The rise of the leather jewelry storage box industry in Dongguan is a microcosm of the transformation and upgrading of China’s manufacturing industry. This seemingly niche category has undergone a transformation from contract manufacturing to leading global high-end customization over the past 30 years.
In the early stage of the industry, it was because Hong Kong luggage enterprises set up the first batch of leather goods contract manufacturers in Houjie, Dongguan to reduce labor costs, mainly producing common goods such as wallets and belts. The manufacturer unexpectedly received a trial order for storage boxes from an American jeweler and embarked on the path of high-end contract manufacturing.
Therefore, a large amount of foreign capital poured in and the industrial chain gradually improved
Multiple international brands have made their layout. In 2003, LVMH established an Asia-Pacific purchasing center in Dongguan and required its contract manufacturers to pass the ISO 9001 certification. Times Leather Goods (Prada’s contract manufacturer) has introduced Italian cutting machines, increasing the leather utilization rate from 55% to 78%. The best opportunity for the industry to develop is the rise of cross-border e-commerce. Factories in Dongguan supply directly to consumers in Europe and America through Amazon and AliExpress, allowing merchants all over the world to rediscover the charm of this world factory
In 2020, the annual export volume of leather jewelry boxes in Dongguan reached 1.2 billion US dollars, and the proportion of the high-end market rose to 38%.
