The Chinese textile and clothing industry, cheap shapewear its challenges and opportunities was a topic for discussion during one of a series of presentations organised and moderated by Evalliance and its president Jean François Limantour, as part of the Apparel Sourcing trade show, which took place in Paris last month.
The presentation entitled The Chinese clothing and textile industry: situation, strategies, outlook provided an overview of the domestic industry and its potential for future growth, and was aimed at production managers attending the leading trade fair for sourcing finished products in clothing and fashion accessories.
With 28 million employees, the Chinese clothing and textiles sector is the world’ leading producer and exporter. In 2015, its exports topped USD 284 billion, USD 44 billion of which went to the European Union. The sharp increase in wage costs, in addition to a relative lack of skilled labour, have resulted in significant relocation of Chinese clothing production to neighbouring countries such as Cambodia, Vietnam and Myanmar.
China is also investing in textiles in ASEAN countries. As a result, the drop in Chinese exports seems greater than it actually is. Inversely, consolidated Chinese exports, from China and relocated Chinese factories, continue to grow.
The Chinese strategy is multipronged: relocation to low-cost countries, establishing production units in countries that have preferential trade agreements with Europe (Cambodia, Myanmar, Bangladesh, etc), orientation towards the Chinese domestic market, upgrading Chinese ranges of products, investment in distribution and acquisition of foreign brands and businesses.
In order to retain and capture new markets, China is striving hard to boost competitiveness and marketing. The very strong attendance by Chinese exhibitors at Texworld/Apparel Sourcing is proof of China’ very vigorous growth.
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