| China is
the world's leading supplier of home textiles, with
exports in 2004 rising 24 percent to reach $4.7
billion. The elimination of quotas on certain home
textile products in January 2005 helped accelerate
export growth even further. Overseas shipments in
the first five months of 2005 amounted to $2.2
billion soaring 40 percent year-on-year.
However, the steep rise in exports raised an
alarm in the US and the EU, resulting in safeguard
actions from the two regions. While China agreed to
limit exports of bed and table linen to the EU, the
US has begun investigating the surge in shipments of
drapery. If the quotas are reinstated, the limits
could be determined by the last quarter of the year.
Similar action on bed linen is also possible from
the US, as exports in the line increased by 77.6
percent in the period January to May 2005 from a
year ago.
| The following
are some of the trends we see in China's
home textiles export industry: |
| • |
Embargoes on exports to the
EU will not greatly affect the industry, as
the region accounts for only 14 percent of
total home textile exports from China.
However, limits on shipments to the US,
China's top export market for home textiles,
could slow the industry's growth rate. |
|
| • |
Many suppliers will raise
prices in coming months. However, most will
limit the increase to 10 percent, mainly
because of competition in the industry. Some
companies will even drop export prices,
although by only about 5 percent. |
|
| • |
Many China makers have
started shifting emphasis to alternate
markets in anticipation of the export
restrictions. Shipments to Japan and
Australia, therefore, should rise in the
next six to 12 months. Some companies have
also started to increase sales to the
domestic market. |
|
| • |
Although OEM orders will
continue to dominate production, many
suppliers will enhance their in-house R&D
capability in order to distinguish
themselves from other makers. |
|
| • |
Suppliers will use more
environment-friendly materials and
functional fabric, especially for bedding
and towels. These include antimicrobial,
hypoallergenic and nonflammable fabric, and
those made of natural fibers such as
soybean. |
|
China's home textile exports are dominated by
bedding, towels, table linen and drapery. Bedding,
the largest line, totaled US$2.9 billion in exports
in 2004 posting a year-on-year growth rate of 52.6
percent. These figures exclude quilted products. The
second largest export category, towels rose to
US$1.2 billion clocking a 16.5 percent growth rate,
while drapery exports amounted to US$912 million,
increasing 40 percent. Table linen raked in US$372
million worth of exports, growing moderately by 20.7
percent.
These four product categories are also the scope
of this report. The Products & Prices section
discusses the features and prices of these major
home textile types. The R&D/Design module details
the steps being taken by companies to improve
functionality.
Production and QC testing procedures in a typical
home textile factory are discussed in the
Manufacturing section.
With more than 3,000 small, midsize and large
suppliers, the home textiles industry in China is
diverse and multifaceted. While most makers can
produce several home textiles, many specialize in
certain products. The Industry Overview section in
this report elaborates on the industry composition,
highlighting the key advantages of sourcing from
different types of suppliers.
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