| China's US$1
billion hat and cap industry is gearing up for increased
demand as more overseas buyers shift their sourcing to the
country's nearly 3,000 export suppliers. The lifting of
US quotas on cotton and polyester hats and caps is also
a factor behind steadily growing demand.
In 2004, total outbound shipments increased 22.7 percent
from 2.7 billion to 3.4 billion pieces. The US and the European
Union are the country's top export markets.
One of the biggest challenges facing China's labor-intensive
hat and cap industry today is the increasing cost of production.
Higher material prices and rising worker salaries pushed
total manufacturing and operating costs up by as much as
30 percent last year.
| The following are some
of the key trends we see in China's hat and cap
industry: |
|
The majority of hat and cap makers
will be significantly increasing capacity to meet
overseas demand. Most suppliers are building new
factories or expanding facilities, while smaller
companies are looking for more companies to subcontract
production to. |
|
|
Increasing production costs will
continue to be an issue of concern for hat and cap
makers in China. While about half of the suppliers
are keen on keeping export prices stable in the
next 12 months, the other half will definitely raise
quotes. |
|
|
OEM production will continue to
drive exports for the next few years. |
|
|
The US and EU will remain the country's
major destinations for hats and caps, while the
Middle East and Asia, Japan in particular, are emerging
markets. |
|
|
Sports caps will continue to dominate
exports because they are the easiest to produce.
Apart from this, sports caps are more versatile
and can be used for promotional purposes, sports
or as a fashion accessory. |
|
Suppliers in China export three types of hats and caps
sports caps and visors, fashion hats and caps, and winter
headwear. These are also the scope of this report.
Almost all hat and cap manufacturers produce sports caps,
and there are some that specialize in the line. More than
70 percent of suppliers featured in this report produce
all three kinds of hats and caps for export, and more than
50 percent have sports caps and visors as their main product
line.
The Products & Prices section in this report discusses
the main features of each hat and cap type and their price
ranges. It also explains the differences between low-end,
midrange and high-end products in each product category.
Product development and design focus are discussed in
the R&D/ Design section, while the Materials & Components
module details the main fabrics used by China makers.
The Manufacturing section lists the key steps in hat
and cap production and how these differ in small, midsize
and large companies.
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