China Back on Growth Track

From Inside Fashion
Photo: Courtesy of Wikipedia

China's economy is starting to pick up momentum again.

While manufacturers are still struggling with price pressure from buyers, orders are increasing - at least for the better suppliers.  In the competitive global arena, success is heavily skewed to the more efficient and innovative, with those who have failed to upgrade being left behind.

Part of what's fueling orders is increased demand from China's domestic brands.  On average, suppliers told Inside Fashion that the domestic market now accounts for 30-50 percent of their orders, from less than 10 percent as recently as two years ago.
“China is our largest market outside of the EU and it is also our fastest growing market. There are a lot of Chinese brands looking for better fabrics,” Nathalie Loubeyre, commercial manager at Piero Galli (Italy) told Inside Fashion.
The growing buying power of the domestic market, coupled with unstable economic conditions in the key export markets, has almost every mill looking for ways to break into or expand in China.
“The Western markets are stable - we are not losing market share, but we are not seeing growth,” said Terence Cheng, sales manager at Tai Fung Textiles (Hong Kong), a supplier of high-end wool suiting fabric.  In contrast, the China market is picking up, he said.
Chinese brands will often pay higher prices for materials than international brands making the market even more attractive.
“Chinese buyers want something unique and they are willing to pay for it,” said Fabien Sicomois at Goutarel (France), offering elegant jacquards at €35-60 per meter.

Learn more about Inside Fashion here.