Holding a majority share of the global high-performance backpack market, Dong In Entech manufactures backpacks for Arc’teryx, Black Diamond, and Gregory.
Could you introduce Dong In Entech?
We currently operate 11 manufacturing subsidiaries in the Philippines, one in Vietnam, and a family gear sales corporation in the United States. What you're seeing now is our central warehouse. This facility consolidates all raw materials in one place, where they are processed using a fully automated cutting system. Once cut, the materials are distributed to the respective production lines, ensuring that every line has the components ready for assembly.
We have a facility called Almatech in Philippines. We manufacture aluminum frames used in outdoor furniture, tents, and the outer frame structures of backpacks. Our capabilities include pole production, automatic bending, and a wide range of manual processing by skilled workers. For the outer frame of a backpack we produce for renowned outdoor brands. We handle all aspects of aluminum processing internally, including laser engraving, powder coating, anodizing, and more. The anodizing process, conducted in our Philippine facilities, involves twelve liquid baths before the product reaches its final form. Once inserts are applied, we carry out a 100% inspection.
We also manufacture our own webbing for backpacks, starting from raw materials and continuing through the dyeing process. This results in a semi-finished product that meets our high-quality standards. One of our facilities specializes in waterproof backpacks. These products are constructed without any sewing. Instead, we apply high-frequency voltage to the fabric, creating fully sealed, stitch-free designs. Each of our subsidiaries is equipped with a sample room where we collaborate with clients from the earliest development phases, allowing for close communication throughout the product lifecycle.
Each production plant employs between 600 to 1,200 workers. DONG IN employs a proprietary production methodology optimized for high-mix, low-volume manufacturing, which we call the “Cell System.” This unique approach enables us to produce over 7,000 SKUs annually, positioning DONG IN as one of the most distinctive manufacturers in the high-end outdoor gear industry.
Our company motto is “Passion for the Greater.” The CEO places great emphasis on the passion we bring to our work and our partnerships with clients. In this image of the table of contents, you can see a photo taken during one of our brand development field tests. This was captured at 7,000 meters in the Himalayas, where we tested trekking poles and backpacks under extreme conditions. Imagine what the user is experiencing, oxygen deprivation, dehydration, exhaustion, and subzero temperatures. In such environments, even small improvements to outdoor gear can significantly increase a user’s survival rate. Our philosophy is to focus not only on visible product enhancements but also on the invisible, performance-driven factors that truly matter in the field. This is where we excel.
To elaborate on our company’s origins: the CEO is a former engineer from Hyundai Heavy Industries, where he worked for ten years designing engine rooms for container vessels. Dong In Entech was established in 1992. Our core business lies in the production of high-end outdoor gear. As of 2024, we employ approximately 131 staff in Korea, around 8,500 in the Philippines, and 1,000 in Vietnam, bringing our global headcount to roughly 10,000 employees. Our headquarters is located in Gimpo, about 40 minutes from our current Seoul office, which was opened three years ago. Dong In Entech serves as the parent company.
Initially, we did not start with sewing. Our business began with manufacturing aluminum frames. The CEO’s connection with a client in the Philippines led to our entry into that market, where we later expanded into backpack frame production and eventually into full-scale sewing operations. Our first major client was Kelty, a top-five global outdoor brand. In our early growth phase, Kelty was instrumental in propelling the company forward. Kelty commissioned us to develop a new frame carrier, an outdoor baby carrier, which became a massive market success.
Given that our collaboration with Kelty played a pivotal role in shaping DONG IN’s sales, development, and production strategy, allow me to share the story in greater detail. In the beginning, we started visiting potential clients, beginning with the customer, Kelty. At that time, the most popular trekking packs, from the 1950s through the 1980s, were frame backpacks, and Kelty was a pioneer in that segment. While manufacturing for Kelty, we learned the specific needs of high-performance brands. Initially, outdoor brands including
Kelty refused to meet with us and rejected our appointment requests. But after persistently approaching Kelty five or six times, they finally sat down with us. Their last question in that meeting was, “What can you do?” That was the turning point. They began sharing their challenges, requests from demanding customers, including Mount Everest and rock climbers. We started proposing ideas to solve these problems.
