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THE CHINESE MARKET
FOR CLOTHING
THE CHINESE MARKET FOR CLOTHING
Abstract for trade information services
ID=42692
2011
SITC-84 CHI
International Trade Centre (ITC)
The Chinese Market for Clothing.
Geneva: ITC, 2012. xi, 92 p. (Technical Paper)
Doc. No. SC-11-212.E
Survey on Chinese market for clothing - describes the structure and characteristics of the domestic
Chinese market for clothing; provides an analysis of the tariff structure of imports by product group;
outlines special import regulations, customs procedures, transport, as well as requirements relevant to
packaging, labelling, standards, and ethical trading; examines the market potential, the consumer
preferences and behaviour; provides an overview of the distribution channels, the major brands, the
procurement practices including the use of e-commerce and ICT procurement; highlights the key
players in China's textiles and garment market, the possibilities for cooperation along the value chain,
and the existing national support schemes; appendices include contacts details of sector related
companies in China.
Descriptors: Clothing, Standards, Packaging, Distribution, Procurement, Electronic Commerce,
Consumer Behaviour, Market Surveys, China.
For further information on this technical paper, contact Mr Matthias Knappe, ([email protected])
English
The International Trade Centre (ITC) is the joint agency of the World Trade Organization and the United
Nations.
ITC, Palais des Nations, 1211 Geneva 10, Switzerland (www.intracen.org)
Views expressed in this paper are those of consultants and do not necessarily coincide with those of
ITC, UN or WTO. The designations employed and the presentation of material in this paper do not
imply the expression of any opinion whatsoever on the part of the International Trade Centre
concerning the legal status of any country, territory, city or area or of its authorities, or concerning the
delimitation of its frontiers or boundaries.
Mention of firms, products and product brands does not imply the endorsement of ITC.
This technical paper has not been formally edited by the International Trade Centre.
Digital image on the cover: © ITC
© International Trade Centre 2011
ITC encourages the reprinting and translation of its publications to achieve wider dissemination. Short
extracts of this technical paper may be freely reproduced, with due acknowledgement of the source.
Permission should be requested for more extensive reproduction or translation. A copy of the reprinted or
translated material should be sent to ITC.
ii
SC-11-212.E
THE CHINESE MARKET FOR CLOTHING
Acknowledgements
The International Trade Centre (ITC) thanks the following for their contribution to this technical paper:
Qingliang Gu, Author, Consultant
ITC Staff:
Matthias Knappe, Senior Officer and Programme Manager, Cotton, Textiles and Clothing
Natalie Domeisen-Schibilia, Senior Public Information Officer
Isabel Droste, Publications Assistant
Kathryn Della Corte, Senior Secretary
Kedsenee Premprung, Project Assistant
Vicky Hagen, Document Formatter
SC-11-212.E
iii
THE CHINESE MARKET FOR CLOTHING
iv
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Contents
Acknowledgements
Abbreviations
iii
xi
1.
Executive summary
1
1.1. Background
1
1.2. The scale and characteristics of China’s clothing market
1
1.3. Key players in China’s clothing market
2
1.4. Market entry strategies of developing countries and LDCs
2
The structure and characteristics of the domestic market: a macro view
3
2.1. Market size
3
2.1.1.
Population and GDP growth
3
2.1.2.
Growth of income and clothing consumption
3
2.1.3.
Retail sales in the domestic market
5
2.1.4.
Market characteristics: dualism in consumption patterns
7
2.
2.2. Supply by domestic and overseas industry
3.
9
2.2.1.
Menswear
10
2.2.2.
Womenswear
10
2.2.3.
Children’s wear
10
2.2.4.
Casual wear
10
2.2.5.
Sportswear
11
2.2.6.
Lingerie and underwear
11
2.3. National apparel clusters
11
2.4. Import developments over the last five years
12
2.4.1.
Growth of imports
12
2.4.2.
Imports from LDCs
12
An analysis of the tariff structure of imports by product group
14
3.1. Tariff system
14
3.2. Tariff structure for textiles and clothing
14
3.3. Tariff systems for textiles and clothing from LDCs
15
SC-11-212.E
3.3.1.
Conventional tariff rate
16
3.3.2.
Special preferential tariff rate
18
v
THE CHINESE MARKET FOR CLOTHING
4.
Non-tariff requirements in the market
19
4.1. Special import regulations
19
4.1.1.
Import license
19
4.1.2.
Import quotas
19
4.1.3.
Tariff rate quotas (TRQs)
20
4.2. Customs procedures
5.
4.2.1.
Customs procedures
20
4.2.2.
Customs valuation
21
4.2.3.
Pre-shipment inspection requirements
21
4.3. Freight forward and transport requirements
21
4.4. Packaging, marketing and labelling requirements
22
4.5. Standards and other technical requirements
22
4.5.1.
National general safety technical code for textile products (GB 18401)
23
4.5.2.
National standard of China, cotton – upland cotton (GB 1103)
24
4.5.3.
National standard of the P.R.C., environmental protection control standard
for imported solid waste as raw materials – waste and scrap of fibres
24
4.5.4.
Announcement No. 177 of 2005 made by the Administration of Quality
Supervision, Inspection and Quarantine (AQSIQ)
24
4.5.5.
AQSIQ Notice on implementing the administrative measures on registration
of overseas supplying enterprises exporting cotton to China
24
4.5.6.
National Standard of China, seed of economic crops – Part 1: fibre species
26
4.5.7.
National standard of China, instructions for use of products of consumer
interest – part 4: textiles and apparel
26
4.5.8.
National standard of China, conventional moisture regains of textiles
26
4.5.9.
National standard of China, directions for use and labels for carpets
27
4.6. Specific ethical trading requirements
27
Expected market development (market prospects)
27
5.1. Market potential
27
5.1.1.
Diversity of consumer group
27
5.1.2.
The growing purchasing power
28
5.1.3.
The process of urbanization
28
5.2. Consumer behaviour
6.
vi
20
29
5.2.1.
The change of lifestyle
29
5.2.2.
Diversification of demand
34
5.3. Channels and distribution
34
The domestic garment market: a micro view
35
6.1. The players in the market
35
6.1.1.
Garment retailers
35
6.1.2.
Major brands
37
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6.2. Apparel procurement practices
6.2.1.
Global sourcing for the Chinese market
39
6.2.2.
Vendor selection
39
6.2.3.
Procurement procedure
41
6.3. Use of e-commerce and ICT procurement
42
6.3.1.
Information platform and database
42
6.3.2.
ERP and MRP
47
6.4. Consumer preferences
7.
8.
9.
39
50
6.4.1.
Growing needs for natural fabrics
50
6.4.2.
Country origin preference and price consciousness
51
6.4.3.
Quality and comfort
52
6.4.4.
Consumers’ apparel preferences in three cities
53
Cases: The key players in China’s textiles and garment market
56
7.1. Shenzhou Knitting Co., Ltd
56
7.2. Challenge Knitting Co. - Industry upgrading
58
7.3. IKEA
59
7.4. Zara in China
61
7.5. Shanghai Metersbonwe Fashion and Accessories Co., Ltd
63
Possibilities for cooperation along the value chain
66
8.1. The textile complex and the roles of LDCs
66
8.2. Market segments and LDC targets
67
8.3. Competitors or co-operators
67
8.4. Cotton, yarn and fabrics
67
8.4.1.
Cotton
67
8.4.2.
Cotton yarn
69
8.4.3.
Cotton grey fabrics
70
8.4.4.
Hemp fibre
72
Existing national support schemes
73
9.1. Cooperation with African countries
73
9.2. Cooperation with South Asian countries
74
9.3. Barriers affecting the cooperation
74
9.4. Case study: Bangladesh RMG industry
74
10. Recommendations for developing countries and LDCs
75
10.1. Government policies and strategies
76
10.2. Industry strategies
77
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THE CHINESE MARKET FOR CLOTHING
Appendix I
Contacts for garments companies
79
Appendix II Retailers for garments
89
Appendix III Institutions
91
Table 1.
Table 2.
Table 3.
Table 4.
Table 5.
Table 6.
Table 7.
Table 8.
Table 9.
Table 10.
Table 11.
Table 12.
Table 13.
Table 14.
Table 15.
Table 16.
Table 17.
Table 18.
Table 19.
Table 20.
Table 21.
Table 22.
Table 23.
Table 24.
Table 25.
Table 26.
Table 27.
Table 28.
Table 29.
Table 30.
Table 31.
Table 32.
Table 33.
Table 34.
Table 35.
Table 36.
Table 37.
5
6
6
8
8
9
9
11
11
12
13
15
16
17
18
20
22
23
25
36
40
40
43
44
45
52
60
62
66
68
69
70
70
71
71
72
72
viii
Chain retail enterprises, 2009
Chain retail enterprises by sector and business category, 2009
Comparison of total retail sales of consumer goods in 31 provinces
Consumer price index and retail price index, 1990–2009
Consumer price index for garments, 2001–2009
Savings deposits
Leading apparel brands in China
Market share of domestic casual brands, 2009
Garment production volume
Growth of China’s textile and clothing imports, 2000–2008
China’s imports of textiles and clothing from LDCs, 2001–2009
China’s tariff structure for textiles and clothing
Countries to which China applied non-MFN tariff, 2010
Detailed list of clothing products with duty free access
Summary analysis of the Chinese preferential tariff
China’s TRQs for cotton, wool and woollen tops, 2004–2010
China’s preferential rules of origin related to LDCs
WTO TBT notifications, 2002–2010
Cotton imports, 2000–2009
Hypermarkets in China, 2009
Comparative advantages of Chinese and LDC vendors
The priority of market demand
Leading textile and garment enterprises in China, 2009
Main trading platforms in China
Some Chinese garment retailers
Consumer attitudes toward garments
Textile imports of IKEA in China
Main Inditex clusters (overseas)
Textile imports, 2000–2008
Cotton consumption, 1995–2009
China’s imports and exports of cotton yarn, 2001–2008
China’s imported cotton yarn, 2009
China’s exports of cotton yarn, 2009
China’s imports and exports of cotton fabrics, 2001–2008
China’s imported greige fabric, 2009
Exporters of greige fabric to China, 2009
China’s hemp fibre imports by country, 2008
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Figure 1.
Figure 2.
Figure 3.
Figure 4.
Figure 5.
Figure 6.
Figure 7.
Figure 8.
Figure 9.
Figure 10.
Figure 11.
Figure 12.
Figure 13.
Figure 14.
Figure 15.
Figure 16.
Figure 17.
Figure 18.
Figure 19.
Figure 20.
Figure 21.
Figure 22.
Figure 23.
Figure 24.
Figure 25.
Figure 26.
Figure 27.
Figure 28.
Figure 29.
Figure 30.
Figure 31.
Figure 32.
Figure 33.
Figure 34.
SC-11-212.E
GDP and per capita GDP, 2001–2009
Per capita income of urban and rural households, 2001–2009
Per capita annual consumption expenditure on clothing
Retail sales of clothing in China, 1995–2008
Urban population, 2001–2009
Comparison of consumer living conditions in Beijing, Shanghai and Guangzhou
Comparison of the importance of leisure activities in Beijing, Shanghai and Guangzhou
Comparison of the importance of leisure activities in different income groups
Comparison of awareness of fashionable lifestyle in Beijing, Shanghai and Guangzhou
Comparison of awareness of fashionable lifestyle in different income groups
Comparison of fashion information channels in Beijing, Shanghai and Guangzhou
Comparison of fashion information channels in different income groups
Comparison of consumer self-evaluation in Beijing, Shanghai and Guangzhou
Comparison of consumer self-evaluation in different income groups
Main foreign apparel brands in the Chinese market
Main local apparel brands in the Chinese market
Criteria for vendor evaluation
Material procurement procedure
Correlation between level of computerization and quick response capability
Correlation between level of computerization and profitability
Consumer fabric preferences in Beijing, Shanghai and Guangzhou
Consumer understanding of environment-friendly textiles in Beijing, Shanghai
and Guangzhou
Customer evaluation criteria for garment attributes
Price preference for dresses in Beijing, Shanghai and Guangzhou
Acceptable price level for T-shirts in Beijing, Shanghai and Guangzhou
Acceptable price level for jeans in Beijing, Shanghai and Guangzhou
Preferred purchasing channels in Beijing, Shanghai and Guangzhou
IKEA in China sales, 2003–2008
IKEA purchasing per region, 2009
IKEA procurement and logistics processes
Metersbonwe’s purchasing procedure
Cotton production in China, 1978–2008
China’s imports and exports of cotton, 1985–2008
China’s flax and jute imports, 1992–2008
4
4
5
7
28
29
30
30
31
31
32
32
33
34
38
38
41
42
48
49
50
51
53
54
54
55
55
59
60
61
65
67
69
73
ix
THE CHINESE MARKET FOR CLOTHING
x
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THE CHINESE MARKET FOR CLOTHING
Abbreviations
The following abbreviations are used:
GPNs
APTA
AQSIQ
CAFTA
CNTAC
CPI
CSR
FAO
FOCAC
FTA
ICT
IPPC
ISO
ISPM
LDCs
MFN
MOFCOM
NBSC
NDRC
PBOC
R&D
RMB
TRQs
WTO
SC-11-212.E
Global production networks
Asia–Pacific Trade Agreement
Administration of Quality Supervision, Inspection and Quarantine
China-ASEAN Free Trade Area
China National Textile and Apparel Council
Consumer price index
Corporate social responsibility
United Nations Food and Agriculture Organization
Forum on China–Africa Cooperation
Free trade area
Information and communications technology
International Plant Protection Convention
International Organization for Standardization
International Standards for Phytosanitary Measures
Least developed countries
Most favoured nation
Ministry of Commerce
National Bureau of Statistics of China
National Development and Reform Commission
People’s Bank of China
Research and development
Chinese renminbi
Tariff rate quotas
World Trade Organization
xi
THE CHINESE MARKET FOR CLOTHING
1.
1.1.
Executive summary
Background
During the first decade of the new millennium, China’s textile and clothing industry has been undergoing
dramatic changes, and so has the market.
When China became a WTO Member in 2001, it committed to lowering its tariff rates, opening its domestic
retail and distribution market, granting trading rights to qualified enterprises and individuals, and providing
access to foreign-funded retailers interested in doing business in China’s second-tier cities. So far, China
has practised all these commitments.
Since the WTO Agreement on Textiles and Clothing (ATC), which replaced the Multifibre Arrangement
(MFA), was phased out at the end of 2004, China has accelerated its integration into global production
networks (GPNs).
Now China is not only the biggest producer and exporter of textiles and clothing, accounting for 50% of
world’s total fibre production and 58% of world textiles and clothing trade in 2009, but also a potential
buyer and importer, backed by a fast-growing market.
In 2008, influenced by the financial tsunami, the world trade in textiles and clothing declined sharply,
consequently affecting China’s industry. However, domestic clothing retailing performed well and enjoyed a
18.8% increase in 2009 compared with 2008. Furthermore, government policy to stimulate domestic
demand will certainly enlarge the market and provide opportunities for the development of the industry in
future.
The sustained opening-up and relaxing of entry regulations into China’s domestic market, which can be
seen by its rising imports, have been beneficial not only to the world market, but also to China’s own
economy. Chinese consumers today are provided with many more choices within their home market and
are exposed to fashionable value-added imports.
1.2.
The scale and characteristics of China’s clothing market
China is involved with almost all activities in the textile and clothing industry value chain. It exports textile
products ranging from raw materials, fibre (natural and manmade) and fabrics to ready-to-wear, as well as
purchasing cotton, wool, yarn, fabrics and textile machinery from others.
With a population of 1.3 billion and rapid economic growth, China offers the world potentially the largest
consumer market for clothing and home textiles. China’s large population, with its increasing textile and
clothing consumption per capita year by year, also provides a lucrative business opportunity for the rest of
the world.
China’s per capita fibre consumption increased from 4.1 kg in 2000 to 20.3 kg in 2008. Though the
average per capita clothing consumption is low, with its large population and an economy that is likely to
continue to grow in the coming years, China provides a promising market with unprecedented potential to
many exporters.
China is in the process of urbanization and industrialization, and is gradually moving towards being a
market-based economy. During this transitional period, large numbers of people previously living in rural
areas have become urban residents. This gives a unique dual structure to its current consumer market. On
the one hand, demand for branded luxury goods is increasing quickly, while on the other hand, major
suppliers meet the needs of the medium and low-end markets. Consumers in the medium and low-end
market are more sensitive to prices, and fast fashion with lower prices has become popular in recent years.
In 2009, China’s per capita GDP reached US$ 3,678. But if one takes into consideration a probable
appreciation of the RMB, the Chinese consumer will have even stronger purchasing power in the near
future. The Chinese consumer’s lifestyle is undergoing tremendous changes, and the domestic clothing
market is becoming more versatile, fashionable and segmented. With demand for comfort dressing
increasing, more and more consumers today prefer quality clothing made of pure cotton and other natural
SC-11-212.E
1
THE CHINESE MARKET FOR CLOTHING
fibres. Geographically, 80% of China’s apparel manufacturing capacity is clustered around the coastal
area. Consumption of fashion products is centred in Yangtze River Delta, the Pearl River Delta, and the
Bohai Gulf Rim, but is gradually expanding into inland China.
1.3.
Key players in China’s clothing market
On the whole, the high-end domestic clothing market in China is dominated by brands of European origin
and other imported products, such as Giorgio Armani, Cerruti 1881, Hugo Boss, Dunhill, Chanel, Dior,
Ermenegildo Zegna and Salvatore Ferragamo. The middle and low end of the market has a product mix of
foreign and domestic brands, with most of the goods being manufactured in China. A small portion of these
products are sourced from developing countries and least developed countries (LDCs), and imports from
LDCs are growing steadily. To be specific, brands such as Nike, Adidas, Tommy Hilfiger, Zara and H&M
are sourced from developing countries and LDCs. For example, in Zara’s stores in Shanghai, over 90% of
stock-keeping units (SKUs) are imported, with Bangladesh, Egypt, Morocco, Portugal, Spain, Turkey, and
Viet Nam and being the main import sources. Bangladesh, Cambodia, India and Indonesia are also
important procurement target countries. Shoes made in Viet Nam and Spain account for a high proportion
in Zara. New H&M stores in Shanghai attracted thousands of consumers when they opened in April 2007
Of H&M’s SKUs, 75% are imported, with Bangladesh, Cambodia, India, Indonesia and Turkey being the
main source countries. Most of H&M’s shoes, hats and scarves are procured in China. The situation for
C&A is similar. Nevertheless, China’s clothing industry still possesses great competitive advantage in
terms of labour cost, lead time, vertical integration of the industry, the variety of products, and political
stability from a Chinese perspective.
Giant retailers, such as Wal-mart and Carrefour, are also expanding their business in China.
Many multinational retailers, international fashion brands, and overseas trading firms presently find it
profitable to manufacture clothing in various developing countries and LDCs and export to China for sale.
With global sourcing, they benefit from proximity to the market, economies of scale and low processing
costs.
However, relatively few local Chinese retailers, importers and brand owners choose to import or source
clothing from other developing countries or LDCs, because of a perceived level of risk involved with this.
The other factor is a lack of supply chain management skills in these countries.
Home retailers are importing more and more luxury brands from developed countries to meet high-end
demand in China.
1.4.
Market entry strategies of developing countries and LDCs
In addition to the advantages of low cost and price, exporting countries should take into account the
demand and preferences of consumers in China and the requirements of Chinese buyers. They should
improve their competitiveness by utilizing advantages such as market proximity and trade preferences, in
order to meet the purchasing criteria and priorities of the buyers, which mainly include: social
accountability, environmental protection, processing and transport costs, delivery time, flexibility of order
quantity, quality, production capacity, product development and design, after-sales service and product
assortment.
The new operational models of international retailers and brand operators in the Chinese market, such as
Zara and H&M, have created new standards for the multitude of suppliers.
LDC exporters have to understand these trends in the market well in order to successfully gain market
share and be competitive. Due to the homogeneity of LDC garment industry products, competition among
them is intense. However, since international brands such as Zara, H&M, Adidas and Tommy Hilfiger are
increasing their sourcing through GPNs for goods to be sold in China, opportunities exist for LDCs to enter
this market by serving these buyers. Therefore, LDC suppliers should:
2
SC-11-212.E
THE CHINESE MARKET FOR CLOTHING
•
Differentiate their products;
•
Take advantage of the free trade, zero tariff scheme agreement and integrate the industrial chain
vertically and horizontally to make the pipeline more effective and hence enjoy cost savings;
•
In light of the changes in market and fashion trends, pay more attention to non-cost factors such as
one-package buying, the application of Information and Communications Technology (ICT) in design
and pattern making, speeding up the supply of samples, providing a variety of products and
services, and enhance credit;
•
Make good use of their proximity and accessibility to the market;
•
Update their product/process/quality through advanced facilities, online systems, digital technology
etc., and improve management levels.
Governments of exporting countries should take measures to:
•
Strengthen the infrastructure, enhance efficiency of transportation and communication, and speed
up customs clearance;
•
Conduct training and education programmes for workers and managers;
•
Cooperate inter-regionally and intra-regionally;
•
Restructure textile complexes, integrate the value chain horizontally and vertically, and reinforce
supporting industries;
•
Maintain political and economic stability.
2.
The structure and characteristics of the domestic market: a macro view
2.1.
Market size
2.1.1.
Population and GDP growth
China is one of the largest consumer markets in the world. At the end of 2009, China has a population of
1,334.74 million, a net increase of 6.72 million people over the end of 2008.
China’s GDP rose to RMB 34.05 trillion in 2009, with a 9.11% increase from the previous year. Even
though affected by economic recession, GDP per capita reached RMB 25,575 in 2009 (see figure 1). This
acceleration of economic growth will further stimulate apparel consumption and expand the potential of
China’s apparel market.
2.1.2.
Growth of income and clothing consumption
The per capita annual disposable income of urban households of 2009 reached RMB 17,175, much higher
than that of 2005, which was RMB 10,493. The per capita annual net income of rural households rose from
RMB 3,255 in 2005 to RMB 5,153 in 2009, another increase, although less dramatic (see figure 2).
As for the expenditure on clothing, that increased in line with the growing GDP and disposable income.
The per capita consumption expenditure on clothing of urban households rose from RMB 801 in 2005 to
RMB 1,284 in 2009. At the same time, the proportion of clothing expenditure in urban disposable income
dropped slightly from 7.63% in 2005 to 7.48% in 2009 (see figure 3).
China has already become the world’s biggest fibre consumer. The amount of fibre consumption per capita
increased from 14.87 kg in 2005 to 20.34 kg in 2008.
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3
THE CHINESE MARKET FOR CLOTHING
Figure 1. GDP and per capita GDP, 2001–2009
40000
34050.7
35000
31404.5
30000
26581
25000
21631.4
18493.7
20000
15000
10000
15987.8
13582.3
12336
12033.3
10965.5
10542
9398
8622
14185
25575
23708
20169
16500
5000
0
2001
2002
2003
2004
2005
Per capita GDP (RMB)
2006
2007
2008
2009
GDP (RMB billon)
Source: National Bureau of Statistics of China.
Figure 2. Per capita income of urban and rural households, 2001–2009
17174.7
18000
15780.8
16000
13785.8
14000
11759.5
12000
10000
8000 6859.6
8472.2
7702.8
9421.6
10493
6000
4000
2366.4
2475.6
2622.2
2936.4
3254.9
3587
4140.4
4760.6
5153.2
2000
0
2001
2002
2003
2004
2005
2006
2007
2008
2009
Per capita annual disposable income of city households
Per capita annual net income of rural households
4
SC-11-212.E
THE CHINESE MARKET FOR CLOTHING
Figure 3. Per capita annual consumption expenditure on clothing
1400
1284.2
7.78%
1200
7.67%
7.53%
7.29%
1000
800
600
4.17%
533.66
4.24%
686.79
4.21%
4.09%
8.00%
7.48%
7.00%
901.78
800.51
637.73
590.88
1165.91
7.67%
7.56%
7.39%
1042
7.63%
6.00%
4.68%
4.56%
9.00%
4.67%
4.45%
5.00%
4.51%
4.00%
3.00%
400
200
98.68
105
148.57
120.16
110.27
168.04
193.45
211.8
232.5
2.00%
1.00%
0
0.00%
2001
2002
2003
2004
2005
2006
2007
2008
2009
Per capita urban annual expenditure on clothing (RMB)
Per capita rural annual expenditure on clothing (RMB)
Share of clothing in per capita urban disposable income(%)
Share of clothing in per capita rural net income(%)
Note: According to the National Bureau of Statistics definition, ‘clothing’ includes garments, shoes, hats, accessories, and tailoring.
2.1.3.
Retail sales in the domestic market
In recent years, China has seen a relatively sustained development of retail sales. Total retail sales of
goods rose from RMB 6,717.7 billion in 2005 to RMB 13,267.8 billion in 2009, with an average annual
growth rate of 19%.
Retailing is becoming more and more important in China (see table 1) given an overview of retailing in
China; table 2 shows the diversity in sectors and business categories.
Table 1.
