《Apparel Manufacturing in China 2010-2016.pdf》由会员分享，可在线阅读，更多相关《Apparel Manufacturing in China 2010-2016.pdf（43页珍藏版）》请在三一文库上搜索。
1、 IBISWorld and ACMR China Industry Report 31 May 2010 Apparel Manufacturing in China: 1810 DISCLAIMER This product has been supplied by IBISWorld Inc. (IBISWorld) solely for use by its authorized licenses strictly in accordance with their license agreements with IBISWorld. IBISWorld and All China Ma
2、rketing Research Co., Ltd. (ACMR) makes no representation to any person with regard to the completeness or accuracy of the data or information contained herein, and it accepts no responsibility and disclaims all liability (save for liability which cannot be lawfully disclaimed) for loss or damage wh
3、atsoever suffered or incurred by any other person resulting from the use of, or reliance upon, the data or information contained herein. Copyright in this publication is owned by IBISWorld Inc. and All China Marketing Research Co., Ltd. (ACMR). The publication is sold on the basis that the purchaser
4、 agrees not to copy the material contained within it for other than the purchasers own purposes. In the event that the purchaser uses or quotes from the material in this publication - in papers, reports, or opinions prepared for any other person - it is agreed that it will be sourced to IBISWorld In
5、c. Contents Industry Definition 3 ACTIVITIES (PRODUCTS AND SERVICES)3 SIMILAR INDUSTRIES3 DEMAND (2) Income tax of 25%. A new single income tax system has been implemented in 2008. Both domestic and foreign enterprises are required to pay income tax at a rate of 25%, and favorable tax policies are o
6、nly applicable to the high-tech companies and small- scale domestic firms; (3) CMCT (city construction and maintenance tax) of 1% to 7%. This rate varies according to the location of the enterprise; and, (4) ECEF (extra charges of education funds) of 3%. INDUSTRY CONDITIONS Apparel Manufacturing in
7、China 31 May 2010 Copyright 2010, IBISWorld Inc., All China Marketing Research Co., Ltd. 20 INDUSTRY ASSISTANCE The level of Industry Assistance is medium The trend of Industry Assistance is steady Key Tariffs Goods Low Rate* High Rate* Coats 17.5 130.0 Suits 15.0 130.0 Trousers 16.0 130.0 Shirts 16
8、.0 130.0 *Percentage of value unless otherwise specified To help Chinese enterprises to develop foreign markets, the central government has provided a series of preferential policies. Chinese enterprises are encouraged to establish sales networks, set up specialty stores, and build delivery centers
9、and R (2) Enterprises must comply with local and provincial government environmental and zoning regulations before establishment; (3) Enterprises are required to meet the government occupational health and safety regulations, acts and requirements for employees, contractors and visitors; and, (4) En
10、terprises are subject to environmental laws and regulations regarding discharge of waste and chemicals into the environment. As a large amount of Chinas apparel products are exported to other countries, international laws and regulation are important for this industry. In textile and clothing indust
11、ries, importing countries, in the interest of protecting their own industries, would establish quotas to limit import volumes from certain countries. Countries, which imposed quotas on Chinese apparel products included the US, European Union, Turkey and Canada. In accordance with the WTO commitment,
12、 the global quota system for textile trading was eliminated since January 2005, although the US has recently re-introduced tariffs on some specific Chinese apparel imports. According to WTO agreement, China is not only obliged to comply with all obligations of the multilateral trade agreements impos
13、ed upon all WTO members, but also “WTO-plus“ obligations that are only applicable to China. Paragraph 242 of the report of the Working Party on the Accession of China, the so-called “textile specific safeguard clause“ is to protect market disruptions in foreign countries caused by imports of China t
14、extiles. It stipulates that WTO members, who believe imports of Chinese textiles and apparel are threatening the orderly development of trade in these products in their countries, can request consultations with the Peoples Republic of China with a view to easing or avoiding such market disruption. T
15、he US and EU (the major destinations of Chinas exports) often demand China to restrict its apparel exports to those countries based on paragraph 242). Therefore this paragraph can have a big impact on the development of this industry. COST STRUCTURE Year: 2010 Item Cost % Purchases 65.9%* Wages 11.0
16、%* Rent 4.5%* Utilities 3.3%* Depreciation 2.1%* Other 8.5%* Profit 4.7%* INDUSTRY CONDITIONS Apparel Manufacturing in China 31 May 2010 Copyright 2010, IBISWorld Inc., All China Marketing Research Co., Ltd. 22 This industry has a relatively low profit level. In recent years, rising labor and raw ma
