News

China Sourcing Report 2008: Denim Garments - There Are More Than 9,000 Suppliers in the Line, About One-Third of Which Are Trading Companies

DUBLIN, Ireland-(Business Wire)-October 2, 2008 - Research and Markets (http://www.researchandmarkets.com/research/7d2162/china_sourcing_rep) has announced the addition of the "China Sourcing Reports: Denim Garments" report to their offering.

The world's largest exporter of denim garments, China accounts for about 50 percent of global supply. The country's 9,000 suppliers have been posting an average 15 percent export growth for each of the past four years, and shipped out approximately $3 billion worth in 2007.

Challenges posed by the yuan's appreciation and rising costs, however, are threatening to curb healthy sales growth. To stay afloat, many companies will be raising export prices in the months ahead. A number of suppliers are also implementing measures to minimize foreign exchange losses, including reducing the validity period of export prices and quoting in currencies other than the US dollar.

In addition, rising costs are encouraging some makers to implement sustainable practices in production. Although the main goal is to reduce manufacturing expenses, such measures are indirectly promoting environment-friendly processes.

This updated Global Sources report will guide you in this dynamic industry, answering questions such as:

- Which companies are offering the best products at the best prices?

- What are the latest material and finishing trends?

- How will rising production costs affect pricing in the next 12 months?

- How are suppliers dealing with the currency situation?

- Which countries do exporters focus on?

- And much more...

What you'll get

- In-depth profiles of 18 major suppliers with a comprehensive look at their product and pricing strategy, manufacturing and export capability, verified contact details, and more — this information is not available anywhere else

- Profile tables of 24 additional suppliers, with key information such as production capacities, export capabilities, primary export markets and main machinery

- 115 full-color images representing popular denim garment export models, complete with product descriptions, prices, minimum order requirements and delivery times

- Results of the custom-designed supplier survey, which forecasts industry trends for the next 12 months

- Verified supplier contact details, including names, e-mails, telephone numbers and websites of profiled makers

- This report covers jeans and shorts, jackets and vests, and skirts and dresses

Executive Summary:

China is the world's largest supplier of denim garments, accounting for about 50 percent of shipments in the line.

The country has been experiencing 15 percent export growth for the past four years. Shipments in 2007 were estimated to have reached $3 billion.

There are more than 9,000 suppliers in the line, about one-third of which are trading companies, exporting mainly to the US and the EU. They cater mostly to OEM clients, including fast-fashion retailer H&M and denim specialists Levi's and DKNY.

Even with the challenges posed by the appreciating yuan and the weaker US dollar, companies have no plans of exploring other markets. This comes as most makers have already cultivated a solid client base in the US and the EU. In addition, other export destinations might be more price-sensitive and be less likely to accept higher quotes.

The following are some of the key trends we see in China's denim garments industry:

- The stronger value of the yuan against the US dollar and higher production costs are leading makers to raise export prices in the months ahead. The possibility of reinstated export tax rebates for garments, however, has led suppliers to cap increases at 5 percent

- The yuan's continuous appreciation has led many makers to implement strategies aimed at minimizing currency losses, ranging from reducing the validity period of export quotes to availing financial tools offered by local banks

- Rising costs are also forcing some companies to expand their presence in the domestic market. Suppliers that have already invested in R&D and brand building may be able to generate better margins in the increasingly lucrative local market

- Other makers are choosing to focus on trading instead, as they are finding it more difficult to recoup investment in machinery and other fixed assets. Unlike manufacturers, traders are also able to post higher profit gains

- Escalating costs have spurred some makers to implement sustainable practices as well. Although the main goal is to reduce production expenses, such measures are indirectly promoting environment-friendly processes

China denim garment makers produce jeans, shorts, jackets, vests, skirts and dresses. While most suppliers offer a range of garments across all categories, some specialize in one or two lines.

Key Topics Covered:

INDUSTRY OVERVIEW

Supplier summary

Major customers

Production & exports

Main production centers

Supplier demographics

Products & prices

Export statistics

Price guide

Top exporters

Supplier survey