LEATHER has long been the economic backbone of the city of Haining, and like the hides that go into local production, the industry has been tough and resilient amid a global slowdown.

In the Haining Leather Market every day, an estimated 150,000 consumers pore over the leather coats, bags, shoes and other merchandise on sale in some 2,000 shops.

Merchants say it's low prices and the proximity of 2,000 local leather-makers that help keep demand strong.

"During the economic slowdown, everyone wants cheap but good products," said Ren Youfa, board chairman of the Haining China Leather Market Co.

Ren, 57, a retired soldier with only elementary school education, has spent the last 18 years helping the market grow and diversify.

It's not only Chinese from the Yangtze Delta region who appreciate good quality at a low price. The city's exports of leather goods rose 19 percent last year to US$4 billion.

"Some other cities have tried to build similar leather markets, but all failed because they didn't have the asset of such a large group of leather-makers at hand," Ren said.

That, perhaps, and a lot of history.

Haining is the cradle of China's leather production. In 1926, the story goes, three Chinese students returned to their hometown from study in Germany, bringing back with them what is believed to have been the first leather machine in China.

In 1993, when the number of leather artisans in the city rose to about 500, the city government decided to build a market for them to operate.

At the time, Ren had just become an official with the city's industrial and commercial bureau after serving in the military for 16 years. His first task was to persuade the leather factory owners to sell their products in the market.

The market, located near the Haining Railway Station, started off with brisk business. But that quickly tapered off, and leather-makers began abandoning the site. "Local people looked on it with cold indifference," Ren recalled.

Undaunted, Ren invited a local journalist for an interview and turned out a story about the leather market. That seemed to help. Slowly, buyers from neighboring cities began showing up at the market, and its reputation spread.

Styling allure

Today's Haining leather products are made of sheepskin, cowhide as well as pigskins. The city's leather makers buy the hides from other provinces and also import from abroad. Nine hides processing factories in the city do the tanning and curing for the leather makers who then make them into leather products.

Inside today's sprawling market, the smell of leather is advertisement itself for the array of merchandise on display. The pathways inside the market are named after China's provinces and cities. The main thoroughfare is called Shanghai Road, which is probably apropos since so many customers come from that metropolis 125 kilometers away.

Some of the allure is in the styling. Many of the leather bags and coats look similar to those of famous European brands.

"Local factory bosses fly to Italy and France every year to study foreign designs," said Ying Wenjun, boss of the Feifan Fashion Clothing Co Ltd, who has operated a store in the market since 1995.

But by saying "study," he actually meant "copy." In the beginning, foreign designs were simply duplicated in the city's leather workshops. As the factories prospered, local leather-makers began studying designs and workmanship more carefully, Ying said.

Continued from C5



"One of my core processes is called 'vegetable tanning,' which I learned from two leather jackets bought in Italy in 2005," he said.

Lack of original designs has long been a problem for leather-makers in the city.

At one time, the whole market featured only 15 styles of men's jackets, all copied from the West, Ying said.

"Design is the soul of products, and products without souls can't have high added values," said Ren.

To instill some soul into the local industry, Ren has built a designer center near the leather market, where freelance designers can sell their ideas to local workshops.

Young Designers

The center comprises 28 wooden houses in red and blue roofs along a river near the market. Young designers exhibit and sell their design drafts in the houses. Local leather-makers go to the houses to pick out designs they want to produce.

One of the more successful designers is Wu Xuanqiang, who came to Haining in 2008 with only 300 yuan (US$47.62) in his pocket after graduating from a design school. Today he owns his own studio.

"At the beginning, I had to give away some of my designs free to local leather factories," Wu said. "I remember selling my first design for only 200 yuan."

That price has jumped 10-fold since then. Wu said he turns out more than 10 new designs a month.

Last year, 26 young designers from Haining were sent to France to receive training from the fashion houses of Chanel and Dior designers. The course lasted seven days and cost 40,000 yuan per person.

"The factory bosses were willing to foot the bill," Ren said.

A popular new design can raise the profit margin of a leather jacket to 30 percent from the usual 5 to 10 percent, Ying said.

In China, leather jackets, coats and hats are a way for many people to show off their wealth and success.

But the leather industry also has its fierce detractors.

Animal-rights activists decry killing animals to make fashion statements, and environmental protection lobbyists say the leather industry pollutes streams and rivers.

Both annoy Ren.

"Many Western countries resist buying anything that comes from animals, and that has hindered the development of the export market," Ren complained.

Still, Ren and his associates say they are aware of environmental concerns.

"The city government has built a sewage treatment plant so that all the wastewater from the leather plants can be recycled," said Jin Jiansheng, deputy director of the Haining Economy and Trade Bureau.

"Haining's leather production may still have some polluting effects on the environment, but it's far less than ------that created by paper and chemical plants," Ren said.

As to the complaints of animal rights groups, Ren is dismissive.

"It is nonsense," he said. "People kill animals to eat their meat. We just use the leftovers to make into clothes."

Global vision

The Haining Leather Market Co has opened four branches in Jiangsu, Sichuan, Henan and Liaoning provinces. The leather-makers followed Ren and opened chain stores there.

However, Ren has his eyes set on the international market.

"We want to open a leather market in Russia, for example, but we are short of knowledge about foreign laws and cultures," Ren said.

Ren said his hopes for the future rest on the sons and daughters of the Haining leather-makers, many of whom are studying abroad.

"I believe most of them will come back to their hometown after graduation and create a glorious future for the city's leather industry," Ren said.---

Haining, located 125 kilometers southwest of Shanghai, is famous as a leather-goods capital. The Haining Leather Market is the largest of its kind in China.

The city's industrial base has been diversifying into new sectors, including manufacture of solar panel cells and plastics.

As a tourist attraction, Haining is famous for the spectacular tidal bore on the Qiantang River.

Kung Fu novelist Louis Cha, better known by his pen name Jin Yong, was born here.

668

square kilometers

660,300

registered population

4 districts and 8 towns

Ren Youfa, chairman of the Haining China Leather Market Co

Shanghai Daily: What have you achieved during the past decade?

Ren Youfa: I could talk about that for an hour. To pick the most important thing, I have gathered a lot of talents together in my company, from deputy directors to young staffers. Now, the only thing I need to do is asking about results because I can leave all the intermediate affairs to the senior officials. But 10 years ago, I had to take care of everything myself.

SD: What's the biggest mistake most businesses in your area make in looking at the future?

Ren: In 2004, the city government decided to build a new market because the old one could not serve the increasing number of stores. But none of the shop owners wanted to move there because their businesses were flourishing in the old market. That was shortsighted. I recruited nine university graduates to listen to their grievances and excuses, and then I finally persuaded them to move.

SD: What would you most like to see in China's development planning?

Ren: A bigger export tax refund on leather products would be welcomed.

SD: What's your biggest concern?

Ren: There are always problems and concerns, but I believe all of them can be resolved in the end. It is my job to resolve problems every day, so I am worried about nothing.