Year
Chain retail enterprises, 2009
Number of
head stores
Number of
stores
Total
Employees at Retail space at
Total sales
purchase
year end
year end
(billion yuan) value (billion
2
(1 000 persons)
(1 000 m )
yuan)
2005
1 416
105 684
1 601.0
86 875
1 258.8
1 073.5
2006
1 696
128 924
1 871.0
89 790
1 495.2
1 344.7
2007
1 729
145 366
1 861.9
100 440
1 775.4
1 591.7
2008
2 457
168 502
1 970.8
101 978
2 046.7
1 719.3
2009
2 327
175 677
2 108.8
118 092
2 224.0
1 934.4
Source: National Bureau of Statistics of China.
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THE CHINESE MARKET FOR CLOTHING
Table 2.
Chain retail enterprises by sector and business category, 2009
Employees
Number of
Retail space Total sales
Number of at year end
head
at year end
(billion
stores
(1 000
2
stores
(1 000 m )
yuan)
persons)
Item
Market total
By sector
2 327
175 677
2 109
118 092
2 224.0
1 934.4
Integrated retail
790
56 568
1 255
56 707
911.2
765.1
Food, beverages and
tobacco
179
9 105
53
789
25.4
20.9
Textiles, garments and
daily consumer articles
114
11 192
89
926
22.3
17.4
96
15 779
93
1 443
27.0
23.5
Supermarket
458
33 224
489
19 249
257.0
206.8
Hypermarket
134
2 493
327
18 448
244.4
194.2
Department store
105
5 304
239
13 384
249.8
206.1
1 203
82 704
753
60 753
1 337.4
1 214.6
268
24 075
161
2 471
69.7
54.7
Convenience store
By
business
category
Total
purchase
value
(billion
yuan)
Specialty store
Franchised store
Source: National Bureau of Statistics of China.
The eastern region outstrips the central and western regions
With over RMB 1,000 billion in retail sales, Guangdong, Shandong and Jiangsu are the top three
provinces, all three of them located in the coastal area. Zhejiang, which is also an eastern city, ranks
fourth. Henan, a central city with a large population, is in fifth place, but sales there are less than half of
those in Guangdong. Apart from Sichuan and Guangxi, none of the western cities are in the top 20.
However, some gaps are closing, and the rate of growth in the central and western regions is a little higher
than that in the eastern region. For example, Tibet has a growth rate of 20.5%, Shaanxi and Sichuan of
16.5%, and Hunan of 16.4%.
Table 3.
Comparison of total retail sales of consumer goods in 31 provinces
2009
Region
National total
Total retail sales of
consumer goods
(billion yuan)
2008
Growth rate
(%)
Total retail sales of
consumer goods
(billion yuan)
Growth rate
(%)
13 267.84
15.5
11 483.01
22.7
Eastern region
7 966.18
15.4
6 913.44
22.4
Central region
3 562.41
16.0
3 069.65
24.2
West region
1 739.27
16.0
1 499.91
22.4
Source: National Bureau of Statistics of China.
Note: The eastern region includes 12 provinces: Guangdong, Shandong, Jiangsu, Zhejiang, Liaoning, Hebei, Beijing, Shanghai,
Fujian, Guangxi, Tianjin and Hainan. The western region includes 10 cities: Sichuan, Shaanxi, Chongqing, Yunnan, Guizhou, Gansu,
Xinjiang, Ningxia, Qinghai and Tibet. The central region includes nine provinces: Henan, Hubei, Hunan, Anhui, Heilongjiang, Jilin,
Inner Mongolia, Shanxi, Jiangxi.
6
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THE CHINESE MARKET FOR CLOTHING
The urban regions outstrip the rural regions
Because rural residents have lower purchasing power, retailing has developed more slowly in rural areas
than in urban regions.
Retail sales of clothing
The worldwide financial tsunami during 2008 and 2009 brought about a considerable decrease in exports
of textiles and clothing. Nevertheless, domestic retail sales of clothing have increased continuously in
recent years, and the per capita consumption expenditure on clothing has grown constantly, showing the
remarkable potential of China’s domestic market.
Figure 4.
Retail sales of clothing in China, 1995–2008
900
800
700
600
500
400
300
200
100
0
1995
1996
1997
1998
1999
2000
2001
2002
2003
2004
2005
2006
2007
2008
Retail index of textiles, clothing and accessories
Per capita GDP index
Total retail sales index
Source: National Bureau of Statistics of China.
Note: According to the National Bureau of Statistics definition, ‘clothing’ includes garments, shoes, hats and knitting textiles. Market
characteristics: dualism in consumption patterns.
2.1.4.
Market characteristics: dualism in consumption patterns
Currently, of the 1.3 billion people in China, 53.41% are rural residents. Although the income level of rural
residents has been greatly improved during recent years, the majority of them are within the lower to
middle income group. In 2009, the rural annual net income per capita was RMB 5,153.20, which was a little
over a third of that of urban residents (see figure 2). In spite of the fact that urban consumers play a
dominant role in the current growth of the apparel market (see figure 3), it is expected that rural income will
be significantly improved in the near future. This will subsequently stimulate rural consumption and unleash
the huge potential in this market.
The contribution of rural residents to the total consumption of textiles and clothing could be twofold. On one
hand, their gradually increasing income could result in growing purchasing power, and larger expenditure
on clothing, especially on goods with higher demand elasticity such as fashion goods. On the other hand, a
considerable proportion of current rural residents are becoming urban residents; urban living standards
and lifestyle will have an overwhelming impact on their attitudes towards fashion, and this change could
also promote domestic demand.
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THE CHINESE MARKET FOR CLOTHING
Regional diversity
China has a distinct characteristic of regional diversity. Economic status differs in different cities, and both
geographically and economically the cities can be considered as forming three tiers. This regional diversity
has important implications for enterprises trying to enter the Chinese market.
The first tier are the metropolises which are mostly located along the coastline, including Yangtze River
Delta, Pearl River Delta and Bohai Gulf Metropolitan Rim. The first tier are the trendsetters in China in
everything from fashion to lifestyle. Beijing, Shanghai, Guangzhou, Tianjin, Hangzhou, Shenzhen, Ningbo,
Qingdao and Dalian are representative cities of this tier. It is the bridgehead market for foreign fashion
brands.
The second tier are the provincial capitals and well-developed cities in inland China, such as Nanchang,
Zhengzhou, Changsha, Changzhou, Wuxi and Xi’an. Their populations range from 4 million to 8 million.
The third tier are cities in the west, including northwest and southwest China, which are far from coastal
areas. Some are cities with a population of less than 1 million.
Eastern coastline cities are the wealthiest part of China, where a high concentration of apparel stores can
be found. Many famous international brands set up mainly in first-tier cities and then establish their
presence in affluent second-tier cities. Currently, the tendency is for famous brands to penetrate into more
second-tier cities.
Among the first-tier cities, Shanghai plays a significant role in setting fashion trends on the mainland.
Therefore, many foreign and domestic apparel suppliers choose to first establish a foothold in Shanghai
before seeking further expansion.
Consumption drivers
Decreasing CPI
Table 4.
Consumer price index and retail price index, 1990–2009
Year
1990
2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
CPI
(preceding year
=100)
103.1
100.4
100.7
99.2
101.2
103.9
101.8
101.5
104.8
105.9
99.3
RPI
(preceding year
=100)
102.1
98.5
99.2
98.7
99.9
102.8
100.8
101.0
103.8
105.9
98.8
Source: National Bureau of Statistics of China.
Meanwhile, the consumer price index (CPI) for garments dropped by 1.9% from the previous year in 2005,
1.0% in 2006, 0.6% in 2007, and 1.7% in 2008 (see table 5). The continual deflation is largely attributable
to the oversupply of mass-produced garments. Homogeneous products and intense competition have
prompted apparel retailers to resort to cutting prices and offering different kinds of promotional activities
such as big sales to attract consumers.
Table 5.
Consumer price index for garments, 2001–2009
2001
2002
2003
2004
2005
2006
2007
2008
2009
CPI of garments
(preceding year =100)
97.6
97.4
97.6
98.3
98.1
99.0
99.4
98.3
97.9
Year on year percentage
change in garment prices
–2.4
–2.6
–2.4
–1.7
–1.9
–1.0
–0.6
–1.7
–0.4
Source: National Bureau of Statistics of China.
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RMB appreciation
On 21 July 2005, the People’s Bank of China (PBOC) announced an appreciation of the Chinese renminbi
(RMB). The slight appreciation of the RMB will help stabilize domestic prices and might make imported
commodities cheaper. Outbound travellers particularly could find shopping less expensive and more
convenient. This will make Chinese apparel enterprises pay more attention to the domestic market.
Since the exchange rate reform in July 2005, the RMB has appreciated 19.76% against the United States
dollar. In July 2010 the exchange rate was one United States dollar to RMB 6.7735.
High savings
As shown in table 6 China’s deposits have steadily increased in recent years. In 2009, total deposits
surged to RMB 26.1 trillion. The high saving rate indicates a lack of motivation for investments and
consumption, mainly due to the pressure of expenditure on healthcare, education and housing.
Table 6.
Savings deposits (RMB billion)
Year
1990
2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
Total
712
6 433
7 376
8 691
10 362
11 956
14 100
16 159
17 253
21 789
26 077
Source: National Bureau of Statistics of China.
2.2.
Supply by domestic and overseas industry
Table 7.
Leading apparel brands in China
Products
Leading brands
Overseas brands
Domestic brands
Menswear
Ermenegildo Zegna, Dunhill, Hugo Boss,
Armani, Valentino, Ralph Lauren, Cerruti
1881, Gieves & Hawkes
Youngor, Firs, Lilang, Septwolves,
KingBoxing, Romon, SevenBrand,
Conch, Rouse
Womenswear
Dior, Chanel, Prada, Gucci, Only, Celine,
Etam, New Yorker, Esprit, MaxMara,
Versace, Trussardi, Burberry, Only, G2000,
Giordano Lady
White Collar, Kaiser, Lily, Girdear,
JNBY, Peacebird, Sierli, Gloria,
Children’s wear
Mickey’s, Les Enphants, BobDog, Bossini
Kids, Esprit Kids
Balabala, Paclantic, Goodbaby
Wahahakids, Boshiwa, Yaduo,
Yeeshow, Shuihaier, M-linge
Casual wear
Levi’s, Lee, Wrangler, Jack & Jones, Tony
Wear, Uniqlo, Baleno, Jeanswest, U2, Zara,
Tommy, Giordano, Bossini, H&M, C&A
Metersbonwe, Tonlion, Boboo,
Fairwhale, Yishion, Semir Exception
Sportswear
Nike, Adidas, Puma, Umbro, Reebok,
Converse, Mizuno, Fila, New Balance,
Kappa
Li-Ning, Anta, Peak, 361°, Xtep,
Adivon, Wandanu
Underwear
Triumph, Wacoal, Embry Form, CK, Pierre
Cardin, Chilier, Audrey, Aubade, Ordifen,
Esprit Underwear,
Aimer, Sunflora, Gujin, Maniform,
Three Gun, Gracewell, Yiselle, AB
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THE CHINESE MARKET FOR CLOTHING
In China’s clothing market, domestic brands play a critical role in the mass segment, such as men’s shirts,
knitted underwear, down coats, jackets, pants and sweaters. However, the high-end market is dominated
to a large extent by overseas brands, which are expected to accelerate their expansion into China. Most of
the domestic and overseas brands are manufactured in China, while garments of high-end luxury brands
such as Ermenegildo, Zegna and Armani are still imported.
2.2.1.
Menswear
Suits
Overseas brands currently dominate the premium market in China’s suit sector. Many well-known premium
brands such as Ermenegildo Zegna, Dunhill, Hugo Boss and Armani have already established a strong
presence in the market. Meanwhile, some domestic brands are taking the lead in terms of sales volume in
the same market segment. Domestic brands such as Youngor, Romon and Firs are also very popular.
Almost all the domestic brands are made in China.
Shirts
In the market segment of men’s shirts, domestic brands enjoy the lion’s share. Most men’s shirts all over
the world are made in China.
Youngor, Firs, Conch and Rouse are the top four brands in the domestic market. Domestic enterprises
have put a substantial amount of effort into upgrading the production standard of shirts. However, in
aspects of design and style there is still ample space for improvement.
2.2.2.
Womenswear
With a female population of over 644 million by the end of 2008, China provides the largest consumer
market for womenswear in the world. With a rising number of working women, the demand for women’s
clothing, both business and casual, is expected to experience a great increase. It can be estimated that the
women’s office wear and business casual wear markets will be the fastest growing segments.
In womenswear, top overseas brands such as Dior, Chanel, Prada and Gucci dominate the premium
market segment. The quantity of imported womenswear is small in China, but it is widely accepted that
there is a great market prospect for womenswear.
2.2.3.
Children’s wear
Overseas brands have captured the majority of the market share in children’s wear and are dominating the
premium market, with LawLandee, Mickey’s and Les Enphants occupying the top three positions. These
brands distribute their products mainly in specialty stores and outlets in mid-end to high-end department
stores.
There are a few well-known domestic brands. The prominent ones include Yaduo, Shuihaier, M-linge and
Yeeshow. Most of them are usually much cheaper than the foreign brands and are distributed via different
channels.
The children’s wear market has become one of the fastest growing markets in China. With rising income
levels and China’s one-child policy, it is believed that Chinese parents are more willing and able to spend
money on children’s clothing. In addition, there is an even bigger potential market in rural China because of
the huge rural population of young age.
Because of the promising future market in children’s wear, a number of domestic brands which previously
focused on adult clothing are attempting to enter this market by expanding their product lines. Obviously
natural fibres, such as cotton, are preferred as fabrics for children’s wear.
2.2.4.
Casual wear
Many enterprises in China are adopting more relaxed clothing requirements and shifting to a ‘business
casual’ dress code. Sales of casual wear such as denim wear, jackets and T-shirts are also on the rise.
10
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THE CHINESE MARKET FOR CLOTHING
The mass market is partly dominated by domestic brands, such as Metersbonwe and Jeanswest, which
are the top two in sales volume. Table 8 shows the rank of market share of domestic casual brands across
the nation. The most preferred brand for 16–25 year old consumers is Metersbonwe, which is far ahead of
other casual wear brands.
Nevertheless, overseas brands such as Levi’s, Lee, Jack & Jones and Tommy Hilfiger still play a fashion
leader in the segment. Most of the casual wear in China is manufactured locally.
Table 8.
Market share of domestic casual brands, 2009
Market share
rank
Brand name
1
Metersbonwe
2
3
Jeanswest
4
Semir
Yishion
5
Giordano
6
Baleno
Source: Investigation in 2009.
2.2.5.
Sportswear
Since the 2008 Beijing Olympic Games, sport has become a part of lifestyle and fashion attitudes in China,
which is making a booming market for sportswear as well as clothing and footwear for outdoor activities.
The world’s two dominant brands, Nike and Adidas, are brand leaders in China’s sportswear market. Other
foreign brands such as Reebok, Puma, Mizuno and Umbro are also prominent. These overseas brands are
mostly sourced globally. For example, Adidas products in the Chinese market come from India, Thailand,
Turkey and Viet Nam. However domestic brands such as Li-Ning, Peak, 361 and Anta are gaining a larger
share of the domestic market compared with previous years.
2.2.6.
Lingerie and underwear
The premium brands of ladies’ underwear entered the China market early, targeting urban high-income
women. Mass consumers favour the brands with a relatively low price and guaranteed quality.
With limited number of brands and narrow channels, the market for men’s underwear is still in the
preliminary stages of development. Because of the huge demand for men’s underwear and growing
fashion awareness, this market is projected to have a great development in the near future.
2.3.
National apparel clusters
Total factory output of apparel in 2009 dropped to 40 billion pieces, a decrease in volume of 13.04%
compared with the previous year. Production of knitwear dropped to 26.2 billion pieces, a 14.10%
decrease compared with 2008, and woven clothes dropped to 13.8 billion pieces, a decrease of by 10.97%
(see table 9).
Table 9.
Garment production volume
Products
Annual growth rate (%)
Output (billion pieces)
2008
2009
Woven clothing
2008
15.5
13.8
–12.92%
–10.97%
Knitted clothing
30.5
26.2
–8.68%
–14.10%
46
40
–10.16%
–13.04%
Total
2009
Source: China Textile Industry Development Report.
According to the China National Textile and Apparel Council (CNTAC), there are 146 major apparel
clusters in China. Of these, 25% are located in Zhejiang and 21% in Jiangsu, with Guangdong, Fujian and
Shandong other important centres. Jiangsu, Zhejiang, Shandong and Guangdong accounted for 23.23%,
19.71%, 17.09% and 10.57% respectively of the total national industrial output in 2009.
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THE CHINESE MARKET FOR CLOTHING
2.4.
Import developments over the last five years
2.4.1.
Growth of imports
China’s textile and clothing imports have grown steadily since 2001 (see table 10). In 2008, the value of
imports hit US$ 18.51 billion, among which textile imports accounted for US$ 16.23 billion and clothing
imports US$ 2.28 billion. Because of the great increase in market demand in accordance with national
income growth and the economic recovery after the financial crisis, it can be anticipated that textile and
clothing imports will continue to increase in the future.
Table 10. Growth of China’s textile and clothing imports, 2000–2008
Unit: US$ billion
Year
Textiles
Clothing
Total
2000
12.83
1.19
14.02
2001
12.57
1.27
13.64
2002
13.06
1.36
14.42
2003
14.22
1.42
15.64
2004
15.30
1.54
16.84
2005
15.50
1.63
17.13
2006
16.36
1.72
18.08
2007
16.65
1.98
18.63
2008
16.23
2.28
18.51
Source: China Textile Industry Development Report.
2.4.2.
Imports from LDCs
China’s textile and clothing imports from LDCs have increased sharply since 2001, although the gross
value increase is still very small. In 2009, total imports from LDCs increased to US$ 34.81 million, among
which Bangladesh ranking first with US$ 19.79 million (see table 11).
12
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41 885
Myanmar
SC-11-212.E
0
537 198
Source: Comtrade Database.
LDCs
Afghanistan
3 105
0
Mali
Maldives
0
Sudan
337
0
Mauritania
Ethiopia
0
85
1 720
14 467
Lesotho
Haiti
Madagascar
Lao PDR
1 971
138 478
Cambodia
Nepal
335 150
2001
Bangladesh
Countries
1 509 589
0
2 112
22 543
0
113
8 340
0
595
1 112 635
18 522
10 972
43 113
52 100
238 544
2002
812 965
0
17
0
0
234
591
1 030
0
21 202
91,874
16 319
144 079
50 909
486 710
2003
3 302 717
28
4 320
173
0
622
317
547
680
109 212
34 495
51 667
27 109
755 749
2 317 798
2004
5 857 814
1 306
4 659
0
346
631
644
8 376
3 366
141 439
201 556
283 149
148 420
2 069 011
2 994 911
2005
2006
0
15 414
792
10 541
276
1 371
0
0
7 636
2 096
0
191 118
421 719
76 197
323 540
281 138
4 465 345
9 644 632
2007
0
15 392
0
0
221
0
156
7 703
254 040
260 576
360 179
144 625
3 031 452
6 466 932
Table 11. China’s imports of textiles and clothing from LDCs, 2001–2009 (US$)
26 304 864
3 378
4 454
0
0
507
224
762
701 359
1 347 728
2 390 735
303 269
221 648
10 333 271
10 997 529
2008
34 810 578
310
77 351
0
0
352
0
0
1 633 630
1 517 626
251 158
291 531
474 748
10 778 024
19 785 848
2009
13
THE CHINESE MARKET FOR CLOTHING
THE CHINESE MARKET FOR CLOTHING
3.
3.1.
An analysis of the tariff structure of imports by product group
Tariff system
The basic legal framework for China’s tariff is provided by the Customs Law and related regulations. The
tariff schedules are part of the Regulations on Import and Export Tariff of China (promulgated by Decree
No. 392 of the State Council on 23 November 2003 and effective from 1 January 2004). The tariff is set by
the Tariff Commission, an inter-ministerial body under the State Council, based in the Ministry of Finance.
In 2009, tariff revenue accounted for 2.5% of China’s total tax revenue, down from 3.3% in 2008.
The tariff is one of China’s main border measures pertaining to imports. Under the regulations on import
and export tariff, import duties are categorized as most favoured nation (MFN) tariff rate, conventional tariff
1
rate, special preferential tariff rate, general tariff rate and tariff-rate quota (TRQ) rate. Where goods from
countries or customs territories fit into more than one of these categories, the more favourable rate applies.
A temporary tariff rate may be applied to imported goods for a specified period of time.
MFN tariff rates are applied to imported goods originating from members of the World Trade Organization
that are subject to the common application of the most favoured nation clause, imported goods originating
from countries or regions with which China has concluded a bilateral trade agreement to reciprocally grant
most favoured nation treatment, and imported goods originating from the customs territory of China.
Conventional tariff rates are applied to imported goods originating from countries or regions with which
China has concluded a regional trade agreement that includes preferential duty clauses.
Special preferential tariff rates are applied to imported goods originating from countries or regions with
which China has concluded a trade agreement that includes special preferential duty clauses.
The general tariff rate is applied to goods imported from and originating in countries or regions with which
China has concluded no agreements for reciprocal tariff preference, or goods with non-origin or no definite
origin.
In addition, customs duties shall be reduced or exempted in accordance with the provisions set out in the
relevant regulations by the state council.
3.2.
Tariff structure for textiles and clothing
China has been committed to substantial annual reductions in its tariff rates since WTO accession in 2001,
and in 2010 it met the commitment it made on WTO accession. The average applied tariff rate has fallen to
9.8% as of 1 January 2010.
1
Regulations of China on Import and Export Duties. From the website of General Administration of Customs of PRC.
http://english.customs.gov.cn/publish/portal191/tab3972/module21538/info69437.htm.
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THE CHINESE MARKET FOR CLOTHING
Table 12. China’s tariff structure for textiles and clothing (%)
2001
2002
2003
2004
2005
2007
2009
2010
(final
bound
rate)
Bound tariff
Simple average bound rate
n.a.
12.4
11.3
10.4
10.0
9.9
9.9
9.9
Textiles and clothing
n.a.
17.6
15.1
14.9
11.5
11.5
11.5
11.5
15.6
12.2
11.1
10.2
9.7
9.7
9.5
9.8.
21.1
17.5
15.1
12.9
11.5
11.5
11.5
n.a.
Applied tariff
Simple average applied
a/
rate
Textiles and clothing
b/
Source: WTO Secretariat calculations.
a/.
The simple averages not including temporary rates are 15.9%, 12.3%, 11.2%, 10.3%, 9.9%, 9.8% and 9.8% for 2001, 2002, 2003,
2004, 2005, 2007 and 2009 respectively.
b/
The tariff rate for clothing is the average level of 61 and 62 of the Harmonized Commodity Description and Coding System (HS).
n.a. = not available.
Note: The 2001 tariff is based on HS 1996 nomenclature. The 2002–2005 tariff is based on HS 2002 nomenclature. The 2007 and
2009 tariffs are based on HS 2007 nomenclature consisting, respectively, of 7,645 and 7,867 tariff lines.
Although clothing is among those products where tariff levels remain comparatively high, the applied tariff
level has been greatly cut and reached its final bound rate of 11.5% in 2009 (see table 12).
China’s current effective applied tariff rates for clothing (61 and 62 of the Harmonized Commodity
Description and Coding System (HS)) ranges from 14% to 25%, except for the nine product lines – mostly
2
underwear products – which are subject to a reduced rate from 1% to 3% lower than the bound level. The
tariffs applied to overcoats, men’s and women’s suits, and woollen suits are as high as 25%.
Moreover, nine product lines under 61 and 61 HS were unbounded according to China’s WTO accession
commitment. These products include jerseys and pullovers made of wool, cashmere and goat hair, as well
3
as gloves and mittens made of different materials.
3.3.
Tariff systems for textiles and clothing from LDCs
Among the tariff rates described above, conventional tariff rates and special preferential tariff rates are
most applicable to imported goods originating from LDCs. There are three preferential systems that are
applicable to textile and clothing products from LDCs: the Asia–Pacific Trade Agreement (APTA), the
China-ASEAN Free Trade Area (CAFTA), and the unilateral preferential system for African, Asian and
4
Pacific LDCs. Countries to which preferential tariffs are applied are listed in table 13.
2
The product lines for which the applied tariff is lower than the bound tariff are: 611220, 620429, 620719, 621010, 621120, 621210,
621220, 621230, 621290.
3
611011, 611012, 611019, 611693, 611699, 611710, 611720, 611780, 611790. LDC clothing exports to China – Tariff structure and
trade flows.
4
The Customs Import and Export Tariff of China 2010, published by the State Council of China in January 2010.
