Shenhu, a little-known small town in Jinjiang, Fujian province, produces more than 20% of the world’s underwear. It has around 500 underwear producing companies and supporting factories that generate an annual output value exceeding CNY50 billion. More than 10 million pieces of underwear are shipped to global markets daily, according to the local authorities. “We used to be a fishing town, relying on the sea for livelihood. After the reform and opening-up, overseas Chinese relatives brought back foreign lingerie, which opened the eyes of Shenhu residents to new business opportunities. This led to a shift from a single maritime-based economy to a more diversified production and lifestyle,” said Yang Huisu, Executive Vice President of the Jinjiang Shenhu Chamber of Commerce.
Opened in 1989, Jinjiang Jiali Costume and Weaving Co produces underwear, socks and yoga wear such as leggings and sports bras for adults and children. Its annual revenue is about USD40 million. Cai Xinling, General Manager of the company, said they handle the entire manufacturing process in-house, from fabric weaving, dyeing and printing, to producing elastic bands, main fabrics and auxiliary materials. About 30% of its orders come from the United States. Recent ones involved Germany, the United Kingdom and Canada as well.
Male underwear sells at USD0.8 to USD1 each for U.S. customers, while medium and high-end ones cost about USD1.8 to USD2.5, according to Cai. “This year, when U.S. tariffs hit, both the Shenhu township and Jinjiang city governments provided crucial support. They organized large domestic companies like Anta and Xtep to visit export-oriented manufacturers like us to create opportunities in business cooperation in doing domestic trade,” Cai said. “The government also mediated with banks to secure favorable loan terms for affected businesses.” The company now focuses on developing functional fabrics, such as antibacterial and temperature-regulating ones, and innovating in products based on more tailored demands. “For example, the underwear we wear at the office and while exercising is different in fabric and function. For sports, we need moisture-wicking and antibacterial properties, whereas for office wear, cotton remains the go-to choice. It’s all about superior comfort,” she said. Although the company has shifted some of its business to the domestic market due to global uncertainties, Cai believes underwear remains an essential consumption product. “With 90% of Shenhu’s capacity traditionally export-oriented, we’re now targeting the domestic market through government-led exhibitions and partnerships with local brands.”
The transformation reflects Shenhu’s adaptive spirit: maintaining its supply chain superpower while strategically rebalancing markets. In 2004, Shenhu town was awarded the title of an “Underwear Hub of China”. The complete industrial chain enables Shenhu’s underwear manufacturers to source all materials for a single garment within just 30 minutes. “This fully integrated supply chain has not only boosted production efficiency but also ensured more stable output for the local industry,” Yang from the Chamber said. Nian Xiaoxin, General Manager of the Fujian Jinjiang Shenhu Shengda Clothing Factory forecasts a more than 50% growth in production and sales this year. “A notable market shift has seen major retailers and bulk purchasers increasingly bypass Hong Kong and Shanghai trading intermediaries to engage directly with manufacturers like us,” he said. The factory also received orders from new customers in the UK, Italy, Japan and South Korea, the China Daily reports.
