garment exports from China have been decreasing over
the past couple of years and are expected to
continue declining through 2007. In spite of this,
the country continues to lead global exports of the
According to statistics from the United Nations,
China manufacturers captured a 64 percent share of
world leather garment exports in 2005. Decreasing
overseas shipments, however, are resulting in
consolidation of the industry and a shift to other
markets and product lines.
In the first eight months of 2006, leather
garment exports from the country dropped 24 percent
to US$1 billion and 21 percent to 28 million pieces,
compared with shipments made in the previous
corresponding period. Exports are anticipated to
continue falling by at least 10 percent in 2007.
More than 80 percent of the country's leather
garment exports are shipped to OEM and ODM buyers,
with the balance sold under suppliers' own brands.
Russia is the largest importer of China-made
leather garments, purchasing more than 12 million
pieces worth US$984 million in 2005. This
constitutes about 43 percent of China's total
exports in the line.
The US is the second-largest importer with
shipments totaling 21 million pieces at a value of
are some of the key trends we see in China's
leather garments industry:
|The industry is expected to
consolidate further within the next two
years. Low demand, rising costs and the
changing business environment have made it
difficult for smaller companies to compete
against midsize and large suppliers.
|Many suppliers will
implement minimal price increases over the
next two years. But companies are expected
to raise prices significantly once the
|An increasing number of
companies that used to focus on Russia are
now expanding to the US and the EU. Stricter
regulations in Russia have resulted in
declining exports, especially from
manufacturers in north China.
|More suppliers are also
expanding their product lines. Some
companies are offering products made from
off-cuts such as leather bags, while others
are diversifying into other apparel lines,
including denim and knitwear.
This report covers jackets, coats, skirts and
pants made of genuine and synthetic leather.
The Products & Prices section in this report
details the features and price ranges of leather
garments made in China. Trends in material types and
finishes are discussed in the R&D/ Design section.
The Manufacturing section explains the processes
involved in the production of leather garments and
how these differ in small and large companies.
The Industry Overview analyzes the country's
supplier base, highlighting the key characteristics
of small, midsize and large makers.
The majority of leather garment suppliers in
China are privately owned and a few are
foreign-invested. Reflecting the industry structure,
80 percent of suppliers featured in this report are
China-owned and 19 percent are foreign-invested.
Production is concentrated in the provinces of
Hebei, Zhejiang, Shandong and Guangdong, which
together account for 74 percent of all leather
garments exported from China.
The majority of companies in this report are from
these main manufacturing centers, with 38 percent
from Zhejiang, 16 percent based in Guangdong, 13
percent from Hebei and 12 percent from Shandong.
And more... To see the full Executive Summary