China’s apparel industry is expected to jump 8.2 per cent, an annualized increases of 10 per cent over the past five years. However, even though exports are a strong, but shrinking. In 2013, exports are expected to increase 6.6 per cent, representing 25.2 per cent of industry revenue. Exports as a share of revenue peaked at 86.8 per cent.

Rising cost of raw materials and higher labor costs have led to a decrease in profits in recent years. In 2013, profit as a proportion of industry revenue was estimated at 6 per cent. By 2018, revenue within the apparel manufacturing industry in China is expected to increase at an average annualized rate of 6.9 per cent. Increasing disposable income in rural areas and Tier II, III cities will be a major driving force behind the industry’s growth. However, trade barriers, currency appreciation and rising raw material prices will challenge apparel manufacturers over the period.

Under the sluggish domestic economic conditions in 2012, consumers became more price-sensitive when purchasing apparels. A number of consumers tended to shop via the net which provides higher discount rates than store-based outlets. In addition, a large number of players collectively opened online outlets in 2012.