In the heart of south China’s Guangxi Zhuang Autonomous Region lies Lipu, a city you’ve probably never heard of but whose products hang in closets worldwide. Known as China’s “hanger capital,” Lipu produces over 4 billion hangers each year, supplying major retailers across the globe.
Despite facing global headwinds like trade tensions and shifting markets, Lipu has demonstrated remarkable resilience. How has this small city managed to thrive amid challenges that have rattled giants?
Aware of potential risks from tariff barriers and dependence on single markets, Lipu’s manufacturers began adjusting their strategies early on. Companies have reduced reliance on the U.S. market, expanded into new regions, and heavily invested in automation and innovation.
“Enterprises must always be prepared for risk,” says Mao Huilin, general manager of a leading manufacturing company in Lipu. “For manufacturing companies like ours, it’s crucial to keep pushing forward in automation and technological innovation. With our in-house R&D team, we continue to invest in processes, products, and patents. So the trade friction has had little impact on us.”
This forward-thinking approach has positioned Lipu at the forefront of the global hanger supply chain. “After more than 30 years in the industry, companies in Lipu are now leading globally,” remarks Mo Peng, another general manager in Lipu. “That’s why we’re confident and not afraid of challenges.”
Interestingly, instead of losing clients due to trade uncertainties, Lipu’s firms have strengthened their relationships. “Our major clients are actually more worried that we might shut down—that we might stop supplying them—because there’s no replacement,” Mo explains. “As long as we stay strong, the trade tensions have only reinforced our relationships.”
Lipu’s story is not just about hangers; it’s a testament to preparation, persistence, and adaptability. By embracing innovation and diversifying markets, this small city stands tall in the face of global challenges, setting an example for manufacturing hubs worldwide.
