China accounted for approximately
60 percent of the world's output of sleepwear in 2005. More than
10,000 exporters of sleepwear shipped out US$1.6 billion worth of
the products in the same year.
As with most garment industries in China, sleepwear makers enjoyed
significant growth in the first few months after the WTO textile
quotas were eliminated. Export volume in the first two months of
2005 grew by 46 percent and sales, 29 percent, compared with the
previous corresponding period. Exports from January to November
2005 to the US alone were 231 percent more than total outbound shipments
to the country in 2004.
Shortly after the US and EU filed safeguard petitions, exports
began to drop and average prices started to climb. However, an agreement
between these countries and China late last year has eliminated
the possibility of restrictions for shipments of sleepwear. Government-imposed
export taxes were also removed in December.
These developments have affected suppliers' production strategies
for the year, with many taking a cautious attitude toward expansion,
and exploring other options to generate more overseas orders.
The following are some of the
key trends we see in China's sleepwear industry in response
to this situation:
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Suppliers are expected to produce more
upscale models in coming months. The threat of possible
safeguards, export taxes and higher operating expenses are
the factors that have contributed to this upmarket shift.
The growth experienced by the midrange and high-end makers
is propelling many companies to venture into these segments
as well. |
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Higher material and labor costs continue
to be a challenge for most makers, with 46 percent of companies
in this report planning to raise product prices by up to
10 percent in coming months. However, intense competition
in the line is keeping price movements at a minimum, with
the majority planning to keep prices stable. |
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More suppliers will invest in automated
machinery and vertical integration to improve efficiency
and allow for greater design variety. Some companies are
purchasing weaving and knitting machines to produce part
of their fabric requirement in-house. |
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Women's pajama and shorts sets will continue
to dominate sleepwear exports from China, followed by women's
nightgowns and nightshirts. |
China makers can offer most types of sleepwear for men and women,
but most focus on the latter.
More than 80 percent of suppliers featured in this report produce
all the styles of sleepwear for export, and more than 90 percent
have women's styles as their main line.
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