Abstract
Why buy this report
- Get insight into trends in market performance
- Pinpoint growth sectors and identify factors driving change
- Identify market and brand leaders and understand the competitive
environment
Product coverage
Clothing; Footwear
Executive summary
Structural change in China' s textiles and clothing
Textile and clothing manufacturing is a major industry for China, accounting
for 19% of the country' s total exports and around 10% of its overall
industrial output in 2003. The industry was totally freed from government
control and planned production schemes in 1983. After 20 years of development,
industry forces rather than government policy now shape growth.
Italian footwear holds key position
Clothing and footwear sales in urban China are largely influenced by the lure
of foreign brands, as many affluent urban Chinese consumers look to emulate
the latest Western fashions. According to Business Daily, in 2003, over 30% of
all footwear sold in China is manufactured in Italy, with close to 24% of all
leather shoes also made in Italy. Italy exported 166,000 pairs of leather
shoes to China in 2003, most of which were high-quality shoes.
Designers shun domestic fabrics
Despite being ranked number one in the world in terms of production and
exports for several years, more than 50% of exported clothes are made using
imported materials, while a huge amount of domestic clothing materials lies
stockpiled in warehouses. China' s production of clothing materials reaches 16
billion metres each year, far exceeding demand. However, China last year spent
over US$1 billion on importing materials.
Changes in general pricing for clothing
In urban China, the unit price of clothing increased in the review period due
to the increasing share of branded goods. In big cities such as Shanghai and
Beijing, consumers can find many famous clothing brands with higher unit
prices from Europe, the US, Japan and Korea. However, in rural China, clothing
is still chiefly purchased for functional usage. There are fewer concerns with
fashion in rural areas and consumers tend to be price-sensitive.
Future trends of clothing and footwear
Over the forecast period, export-oriented manufacturers are expected to
leverage on their foothold in clothing and footwear by introducing more
private label products and locally designed clothing and footwear in China.
With the potential to capture profits due to the 300-500% price difference
between ex-factory prices and retail prices, many of these manufacturers are
likely to develop their own line of merchandise. Further, with the government
deregulating retailing, companies that act now will have a first-mover
advantage.
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