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THE CHINESE MARKET FOR CLOTHING
Table 13. Countries to which China applied non-MFN tariff, 2010
Tariff species
Conventional tariff rate
Special preferential tariff rate
Countries applied to
APTA (2): Bangladesh, the Lao People’s Democratic Republic
ASEAN (3): Cambodia, the Lao People’s Democratic Republic, Myanmar
Africa (31): Angola, Benin, Burundi, Cape Verde, Central African Republic,
Chad, Comoros, Congo, Djibouti, Equatorial Guinea, Eritrea, Ethiopia, Guinea,
Guinea-Bissau, Lesotho, Liberia, Madagascar, Malawi, Mali, Mauritania,
Mozambique, Niger, Rwanda, Senegal, Sierra Leone, Sudan, Somalia, Togo,
Uganda, the United Republic of Tanzania, Zambia
South East Asia (4): Bangladesh, Cambodia, the Lao People’s Democratic
Republic, Myanmar
Other countries (6): Afghanistan, Timor-Leste, Maldives, Samoa, Vanuatu,
Yemen
3.3.1.
Conventional tariff rate
APTA
The Asia-Pacific Trade Agreement (APTA), previously known as the Bangkok Agreement, was signed in
1975. Its aim is to promote economic development and cooperation through the adoption of mutually
beneficial trade liberalization measures. Member nations are China, Bangladesh (LDC), India, the Republic
of Korea, the Lao People’s Democratic Republic (LDC) and Sri Lanka. Under APTA, 1767 tariff lines
originating from Bangladesh and the Lao People’s Democratic Republic are given conventional tariff rates
for exports to China. These countries are trading with a preferential tariff 0.5% to 5.0% lower than the
applied MFN tariff for 50–63 HS.
CAFTA
The China–ASEAN Free Trade Area (CAFTA) is a free trade area covering the ten member States of the
Association of Southeast Asian Nations (ASEAN) and China. The initial framework agreement was signed
on 4 November 2002 in Phnom Penh, Cambodia, with the intent of establishing a free trade area among
the eleven nations by 2015.
Under the framework agreement, China began to reduce tariff rates from 1 January 2005. Then China
gradually had the tariff rates reduced or eliminated in accordance with specified schedules and rates
5
(mutually agreed by the parties) over a period from 1 January 2005 to 2010 for ASEAN 6, and over a
6
period from 1 January 2005 to 2015 in the case of newer ASEAN member States, with higher starting
tariff rates and different staging.
Products for which tariff rates need to be reduced are put in two categories: normal products and sensitive
products. The main difference is that the tariff rates for normal products must be reduced to zero in the
end, while those for sensitive products need not.
A free trade area (FTA) was established between China and ASEAN 6 in 2010. Since 1 January 2010,
more than 90% product lines have zero-rate tariffs, and almost all textile and clothing product lines at the
8-digit HS code level are tariff-free. China’s average tariff on imports from ASEAN nations has reduced
from 9.8% to 0.1%. The newer ASEAN member States will be included in this FTA in 2015, realizing the
goal of 90% tariff-free products.
5
ASEAN 6 refers to Brunei, Indonesia, Malaysia, the Philippines, Singapore and Thailand.
6
The newer ASEAN Member States refers to Cambodia, the Lao People’s Democratic Republic, Myanmar and Viet Nam.
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Table 14. Detailed list of clothing products with duty free access 7
HS code
(2-digit)
Content
Sub codes
(4-digit)
Number of tariff-free
products
6101
61-
Articles of apparel and clothing
accessories, knitted or crocheted
6102
4
6103
15
6104
25
6105
3
6106
3
6107
11
6108
15
6109
3
6110
9
6111
4
6112
9
6113
1
6114
4
6115
9
6116
5
6117
4
61 Total
62-
Articles of apparel and clothing
accessories, not knitted or
crocheted
62 Total
7
4
128
6201
12
6202
12
6203
21
6204
30
6205
5
6206
5
6207
12
6208
12
6209
5
6210
8
6211
16
6212
8
6213
6
6214
5
6215
3
6216
1
6217
4
165
These lists apply to China’s imports from three LDCs: Cambodia, the Lao People’s Democratic Republic and Myanmar.
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3.3.2.
Special preferential tariff rate
Special preferential tariff rates applied to LDCs are annually adjusted subject to trade or tariff agreements
with various countries. On 30 December 2009, China published a new tariff implementation scheme to
apply special preferential tariff rate to LDCs in 2010.
For African LDCs
Since 1 January 2010, China has unilaterally granted zero tariff rates to 80 textile product lines and 61
clothing product lines on imported goods originating from 31 African LDCs, at the 8-digit HS code level.
For Asia-Pacific LDCs
Bangladesh and the Lao People’s Democratic Republic are charged zero tariff for 53 textile and clothing
product lines under the framework of APTA. Some special preferential tariff rates lower than the applied
MFN tariffs are applicable to another 25 product lines, mostly in 61 and 62 HS at the 8-digit HS code level.
Goods originating from Cambodia (93 product lines), the Lao People’s Democratic Republic (106 product
lines) and Myanmar (83 product lines) enjoy zero tariffs on imports into China under CAFTA.
For Yemen and another five LDCs, China has granted zero tariffs for 121 product lines of textiles and
clothing at the 8-digit HS code level; 66% of the lines involve clothing.
Approved by the State Council, Tariff Implementation Scheme 2010 came into effect on 1 January 2010,
showing that China is continuing to apply special preferential tariff rates to 4 Southeast-Asian LDCs, 31
African LDCs and 6 other LDCs (41 LDCs in total). Three kinds of tariff rates for specific LDCs can be
compared in table 15.
Table 15. Summary analysis of the Chinese preferential tariff (%)
2005
Overall
average
MFN
9.7
2007
Textiles and
clothing
11.5
Overall
average
9.7
2009
Textiles
and
clothing
Overall
average
Textiles and
clothing
11.5
9.5
11.5
Agreement tariff rates
a/
APTA
9.5
10.6
9.1
10.4
8.9
10.4
Cambodia
9.0
11.5
8.8
11.5
8.6
11.5
Lao PDR
9.2
11.5
9.0
11.5
8.8
11.4
Myanmar
8.9
11.5
6.0
7.2
2.5
3.3
ASEAN
Unilateral preferential tariff rates for LDCs
Special rates for African
b/
LDCs
9.5
11.1
9.5
11.1
8.9
9.9
Bangladesh
9.5
11.0
9.5
10.7
9.3
10.6
Cambodia
9.0
10.9
9.3
10.7
8.8
10.5
Lao PDR
9.1
10.7
9.0
9.7
8.8
9.7
Myanmar
9.3
11.0
9.1
10.5
9.1
10.6
n.a
n.a.
9.2
10.1
9.0
9.9
Special rates for:
Special rates for some
Asian and Pacific
c/
countries
Memorandum:
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2005
Overall
average
Bangladesh
e/
Lao PDR
f/
Cambodia
Myanmar
Source:
f
d/
2007
Textiles and
clothing
Overall
average
2009
Textiles
and
clothing
Overall
average
Textiles and
clothing
9.2
10.2
8.9
9.7
8.7
9.7
8.5
9.9
8.0
8.8
7.8
8.9
8.5
10.9
8.6
10.7
8.2
10.5
8.6
11.0
5.9
7.1
2.5
3.3
WTO Secretariat calculations.
a/
The Bangkok Agreement was renamed the Asia–Pacific Trade Agreement on 2 December 2005. Preferential rates under APTA are
applicable to the Republic of Korea, Sri Lanka, Bangladesh, India, and Lao People’s Democratic Republic.
b/
There were 28 countries in 2007: Angola, Benin, Burundi, Cape Verde, Central African Republic, Comoros, Democratic Republic of
the Congo, Djibouti, Equatorial Guinea, Eritrea, Ethiopia, Guinea, Guinea-Bissau, Lesotho, Liberia, Madagascar, Mali, Mauritania,
Mozambique, Niger, Rwanda, Senegal, Sierra Leone, Sudan, Togo, Uganda, the United Republic of Tanzania and Zambia In 2009,
the number increased to 31.
c/
In 2007 these were Afghanistan, the Maldives, Samoa, Vanuatu and Yemen; Timor-Leste was added in 2008, and Nepal in May
2010.
d/
Including APTA preferential rates and special preferential tariff rates.
e/
Including APTA preferential rates, ASEAN preferences and special preferential tariff rates.
f/
Including ASEAN preferences and special preferential tariff rates.
Note: Calculations exclude in-quota rates, and specific rates, and include interim duty rates.
4.
4.1.
Non-tariff requirements in the market
Special import regulations
According to the protocol for accession to the WTO, China shall eliminate and shall not introduce, reintroduce or apply non-tariff measures that cannot be justified under the provisions of the WTO agreement.
4.1.1.
Import license
The licensing regime as a whole is regulated, inter alia, by the Foreign Trade Law, the Administrative
Permission Law, and the Measures for Administration of Automatic Import Licensing for Goods.
Details of commodities subject to import licensing, except those goods subject to tariff rate quotas (TRQs),
are published annually by the Ministry of Commerce (MOFCOM) in the Catalogue of Goods Subject to
Import License Administration and the Catalogue of Goods Subject to Automatic Import Licensing
Administration.
According to the latest catalogues, textile machines are the only goods related to textiles and clothing
listed as being subject to import licensing.
4.1.2.
Import quotas
Import quotas concerning textiles have been eliminated in China.
Certain textile and clothing products used to be subject to import restrictions imposed by the Chinese
Government, but these restrictions are being phased out. For example, upon WTO accession, China
8
eliminated import quotas for more than 40 categories of textile and clothing products in chapter 51 to 55
HS.
8
As calculated according to protocol on the accession of China, annex 3, non-tariff measures subject to phased elimination.
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4.1.3.
Tariff rate quotas (TRQs)
A tariff-rate quota is a quota for a volume of imports at a lower tariff. After the quota is reached, a higher
tariff is applied on additional imports.
In principle, a TRQ provides more market access to imports than a quota. In practice, however, many overquota tariffs are prohibitively high and effectively exclude imports in excess of the quota. It is possible to
design a TRQ so that it reproduces the trade-volume limit of the quota it replaces.
According to the Chinese authorities, as since the elimination of import quotas in January 2002, TRQs
have been used to monitor trade in wool, woollen tops and cotton. The National Development and Reform
Commission (NDRC) and MOFCOM are jointly responsible for administering TRQs for cotton, and
9
MOFCOM is solely responsible for wool, and woollen tops.
The allocation of quotas is based on the applicant’s capacity for production, sales and service, and past
import performance, the number of new applicants, quota utilization records, and other relevant factors,
including the scale or size of the enterprise and tax records.
Since 2004, there has been no change in China’s TRQs on cotton, wool and woollen tops.
Table 16. China’s TRQs for cotton, wool and woollen tops, 2004–2010
Year
Cotton TRQ (tons)
Wool TRQ (tons)
Woollen tops TRQ (tons)
2004–2010
894 000
287 000
80 000
Source: Data based on the Ministry of Commerce of China, the administrator of TRQs for cotton, wool and woollen tops from 2004 to
2010.
China’s TRQ on cotton
On cotton imports within quota there is a tariff rate of 1%. A sliding rate system, implemented in May 2005,
is applied to any over-quota amount; currently the tariff rate ranges from 5% to 40% according to the price
of the imported cotton.
This is done with the aim of achieving of a stable after-tax price; specifically, a lower tariff rate will be
imposed on higher-priced cotton, and a higher tariff rate on lower-priced cotton. The sliding tax system on
cotton helps to adjust the cost of imported cotton and maintain stable prices in the domestic market,
ensuring that farmers receive an adequate price.
4.2.
Customs procedures
4.2.1.
Customs procedures
Since 2005, China’s customs procedures have remained largely unchanged. Importers (and exporters)
10
must register with MOFCOM or its authorized bodies before filing customs declarations. Import
declarations can be made either in person, or by an enterprise authorized to do so, in paper or electronic
11
12
form. Declarations must be made to Customs at the port of entry within 14 days of the goods’ arrival,
9
Previously all the quotas except on fertilizers were administered by the State Development Planning Commission (SDPC); quotas
for fertilizers were administered by the State Economic and Trade Commission (WTO document, G/LIC/N/3/CHN/1, 23 September
2002).
10
Under the rules for the registration of foreign trade operators, issued by MOFCOM and effective from 1 July 2004, the registration
documents include: a registration form; a copy of the business certificate and a copy of the organization code certificate of the
enterprise; the certificate of approval of the foreign-invested enterprises, if the trader is an enterprise with foreign investment; a selfemployed entrepreneur must submit a notarized property certificate, while a foreign enterprise (registered outside China) must submit
a notarized certificate of creditworthiness.
11
Although almost all declarations can be submitted in electronic form, a paper copy must also be submitted.
12
Customs Law. Viewed at: www.customs.gov.cn/YWStaticPage/433/69eabfa8.htm (in Chinese) [11 February 2008].
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and must be accompanied by: contract of import (or export), invoices, bill of lading, authorization
agreement if declared by agents, import (or export) approval documents, and processing trade handbook
(paper or electronic form). At the time of the customs declaration, importers must meet the requirements of
customs and the Administration of Quality Supervision, Inspection and Quarantine (AQSIQ).
4.2.2.
Customs valuation
Customs value is determined on the basis of the transaction value, which includes the costs of transport
13
and insurance and other related charges. Under the Rules Regarding Determination on Customs Value
of Imported and Exported Goods, where it is impossible to determine the transaction value, the customs
value is based on (in sequential order): the transaction value of identical goods; the transaction value of
similar goods; the deductive value; the computed value; or the value determined on a ‘reasonable’ basis.
4.2.3.
Pre-shipment inspection requirements
China introduced a pre-shipment inspection (PSI) requirement by the revision of the implementing
regulation of the law on import and export commodity Inspection; the revised version entered into force on
14
1 December 2005. China has not yet notified this requirement to WTO. Under the regulation, preshipment inspection is required for imports of: certain commodities related to national security, with high
value or complicated technology; equipment exceeding a certain height, length or volume; solid waste
used as raw materials; and certain used electronic products that are deemed to affect public health and the
environment. The authorities state that the PSI requirement was introduced to, inter alia, protect public
health, improve the phytosanitary situation, protect the environment, and prevent counterfeit goods from
15
entering China. China has designated 23 foreign institutions to conduct PSIs and to issue certificates.
PSI certificates are not used for customs valuation.
4.3.
Freight forward and transport requirements
Rules of origin
China applies non-preferential rules of origin in accordance with the Regulations on Rules of Origin of
Import and Export Commodities (State Council Decree No. 416, 2004). Under article 3 of the Regulations,
for goods produced or manufactured wholly within one country or region, origin is defined as that country
or region; for goods produced in two or more countries or regions, the place of origin is the country or
region where ‘substantial transformation’ has been made and finalized. ‘Substantial transformation’ is
defined either as a change in the tariff heading of the product transformation’ is defined either as a change
in the tariff heading of the product according to China’s tariff classification, or as the value added being at
least 30% of the total value of the product.
Preferential rules of origin are applied in accordance with the various regional and bilateral trade
agreements China has concluded (see table 17), and to certain imports from LDCs. Preferential rules of
origin tend to vary from agreement to agreement, and sometimes across product groups, which could add
to the complexity of China’s import regime.
13
Rules Regarding Determination on Customs Value of Imported and Exported Goods. See WTO document G/VAL/N/1/CHN/5, 11
April 2008.
14
Implementing Regulation of the Law on Import and Export Commodity Inspection (State Council Decree No. 447, 2005). Viewed at:
www.chinacourt.org/flwk/show1.php? file_id=104565 (in Chinese) [11 February 2008].
15
The authorities consider that the PSI requirement can function as a precautionary measure against counterfeiting.
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Table 17. China’s preferential rules of origin related to LDCs
Agreement/party
Rules
APTA
Products must be wholly produced or obtained in the country, or the value of nonoriginating parts or components used in the manufacture must be less than 50% of the
FOB value of the product. The country of origin is defined as the country where the last
manufacturing operation takes place. In addition, goods must enter China directly.
ASEAN
Products must be wholly produced or obtained in ASEAN countries; or the content of
products originating in any one of the ASEAN countries should be no less than 40% of
total content; or the value of the non-originating parts or components used in the
manufacture of the products must be no more than 60% of the FOB value of the product.
The country of origin is defined as the country where the last manufacturing operation
takes place. In addition, goods must enter China directly.
LDCs
Products must be wholly produced in the country of origin, or the value of non-originating
parts used in the manufacture of a product may be up to 60% of the FOB value of the
product. Goods under the APTA (originating in Bangladesh, and the Lao People’s
Democratic Republic) must enter China through ‘direct transportation’.
Source: Information provided by the Chinese authorities.
4.4.
Packaging, marketing and labelling requirements
Labelling requirements are maintained under the Standardization Law and the Law on Product Quality,
adopted on 22 February 1993 and amended on 8 July 2000. Under these laws, all products sold in China
must have Chinese language labels. Information may also be provided in a foreign language, although the
details must correspond to the information provided in Chinese.
Imported textiles and clothing for domestic sales must conform to the mandatory standards on
identification as well as instructions for use written in Chinese, and the identification must also agree with
the characteristics of the commodity. The effective regulations on instructions include: GB5296.4–1998,
Instructions on consumptive textiles and clothing, and GB/T8685–88, Graphical symbols for textiles and
clothing instructions for use.
Early in 2006, China enacted legislation to implement the International Plant Protection Convention (IPPC)
Wood Packaging Mark and Rules. This new legislation mandates that all wood packaging materials must
conform to the IPPC mark, treatment and certification requirements in accordance with the standards
documented in the International Standards for Phytosanitary Measures, frequently referred to as ISPM 15.
China Customs will destroy or return to the exporter of record any shipments containing non-conforming
packaging.
4.5.
Standards and other technical requirements
Among China’s notifications to WTO under the TBT Agreement from 1 January 2002 to 30 June 2010,
there were nine notifications relating to textiles and clothing.
22
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Table 18. WTO TBT notifications, 2002–2010
Notification number
Notified documents
G/TBT/N/CHN/20/Rev.1
National general safety technical code for textile products
G/TBT/N/CHN/249
National standard of China, cotton – upland cotton
G/TBT/N/CHN/127
National standard of China, environmental protection control standard for
imported solid waste as raw materials – waste and scrap of fibres
G/TBT/N/CHN/183
Announcement No. 177 of 2005 made by the general administration of
quality supervision, inspection and quarantine (AQSIQ)
G/TBT/N/CHN/336
AQSIQ Notice on implementing the administrative measures on registration
of overseas supplying enterprises exporting cotton to China
G/TBT/N/CHN/317
National standard of China, seed of economic crops – Part 1: fibre species
G/TBT/N/CHN/427
National standard of China, Instructions for use of products of consumer
interest – Part 4: textiles and apparel
G/TBT/N/CHN/441
National standard of China, conventional moisture regains of textiles
G/TBT/N/CHN/624
National standard of China, directions for use and labels for carpets
Source: www.tbt-sps.gov.cn/tbtsps/Notification.
4.5.1.
National general safety technical code for textile products (GB 18401)
The general administration of quality supervision, inspection and quarantine of China adopted a new
national general safety technical code for textile products, GB 18401 (2003), on 27 November 2003; it
came into effect on 1 January 2005.
The safety requirements in the technical code are established to facilitate third-party verification. For selfdeclaration, a company may perform the inspection according to its own product categories and its own
quality assurance system.
As GB 18401 is the national safety standard for textile products, if products fail to meet the safety
requirements they are not allowed to be manufactured in China, or sold in or imported into the China
market. Therefore, the importance of safety testing according to GB 18401 can not be overlooked.
The standard is applicable to wearable and upholstery textile products produced, sold and used in China
(including yarns, fabrics and their made-up products) using natural and man-made fibres as major raw
materials, produced with textile processing technology and/or sewing manufacturing technology, for the
purpose of wearing and upholstery. The following textiles for particular uses are not included: textiles for
engineering projects, agriculture, safety and protection, rope and net, packaging, medicine, toys,
ornaments and outdoor decorations.
The standard specifies general safety technical requirements, test methods and inspection rules for textile
products. Products involved in the standard are divided into three categories – Category A: products for
babies and children; Category B: products with direct contact to skin; and Category C: products without
direct contact to skin. Corresponding basic safety technical requirements are also specified.
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Relevant documents include:
16
•
GB/T 2912.1
Textiles – Determination of formaldehyde – part 1: Free and hydrolized
formaldehyde (water extraction method)
•
GB/T 3920
Textiles – Tests for colour fastness – Colour fastness to rubbing;
•
GB/T 3922
Textiles – Testing method for colour fastness to perspiration;
•
GB/T 5713
Textiles – Tests for color fastness – Colour fastness to water;
•
GB/T 7573
Textiles – Determination of pH of the aqueous extract;
•
GB/T 17592.1
Textiles – Test method of the use of banned azo colourants – Gas
chromatography/mass spectrography method
•
GB/T 18886
Textiles – Tests for fastness – Colour fastness to saliva
•
GB/T 23344
Textiles – Determination of 4 amino azobenzene
4.5.2.
National standard of China, cotton – upland cotton (GB 1103) 17
Since 1 April 2003, short fibre content (SFC) and nep count have been included in the quality requirements
of National Standard GB1103 (1999), Cotton – Upland Cotton. Test for SFC must be conducted according
to GB/T6098.1 (1985), Test Method of Cotton Fibre Length, using a roller analyser. Test of neps must be
conducted according to GB/T6103 (1985), Test Method for Raw Cotton Trash. The national standard for
cotton was revised in order to improve the quality of cotton, to satisfy the needs of textile enterprises for
high quality cotton, to prevent fake and bad quality cotton from flowing into the market, and to fight
deceptive trade practices.
4.5.3.
National standard of the P.R.C., environmental protection control standard
for imported solid waste as raw materials – waste and scrap of fibres 18
Cotton waste, waste fibres, rags and scrap of textile materials are covered in this standard. It stipulates the
requirements for the control of the carried-wastes in the imported waste and scrap of fibres, and
radioactive pollution control. The purpose is for environmental protection.
4.5.4.
Announcement No. 177 of 2005 made by the Administration of Quality
Supervision, Inspection and Quarantine (AQSIQ) 19
This announcement concerns paper clothing. From 1 January 2006, commodities such as toilet paper,
tissue paper, paper handkerchiefs, napkins, paper napkins, paper diapers, paper clothing and paper bed
sheets (covered in 6 HS) have been included in the Catalogue of Commodities Subject to Mandatory
Inspection and Quarantine. The mandatory inspection and quarantine are carried out on the entry of these
commodities.
4.5.5.
AQSIQ Notice on implementing the administrative measures on registration
of overseas supplying enterprises exporting cotton to China 20
This notice specifies the administrative measures on registration of overseas supplying enterprises
exporting cotton to the mainland of China. No cotton exported from the supplying enterprises shall be
permitted to enter into the mainland of China without such registration. The registered supplying
16
World Trade Organization G/TBT/N/CHN/20/Rev.1, 10 February 2010.
17
World Trade Organization G/TBT/N/CHN/249, 9 March 2007.
18
World Trade Organization G/TBT/N/CHN/127, 18 August 2005.
19
World Trade Organization G/TBT/N/CHN/183, 16 January 2006.
20
World Trade Organization G/TBT/N/CHN/336, 20 February 2008.
24
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enterprises are subject to the administration of quality credit evaluation. There is no charge for the relevant
registration from overseas supplying enterprises.
China is the world’s largest producer and consumer of cotton. It imports more than 3 million tons of cotton
each year, and the total value exceeds US$ 4 billion. The inferior quality of some imported cotton was a
problem for many years. Problems such as plant diseases and insect pests, hazardous substances, very
poor quality, short weight, using poor-quality cotton to replace good cotton, adulteration and so on, were
rather severe. The disqualification rate of inspection lot was over 70%. This administrative measure is
aimed at preventing inferior quality cotton from entering into the mainland of China, putting an end to
deceptive practices and protecting the legitimate interests of honest enterprises.
Table 19. Cotton imports, 2000–2009
Year
Cotton imports (tons)
Year
Cotton imports (tons)
2000
251 000
2005
2 745 000
2001
1 997 000
2006
3 980 000
2002
245 000
2007
2 740 000
2003
1 075 000
2008
2 264 000
2004
2 114 000
2009
1 759 000
Source: United Nations Commodity Trade Statistics Database.
AQSIQ registration of cotton:
Since 15 September 2008, overseas supplier enterprises need to submit applications for registration to
AQSIQ.
A supplier enterprise should meet the following conditions when applying for registration.
(1)
(2)
(3)
(4)
(5)
The company should be a legally registered company in its country or area.
The company should have stable premises and a certain scale of operations.
The company should have stable sources of goods and relevant measures of control over the
goods.
The company should be familiar with Chinese inspection and quarantine rules and regulations on
imported cotton.
There should have been no serious quality problems, no harmful substances and no bad records
causing serious consequences in the company’s most recent year of trade activities.
When an overseas supplier enterprise submits an application, written copies of the following information
should be submitted in Chinese version or Chinese and English according to the related regulations:
(1)
(2)
(3)
(4)
Registration application for overseas supplier enterprises of imported cotton.
Effective and legal business registration documents or copy.
Basic operating procedures and quality control of supplier enterprise.
Other related materials required by AQSIQ.
An overseas supplier enterprise which meets all requirements after examination will be informed by
AQSIQ, and the application will be accepted at that time.
