Ordos: Change from traditional cashmere clothing to spring and summer wear
The Ordos brand has over 3,000 individual stores across China, strategically positioned in prefecture-level cities in the south and county-level cities in the north. Due to the colder climate in northern regions, there is a strong consumer awareness and acceptance of cashmere products. The company's marketing goal is to achieve a 20% compound annual growth rate, covering both its own retail stores, leased storefronts, and counters within hypermarkets. Over the next 3 to 5 years, the company plans to continue investing in channel development, aiming to strengthen its presence at the market terminal level.
In 2008, the company consolidated its garment manufacturing subsidiaries, achieving economies of scale by expanding the production capacity of individual factories. It also reformed its domestic sales system, transitioning most direct sales outlets into agents and affiliated partners. This shift helped boost the motivation and enthusiasm of sales channels while significantly reducing inventory levels. The company controls a significant portion of cashmere resources—40% of domestic supplies and 30% of global cashmere. It has established acquisition points in key northern cashmere production areas. Cashmere garment production remained stable during the first half of the year. While the international market faced contraction, the domestic market showed strong growth. However, the cashmere business is constrained by raw material availability, with an annual output capped at around 16 to 18 million units. To overcome this limitation, the company decided to expand its clothing line beyond cashmere, entering spring and summer collections to break free from material constraints.
To elevate its brand image, Ordos employs internationally renowned designers, including Gilles Dufour, the former design director of CHANEL, one of France’s most prestigious luxury brands. Under Dufour’s leadership as artistic director, the brand launched the "Dufour" series, which aligns with the standards of top-tier international fashion houses. This enhancement in product design significantly boosted the reputation of Ordos’ clothing line. These strategic initiatives and product lines have helped the brand move beyond its traditional cashmere focus, promoting diversification and consistent branding across different product categories.
Despite challenges, the cashmere business remains a core pillar of the company, and it will not be abandoned or removed from the listed company structure. As the foundation of the brand, cashmere continues to play a crucial role in shaping Ordos' identity and long-term strategy.
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