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From: Emerging Textiles
10 September 2009 -- China gained new significant shares on the US apparel market over the first half. The abolition of quotas resulted in lower unit prices, allowing a surge in shipments from China. Other origins suffered from Chinese competition, being unable to significantly lower their prices, as reflected by our series of statistical tables.
Thanks to the removal of quotas, China gained significant shares on the US apparel import market in the first half this year.
Although negatively affected by the economic recession and consecutive fall in retail sales, shipments from China more resisted than from other origins.
Imports rose 3.9% from China over the period while down 18.6% from the rest of the world (RoW).
In cotton apparel categories, imports from China even surged 12.8% in $ terms while sliding 19% from RoW.
The jump in China's market shares is more evident in formerly restricted categories where Chinese prices were slashed in line with the abolition of quota costs.
Lower Unit Prices
Average unit price of shipments from China lost 22% in 338 (men's and boys' cotton knit shirts) for example.
It fell 18% in 348 (women's and girls' cotton trousers).
Shipments consecutively surged from their very low levels.
By contrast, prices only slightly declined from other origins where shipments were not restricted by US authorities in the past years.
However, Chinese unit values are still above unit prices from rest of the world in most formerly restricted categories.
This could rapidly change if unit prices would continue falling.
Selling Cheaper Products
As a result of the very low US quotas, Chinese exporters until now preferred selling expensive products in these categories.
They may now easily accept exporting cheaper products.
The decrease in unit prices therefore reflects an expansion of the product portfolio, in addition to the decline in prices.
The rising production costs in China may however result in a new radical change in the future.
As US buyers are looking for cheaper products, the Chinese price levels may finally limit apparel exports from China.
- Send to EmergingTextiles.com
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