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: |
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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. |
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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. |
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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. |
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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. |
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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. |
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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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