17、terials costs, currency appreciations and reductions on export rebates have brought negative impacts on the industrys profit level. As large-scale enterprises are able to produce high value-added products, their profit level is higher compared with small-scale enterprises, which only produce some ba
18、sic products. The largest component of a firms expense is made up of purchases, including materials such as fabrics and yarns. ACMR-IBISWorld estimates that purchases will account for about 65.9% of industry revenue in 2010. In recent years, rising oil prices and increasing global and domestic deman
19、d for raw materials have led to higher prices and have increased purchase costs. Labor costs make up a relatively large proportion of industry revenue at a forecast 11% in 2010, including management and administration expenses. This industry is quite labor-intensive. However, compared with developed
20、 countries, China has a very low level of labor costs as wages are very low. In comparison, wages per hour for an industry worker is only $0.70 in China, ranked 48th in the world. This level is around 2.7% of Japanese wages, 5% of US wages, 12.5% of Korean wage levels, and this is also 40% lower tha
21、n that of some developing countries, such as Thailand and Malaysia. With the rapid rate of economic development, labor costs as a share of total industry revenue have increased substantially in recent year (although this is from a low base), particularly in coastal areas. The Apparel Manufacturing I
22、ndustry in China is also characterized by a low education level of its workers. Staff with a university degree and above made up only 9.4% of its total employment. By contrast, 76.6% of total employment is of people of high school level and below. Depreciation is estimated to account for about 2.1%
23、of industry revenue in 2010. This is allocated for manufacturing machinery and equipment, office equipment, houses and buildings. A rising depreciation level in recent years indicates increasing investment on equipment. Other costs include promotion and advertisements, transportation costs, and insu
24、rance, making up 8.5% of industry revenue. As firms attempt to gain an advantage in the market, advertising and promotion costs increase. CAPITAL AND LABOR INTENSITY The level of Capital Intensity is low Although the application of advanced equipment has made the industry more capital-intensive in r
25、ecent years, manual labor is still mainly required to operate the equipment Cutting and sewing of fabric is traditionally labor intensive and continues to be so in China There is variation in capital intensity, with large-scale manufacturers tending to be more capital intensive than smaller ones Inc
26、reasing investment in sales network development needed An ACMR-IBISWorld analysis of the capital labor intensity in this industry shows that this industry is traditionally labor- intensive with large employment volumes involved in production, such as in the cutting and sewing of fabrics. INDUSTRY CO
27、NDITIONS Apparel Manufacturing in China 31 May 2010 Copyright 2010, IBISWorld Inc., All China Marketing Research Co., Ltd. 23 Large-scale enterprises with stronger financial strength improve product quality by increasing investment on manufacturing equipment and machinery, while small enterprises pu
28、t limited capital investment and only produce basic products by relying on large volumes of manual labor. There have been increases in capital investment within the industry as firms attach greater importance on technology improvement and innovation. A stronger Chinese currency has enabled domestic
29、firms to import foreign equipment at cheaper prices. Therefore many firms have taken the opportunity to carry out their technology upgrades. In the early years of the industrys development, manufacturers preferred to rely on distribution channels, such as department stores for sales. In recent years
30、, the development of specialty stores has intensified. As China is a large market, developing a retail network requires a large amount of capital. TECHNOLOGY AND SYSTEMS The level of Technology Change is medium This industry is subject to a medium level of technology change and industry operators ar
31、e accelerating their technological upgrades. There is a distinct difference in terms of technological levels between enterprises. Large-scale enterprises improved their technology by directly introducing foreign equipment or forming joint ventures with foreign companies. Having realized the necessit
32、y of improving product quality, larger Chinese enterprises have introduced advanced technologies and systems in their operations. Major suppliers of imported equipment are Japan, the US, Germany and Italy. Systems such as CAD (computer added design) have been adopted by large-scale enterprises to en
33、hance production efficiency and product quality. Technologies, such as wrinkle-free and no iron fabrics are widely used in the production of shirts, trousers and casual wears. Green products, which are made of environmental-friendly materials, are also now being produced in China. Forming alliances
