Continued Growth in Apparel Exports
Despite increased cotton prices, complaints of labor shortages and mounting pressure to strengthen the value of its currency, China’s apparel exports to the United States rose to $32.6 billion for the period of April 2009 through March 2010.
This represents a 4.87% increase over the same period from 2008 to 2009.
Year-to-date exports through March 2010 saw a 13.77% increase compared to the same period last year.
Increased Market Share
Over the past seven years, China has more than doubled its share of apparel exports to the United States. In 2004, its market share stood at 15.85%. Through March 2010, its slice of exports was more than 38%.
Competition Not Even Close
China is so far ahead of the pack, that the combined exports of the next six largest exporting countries are $100,000 million less than China’s total.
No Choice but to Grow
Despite the global recession and the overall decrease of imported apparel — by 9.52% through the year ending March 2010 from all countries — China will feel additional pressure to increase its textile and apparel production capacities to meet U.S. and global demands as the recession gradually abates.
It will have no choice.
Countries such as Vietnam, Indonesia, Bangladesh and Cambodia — which are already filled to the brim — may share some of the burden. But they simply do not have adequate capacity to relieve China of its role in supporting increased demand.
Data source: Otexa
Kumar Kundanmal is a 20-year sourcing and production veteran who began his career in family owned apparel plants in Sri Lanka.
He has lived in Hong Kong, China and Bangladesh, during the course of which he developed expert knowledge of fabric, trim and apparel sourcing. Kumar moved to the United States in 1997 and has held strategic sourcing positions at VF Corp and Kellwood Company.
