According to latest Chinese Customs Statistics from January to August 2019, China’s exports of textiles and apparels to the US, during the first half of 2019, reached $21.23 billion, with growth slowing by 1.6 per cent year over year. Clothing accounts for 73 per cent of those exports, and textiles make up the other 27 per cent.
Growth of China’s textile exports is higher than in the garment sector. This is mainly due to the incompleteness of supply chains of low-cost countries like Bangladesh and Cambodia. Shortage of raw materials and fabrics boosted China’s textile exports as well. A survey conducted at last month’s Sourcing Summit New York revealed 35 per cent attendees from major global apparel brands and retailers intend to reduce their China sourcing.
Those investments are going toward setups in places like Vietnam, Cambodia and Bangladesh, in order to retain an opportunity to serve US brands and retailers wherever they’re headed, and to avoid the tariffs that are making things tricky in China, however, many still rely on inputs from China.
For some products with complex procedures, the delivery time in Southeast Asia is at least one month slower than in China. Therefore, brands with fast-fashion items that need to be replenished quickly are still better off staying in China.