Global financial crisis didnot seem to have any serious impact on the textile and apparel industry of China.
Chinas apparel exports havehit new records during the past months. Drastic growth in the countryseconomic conditions and Government support has bestowed China to become a dominant player in the global textile arena. Exports of textile andapparels from China constitute an important segment of the developed anddeveloping economies of various countries. Internal and external markets,increasing income of the people, a positive transformation in the livingstandards of the people have all provided good opportunities for the industryto prosper.
Export values of textile andapparel products from the Southern coastal Guangdong Province grew by 6.3% yearon year to reach USD 2.36 billion. With the changing business scenario, manyforeign companies are now entering the Chinese market through global sourcing.The duty drawback is offered to offset the incidence of customs duty, servicetax, and central excise duty on export items. This duty given to the Chineseapparel exporters were revised five times from 11% to 17%.
Competitors of China believe that the reason for the success is due to the dubious practices followed. Butthe dragon nation has acquired a lot of legitimate advantages by its own hardwork. Years of investment in high quality facilities focus on orders andkeeping up with the delivery times have been the key factors for their success.Credit facilities offered by the banks, Government instructions to exporters,abolition of quotas by US, and EU on Chinese apparel imports have alsosupplemented their export figures.
Drastic change in the retaillandscape is boosting up the apparel sector in China. Increasing influence ofWestern culture in the Asian countries, along with a globalization of cultureis fuelling the demand of Chinese apparels. Increase in the income of middleclass families, dual income in majority of the families has resulted in asignificant increase in the purchasing power of the consumers.
Apart from this, there are alsoother factors that aid the growth of apparel exports of China. The growth of ethical sourcing, new protectionist barriers introduced by richcountries and the growing competitiveness of China have been helpful.Widespread online shopping facilities eroded the competitiveness of the CentralAmerican and the European producers.
Favorable economic environment,low labor and material cost, Government support, tax incentives, SEZ culture,and tariffs account for the success of apparel exports of the country. Changingtrends and increasing consumption will create a new ear in the apparel industryof the country. China will continue to be a good alternative for sourcing forthe coming years for discreet apparel buyers.