BUSINESS OPPORTUNITIES: GARMENT AND TEXTILE SECTORS IN CHINA . In conjuction with Asia-Interprise Euro-China Fashion Business Meetings, CHIC 2004 Beijing, 30th – 31st March 2004 Implemented by Consorzio Italasia Industrial Relations. CHINA OVERVIEW. Area: 9.6 million sq Km
GARMENT AND TEXTILE SECTORS
In conjuction with
Asia-Interprise Euro-China Fashion Business Meetings, CHIC 2004
Beijing, 30th – 31st March 2004
Consorzio Italasia Industrial Relations
Population: about 1.265 billion people, belonging to over 55 ethnic
Demographic density: 128.8 inhabitants per sq km
33% of population lives in towns
56 nationalities are present in China:the Han people make up 91.02 % of the total population
The national language is Putonghua or Mandarin but most of the 55 minority nationalities have their own languages
China officially entered into the WTO on December, 11th 2001
Very quick growth of Chinese population during the 90’s.
- turbulent growth in the early 90’s
- slackening starting from 1996, but continue growing at high rates.
Quick urban and economic development of the strongest towns: Peking, Shanghai, Guangzhou, Canton, Tianjin.
In the 2003 Chinese GDP has overcome Italian one. Its position is now the 6th, behind USA, Japan, United Kingdom and France.
According to Government estimates it should reach the fourth place by the year 2010.
GDP Evolution in Billion US$, 1990-2003
Population’s average income has increased during the last 5 years. The target for foreigner products:
about 10-15% of income spent in items of clothes
Textile Production in January-October, 2003
Chinese Import and Export in the garment and textile sector (unit: 100 millions of USD)
Percentage of importation and exportation per category in the textile and garment sector (Period; January – March 2003)
100,000 STORES ORGANIZED IN CHAINS WITHIN 2005
NEAT PREDOMINANCE OF SMALL RETAIL DISTRIBUTION
ORGANIZED DISTRIBUTION EVOLVING
NO. 1, LIANHUA, HUALIAN
30% of large retail distribution
FOREIGN CAPITAL COMPANIES
CARREFOUR, METRO, WALLMART
JOINT VENTURES & MIXED COMPANIES
PARKSON, PARK’N’SHOP, CITYSHOPPING
- the type of firms that work with e-commerce is that of producers;
- the main firms that sell via Internet are divided as follows:Fashion Stock Sales (25%), T-Shirts (15%), Underwear (9%), Shirts (8%), Jeans (7%).
TOP END MARKET
STATUS SYMBOL OF “RICH & POWERFULL”
Italian direct investments are rilevant: DISTRIBUTION
GFT, Gruppo Inghirami, Zegna are present with some of their production structures and distribution societies.
The sectors with the largest potential for further growth of MADE IN ITALY are (% of Italian products in the Chinese market):
Men’s clothes 70%
Women’s fashion 50%
Women’s knitwear 45%
SMALL DISTRIBUTION ITALIAN PRODUCTS
Specialized dress shops in shopping centres
Mixed dress shops in department stores or shopping centres
Boutiques in 4-5 star hotels and luxury shopping centres (Max Mara, Ferragamo, ecc..)
High level department stores
Distribution organized in shop chains: Benetton, Sisley, Zegna, Reporter
Franchising with local operators
Hyper- and supermarkets for some sportswear brands
2001: ENTRY OF CHINA INTO THE WTO ITALIAN PRODUCTS
OPENING TO FOREIGN INVESTMENT
REDUCTION OF CUSTOMS DUTIES
Fashion products imported to China are subjected to:
- Import Customs Duty (ICD)
- Value Added Tax (VAT)
Textiles product imported to China are tested for:
- Composition Test (for the materials that have been used);
- OZA Free Test;
- Workmanship (Absence of dying stuff);
- Color fastness test.
Textiles must carry the following information on their label ITALIAN PRODUCTS:
ATTENTION: REGISTER YOUR TRADE MARK IN
1/02/2002: PRC Regulations on Administration of Foreign Invested Insurance Companies
1/04/2002: Foreign Investment Guideline Regulations
In 2002 China surpassed the USA as the world’s largest foreign investment receiver, with an inflow of 52.7 US$.
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