Subsequently, through collaboration with a client that approached us, we emerged as the leading ODM specialist in hydration backpacks, products that allow users to hydrate while enjoying the outdoors. This milestone significantly elevated our visibility and reputation within the market. When they first approached us, they had only one SKU (stock keeping unit) and placed a modest order worth USD 50,000. Their original backpacks were box-shaped and manufactured in Mexico. We suggested a more aerodynamic design suited for cycling, with a three-dimensional pattern that significantly improved aesthetics and comfort. That small innovation transformed the product. Sales order receiving from the customer skyrocketed from USD 50,000 in the first year to USD 1 million, then to USD 3 million, USD 5 million, and eventually USD 22 million. The sales of both the customer & Dong In skyrocketed from this opportunity.
Since then, some of the world’s leading brands, such as Arc’teryx, Black Diamond, and Gregory, have come to work with Dongin one after another. From the early 2000s to 2012, we entered a major growth period, securing contracts with leading global brands. To support our expanding operations and increase production capacity, we established two specialized subsidiaries to support the main production line.
Arc'teryx Alpha SL 30 Backpack White
When Arc’teryx approached and worked with us, the design challenge laid in the backpack’s back panel. They struggled with injecting plastic components and with designing a waist pad that could rotate naturally with the user’s movement. We helped solve these issues by focusing on how to minimize energy loss during extreme use, at high altitudes or in hot environments. Our design ensured that while the body moves, the backpack remains stable, reducing strain and improving endurance. This philosophy extends across all our collaborations. This is a prime example of how small yet meaningful user-centered improvements can unlock market potential. We strive to offer this kind of value to every brand we work with.
Similarly, When we first collaborated with Gregory to develop their flagship items, we faced a similarly demanding challenge. The core task was to ensure that every intricate detail and critical survival-oriented functionality of the product was fully preserved, without compromising manufacturability at scale. Balancing this high level of technical precision with mass production requirements became one of the most significant hurdles in the project.
As one of the examples, DONG IN actively embraced the challenges presented by its clients and, through close collaboration, successfully developed a torso adjustment system that allows backpacks to be tailored to the user’s height and body structure. This innovation significantly contributed to the growth of our clients, helping them better serve their end customers through enhanced product performance. This case laid the foundation for DONG IN’s capability to deliver client-specific, customized development, reinforcing our position as a trusted and innovative ODM partner.
By consistently addressing the complex challenges of our frontline clients, Dong In has steadily accumulated expertise over the years. Today, we stand as the only company in the high-end outdoor gear industry that has mastered ODM-based high-mix, low-volume manufacturing at an exceptional level. Our evolution reflects not only technical proficiency, but also a deep understanding of our clients’ needs and the agility to deliver tailored, premium solutions.
Our strategy has always been the same, approach buyers directly and help them solve their pain points. We also manufacture all sensitive and complex components in-house, which gives us an advantage in quality control and technical innovation. That’s why we maintain such a large presence in the Philippines.
By 2009, our export volume reached USD 60 million. As our client base grew to around 40 global brands annually, we continued expanding our Philippine operations. Some factories were dedicated to golf bags, others to tents, and so on. By 2022, our exports reached USD 194 million. In November 2023, Dong In Entech was officially listed on the KOSPI Stock Exchange.
We never outsource production to companies outside the Dong In family. Our main business segments are technical backpacks, which make up about 34% of our portfolio and are geared toward serious outdoor enthusiasts. Another 36% consists of general-purpose backpacks, which still use premium outdoor materials but are intended for travel, school, or everyday use.
In addition, about 22% of our business comes from other outdoor equipment, such as harnesses, tents, chairs, kayaks, and golf bags. Our proprietary brands account for the remaining 8%. Regarding our private-label brands, we launched our first baby gear brand, “Forb,” in Korea in 2006. Eleven years later, we introduced its U.S. counterpart, “WAYB.” In 2022, we launched three additional brands in Korea. Our annual production capacity is approximately USD 236 million, including operations with two hours of daily overtime. While we have 11 corporations in the 10 of them are currently operational. Two of these support material supply to the main sewing plants.
