China's booming T-shirt
and polo-shirt industry is poised for more than 30 percent export
sales growth in 2005.
At US$3.3 billion, exports in the first nine months of 2004 already
surpass 2003 shipments of US$3.2 billion. By the end of this year,
exports are expected to cross the US$4 billion mark.
Japan is China's largest export market, absorbing close to US$2.5
billion worth of T-shirts and polo-shirts from January 2003 to September
2004. South Korea and Australia are second and third, importing
US$447 million and US$361 million worth, respectively, in the same
period.
The garment and textile quotas that have been in place since
1974 limit exports to the United States and the European Union.
The US is currently China's fourth largest importer, absorbing some
US$268 million worth in the same 21-month span, while exports to
the EU amounted to US$559 million.
The quota system ends this year, and despite the possible safeguards
that might be imposed on China T-shirts and polo-shirts, suppliers
are already preparing for an exports surge post-quota.
The following are some of the
key trends we see in China's T-shirts and polo shirts exports
industry:
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Exports to the US and the EU are expected
to increase by 20 to 50 percent after quota removal. |
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Most suppliers will keep prices at current
levels. Prices should drop once per-piece quota fees are
removed, but suppliers still face rising raw-material and
production costs. In addition, uncertainties over possible
safeguards make suppliers wary of changing current price
strategies. |
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Suppliers are aware they cannot compete
on low prices alone and are boosting R&D capabilities
and moving up from low-end to midrange and high-end production
to remain competitive. |
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Production capacities are being expanded
to meet the anticipated increase in demand. Many suppliers
are building new factories. |
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China's more than 2,000 export manufacturers produce T-shirts
and polo shirts for men, women and children. About half of these
suppliers have direct export capability and the rest ship their
products through trading companies. This report focuses on men's
and women's designs and does not cover children's models. Most China
makers of men's and women's T-shirts and polo-shirts do not produce
children's models, and those that do usually offer these as a sideline.
T-shirts account for more than 90 percent of shipments, with
men's T-shirts taking up more than half the export share. More than
70 percent of suppliers' output is produced for OEM clients. China
suppliers manufacture T-shirts and polo-shirts for major fashion
retailers such as Wal-Mart and Kmart, and for sports brands Nike,
Reebok and Adidas. The remaining output carries suppliers' in-house
brand names.
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