Kutesmart's manufacturing process relies on a proprietary software system that translates customer measurement data into operational commands for automated cutting equipment. The entire production workflow is managed across a network of 480 distinct workstations, enabling a distributed and technology-driven approach to custom apparel.

Kutesmart's Production Model

Kutesmart marketed its products under various brand names. Notably, it repurposed 'Redcollar,' the firm's original name, as a label for its custom-made suits.

Kutesmart's Branding Strategy

Kutesmart is the rebranded identity of the manufacturing firm previously known as Redcollar, now under the management of Zhang Yunlan, the founder's daughter. This new branding coincides with a major shift in its production strategy, focusing on technological automation to produce affordable customized clothing.

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Redcollar, a firm owned by Zhang Daili and located in China's Shandong province, specialized in the mass production of uniforms. At the end of the 20th century, the company struggled with low profitability due to intense market competition.

Redcollar

To cite the ebook, use The CORE Econ Team 2023 The Economy 2.0: Microeconomics Open access e-text https://core-econ.org/the-economy/.

To cite a unit, use The CORE Econ Team 2023 The Economy 2.0: Microeconomics Open access e-text https://core-econ.org/the-economy/ Unit [unit number] (url).

CORE Econ - The Economy 2.0: Microeconomics

The market for mass-produced uniforms that Redcollar operated in had very low barriers to entry. A new business could be started with just a few sewing machines, some other equipment, and enough money to hire relatively unskilled labor. This ease of entry resulted in fierce competition among many firms, which in turn drove down prices and made profits exceptionally low.

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