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Business / Companies

Zhejiang Gemsy stitching up market share in Africa

By Wang Chao (China Daily) Updated: 2014-01-21 09:36
Ruan now aims to set up a massive national trade zone in one of his major African markets. The company will offer equipment and teachers to train thousands of workers and then develop a garment industry in the country. Algeria, Ghana, Nigeria and Rwanda all have shown interest in the idea, he said.

Making sewing machines requires highly specialized equipment and skilled workers, Ruan said, so there are no plans to bring an entire production line to Africa in the near future. Instead, the focus will be on parts factories.

After 20 years in Africa, Ruan said, he often feels he is back in the China of 30 years ago, with low-cost labor, abundant resources and people eager to change.

It also reminds him of his early days. In the early 1990s, the village he came from had many small factories that supplied parts for sewing machines in Shanghai. He borrowed 2,000 yuan ($330) to set up a small workshop with five other people, using secondhand equipment.

Even at that time, Ruan's small business couldn't compete with the hundreds of sewing machine companies in China, so he decided to head overseas.

After starting his business and first going to the Canton Fair, he said, he spoke no English and couldn't even afford the 50 yuan admission fee for the expo. So he stopped foreigners outside the gates and handed them business cards.

He eventually received his first overseas order: 50 sewing machines at a total price of $25,000.

Even if Ruan feels that contemporary Africa is like a rerun of the China of years ago, he sees things changing.

"I think the world will see a major economic takeoff in this continent in three years. I'm lucky to be a witness to this process."

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