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Adding value only way out for garment producers
Jun '11
China's small garment factories along coastal areas have entered the "countdown" of collapse.

The industry estimates that about 30 percent of small and medium textile and garment factories will close down this year, so branding has become the only way out for China's textile and garment enterprises.

It is difficult to face competition by always quoting low prices. The only way out is to improve product quality and add value to their products.

Domestic textile enterprises have started to increase investment in R&D and product innovation, shorten update rate of product cycles and they have also taken proactive approach to product promotion and launches, as well as gradually open up domestic market.

Current situation of textile exports is complex; many textile enterprises in Canton Fair proposed stabilizing tax policy of export rebate, so as to avoid erosion of more profits.

Statistics released by the Ministry of Industry and Information showed that in the first quarter of this year, China's textile sector achieved 10.4 percent of added value, compared with the same time last year.

The rate fell 3 percent year on year, and down 1.2 percent, compared with the fourth quarter of last year.

Fibre2fashion News Desk - China

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