China's Textile and Apparel Industry and the Global Market: Five Competitive Forces

Article excerpt

China's textile and apparel industry, the world's largest exporter in 2009, is a formidable competitor. Neverless, as production costs rise in China, some low-cost developing countries are making inroads in this export market. By analyzing this sector using Porter's five factors framework- threat of entrants and the determinats of rivalry, buyer power, supplier power, and substitution threats--the article assesses its outlook. The industry's "partnership" with the Chinese Government is key to maintaining this industry sector' s competitive position.

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The anticipated boost from the progressive elimination of U.S. and European Union (E.U.) trade quotas over the past years has not materialized for the Chinese textile and apparel industry. Although, China's textile and apparel industry gained market share in the U.S. and E.U., it did not make significant gains in the rest of the world in 2009. China's share of the global market jumped from 38.8% in 2001 to 47.1% in 2005, but has not risen since that period. In fact, in markets other than the U.S. and E.U., its share actually declined from 71.3% in 2006 to 66.8% in 2008. China's share of the U.S. apparel import market rose from 19.9% in 2003 up to an expected 35.9% share in 2009, and its share of the E.U. import market rose from 21.8% in 2001 to 42.8% in 2008. Competition for global market share from emerging countries is increasing, as a reduction in prices in 2009 benefited low-cost countries like Bangladesh and Vietnam at the expense of the Chinese textile and apparel industry (China's textile comparative advantage, 2009; Report of Chinese apparel, 2009).

Clearly, it is important to understand the environment of the Chinese textile and apparel industry to establish strategy that will achieve further success in the global economy.

This research analyzes the Chinese textile and apparel industry through Porter's industrial competitive framework because it not only offers insights into the environment, but also influences the industry's strategy and competitive position in the global economy. After discussing the theoretical framework, the framework is applied to the Chinese textile and apparel industry in terms of the global economy. Finally, the competitive positions of the world's major textile and apparel exporting countries are compared.

Theoretical Framework

The competitive advantage of a company or country reflects offensive or defensive actions to create a sustainable position in an industry or the global economy. According to Porter (1990), this requires the ability to maintain above-average performance within an industry. Strategy is the creation of a unique and valuable position, involving various activities (Porter, 1998). The success of a competitive strategy is a function of the attractiveness of the industries in which the firm competes and of the firm's relative position in those industries (Porter, 1980). According to Porter, competition in an industry depends on five forces, which ultimately determine profit potential:

1. Threat of potential entrants

2. Rivalry determinants (contending forces)

3. Determinants of buyer power

4. Determinants of supplier power

5. Determinants of substitution threats

There are two basic ways to create competitive advantage: cost leadership and differentiation. Either can be utilized in a broad or narrow approach, resulting in a focused competitive strategy.

Cost leadership is when a firm or country decides to become the low-cost producer in its industry or market. The cost leader usually achieves this competitive advantage by economies of scale. Differentiation is the decision by the firm or country to be unique in some factors valued by its customers. Differentiation factors include product, distribution, sales, marketing, service, or image and cost position. In a focused competitive strategy the firm or country sets out to be the best in market segment or group of segments. Two variables in this strategy are cost and differentiation focus.

The strategy of the Chinese government has been to create a textile and apparel sector that no other nation can compete in. This research will analyze the environment of the Chinese textile and apparel industry through Porter's five forces framework for industry analysis and business strategy development.

Strategy and Country Rivalry

The context for strategy and rivalry relates to the Chinese government's policy regarding the textile and apparel industry. According to Qiu (2005), this industry has been a driving force in the nation's exports since the open door policy and economic reforms began in 1979. The textile and apparel industry is the most market-oriented in China, experiences the most competition, and is closest to the market and end-users. As a pillar of the national economy, it is labor-intensive with comparative advantages in the world market (The eleventh five-year plan, 2006).

According to Sebastian (2009), two features of China's trade patterns suggest that elements beyond factor abundance explain its export performance. Its high penetration in the global markets of labor-intensive products has been accompanied by a large share in exports of highly productive foreign-invested enterprises (FIEs), and the high penetration of FIEs in labor-intensive sectors. China's natural comparative advantage in labor-intensive products is enhanced by capital accumulation, productivity growth, rural-urban migration, incentives for foreign investment, and distortions in financial markets.

