(KPL) In the heart of Hunan Province, the once-overlooked mountain city of Huaihua is rapidly transforming into a “Global Luggage Hub,” leveraging its strategic location, infrastructure, and policy support to gain a foothold in the global supply chain.

During a visit by the ASEAN mainstream media tour group, the spotlight was on Hunan Outeng Luggage Manufacturing Co., Ltd., located in the Huaihua International Land Port Luggage Industry Park. Inside the facility, fully automated production lines were running at high efficiency, turning out approximately 2,000 trolley cases per day. “Ninety percent of our sales come from overseas markets,” said Liu Zicheng, the company’s general manager. In the first quarter of 2025, Outeng’s exports exceeded RMB 9 million, with around 30 containers shipped monthly via the Huaihua International Land Port to Belt and Road Initiative (BRI) markets.

Despite its mountainous terrain, Huaihua is far from isolated. Historically dubbed the “Gateway to Guizhou and Yunnan” and the “Throat of the Chu Area,” the city is now a central hub in China's dual-channel strategy—connecting the New Western Land-Sea Corridor and the International Maritime and Land Corridor to the Indian Ocean. It is also a critical junction along the China-Laos and China-Vietnam freight railway corridors, offering unmatched logistics advantages.

Recognizing these strengths, in May 2023, the Huaihua Municipal Party Committee and Government launched a bold initiative to develop the city into a global center for luggage and leather goods, despite having no prior industrial base. The Huaihua International Luggage and Leather Goods Industrial Park was soon established, drawing on the port’s advantages—streamlined customs, affordable logistics, a large labor pool, and ample industrial space.

The results have been swift and significant. Over 300 enterprises from across China, including from Shanghai, Guangdong, Zhejiang, Hebei, and Jiangxi, have expressed interest. More than 50 companies have already signed agreements to set up operations. The industry now boasts a fully integrated supply chain, encompassing everything from raw materials to finished products, including trolleys, casters, and linings.

Government incentives have played a key role. Exporters to RCEP (Regional Comprehensive Economic Partnership) countries benefit from logistics subsidies, duty deferrals, and export tax rebates, which ease the financial burden and attract investment.

Product innovation has also taken center stage. Outeng Luggage has developed features tailored to ASEAN consumer preferences, including explosion-proof zippers and visually appealing designs. Plans are underway to expand with 3–4 new production lines and strengthen R&D for market-specific products to boost brand recognition globally.

In 2024, Huaihua’s luggage sector reached RMB 3.012 billion in industrial output and RMB 500 million in exports. Over 150 projects, worth a cumulative RMB 10.8 billion, are driving this momentum. The city aims to grow the sector to 200 enterprises, including over 40 large-scale operations, and double its industrial output to over RMB 6 billion this year.

To sustain this growth, Huaihua is pivoting from volume to brand-led development. The city is investing in exhibition centers, design institutes, quality testing labs, and digital service platforms, all aimed at elevating the industry’s reach. It has also launched design and innovation competitions to accelerate the commercialization of creative output and foster homegrown brands with international appeal.

“Huaihua is moving fast to establish platforms with national and global influence,” said Yang Shijun, General Manager of Huaihua International Land Port Development Co., Ltd. “Our goal is to position Huaihua not just as a production center, but as a global player in the luggage and leather goods industry.”

From mountain city to manufacturing powerhouse, Huaihua’s rise as a global luggage hub is a story of strategic vision, infrastructure investment, and bold policy innovation—driving both regional development and global trade integration.

KPL