Xingcheng produces one in every four swimsuits globally. Located in Huludao, Liaoning Province, Xingcheng is home to more than 4,000 businesses, including 1,300 manufacturers, with approximately 80,000 employees in the swimwear industry. The region produces an average of 170 million swimwear units annually, with a total industry output valued at 15 billion RMB. Xingcheng accounts for over 40% of China’s domestic market share and more than 25% of the global market share. Swimwear from Xingcheng is exported to over 140 countries and regions, cementing its status as the global swimwear capital. Historically known for the Ming Dynasty "Ningyuan Weicheng" fortress, Xingcheng has gained international recognition for its thriving swimwear industry, symbolizing the success of China’s private sector beyond the Shanhaiguan Pass.
Policy Guidance: From Fragmented Beginnings to Large-Scale Industry Development
Xingcheng’s swimwear industry began to emerge in the 1980s. During this period, coastal tourism boomed, attracting visitors from across China to Huludao for seaside activities. Vibrant swimsuits attracted the attention of Xingcheng residents. The first generation of swimwear entrepreneurs started by replicating designs brought by tourists, operating from family workshops, and distributing swimwear to other regions. The profitability of the industry led to the rapid expansion of swimwear workshops throughout the region.
Shu Tian, General Manager of Haocheng Garment Co., Ltd. and a "third-generation swimwear entrepreneur," recalled, "My grandmother made swimsuits at home using a sewing machine, selling them from a backpack and cart. By my parents' generation, the family had established a small factory and began OEM production for major industry players."
By the end of 2010, Xingcheng was home to 163 swimwear companies and 30 suppliers of auxiliary materials, with an annual output of nearly 100 million units and a total output value of approximately 3 billion RMB, forming a developing industrial cluster. In formulating Xingcheng's industrial strategy, the local government considered developing molybdenum mining or swimwear production, ultimately opting for swimwear due to its job-creating potential and support for sustainable growth.
Meanwhile, the Xingcheng Municipal Party Committee and Government cultivated a business-friendly environment characterized by "minimal interference and maximum responsiveness." "We can only continue to grow by focusing on serving the market within such a supportive environment," said an industry veteran.
Today, Xingcheng is the world’s largest swimwear supply chain hub, with a comprehensive industrial ecosystem and advanced design and development capabilities. As one of Liaoning's 22 key industrial clusters, Xingcheng's swimwear industry is a crucial contributor to the province's economy and is on track to become a national hub for advanced textile and apparel manufacturing.
Market Transformation: Collaborative Growth from Offline to Online
In 2011, the government and industry associations hosted the inaugural China International Swimwear Culture Festival in Xingcheng, establishing a key platform to promote Xingcheng’s swimwear industry across China. The event combined brand showcases, trend presentations, and industry seminars, laying the foundation for increasing the brand recognition of Xingcheng swimwear.
At the same time, the rise of e-commerce and cross-border platforms created new market opportunities for swimwear companies. Xu Liu, founder of Shehang Garment Co., Ltd., has capitalized on this trend. In 2009, at the age of 20, he launched a swimwear business, expanding from a small workshop to a modern enterprise with an annual production and sales volume of 3 million units. He acknowledged that his company’s success was driven by government support and the advantages of e-commerce development.
Xiaolei Wang, founder of Lanyi Swimwear Factory, established in 2017, leveraged independent design as a key competitive advantage. He stated, "Although OEM profit margins have decreased compared to previous years, the company remains confident as long as the industry remains stable." Today, Lanyi Swimwear focuses primarily on foreign trade orders, with its unique, independently designed products gaining market traction.
Data indicates that 80% of swimwear sold through Chinese e-commerce platforms is sourced from Xingcheng. Additionally, 30,000 online stores globally sell these products, with 17 overseas warehouses already operational and another 33 scheduled for completion by 2025. Industry experts highlight that Xingcheng’s "small order, fast response" model is perfectly aligned with e-commerce demands, driving rapid growth in the swimwear industry.
Driving Innovation: Accelerating the Formation of a Modern Industrial System
Key enterprises in Xingcheng are spearheading the modernization and transformation of the swimwear industry. Of the 1,300 swimwear manufacturers, 15 are classified as large-scale enterprises, while 300 report annual production and sales exceeding 5 million RMB, making a significant contribution to the industry's growth.
Founded in 1985, Liaoning Yinghua Textile and Apparel Group Co., Ltd. has strengthened its market position through branding, product innovation, and rigorous quality control. Chairman Wang highlights that addressing diverse market demands and ensuring stringent quality control are crucial to a company’s long-term success.
Fuelled by innovation, Starway Group invested 520 million RMB in 2018 to establish a state-of-the-art swimwear industrial park. Leveraging the industrial Internet platform 'Zhongyonglian,' the group has partnered with 132 swimwear companies and adopted AI-assisted design and 3D fitting tools to enhance efficiency and precision. Meanwhile, small and medium-sized enterprises (SMEs) are actively undergoing transformation and upgrading processes. Liu Xu’s digital workshop has increased automation, with the printing workshop now operational and the cup and lining workshops nearing completion. Wang Xiaolei plans to expand the production facility, set up additional overseas warehouses, and develop new swimwear lines."
At this year’s forum hosted by the Liaoning Provincial Committee of the Chinese People’s Political Consultative Conference, themed 'Accelerating the Development of a High-Quality, Distinctive Consumer Goods Industry,' Guoqiang Zhen, Chairman of the Huludao Municipal Committee, proposed creating a complete industrial chain—from basic chemical production to finished goods. The proposal includes expanding the supply chain, establishing a printing and dyeing industrial park, and attracting weaving enterprises. Additionally, the plan aims to diversify the product portfolio by expanding into segments such as yoga and cycling apparel, promoting a range of premium and diverse sportswear. The proposal also emphasizes enhancing the value chain by guiding enterprises toward R&D, design, and brand development, thus strengthening their global market influence.
Conclusion
Xingcheng, a small city in northeastern China, has evolved from a historically lesser-known town into the world’s swimwear capital, driven by government policies, market innovation, and entrepreneurial foresight. Looking ahead, Xingcheng is strategically positioned to secure an increasingly significant role in the global swimwear market through advancements in smart manufacturing and industrial modernization.
