Core Insights - China remains unparalleled in the textile and apparel manufacturing industry, with no other country able to match its scale, supply chain, technical knowledge, and skilled labor [1] - Lycra® has become synonymous with elasticity and is a prominent element in various clothing types, from sportswear to high fashion [2] - Despite global trade tensions, Lycra's CCO expresses optimism about China's textile manufacturing market, emphasizing that no other region can truly replace China for large-scale production [2] Industry Trends - The past few months have seen Western brands delaying or reducing orders due to uncertainty regarding future tariff policies and their potential impact on consumer purchasing power [2] - The impact of tariffs is seen as indirect, affecting the expectations and confidence of the entire procurement and value chain rather than causing structural changes [2] - The spandex fiber market has experienced increased commercialization and competition over the past decade, with many brands launching similar products and competing on price [2] Company Strategy - Lycra® aims to provide differentiated solutions rather than engage in price competition, focusing on meeting customer and consumer needs [2] - The rise of brands like Nike and Lululemon developing in-house fabric capabilities is viewed as an opportunity for Lycra®, emphasizing the importance of collaboration between high-quality materials and skilled brands [2] - Lycra® has a historical connection with China, having been previously acquired by Shandong Ruyi Group, although the latter eventually lost control due to financial issues [3]