China Baby & Children's Wear Industry

An Expert's View about Knitted and Crocheted Apparel in China

Posted on: 25 Mar 2010

The baby and children’s wear industry in China is optimistic of export sales growth, despite slow global economies.


Turning in approximately $10 billion in overseas sales in 2008, the more than 10,000 manufacturers in the line are confident that export revenue will improve by up to 10 percent in the months ahead.


This positive outlook is due to several reasons, foremost of which is an industry-wide shift to upscale manufacture. Suppliers believe doing so will help them gain an edge over competitors, especially since the market is already saturated with low end models.


Companies are also adjusting their order requirements and accommodating buyers’ requests. For instance, several makers now only need a minimum of 100 pieces to confirm a transaction. In the past, as many as 1,000 garments were required.


Suppliers believe such measures would entice clients to place repeat others, thereby ensuring sustained growth.


The following are some of the key developments we see in China’s baby and children’s wear industry:

• Most companies cut export prices by up to 10 percent during the past three months. This came as a result of lower material outlay and a more stable yuan. But growing demand for costly environment-friendly fiber and increasingly stringent product safety requirements are pushing up expenses. Even traditional fibers such as cottonare also becoming more expensive. If costs continue to rise, suppliers may have to raise quotes in the next sixmonths, but only by up to 3 percent.

• Despite material sourcing and testing difficulties, more businesses will be releasing designs made from environment-friendly fibers such as organic cotton. Textiles with UV, static and bacterial resistance will see increased usage as well.




The above is extracted from the Executive Summary of China Sourcing Report: Baby & Children's Wear


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Posted: 25 March 2010

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