China Sourcing Report: Baby & Children's Wear19 Oct 2011 • by Natalie Aster
China suppliers of baby and children’s wear are stepping up efforts to enhance releases in anticipation of stronger exports during the next 12 months. Comfort, functionality and visual appeal are the key R&D considerations. Makers aim to offer designs boasting improved construction and adopting better materials.
High manufacturing and overhead expenses, however, are posing a threat to companies’ growth. The stronger local currency is also a concern. Businesses are losing their pricing advantage due to these factors, especially with emerging low-cost hubs such as Vietnam and Cambodia giving buyers alternative sourcing locations.
In response to challenges, many suppliers are modifying production strategies and terms of sale.
North America and the EU will still be the major shipping destinations for most exporters. A few companies intend to boost deliveries to non-EU countries.
The report “China Sourcing Report: Baby & Children's Wear” by Global Sources covers the major products of China’s baby and children’s wear industry, namely tops, shorts, pants, skirts, dresses, rompers, jumpers, outerwear, and formal and casual suits and sets. Swimwear, undergarments, nightclothes, accessories and footwear are included as well.
- While the cost of cotton, polyester and other materials typically adopted in baby and children’s wear is stabilizing, it remains considerably higher than rates from the previous year. Regardless, makers will continue employing common inputs as these are preferred by customers.
- Labor spending is still escalating. The minimum wage levels in several provincial hubs were raised through revisions in local policies. Further, many factories are now lacking in skilled workers and need to conduct constant training.
- Various areas are experiencing power shortage, which gives rise to extended manufacturing and delivery days.
- To retain and expand client base, exporters are offering reduced MOQs particularly for trial purchases. They agree to bring down quotes for highvolume procurements. In terms of products, companies are employing quality materials to ensure safety, and for enhanced durability, fit and usability. Clothes and accessories come in lively colors and patterns that project a youthful vibe, although selections that mimic the elegance of men’s and women’s apparel are being turned out as well.
- More suppliers will be shifting to upscale production for wider profit margins. ODM and OBM lines are also going to be given attention.
- Prices rose 2 to 10 percent during the past six months. Further increases are to be expected within the coming half-year. Businesses plan to limit markups to 10 percent, but several may enforce higher adjustments to cover additional spending.
China Sourcing Report: Baby & Children's Wear
Published: August 2011
Price: US$ 350.00
Report Sample Abstract
Supplier profiles: 3S Textile & Apparel Shijiazhuang Co. Ltd
3S exports approximately 30,000 baby and children’s garments and accessories each month. The line consists of shoes, outerwear, suits and sets, rompers, shorts and pants.
Products are manufactured at the factory in Hengshui, Hebei province. The plant currently utilizes 75 percent of capacity. A 150-strong workforce handles operations.
All output goes abroad, with the EU absorbing 70 percent. The rest is delivered to North America and the Asia-Pacific region.
Last year’s sales in the line amounted to $5 million, contributing 42 percent to the company’s total revenue. This is projected to increase by more than 20 percent in the next 12 months.
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