Almatech, founded in 2003, handles all metal-related production, including outdoor furniture frames. ESGS, our Philippine headquarters, operates the central warehouse and automated fabric cutting system, supplying half-finished goods to our sewing facilities. Each sewing facility is assigned to specific clients to prevent leaks in design, IP, or technical know-how. We also operate one facility in Vietnam.
Vietnam Facility
We currently operate R&D centers in four countries. Korea supports the Philippines and Vietnam in high-level engineering, including CAD and complex product design, particularly for tents and outdoor furniture. The Philippine and Vietnamese teams also participate from the early development stages through prototyping, working closely with clients. We have 11 R&D centers in the Philippines. Each R&D center maintains a sample team of around 30 people. In December 2023, we also opened an R&D center in the United States, which now has 10 employees working on the development of our proprietary brand products.
Sales revenue in 2019 was similar to that of 2021. In 2020, the COVID-19 pandemic led to a decline in orders, but in 2021 we experienced a strong recovery due to the boom in outdoor activities. Then, in 2022, we recorded the highest sales revenue in our history. However, in early 2023, as the pandemic restrictions lifted causing overstock issues. As a result, our sales dipped slightly in 2023. We’ve since begun to recover, and we expect 2025 to match the peak revenue of 2022.
Currently, about 83% of our revenue comes from North America, 13% from Asia and Oceania, and 4% from Europe. Most of our top 10 clients are headquartered in North America. The actual shipment volume is roughly 60% to the U.S., with 20% each to Asia, Oceania and Europe.
We typically work with about 40 clients per year. COTOPAXI and Dong In began their collaboration in the early 2010s, and through this joint development process, a moment of inspiration sparked a breakthrough idea. The idea centered around reusing surplus fabrics, materials that other clients had used and subsequently requested to be discarded as obsolete. This concept originated from DONG IN and ultimately contributed to the creation of what is now known as the COTOPAXI Del Día program. Each bag has a one-of-a-kind color scheme, and no two are alike.
Do you still have enough leftover fabric to support COTOPAXI's continued success?
Absolutely. We work with about 40 clients every year, so there’s a continuous supply of surplus materials. If you visit COTOPAXI's website and look at their Allpa product line, you’ll notice something unique: each bag has its own product photo.
As for the broader outdoor backpack market, we believe it will continue to grow. By 2030, we project it to be a USD 32 billion industry. The high-end outdoor segment has particularly high entry barriers due to its technical complexity. As I mentioned earlier, most of our backpack products can’t be mass-produced by other manufacturers because of the technical expertise required, and the trust built with clients over decades.
Trust is critical in our business. We operate in an industry where safety and even lives are on the line. For most of our top clients, we’ve had relationships lasting over 10 or even 20 years. For example, we manufacture 100% of Black Diamond’s outdoor harnesses, and we’ve worked with them for more than two decades.
Our products are not simply low-cost items, they are high-quality products.
This reflects our business philosophy of prioritizing quality and technology over quantity.
In the long run, this becomes a barrier to entry that prevents competitors from easily entering our business domain. It also allows us to expand our own space within the industry and build strong, long-term partnerships with clients who value performance and reliability. Even when producing the same item, our pricing reflects a commitment to quality over quantity. In the long run, this reduces the overhead caused by defects, benefiting our partners and reinforcing our shared focus on performance and reliability.
The “Gorpcore” trend, where people are incorporating high-performance bags into everyday streetwear, is quite different from their original intended use in the mountains or on trails. This has increased demand for backpacks and even new product types not traditionally manufactured by performance brands. Since your company focuses on the highest-performance gear, do you view this as an opportunity for growth, or is it too far removed from your core business model?
Whenever new technologies are introduced to the market, they often differ significantly from the original. Naturally, consumer preferences will vary. However, we believe the most decisive factor is the sense of convenience that consumers experience. Because our products are both highly functional and comfortable, users immediately notice the difference. Over time, many brands begin to imitate those designs, which then evolve into trends. This, in turn, leads consumers back to the original technologies and manufacturers, like us.
So, rather than being a threat, this trend presents a tremendous opportunity for high-performance manufacturers like us. Initially, people thought outdoor high-end gears were too expensive. But today, many consumers are choosing high-end gears because their purchasing power has increased, and, more importantly, they have experienced the tangible benefits of original, high-performance products compared to imitations. Ultimately, we believe that the true driver behind consumer decisions is convenience and quality.
