Home / Knowledge / News / Textiles / Export capacity of textile & garment SMEs weakens in China
Export capacity of textile & garment SMEs weakens in China
24
May '14
An analysis of the performance of the Chinese textile and garment export sector during the first quarter of the current year shows that the export capacity of small and medium enterprises (SMEs) has weakened.
 
From January to March 2014, China’s textile and garment exports increased marginally by 0.4 percent year-on-year to US$ 58.1 billion, which is a slowdown compared to above 11 percent growth rate witnessed during the corresponding period of last year.
 
One of the reasons for this slowdown is the decrease in export capacity of SMEs, according to analysts. In recent years, SMEs became the main force of Chinese exports and their general and processing trade grew at an average rate of 10 percent for nearly three years. But, in the first quarter of this year, their share in total textile and garment exports declined to 67.21 percent from 71.5 percent share in 2011. The export capacity of SMEs has weakened due to lack of funds to upgrade technology and other reasons.
 
Another reason for the slowdown is weakening of demand from emerging markets. In the last two years, Chinese textile and garment exports to emerging markets achieved rapid growth. For example, in 2013, Chinese exports to Asean grew by 28.32 percent year-on-year, to Russia by 35.84 percent and to the Middle East by 12.22 percent.
 
However, since late last year, emerging market economies are feeling some impact of the slowdown in economic growth of the US. In the first quarter of 2014, Chinese textile and apparel exports to Asean increased only slightly by 1.28 percent, while its exports to Middle East decreased by 5 percent. Even exports to BRICS countries like South Africa, India and Brazil dropped by 18 percent, 7 percent and 1 percent, respectively.
 
In addition, the market share of China’s textiles and clothing items in developed countries is continuing to decline due to the rapid development of the textile and garment industry in Southeast Asia.
 
Moreover, the acceleration of shift in production base from China to Southeast Asian countries, where labour and other production costs are lower, is also affecting the growth rate of Chinese textile and apparel exports.
 

Fibre2fashion News Desk - India


Must ReadView All

Apparel/Garments | On 23rd Aug 2017

BRC welcomes clarity on goods flow during Brexit

British Retail Consortium (BRC) has welcomed the greater clarity that ...

Textiles | On 23rd Aug 2017

Kraig delivers first dragon silk fibre to medical firm

Kraig Biocraft Laboratories, Inc. a leading developer of genetically...

Information Technology | On 23rd Aug 2017

ThreadSol to organise Apparel Tech-Up in Bangladesh

ThreadSol, the pioneer in enterprise material management for sewn...

Interviews View All

Varinder Singh Jawanda
Trendy Bharat

Sizing and fitting issues are inherent problems for companies expanding...

Mohammad Mamun Ar Rashid
UL VS Bangladesh Ltd

Productivity, creativity and innovation play a vital role in the growth of ...

Jim Desai
Blaiva Fabricaa

Fashion industry likely to remain labour-intensive in coming years

Kevin Nelson
TissueGen

Kevin Nelson, Chief Scientific Officer, TissueGen discusses the growing...

Larry L Kinn
Suominen Corporation

Larry L Kinn, Senior Vice President - Operations Americas of Suominen...

Paolo Ocleppo
Sandvik Hyperion

Paolo Ocleppo, Rotary Cutting Segment manager, Sandvik Hyperion discusses...

Nisha Chanda
Whistling Woods International School of Fashion

<div>A lack of upgraded courses in costume designing and fashion as per...

Robert Brunner
Devereux

Golfwear and menswear brand Devereux is set for greener pastures. Robert...

Igor Chapurin
Chapurin

"Now we can see the Russian trend in international fashion. And Russian...

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

August 2017

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

news category


Related Categories:

Planning to Take the Leap towards
Sustainability?

Do you see sustainability as a route to business growth?

Yes No

Do you think the sustainability space has the needed tools and resources available for a business to lead change?

Yes No

Active Poll

Do you see sustainability as a route to business growth?

Yes
67.7%
No
16.1%
Skip
16.1%

Total Votes: 31

Do you think adopting a sustainable approach will be a profitable move for your business?

Yes No

Active Poll

Do you think the sustainability space has the needed tools and resources available for a business to lead change?

Yes
45.2%
No
35.5%
Skip
19.4%

Total Votes: 31

Do you want the world to know about your sustainability journey and your business’ environmental footprint?

Yes No

Active Poll

Do you think adopting a sustainable approach will be a profitable move for your business?

Yes
83.9%
No
6.5%
Skip
9.7%

Total Votes: 31

Thanks for your valuable feedback. Claim your free latest sustainability e-book.

Active Poll

Do you want the world to know about your sustainability journey and your business’ environmental footprint?

Yes
61.3%
No
9.7%
Skip
29.0%

Total Votes: 31


E-News Insight
Subscribe Today and Get the
Latest News Update in Your Mail Box.
Advanced Search