Ruentex aims to become 'Samsung' in Taiwan's textile industry

Taipei, July 19, 2004 (CENS)--To deal with possible change after the abolishment of global textile quota in 2005, Ruentex Ind., Ltd., one of Taiwan's leading textile manufacturers, is going to make a big change itself too. The company has decided to follow the corporate strategy of Samsung, S. Korea's successful enterprise, to adopt two-pronged manufacturing measures by turning out products on an OEM basis and for own brand as well.

Hans Hsu, Ruentex's president, said his company will set up its global operation headquarters in Taiwan in the near future to reinforce its strength in the field. It has so far successfully integrated some 25 textile manufacturing companies to jointly build up a supply logistics network to offer one-stop shopping service to its clients. With such an efficient operational system, Ruentex is aggressively marching toward the brand contract market while also playing an active role as agent of many internationally renowned brands.

Having been the agent of Nautica for years, Ruentex has recently been authorized as the representative of two French brands--Daniel Cremieux and Kookai, which are focused on the market in both Taiwan and mainland China. Daniel Cremieux is slated to debut in Shanghai and Beijing, each having four sales outlets, in September, and such sales outlets will be expanded to 35 within three years.

As for Kookai, Ruentex has already established three sales channels for the brand in Taiwan, and the channels will be increased to nine by the end of this year. It is estimated that each of the two brands will bring in revenue of NT$200 million (US$5.88 million at US$1 = NT$34) for the company in 2005.

Hsu boasted that Ruentex is now Taiwan's largest manufacturer of gingham cloths. Taking the advantages of strong R & D capability and advanced manufacturing technology, Ruentex has helped up- and down-stream textile makers set up an integrated supply system that can offer one-stop service to foreign buyers.

With its one-stop service system, Ruentex has recently landed OEM orders from such world brands as Red Plus, Escada, Cutter & Buck, Diesel, and Benetton. And the system enables Ruentex to offer its clients a complete supply service from design, material purchase, to product distribution and financial trading. This is believed the company's most powerful weapon in the world arena after the repeal of global textile quota.


Hsu added that the establishment of own brand is a difficult way to go, but it's a way that the company must go. He disclosed that Ruentex is planning to market its own brand products next year, which might help double the firm's sales revenue from brand products and help the firm challenge the annual revenue goal of NT$10 billion (US$294.12 million).