34、or partnerships with foreign enterprises is another way to improve technological levels. Attracted by low-labor costs and large markets, more foreign enterprises with higher technology levels have entered Chinas market by establishing wholly-owned enterprises or joint ventures. By contrast, medium-
35、to small-scale enterprises often utilize low levels of technology and are only able to produce basic products of low value added. Small enterprises are often unable to import advanced technology due to funding constraints. There may also be a lack of brand culture within some enterprises, which focu
36、s on non-branded, low-end apparel. INDUSTRY CONDITIONS Apparel Manufacturing in China 31 May 2010 Copyright 2010, IBISWorld Inc., All China Marketing Research Co., Ltd. 24 INDUSTRY VOLATILITY The level of volatility is medium Industry volatility can increase due to currency exchange rates and the le
37、vel of export rebates. Exports are affected by the world economy, demand from major export destinations, and import policies of these foreign countries. Chinas exporters can encounter problems due to political instability, foreign government regulations, and increased competition. Industry revenue v
38、olatility is also influenced by fashion swings, household income levels, and changes in clothing trends. GLOBALIZATION The level of Globalization is high The trend of Globalization is increasing This industry is subject to a medium to high level of globalization. In 2009, foreign capital (including
39、foreign capital and Hong Kong, Macau, and Taiwan capital) accounted for 47.1% of total industry capital, indicating a medium to high level of globalization. From 2002 to 2009 foreign capital as a share in total capital increased year by year. In 2000, foreign capital accounted for about 38.9% of tot
40、al industry capital. By 2009, the figure had reached 47.1%, representing an increase of 8.2 percentage points. This shows continuous interest of foreign investors in the China market. As the industry relies heavily on large volumes of labor, factors such as low labor costs and large markets have att
41、racted many foreign investors to China. China has become the worlds manufacturing base. This is particularly so in East China, where apparel processing is quite prosperous. Many medium- and large-scale domestic enterprises have become the manufacturing and processing centers of enterprises from Japa
42、n and West Europe. Chinas government hopes to use foreign investment to improve the technology levels of the old state-owned enterprises. However, in terms of investment targets, many foreign investors prefer to set up wholly-owned enterprises or joint ventures. Exports accounted for 27.6% of indust
43、ry revenue in 2010, which also contributes to the high globalization level. Enterprise Ownership Shares, 2009 Ownership Type Percentage Revenue Share Percentage Enterprise Number Share State Owned 1.1 0.6 Collectively Owned 1.6 1.1 JECE 0.6 0.6 Shareholding 3.5 0.9 Private 41.3 50.8 Foreign 40.8 36.
44、6 Other 11.2 9.3 Source: National Bureau of Statistics China Note: JECE is short for “joint-equity cooperative enterprise“ INDUSTRY CONDITIONS Apparel Manufacturing in China 31 May 2010 Copyright 2010, IBISWorld Inc., All China Marketing Research Co., Ltd. 25 KEY FACTORS Apparel Manufacturing in Chi
45、na 31 May 2010 Copyright 2010, IBISWorld Inc., All China Marketing Research Co., Ltd. 26 Key Factors KEY SENSITIVITIES The key sensitivities affecting the performance of the Apparel Manufacturing industry include: Downstream Demand - Mens Clothing Stores Increasing demand from downstream retailers,
46、including department store, specialty stores and clothing wholesalers, leads to greater revenue for apparel manufacturers. Downstream Demand - Womens Clothing Stores Demand from clothing retailers can impact sales and therefore output of manufacturing firms. Exchange Rates - Renminbi per $US A stron
47、g Chinese currency makes Chinas exports less competitive in the world market and reduces the export earnings for industry players. According to research of relevant institutions, once the value of Chinas currency is 1% higher, the profit rate in this industry will be down 2% to 6%. Export Market As
48、revenue generated by exports accounts for a relatively large proportion of total industry revenue, performance in export market can be important for the industrys growth. Industry Systems and Technology - Mens and Boys Cut and Sew Apparel Mfg Industry operators can enhance their production efficienc
49、y and improve product quality by using more advanced technology. Industry Systems and Technology - Womens and Girls Cut and Sew Apparel Mfg The use of advanced system and technology has made the industry more capital-intensive in recent years. Population Growth - China According to the United Nations, the economically active population in China will stand at 1.005 billion by 2015. Population growth will contribute to more demand for products supplied by this industry. Real Personal Disposable Income Increases in household disposable inc