China’s umbrella sector is undergoing a significant transformation, shifting from producing basic, affordable rain protection to creating premium, customized products that blend innovative materials, smart manufacturing, and culturally-inspired designs. This evolution signifies the industry’s steady climb up the global value chain.

This shift is particularly evident in Yiwu, east China’s Zhejiang province, home to one of the world’s largest wholesale markets for small commodities. Local umbrella manufacturers are moving away from competing solely on low prices and instead focusing on brand building, innovation, and expanding their global reach.

Zhang Jiying, owner of a shop in the China Yiwu International Trade City, has witnessed this transformation firsthand since starting her business over two decades ago. Initially, her stall was barely one meter wide, selling generic, unbranded umbrellas with minimal profit margins.

“Back then, competition was purely about price,” Zhang recalled. “If you priced an umbrella at 10 yuan ($1.47), someone else would undercut you at 9 yuan. Ultimately, no one truly profited.”

As consumer demand evolved, buyers began prioritizing not just function, but also factors like fabric quality, materials, color, and design. Zhang recognized that relying exclusively on Original Equipment Manufacturer (OEM) wholesale production was no longer viable. “It was time for a change,” she stated. “We needed to establish our own brand.”

In 2003, Zhang founded Zhejiang Xingbao Umbrella Co., Ltd. (RST Umbrella) and began developing proprietary products. By 2010, she had registered the “Real Star” trademark globally in more than 100 countries and regions.

“Today, design, quality, and service are paramount,” she emphasized.

Her showroom reflects this new approach. One newly launched umbrella designed for Middle Eastern markets features a built-in misting fan system that sprays a cooling water vapor at the touch of a button. An initial shipment of 3,000 units quickly led to repeat orders.

Another product, an ultra-light carbon-fiber folding umbrella, weighs less than a typical smartphone and features a UV-blocking black-coated canopy.

The company now exports around 5 million umbrellas annually, while some high-end customized umbrellas sell for as much as 2,000 yuan ($294) in European markets.

Zhang’s journey mirrors the broader upgrade occurring across Yiwu’s umbrella industry. Today, more than half of the umbrella merchants in China’s Yiwu International Trade City launch new products monthly. Traditional wholesale booths are increasingly being upgraded into branded experience stores and creative cultural display spaces. The outdated model of competing through low-quality, low-margin price wars is fading, replaced by a healthier environment focused on innovation and differentiation.

In the Shangyu district of Shaoxing, north of Yiwu, another major hub for umbrella manufacturing, technological upgrading is reshaping production lines.

Inside the workshop of Zhejiang Youyi Fino Umbrella Industry Co., Ltd., automated production equipment runs at high speed as umbrella frames are molded, canopies sewn, and final assembly completed in a seamless process.

“These automated systems were independently developed by our company, and each machine costs nearly 10 million yuan ($1.47 million) on average,” said company chairman Lyu Miaofen.

The heavy investment has paid off. Since introducing automation equipment in 2021, the company’s efficiency increased by more than 60 percent in the very first year. Today, the company reinvests around 20 percent of its profits annually into technological upgrading.

In 2025, its sales exceeded 400 million yuan ($5.88 billion) , while its product portfolio expanded beyond umbrellas into outdoor camping equipment.

In the Shangyu district, many companies are pursuing similar paths of intelligent manufacturing and industrial upgrading. In 2025, the district’s umbrella industry surpassed 15 billion yuan ($2.21 billion) in total industrial output, up nearly 8 percent year on year.

Chinese umbrella manufacturers are also refining their strategies for international expansion. “China is opening up to the world, and the world is eager to learn more about China,” Zhang said. “An umbrella is not just a daily necessity; it can also serve as a medium for cultural exchange.”

In recent years, she has incorporated more Chinese cultural elements into her designs, drawing inspiration from Jiangnan (the region located in the coastal area south of the Yangtze River) aesthetics, Dunhuang art, and other traditional motifs. The products have been well received overseas.

In September 2023, an initiative was launched in Yiwu to encourage local small commodity brands to expand overseas. Through overseas wholesale markets, overseas warehouses, showrooms, online platforms, and international exhibitions, it aims to build a global branding system for Yiwu products.

In 2025, “Yiwu Selection,” a collection-store model showcasing Yiwu brands overseas, began opening stores across five continents, with locations already established in 12 countries.

The results materialized swiftly. Following a trip to South Korea as part of the initiative in 2025, Zhang hosted South Korean buyers at her company shortly after returning. They placed an order worth 1 million yuan($0.15 million) for sun-and-rain umbrellas. Shangyu-based manufacturers also reported strong results after participating in the China Import and Export Fair (Canton Fair).

“This year, we focused on stabilizing our traditional European and American markets while expanding into emerging markets,” a business representative from the district said. “We targeted Africa and South America in particular, adjusting products according to regional demand.”

In South America, long coastlines and strong demand for vacation products have created new growth opportunities for umbrella companies. This year alone, Shangyu-based Zhejiang Hengyang Umbrella Co., Ltd. achieved sales of 30 million yuan($4.42 million).

Iger Enjoy in Shaoxing launched a cost-effective outdoor umbrella series tailored to local demand in African markets, securing on-site orders worth 2 million yuan($0.29 million) at the Canton Fair while also attracting several potential clients.

Looking ahead, Chinese umbrella makers will continue strengthening research and development, infuse more cultural elements in their products, and optimizing their global market strategies, thus helping more Chinese-designed umbrellas reach consumers around the world.

By Dou Hanyang

Source: People’s Daily