Chinese Apparel Manufacturers: As Industry Matures, Brand Development May be the Key to Growth

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In the five years to 2016, revenue within the Apparel Manufacturing industry in China will increase from $196.84 billion in 2011 to $262.38 billion in 2016, representing an average annual growth rate of 5.9%. Industry growth is expected to be slower in future years as the industry matures. IBISWorld, America’s largest publisher of industry research, expects successful companies to focus on establishing broader brand identity over the next five years.

IBISWorld Market Research

IBISWorld Market Research

Chinese enterprises may focus on high-end products to achieve high profits

Driven by increases in domestic and foreign demand, output and revenue of the Apparel Manufacturing industry in China continued to increase steadily in the first nine months of 2011, according to IBISWorld, America's largest publisher of industry research. The rising proportion of high-end products further contributes to the revenue growth. Industry revenue is estimated to have increased by 10.2% to $196.84 billion for the whole year, with an annualized increase of 16.6% from 2006 to 2011.

In the five years through 2011, domestic demand, especially from the thriving second- and third-tier cities, was a strong driver of revenue growth. However, high inflation expectations among consumers are forecast to cast a negative influence on industry performance. Industry revenue in the five-year period to 2016 is estimated to increase at an average annual rate of 5.9%, to a forecast $262.38 billion in 2016.

Competing imports are forecast to surge by 57.8% in 2011 to $2.04 billion, accounting for 1.4% of domestic demand, according to IBISWorld.

As the industry matures and faces currency appreciation and rising material prices, Chinese enterprises may focus on high-end products to achieve high profits. IBISWorld forecasts that more Chinese enterprises will focus on the establishment of their brand names. These companies are expected to continue setting up specialty stores in foreign markets and to attend well-known fashion events to build brand awareness.

For more information, including profit levels, market shares, product segmentation and more, purchase IBISWorld’s full report on the Apparel Manufacturing industry in China for $825 at ibisworld.com.cn.

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Apparel Manufacturing in China – Key Report Topics
Industry Performance
Executive Summary
Key External Drivers
Current Performance
Industry Outlook
Industry Life Cycle
Products & Markets
Supply Chain
Products & Services
Major Markets
Globalization & Trade
Business Locations
Competitive Landscape
Market Share Concentration
Key Success Factors
Cost Structure Benchmarks
Barriers to Entry
Major Companies
Operating Conditions
Capital Intensity
Key Statistics
Industry Data
Annual Change
Key Ratios

About IBISWorld Inc.
Recognized as the nation’s most trusted independent source of industry and market research, IBISWorld offers a comprehensive database of unique information and analysis on 200 Chinese industries. With an extensive online portfolio, valued for its depth and scope, the company equips clients with the insight necessary to make better business decisions. Headquartered in Los Angeles, IBISWorld serves a range of business, professional service and government organizations through more than 10 locations worldwide. For more information, visit http://www.ibisworld.com.cn or call 1-800-330-3772.

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Jordan Ho
IBISWorld
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