The textile’s world in China is now at its peak. China gets most of the clothing global market and exceeds its main rivals from far. Indeed, it is difficult for any country in the world to compete against the giant Chinese industry. The country has all the resources to make thousands of textile factories run at the same time. Millions of workers are working day and night in China to meet the world clothing need. If China used to be pointed at by product quality nicknamed « Made in China », this is no longer the case anymore. Today, quality is also part of various products « Made in China ».
China’s Success in the Textile Industry
This success, China fully deserves it. Indeed, there are million of Chinese working tirelessly in this sector. Thanks to the 1.3 billion inhabitant, China has an inexhaustible human resources. As for infrastructure, China is probably one of the best equipped country in the world regarding industrial equipment. Chinese factories enjoy a complete industrial chain, which means that all the garment manufacturing is done within a single plant. Production capacity of Chinese textile factory is impressive and Chinese generally respect the time delivery. This is the reason why most brands and subsidiaries clothing store opt for China to manufacture their product.
One of the greatest assets of China is the direct access to garment manufacturing raw materials. Indeed, Chinese factories don’t need to import any material from abroad. China is also ranked in the top 5 largest textile exporters in the world. The country produces almost everything that keep the economy going.
The Recent Offshoring in Southeast Asia
The Chinese are more and more greedy when it comes to the world of textiles. While in China, thousands of factories operate day and night to meet the international demand, Chinese manufacturers go beyond their borders to expand their activity. Indeed, many Chinese factories have been relocated to Southeast Asia in recent years. The main reason for this outsourcing is mainly related to the production low cost in these countries. For example, in Cambodia, the minimum month wage is 60 euros. Chinese manufacturers find more profitable to settle down in Southeast Asia where most of the countries are exempt of tax for products going to Europe.
Indeed, many factories will have to shutdown around the world, as it is almost impossible to price as low as in China.
China remains unbeatable in the textile world. However, this Chinese domination is not without risk for the global economy. Indeed, many factories from all over the world will have to close down because of the very competitive price that China offer.