If extra information is required, the applicant will be informed in five working days. The information should
be provided within 20 working days, otherwise the application will be cancelled.
AQSIQ will organize an evaluating team in two months to evaluate the information supplied in the
applications of accepted overseas supplier enterprises. If necessary, AQSIQ will implement on-the-spot
evaluation of the enterprises. The on-site evaluation includes processing ability, quality control and
management, testing ability, and packaging and storage management.
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AQSIQ will register enterprises that meet all the requirements after examination, issue a registration
certificate, and publish notice of registration. An enterprise which is not qualified after the examination
cannot re-apply for registration within two months.
The registration certificate is valid for three years. The enterprise should submit an application for
certification change and re-examination three months before the date of the expiry of the certificate. If there
is any change in registered data during the validity of the certificate, the enterprise should submit a revised
application.
After examination, if the applicant has not submitted true information, the enterprise can not be registered.
Any enterprise already registered will have its registration cancelled if its submitted materials are found to
be false.
From 15 March 2009, when a company imports cotton from a registered overseas supplier enterprise, the
consignee should provide a copy of the registration certification to the entry port inspection and quarantine
institution; the goods can then be inspected at the destination after arrival.
When importing cotton from unregistered overseas supplier enterprises, the consignee should stipulate
pre-shipment inspection in the trade contract. Then an inspection and quarantine institution, or the
inspection institution approved by AQSIQ, performs pre-shipment inspection. Basic information about the
overseas supplier enterprise and its goods should be submitted when a company makes a declaration for
inspection on entry of the commodities. After the arrival of the goods, the inspection and quarantine
institution unpack the goods and perform on-site inspection at the first arrival port.
AQSIQ applies quality credit evaluation management to overseas supplier enterprises. In accordance with
the actual quality of the imported goods based on inspection of the Chinese customs, ASQIQ will rank
suppliers in three categories. Category A contains fully thrustworthy suppliers. Category B contains
suppliers that had delivered cotton which was not fully in line with contractual agreements. Category C
suppliers are suppliers that repeatedly supplied cotton that were not in accordance with quality parameters.
The surveillance of category C suppliers by AQSIC is the highest and requires improvements on the side
of the supplier.
The registration of cotton supplier enterprises from Hong Kong China, Macao China and Chinese Taipei is
covered under this bulletin.
4.5.6.
National Standard of China, seed of economic crops – Part 1: fibre species 21
This document amends National Standard GB 4407.1 (1996), Seed of Economic Crops – Fibres. The
details of the amendments include: the addition of cotton hybrid seed quality requirements, and the
amendment of some quality requirements and evaluating rules. The purpose is to avoid losses caused by
using low quality seeds and to protect the interests of farmers.
4.5.7.
National standard of China, instructions for use of products of consumer
interest – part 4: textiles and apparel 22
This standard specifies the scope, normative referrences, terms and definitions, basic principles, label
contents, forms and positions of the instructions etc. for textiles and apparel. This standard applies to the
instructions for all kinds of textiles and apparel. It aims at regulating the market and protecting consumers’
safety and health.
4.5.8.
National standard of China, conventional moisture regains of textiles 23
This standard specifies the conventional moisture regain of common textiles. It applies to textile materials,
and can be used for calculating the conventional mass of textiles, linear density of yarn, mass per unit area
21
World Trade Organization G/TBT/N/CHN/317, 30 November 2007.
22
World Trade Organization G/TBT/N/CHN/427, 15 July 2008.
23
World Trade Organization G/TBT/N/CHN/441, 29 August 2008.
26
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of fabric, and fibre content in blended products for quantitative analysis. The purpose is to regulate the
market and facilitated trade convenience.
4.5.9.
National standard of China, directions for use and labels for carpets 24
The standard is applicable to woven wall-to-wall pile carpets (including carpet tiles), pile rugs and carpet
strips (ICS 59.080.60; HS 8413).
Chapter 5 of this standard is mandatory, while the remaining chapters are recommendations. Chapter 5
specifies the normative identification and description for the specification of carpet products, the name and
content of the surface pile fibre, mass of pile per unit area of the substrate, thickness or height of the pile,
name and address of the manufacturer and other basic information. The purpose is to regulate the market,
prevent fraud and protect consumer interests.
4.6.
Specific ethical trading requirements
No nationwide ethical trading requirement for general imports has been promulgated in China yet.
However, the China National Textile and Apparel Council is promoting CSC9000T – an industry-specific
management system for social compliance for China’s textile and apparel sector, which is based on
Chinese laws and regulations and the relevant international conventions.
CSC9000T (China Social Compliance 9000 for the Textile and Apparel Industry) applies to all Chinese
enterprises running businesses related to textiles and apparel on a voluntary basis. Given the increasing
concerns of social compliance, it is expected that labour standards as such may be further adopted in
China in the years to come.
The core of CSC9000T is to establish a social compliance system based on moral principles, meaning that
it will able to effectively guarantee the legal benefits of employees, empower employees to become the
owners of their companies, and make a job not just a necessity for living but a valued part of existence and
an embodiment of life. Considering safety conditions in domestic enterprises, CSC9000T especially
reinforces the management criterion of occupational health and risk management. Furthermore, compared
with other international social compliance tools, CSC9000T adds regulations about labour contracts, which
25
helps employees to safeguard their own rights and benefits effectively and legally.
5.
5.1.
Expected market development (market prospects)
Market potential
5.1.1.
Diversity of consumer group
As part of the process of market development and personalization, the disposable income of Chinese
residents is increasing, and a population group of affluent people is emerging. On one hand, the
differentiation of consumer groups is becoming clear. The population of Chinese residents with annual
income above RMB 120,000 reached 1.63 million in 2007, according to the National Taxation Bureau. On
the other hand, people with low to middle income are the majority. This phenomenon is resulting in a fast
increase in consumption of both low-end and high-end goods. China is one of the largest markets for
luxury consumption, while it still has a great market capacity for mass fashion. The rapid growth rate of
mass fashion provides a larger market space to affordable fast fashion brands such as Zara.
24
World Trade Organization G/TBT/N/CHN/624 29 April 2009.
25
http://www.csc9000.org.cn/.
http://www.csc9000.org.cn/en/CSC9000T.asp.
www.csc9000.org.cn/PDF/SystemDocuments/CSC9000T_ENG_2005.pdf.
http://info.worldbank.org/etools/antic/docs/Resources/InitiativeType/AntiCorruption%20Declarations/China_Declaration.pdf.
www.fytest.com/fztest/fzzlk/qyglz/200606/4629.asp.
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THE CHINESE MARKET FOR CLOTHING
According to the thirteenth annual World Wealth Report, the number of affluent people in China in 2008
ranked fourth in the world, with the middle class already accounting for about 22–23% of the Chinese
population and that figure increasing by 1% per year. McKinsey revealed that the growth of the middle
class would reach to a peak in 2015, with a surprising purchasing power of RMB 4.8 trillion.
5.1.2.
The growing purchasing power
According to the Report of China business development (2009–2010), published by the China Academy of
Social Sciences, the total consumption of luxury goods increased to US$ 9.4 billion in 2009, accounting for
27.5% of global market share, making China the world’s second largest consumer of luxury goods. The
World Luxury Association China Office estimates that China’s luxury goods market is likely to reach US$
14.6 billion, making it the single largest consumer of luxury goods, in the next five years.
A distinguishing characteristic of luxury goods consumption in China is that a large number of people
26
consider luxury goods to make excellent presents in business circles.
5.1.3.
The process of urbanization
The percentage of the population living in urban areas rose from 36.22% in 2000 to 45.68% in 2008, with
more than 10 million people moving to cities every year. During the process of urbanization, the lifestyles
and fashion goods consumption patterns of these people have experienced great changes as they adapt to
their new residences. It is anticipated that the mass market for such a group will expand at a faster pace.
Figure 5.
Urban population, 2001–2009
700
50.00
45.00
600
40.00
500
35.00
400
30.00
300
20.00
25.00
15.00
200
10.00
100
0
5.00
2001
2002
2003
2004
2005
2006
2007
2008
2009
0.00
Source: National Bureau of Statistics of China.
26
China Textile Information Center and China Textiles Development Center. 2010 s/s China Textile Development Report, February
2010.
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5.2.
Consumer behaviour
5.2.1.
The change of lifestyle
Currently, consumers focus on both improving basic living conditions and enhancing their overall quality of
life. According to consumer lifestyle surveys conducted by China Textiles Information Center and China
Textiles Development Center during the last three years, consumers are attaching more importance to a
better life and personal image. They tend to be more reasonable, mature and less price-sensitive.
Living conditions
It is observed that ‘very busy’, ‘sub-healthy’ and ‘strong interpersonal relationships’ rank top three in work
and life for consumers in the three big cities of Beijing, Shanghai and Guangzhou. It can be speculated that
positive attitudes and a busy life are common among consumers (see figure 6).
Figure 6.
Comparison of consumer living conditions in Beijing, Shanghai and
Guangzhou
%
Beijing
%
Shanghai
Guangzhou
16
14
12
10
8
6
4
2
0
Source: China Textile Development Report 2010 S/S.
Leisure activities
Leisure activities are experiencing a revolution, from material comfort to spiritual enjoyment, from physical
to virtual entertainment. More people are choosing to stay at home surfing the Internet, watching movies
and meeting friends. They tend to organize social activities at home, which raises requirements for home
textiles (see figure 7 and figure 8).
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Figure 7.
Comparison of the importance of leisure activities in Beijing, Shanghai and
Guangzhou
Beijing
Shanghai
Guangzhou
1.4
1.2
1
0.8
0.6
0.4
0.2
0
Source: China Textile Development Report 2010 S/S.
Figure 8.
Comparison of the importance of leisure activities in different income
groups
2000-5000RMB
5000-10000RMB
above10000RMB
60
50
%
40
30
20
10
0
Source: China Textile Development Report 2010 S/S.
30
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Awareness of fashionable lifestyle
Figure 9 reveals that a considerable number of people in all three cities follow a lifestyle in which they ‘pay
attention to fashion info’, ‘closely follow the trend’, eat a ‘healthy diet’, are ‘interested in high-tech products’,
and ‘like travelling and outdoor sports’.
Such awareness makes consumers put more emphasis on fashionable sportswear and casual wear, and
maintain an interest in new and stylish goods.
Figure 9.
Comparison of awareness of fashionable lifestyle in Beijing, Shanghai and
Guangzhou
Beijing
Shanghai
Guangzhou
2.5
2
1.5
1
0.5
0
Source: China Textile Development Report 2010 S/S.
Figure 10.
Comparison of awareness of fashionable lifestyle in different income groups
2000-5000RMB
5000-10000RMB
above10000RMB
70
60
50
40
30
20
10
0
Source: China Textile Development Report 2010 S/S.
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Fashion information channels
‘Fashion newspaper and magazine’, ‘TV’, and ‘Internet’ are the top three ways for people to get fashion
information, and there are only slight differences among the three cities or the three income groups.
Figure 11.
Comparison of fashion information channels in Beijing, Shanghai and
Guangzhou
Beijing
Shanghai
Guangzhou
.
2
1.5
1
%
0.5
0
Fashion
newspaper
and
magazine
TV
Shopping
mall
Friends
Movies
Internet
Outdoor Mobile phone
advertising newspaper
Source: China Textile Development Report 2010 S/S.
Figure 12.
Comparison of fashion information channels in different income groups
2000-5000RMB
.
5000-10000RMB
TV
Friends
above10000RMB
70
60
50
40
%
30
20
10
0
Fashion
newspaper
and magazine
Shopping mall
Movies
Internet
Outdoor
Mobile phone
advertising newspaper
Source: China Textile Development Report 2010 S/S.
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Consumer self-evaluation on dressing
A surprisingly high percentage (above 45% in all three cities) of people consider themselves to have their
own style and not just follow the trend. This implies that fashion brands and enterprises should attach more
importance to product differentiation and brand positioning, to further enhance brand identity and customer
loyalty.
Figure 13.
Comparison of consumer self-evaluation in Beijing, Shanghai and
Guangzhou
.
Beijing
Shanghai
Guangzhou
60
50
40
30
20
10
0
Fashionable, closely follow Not outstanding, yet not Do not care about fashion, Have my own style, not
the trend
'out'
wear whatever I feel like
just follow the trend
Source: China Textile Development Report 2010 S/S.
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THE CHINESE MARKET FOR CLOTHING
Figure 14.
Comparison of consumer self-evaluation in different income groups
2000-5000RMB
5000-10000RMB
above10000RMB
60
50
40
30
20
10
0
Fashionable, closely Not outstanding, yet not
Do not care about
Have my own style, not
follow the trend
'out'
fashion, wear whatever I just follow the trend
feel like
Source: China Textile Development Report 2010 S/S.
5.2.2.
Diversification of demand
As consumers’ demands have diversified, they are employing different consumption behaviours. The
luxury market is growing, attracting brands such as LV and Armani. High-end consumers, who are often
loyal buyers, attach great importance to style, quality and brand image. Brand apparel also appeals to midend consumers, but they tend to have a weak brand loyalty, while price continues to be the determining
factor influencing the buying behaviour of low-end consumers.
Polarization is a distinct characteristic of the consumption of textiles and clothing in China. Because of
increasing income and rising living conditions, markets for both high-end and low-end clothing are
increasing sharply, with an overall trend of becoming more fashionable, functional and differentiated. China
is the largest mass fashion market in the world.
5.3.
Channels and distribution
With the Administrative Measures on Foreign Investment in Commercial Areas announced in April 2004, a
more liberalized business environment is available for retailers, who are expected to expand at an even
faster rate in China. Retailers such as Zara and H&M are growing rapidly.
In addition to improving efficiency, giant foreign retailers in China will accelerate their expansion – mostly
through direct investment or franchising. Whatever practices they adopt, they usually handle
merchandising, sourcing and distribution themselves.
In this post-WTO accession transition period, foreign retailers are itching for a chance to expand their
businesses. A typical example is Carrefour. Affected by the financial crisis in 2008 and 2009, Carrefour
earned total gross revenues of 96 billion euros in 2009, 1.4% down from the previous year. Nevertheless,
its performance in China is outstanding: Carrefour’s gross revenue increased by 16% in 2009.
The fast expansion and excellent performance of global retailers in China during the global financial
tsunami has proved the growth and market prospects in China. What is more important is that most of
these retailers are sourcing from developing countries and LDCs.
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6.
6.1.
The domestic garment market: a micro view
The players in the market
After the transition period following China’s accession to WTO, the Chinese market has opened up further,
which is encouraging international giant retailers to explore the inland market and expand market share
there as well. New retail formats such as fast fashion (like Zara and H&M) have been booming, and these
newcomers have developed a new channel of importing from LDCs.
6.1.1.
Garment retailers
Retailers play a vital role as distribution channel, buyer and importer. In the last decade, clothing
consumption has diversified: both high-end and low-end markets have been expanding and becoming
more fashionable. New retail formats are emerging; outlet, fast fashion and outdoor specialty stores have
created new demand for textiles and clothing.
The department store was once a well-established retail format in China. Few department stores sell
brands originating from LDCs. They focus on high fashion goods, mostly processed in the European Union
and United States. In department stores, major categories sourced and manufactured in LDCs are casual
wear and sportswear brands such as Lee, Tommy Hilfiger, Adidas, and Nike.
The department store in China is not exactly the same format as it is in Western countries. In China,
operating a department store is more like venue rental and management, rather than brand or goods
selection.
There are two typical types of department stores in China. One is the state-owned department store, such
as Brilliance Group’s Oriental Shopping Center. The other type is the joint-venture department store, such
as Shanghai Jin Jiang Dickson Center, the Beijing Yansha and Citic Square.
Marks and Spencer, a United Kingdom department store, arrived in China and began its business in
Shanghai in 2008.
Shanghai Brilliance Group was co-established by four big public companies in 2003. With a turnover of
RMB 97.9 billion, Brilliance Group became the biggest distributor in China in 2009. Thanks to its particular
background in Hong Kong, China, Jin Jiang Dickson is not only a department store, but also the licensee of
many international brands (Polo, Ralph Lauren and Tommy Hilfiger) in greater China.
Beijing Yansha Friendship is one of the high-class department stores in China. Invested in by Beijing
Government and Lufthansa German Airlines, it is the store of first choice for middle-class consumers.
Specialty stores and chain stores are becoming increasingly popular in China. During the first phase of
entering China, many international brands, especially casual wear and sportswear, choose to set up chain
stores in the central business district to reinforce brand image.
Casual wear brands entered the Chinese market in the early 1990s. Baleno, Giordano, and Jeanswest
were the main competitors and experienced a quick development. The number of Jeans West stores in
China exceeded 2000 in 2009. Meanwhile, some domestic brands like Metersbonwe have expanded even
faster. Now Metersbonwe ranks first in sales in the casual wear market.
The Specialty Store Retailer of Private Label Apparel (SPA) represented by Uniqlo and Muji from Japan
has grown in recent years. By mid-2010, Uniqlo had opened 47 stores in the mainland, plus 13 stores in
Hong Kong, China and the ‘taobao shop’ e-retailing website, bringing its total number of stores in China to
61.
The specialized superstore, such as Decathlon – a French specialty superstore for outdoor sports – is a
newly emerging retailing form. So far, Duathlon has 23 stores in China and more than 400 around the
world. As a well-known specialized sportswear superstore, Decathlon has more than 15 production
factories in Shanghai, and many more production bases in LDCs such as Thailand, Cambodia and Viet
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THE CHINESE MARKET FOR CLOTHING
Nam. One third of its products are procured within China. Consequently, customers could purchase
apparel and outdoor supplies in China’s Decathlon sourced from all over the world.
Hypermarkets and discount stores are booming, and are key players for imported goods. They take up an
increasing market share in China’s retail sector and have become popular shopping places for mass
consumers. In hypermarkets, the majority of local apparel brands are made domestically, although some
globally sourced sportswear brands are generally made in LDCs, such as Nike shoes made in Viet Nam,
and T-shirts made in Sri Lanka.
In the transition period after China’s accession to the WTO in 2001, hypermarkets such as Carrefour and
Wal-Mart achieved great growth in the Chinese market. With the first-tier cities market becoming saturated,
large-scale supermarkets have gradually entered the second-tier and third-tier cities. Since the outbreak of
the global financial crisis in 2008, the performance of the Chinese market and its ability to recover rapidly
have made foreign hypermarkets pay more attention to their business in China. In 2009, ‘expansion’
became the keyword for Carrefour, Wal-Mart, Lotus and others.
Carrefour had the biggest turnover among all the hypermarkets, while Wal-Mart had the greatest number
of stores in China (see table 20).
Table 20. Hypermarkets in China, 2009
Hypermarkets
Turnover (billion yuan)
Rank*
Number of stores
Carrefour
36.6
7
109
Wal-Mart
34.0
9
146
Tesco
13.3
26
58
Metro
12.0
29
43
Lotus
11.1
33
77
Source: China General Chamber of Commerce, China Commercial Information Center.
* Rank in mainland China.
Fast fashion and low-priced fashion as a new model of fashion retailing is becoming more and more
popular in the Chinese apparel market. Although fast fashion is not a typical kind of retail format, the stores
with fast fashion philosophies represented by Zara, H&M, C&A, Next and UR still achieved good results in
China. This kind of store attracts consumers with more choices of style, shorter product cycles and lower
price ranges. The fast fashion business model is changing the Chinese clothes market and inspiring some
Chinese apparel retailers. Some local brands, such as Metersbonwe, Nuoqi and Peacebird, have given
fast fashion a try. But there is still a long way to go for Chinese local brands and retailers. Zara realizes the
fast fashion business model through its strong design capacity and highly effective global supply chain
management, which is the core of its business model and cannot be easily copied. Unlike multinational
retailers, the Chinese fast fashion retailers tend to source domestically or rely on their own private brand.
Most Chinese apparel brands and retailers they have just started their first steps towards this business
model.
Zara procurement overseas accounted for 90% of the total. Origins including Morocco, Bangladesh, India,
Cambodia, Indonesia, Turkey and Viet Nam make up its large purchasing base around the world.
The rapid development of fast fashion also reflects the consumption characteristics in modern China. The
low-priced fashion market is growing fast; meanwhile, the high-end fashion (including luxury) market is also
expanding. In low-end clothing, people demand not only low prices but also better presentation of fashion,
function and quality. The new brand of fashion market requires high quality, special designs, fast delivery
and reasonable prices.
Since the beginning of the new century, the reform of housing policy has made great changes of living, and
many large residential communities have been built. Shopping malls have been built in China in the past
decade at an amazing speed, and are performing well in terms of gathering customers and extending
brand image. The Gate Way and Super Grand Mall are successful examples for this kind of format. Super
Grand Mall by Chia Tai Group is one of the biggest corporations in Thailand.
36
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The outlet store is a form of mass sales which helps to rapidly decrease inventories. There are two types:
factory outlets and brand outlets. The factory outlet is directly set up by the brand factory. Its main products
are surplus, overstocked products and samples. The brand outlets generally sell well-known brands. In the
big cities of China, people drive to outlets in the suburbs during the weekend. This is becoming a lifestyle
of urban residents. Famous brands with discounts and a variety of choices work together to make this
distribution channel a major preference for many customers. Outlets sell a wide range of brands, including
top brands, casual wear and sportswear, which could also be procured from LDCs (Adidas and Nike).
Shanghai Outlets, for example, an investment by the Brilliance Group and Wharf (China), covers a land
area of 160,000 square metres. There are 150 brands in it, of which most are well-known brands such as
Zegna, Dunhill, Givenchy, Reebok and Nike.
In 2009, the scale of national online shopping reached RMB 267 billion, while the number of people
shopping online reached 130 million. Garments are the best-selling products online. In 2009, online
garment retail sales increased by 97% from the previous year. The market increased from RMB 15 billion
in 2007 to RMB 64 billion in 2009. It is estimated that online garment retailing in 2010 will increase by 80%
over 2009, reaching RMB 115 billion yuan.
6.1.2.
Major brands
Different sectors use different sourcing strategies.
•
Sportswear and casual wear are the most common types procured in LDCs.
•
Little international children’s wear is sourced from LDCs.
•
For menswear, the majority is processed in clusters in China with large-scale, advanced facilities
and skilled workers. Developed countries such as Italy and the United Kingdom offer high-quality
suits in fashionable designs and unique fabrics.
•
Womenswear is generally produced domestically. If sourcing from LDCs, it is complicated to
manage the supply chain due to the fast changing demand, small batch quantities, and large variety
of accessories and styles.
•
The production of underwear requires skilled workers, so most underwear is procured in China.
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Figure 15.
Main foreign apparel brands in the Chinese market
Figure 16.
Main local apparel brands in the Chinese market
38
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6.2.
Apparel procurement practices
The typical procurement criteria and procedures of some big global sourcing distributors such as
Carrefour, Decathlon, Jin Jiang Dickson, Brilliance Group and manufacturers like Donglong, obtained
through in-depth interviews with their business executives, are the guiding principles for LDCs in evaluating
and enhancing their competitiveness.
6.2.1.
Global sourcing for the Chinese market
The ASEAN countries include the main developing countries and LDCs exporting to China. Countries
performing well in the aspects described below will be preferred by global sourcing companies, though
some big companies will intentionally allocate orders to different LDCs with the aim of spreading risk.
6.2.1.1.
Comprehensive investment environment
Infrastructure, trade policy, labour skills and cost are vital for the comprehensive investment environment.
A complete supply chain from raw material to textiles, from manufacturing to finishing is strongly preferred,
since this achieves one-packaging service and one-stop sourcing. Being close to the market also helps to
reduce lead times and cost. Speed and efficiency is crucial when clearing customs.
6.2.1.2.
Overall vendor qualification
Corporate social responsibility (CSR) and environment protection are first priorities when evaluating the
vendor. The draft of the Social Responsibility Standard (ISO 26000) formulated by the International
Organization for Standardization was finalized in July 2010 as planned. Versatility and processing
technologies are becoming important in addition to cost.
6.2.1.3.
Political and social factors
Labour working behaviour and worker motivation have a strong influence on efficiency. Political stability
reduces the transaction costs and risks for suppliers and buyers as well.
As an export-processing powerhouse, China outperforms many LDCs in certain aspects. For example, a
retailer can achieve delivery of goods from any place inside mainland China to its Shanghai stores in 24
hours and even less – in approximately 10 hours – from neighbouring Jiangsu and Zhejiang Provinces. By
contrast, goods from LDCs may take weeks to arrive in Shanghai. However, some LDCs have
compensating strengths, as shown in table 21.
6.2.2.
Vendor selection
When selecting vendors, sourcing companies are paying increasing attention to factors such as cost,
services, CSR compliance, products, and environment protection.
Brands do not design themselves. Factories have to recommend their collections to buyers. Design and
research and development (R&D) capability are important in this regard.
A factory must provide a guarantee that it passes toxicity tests for harmful elements such as formaldehyde
and heavy metal. Sourcing enterprises will invite a third party to conduct spot checks every year.
