China is swiftly becoming a dominant player in the global textile and apparel
market both in terms of apparel consumption and exports. Their textile and
apparels are making an integral segment in the markets of developed, and
developing countries. Middle class population in China is approximately around
80 million. Along with the increase in their population, so does the size of
their textile, and apparel market. Industry analysts predict that the domestic
apparel sales of the country will grow considerably to reach more than $170
billion USD by 2010.
Whats inside? domestic market in China:
Chinese consumers nowadays prefer to shop for branded
apparels. Influence of the western culture, media awareness, and rise in their
purchasing power attribute to this transformation. Numerous international
brands have set their brands in the Chinese market, while many others are at
their wings seeking entry into the dragon nation. Simultaneously, consumption
of mass segment products also manipulate apparel purchases.
Athletic, denim, and luxury brands are selling like hot
cakes in their market. Brand awareness of the Chinese consumers are increasing
nowadays, that a recent research report reveals that 38% of the respondents
prefer domestic brands, and 22% have expressed willingness to shop for western
brands.
Growth Drivers:
There are many factors which are the raison d'tre for the drastic
growth in their apparel segment.
- Favorable economic environment: Changing landscape of the
countrys retail industry, increase in the amount of disposable income of
the people, and the growing impact of western culture in China has created a favorable environment which makes the apparel industry to flourish.
- Tax and investment incentives: The Government offers various
tax breaks and financial incentives. Attractive investment incentives are
offered not only by the national Government, but also by the local and
provincial Governments. This attracts a sizable amount of foreign
investments which has nurtured the country.
- Abundant availability of cheap labor: Apparel manufacturing is a
labor intensive industry. China has enormous population which provides the
required labor force to boost up their apparel sector.
- Availability of raw materials: Easy availability of raw
materials in its part enhances the manufacturing process.
- SEZ culture: The Special Economic Zones (SEZ) developed by the
Chinese Government offers big benefits to the foreign investors, and
significant tax concessions. SEZs located in Guangdong, Fujian, Hunchun,
and Shanghai provinces motivate the growth of the industry.
- Government support: Appropriate support is offered by the
Government at the provincial, local, and also at the national level for
the manufactures.
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