Since China adopted a reform policy and opened up to the outside world, its textile industry has been growing rapidly. It has transitioned from a primary industry into a mature one and has established a vertically integrated industrial system comprised of cotton, wool, silk, chemical fiber, apparel, and textile machinery sectors with constantly improved competitiveness and a more and more important position in the global textile supply chain (The eleventh five-year plan, 2006; Report of Chinese apparel, 2009).

The Eleventh Five-Year Plan for National Economy and Social Development, the State Development and Reform Commission (SDRC), together with the China National Textile and Apparel Council (CNTAC), mapped out the five-year plan for the textile and apparel industry. The initiatives focused on scientific and technological progress, indigenous innovation for a new growth model, an upgraded and optimized industrial structure, and complete, coordinated, and sustained development (The eleventh five-year plan, 2006).

China joined the World Trade Organization (WTO) in late 2001. It is the largest clothing producer in the world and has the largest capacity for products made of cotton, man-made fibers, and silk. The textile and clothing industry is the largest manufacturing industry in China. According, to Lu (2009), the Chinese government is not likely to compromise on any major trade restrictions now or in the future as it did in 2005 with the "transitional safe-guard," that restricted Chinese product imports in the United States. In addition, the Chinese Ministry of Commerce declared that it would not place licensing requirements on textile and apparel exports anymore beginning in 2009, despite E.U. pressure to self-manage exports. The elimination of U.S. limits on imports from China is a threat for competitors. It should result in lower prices for Chinese imports, as was experienced with European imports in 2008. After the E.U.'s quotas were removed in January, 2008, Chinese prices fell in line with the elimination of the costs associated with quotas.

In an attempt to augment economic recovery, the Chinese government has raised the export tax rebate for textiles and apparels from 11% at the beginning of 2008 to 14% in December 2009, the highest in many years. These measures were taken as a result of rising production costs and slowing overseas demand that resulted in many apparel manufacturers in China shutting down in 2008, causing hundreds of thousands of workers to lose their jobs (Lu, 2009; China facing, 2008). According to the "Report of Chinese apparel," (2009), industry adjustments, government action, and product innovation kept the Chinese textile and apparel industry solvent in the first half of 2009. The Chinese government increased the ratio of tax refunds on exported textiles and apparel by three times and introduced a series of structural adjustments and revitalization plans for the textile industries.

"China to take advantage," (2009), recommended alternative strategies for the recovery of the industry. One strategy was to upgrade machinery, which could allow the industry to offer more innovative products, improve quality, and even position itself as a leader in fashion and brand apparel. As the global market for exports of textiles and apparels weakened, a booming domestic market could be exploited. In fact, domestic clothing sales at retail stores in China are increasing. An additional strategy was to focus on markets outside the Big Three (E.U., U.S., Japan). In neighboring markets like Russia, Kazakhstan, Kyrgyzstan, Saudi Arabia, and UAE sales have been successful. Finally, to address the problem of labor, some Chinese companies have imported cheaper labor (China facing, 2009).

The competition for China in the global textile and apparel markets comes from a variety of countries that compete for business globally and in each of three primary markets. These primary markets--the United States, European Union, and Japan--account for 60% of import volumes of textiles and apparel in the world (Report of Chinese Apparel, 2009).

United States Apparel and Textile Market

According to "U.S. Apparel imports" (2009), apparel imports continued to fall in October 2009. However, imports from China and Vietnam gained market share thanks to a significant decline in their prices. Imports overall declined nearly 15% in value from the same month last year, losing 13% over the January-October period. Chinese shipments fell only 1.9% in October, rising 1.4% over the first 10 months of the year. China's share of the total U.S. apparel and textile imports reached more than 40% in volume in January-October, rising from 31.9% to 37.2% in value terms.

The elimination of U.S. limits is obviously boosting Chinese sales, partly due to falling prices. The average unit price of U.S. apparel imports from China was down 10% in October. Other countries were unable to match such a cut in their average unit values, except Vietnam (10.2% in October). Vietnamese shipments were stable in October from a year earlier, only declining 3.4% over the 10-month period. Imports from Indonesia lost only 7.1%, but shipments from Bangladesh fell heavily (-19%), and from India (-16%) (U.S. Apparel Imports, 2009). Figure 1 and Table 1 present the imports in percentages of market share and in millions of dollars from the various exporting countries and trading pacts into the United States.

