Risks and opportunities for China’s garment industry

China's clothing manufacturer
Risks and opportunities for China’s garment industry

Economic development has brought what results?
For Chinese garment manufacturers, may be a nightmare.

Although China used to be one of the largest apparel exporter national , and the garment industry as the pillar of the national economy. But in recent years the situation is changing, a transition is underway in the garment industry.

The main reason is because China’s labor costs are higher.
Five years ago, a Chinese sewing workers can get 2,500 yuan salary per monthly , clothing manufacturers can accept overhead, workers are willing to do this the work.

But with China’s economic development, most of the work’s income increase , especially in the financial industry, IT industry. people are increasingly unwilling to come garment factory.

Chinese clothing manufacturers are now facing competition from other countries, such as Ethiopia, Bangladesh and so on.

As reported by NPR, China is projected to lose 85 million manufacturing jobs in the coming years as labor costs and quality of life continue to grow throughout the country. As a result, clothing manufacturing will likely soon be viewed as an unfavorable career choice, and major garment companies have started to make their clothes elsewhere. Namely: Ethiopia, Myanmar, and Haiti.

Lower labor costs in these countries, roughly equivalent to China 10 years ago. But there is a very serious problem: “sweatshops”

Faced with this competition, As a Chinese clothing manufacturer’s representative, how Askwear need to do?

1, Complete elimination the sweatshops, As a model for other countries, increase worker happiness, attracting more workers to come to work.

2, reduce costs, increase profits and improve workers’ wages.

3, Continue to raise the level of apparel production process, Use the opportunity of other countries’s low production craft.

4, Diversified market strategy, from clothing manufacturing transition to clothing brand.

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