So, it creates a kind of virtuous cycle, where innovation at the high-end influences casual wear, which then loops back to benefit high-performance brands.
That’s why high-end brands constantly strive to introduce something new, not just in color or fabric, but in functionality. Whether it’s a lightweight component or a subtle ergonomic feature, even small conveniences elevate consumer expectations. That’s the essence of our business. This is also why we invest so heavily in technology development, especially in our facilities in the Philippines.
Our strengths lie in three main areas. First is our technical innovation. Comfort and convenience are our highest priorities. We don’t just follow our clients’ development plans; we proactively suggest solutions to their pain points, which they immediately recognize and appreciate.
Second is our expertise in lightweight, high-tech aluminum products. We manage the entire aluminum production process in-house, from A to Z. Starting from billets, the raw material of aluminum, DONG IN handles the entire processing chain in-house, including extrusion, drawing, aging, and all related treatments necessary for aluminum subcomponents. This integrated approach ensures that the quality of our aluminum semi-finished goods, and the products that incorporate them, remains consistently high and reliable. All aluminum grades we produce meet or exceed aerospace-grade standards, guaranteeing exceptional strength, durability, and precision. These high-grade aluminum components are primarily used as structural elements in outdoor backpacks, kayaks, tents, and chairs, where lightweight strength and durability are mission-critical. In the outdoor industry, they serve as core components essential to product performance and user safety.
Thirdly, our operations are vertically integrated from midstream to downstream, supported by our recently upgraded SAP ERP system and proprietary MES, giving us excellent supply chain control, except, of course, for raw material sourcing & optimized production.
We don't simply react to customer requests, we initiate development. Most of our clients engage in one to two development cycles per year with DONG IN for their outdoor gear products. Each development cycle typically takes approximately 4 to 6 months to complete.
During that time, designers visit our facilities in the Philippines or Vietnam. We create real-time samples based on their specifications or updated hand-drawn sketches. If they’re struggling with a particular function or feature, we often provide a working solution the very next day. We revise, improve, and finalize the product during their visit, allowing them to return with fully developed outcomes. We are one of the only companies capable of managing such intensive multi-product development in parallel. This process reduces a typical six-month development cycle down to just two weeks.
However, compared to Vietnam or China, the Philippines has more supply chain challenges due to its geographic distance from other manufacturing hubs. How do you address those limitations?
In the 1990s, Vietnam was the go-to location for the sewing industry due to its well-developed infrastructure and supply chains. The Philippines lacked that kind of domestic resilience. To overcome this, we structured our operations using a robust SAP system, allowing us to collect and manage materials globally. Most of our fabrics come from Korea, which is a natural advantage since our headquarters are based there. Additionally, many high-end nylon materials are produced in Korea, so we have no difficulty securing the required inputs.
Of course, operating in the Philippines hasn’t been without challenges. The Philippines is known for its strict adherence to rules and regulations, distinguishing it from many other Southeast Asian countries. At the same time, the Filipino people possess a unique cultural trait, a deep emphasis on personal warmth and human connection, which many foreign companies overlook, often leading to failed market entries. Therefore, we took a long-term view. We saw potential in its people, who are smart, though initially not fully open to new ideas.
In spite of the obvious challenges and disadvantages described earlier, we chose the country primarily because of its English-speaking population, an essential factor for working closely with our U.S.-based clients. The Philippines also offers a strong labor pool and convenient geography; our factories are only two hours from Manila International Airport.
To bridge the cultural gap, we invested in team-building and community engagement. We host monthly events such as sports festivals and holiday parties to build a strong internal culture and help our teams understand our shared vision. Ten years later, we now have a highly committed and cohesive team. That’s been key to our success.
Dong In, however, has spent over 30 years building operational expertise in the Philippines. Through this experience, we have successfully established a model of coexistence and mutual growth with over 10,000 local employees, setting us apart as a trusted and sustainable partner in the region.
Now, can you guess how many different materials go into a single backpack? Around 70 to 80 components. Just the fabric alone involves eight different types. As long as we remain in the high-end outdoor gear segment, sourcing materials globally will always be necessary. Any competitor in Vietnam would need to do the same. So, our decentralized supply strategy does not pose a risk to our operations.
