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China's apparel firms face pressure to upgrade
Apr '13
After witnessing a rapid growth for about 30 years, the Chinese apparel industry has now entered a period where it becomes necessary for enterprises to adjust, transform and upgrade.
According to data of the National Bureau of Statistics, Chinese large-scale enterprises produced 26.728 billion pieces in 2012, showing an increase of 6.20 percent year-on-year. But, the growth rate was slower compared to 2011.
The large-scale enterprises invested 261.092 billion yuan in China’s garment sector in 2012, up 25.97 percent year-on-year, much lower than around 40 percent growth rate witnessed a year earlier.
The overall profit margin of large-scale enterprises remained stable in 2012, but there was a decline in profit margins of small-scale enterprises. The difference in profit margins of large-scale and small-scale enterprises points to the growing pressure on these enterprises to upgrade and increase their efficiency.

Fibre2fashion News Desk - China

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