Core Viewpoint - The traditional skill of "shearing sheep wool" has led to the emergence of a new industry in Lu Yi County, Henan, with an annual output value exceeding 10 billion yuan, establishing it as the "City of Makeup Brushes in China" [1][2] Industry Overview - The local economy has shifted from viewing sheep tail hair as waste to recognizing it as a valuable raw material for makeup brushes, leading to the establishment of a thriving industry [2] - Lu Yi County produces 150 million sets of various makeup brushes annually, accounting for over 90% of the national export volume and 95% of global animal hair used in makeup brushes [2] Company Development - In 2019, local entrepreneurs identified the need to pivot from traditional foreign trade to building their own brands, leading to the establishment of a makeup brush factory in Lu Yi [3] - The company initially struggled with market acceptance and product positioning, realizing the necessity for localization in product design and pricing strategies [4] Market Strategy - The company adopted a new sales strategy by entering the Pinduoduo platform, focusing on product differentiation and rapid new product launches to enhance market presence [5] - A combination product featuring 13 makeup brushes became a bestseller, achieving daily sales of 2,000 units and total sales exceeding 800,000 sets [6] Employment and Community Impact - The company has created numerous job opportunities, particularly for local mothers, allowing them to balance work and family responsibilities [7] - Collaboration with over 100 local farmers has enabled home-based production, providing stable income for those unable to work outside [8] Future Aspirations - The company aims to further develop its production capabilities and establish a benchmark brand representing the quality of Lu Yi [8]

Core Insights - The article discusses the significant impact of U.S. tariffs on global trade, particularly focusing on Guangdong's response as a major economic and foreign trade province in China [1] - It highlights the transformation of the Guangdong garment industry in the face of these tariffs, with companies exploring new markets and adjusting their strategies [1] Industry Overview - The U.S. has become a crucial trade partner for Guangdong, and the ongoing tariff situation is prompting unprecedented changes in the garment sector [1] - The article emphasizes the reliance of many U.S. companies on Chinese materials, which lack domestic alternatives, leading to concerns about the sustainability of their supply chains [2][3] Company Responses - Guangdong Mingrui Group, a leading wedding dress manufacturer, produces around 200,000 dresses annually, with over 95% of sales going overseas, primarily to the U.S. [2] - The company is facing pressure to lower prices due to tariff impacts but is focusing on the European market for future growth [2] - Other companies, like Guangzhou Dongfan Garment Factory, are also adapting by seeking new markets and developing domestic brands to mitigate the effects of U.S. tariffs [6] Market Dynamics - The article notes that nearly 90% of wedding dresses sold in the U.S. are produced in China, highlighting the potential economic turmoil if production shifts back to the U.S. [5] - Retailers in the U.S. are experiencing declining sales as consumers turn to second-hand options or rental services due to increased costs from tariffs [4] Strategic Shifts - Companies like Yida Group are transitioning from relying on foreign trade to focusing on domestic markets, emphasizing the need for agility in response to changing market conditions [7] - The shift involves adapting to different order models and enhancing product quality to meet domestic consumer demands [7] Brand Development - Mingrui Group has successfully launched its own wedding dress brand, AMELIE, which has gained a 5% market share in Europe, showcasing the potential for Chinese brands to establish themselves internationally [10] - Yida Group has also developed its own brand, leveraging its extensive supply chain and production capabilities to cater to domestic consumers [8][10]