The criteria for vendor evaluation are almost the same. However, the priority varies from product to
product, brand to brand, and buyer to buyer. For example, delivery time is important for seasonal goods
and fashion products, whereas costs are fundamental for basic items.
To enhance their competitiveness, vendors in developing countries and LDCs have to meet buyers’ criteria
in the Chinese market (see table 22).
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Table 21. Comparative advantages of Chinese and LDC vendors
China
LDCs and other developing countries
Better infrastructure
Complete supply chain
Variety of products, full range of sectors, One-stop
buying
Industrial clusters
Skilled and well trained labour
Political stability
Lower labour cost
Favourable trade policy, fewer trade barriers and disputes
Close to natural fibre suppliers
Industrial clusters in some areas
Proximity to world markets
Table 22. The priority of market demand
Brands/retailers
MNEs
Chinese
Louis Vuitton, Chanel, Versace,
Dior, Gucci, Prada, Guess
H&M
Zara
Benetton
Youngor
Firs
Gloria
JNBY
OEM (original equipment
manufacturer),
40
Characteristics
High fashion
product
Fashion basic
product
Basic product
Consumers’ value
Vendors’ value
Fashionable style design
Design lead time
Unique patterns
Skilled labour
Durable/workmanship
Flexible facilities
Fitness
ICT/EDI
Comfort
High efficiency/advanced
facilities
Super value
Productivity
Affordable price
Lower cost
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Figure 17.
6.2.3.
Criteria for vendor evaluation
Procurement procedure
The procedure of apparel sourcing is almost the same except for the complicated size, colour and material
confirmation before the regular order is made (see figure 17).
To reduce risks, factory audits are sometimes carried out by a third party, such as ITS-Intertek, SGS or
CSCC. The audit mainly covers three aspects: corporate social responsibility (CSR), quality systems and
processing authentication.
CNTAC issued CSC9000T (China Social Compliance 9000 for the Textile and Apparel Industry) in 2005,
and there has been one revision so far. More than 200 enterprises are implementing this management
system.
27
SA8000 is the most frequently used CSR authentication. Up to 31 March 2009, 223 enterprises had
acquired SA8000 authentication in China, among which 105 are manufacturers of accessories, apparel,
footwear and textiles.
27
Corporate Social Responsibility Alliance. www.sa-intl.org.
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THE CHINESE MARKET FOR CLOTHING
Figure 18.
Material procurement procedure
Collection design
Select candidate suppliers in the supplier database
Make request
Sampling, make enquiries, delivery time
Pilot production
Factory audit
Regular order
Consignment
Quality inspection
Payment
Figure 18 shows a common procurement procedure. For Chinese companies, a lot of enterprises directly
purchase ready-made material without placing an order.
6.3.
Use of e-commerce and ICT procurement
Information and communications technology (ICT) is a necessary competence for buyers and suppliers, as
fashion and market changes are critical for success.
ICT in global sourcing companies often covers the aspects described below.
6.3.1.
Information platform and database
Enterprise portals
Textile enterprise portals are the main platform for electronic commerce. Table 23 shows 10 leading textile
and garment enterprises in China in 2009 for reference.
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Table 23. Leading textile and garment enterprises in China, 2009
Name
Shandong Ruyi
Group Co., Ltd
Huafu Top Dyed
Melange Yarn Co.,
Ltd
Website
www.chinaruyi.com
www.e-huafu.com
Nanshan Textile
Garment Co., Ltd
www.nanshanchina.com
Wujiang Fuhua
Weaving Co., Ltd
www.texfuhua.cn
Tongkun Group Co.,
Ltd
www.zjtkjt.com
Shanxi Hongji SciTech Co., Ltd
www.hjfzw.com
Shanghai Luolai
Home Textile Co.,
Ltd
www.luolai.com.cn/
Ningbo Shenzhou
Knitting Co., Ltd
Geron Co., Ltd
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www.shenzhouintl.com
www.geron-card.com
Sales in 2009
(million yuan)
Product lines
Telephone
10 710
Rabbit hair spinning,
textiles and clothing,
cotton textiles, cotton
printing and dyeing,
knitting, fibre, jeans
and real estate.
3 196
Melange yarn, high
quality new style raw
yarn, solid yarn, semiworsted yarn, and
open-end spinning
yarn.
8 706
Largest production
base of worsted
woollen and compact
spinning fabrics in the
world, and the most
modern production
base of high-class
suits in China.
-
Chemical fibre fabrics
and woven fabrics.
86-512-63500999
13 800
Polyester and terylene
filaments. Leading
products include
polyester chip PET
and terylene filaments
including POY, DTY
and FDY.
86-573-88187815
-
Ring spinning frame
series, combing frame
series, uni-lappers,
uni-lapper combines,
rotor spinning frames,
roving frames and jet
looms.
86-354-3966-668
Home textiles.
86-21-5481-1111
Fabric knitting, dyeing
and finishing,
embroidery, cutting
and sewing.
86-574-86980888
Metallic card clothing,
flexible flat-top, flexible
woollen card clothing,
stationary flat,
integrated cylinder, top
86-513-85178888
902
(year 2008)
6 000
300
86-755-83735522
43
THE CHINESE MARKET FOR CLOTHING
Name
Sales in 2009
(million yuan)
Website
Product lines
Telephone
comb and combing
roller and other
carding parts.
Xinyuan Co., Ltd
www.haiansilk.com
2 050
Quality cocoon silk,
silk clothing, silk
textiles.
86-513-88813706
Large scale e-procurement websites
China’s textile and garment enterprises mainly use the major comprehensive and specialized websites for
e-procurement (see table 24).
Table 24. Main trading platforms in China
Website
www.globalsources.com
www.hktdc.com
http://exporter.alibaba.com
www.chinabidding.com
www.tradekey.com
www.texindex.com
www.tnc.com.cn
www.ebnew.com
44
Average daily traffic
(week average)
Products and services
Notes
270 000
Provides both buyers and sellers
with verified supplier systems,
efficient domestic trade
promotion and one-stop shopping
service.
Comprehensive website
Tel.: 800-870-8886
94 800
A global trade promotion agency,
mainly for SMEs.
Comprehensive website
Tel.: 800-820-5188
69 966
‘Gold supplier’ system helps
SMEs to expand international
trade and gain business
opportunities and orders,
including demonstration to
overseas buyers.
Comprehensive website
Tel.: 400-600-2688
54 600
An influential B2B e-procurement
trading platform in bidding area,
featuring independent
procurement.
Comprehensive website
Tel.: +86-10-5885-1111
ext. 801/808
50 400
A world-renowned B2B website,
practical and export-oriented,
specifically for SMEs.
Comprehensive website
Good performance in
Southeast Asia
Tel.: +1-800-983-4724
25 200
Service provider to China’s textile
enterprises, traders and
exporters.
Specialized website
China’s largest online
textile trade website
Tel.: +86-571-9765-8000
16 200
Serving a wide range of
customers from more than 80
countries in the world; covering
raw materials, fabrics, home
textiles, clothing and 13 other
textile areas.
Specialized website
Tel.: +86-571-5683-1366
A website where purchasers can
release procurement information,
conduct price negotiations, obtain
information about partners and
market conditions, and so on.
Specialized website
No English-language
website
Tel. (for suppliers): +8610-5885-1111 ext.
9 600
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Website
Average daily traffic
(week average)
Products and services
Notes
801/808; Tel. (for
purchasers) +86-105885-1133 ext. 830
www.sinotex.cn
8 400
For the past 10 years, it has
served 100,000 textile
manufacturers in over 100
countries and regions in the
world. It also provides one-stop
e-commerce solutions for textile
enterprises.
www.bcnq.com
1 440
Offers various textile and clothing
product information to textile and
apparel buyers.
Professional website
No English-language
website
Tel.: +86-532-6688-6655
Specialized website
Table 25. Some Chinese garment retailers
Name
Website
Shanghai Brilliance
(Group) Co., Ltd
www.bianliangroup.com
Address: 19F of New-century
Building, 501 Zhangyan
Road, Pudong District,
Shanghai
Tel.: +86-21-5836-363
E-mail:
[email protected]
Shanghai Jin Jiang
Dickson Center
www.shjjd.com
Address: 400 Chang Le
Road, Shanghai
Tel.: +86-21-6472-6888
www.yansha.com.cn
Address: No. 52,
Liangmaqiao Road,
Chaoyang District, Beijing
Tel.: +86-10-6465-1188
www.citicsquare.com
Address: No. 1168 West
Nanjing Road, Jing’an
District, Shanghai
Tel.: +86-21-6218-0180
www.jeanswest.com
Address: 10F, Xuri Mansion,
Juhuayi Road,
Jiangbeiyunshan, Huizhou,
Guangdong
Tel.: 4008-872-872
www.metersbonwe.com
Address: No. 800 East
Kangqiao Road, Shanghai
201319
Tel.: +86-21-3811-9999
E-mail:
[email protected]
Department store
Beijing Youyi Shopping
City Co., Ltd
Shanghai Citic Square
Jeanswest
Specialty store and
chain store
Metersbonwe
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Contact
45
THE CHINESE MARKET FOR CLOTHING
Name
Shopping mall
Online store
Website
www.bloqp.com
Address: No. 2888
Huqingping Highway, Qingpu
District, Shanghai
Tel.: +86-21-5975-6060
Vancl
www.vancl.com
Address: 10F, Building A,
Landgent Center, No. 20,
Middle East 3rd Ring Road,
Chaoyang District, Beijing
100022
E-mail: [email protected]
Ihush
www.ihush.com
Fax: +86-21-6276-3319
E-mail:
[email protected]
www.m18.com
Address:5F, Building20,
Baoshi Mansion, No. 487
Tianlin Road, Shanghai
Tel.: +86-21-9510-5225
Shanghai Brilliance
(Group) Co., Ltd
www.bianliangroup.com
Address: 19F New-century
Building, 501 Zhangyan
Road, Pudong District,
Shanghai, China.
Tel.: +86-21-5836-363
E-mail:
[email protected]
Shanghai Jin Jiang
Dickson Center
www.shjjd.com
Address: 400 Chang Le
Road, Shanghai
Tel.: +86-21-6472 -888
www.yansha.com.cn
Address: No. 52,
Liangmaqiao Road,
Chaoyang District, Beijing
Tel.: +86-10-6465-1188
www.citicsquare.com
Address: No. 1168 West
Nanjing Road, Jing’an
District, Shanghai
Tel.: +86-21-6218-0180
www.jeanswest.com
Address: 10F, Xuri Mansion,
Juhuayi Road,
Jiangbeiyunshan, Huizhou,
Guangdong, China
Tel.: 4008-872-872
www.metersbonwe.com
Address: No. 800 East
Kangqiao Road, Shanghai,
201319
Tel.: +86-21-3811-9999
E-mail:
[email protected]
Shanghai Outlets
M18
Department store
Beijing Youyi Shopping
City Co., Ltd
Department store
Shanghai Citic Square
Jeanswest
Specialty store and
chain store
Metersbonwe
46
Contact
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THE CHINESE MARKET FOR CLOTHING
Name
Shopping mall
Website
www.bloqp.com
Address: No. 2888
Huqingping Highway, Qingpu
District, Shanghai, China
Tel.: +86-21-5975-6060
Vancl
www.vancl.com
Address: 10F, Building A,
Landgent Center, No 20,
Middle East 3rd Ring Road,
Chaoyang District, Beijing,
100022, China
E-mail: [email protected]
Ihush
www.ihush.com
Fax: +86-21-6276-3319
E-Mail:
[email protected]
www.m18.com
Address: 5F, Building 20,
Baoshi Mansion, No. 487
Tianlin Road, Shanghai
Tel.: +86-21-9510-5225
Shanghai Outlets
Online store
M18
6.3.2.
Contact
ERP and MRP
All of the above aspects involve both parties in sourcing and processing. It is essential for suppliers to
possess ICT systems that are compatible with those of their buyers. For example, Decathlon uses ASG400
in its bill of material (BOM) management.
The following ERP systems are used in apparel enterprises.
SAP R-3
SAP R-3 is the most widely used ERP system. Over 80% of Fortune 500 companies use SAP. Nike,
Decathlon and Benetton are all SAP users.
Intentia MOVEX
MOVEX is another prestigious ERP system specialized in the apparel industry. It offers management over
28
ERP, CRM, SCM, VCM, BPM and E-biz. Its users include Adidas, Morgan and the North Face. Youngor,
the number one manufacturer of suits and shirts in China, also uses MOVEX.
IBM PRMs
Motion planning arises in many other areas such as intelligent CAD (virtual prototyping) and mixed reality
systems (training and computer-assisted operation). A single class of planners, called probabilistic
roadmap methods (PRMs), has proven effective on problems from all these domains. The strengths of
PRMs, in addition to versatility, are simplicity and efficiency even in high-dimensional configuration spaces.
In addition to software, relevant facilities such as Datacolor, digital cutting machines, printing machines,
auto warehousing and unit product system (UPS) are necessities to directly carry out QR strategy. Cutting
time and costs while improving precision, the combination of software and digital equipment and, more
importantly, online design co-research will enhance both buyers’ and suppliers’ quick response to fashion
changes and competitiveness.
28 www.intentia.com.cn/
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THE CHINESE MARKET FOR CLOTHING
According to research by China’s textile industry into the combining of computerization and
industrialization, we can see that the development of this combination has a positive impact on enterprises’
quick response and profitability. (See figures 18 and 19).
Figure 19.
Correlation between level of computerization and quick response capability
70
67.5
65
62.5
Speed of response to the market
60
57.5
55
Enterprise group
of low level
Enterprise group
of medium level
Enterprise group
of high level
Source: China Textiles Development Report 2010 S/S.
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Figure 20.
Correlation between level of computerization and profitability
2
1.8
1.6
1.4
1.2
1
Per capita profit (ten thousand
yuan)
0.8
0.6
0.4
0.2
0
Enterprise in
preparation
stage
Enterprise in
preliminary
application
stage
Enterprise in full
application
stage
Source: China Textiles Development Report 2010 S/S.
Giant universal management software: represented by SAP
This sort of software is preferred by minority giant enterprises, such as Li-Ning and K-Boxing. The
impression is more important than the function. Therefore, after installation, only the basic application
modules of the software (financial management, OA etc.) are used. Enterprises prefer to use other
professional software or even develop software by themselves for their business management; this
behaviour causes a lot of waste.
Shanghai style clothing management software: represented by Baison, Burgeon
Developed in Yangtze River Delta, this sort of software has advantages for product standardization. It
offers complete functionality and easy-to-use operations.
Professional clothing management software: represented by Xuner, Rossware, Hanson
Based in Pearl River Delta and focusing on practicability, this sort of software is practical, powerful, flexible
and feasible, and basically satisfies all personalized needs at a reasonable price. In addition, individuals
have their specialty strengths: Xuner in distribution, Rossware in production and Hanson in
comprehensiveness and ease of use. However, there are also some disadvantages: such systems can be
complicated to use and maintain. Enterprise users have to employ professional IT engineers for daily
management and maintenance; otherwise the system may become unstable.
Small management software: represented by Grasp, Miall, MPSoft
Grasp is general management software, while the other two are more specialized. The main attraction of
these systems is that each set costs only thousands of yuan. Their functions are so simple that they can
only be used on purchase-sell-inventory management for small businesses in their early development, or
for entities such as single clothing store.
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THE CHINESE MARKET FOR CLOTHING
6.4.
Consumer preferences
6.4.1.
Growing needs for natural fabrics
With increasing product knowledge and surging purchasing power, mainland consumers in China are
developing higher demands for quality and comfort in clothing. They usually prefer apparel made of natural
fabrics. Consumers are concerned about ‘labels of material composition’ and the product’s impact on
‘health’. Consumers are inclined to buy garments made of ‘natural fibres’ and support green products (see
table 26).
Figure 21.
Consumer fabric preferences in Beijing, Shanghai and Guangzhou
50
45
40
35
% 30
25
Beijing
20
Shanghai
15
Guangzhou
10
5
0
Prefer natural
material, not
synthetic fabrics
Focus on comfort,
Pay attention to
not whether it is fashion, not material
natural material or
not
Never note the
material labels
Source: China Textile Development Report 2010 S/S.
Concerning consumers’ fabric preferences, ‘comfort’ ranks first, followed by ‘love natural material, not
synthetic’.
When it comes to environment-friendly textiles, ‘use organic, recyclable, degradable and renewable
resources in production’ and ‘use dyes and chemical agents in production’ are the top two choices. People
who choose ‘environment-friendly in circulation, use simple packing, reduce plastic packing’ account for
the smallest percentage. Compared with consumers in Beijing and Shanghai, those in Guangzhou pay
more attention to ‘reduce energy consumption and environment pollution in production’.
50
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Figure 22.
Consumer understanding of environment-friendly textiles in Beijing,
Shanghai and Guangzhou
Beijing
Shanghai
Guangzhou
50
45
40
35
.
%
30
25
20
15
10
5
0
Use organic, recyclable, Use dyes and chemical
degradable and
agents in production
renewable resources in
production
Reduce energy
consumption and
environment pollution in
production
Environment-friendly in
circulation, use simple
packing, reduce plastic
packing
Source: China Textile Development Report 2010 S/S.
6.4.2.
Country origin preference and price consciousness
The high fashion brands mainly originate from the European Union and, in most cases, the garments are
also made in these countries, especially in Italy and France. Consumers are concerned about the country
of origin and manufacture. When they have to pay more than RMB 1,000 for just one T-shirt or a pair of
pants, they prefer items made in developed countries rather than developing ones.
On the other hand, consumers are more prices sensitive to sportswear, casual wear and mass products
and do not care very much about country of origin. Table 26 shows the result of a survey on consumers’
attitudes toward garment. It is ranked according to the level of agreement with each statement for
consumers. Consumers care more about garment ‘quality’, rather than ‘price’, ‘mass media’, ‘star’s image’
or ‘others’ comments’. They think that ‘good brand reputation’ has a positive impact on their purchase
decisions, but whether the brand is domestic or foreign does not matter so much. Actually, these brands
are usually made in ASEAN countries or other LDCs, and the global sourcing of these brands creates
opportunities for LDC exporters.
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THE CHINESE MARKET FOR CLOTHING
Table 26. Consumer attitudes toward garments
Rank
Attitudes
N
Mean
Std
1
11) I stress the coordination of good looks and comfort
250
1.752
1.054 011
2
10) I like wearing comfortable, relaxed clothing
250
1.852
1.132 797
3
7) Good brand reputation has a positive impact on my
purchase decisions
250
2.104
1.224 41
4
13) I am more inclined to buy clothes made of natural
fibre rather than synthetic fibre
250
2.108
1.199 203
5
15) I prefer clothes that fit me well, regardless of the
price
250
2.164
1.462 072
6
8) I resist products made by enterprises that violate
environmental standards
250
2.172
1.384 951
7
4) I care more about the inherent quality, rather than
media publicity
250
2.184
1.399 277
8
12) When purchasing clothing, I am concerned about
labels and material composition and its impact on
health
250
2.22
1.369 343
9
17) Image and expertise of sales attendants have a
great impact on my purchase decisions
250
2.48
1.464 986
10
14) I often do ‘comparative shopping’, and make
purchase decisions carefully
250
2.504
1.510 998
11
16) I will bargain
250
2.772
1.526 215
12
2) Wearing clothes is my personal affair; I do not care
about others’ evaluation
250
2.864
1.675 929
13
3) I prefer to spend more money on buying high-quality
clothing
250
3.18
1.675 359
14
1) I like to wear conspicuous clothing
250
3.196
1.574 643
15
18) The location of shopping malls plays a big role in
my purchasing decisions
250
3.496
1.752 217
16
6) I don’t think the purchase of domestic brands and
foreign brands is much different
250
3.564
1.915 353
17
5) Star image greatly affects my purchases
250
4.316
1.823 58
18
9) I pay more attention to looks rather than the comfort
of clothing
250
4.352
1.859 55
Source: A Research on Consumers’ Values and the Trends of Garment Consumption, April 2008 (Sample size: 250). Research
Center of Textile Economics and Management, Donghua University.
Note: Seven-point Likert scale, 1 – strongly agree, 7 – strongly disagree.
6.4.3.
Quality and comfort
‘Comfort’ is the most important decision factor for consumers when purchasing clothing, even more
important than ‘good looks’. In today’s Chinese apparel market, most consumers consider fit, quality and
comfort of apparel the most important, and that is also a good reason why consumers prefer natural
fabrics.
52
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Figure 23.
Customer evaluation criteria for garment attributes
Mean
3.5
3
2.7
2.5
2
1.5
1.752
1.8
1.8
1.864 1.884
1.988 2.068
2.256
2.788 2.868
2.384
1.428 1.508
1
0.5
0
Source: A Research on Consumers’ Values and the Trends of Garment Consumption, April 2008 (Sample size: 250). Research
Center of Textile Economics and Management, Donghua University.
Note: Seven-point Likert scale: –3 – least important, 0 – indifferent, +3 – most important.
6.4.4.
Consumers’ apparel preferences in three cities
Consumption of high-end brands is growing at an annual rate of 20%. Overall, the majority of consumers
think that a price of less than RMB 600 for a dress is acceptable (see figure 24). In Shanghai, 44.8%
consumers take the price range of RMB 300–600 as reasonable and affordable. Only a small proportion of
consumers will purchase a high-priced dress (more than RMB 1,000). The situations for T-shirts and jeans
are similar (see figure 25 and figure 26). It is worth noting that consumers in Shanghai consider RMB 300–
500/300–600 most acceptable, which is quite different from the situation in Beijing and Guangzhou, where
consumers prefer lower prices.
This kind of apparel includes brands registered and produced in China, brands registered abroad but
produced in China, and brands from developed countries sourced globally.
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THE CHINESE MARKET FOR CLOTHING
Figure 24.
Price preference for dresses in Beijing, Shanghai and Guangzhou
60%
40%
20%
0%
-20%
<300
300-600
600-1000
>1000
Beijing
24.90%
31.80%
14.40%
7.50%
Shanghai
34.40%
44.80%
14.60%
2.50%
Guangzhou
37.50%
31.50%
22.80%
7.60%
Source: China Textiles Development Report 2010 S/S.
Figure 25.
Acceptable price level for T-shirts in Beijing, Shanghai and Guangzhou
Beijing
Shanghai
Guangzhou
80
70
60
%
50
40
30
20
10
0
Below 300RMB
300-500RMB
500-1000RMB
Above 1000RMB
Source: China Textile Development Report 2010 S/S.
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Figure 26.
Acceptable price level for jeans in Beijing, Shanghai and Guangzhou
Beijing
Shanghai
Guangzhou
60
50
% 40
30
20
10
0
Below 300RMB
300-500RMB
500-1000RMB
above 1000RMB
Source: China Textile Development Report 2010 S/S.
Consumers prefer buying clothes in department stores, shopping malls and specialty stores (see figure
27).
Figure 27.
Preferred purchasing channels in Beijing, Shanghai and Guangzhou
60.0
50.0
40.0
30.0
20.0
10.0
0.0
Department
store and
shoppingmall
Specialty
store
Discount store Hypermarket Corner store
Beijing
Shanghai
On line
Customized
Guangzhou
Source: China Textiles Development Report 2010 S/S.
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55
THE CHINESE MARKET FOR CLOTHING
Box: Why do retailers source in LDCs and other developing countries? Why do they
choose not to? – A retailer’s consideration
A foreign invested OEM company, specialized in hats and accessories, produces for well-known international
giants such as Nautica, Disney, Adidas, Nike, Levi’s, Puma, GAP and Wal-Mart. The group is located in
Shanghai and Jiangsu and has five large factories with more than 10,000 employees.
It makes 85% of its products locally and sources 15% globally. As the RMB is expected to appreciate, the
company will enlarge the proportion of global sourcing, which will also ensure diversity of supply and meet
world demand.
However, the following factors have an effect on further cooperation with developing countries and LDCs.
•
China has not built a close and mature financial and commercial relation with these countries. There are
institutional and communicational barriers.
•
Due to the structure of industries and products, these countries have no comparative advantages in terms of
prices and product differentiation.
•
Problems exist in areas of credit, delivery time, efficiency of order processing, quality and transportation,
etc., which offset the advantages of low costs in India, Pakistan, Bangladesh and Thailand.
7.
Cases: The key players in China’s textiles and garment market
The cases listed in this section fall into two groups: local suppliers such as Shenzhou Group and
Challenge Co., and multinational retailers who are buyers and distributors in China’s market. The first
group of case studies focuses on the competence, performance and upgrading of local suppliers. The
second group focuses on giant retailers that are sourcing very much from developing countries and LDCs,
which help us to better understand their development in China, the goods they source, their procurement
processes, criteria for supplier selection, and their requirements and demands of suppliers.
7.1.
