Haining city, well-known for leather garment manufacturing, has taken a new direction in order to cope with international competition. According to the China Leather Industry Association (CLIA), exports of other leather goods, in particular leather-upholstered furniture, are now outstripping exports of leather garments.

In the past, Haining producers mainly manufactured low and medium-end leather garments, most of which were exported to Russia, however, with a drop in demand and the increasing problems with exporting to Russia, many companies have now shifted production towards leather upholstery, cases and bags, and small leather goods such as wallets that are exported to the USA and Europe.

Casen Co., Ltd, is a prime example of a company that is adapting to the changing environment. Ten years ago, Mr. Zhu Zhang Jin, owner of the company, produced leather garments mainly for the Russian market, he is now establishing, what is set to be, the largest leather-upholstered furniture export base in China. He is achieving this through amalgamating smaller manufacturing companies in the city.

Besides increasing the variety of leather products, Haining companies are also making great efforts to move into the high-end markets, Casen has invested 50 million Yuan ($6.17 million) in research and development of chrome free automobile leather which has already been approved by Volkswagen.