European Union Apparel and Textile Market

European Union clothing imports increased by 42% from 2005-2008 in U.S. $ terms with shipments from China gaining 75%. All major supplying countries recorded a rise in US$ sales to the E.U. over the period. In terms of import volume, the Euro-Mediterranean rim lost ground against Asia during what may soon appear as the golden age of the E.U. clothing import market. E.U. clothing imports began seriously slowing down in 2008, with shipments from outside the 27-country zone rising only 9% (in U.S. $ terms) from a jump of 14% in 2007. Tables 2 and 3 present E.U. import data by country of origin (E.U. clothing imports in 2005-2008, 2009).

E.U. clothing imports fell over the second quarter of the 2009, reflecting the European economic slowdown and a weaker euro against the U.S. $. The level in exchange rates made the difference for India, which took additional market share due in part to lower prices. China had to raise its unit values because of higher costs. Chinese imports declined during the second quarter of 2009, with a 5.45% loss in volume terms. All suppliers experienced decreases in volume due to the weaker E.U. market, with India suffering less (-0.61%) than Bangladesh (-4.23%) and Pakistan (-6.22%). However, Vietnamese unit values were strongly up, mainly due to a change in the selection of products by E.U. buyers. Turkish prices were dramatically lowered (in U.S. $ terms), falling 1.91% in euro terms (E.U. clothing imports in 2005-2008, 2009).

Japanese Apparel and Textile Market

Japan's clothing imports declined over the third quarter of 2009 in yen terms but rose in U.S. $ terms thanks to a jump in the yen. Japanese buyers favored imports from the cheapest origins, predominantly Vietnam, while China remained the largest supplier, by far. Japanese apparel imports declined in yen terms over the first half of 2009, but rose in U.S. $ terms, with larger imports from low-cost countries. Japanese apparel imports were down 5.55% over the January-June 2009 period, and were far from recovering in September. They showed increases in same period (January to September) levels rising from 2007 through 2009 in terms of U.S. $ (Japan clothing imports, 2009). Table 4 presents Japan's imports in clothing and accessories by country of origin.

China maintained its overwhelming share of the Japanese market in 2009 at 82%, thanks to a decline of 8% in the first three quarters, in yuan terms, while overall clothing imports were down 8.7%. Vietnam showed impressive results with an 8.6% increase over the same period, in yen terms, but slowed over the third quarter with a rise of only 3.35% (Japan clothing imports, 2009).

Threat of Potential Entrants

New country entrants into the world textile and apparel industry will have to pry market share from a mature industry. The challenges of entry will be supplying low-cost labor to a labor-intense market, utilizing new technology, achieving economies of scale, establishing brand identity, and raising capital. These challenges will affect profitability. In addition, new entrants will need a strategic plan to support their textile and apparel industry.

Textile and apparel manufacturing is a labor-intensive industry. Labor-abundant China has specialized in exporting labor-intensive goods and has exploited this comparative advantage for many years (Harrigan and Deng, 2007). Recently, China's export advantages has been reduced due to rising labor costs and higher raw material prices, leaving it vulnerable to lower labor-cost countries. In addition, the international financial crisis further weakened the export competitiveness of the Chinese textile and apparel industry (Report of Chinese apparel, 2009; China facing, 2009).

Emerging low-cost garment manufacturing countries, e.g., Bangladesh, Vietnam, and Sri Lanka, will challenge China for world market share. The cost of entry is relatively low for countries with large supplies of cheap labor. U.S. retailers and brands focus on purchasing from certain countries for specific products, selecting the best sources for each type of product based on price, quality, etc. China must examine all purchasing trends in the U.S. market to determine its potential threats (U.S. Apparel imports in major categories, 2009).

In an increasingly global economy, nations succeed in specific industries because their environment is the most forward looking, dynamic, and challenging. When a nation pressures or encourages companies to innovate and invest, these companies tend to gain a competitive advantage that may increase over time. In addition, companies gain competitive advantage through the rapid accumulation of specialized assets and skills, possibly reflecting greater effort and commitment. Companies also gain competitive advantage when their business environment affords better information about product and process needs (Porter, 1990).

The contributing factors to competitive success are differences in national values, culture, economic structures, institutions, and historical considerations. Not every nation is competitive in every industry, but those that nurture highly localized processes create competitive advantage the more successful they become (Porter, 1990). Countries that reduce taxes, manage export subsidies, reduce lending rates, create a trading block with other countries, and focus on the success of their apparel and textile industries are potential threats. The Vietnam Textile and Apparel Association (VITAS), Vietnam-Japan Economic Partnership Agreement (VJEPA), and Trans-Pacific Strategic Partnership Agreement (TPP) may potentially be threats or alliances for China. Powerful existing textile and apparel countries attempting to gain market share are also threats, such as India, Pakistan, and Turkey, to name a few.

