PRLog (Press Release) –
Feb 14, 2007 – Quota elimination at the end of 2004 will trigger a major restructuring of the global textile and clothing industry from which China will be the main beneficiary. The world’s buyers now have greater access to China’s low price garments and will shift more orders to the country. Many predict that China’s share of US and EU clothing imports will double or even treble in the next five years. 91% of respondents in a survey of Chinese summer garment suppliers were expanding capacity in anticipation of increased orders, and intended to focus on higher value EU and US markets at the expense of Asia. New factories are being built and existing factories expanded. Workers are being hired and machinery purchased. Products with the highest expected growth rates were said to be men’s T-shirts, men’s casual shirts, women’s summer dresses, and girls’ summer wear. However, the industry faces major challenges. State-owned import/export giants are facing competition from producers who can now deal directly with buyers. Traditional trading firms are buying plants to cater to buyers who want to deal directly with manufacturers while offering improved customer service. But producers face hurdles such as power supply interruptions, skills shortages, rising labour and raw material costs, and reduced tax incentives. With prices likely to remain flat, Chinese suppliers will have to add value to their products if they are to maintain a competitive edge—not only against suppliers in other low cost countries, such as India, Vietnam and Mexico, but also against rival domestic manufacturers.
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