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Web Exclusive | September 2016

China still rules the roost in apparel export

Despite rising labour costs, RMB appreciation and lower demand from export markets, China’s textile and apparel industry are still growing at a healthy pace and looks to dominate the global apparel sector, both as a producer and a consumer for years to come. China Textile and Apparel Industry Report 2016-2019 reveals that the country will continue to remain the leading textile and apparel sourcing country. In immediate future there is no one to overtake China in terms of scale, infrastructure, efficiency, expertise and stability. 

For decades, China has been a global leader in textiles and apparel supply chain however, of late the country has been facing major challenges regarding market demand and supply. The global supply chain dynamics is changing across the world as new trade policies are coming up and the emerging sourcing hubs in the global map. To retain its lead in the global demand supply chain, China, now has to deal with various challenges which include rising labour costs and scarcity of skilled labour in certain areas.China braces to cope with new competition

Internationally global marketers are shifting locations of manufacturing looking for lower cost and cheaper labour. Although even few decades back China was a dream destination for manufacturers for skilled labour at low cost, but the story is different now. The generation of skilled, low cost labour in China is gone. The younger generations of china’s labour force are better educated and skilled. Moreover many were born at the times of “one child per family” policy in China. The mindset of the new generation of work force is quite different and also more demanding. Adding to this China is constantly facing labor shortage in coastal provinces seriously.
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