April 8, 2013Procurement Consulting – Brickwork Sourcing

Chinese Apparel AutocracyChinese Apparel Autocracy

Brickwork India (Confidential)

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The Chinese apparel market is currently being dominated by the women’s wear segment.

In China the Zhejiang region accounts for the maximum number of apparel clusters, followed by Jiangsu and Guangdong.

There was reduction in both the Chinese textile sector’s gross industrial output (18.8 percent) as well as China’s textile export rate (25 percent) during the first six months of 2012.

According to statistics, there are more than 100,000 garment manufacturers employing over 10 million people in China.

According to a new research study by RNCos, the Chinese apparel market is estimated to grow at a CAGR of 7% during 2012-2016 and it has been estimated that the country’s apparel market was worth 138 billion USD in 2012.

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Current Scenario

The domestic market for apparel in China has been growing at an astoundingly high rate whereas the overseas demand is in decline.

Factors which might play a major role in the future include increasing foreign player participation; rising investments and domestic player’s expansion.

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The Future Road

Brands such as H&M, Gap, Uniqlo and Zara are opening more new outlets in China.

Several leading fast fashion apparel players are expanding their focus from first tier cities such as Shanghai and Beijing to lower tier cities across China.

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Growth Drivers and Opportunities

Market Potential

Based on the current market trends and the increasing number of fashion conscious youth, the growth of the local apparel industry in China will continue.

Brickwork Sourcing provides end-to-end procurement research and consulting services to clients from all major continents. It specializes in assisting clients with low cost country sourcing as well as Indian market entry assessments.

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13 April 2023

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