Home / Knowledge / News / Apparel/Garments / China's garment industry faces myriad of problems
China's garment industry faces myriad of problems
16
Jan '14
The garment industry in China is facing myriad of problems and it has reached a critical moment where transformation, upgrading and brand building has become necessary for its sustainability in future.
 
In 2013, China’s apparel industry faced problems from overstock, shrinking demand, and decrease in profitability. In fact, the main business income, gross profit and gross tax increment speed of China’s domestic apparel industry has slowed by varying degrees, according to a joint study conducted by the Economic Daily and the Economic Monitoring Centre of the National Bureau of Statistics.
 
According to industry analysts, a major problem facing the Chinese garment industry is the serious backlog of inventory, which is estimated to be about two times the total sales in a year. In other words, even if apparel firms do not produce for the next two years, they would have enough stock to sell for the period.
 
Looking at the current scenario, several garment enterprises have opted to give discounts, and are selling online at lower rates, in order to lessen stocks and divert the funds for accelerating upgradation.
 
However, selling online at lower rates is also having its own drawbacks as consumers are switching from buying at stores to online buying. It is also causing some damage to brand value.
 
In the past, the Chinese garment industry relied heavily on earnings from exports, but now the export orders are decreasing. The report on first three quarters (2013) performance of China’s textile industry released by the Ministry of Industry and Information Technology (MIIT) showed that the demand for Chinese clothing fell in the EU and Japan.
 
On the other hand, the performance of Chinese garment enterprises in the domestic market is also not good, and apparel retail sales decreased by 2.9 percent year-on-year in the first half of 2013.
 
In addition, rising domestic labour costs, shop rents, raw material costs, and the strong impact of international apparel brands have together affected the sustainability of Chinese garment enterprises.
 
Hence, Chinese apparel industry will have to readjust its industrial structure to survive in future by actively cultivating brand growth, and moving from a manufacturing power to intellectual power.
 

Fibre2fashion News Desk - India


Must ReadView All

Courtesy: Swedfund

Textiles | On 27th May 2016

Swedfund to pilot new textile factory in Ethiopia

Swedish govt-owned development financier Swedfund and the Bangladeshi ...

Textiles | On 27th May 2016

Egypt signs deal with China to set up textile zone

Egypt and China signed a framework agreement earlier this week on to...

Textiles | On 27th May 2016

CAI pegs cotton output at 341.5 lakh bales this season

The Cotton Association of India (CAI) has projected India’s cotton...

Interviews View All

Jurgen Gauger
Spreadshirt

How is the market for personalised prints on garment shaping up? What are...

Rahuul Jashnani
Jashn

What is the size of the ethnicwear vertical in India? How are Indian...

Priyanka
Studio Priyanka Rajiv

To which countries does India export majority of its hand-embroidered...

Kerem Durdag
Biovation II LLC

<b><i>Kerem Durdag, CEO, Biovation II LLC, provides an insight into future ...

Johan Berlin
InvestKonsult Sweden AB

<i><b>Investkonsult Sweden AB has been buying and selling second-hand...

Ashok Desai
Bombay Textile Research Association

<b><i>Bombay Textile Research Association (BTRA) is a leading name in...

Bani Batra

Bani Batra’s couture wedding collection is inspired by traditional Indian...

Tony Ward
Tony Ward

"You have to truly understand what your client wants, know her needs, what ...

Karan Arora
Karan Arora

Bridal couture created with rich Indian heritage, exquisite craftsmanship...

Press Release

Press Release

Letter to Editor

Letter to Editor

RSS Feed

RSS Feed

Submit your press release on


editorial@fibre2fashion.com

Letter To Editor






(Max. 8000 char.)

Search Companies





SEARCH
May 2016

F2F Magazine

Subscribe today and get the latest update on Textiles, Fashion, Apparel and so on.

SUBSCRIBE


Browse Our Archives

GO


Advanced Search