China’s women’s wear industry is anticipating an improved export climate for 2010, despite several challenges that continue to be set suppliers. In fact, the majority of businesses are expecting at least 10 percent growth for 2009. This comes even as exports in the first nine months of 2009 were down 4 percent by volume at 5.8 billion pieces and 6 percent by value at $26 billion.
To reach projected targets, however, measures aimed at cutting expenses and maximizing cash flow remain in place. These include streamlining operations and man power, and keeping some production lines open to domestic sales.
The following are some of the key developments we see in China’s women’s wear industry.
• Companies are continuing to invest in measures to boost efficiency. For many factories, this has been one of the best practices to keep them in the black, even when orders ran low.
• Suppliers are fortifying efforts to improve R&D capability, including collaborating with overseas design teams for seasonal collections and local universities for fabrics research.
• Enterprises with considerable liquid assets are setting up sales and product development offices in key markets. Apart from being able to speed up transactions, doing so allows them to release targeted designs.
• The move from low-end to up scale production is expected to carry on through 2010. Basic models now account for roughly 40 percent of total exports. This share is expected to fall further in the months ahead.
• In addition to the upmarket shift, several companies are bolstering their ODM lines and some are introducing in-house brands to overseas clients.
• Despite the emphasis on upscale, ODM and OBM models, many makers are maintaining relationships with domestic customers. Doing so ensures production lines will not be left idle in case similar financial difficulties are encountered in coming months.
• Although some suppliers are exploring opportunities in emerging economies, businesses will continue targeting traditional destinations. Among the respondents in Global Sources’ survey, 87 percent indicated that the EU and North America will remain their primary export markets.
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The above is extracted from the Executive Summary of China Sourcing Report: Women's Wear
To learn more about this report, visit: http://www.chinasourcingreports.com/csr/womens-wear
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