This presentation gives insights into the Chinese apparel industry and its predicted growth. The presentation concurs that the domestic market for apparel in China has been growing at an astoundingly high rate whereas the overseas demand is in decline. Further the need to recapture the overseas demand for Chinese apparel is discussed.

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Chinese Apparel Autocracy
April 8, 2013
Procurement Consulting – Brickwork Sourcing
Brickwork India (Confidential)

2. Current Scenario
 The Chinese apparel market is currently being dominated by the women’s
wear segment.
 In China the Zhejiang region accounts for the maximum number of
apparel clusters, followed by Jiangsu and Guangdong.
 There was reduction in both the Chinese textile sector’s gross industrial
output (18.8 percent) as well as China’s textile export rate (25 percent)
during the first six months of 2012.
 According to statistics, there are more than 100,000 garment
manufacturers employing over 10 million people in China.
 According to a new research study by RNCos, the Chinese apparel market
is estimated to grow at a CAGR of 7% during 2012-2016 and it has been
estimated that the country’s apparel market was worth 138 billion USD in
2012.
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3. The Future Road
 The domestic market for apparel in China has been growing at an
astoundingly high rate whereas the overseas demand is in decline.
 Factors which might play a major role in the future include increasing
foreign player participation; rising investments and domestic player’s
expansion.
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4. Growth Drivers and Opportunities
 Brands such as H&M, Gap, Uniqlo and Zara are opening more new outlets
in China.
 Several leading fast fashion apparel players are expanding their focus
from first tier cities such as Shanghai and Beijing to lower tier cities across
China.
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5. Market Potential
 Based on the current market trends and the increasing number of fashion
conscious youth, the growth of the local apparel industry in China will
continue.
Brickwork Sourcing provides end-to-end procurement research and
consulting services to clients from all major continents. It specializes in
assisting clients with low cost country sourcing as well as Indian market
entry assessments.
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6. About Brickwork Sourcing
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out errors in judgment or application. The document is intended for “information” and “general guidance” purposes only.” Investment
decisions and/or other decisions based on the conclusions and potential strategies mentioned in the document are not necessarily
endorsed by the Brickwork management.” 6

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THANK YOU
Contact:
info@brickworksourcing.com
Sanjeeth Hegde
India: +91 (80) - 4040 – 9999 (218 Ext)
8 April 2013