Shenzhou Knitting Co., Ltd
Shenzhou International Group Holdings Limited is a private company specializing in the processing and
manufacturing of knitwear under OEM. Ningbo Shenzhou Knitwear Co., Ltd, the core of the group, was
founded in March 1990 with registered capital of US$ 2.15 million by Beilun Foreign Trade Co., Ltd,
Shanghai Knitting No. 20 Knitting Plant and a United States company. Starting from a small company 18
years ago with only 200 workers and assets of RMB 8 million, the group now owns factory area of over 133
acres, with around 43,000 employees and total assets of RMB 5.4 billion. The group has established good
cooperative relations with well-known brands and retailers such as Uniqlo, Itochu, Itokin and Ito-Yokado,
and sportswear brands such as Nike, Adidas, Puma, Fila and Mizuno. In 2009, its total sales amounted to
RMB 6.1 billion with a growth rate of 26.4% and profits after tax of over RMB 1,253 million, while many
other firms declined. It ranks first in China’s knitting industry in terms of exports, profit and production
capacity.
Quick response, R&D innovation and technology upgrading
Attaching importance to its IT strategy, Shenzhou Group has invested RMB 10 million to construct a
network for sharing information with its customers and suppliers through the management information
software designed exclusively for processing and export-oriented companies. The company has adopted
digital and flexible facilities such as Datacolor system, UPS, CAD, semi-automatic management systems
for inventory, and barcode technology. With efficient customer service and quick response, the company
can complete and deliver samples for customers in Shanghai in as little as 12 hours. There is only a 10minute-drive between the company and Beilun Harbour: shipments can be cleared for export within a few
hours.
Shenzhou Group has an R&D team with more than 675 members as the company stresses the importance
of product development. New fabrics, styles, and products with new functions have been developed to
meet customers’ requirements and comply with cutting-edge fashion trends.
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Shenzhou owns the world’s most advanced fabric R&D laboratories. Based on sophisticated equipment
and instruments, the Shenzhou–Nike Design and Development Centre enables Shenzhou to provide new
products and services for customers all over the world.
Shenzhou and Nike have created a new mode of cooperation by combining design with processing. The
integration of manufacturing and designing enables Shenzhou to finish samples within two hours after
receiving amendment instructions from designers, and hence reduce lead time.
In May 2006, Shenzhou invested US$ 33.8 million in Cambodia to build a garment factory with a monthly
capacity of 300,000–400,000 pieces of knitwear. In the first quarter of 2009, its new garment factory with
5,000 workers in Wangjiang County, Anhui Province, has been put into operation. In the Development
Zone, the construction of its dyeing and finishing factory has been completed. In 2010, it continued to lead
the way by its capacity in designing, R&D, dyeing, finishing, trading and sales with its own brand and
stores being built.
Social responsibility
The group pays much attention to internal harmony, with a labour committee made up of representatives
from management, the party committee, trade union, the personnel department and a professional lawyer.
In addition, the arbitration team in each workshop and department resolves internal conflicts actively and
protects the workers’ rights.
There are complaint and suggestion boxes in workshops, canteens and dormitories. A cell-phone hotline is
open for employees to complain or comment anytime and anywhere so as to solve problems in time.
The group works to make the working and living conditions for workers comfortable, through means such
as arranging employees to participate in various types of insurance and financing staff disaster relief and
emergency funds. Shenzhou Charity Relief Fund, managed by the Company Charity Salvage Station,
provides one-time financial aid ranging from RMB 1,000 to 20,000 to employees suffering natural
disasters, serious disease or accidents, who have signed formal labour contracts and whose spouses,
parents or children have no regular income.
Shenzhou group also strengthens cohesion and increases labour productivity by establishing sound
working and living conditions and providing opportunities for training and career development.
The group has invested RMB 130 million to build 86,000 square metres of dormitory space for single
workers and 1,400 rooms for couples, purchased 15 shuttle buses to increase the safety and convenience
of staff, and constructed 20 canteens and a 6,000-square-metre supply centre to ensure employees have a
safe and nutritious supply of food. Staff members receive a 50% meal allowance and enjoy a big reduction
in food expenses.
Employees with good performance are awarded free tours abroad to countries such as Thailand and the
Republic of Korea. The company manages to increase labour productivity to compensate the increase in
labour cost under the principle of ‘providing the best welfare and implementing efficient management’.
Shenzhou group attaches great importance to training employees for improvement. In 2007 alone it
organized 56 training programmes of various types. Among the 30,000 employees, women workers form
the majority. Over 70% of workers come from provinces other than Zhejiang, mostly from Anhui and
Jiangsu Provinces. These workers have all taken a training course which lasts for one or two months in
Ningbo after receiving basic training in their home towns.
Environment protection
Shenzhou group was certified to ISO14001 in February 2001. The company has invested RMB 16 million
in two sewage disposal plants, which are the best in Zhejiang Province in terms of both scale and
superiority of facilities. The two plants, operated by professional companies, have a disposal capacity of
41,000 tons per day and the water discharged reaches the National first grade Integrated Wastewater
Discharge Standard.
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THE CHINESE MARKET FOR CLOTHING
As a big consumer of water and energy, the Group has gained a green reputation through efforts in energy
saving and emission reduction during its production expansion. The group invested RMB 230 million to
introduce the world’s most advanced water-energy-saving dyeing machine. It has reduced by more than
30% its consumption of steam and power, and now uses 6,000 tons of water less per day. Now in the dye
factory of Anhui Province, the treatment capacity is 15,000 tons a day. This will further cut the consumption
of water resources and reduce emissions. The company has achieved, to a certain extent, better quality in
dyeing and less use of dye stuff, reduced pollution and costs, and met the environmental requirements of
customers through importing dyeing staff and machinery and using low-bath-ratio techniques.
7.2.
Challenge Knitting Co. - Industry upgrading
In recent years, China’s textile and garment manufacturing in coastal areas has been faced with increasing
pressure from buyers’ bargaining power, labour costs, recruitment difficulties and the cost of environmental
requirements. During the financial collapse in 2008, export-oriented enterprises in the textiles and garment
sector ran into difficulties, as world trade in textiles and clothing declined.
However, Challenge Co., a private manufacturer specialized in exporting knitted fabrics and garments,
increased its sales and profit in 2009. Its labour productivity is at the leading level in the industry.
How does Challenge Co., as an export processing enterprise, grasp the initiative in business, improve
value chain management, and enhance its own competitiveness?
Product innovation
Through original and cooperative R&D, Challenge Co. develops new products such as anti-bacterial
fabrics, anti-static fabrics and woollen fabrics with a higher level of flexibility and comfort. New technology
and new products not only increase the value added by providing customers with unique commodities, but
also help to consolidate the enterprise’s relationship with customers.
Function innovation
Challenge Co. has invested tens of million yuan to build its digital automatic warehouse. The automatic
warehouse can optimize storage management, reduce inventory costs, improve logistics processes and,
more importantly, enable the company to provide a ‘design to store’ service to customers. Products can be
delivered to retail outlets as they are produced according to clients’ specific orders for sizes, styles, colours
and packaging.
Digital production and management
The company and clients can co-design online through digital systems such as Datacolor. Using digital
systems reduces the defective rate, improves quality, lowers wastage, reduces pollution, and shortens
delivery time. With a bar code system, it could also track production processes and inventory, even back to
the origin of the fibre.
Collaborative cooperation
Challenge Co. has established stable relationships with fibre suppliers to ensure the stability of quality of
fabric and garments. The company has formed a strategic alliance with customers to establish an R&D
department so as to provide original new products and unique services.
Decent work and environmental protection
Challenge Co. pays great attention to environmental protection, working conditions and wage levels – their
workers get higher wages than the industry average. This social conduct has led to a reduction in staff
turnover and an increase in employee loyalty, company credibility and reputation.
58
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THE CHINESE MARKET FOR CLOTHING
Evaluation of clients
Backed with excellent quality products and service innovation, the company conducts strict customer
evaluations and gives up low-end buyers. In order to avoid being manipulated by low-price buyers, it
usually does not accept extra-large orders (exceeding one third of the company’s production capacity).
During the financial crisis, Challenge Co. not only improved its supply capacity through new product R&D
and quality assurance, but also enhanced its ability to control the value chain through process upgrading,
product upgrading and function upgrading.
7.3.
IKEA
IKEA global
Founded in 1943 by a 17-year-old man in Sweden, the IKEA Group has grown into the world’s largest
furniture retailer, with 123,000 workers and annual sales of more than 21.5 billion euros.
The IKEA Group itself owns 276 stores in 25 countries and another 37 stores are owned and run by
franchisees outside the IKEA Group in 16 countries or territories. IKEA Group opens new stores globally
every year, expanding market share at a steady pace.
In the 2009 fiscal year, IKEA opened 15 stores in 11 countries, with its sales total of 21.5 billion euros a
1.4% increase over the previous year. The top five sales countries are Germany with 16%, United States
11%, France 10%, the United Kingdom 7%, and Italy 7%.
IKEA in China
Since its first store opened in 1998 in Shanghai, IKEA has established eight stores in Beijing, Shanghai,
Guangzhou, Chengdu, Shenzhen, Nanjing, Dalian and Shenyang.
IKEA in China reported sales of RMB 27.9 billion in the 2008 fiscal year (1 September 2007 to 31 August
2008) with an increase of 3%, a slower growth rate than in the previous fiscal years. Furthermore, the
sales of IKEA in China account for just 1% of IKEA’s global sales. However, China is the largest source
country for IKEA, providing IKEA with 20% of its products.
Figure 28.
IKEA in China sales, 2003–2008
30
27.9
25.4
25
40%
35%
18.4
20
30%
25%
14.2
15
20%
10
10
15%
7.1
10%
5
0
45%
5%
2002-2003
2003-2004
2004-2005
2005-2006
2006-2007
2007-2008
0%
Source: www.home.sohu.com.
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THE CHINESE MARKET FOR CLOTHING
Textiles
IKEA textiles covers bathroom textiles, rugs, curtains and blinds, cushion and throws, curtain rods and
rails, fabrics and sewing, kitchen textiles, bedroom textiles, table accessories, children’s textiles and baby
textiles.
Table 27. Textile imports of IKEA in China
Import proportion
About 60%
Purchasing countries
Bangladesh, Belgium, Egypt, Estonia, Germany, Hungary, India, Pakistan,
Poland, Russian Federation, Thailand, Turkey, Viet Nam
Imported goods
Fabric, curtain, bedclothes (sheet, bedding bag, pillowcase, bedspread, quilt,
pillow etc.), cushion, towel, bath towel, bath robe, carpet, rugs
Raw material of imported goods
Cotton, polyester fibre, flax, sponge, emulsion, coconut fibre, wool
Price
IKEA products are targeted at people of all walks, so the prices vary considerably. Generally speaking, the
prices are reasonable in terms of the quality.
Procurement and logistics processes
IKEA has 31 trading service offices in 26 countries, and 28 distribution centres and 11 customer
distribution centres in 16 countries. IKEA purchases products from 1,220 suppliers in 55 countries.
Products are delivered to the 28 distribution centres from each trading area, and then sent to IKEA retail
outlets around the world.
Figure 29.
IKEA purchasing per region, 2009
North America 3%
Asia 30%
Europe 67%
Source: www.ikea.com.
The top five source countries for IKEA are China (20%), Poland (18%), Italy (8%), Germany (6%) and
Sweden (5%).
60
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THE CHINESE MARKET FOR CLOTHING
Figure 30 shows the detailed procurement process followed by IKEA.
Figure 30.
IKEA procurement and logistics processes
Designers to compete on low cost
To choose suppliers in global trade
Suppliers to compete by forcing prices
High quality low price suppliers to receive large
Suppliers selected
To draw up standards and grades for suppliers
To control logistics links and use flat packing
Goods to be sent to the global central
warehouse or distribution centre
Each IKEA store to buy needed products from
the trading
To decide to export or sell domestically sales
after calculation
Source: Manager World, Behind IKEA.
7.4.
Zara in China
Established in 1975, Spanish fashion chain Zara Corporation has been the most important brand of the
Inditex Group. In the 2009 fiscal year, Zara was reported to have 1608 stores (including 213 Zara Kids
stores) operated in 74 countries, and net sales amounting to 7 billion euros. Although Zara’s number of
stores was only one-third of Inditex Group’s total, its net sales account for around 63% of the Group’s total.
Fast growing in China
In 2004, Zara opened its first store in Hong Kong, China. In 2006, it first entered mainland China and
opened stores in Shanghai. By the end of 2008, it had 27 stores in China; at the end of 2009 the number
had increased to 44; and by 28 July 2010 the number had reached 54, among which there are 13 stores in
Shanghai, 11 in Beijing, 6 in Shenzhen, with the remainder in second-tier cities.
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THE CHINESE MARKET FOR CLOTHING
Fast fashion
Zara targets the young fashion consumer group aged 25 to 35 with higher incomes and good education.
Zara is positioned as ‘cheap luxury’ to meet the needs of fast-changing and affordable fashion. Its product
lines cover variety of categories, including T-shirts, shirts, jeans and bags, with prices ranging from RMB
99 to RMB 399. Zara’s fast fashion strategy demands fast turnover, quick response global sourcing and
lean retailing.
Global supply chain
At the end of the 2009 fiscal year, the Inditex Group was using 1237 suppliers around the world, of which
481 are in Asia (see table 28).
Table 28. Main Inditex clusters (overseas)
Country
No. of suppliers
No. of external
workshops
No. of workers who make up the
staff of the external
manufacturers and workshops
working for Inditex
Bangladesh
47
120
161 080
India
103
109
53 083
Morocco
80
115
36 804
Portugal
184
217
14 264
Turkey
97
170
43 275
Data resources: Inditex Group Annual Report 2009.
In Zara stores in China, the products are mainly imported from Bangladesh, India, Morocco, Portugal,
Spain and Turkey. The proportion of imports from Morocco is about 30%, while the proportion of products
made in China is less than 10%. Bags and men’s shirts are predominantly made in China.
The code of conduct and supplier ratings
Code of Conduct for External Manufacturers and Workshops:
A formal declaration of values developed from the Internal Code of Conduct establishes the principles that
regulate the relationship between Inditex and its suppliers.
Suppliers are rated through specific indicators that have been specially designed to comply with the
requirements of the code of conduct for manufacturers and external workshops, with the product health
and safety standards in force at Inditex (Clear to Wear and Safe to Wear) and the required response in
terms of units and time. The questionnaire gives a response to the five key points on which the
sustainability of the production chain relies
•
Optimum compliance;
•
Health and safety;
•
Good quality;
•
Correct delivery date;
•
Suitable price;
•
Corporate audit.
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Social audits are processes of evaluation of the level of compliance with the code of conduct for external
manufacturers and workshops of inditex, through corporate audits carried out by accredited external
consultants, in accordance with SA8000 and with the Inditex methodology Tested to Wear (TTW) based
on:
•
Code of conduct for inditex external manufacturers and workshops;
•
Base code of the ethical trading initiative;
•
The principles of the global compact of the United Nations;
•
The International Labour Organization better work programme;
•
The recommendations of social accountability international;
•
The principles of the global reporting initiative.
Supplier ratings
After the specific evaluation of each one of the principles of the code of conduct, the supplier’s degree of
fulfilment of the code of conduct is rated on one of four levels. This rating is the starting point for
articulating the design and the subsequent execution of any plans of corrective action and for verifying the
correction of any breaches detected in the corresponding monitoring audits.
7.5.
Shanghai Metersbonwe Fashion and Accessories Co., Ltd
Company introduction
Since its first retail store opened on 22 April 1995 in Wenzhou, Zhejiang Province, Shanghai Metersbonwe
Fashion and Accessories Co., Ltd has opened more than 3,000 retail stores in China. In August 2008,
Metersbonwe successfully became a listed company on the Shenzhen Stock Exchange. In the 2009 fiscal
year, Metersbonwe’s sales totalled more than RMB 10 billion, a rise of about 30%.
Metersbonwe Costume Museum was inaugurated in 2005, and it is by far the largest private-funded
museum featuring Chinese clothing. Over 8000 new designs are launched on the market every year by the
Metersbonwe internationalized design team. So far it ranks first among all the local and international
casual wear brands in the Chinese domestic market.
The company vision is to provide global urbanites with a high-end experience of fashion life. Awards
Metersbonwe has received include ‘the Famous Trademark’, ‘China’s Famous Brand’ and ‘China’s Youth
Favourite Fashion Brand’.
Products and brands
As a casual wear specialty chain retailer, Shanghai Metersbonwe Fashion and Accessories Co., Ltd
engages in developing, sourcing and marketing Metersbonwe and Me&City casual wear.
Metersbonwe, targeting vigorous and fashionable young people aged from 16 to 25, advocates a brand
image with freshness and strong personality and brings to the consumers casual wear with individuality
and vitality. The essence of the brand is ‘To be extraordinary!’.
Me&City, targeting people just moving into society in different cities, new workers, and urban middle
classes, has a database of all the body type data of Asian people, and thus can provide the most suitable
clothing according to the data. The products are casual but fashionable, tasteful but with style, and with
very reasonable and competitive prices.
In the 2009 fiscal year, the sales income of the Metersbonwe brande reached RMB 4,800 million, and
Me&Cityreached RMB 350 million.
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THE CHINESE MARKET FOR CLOTHING
Purchasing pattern
Metersbonwe handles sourcing of fabrics, accessories and garments, and leaves logistics operations to
professional logistics service providers. It uses more than 500 suppliers, among which 96 for fabric, 84 for
accessories and more than 300 for garments. Also, it has established long-term and stable cooperative
relationships with its suppliers, most of which are concentrated in the Yangtze River Delta region and Pearl
29
River Delta region. Another local brand, YiShion, unlike Metersbonwe, has focused mainly on the Pearl
River Delta region of China and expanded its suppliers abroad.
In 2009, the value of goods procured from the top five suppliers totalled RMB 568.5 million, 16.48% of the
gross. And the accountants payable of the top five suppliers amounted to RMB 385.2 million, 7.6% of
Metersbonwe’s closing balance. All the suppliers are welcome to provide the resources listed below.
•
Garments of both weaving and knitting: sweaters, jeans, leather, feather, shoes, bags, underwear,
accessories and other categories.
•
Various fabric and accessories: cotton knitted and woven fabric, denim, synthetic fabrics, woollen,
feather, fur, accessories and other categories.
In practice, the suppliers usually deliver the fabric and accessories directly to the garment suppliers for the
next production process. When Metersbonwe receives the receipt from the garment suppliers, this
purchase transaction will be recorded in the Metersbonwe’s ERP system. Sometimes the suppliers
transport the goods instead of using the third-party logistics companies. Metersbonwe uses its own
30
innovative operation pattern (see figure 31).
These days, Me&City is edging into fast fashion in China, with more than 3,000 styles, designed mainly by
French designers, each year and only 70 days from initial design to final out. The idea driving its promotion
process is ‘First Regular Chain, then Franchise Chain’.
At the end of 2008 the company adjusted its internal organizational structure and now operates
Metersbonwe and ME&CITY independently. The income of each business unit was RMB 5.5 billion and
31
RMB 2.3 billion respectively in 2009.
29
http://finance.sina.com.cn/leadership/mroll/20100211/18017410805.shtml.
30
Internal Control Report of Metersbonwe.
31
Audit Report of Metersbonwe.
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THE CHINESE MARKET FOR CLOTHING
Figure 31.
Metersbonwe’s purchasing procedure
Source: Franchise Market Magazine.
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THE CHINESE MARKET FOR CLOTHING
8.
Possibilities for cooperation along the value chain
8.1.
The textile complex and the roles of LDCs
The garment value chain is buyer driven, and it is a complex process from fashion design to retail, from
fibre production to garment assembly. The sewing sector downstream of the garment industry is labour
intensive, and the upstream sectors such as synthetic fibre production are capital intensive. Textile
industries in developing countries and LDCs mainly concentrate on manufacturing, sewing and
assembling. The profit made at this stage is less than 10% of the total value added. In contrast,
industrialized and developed countries focus on the high-tech and high-fashion sectors, such as new
synthetic fibres, high-class dyeing, fashion goods and textile machinery, and perform functions as
branding, designing, retailing, merchandising, trading and marketing. They capture large a proportion of
the added value. Furthermore, retail giants and brand owners have great bargaining power when buying
and supplying.
China is the largest producer and consumer of clothing and textiles, with a full range of products and a
complete production chain, which covers natural and artificial fibres, spinning, weaving, knitting, printing
and dyeing, and sewing. China’s fibre production reached 32.4 million tons in 2008, accounting for 48% of
world fibre production that year.
China itself is the prime supplier of cotton, silk, ramie, and polyester. However, China imports large
quantities of cotton each year; high-grade and newly developed artificial fibre and fabrics are mainly
supplied by the United States, Japan and European countries.
Table 29. Textile imports, 2000–2008
Unit: 1,000 tons
Wool
Artificial fibre
Textile
machinery
(US$ million)
Textiles
(US$ million)
Garments
(US$ million)
Year
Cotton
2000
84
300.7
1 653
1 913
12 830
1 190
2001
112.6
309.1
1 473
2 514
12 570
1 270
2002
208
237.2
1 720
3 519
13 060
1 360
2003
870
192.7
1 858
4 611
14 220
1 420
2004
1 980
239.2
1 776.8
4 755
15 300
1 540
2005
2 650
269
1 521.7
3 445
15 500
1 630
2006
3 806
301
1 285.5
4 101
16 360
1 720
2007
2 615
334.4
1 109.7
4 908
16 650
1 980
2008
2 110
305.7
816.8
3 830
16 230
2 280
Source: CNTAC, China Textile Industry Developing Report.
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8.2.
Market segments and LDC targets
In the world apparel market, mid-end to high-end segments are dominated by brands from developed
countries, mostly in the European Union. Though developing countries are able to produce garments of all
grades and categories, their brands mainly target mid-end to low-end local markets.
8.3.
Competitors or co-operators
Many exporters in developing countries and LDCs perform the same functions and play the same roles as
enterprises in China. Competing homogenously in the same sectors (most LDC industries concentrate on
the garment sector) with little support from related industries will most likely result in loss of
competitiveness and lead to a zero-sum game. As one of the biggest importers of textiles, garment, and
industry products, China benefits from importing advanced equipments, fibre yarn, fabrics and finished
goods. Horizontal and vertical regional integration, complementing each other in the value chain with
innovative strategies, will lead to enhanced competitiveness and comparative advantages for LDCs, China
and other developing countries.
8.4.
Cotton, yarn and fabrics
8.4.1.
Cotton
China is one of the world’s largest cotton producers and its cotton production has continued to rise,
especially since accession to WTO. Despite the financial crisis, China’s cotton production reached 7.492
million tons in 2008, an increase of nearly 2.5 times compared to 1978.
Figure 32.
Cotton production in China, 1978–2008
1400
8000
1200
7000
6000
1000
5000
800
4000
600
3000
400
2000
200
1978
1979
1980
1981
1982
1983
1984
1985
1986
1987
1988
1989
1990
1991
1992
1993
1994
1995
1996
1997
1998
1999
2000
2001
2002
2003
2004
2005
2006
2007
2008
0
1000
Per area yield(kg/hectare)
Yield(104T)
0
The total sown area(1000hectare)
Source: National Bureau of Statistics China.
China is the biggest consumer of cotton, especially in recent years, because of the rapid development of
China’s textile industry.
SC-11-212.E
67
19 165
18 976
18 583
19 814
20 073
20 581
21 472
21 344
23 693
25 404
26 937
26 882
24 196
1996/97
1997/98
1998/99
1999/00
2000/01
2001/02
2002/03
2003/04
2004/05
2005/06
2006/07
2007/08
2008/09
9 798
11 213
10 886
9 798
8 382
6 967
6 510
5 715
5 117
4 638
4 180
4 267
4 420
4 289
China
40.50%
41.70%
40.40%
38.60%
35.40%
32.60%
30.30%
27.80%
25.50%
23.40%
22.50%
22.50%
23.10%
22.90%
Proportion
68
Source: United States Department of Agriculture.
18 733
World
1995/96
Year
781
999
1 074
1 278
1 457
1 354
1 584
1 676
1 929
2 220
2 265
2 471
2 422
2 318
USA
Table 30. Cotton consumption, 1995–2009
THE CHINESE MARKET FOR CLOTHING
3.20%
3.70%
4.00%
5.00%
6.10%
6.30%
7.40%
8.10%
9.60%
11.20%
12.20%
13.00%
12.60%
12.40%
Proportion
3 897
4 050
3 941
3 636
3 222
2 939
2 896
2 890
2 949
2 950
2 748
2 760
2 857
2 608
India
16.10%
15.10%
14.60%
14.30%
13.60%
13.80%
13.50%
14.00%
14.70%
14.90%
14.80%
14.50%
14.90%
13.90%
Proportion
2 504
2 613
2 613
2 504
2 341
2 090
2 047
1 851
1 764
1 666
1 524
1 565
1 524
1 568
Pakistan
10.30%
9.70%
9.70%
9.90%
9.90%
9.80%
9.50%
9.00%
8.80%
8.40%
8.20%
8.20%
8.00%
8.40%
Proportion
1 089
1 306
1 589
1 502
1 546
1 306
1 372
1 339
1 125
1 219
1 002
1 089
1 031
950
Turkey
4.50%
4.90%
5.90%
5.90%
6.50%
6.10%
6.40%
6.50%
5.60%
6.20%
5.40%
5.70%
5.40%
5.10%
Proportion
25.30%
24.90%
25.40%
26.30%
28.50%
31.30%
32.90%
34.50%
35.80%
35.90%
36.90%
36.00%
36.10%
37.40%
Proportion
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6 127
6 701
6 834
6 686
6 745
6 688
7 063
7 110
7 189
7 121
6 864
6 824
6 911
7 000
Others
Unit: 1,000 tons
THE CHINESE MARKET FOR CLOTHING
Thanks to its long, fine fibre, high grade Egyptian cotton is imported for the production of high quality fabrics.
