| China
accounted for approximately 30 percent of the
world's output of children's wear in 2004. The
elimination of quotas resulted in a 30 percent surge
in exports in the first four months of 2005.
However, it has also brought enormous challenges to
the industry, threatening to hinder growth.
After the two largest markets for China-made
children's wear, the US and the EU, imposed
safeguards on various types of apparel, China
suppliers have had to explore other options to stay
in business. Small companies producing low-end
apparel have been the worst hit, as many of them
work on thin profit margins and do not have the
resources to survive.
| The following
are some of the key trends and issues we see
in China's children's wear industry:
|
| • |
Many makers are trying to
boost exports to other regions, such as
Japan and the Middle East, in view of the US
and EU restrictions. Some large companies
are even moving production to other regions
in Asia or re-exporting via other countries. |
|
| • |
Some suppliers producing
low-end, high-volume garments are moving up
the value chain, focusing on the production
of midrange and high-end apparel. They are
increasing investments in design capability
to be able to offer more value-added
products. |
|
| • |
Even with increasing
production expenses due to rising material
costs, the export tax and labor shortage,
most suppliers will be keeping prices stable
in the next 12 months. |
|
| • |
Schoolchildren's apparel
will continue to dominate children's wear
exports from China, followed by toddlers'
apparel. |
|
Suppliers offer a range of styles in both these
categories, mainly because designs now follow adult
clothing trends. Suppliers in China export four
categories of children's wear — newborns' clothing,
babywear, toddlers' apparel and schoolchildren's
apparel. These are also the scope of this report.
Almost all children's wear manufacturers produce
apparel for schoolchildren, and there are some that
specialize in the line. More than 75 percent of
suppliers featured in this report produce all four
categories of children's wear for export, and almost
30 percent have schoolchildren's clothing as their
main line.
The Products & Prices section in this report
discusses the main features of each category of
children's wear and its price ranges. It also
explains the differences among low-end, midrange and
high-end models in each product category.
Product development and design focus are
discussed in the R&D/design section, while the
Materials & Components module details the main types
of fabric and accessories used by China makers.
The Manufacturing section lists the key steps in
children's wear production and how these differ in
small, midsize and large companies.
The majority of children's wear companies in
China are locally owned, while a few are
foreign-owned. Reflecting this structure, 76 percent
of suppliers featured in this report are private
locally owned, while 23 percent are private
foreign-owned or invested.
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