Looking ahead, our growth strategy focuses on two pillars: category expansion, capacity expansion. We’re not just refining our core competencies, we’re actively investing in our future.
We began developing tents in 2022 and scaled up to full production in 2024. We now offer complete, end-to-end solutions in the tent category, including both tent poles and fabric sewing. Our poles use 7000-series aluminum, the same grade used in aircraft manufacturing. That’s our proprietary technology. Many leading outdoor brands are now working with us on this.
Between now and 2024, we’ve invested nearly USD 80 million in new facilities. We are currently planning three more factories. The first will be dedicated to the new item category production and is scheduled for completion by the end of 2025. In 2026, the second factory will be for capacity expansion of our existing customers. The third factory is still under planning, and we’ve yet to determine its specific product focus.
As for our proprietary brands, we currently operate WAYB in the U.S. and Forb in Korea. One of our standout products is the WAYB Pico car seat. Weighing just 3.6 kg, about one-third the weight of conventional car seats, Pico was launched in the U.S. in 2018 and quickly gained traction. Remarkably, more than half of Pico sales are through direct-to-customer channels, rather than relying heavily on third-party e-commerce platforms.
Pico features an aluminum frame, using both 6000- and 7000-series alloys. The mesh fabric is wool-based, offering natural fire resistance, something that traditionally required chemical treatment. Most car seats are made from bulky plastic, but Pico is crafted with aerospace-grade aluminum. What truly sets it apart is that the 7000-series bending process is nearly impossible to replicate. That proprietary technology is ours, and no competitor has been able to copy it.
Up to 2024, WAYB achieved a 39% growth rate. How optimistic are you about WAYB’s future? Do you plan to diversify the portfolio to reach a broader customer base?
Yes, I’m very hopeful. Our product is made from aluminum and other recyclable materials, whereas most conventional car seats are made entirely from bulky plastic. That distinction is significant, especially as consumer mindsets are shifting away from plastic. People are becoming more environmentally conscious, and I believe this presents a major opportunity for us. Bringing that level of engineering and sustainability to everyday consumers opens up a whole new market.
WAYB is the first successful brand launched by Dong In. How challenging was it to shift your mindset and avoid falling into the trap of “being your own customer”?
When I first launched our baby brand Forb in Korea, a lot of people, including our own team, were skeptical. After all, we had built our identity as an OEM for outdoor gear. So, when I announced our plan to produce car seats, there was hesitation. But everything changed when we presented our aluminum car seat at BEXCO. It was displayed next to a traditional plastic seat, and visitors couldn’t believe they were even in the same category. Some asked if our product was just a part of the larger plastic seat, it looked that compact and refined by comparison.
As a manufacturing-driven company, creating synergy with our own brand was not an easy task at the outset. The product development journey involved numerous trials and errors, requiring patience and persistence. However, fueled by the overwhelmingly positive response from the Korean market, we succeeded in developing truly unique products through our Philippine manufacturing subsidiary, products that previously did not exist in the market. This momentum has continued since 2018, and we are committed to evolving as a company that not only operates as an innovative ODM partner, but also continues to grow our in-house brand by delivering groundbreaking products.
What’s next? Are you looking to diversify your offerings, possibly through partnerships with airlines or expanding your e-commerce presence internationally?
Our success with the Del Día project for COTOPAXI is a good example. Each product in that line is unique, no two have the same color combination. That concept became a major hit starting around 2016–2017. Moving forward, we intend to continue promoting upcycling and sustainable design practices, positioning ourselves as a leader in ESG innovation within our industry.
We’ve also completed a full-scale upgrade of our production facilities in Vietnam. Vietnam production lines are now equipped with solar panels, and we’ve implemented climate control systems, both for our production floors and finished goods warehouses. This allows us to maintain precise temperature and humidity conditions before export. To our knowledge, we are the first high-end outdoor gear manufacturer to introduce such environmental controls across both production and storage. These initiatives are aligned with our commitment to ESG principles, and we will continue to support our customers in pursuing sustainability goals.
