China, the world's largest
denim garment supplier, produced 30 percent of total global output
in 2004.
That year, the country's 4,000 manufacturers shipped US$1.8 billion
worth of denim garments, mainly to the United States and Europe.
Exports were up 10 percent over the previous year. They are forecast
to grow an additional 20 percent in 2005 as demand for China-made
denim garments is expected to increase significantly in the months
following quota elimination.
Exports in 2005 could even be higher than the 20 percent projected
growth, but suppliers are wary of being overly optimistic given
the threat of US safeguards and recently imposed export taxes.
The following are some of the
key trends and issues we see in China's denim garment export
manufacturing industry:
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The future of some denim garment suppliers
in China is uncertain. Increased competition and possible
US safeguards may significantly impact companies that embarked
on capacity expansions. These companies might not be able
to recover their investments in additional machinery, which
they purchased to boost capacity and become more competitive. |
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Small suppliers that focus on low-end production
will be the most affected by the new government-imposed
export tax. In the keenly competitive free-market environment,
raising prices to compensate for lost profits could translate
to lost orders. |
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Many low-end suppliers are moving up the
value chain, focusing production on midrange and even high-end
denim garments. These suppliers are investing more in R&D
in order to develop more upscale products. |
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These factors have also led many midsize
companies to vertically integrate production and improve
manufacturing efficiency. Most large companies already conduct
most, if not all, production processes in-house. Doing so
has given these large companies a little more room to absorb
unforeseen additional costs, such as export taxes. |
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Nearly all denim garment manufacturers in China produce jeans,
and most of them also offer shorts, skirts, dresses and shirts.
All of the companies featured in this report offer jeans as their
main product line. At some companies, jeans account for about 90
percent of total production.
Jeans and shorts account for 64 percent of the denim garment
exports by suppliers in this report. Jackets make up 16 percent,
skirts and dresses 13 percent and shirts 7 percent.
The Products & Prices section explains the differences among
low-end, midrange and high-end denim garments in each product category,
including price ranges. The Manufacturing module discusses the different
washing methods done at the factories and reviews quality standards
followed by China suppliers. The fabrics section details fabric
weights and fiber blends used by suppliers and how the use of functional
fibers affects product performance and price.
And more... To see the full Executive Summary order now.
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