Located in north central Zhejiang province, Datang town in Zhuji county, Jiaxing has been known for decades as one of the biggest production bases of socks around the world. The low labor cost and high output used to be considered strength of the local enterprises.

A few years ago, however, sock manufacturing companies in the town faced increasingly serious competition. Some of them closed down, but Zhonghao Knit Company found another path.

Cai Shanni, CEO and chief designer of the company, was a graduate of the China Academy of Art and believes in the value of original designs. She established a product line called "Caramella", highlighting innovative designs and high quality.

Cai closed her production factory last year and focused on sock designs and online business. With the help of big data technology, Cai continued to keep up with fashion trends in socks. She would put various types of socks online for sale and collect client feedback and sale demographics. Then she would select the most popular types for mass production.

Last year, the company launched a charity project called "A Box for Painting". They gave out free socks in poor areas and encouraged local children to paint on the packing boxes. Cai found that many children drew pandas on the boxes, which inspired her that the panda image may be a popular design factor.

After coming back to Zhuji, Cai designed a series of children's socks themed with pandas, which gained great popularity. As of the end of last month, the company has sold more than two million pairs of the series.

Like other innovative companies, Zhonghao has also met with the problem of imitation. The design team produces 600-800 designs every year and adjusts materials and manufacturing techniques, frequently setting barriers for copycats.

The design team of Zhuji Zhonghao Knit Company produces 600-800 designs every year. [Photo/zjol.com]

A charity project called "A Box for Painting" inspires Cai Shanni, CEO and chief designer of Zhonghao Knit Co, to design a series of panda themed kid socks. [Photo/zjol.com]