China Round Up
(Contd. from page 3...)
Meanwhile, China's textile industry is still faced with such structural contradictions as the lack of innovative ability and self-owned brands.
Textile enterprises are generally based on OEM for export and boast a very low proportion of self-owned brands, thus possessing little control over export marketing channels. Currently, China's high-end textile and garment market is mainly dominated by international famous brands. Domestic export enterprises are mainly based on OEM, and the profit made by these enterprises takes up only around 10 percent of the overall market profit. Although the textile industry claims 175 national famous brands, none of them are internationally renowned.
According to the survey by China National Garment Association, while textile enterprises above-designated size enjoy sustained growth in terms of their overall performances, 20 percent of SMEs suffer increasing losses. Among all garment companies, shirt manufacturers suffer most serious losses with the loss proportion reaching nearly 50 percent.
While the comparative advantage in labor gives way to that in innovation, which determines the added value in the supply chain, in global textile competition, many strong domestic companies start the attempt to build up international marketing networks, improve the quality and promote the brand, so that they could gradually break away from the competition based on expanding scales at a lower level.
Fostering self-owned brand names, investing more in the design and campaign of brand, increasing technology content and controlling marketing channels are now becoming the key for the textile industry to move toward the high-end of the supply chain and improve the added value of its products.
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