing City as well as two Japan-funded enterprises are having a cordial working relationship. According to such development tendency, Cone Denim (Jiaxing) Limited will continue its marketing channel based on the original foundation and will form alliance with 3 to 5 famous domestic brands.

Under such all-around marketing tactical efficacy, Cone Denim (Jiaxing) Limited become the best performed one among four subsidiaries which are established in Mexico, India, Turkey and China by American Cone Denim Head Office, with almost perfect annual top quality goods ratio and complaint rate.

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