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'Chinese textile industry should emulate Japan & Korea'
May '14
The development and the transition of the textile industry from low-end manufacturing to high-end in Japan and Korea can serve as an example for the Chinese textile industry to emulate, according to some industry analysts.
The domestic textile manufacturing costs have risen in China, but several export enterprises are still embroiled in the ‘price war’ phase. These companies need to come out of the ‘price war’ encirclement and lead the market, instead of the earlier mentality of following the market. This requires that companies have strong product development capabilities, and they introduce new products in the market that are accepted by the consumers, say analysts.
However, product development is easier said than done. Out of the 20 to 30 new products innovated each year, only 1 or 2 get generally accepted by the market. But the 1 or 2 products that do well are enough to bring good profit and can give recognition in the market for several years.
In recent years, many Chinese textile enterprises have adopted ‘China plus one’ strategy and set up production bases in lower-cost countries, in order to avoid the pressure of rising costs of domestic production. This strategy is one of retreat and not pro-active, according to some analysts.
They cite the example of Japan and Korea, where the textile and garment industry is still flourishing by mainly manufacturing high-end products in fewer quantities. They suggest that the Chinese textile and garment enterprises should learn from the development of the Japanese and Korean enterprises.

Fibre2fashion News Desk - India

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