The United States is the largest exporter of cotton in volume. United States cotton attracts users because of
good service, technical support, guidance in fashion trends, and low price. China imported 994,000 tons from
the United States, valued at US$ 1,667 million, in 2008, accounting for 43.9% of total imports.
Figure 33.
China’s imports and exports of cotton, 1985–2008
450
400
350
Export(10000T)
Import(10000T)
300
250
200
150
100
2008
2007
2006
2005
2004
2003
2002
2001
2000
1999
1998
1997
1996
1995
1994
1993
1992
1991
1990
1989
1988
1987
1986
0
1985
50
Source: Comtrade Database.
The top five exporter countries shared 85.3% of China’s cotton imports. In recent years, the share of cotton
imports from India has drastically increased, from 3.07% in 2005 to 27.4% in 2008. Uzbekistan, Australia and
Burkina Faso are also important sources of China’s cotton imports. In 2008, imports from them were 265,000
tons, 117,000 tons and 112,000 tons respectively.
8.4.2.
Cotton yarn
Export of cotton yarn increased from 245.5 thousand tons in 2001 to 583.7 thousand tons in 2007. In 2008,
724.5 thousand tons of cotton yarn was imported, a decrease of 14.79% from the previous year.
Table 31. China’s imports and exports of cotton yarn, 2001–2008
Unit: 1,000 tons
Item
2001
2002
2003
2004
2005
2006
2007
2008
Annual
GR(%)
Export
245.5
388.4
504.2
431.2
469.5
577.3
583.7
547.2
12.13%
Import
533.5
613.8
711.6
714.7
793.8
938.0
850.3
724.5
4.50%
Source: CNTAC, China Textile Industry Development Report, 2001–2008.
Note: Export 2001* (1+AGR)7 = Export 2008, Import 2001* (1+AGR)7 = Import 2008.
The first three import sources of cotton yarn for China are India, Viet Nam and Thailand in 2009. Netherlands
had achieved the biggest growth rate on exporting cotton yarn to China in 2009. The value of cotton yarn
imported from Italy, the United Kingdom and Belgium dropped in 2009.
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THE CHINESE MARKET FOR CLOTHING
Table 32. China’s imported cotton yarn, 2009
Country/region
Net weight (kg)
GR(%)
Value($)
GR(%)
France
2 505
123.86
52 280
–19.89
Belgium
18 100
–5.97
148 034
98.11
Bangladesh
Turkey
Netherlands
India
United States
Viet Nam
Spain
Italy
United Kingdom
Thailand
49 400
N.A.
88 155
N.A.
520 846
41.69
1 119 824
–1.92
12 064
9 953.34
118 078
61 399
73 982 008
32.57
177 740 914
25.60
1 080 802
312.51
3 652 108
353.15
73 651 015
155.90
171 251 948
145.45
1 698
1 402.65
9 353
1 622.47
542 379
–40.17
3 331 921
–26.25
16 118
–13.72
108 111
–26.10
18 567 274
13.18
42 194 594
2.78
The three most important export destinations for cotton yarn from China in 2009 were Bangladesh, Italy and
Viet Nam, with Viet Nam achieving the biggest growth rate in imports that year. The value of cotton yarn
exported to Belgium, Turkey, Netherlands, India, the United States, Spain and Italy dropped in 2009.
Table 33. China’s exports of cotton yarn, 2009
Country/region
Net weight (kg)
Belgium
Bangladesh
Turkey
GR(%)
Value($)
GR(%)
797 421
–11.75
2 536 043
–21.71
16 973 602
–16.42
66 996 217
–10.94
1 010 606
–64.32
4 697 986
–63.00
507 083
–19.21
1 453 191
–17.87
India
1 116 808
–99.99
5 188 344
42.62
United States
1 886 455
–58.46
5 609 642
–55.69
Netherlands
France
259 453
80.60
688 407
81.41
Viet Nam
4 894 914
110.99
16 671 256
72.25
Spain
1 022 655
–14.89
2 858 219
–24.55
Italy
7 809 793
–33.98
43 219 961
–43.92
986 083
27.58
2 288 151
10.27
3 692 892
2.06
15 58 606
0.84
United Kingdom
Thailand
8.4.3.
Cotton grey fabrics
In 2008, China imported 1,114 million metres of cotton fabric, a drop of 19.63% compared to the previous
year.
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Table 34. China’s imports and exports of cotton fabrics, 2001–2008
Unit: million m
Item
2001
2002
2003
2004
2005
2006
2007
2008
Annual
GR(%)
Export
3 060
4 146
5 035
4 792
5 492
6 276
6 247
6 731
11.92%
Import
1 437
1 512
1 539
1 604
1 564
1 498
1 386
1 114
–3.57%
Source: China Textile Industry Development Report.
The three most important import sources of greige fabric for China in 2009 were Italy, the United Kingdom and
Turkey. Belgium achieved the biggest growth in exports of greige fabric to China that year.
Table 35. China’s imported greige fabric, 2009
Country/region
Value($)
GR(%)
France
14 864 225
–33.91
Belgium
9 265 290
53.05
n.a.
n.a.
16 452 522
–25.63
Netherlands
9 483 986
–6.07
India
5 742 004
12.90
13 892 903
–25.93
453 979
–77.67
9 376 653
52.44
196 957 654
–13.14
35 549 921
–10.41
250 965
–86.01
Bangladesh
Turkey
United States
Viet Nam
Spain
Italy
United Kingdom
Thailand
The top three export destinations for greige fabric from China in 2009 were Italy, Turkey and Viet Nam. The
Netherlands had the largest growth in imports of greige fabric from China in 2009.
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Table 36. Exporters of greige fabric to China, 2009
Country/region
Value($)
GR(%)
France
3 911 472
38.03%
Belgium
2 367 092
–24.43%
Bangladesh
39 368 510
10.94%
Turkey
64 478 053
–25.38%
1 368 359
38.87%
India
14 777 900
–48.50%
United States
17 737 840
–50.63%
Viet Nam
46 962 945
–31.63%
3 113 118
–31.24%
Italy
20 571 557
–22.63%
United Kingdom
37 230 206
–1.79%
Thailand
10 676 972
–47.24%
Netherlands
Spain
8.4.4.
Hemp fibre
In 2008, China imported a total of 448,900 tons of hemp fibre valued at about US$ 304 million, a decreased of
16.84% in quantity and 16.17% in value from the previous year.
The top five countries exporting hemp fibre to China were France, Belgium, Bangladesh, Brazil and the
Netherlands, accounting for 42.6% of China’s total hemp fibre imports.
Table 37. China’s hemp fibre imports by country, 2008
Country/region
Volume (kg)
GR(%)
Value ($)
GR(%)
Price($/kg)
France
53 764 370
–36.92
119 669 669
–23.69
Belgium
18 791 168
–43.51
41 367 226
–22.28
2.2
37.5
Bangladesh
98 898 065
–7.9
37 347 888
9.68
0.38
18.75
Brazil
16 143 912
–37.98
13 174 680
–33.79
0.82
7.89
3 734 352
–26.53
10 256 770
–6.46
2.75
27.31
Netherlands
2.49
GR(%)
28.35
Source: CNTAC, China Textile Industry Development Report.
The planting of flax and development of raw materials seriously lag behind the needs of the flax industry. Twothirds of high-quality raw flax needs to be imported. The domestic acreage of flax, ramie and jute has been
reduced significantly.
About 50% of flax depends on imports, primarily from European countries. Since the financial crisis of 2008,
European countries have raised the price of flax, making domestic company’s profits drop sharply.
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Figure 34.
China’s flax and jute imports, 1992–2008
180000000
160000000
140000000
120000000
100000000
80000000
60000000
40000000
20000000
0
1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008
Flax imported
Jute imported
Source: http://comtrade.un.org/db/.
9.
Existing national support schemes
China has cooperated with LDCs and developing countries for years, holding forums and making polices to
support them in accelerating their development in the field of economy and trade.
9.1.
Cooperation with African countries
The Fourth Ministerial Conference of the Forum on China–Africa Cooperation (FOCAC)
At the Fourth Ministerial Conference of FOCAC in November 2009, Chinese Premier Wen Jiabao, on behalf of
the Chinese Government, announced eight new measures to promote practical cooperation with Africa.
During the conference, China and Africa passed the Sharm El Sheikh Action Plan (2010–2012).
The Chinese side committed to send 50 agricultural technology teams to train 2,000 agricultural technology
personnel for African countries, and promised to help build 20 agricultural technology demonstration centres.
The centres will carry out experiments, demonstration projects, and training programmes in crop seed
selection, farming, fish breeding and animal raising.
The meeting also implemented China’s decision to contribute US$ 30 million to the United Nations Food and
Agriculture Organization (FAO) to set up a trust fund, and to actively use the trust fund to support South-South
cooperation between China and African countries under the framework of the FAO Special Programme for
Food Security.
The Chinese side offered to increase the size of the China–Africa Development Fund to US$ 3 billion to
support the expansion of investment from Chinese businesses in Africa.
The two sides promised to continue to do a good job in establishing overseas business cooperation zones in
Africa, to intensify efforts to attract investment, to actively encourage more Chinese companies to make
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investment in the cooperation zones, and to provide facilitation to African small and medium-sized enterprises
(SMEs) to develop their business in the zones.
In the next three years, the Chinese side will provide US$ 10 billion in concessional loans to African countries,
which will be used mainly to support infrastructure and social development projects; and will set up a special
loan of US$ 1 billion for development of African SMEs.
The Chinese Government offered to cancel due debts of interest-free government loans that will mature by the
end of 2009 owed by all heavily-indebted poor countries and any LDCs in Africa having diplomatic relations
with China.
The Chinese side promised to further open its market to African countries. It offered to, in a phased manner,
grant tariff exemption treatment to 95% of exports from LDCs in Africa having diplomatic relations with China.
As the first step, from 1 July 2010, China began to offer zero tariff rates on 60% of products originating from
26 African countries. These countries are: Benin, Burundi, Central African Republic, Chad, Comoros, the
Democratic Republic of the Congo, Djibouti, Equatorial Guinea, Eritrea, Ethiopia, Guinea, Guinea-Bissau,
Lesotho, Liberia, Madagascar, Malawi, Mali, Mauritania, Mozambique, Rwanda, Sierra Leone, Sudan, Togo,
Uganda, the United Republic of Tanzania and Zambia
9.2.
Cooperation with South Asian countries
The Asia–Pacific Trade Agreement
The Asia–Pacific Trade Agreement (APTA), formerly known as the Bangkok Agreement, includes six official
member countries: China, Bangladesh, India, the Republic of Korea, the Lao People’s Democratic Republic
and Sri Lanka. APTA is the only tariff reciprocity organization formed by developing countries in the Asia–
Pacific region. The purpose of APTA is the adoption of tariff and non-tariff concessions on imported goods, the
expansion of trade and economic cooperation, and the common development of member countries.
In June 2010,the 36th Standing Committee Meeting of APTA was held in Ulan Bator, the capital of Mongolia.
Six members of APTA started the fourth round of tariff concession negotiations and reached broad consensus
on the investment and trade facilitation framework agreements, non-tariff measures, rules of origin, Mongolia
joining APTA, and other issues.
9.3.
Barriers affecting the cooperation
China has made great efforts to help LDCs and developing countries to promote their economic stability and
growth, although during the process of implementation, there are still some barriers affecting in-depth
cooperation.
For companies engaging in international trade, local financial institutions are absolutely necessary. But the
local financial system in LDCs is lagging behind. Loans and credits cannot be made by local banks and the
clearing of trade transaction is somewhat risky.
Besides, because of low productivity, the cost of the farming products of LDCs is comparatively high.
Industrial products imported by Chinese companies are not competitive in the Chinese market.
Furthermore, the small and scattered organizations of production in LDCs and developing countries makes
providing technical and financial support difficult.
9.4.
Case study: Bangladesh RMG industry
China and Bangladesh established diplomatic relations in 1975. Since then, the relationship between the two
countries has grown to cover a wide spectrum of bilateral relations, especially in business and trade. China is
Bangladesh’s biggest trade partner. Bilateral trade between the two countries reached as high as
32
approximately US$ 4.6 billion, reflecting a very sharp growth over time. In 2009, China imported garments
32
www.peopleforum.cn.
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33
worth US$ 2 billion, among which shipments from Bangladesh amounted to nearly $20 million. China’s
imported textiles and clothing from Bangladesh accounted for more than 50% of China’s total imports from
LDCs.
China and Bangladesh are both in APTA. Bangladesh has enjoyed conventional tariff rate and special
preferential tariff rates from China for a long time. Since the 2008 worldwide financial tsunami, the global
economy has been greatly affected and is recovering gradually. The textiles industry in China is still meeting
new problems and greater challenges than ever before. The two governments are actively seeking new ways
to help recover from the crisis faster. Prime Minister Sheikh Hasina visited Beijing and the two countries
decided to establish a ‘Closer Comprehensive Partnership of Cooperation’, which has pushed the bilateral
economic relationship to a higher level.
From 1 July 2010 China has provided duty-free entry to major Bangladeshi products to open up opportunities
for the local exporters in Bangladesh.
Bangladesh is well-known as the world’s biggest manufacturing and exporting zone of all kinds of jute and jute
goods, which contributes greatly to bilateral trade between China and Bangladesh.
According to trade data from the Export Promotion Bureau in Bangladesh, the share of ready-made garments
(RMGs) among all the products exported from Bangladesh reached 77.17% in July–November 2010. Woven
garments reached US$ 2.13 billion and knitwear US$ 2.59 billion, totalling US$ 4.72 billion. And China is an
important export destination for Bangladesh.
China has its own local RMG companies, but a significant number of Chinese garment.
Factories that made basic RMG products earlier faced closure in China. More Chinese manufacturers are now
reluctant to produce basic RMG items and have recently shifted from basic RMG items to high-end apparel.
Bangladesh has a very convenient access to international sea and air routes, and compared with the
transportation cost, the cheaper labour cost, the appreciation of the RMB and the zero tariff entry policy are
attracting more global buyers to source basic RMGs from Bangladesh.
In the meantime, larger international buyers in China such as Zara and H&M are also showing an interest in
purchasing all types of textiles and apparel products from Bangladesh.
It is also a trend that China imported RMG products from Bangladesh while exporting yarn and fabrics to
Bangladesh. For example, over 1,000 companies in Bangladesh produce woven textile products, and 60% of
34
their woven fabric is imported from China, India and Pakistan.
Under these preference policies between China and Bangladesh, bilateral trade has been greatly promoted.
Both sides are enjoying great benefits through long-term friendship and cooperation.
10. Recommendations for developing countries and LDCs
The structure of textile and clothing industries in many developing countries and LDCs is similar to that of
China. This leads to product homogeneousness and limits their exports to China’s garment retail market.
However, retailer giants such as Zara, H&M, and C&A are increasing their sourcing from developing countries
and LDCs for the Chinese market. Furthermore, changes in the fashion market and in sourcing patterns are
making it possible to enhance competitiveness by factors other than cost and price.
Effective strategies of exploiting and penetrating new emerging markets like China are based on a better
understanding of:
•
Who are the buyers in the Chinese market and what are their sourcing criteria and priorities?
•
Who are the consumers in the Chinese market and what are their demands?
33
http://bangladesheconomy.wordpress.com.
34
http://cptc.webtex.cn.
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•
What are LDCs’ advantages and disadvantages compared with Chinese competitors?
•
Are there any possibilities for collaboration with Chinese textile and clothing industry partners rather
than competing with them?
To promote exports to China, both government and industry should develop and maintain appropriate policies
and innovative strategies.
10.1. Government policies and strategies
(a)
The market perspective
China is the biggest consumer of raw materials in the textile and clothing industry. Cotton, jute, yarns and
fabrics from LDCs are expected to have enormous market share.
China is also the largest potential market for textiles and clothing. As a developing country, China shows a
latent large-scale high-end market, and at the same time has huge room for low-end to middle-end products,
which is an important target market for LDCs. Nowadays, Chinese consumers are eager for those affordable
products with relatively high quality and fashion style.
In China’s post-WTO accession transition period, global buyers, retailers and brand merchants such as Zara
and H&M started to enter China market in force, and they are becoming important players in sourcing from
LDCs and developing countries for China market.
(b)
The business climate
Maintaining political and economical stability will reduce the risk and cost of sourcing. Corruption and
bureaucracy would certainly keep business inefficient, drive investors out of country, and increase costs.
Financial support is SMEs, especially for farmers in LDCs. It is import for LDCs to build their financial systems
to benefit investors, lenders and firms, and to complete linkages with China’s financial support scheme for
LDCs.
Speeding up customs clearance shortens the lead time. Strict audits of social compliance and environment
protection help to build a fair-play climate.
(c)
Infrastructure
Transportation, communications and ICT platform construction is of vital importance, as these factors affect
the productivity and efficiency of running business for both buyers and suppliers. Infrastructure is a bottleneck
for exporting as the fashion markets change dramatically.
(d)
Regional integration and international cooperation
Economic cooperation between LDCs and China should take advantage of the free trade regime and Chinese
economic cooperation scheme for Africa and Asia, such as cooperative projects between the governments,
technological support and loans, and strengthen the collaboration between companies, to achieve a win-win
cooperation mode, such as financial and technology support. In this case, China could contribute to the
development of the textile and clothing industry in LDCs through investment and by making use of the local
natural and labour resources.
Free trade zones and regional agreements on preferential trade, such as the China–ASEAN Free Trade
Agreement, will help. Furthermore, the zero tariff scheme provided by China to LDCs will certainly encourage
them to export to China. However, it is more meaningful to integrate the textile industry horizontally and
vertically to build a production and distribution network. Most LDC textile and clothing industries focus on only
a few sectors or divisions. This provides them with comparative advantages and opportunities for cooperation
with others. For example, Bangladesh is specialized in sewing and processing of garments using Chinesesupplied fabrics.
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(e)
Education and training
Skilled and well-trained labour will contribute greatly to the quality, productivity and reputation of the industry,
and enhance its competitiveness.
(f)
Raw material supplying
LDCs have abundant resources such as cotton, flax, jute and silk. The fluctuation of production and prices of
these materials hurts industries. The integration of production chains and strategic partnerships between the
regions and countries may benefit both.
The import of raw materials and intermediate products into China is continuously increasing. For LDCs,
improving productivity, enhancing price competitiveness, providing stable supply, favourable credit and
satisfactory service are the determining factors in the process.
10.2. Industry strategies
The reconstruction of the global production network (GPN) and global value chain brings considerable
changes to the procurement process, which requires suppliers to meet the product standards and criteria of
global sourcing.
(a)
Targeting and positioning.
Luxury and premium goods are dominated by European brands and most of them are made in developed
countries. For high-end fashion, consumers are sensitive to brand origin as well as manufacturing country
origin.
Basic fashion and basic products are mainly locally made, with a portion produced in developing countries or
LDCs. Basically, Chinese consumers do not care too much about country origin. They are sensitive to price.
LDC producers could hardly compete with Chinese suppliers with regard to delivery time, quality, skilled
labour, and production capacity. This is why national retailers and brands (such as Metersbonwe) usually do
their sourcing domestically.
However, multinational brands and companies will take all factors into consideration such as easy access to
market, geographic distance, economies of scale in global sourcing, tariff and non-tariff barriers, political and
institutional factors, costs, and lead time.
In short, garments imported from LDCs are distributed by giant multinational retailers and brands, and are
mainly targeted at the mass market.
(b)
Criteria and priorities.
The criteria for vendor evaluation and audit are basically the same, but the priority varies from product to
product, season to season, brand to brand and buyer to buyer. To enhance their competitiveness, vendors in
developing countries and LDCs have to meet buyers’ criteria for the Chinese market.
Currently, the export of textile and clothing products to China is mainly through mass merchandising in the
form of fast fashion such as Zara. To meet the high sourcing requirements of these buyers, short lead time
and high flexibility of the industry is vital. With the increasing costs of raw material and labour in China, and
the appreciation of the RMB, there are opportunities for LDCs to export textile and clothing products to China.
(c)
Industrial upgrading
It is necessary for companies in LDCs to undergo industrial upgrading – increasing efficiency and decreasing
cost, developing new products, improving design ability, shortening delivery time, adopting a differentiation
strategy in the Chinese market – as well as paying attention to niche market as well.
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(d)
Advanced equipment
The garment industry should closely monitor the sewing machinery industry and update facilities to improve
quality, productivity and production capacity. Flexible production lines, such as UPS will cut set-up costs and
work in process (WIP), and thus be flexible to market changes.
(e)
Digital technology and QR
CAD, CAM, Datacolor and ICT are essential to designers, manufacturers, buyers and contractors.
These equipment and software based on the Internet and intranets supported by MIS will ensure quality and
quick response time, and will reduce transaction costs and lead times.
Online technologies in global sourcing such as online design and proofingare becoming more and more
common. These techniques could enhance supply chain efficiency, and ability to meet the need for market
variety and fashion changes.
(f)
Internet and e-commerce
The Internet provides not only a channel for communication and a transaction platform, but also creates a
variety of new business models and market opportunities with high efficiency and low costs. For example,
global mass customization for fashion goods and e-retailing and e-trading.
(g)
Recycled fibre industry
China is the largest recycled polyester fibre producer, and imports large amounts of used PET materials. It is
a good practice to build collection and cleaning factories for recycling in LDCs and export to China for further
processing.
(h)
Strategic partnership with Chinese firms
Cooperation at the company level is more feasible form of cooperation between China and LDCs, and can be
profitable for both. For example, LDC firms may get investment or joint ventures in cash, know-how and
equipment from Chinese firms and produce and export fabrics, garment and other finished goods instead of
raw materials.
(i)
Good will and trust
SCM and CRM must be backed by mutual trust and close relationship between vendors and buyers.