We've seen K-pop and Korean culture elevate the image of Korean-made and Korean-designed products globally. However, the manufacturing side of Korea’s fashion industry is still relatively underrecognized. From your perspective, what are Korea’s core strengths in fashion manufacturing, and how do they set the country apart?
Korea’s growth journey was far from smooth. After the Korean War, we started from nothing and had to climb our way up from the very bottom. It took relentless effort to build the foundation for what we have today. Korea’s long-standing history, lifestyle, and traditional practices helped shape the basic technological groundwork. Still, our progress required immense effort to absorb and master advanced technologies. Especially for my generation, I was born in 1955, we had to work incredibly hard to survive and succeed. But that survival instinct and determination to thrive played a major role in transforming Korea into the powerhouse it is today. We've advanced across various industries, from automobiles and shipbuilding to aerospace and defense. And let's not forget, we’re still officially in a state of ceasefire, which adds another layer of urgency and resilience to our national mindset.
Most importantly, the quality of Korean manufacturing is exceptional. We are constantly learning from our mistakes and building on our technological strengths. Korea’s culture also plays a key role. We value speed, efficiency, and convenience, what we call the bbali-bbali (hurry-hurry) culture. Koreans are highly solution-oriented and can’t tolerate inefficiency. Many workers voluntarily put in overtime, sometimes around the clock, to contribute to economic growth.
That said, I am a bit concerned that this culture of dedication is fading in the current generation. But at Dong In Entech, we maintain our core values. We never compromise on quality. Because of this strict policy, our clients stay with us because of our exceptionally low defect and return rates. Our buyers often tell us, “Your initial cost may be higher, but your final cost is lower.” For example, We have been producing 100% of Black Diamond’s harnesses for the past 20 years. This level of trust stems from our consistency and dedication, and I believe it is the very foundation that has enabled Dong In to maintain such a long-standing partnership.
Another strength of ours is R&D investment. Many of our clients don’t even maintain their own R&D departments, they rely on us instead. They come to us with customer demands, and we lead the development. That’s how we created innovations like lightweight aluminum components. We’re also now exploring stainless steel forging and carbon-based technologies to diversify our capabilities. Thanks to these efforts, Dong In is now recognized as a top-tier ODM.
Leveraging AI and digital technologies in production technology has become a national trend. Are you incorporating these tools as well?
In sewing, full automation is not yet feasible due to the complexity of the processes. However, especially with over 7,000 kinds of different product production yearly. We’ve implemented a cell system to streamline information management and production using digital technologies. We’ve adopted MES (Manufacturing Execution System) and upgraded our SAP ERP system to boost operational efficiency. We’re also incorporating robots to assist with select tasks.
In our aluminum operations, processes like auto-bending and anodizing are fully automated. For complex sewing jobs, we use computer-assisted sewing systems that reduce production time to just 10% of what it would take using manual labor. Our central warehouse also uses automated fabric cutting systems.
If we come back a few years from now, what would you hope to say you’ve achieved?
It’s been 33 years since we started Dong In Entech. We’ve achieved a lot, and we’ve learned even more. One of the accomplishments I’m most proud of is the deep bond we’ve built with our Filipino employees. It took years of consistent effort, and it’s something I truly value.
As a publicly listed company, we’ve also grown significantly in scale. Looking ahead, we have many exciting projects in the pipeline. We expect great results from these initiatives. While we are unable to disclose all details due to the confidential nature of our operations, we remain committed to continuously expanding our product categories and manufacturing capabilities within the outdoor sector. Our goal is to serve as a strategic partner and problem-solver, working closely with our clients to address their challenges and drive mutual growth. Through this approach, we aim to maintain a leading role in the market as a trusted and indispensable ally.
Of course, there are barriers, especially tariffs imposed during the Trump administration. But trade tensions are nothing new. That said, the Philippines remains a strategic advantage for us, as it is partially exempt from these trade disputes. Ultimately, our goal is to reach the level of convenience and comfort our clients expect. That’s why we continue to enhance both our products and services. As time passes, you’ll see our progress. I'm older now, but before I retire, I want to ensure that Dong In becomes not only a successful company but a good one, especially for our employees. Our Filipino staff are incredibly important to me. My hope is that we can expand this model of growth to even more areas, and that our younger employees can see a clear, promising future at Dong In. That’s my vision.
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