Global Fabric and Apparel Trade Dynamics and Trend

Global Fabric & Garment Industry Pattern Change

Now, with the structural recovery of economy, the global fabric and garment industry is facing a series of internal and external new situations: the emerging economies is becoming the import market of consumer goods, manufacturing labor costs in China continues to rise as well as a number of heavyweight free trade agreement promulgated and implemented, these factors, in a certain way, are rewriting the pattern of global fabric and garment industry. The status of "Big Brother" of Chinese fabric and apparel exports is difficult to shake off, but the export advantage began to face a squeeze. In 2010, from the terms of the total export value, China’s fabric and garment export value to the global markets reached $ 77 billion and $ 129.8 billion, were ranked the first in the world, the export leader position can not be replaced by any countries or regions in the short term. However, from the point of view of the market share, Chinese fabric and apparel export advantages is facing an unprecedented pressure.

Wholesale Fabric is Sensitive to Global Economy

Ever since the elimination of quotas in 2005, the global fabric and apparel trade trend shows a greater volatility. By exploring the trend of the law is not difficult to find, global fabric and apparel trade is synchronized with world economic development, and it is highly sensitive to economic fluctuations. According to the World Trade Organization (WTO) recently released its annual statistics, from 2005 to 2011 the development of global striped denim fabric export growth is consistent to the world economic growth trend. When the world economy is in a rapid growth phase (2005 ~ 2007), the fabric and apparel trade has shown a steady growth. The year 2008 to 2010 when the world economy fell into financial crisis, the scale of trade had plummeted, and the 2009 global fabric and garment exports dropped by 15.5% and 13.2% respectively.

Greater Volatility of Global Denim Fabric Trade

It is noteworthy that the global fabric and apparel trade is more intense than the macroeconomic volatility. For example, the 2011 world economic growth from 5.2% of 2010 fell to 3.9%, and the global fabric and apparel exports has shrunk dramatically to 25.7% and 30.4%. This phenomenon is not unrelated to the current mode of production of wholesale denim fabric and clothing "global manufacturing". Production assembly-line "between countries, and thus the size of the intermediate goods trade can be several times larger than the finished product trade, when the end product demand changes, the whole supply chain of trading activities are subject to the contagion effect , and the shock effect is magnified.

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