China’s industrial transition
Since 2015, China’s apparel manufacturing industry has undergone a profound transition. The rising labor costs have shifted the sector towards a less labor-intensive and highly automated direction. Geographically, many apparel enterprises have relocated to lower-labor cost labor regions, such as Western and Middle China. Technologically, apparel enterprises upped their research and development spending. In 2020, more than 26,000 R&D projects were carried out in the textile and clothing sector in China. Nevertheless, an increasing number of apparel enterprises exited the market during the industrial upgrade and structural transformation.
Apart from manufacturing, China’s apparel export industry also faced significant challenges resulting from recent international trade disputes and increasing production costs. China’s clothing export value and global share have continuously dropped between 2014 and 2020. In the meantime, several rising apparel manufacturing counties in Southeast Asia started to threaten China’s leading position.
Nevertheless, China’s garment exports saw an upsurge amid the Coronavirus pandemic in 2021. In contrast to many countries that shut down clothing manufacturing during lockdowns, Chinese clothes makers benefited from the country’s effective pandemic control.
The rise of the domestic market
Giving consideration to the competitive international market, China’s garment enterprises sought new opportunities from the domestic market. Owing to the growing disposable income, the average expenditure on clothes and shoes in China surged over the past two decades. Also, Chinese consumer’s willingness to buy domestic brands increased substantially. According to a survey conducted in 2021, around 60 percent of Chinese consumers had bought fashion items from domestic clothing brands.
Adding to the ever-increasing demand for fashion, the prevalence of online shopping also boosted China’s apparel retailing sector. In 2020, more than one-third of the apparel sold in China was via online retail platforms. To improve consumers’ online shopping experience, Chinese apparel retailers have invested in innovative technologies. In spring 2020, China’s online retail leader Alibaba rolled out its first virtual dressing room. Consumers could virtually try on more than 600 pieces of luxury items. According to Statista’s Digital Market Outlook on the apparel industry, by the end of 2025, nearly 60 percent of China’s apparel market revenue will be generated through online sales, well ahead of the global average of 43 percent.
This text provides general information. Statista assumes no liability for the information given being complete or correct. Due to varying update cycles, statistics can display more up-to-date data than referenced in the text.
FAQs
The country accounted for more than half of the global textile and clothing production, as well as more than 30 percent of worldwide apparel exports. However, in recent years, China's clothing sector has slowed down its expansion, aiming to build a more sustainable and technology-intensive industry.
What impact do garment industries have on the economy of China? ›
According to the National Bureau of Statistics, the main business income of apparel enterprises above the designated size totaled about CNY 1.21 trillion, with a year-on-year decline of 5.4%; the total profit was CNY 61.38 billion, down by 3.39% year-on-year.
Why is China a major manufacturer of clothing? ›
Given the abundance of Chinese products in the marketplace, it's understandable consumers might wonder why so many goods are made in China. One of the reasons companies manufacture their products in China is because of the abundance of lower-wage workers available in the country.
Why is China losing its competitive advantage in textile and apparel production? ›
China attributes its declining competitive advantage mainly to the rising costs of labor and raw materials (“2016 Top Markets,” 2016), two of the factors that contributed to its fast economic growth.
How big is the China apparel market? ›
China Apparel Market Report Overview
The China apparel market size was valued at CNY2. 89 trillion in 2023. The market will grow at a CAGR of more than 9% during 2023-2027. The China apparel market report offers data that showcase the trends in the market and sectors by value and volume.
What clothing is China known for? ›
Chinese clothing includes the traditional hanfu and garments of ethnic minorities, as well as modern variations of indigenous Chinese dresses. Chinese clothing has been shaped through its dynastic traditions, as well as through foreign influences.
What percent of clothes are made in China? ›
China produces 65% of the world's clothing, with a majority of these clothes being labeled as "fast fashion". The top ten competitors in the fast fashion market make up 29.13% of the whole fashion market in 2020.
How has China influenced fashion? ›
Chinoiserie continues to appears in fashion creation in present-days. Luxury fashion brands such as, Louis Vuitton, Dior, and Chanel, etc., were also inspired by Chinese art and aesthetics, these influences are sometimes reflected in their creation of colours and the patterns found on their fabrics.
How does the clothing industry affect the world? ›
Waste occurs at every stage of the garment manufacturing process, harming wildlife, degrading land, and polluting soil and water. The fast fashion industry is a significant contributor to the climate crisis, responsible for as much as 10% of global carbon dioxide emissions.
What is the largest clothing company in China? ›
Here are the top 10 clothing manufacturers in China for 2024
- #1. Hula Global:
- #2. Shandong Jining Ruyi Woolen Textile Co., Ltd.:
- #3. Shenzhen Global Weiye Clothing Co., Ltd.:
- #4. H&Fourwing:
- #5. Shenzhen Doven Garment Co., Ltd.:
- #6. HTX Garment Co., Ltd.:
- #7. Xiamen Wingtas Group Co., Ltd.:
- #8.
These questions are explored below. In essence, China has a comparative advantage in manufacturing due to its lower labour costs, extensive infrastructure, and large – scale production capabilities. Comparative advantage means that countries can produce goods at a lower opportunity cost than another country.
Are clothes made in China ethical? ›
Unethical factories and unfair wages do exist in China…just as they do in the United States. Between Los Angeles' garment workers, working conditions for New York City salon staff, and the “Made in America” nationalism movement, exploitation has become far too commonplace here, too.
Which country will replace China manufacturing? ›
India and Vietnam are attractive manufacturing alternatives for foreign investors and companies, due in part to low labor costs. Between the two, however, Vietnam is still way ahead with 2023 exports totaling $96.99 billion, compared with India's $75.65 billion.
What does China manufacture the most? ›
The great bulk of China's exports consists of manufactured goods, of which electrical and electronic machinery and equipment and clothing, textiles, and footwear are by far the most important. Agricultural products, chemicals, and fuels are also significant exports.
What is the problem with the apparel industry? ›
The fashion industry is known for its significant environmental footprint, including carbon emissions, water usage, chemical pollution, and waste generation. Ensuring fair wages, safe working conditions, and ethical treatment of workers throughout the global supply chain is an ongoing challenge.
What is China's industry like? ›
Key Takeaways. China is one of the largest countries in the world and a significant manufacturer and producer of industrial goods. The country's services sector is propelling its economic output followed by manufacturing and industry, with agriculture rounding out the list of top three sectors.
What are the working conditions in clothing factories in China? ›
Major decent work issues in the industry are: excessive overtime, forced labour, child labour, unsafe working conditions, and gender discrimination.
What is the current fashion trend in China? ›
SHANGHAI -- "Neo-Chinese style," a mixture of classical attire and everyday clothes, has become the latest fashion trend in China. The boom is backed by young people's growing confidence in and attachment to their country.
What percentage of clothing is manufactured in China? ›
Currently, China produces 65% of the world's clothes and is the world's largest manufacturer and exporter of textiles.
