How to Import Clothing From China. China’s Once Mighty Garment Industry Is Starting To Unravel. SHENZHEN - One by one, the garment factories of Shenzhen are shutting down.
Industry analysts say that by Christmas, 60% will be gone. A business that was once worth 150 billion RMB (23 billion dollars) per year has been battered on all sides: rising costs of labor and raw materials, an appreciating currency, inflation, and a slump in demand. I went down to Shenzhen’s Luohu District to see what could be seen. Where thousands of small factories had been in production, most are now boarded up.
Of the few hundred that do remain open, many operate just a handful of days per month. I talked to one factory boss, Mr. Wang pointed to the hundreds of automatic sewing machines sitting idle, noting that his garment production capacity used to be hundreds of thousands of pieces annually. Wang told me that if the situation does not improve, his factory will eventually collapse altogether. Another factory boss, Liu Quande, confirmed the predicament of the business. Photo - Marc Oh. China retail industry. And as incomes have grown, so has the capacity to spend. By 2015, per capita consumption in China is set to increase to 17,000 renminbi ($2502) from 13,400 renminbi ($1975) in 2008.
Total urban consumption in 2015 is likely to exceed 13.3 trillion renminbi ($1.96 trillion), making the country the third biggest consumer market after the U.S. and Japan according to the 2009 Annual Chinese Consumer Study by McKinsey. These sweeping changes in China’s socio-economic framework have also led to the emergence of a buoyant retail sector, which thrives on the progressive Chinese consumer. With this, domestic retailers have come to benefit from the mounting retail appetite, and global retail chains have made a beeline to grab a share in the booming Chinese retail market. As demand in the developed countries reaches maturity, the lure of the flourishing retail market in China has attracted global retailers since the floodgates of the sector were thrown open to foreign players.
Chinese market entry research - Assessing opportunities in China. The challenge of China market entry has become an increasingly important one of Western companies of all shapes and sizes.
Despite a difficult economic climate in Europe and the United States, China’s economy has continued to grow by double-digit rates over the last couple of years. With the country poised to overtake the US as the second largest global economy by 2020 and destined to remain an engine of global growth for the next decade, understanding how to enter large and complex market has become critical to most companies in the B2B sphere.
Within China, rapidly changing demographics, rising incomes, increased consumer spending and an increasingly open business environment have all helped to make the Chinese market increasingly attractive to Western businesses across a variety of industries. Similarly, declining sales in their home markets has forced many US and European companies to relocate China firmly to the centre of their long-term global growth strategies. Choosing A Location. China's New Foreign Investment Catalog. The Scope Of FDI. By: Steve Dickinson At the end of December, the NDRC issued its long awaited 2011 revision to the Catalog for Guidance for Foreign Investment 外商投资产业指导目录（2011年修订).
It is a central policy of the Chinese government that foreign investment must be made in a manner that is consistent with Chinese policy and in a way that will promote China’s development. China therefore follows a policy of guided investment, and the Catalog is the guide. The first Catalog was issued in 1995. This is the fifth revision, replacing the 2007 Catalog. The encouraged category shows where the Chinese government wants foreign investment to go. In what follows, I will summarize and comment on the official NDRC explanation of the background and policy behind the new Catalog, which can be found here. Foreign Direct Investment (FDI) remains an important element of the Chinese economy. Starting with the 2007 Catalog, China has moved to substantially change the structure of foreign investment in China. 1. 2. 3.
Technology. Recovery.