Nina Jobst
Research expert covering South Korea
Apparel industry in China - statistics & facts
China has been the world’s largest apparel manufacturer and exporter for more than a decade. Benefiting from the World Trade Organization’s agreement to lift the textile quota, its clothing exports boomed after the turn of the millennium. However, the expansion of the nation’s clothing sector has slowed down recently, aiming to build a more sustainable and technology-intensive industry.
China’s industrial transition
Since 2015, China’s apparel manufacturing industry has undergone a profound transition. The rising labor costs have shifted the sector towards a less labor-intensive and highly automated direction. Geographically, many apparel enterprises have relocated to lower-labor cost regions, such as Western and Central China. Technologically, apparel enterprises upped their research and development spending. In 2023, over four thousand R&D projects were carried out in the textile and clothing sector. Nevertheless, an increasing number of apparel enterprises exited the market during the industrial upgrade and structural transformation.External challenges
Apart from manufacturing, China’s apparel export industry also faced significant challenges resulting from international trade disputes and increasing production costs. The country’s clothing export value and global share continuously dropped between 2014 and 2020, while several rising apparel manufacturing countries in Southeast Asia posed a challenge to China’s leading position. Though an upsurge occurred amid the Covid-19 pandemic due to the country’s effective pandemic control, its garment exports fell again in 2023. Cross-border e-commerce platforms such as Temu and Shein have broadened the sales of “made-in-China” apparel, yet this e-export market is subject to various uncertainties such as regulatory risks.The rise of the domestic market
Given the competitive international market, Chinese garment enterprises sought new opportunities from the domestic market. Owing to the growing disposable income, the average expenditure on clothes and shoes surged over the past two decades. Adding to the ever-increasing demand for fashion, the prevalence of online shopping also boosted the apparel retailing sector. In 2024, online apparel sales amounted to more than two trillion yuan. To improve consumers’ online shopping experience, some Chinese apparel retailers have invested in innovative technologies, such as a virtual dressing room. Additionally, the growing popularity of China-chic and the rise of athleisure fashion have fueled sales of new Chinese-style clothing and outdoor apparel, creating further growth opportunities for the country’s apparel market.
