China Jackets & Sportswear Industry

An Expert's View about Apparel in China

Posted on: 29 Mar 2010

The jackets and sports wear industry in China is preparing for a difficult year as exports continue to drop as a result of the global economic slowdown.


Customs statistics for major product categories have already shown significant contractions in export growth.


The ski wear segment seems to be the most affected by the financial crisis. Already plagued by changing weather patterns that resulted in weaker sales, exports in the 11 month sending November 2008 plummeted 34 percent by volume and 22 percent by value.


This came after consecutive negative growth in 2006 and 2007. Likewise, exports of T-shirts continue to go downward. In the same 11-month period, shipments dropped 8.5 percent with sales falling 6 percent.


Parkas and windbreakers are perhaps the only products in this industry that have weathered the economic crunch. Exports in the line remain in the black, growing 15.6 and 3.3 percent in value and volume terms, respectively.


The following are some of the key trends and developments we see in China’s jackets and sports wear industry:

• In an effort to cut costs, makers are trimming their workforce and renting out or closing down unutilized factories. In the denim garments line, some companies have laid off up to half of their workers.

• A number of suppliers are now foregoing product value additions for enhanced buyer services. Instead of investing in tracking trends and sourcing innovative materials, these makers are reducing sampling time and offering flexible MOQ.

• To protect themselves against substantial losses, certain suppliers are now requiring their clients to pay a 50 to 70 percent down payment before finalizing transactions.



The above is extracted from the Executive Summary of China Sourcing Report: Jackets & Sportswear


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Posted: 29 March 2010

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