Following the success of its technology-driven manufacturing system, Kutesmart's management, led by Zhang Yunlan, began considering new business opportunities. One potential avenue for diversification was to leverage their proprietary technology by entering the software business.

Kutesmart's Potential Diversification into Software

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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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, 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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