In summary, the barriers to entry in the world textile and clothing market are not high. However, potential competitors should consider that the industry is mature and profitability is a major concern. In addition, the Chinese textile and apparel industry is supported by government policy and a centralized economy. The industry is a pillar and the government is very protective of its market share. China also enjoys economies of scale, a country brand identity, easy access to distribution, access to inputs from cotton to labor, and an enormous capital base that supports the industry with investments in new technology.

Rivalry Among Existing Competitors

According to "Trends in world," (2009), the global textile and clothing market grew by 10.6% to US$583 billion in 2007. This represented the fourth double-digit increase in five years and followed growth of 13.5% in 2003, 12.0% in 2004, 5.2% in 2005, and 10.0% in 2006. In 2007, the world's largest textile exporter was the E.U. 27 (E.U. plus Bulgaria (BG) and Romania (RO) that were added since January 2007), followed by China, Hong Kong, the U.S., South Korea, Taiwan, India, Turkey, Pakistan, and Japan. The E.U. 27 was also the largest textile importer, followed by the U.S. China ranked third, followed by Hong Kong, Japan, Turkey, Mexico, Vietnam, Canada, and Russia. In clothing only, China was the world's leading exporter, followed by the E.U. 27, Hong Kong, Turkey, Bangladesh, India, Vietnam, Indonesia, Mexico, and the U.S. In clothing imports, 46% of the world total went to E.U. 27 countries in 2007, while the U.S. took 24% and Japan 7%.

Although product or service differentiation can be difficult in this mature industry, price competition and product introduction will be essential elements of competitor strategy. Healthy competition will ultimately depend on the continued growth of the global apparel and textile market and the stability of global economy. In a global market that now offers freer trade, textile and apparel production is expected to shift to countries with a comparative advantage. Developing countries, mostly in Asia, are expected to capture a higher proportion of production. This should lead to a production decline in countries that back a comparative advantage (New era opens, 2005).

A new world for Chinese exports opened on January 1, 2009, with the expiration of the certain trade agreements between China and the U.S. and the E.U. These agreements had governed textile and clothing quotas. Under governmental guidance, a new model for exports that combined government administration with industrial self-discipline was formed. This model gave companies safeguarded trade orders and helped secure the interests of textile exporters. Previously, Chinese apparel and textile exporters featured poor operations and management, high-price buybacks, and cut-throat competition. It is now a sound industry with reformed enterprise ownership, regulated operation, operating in a market economy. The product offerings have been upgraded from low-end to medium- and high-level goods that are attractive in price and quality and have become bestsellers in the global market (20 years of textile success, 2008).

Ladha (2009) recommended that competitors develop and sustain a comparative advantage to earn market share. They must focus on such strategies as innovation, customer satisfaction and working closely with customers to understand their needs. Reducing inventories as a way to lower costs is also important. Cost competitiveness can be enhanced by lower duties and taxes, reducing labor, power, financing, and infrastructure costs, and trade agreements with the global markets. Information technology must be enhanced in all areas of the industry. Additionally, certifications, such as ISO 9000/14000, may help competitors overcome market barriers. Finally, a country branding campaign may increase customer awareness through differentiation in quality, prices, and practices.

Bargaining Power of Suppliers and Buyers

The bargaining power of China as a supplier is its ability to control a large share of the global market. However, its ability to influence prices may be limited as many other countries are vying for market share. Its goods are not necessarily unique or differentiated, and other suppliers can provide substitutes. Costs associated with buyers that may switch from one supplier to another would not necessarily be affected.

The size and growth of the Chinese textile market in the global economy has increased its purchasing and supplier power. Government policies have also directly influenced these conditions. As a result of the global economic slump, China has realized that this industry still plays an important role in the economy and social stability of the nation. As a result, the Chinese government has raised export rebates and is transforming this industry from labor-intensive to one that concentrates on capital and technology-intensive sub-sectors (Lu, 2009).