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Appendix I
Contacts for garments companies
361°
Hong Kong office
Address: Room 3901, 39F, Zhongyuan Mansion, No. 183 Middle Queen Avenue, Hong Kong, China
Tel.: +852-2907-7033
www.361sport.com
Adidas
Hong Kong office
Address: 10/F, 21-22/F, Suites 1407-1470.City plaza 12/F. Taikoo Wan Road.Taikoo Shing. Island East, Hong
Kong, China
Tel.: +852-149-3888; Fax: +852-2149-3898
www.adidas.com
Aimer
Address: Aimer Mansion(C), New High-Tech Industrial Development Zone, Chaoyang District,
Beijing, China
Tel.: +86-10-6439-2626; Fax: +86-10-6439-2004; E-mail: [email protected]
www.aimergroup.com
Online shop: www.aimer.com.cn, www.shopaimer.com
Anta
Address: Room 4408, 44F, Zhongyuan Mansion, No. 183 Middle Queen Avenue, Hong Kong, China
Tel.: +852-2116-1660
www.anta.com
Artis
Address: 1101-04, F11 Guangsheng Mansion, No. 228 Tianhe Road, Guangzhou,
Guangdong 510620, China
Tel.: +86-20-3833-0735; Fax: +86-20-3833-0753; E-mail: [email protected]
www.artis.cn
Aubade
Address: 10, rue du Colonel Driant, 75001 Paris, France
Tel.: +33-1-70-99-20-00; Fax.: +33-1-70-99-20-27
www.aubade.com
Audrey
th
Address: 5 F, No. 342 Chang An W. Road, Taipei 103, China Taipei
Tel.: +886-2-2552-1542; Fax: +886-2-2552-4977; E-mail: [email protected]
www.audrey.com.tw
Balabala
Address: No. 1189 SenMa Masion, Liuhong Bridge Road, Wenzhou, China
Tel.: +86-577-8808-9999
www.balabala.com.cn
Betu
Address: Tungtex mansion 11/F. 203 WeiYe Street, Kwun Tong, Kowloon, Hong Kong, China
Tel.: +852-2797-7900; Fax: +852-2797-8315
www.betu.com.hk
Bobdog
Address: Room601, 255 Wubao Road, Qibao Town, Shanghai, China
Tel.: +86-21-6421-4188; Fax: +86-21-6421-0519
www.bobdog.com.cn
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Boshiwa
Address: Pudong Wai Gaoqiao Free Trade Zone No. 78, Taigu Road, Shanghai, China
Tel.: +86-21-5866-6208; Fax: +86-21-5866-1477
www.boshiwa.cn
Bossini
Hong Kong office
Address: Level 1, The Long Beach, 8 Hoi Fai Road, Tai Kok Tsui, Kowloon, Hong Kong, China
Tel.: +852-2371-1688; Fax: +852-2786-0869
www.bossini.com
Online shop: http://bossini.tmall.com
Burberry
Address: Horseferry House, Horseferry Road, London SW1P 2AW, England
Tel.: +44-20-3402-1444
www.burberry.com
C&A
Shanghai Office
Address: 5p18 Shanghai Mart, 2299 Yan’an Road West Shanghai 200336, China
Tel.: +86-21-5253-4666; Fax: +86-21-6236-6268
www.c-and-a.com
Camel Active
Address: Herforder Strasse 182-194, D-33609 Belefeld, Germany
Tel.: +49-521/306-0; Fax: +49-521/306-83803; E-mail: [email protected]
www.camelactive.de
Celine
Address: 23–25 Rue Do Pont Neuf, 75001 Paris, France
Tel.: +33-1-55-80-12-12; Fax: +33-1-55-80-12-00
www.celine.com
Cerruti 1881
Address: 3, Place de la Madeleine, 75008 Paris, France
Tel.: + 33-1-53-30-18-81; Fax: +33-1-53-30-19-43; E-mail: [email protected]
www.cerruti.com
Chanel
China office
Tel.:+86-21-5868-3030
www.chanel.com
Chilier
Address: Building A, 11F, Haixing Square, South Ruijin Road, Luwan District, Shanghai, China
Tel.: +86-21-6403-6688; Fax: +86-21-6403-6677; E-mail: [email protected]
www.chilier.cn
CK
Address: 205 West 39th Street, New York, 10018, United States of America
www.calvinklein.com
Conch
Address: No. 584 Zhizaoju Road, Shanghai 200023, China
Tel.: +86-21-5661-3334
www.myconch.com
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Converse
Hong Kong office
Address: Suite 3107-08, Tower2, The Gateway, 25 Canton Road, Tsim Sha Tsui, Hong Kong, China
Tel.: +852-2302-0213; Fax: +852-2302-0263
www.converse.com
Online shop: www.conslive.com
Dior
Address: 30 Avenue Montaigne, Paris, France
Tel.: + 33-1-44-13-22-32/22-43
www.dior.com
Online shop: www.diorchina.com
Dunhill
Hong Kong office
Tel.: +852-3516-8311
www.dunhill.com
Ermenegildo Zegna
Address: Savona 56/a, 20144 Milano, Italy
Tel.: +39-2-4220-91 Fax: +39-2-4220-9101
www.zegna.com
Esprit
Address: Esprit International, 1370 Broadway 16th Floor, New York, NY 10018, United States of America
Tel.: +1-212-401-1122; Fax: +1-212-401-1130
www.esprit.com
Online shop: http://mode.esprit.de
Etam
Address: Shangai Intermoda Clothing Co LTD, Golden Gate square, 11881 Xin Jin Qiao Road, Pudong New
Area, Shanghai 201206, China
Tel.: +86-21-5899-9333
www.etam.com
Online shop: www.etam.cn
Exception
Address: No. 11 Xiaoyuanxincun, Jiangnan Avenue, Guangzhou, Guangdong, China
Tel.: +86-20-8449-8889
www.mixmind.com.cn
Fairwhale
Address:7F, of HongRun Bldg., No. 28,200 Lane, LongCao Rd., Shanghai 200235, China
Tel.: +86-21-6475-9944; Fax: +86-21-6484-7665
www.fairwhale.com.cn
Online shop: www.mfplaza.com
Fila
China office
Address: 6F, Guofeng Science Technology Building, No. 1279 West Zhongshan Road, Changning District,
Shanghai 200051, China
Tel.: +86-21-5179-3071; Fax: +86-21-5179-3030; E-mail: [email protected]
www.fila.com
Finity
Address: China Ting Industrial Complex 56 Beisha East Road, Linping Industrial Area, Hangzhou 311100,
China
Tel.: +86-571-8625-9226; Fax: +86-571-8625-9211; E-mail: [email protected]
www.finity.com.cn
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Firs
Address: F1, No. 238 Middle Yunlin Road, Yinzhou District, Ningbo, Zhejiang, China
Tel.: +86-574-8832-3060; Fax: +86-574-8821-3200
www.firs.cn
GAP
Address: Two Folsom Street, San Francisco, CA 94105, United States of America
Tel.: +1-650-952-4400
www.gapinc.com
Online shop: www.gap.com, http://bananarepublic.gap.com, http://oldnavy.gap.com,
http://piperlime.gap.com, www.athleta.gap.com
Gieves & Hawkes
Tel.: +44-20-7434-2001
www.gievesandhawkes.com
Giordano
E-mail: [email protected]
www.giordano.com.hk
Online shop: www.e-giordano.com
Giorgio Armani
Address: Via Borgonuovo 11, 20121 Milano, Italy
Tel.: +39-02-72318-1; Fax: +39-02-7231-8549
www.armani.com
Givenchy
Hong Kong office
Address: 633 King’s Road.Office B.18/F, North Point, Hong Kong, China
Tel.: +852-3195-2200; Fax: +852-2576-4089; E-mail: [email protected]
www.givenchy.com
Gujin
Shanghai Office
Address: F12, Novel Plaza, No. 887, Middle, Huaihai Road, Shanghai, China
Tel.: +86-21-6474-8818, 21-6474-1800; E-mail: [email protected]
www.sh-gujin.com
H&M
Shanghai Office
Address: Room1901-1903,19F, No. 227, Huangpi(N)rd, Huang Pu District, Shanghai 200003, China
Tel.: +86-21-2330-5200
www.hm.com
Online shop:
http://shop.hm.com
Hugo Boss
Address: Dieselstraße 12, 72555 Metzingen, Germany
Tel.: +49-7123-94-0; Fax: +49-7123-94-2014
www.hugoboss.com
Online shop: http://store-uk.hugoboss.com
IKEA
Tel.: +86-21-5425-2345; E-mail: [email protected]
www.ikea.com
Inditex
Address: Avenue. de la Diputación, Edificio Inditex, 15142, Arteixo, A Coruña, Spain
www.inditex.com
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Jack & Jones
www.jackjones.com
Online shop: http://jackjones.taobao.com
http://jackjones.bestsellershop.com
Jeans West
Address: 10F, Xuri Mansion, Juhuayi Road, Jiangbeiyunshan, Huizhou, Guangdong, China
Tel.: 4008-872-872
www.jeanswest.com
Online shop: http://e.jeanswest.com.cn
http://jeanswest.taobao.com
Jiangsu Redbud Dyeing Technology Co., Ltd
Address: 1, Liantangduan, Huyi Road, Changshu City 215551, Jiangsu Province, China
Tel.: +86-512-5244-7333;Fax: +86-512-5244-7000
www.rebud.com.cn
Kaiser
Address: Kaiser Industrial Town, No. 3 Zhujinyi Street, Zhujin Industrial Zone, Longhu District, Shantou,
Guangdong 515041, China
Tel.: +86-754-8880-1888
www.kaiser.com.cn
Kappa
Address: Building 21, No. 2 Jingyuanbei Street, Beijing Economic and Technology Development Zone,
Beijing, China
Tel.: +86-10-6783-6666; Fax: +86-10-6785-6626
www.kappa.com.cn
Les Enphants
Address: 1855, Qixin Road, Minhang District, Shanghai, China
Tel.: +86-21-6419-3780
www.phland.com.cn
Li-Ning
Address: No. 8 Xing Guang 5th Street, Opto-Mechatronics Industrial Park, Zhongguancun Science &
Technology Area Tongzhou District, Beijing 101111, China
Tel.: +86-10-8080-0808; Fax: +86-10-8080-0000; E-mail: [email protected]
www.li-ning.com
Online shop: www.e-lining.com
LV
Address:2 Rue du Pont Nenf 75001, Paris, France
Tel.: +33-155-80-3200
www.louisvuitton.com
Maniform
Address: 71 Leonard Street, New York City, NY 10013-3433, United States of America
Tel.: +1-212-925-3514; E-mail: [email protected]
www.maniform.com
MaxMara
Address: Via Giulia Maramotti 4, 42124 Reggio Emilia, Italy
Tel.: +39-05-22-3991; Fax: +39-05-22-399-3993
www.maxmara.com
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Metersbonwe
Address: No. 800 East Kangqiao Road, Shanghai 201319, China
Tel.: +86-21-3811-9999; Fax: +86-21-3811-9996; E-mail: [email protected]
www.metersbonwe.com
Online shop: http://metersbonwe.mall.taobao.com
Mizuno
Address: 21F, Henglong Square, 1266 West Nanjing Road, Shanghai 200040, China
Tel.: +86-21-3222-4688; Fax: +86-21-6288-0308
www.mizuno.com
MK
Address: Michael Kors (USA), Inc. 11 W. 42nd Street, New York, NY 10036, United States of America
E-mail: [email protected]
www.michaelkors.com
Morgan
E-mail: [email protected]
www.morgandetoi.com
Nautica
Address: Nautica Retail USA, Inc.40 W. 57th St. New York, NY 10019, United States of America
E-mail: [email protected]
www.nautica.com
New Balance
Address: New Balance, Brighton Landing, 20 Guest St, Boston, MA 02135-2088, United States of America
Tel.: +1-617-783-4000; Fax: +1-617-787-9355
www.newbalance.com
Online shop: www.shopnewbalance.com
Next
Address: Next, P.O Box 4000, Sheffield, S97 3ET, England
E-mail: [email protected]
www.next.co.uk
Nike
Address:1 Bowerman Drive, Beaverton, OR 97005, United States of America
Tel.: +1-503-671-6453
www.nike.com
Only
Address: Bestseller A/S, Fredskovvej, 7330 Brande, Denmark
Tel.:+45-99-42-32-00; Fax: +45-99-42-34-99
www.only.com
Online shop:
http://only.bestsellershop.com
Ordifen
Address: No. 7089 Zhongchun Road, Minhang District, Shanghai 201101, China
Tel.: +86-21-6085-0888
www.ordifen.com.cn
Online shop: www.e-ordifen.com
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Peak
Address: Peak Zone, Dongbao Industrial Area, Donghai, Quanzhou, Fujian 362000, China
Tel.: +86-595-2802-8395, 595-2291-3188, 595-2291-9209; Fax: +86-595-2802-8395
E-mail:[email protected]
www.chinapeak.com
Online shop: www.epeaksport.com
Pierre Cardin
Address: Boutique Pierre Cardin, 59 Faubourg Saint-Honore 75008 Paris, France
www.pierrecardin.com
Prada
Address: via Antonio Fogazzaro, 28, 20135 Milan, Italy
Tel.: +39-2-5502-81; Fax: +39-2-5502-8859
www.prada.com
Puma
Address: Puma-Way 1, 91074 Herzogenaurach, Germany
Tel.: +49-9132-81-0; Fax +49-9132-81-2246
www.puma.com
Online shop: www.puma.com/store
Ralph Lauren
www.ralphlauren.com
Online shop: www.ralphlauren.com
Rawcott International Ltd
Hong Kong Office
Address: Room 603, Street, George’s Bldg, 2 Ice House Street, Central, Hong Kong, China
Tel.:+852-2522-1162;Fax +852-2810-5869
http://elitehiend.com
Reebok
Hong Kong office
Address: Suite 1101, 11/F Cityplaza One, 1111 King’s Road, Taikoo Shing, Island East, Hong Kong, China
Tel.: +852-2302-8000; Fax: +852-2302-8637
www.reebok.com
Romon
Address: No. 94 Jiangning Road, Fenghuajiangkou Street, Ningbo, Zhejiang, China
Tel.: +86-574-8855-8888
www.romon.com
Rouse
Address: Rouse Industrial Park, Shiqi Street, Yinzhou District, Ningbo, Zhejiang, China
Tel.: +86-574-8826-0202; Fax: 86-574-8826-3366; E-mail: [email protected]
www.rousegroup.com
Salvatore Ferragamo
Address: Palazzo Feroni Via Tornabuoni 250123 Florence, Italy
Tel.: +39-55-292-123; Fax: +39-55-336-0468; E-mail: [email protected]
www.ferragamo.com
Online shop: www.ferragamo.com
Semir
Tel.: +86-21-6451-1818; Fax: +86-21-6728-8112; E-mail: [email protected]
www.semir.com
Online shop: http://semir.mall.taobao.com
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Shanghai Donglong Feather Manufacture Co., Ltd
Address: 27 of Huaminhanzun International, 726 Yan’an(w) Road, Shanghai, China
Tel.: +86-21-6225-2333 Fax: +86-21-5238-5900
www.donglongfm.com
Shanghai Three Gun Group Co., Ltd
Address: 888, Huangpi Road( s), Shanghai 200025, China
Tel.: +86-21-6373-7888
www.threegun.com.cn
Shenzhen Huafu Textile Holding Group
Address: Block B, Lianhe Square, No. 5022, Binhe Avenue, Futian District, Shenzhen, China
Tel.:+86-755-8369-3666 Fax: +86-755-8373-2646
www.e-huafu.com
Shenzhou International Group
Address: 18 Yongjiang Road, Ningbo Economic and Technical Development Zone, Ningbo, Zhejiang
Province, China
Tel.: +86-574-8698-0888; Fax: +86-574-8698-0022; E-mail: [email protected]
www.shenzhouintl.com
Shuihaier
Address: 100144 Liuniangfu Road, Shijingshan District, Beijing, China
Tel.: +86-10-5263-7306; Fax: +86-10-8874-3664
www.shuihaier.com
Sisley
China office
Address: 52 F, Donghai Square, Tongren Road, Shanghai, China
www.sisley.com
Sunflora
Address: No. 99 Honggang Road Jingzi District, Dalian, China
Tel.: +86-411-8685-8999; Fax: +86-411-8685-8084; E-mail: [email protected]
www.sunflora.com.cn
The North Face
Address: The North Face (Italy) S.r.l.Via Levada 145, 31040 Pederobba, Italy
Tel.: +39-423-683-110; Fax: +39-423-683-120; E-mail: [email protected]
www.thenorthface.com
Tom Tailor Kids
Address: 515 S. Flower Street, Suite 4400.Los Angeles, California 90071, United States of America
www.tom-tailor.com
Tommy Hilfiger
E-mail: [email protected]
http://usa.tommy.com
Tonlion
Address: No. 157-6 Qiwen Road, Ningbo, Zhejiang 315012, China
Tel.: +86-574-8746-6055; Fax: +86574-8746-3672; E-mail: [email protected]
www.tonlion.com
Online shop: http://tonlion.tmall.com
Tony Wear
Address: No. 2046 Long wu Road, Shanghai 200231, China
Tel.: +86-21-6496-8599; Fax: +86-21-5482-6912; E-mail: [email protected]
www.tonywear.com
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Triumph
Address: 12F, Jiushifuxing Mansion, 918 Middle Huaihai Road, Shanghai, China
Tel.: +86-21-6415-5880; Fax: +86-21-6415-3960, www.dlady.net
www.triumph.com
Trussardi
Address: Trussardi S.p.A. Piazza Eleonora Duse n. 4 20122 Milan, Italy
Tel.: +39-02-806-8821; E-mail: [email protected]
www.trussardi.com
Online shop: www.shop.trussardi1911.com
Umbro
Shanghai office
Address: Room801, Xincheng Mansion, 167 Jiangning Road, Jing’an District, Shanghai, China
Tel.: +86-21-5213-1825; Fax: +86-21-5213-1881
www.umbro.com
Uniqlo
Address: 6F, No. 969, West Nanjing Road, Jing’an District, Shanghai 200041, China
Tel.: 400-888-0296
www.uniqlo.cn
UR
E-mail: [email protected]
www.ur.cn
Valentino
www.valentino.com
Online shop: http://store.valentino.com
Vero Moda
Address: Vero Moda, Fredskovvej, 7330 Brande, Denmark
Tel.:+45-99-42-32-00; Fax: +45-99-42-34-99
www.veromoda.com
Online shop: http://veromoda.bestsellershop.com
Versace
Hong Kong office
Address: 30th Floor, The Hennesy 256 Hennesy Road, Wanchai, Hong Kong, China
Tel.:+852-2912-1000
www.versace.com
Wacoal
China Office
Address: Jia 16 Tongji North Road, Beijing Economic & Technological Development Area, Beijing 100176,
China
Tel.: +86-10-6787-2185
www.wacoal.com
Walt Disney
Address: 500 S. Buena Vista St., Mail Code 766, Burbank, CA 91521-7716, United States of America
http://disney.go.com
Online shop: www.disneystore.com
White Collar
Address: Building 8, BDA International Corporation Avenue, No. 2 Jingyuan North Street, Beijing Economic
and Technological Development Zone, Beijing 100176, China
Tel.: +86-10-6785-6688; Fax: +86-10-6785-6766; E-mail: [email protected]
www.white-collar.com
Online shop: http://blnz.tmall.com
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Wrangler
Address: 105 Corporate Center Blvd, Greensboro, North Carolina 27408, United States of America
Tel.: +1-336-424-6000
www.wrangler.com
Yaduo
Address: No. 1 Yaduo Road, Jiuting Town, Songjiang, Shanghai 200032, China
Tel.: +86-2-6304-9566; Fax: +86-2-6418-6684; E-mail: [email protected]
www.yaduokids.com
Yeeshow
Address: No. 205, Renmin Road, Ninghai County, Zhejiang, China
Tel.: +86-574-6557-9310; Fax: +86-574-6557-9318; E-mail: [email protected]
www.yixiutz.com
Yishion
Beijing Office
Tel.: +86-10-8780-6726; Fax: +86-10-8770-6726; E-mail: [email protected]
www.yishion.com.cn
Online shop: http://yishion.taobao.com
Youngor
Address: No. 2 West Section Yinxian Road, Ningbo 315153, China
Tel.: +86-574-8826-5571; Fax: +86-574-8742-5390; E-mail: [email protected]
www.youngor.com
Zara
Shanghai Office
Address: 21F ShengGao International Building, 137 XianXia Road, Shanghai 200051, China
Tel.: +86-21-6161-1900; Fax: +86-21-6228-9051
www.zara.com
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Appendix II
Retailers for garments
Beijing Youyi Shopping City Co., Ltd
Address: No. 52, Liangmaqiao Road, Chaoyang District, Beijing, China
Tel.: +86-10-6465-1188
www.yansha.com.cn
Carrefour
Address: 9F, ShanghaiMart, No. 2299 Yan’an Road (W), Shanghai 200336, China
Tel.: +86-21-2307-8100;Fax: +86-21-6236-1939
www.carrefour.com.cn
Decathlon
Address: 393 Yinxiao Road, Pudong District, Shanghai 201204, China
Tel.: +86-21-6845-5314; Fax: +86-21-5045-5451
www.decathlon.com
Li & Fung Group
Head office
Address: Li fung Tower 888 Cheung Sha Wan Road, Kowloon, Hong Kong, China
Tel.:+852-2300-2300;Fax:+852-2300-2000
Li & Fung Research Centre
Address: 13/F, LiFung Centre, 2 On Ping Street, Shatin, Hong Kong, China
Tel.:+852-2635-5563;Fax:+852-2635-1598
www.lifunggroup.com
Lotus Supercenter
Address: BLD 1 Floor 5, 2128 Yang-gao zhong Road, Shanghai 200135, China
Tel.: +86-21-5136-7980;Fax: +86-21-5135-7955
www.ourlotus.com.cn
Marks and Spencer
Address: Waterside House, 35 North Wharf Road, London, W2 1NW, England
Tel.: +44-20-7935-4422
China office
Address: 863 Nanjing Road West, Shanghai 200041, China
Tel.: +86-21-6218-0580
www.marksandspencer.com
Metro
www.metro.com
Asia Pacific office:
Tel.: +65.6567.8003; E-mail: [email protected]
China Office:
www.metro.com.cn
Muji
Address: 322-330 3F Huamao Shopping Center, No. 79 Jianguo Road, Chaoyang District, Beijing, China
www.muji.com
Shanghai Brilliance (Group) Co., Ltd
Address: 19F of New-century Building, 501 Zhangyan Road, Pudong District, Shanghai 200120, China
Tel.: +86-21-5836-363;Fax: +86-21-5836-0558; E-mail: [email protected]
www.bianliangroup.com
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Shanghai Citic Square
Address: No. 1168 West Nanjing Road, Jing’an District, Shanghai 200041, China
Tel.: +86-21-6218-0180
www.citicsquare.com
Shanghai Jin Jiang Dickson Center
Hong Kong office
Dickson Concepts (International) Ltd
Address: 4th Floor, East Ocean Centre, 98 Granville Road, Tsimshatsui East, Kowloon, Hong Kong, China
Tel.: +852-2311-3888;Fax: +852-2311-2316
Shanghai office
Shanghai Jin Jiang Dickson Center Co., Ltd
Address: 400 Chang Le Road, Shanghai 200020, China
Tel.: +86-21-6472-6888;Fax: +86-21-6472-1502
www.shjjd.com
Shanghai Orient International Trading Co., Ltd
Address: 8, Cao’xi Beilu, Shanghai China, 200030, China
Tel.: +86-21-6487-0000, 21-6487-7745; Fax: +86-21-6487-6360
Shanghai Outlets
Address: No. 2888 Huqingping Highway, Qingpu District, Shanghai, China
Tel.: +86-21-5975-6060
www.bloqp.com
Online shop:
http://blgfsc.blemall.com
Shanghai Textile Holding(Group) Corporation
Address: 1488 Hongqiao Road, Shanghai 200336, China
Tel.: +86-21-6208-9000; Fax: +86-21-6208-2118
www.shtextile.com.cn
Super Grand Mall
Address: No. 168 Liujiazui West Road, Pudong District, Shanghai, China
Tel.: +86-21-6887-7888 Fax: +86-21-6887-1199; E-mail: [email protected]
www.superbrandmall.com
Tesco
Address:1855 Zhongshanbei Road, Shanghai 200061, China
Tel.: +86-21-5294-2239; Fax: +86-21-5294-2239
www.tesco.com, www.cn.tesco.com
Wal-Mart
Address: 2-5/F, Tower 2 and 1-12/F, Tower 3, Szitic Square, 69 Nonglin Road, Futian District, Shenzhen
518040, China
Tel.: +86-755-2151-2288; Fax: +86-755-2151-1076
www.walmart.com, www.wal-martchina.com
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Appendix III Institutions
American Raw-cotton Co., Ltd
Address: 20F Leshi building, 101 Lidun Road, Tongluowan District, Hong Kong, China
Tel.: +852-2890-2755; Fax: +1-202-483-4040; E-mail: [email protected]
www.cottonusa.org
China–ASEAN Free Trade Area (CAFTA)
Address: P.O. Box 28, Xiang He Yuan Post Office, Beijing 100028, China
Tel.: +86-10-6463-2564,10-6466-4339,10-6465-6192;
Fax: +86-10-6465-5230; E-mail: [email protected]
www.cafta.org.cn
China General Chamber of Commerce
Address: No. 25, North Yuetan Street, Beijing 100834, China
Tel.: +86-10-6839-1262; Fax: +86-10-6839-1264; E-mail: [email protected]
www.cgcc.org.cn
China National Garment Association
Address: 12 East Chang’an Street.Beijing 100742, China
Tel.: +86-10-8522-9358;Fax: +86-10-8522-9358; E-mail: [email protected]
www.cnga.org.cn
China National Textile and Apparel Council (CNTAC)
Address: No. 12, East Chang’an Road, Beijing 100742, China
Tel.: +86-10-8522-9207; Fax: +86-10-6512-9545
http://english.ctei.gov.cn
General Administration of Customs of China
Address: No. 6 Jianguomennei Avenue, Dongcheng District, Beijing 100730, China
Tel.:+86-10-651-9411
www.customs.gov.cn
Administration of Quality Supervision, Inspection and Quarantine of China (AQSIQ)
Address: General Administration of Quality Supervision, Inspection and Quarantine, No. 9, Madian East Road,
Haidian District, Beijing 100088, China
E-mail: [email protected]
www.aqsiq.gov.cn
Ministry of Commerce of the People's Republic of China Department of International Trade and
Economic Affairs
Address: No. 2 Dong Chang’an Avenue, Beijing 100731, China
Tel.: +86-10-6512-1919; Fax: +86-10-6567-7512
http://gjs.mofcom.gov.cn
National Bureau of Statistics of China
Address: No. 57, Yuetan Nanjie, Sanlihe, Xicheng District, Beijing 100826, China
Fax: +86-10-6878-2000; E-mail: [email protected]
www.stats.gov.cn
United Nations Commodity Trade Statistics Database (UN Comtrade)
Address: Director, Statistics Division, United Nations, New York, NY 10017, United States of America
Fax: +1-212-963-4116; E-mail: [email protected]
http://comtrade.un.org
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United States Department of Agriculture
Address: United States Department of Agriculture, 1400 Independence Ave., S.W. Washington, DC 20250,
United States of America
Tel.: +0-202-720-2791
www.usda.gov
WTO/TBT National Notification Authority and Enquiry Point of China
Address: Sanyuan Tower, 18 Xibahedongli, Chaoyang District, Beijing 100028, China
Tel.: +86-10-8200-0278/79 ext: 8036; Fax: +86-10-8200-0278/79 ext: 8001
Contact person: Mr Wang Rongrong
E-mail: [email protected]
www.tbt-sps.gov.cn
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