Chinese apparel industry likely to grow at 23% CAGR

The Chinese apparel sector is expected to post a 23 percent compound annual growth rate (CAGR) during 2012-15, according to a report released by RNCOS, a leading industry research and consultancy firm.

In its report titled“China Apparel Industry Analysis”, RNCOS states that factors like franchising operations, concept of multi-brands and online apparel retailing have led to an increase in demand for branded Chinese apparels in China.

The report says womenswear segment, which has been posting a double-digit annual growth, continues to lead the Chinese apparel market, and the trend is likely to persist in future too.

It adds that the sportswear market is also expected to grow at a speedy pace in near future and projects the country’s overall apparel industry to grow at an average rate of 23 percent during 2012-15.

On emerging trends, the report states that apparel retailers are making their way into smaller towns and are spending greatly on marketing activities.

Meanwhile, owing to the rising awareness of customers about protecting the environment, increasing number of apparel makers in China are adapting environment-friendly production techniques, so as to cater to rising domestic as well as global demand for eco-friendly items.

Most of the companies that go“green”usually change to use of sustainable natural materials. While cotton, wool and silks have been well recognized as eco-friendly fabric options, others like rayon, charcoal, tencel, bamboo and soyabean protein fibres are also becoming increasingly popular, the report adds.

Source: Fibre2fashion