Wenzhou

Industry Structure

Wenzhou has a strong manufacturing sector, but the relative share of the service sector is increasing at faster pace in recent years.

Wenzhou is a leading light industrial production base. In 2002, light industries accounted for 61.4% of the gross industrial output. This is much higher than the average for Zhejiang (at 55%) and Guangdong (at 50%).

Major industrial products include: footwear (estimated to account for 20% of China's market), clothing (10%), metal cigarette lighter (90%), spectacle frame (80%), razor (60%), locks (65%), plastics products (56%) and packaging printing (20%). Pens are also an important item. It was estimated that Wenzhou also accounted for 30% of China's market of mechanical pencil and ball pen.

The city has been titled as the "capital of China's lock production", the "capital of footwear production", the "capital of electrical appliance", the "production base of metal lighter" and the "production base of razor".

The quality and image of Wenzhou products have improved significantly in the past decade, and some of their products have become national brands. For example, in footwear there is Kangnai, Dongyi and Jierda, in garment, there are Baoxiniao, Judger, Charmant, Fapai and Rose Garment. In pen, there are Aihao, Huanqiu and Wentai.

One characteristic of Wenzhou's manufacturing sector is the high degree of division of labour or specialisation in different production stages and components. Therefore, the supportive industries are well developed. Take the case of footwear manufacturing, there are suppliers of all kinds of raw skins, components and materials, and there are more than 10 different trade associations relating to the footwear production.

Although most of the business entities are privately owned companies, they are taking the initiation to organise themselves through forming various trade associations representing the interest of each industry and pushing ahead the development of the particular industry.