An interesting look into how the supply manufacturing chain is shifting as China becomes a service based economy.

1. GLOBAL SHIFT IN
THE FASHION
M A N U F A C T U R I N G
B U S I N E S S

2. With developing nations altering the
ways in which their current economies
operate on the global scale, questions
have arisen as to whether or not China
remains the global hotspot for fashion
manufacturers, amidst what some call an
overall economic slowdown. A main topic
of discussion at Business of Fashion’s
most recent event in Hong Kong titled
“Voices,” this changing global
phenomenon is indeed an issue that has
been developing in many factories
across China.

3. During the last twenty-five years or so,
China’s global manufacturing output
has increased from around three
percent to a staggering twenty-five
percent in value. In accordance with
business supply chains within the Asian
continent, their share actually increased
to double the global amount, reach a
little over fifty percent.

4. In relation to China’s global
manufacturing output in the fashion
industry, it is evident this developing
nation has become essential in driving
business growth for brands,
companies, retailers, etc. with their
factories exporting sixty-percent of
the world’s shoes, and forty-three
percent of the world’s clothing.

6. On the other hand, competition does indeed
threaten some manufacturing subfields within
the fashion industry, such as textile, footwear
and colossal apparel.
An overall increase in production expenses, in
addition to cheaper manufacturing spots in
Africa and Asia have indeed burdened this
powerhouse. Under new governmental
economic policy in China to change the
country’s future to a service based economy, it
is no surprise this internal ideological difference
also poses a threat to various different fashion
manufacturers.

8. As a result of this global supply
chain economy which emerged
within the last three decades, both
the Chinese government and the
textile producers have also become
more involved in partnership or
sometimes production firm
acquisition in countries such as
Vietnam and Cambodia.

9. In terms of Chinese manufacturers
accessing and monitoring global
capital, some firms have also even
moved some mills to the
consumer’s end. To illustrate, one
recent example was in the
American state of South Carolina,
where Chinese manufactures used
American labor for production due
to the incredibly low cost of cotton.

10. Policy researcher Cyrus Yu has
confirmed data which underlines global
Chinese business ventures across
various African countries that have
recently become grounds for shoe
factories in nations such as Ethiopia,
Uganda and Tanzania. With regard to
this ongoing process to further expand
offshore production, even across the
African continent Chinese factories fall
into stark competition with countries
such as India and Turkey.

11. Although there is increased
competition on both the Asian and
African fronts, experts strongly
believe that these factors should not
cause any drastic changes within the
manufacturing sector of the fashion
industry in the near future.

12. Although there is increased
competition on both the Asian and
African fronts, experts strongly
believe that these factors should not
cause any drastic changes within the
manufacturing sector of the fashion
industry in the near future.

13. According to some researchers,
competition between Eastern and
Western countries is now not only
becoming centered around
productivity or quantity of goods
produced in a given timeframe, but it
is also currently changing focus to
quality, marking a new shift within
the fashion industry.

14. bartholomewharte.co.uk