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.

Redcollar's Market: Low Barriers and Fierce Competition

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.

Kutesmart

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.

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At the end of the 20th century, Zhang Daili, then in his sixties, was the owner of the Redcollar firm in Shandong, China. Despite his hard work, his business, which mass-produced uniforms, was not generating significant profit due to intense competition. In an effort to improve profitability, in 2014 he introduced a major innovation at his firm, which involved a new product (made-to-measure suits) and a new technology that combined advanced software with computer-literate workers. The firm was later rebranded as Kutesmart and its management was passed to his daughter, Zhang Yunlan.

Zhang Daili

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

Redcollar

Zhang Yunlan is the daughter of Redcollar's founder, Zhang Daili. She took over the management of the firm, overseeing its transformation and rebranding into Kutesmart.

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