U.S. and European markets continue to dominate the global textile trade, accounting for 64% of clothing and 39% of the global market in 2009. As quotas are dismantled, global textile trade is expected to grow. Due to an oversupply in unorganized markets such as denim, suppliers have little bargaining power. However, premium products and branded players continue to earn higher profit margins. India and China are currently competing in the same categories (premium segment) of apparels and home textiles. Given India's established presence in the high-end segment, it could gain significant market share in U.S. apparel imports. However, the ongoing economic slowdown in the U.S. could result in lower orders from U.S. retailers that, in turn, may result in lower capacity utilization and reduce profitability for textile companies in India. Customers' bargaining power is low for premium and branded product segments when supplier options are limited. In terms of lower-end products, global customers have more bargaining power due to many alternative low-cost sources (Textiles, 2009).

As the world's largest exporter of textiles and apparel, China can exercise some bargaining power. However, buyers from the U.S. and the E.U., who dominate the purchasing worldwide, have choices and can switch to other suppliers.

According to the Hollein (2010), China has set the value of its currency artificially low to make sure that its exports are priced more competitively on the global market. This contributes to the enormous trade deficit of the U.S. versus China. Several calls have been made for the Congress to pressure Beijing to rework its currency policy.

However, China is also in a unique position as the world's largest producer of cotton and the twenty-first-largest exporter of cotton (Chinese agriculture statistics, 2009). These comparative advantages have allowed the Chinese textile and apparel industry to vertically integrate from the cotton fields to the store and may yield more market advantages in terms of supplier and buyer bargaining power in the future.

Determinants of Substitution Threats

Textile and apparel products are necessities and there are no close substitutes for them. However, the global market has many opportunities to purchase substitute products made in different exporting countries. Products from China are similar to those made in India, as products in the U.S. are similar to those in the E.U. Differentiation is low in terms of the products, but lower costs, quality, and service differentiations may affect substitution selections.

According to Weisz and Singh (2009), the U.S. and the E.U. apparel markets are concerned about the knockoffs of fashion apparel designs that China makes and exports at significantly reduced prices. Consumers substitute them for the genuine articles, especially in the fashion segment. Fashion design, which includes fabric pattern and accessories, is estimated at $350 billion annually and has developed a solid body of intellectual property law that protects it in the U.S. and E.U. The federal Copyright Act, Trademark Act, and Patent Act are significant in the U.S., but may not affect those making knockoffs in China until they arrive on foreign soil. Enforcement is difficult without adequate resources. Moreover, consumers who buy counterfeit designer goods keep this Chinese export flourishing and affect competitor strategies regarding substitution threats.

According to the "Clothing, garment, apparel industry overview," 2009, China will represent around 45% of global trade by 2010 in textiles and apparel. Despite this growth, rising costs and perceived risks in China are creating more opportunities for other low-cost countries. India is expected to represent around 20% of global trade by 2010. India is expanding its role with new capacity and control of textile trades through vertical integration. Vertically integrated companies are organized in a supply-chain hierarchy and share a common owner. Each member of the hierarchy produces a different product or service that are combined. They work together to achieve a common goal. The advantage of vertical integration is that it avoids the problem of waiting on components to complete products for shipping. The emerging markets of Pakistan, Vietnam, Cambodia, and Bangladesh are counting on their low manufacturing costs to build up their capacity in textile and apparel.

Tentative Conclusions

China's textile and apparel industry has grown rapidly over the last two decades, due primarily to its comparative advantage in low-cost labor resources. It has also enjoyed economies of scale in producing basic commodity products, but this is changing. Lower-cost labor in other countries has eroded this advantage, along with others. Additional handicaps include the strong appreciation of the renminbi against the Euro, and rising labor costs. In addition, rising costs of energy, heavy costs of environmental laws and regulations, and other rising costs are making Chinese textile and apparel industry exports less competitive. Other weaknesses are the low value-added status of textiles and apparel in international trade and a lack of trade agreements with the major textile and clothing markets (China facing severe apparel crisis, 2009).

However, China has considerable strength in terms of its global market share and enjoys an abundance of raw materials, both cotton and manmade, compared with its competition. In terms of raw material, labor costs, energy, and environmental protection costs, China is still among the world's lowest-cost producers. China also has large-scale production facilities that create economies of scale and a strong domestic presence across its entire value chain. China's exports to the larger importing countries (U.S., E.U., and Japan) in terms of percentages are lower than their competition. China has opportunities in the global market as U.S. and E.U. quotas were discontinued in 2008 and markets focus on low-priced products (Lu, 2009).

An improved global economy will also provide opportunities for the Chinese textile and apparel industry. According to "Markets on the edge" (2010), the outlook for GDP growth for the U.S. and Europe in 2011 is 1.8% and 7.5%, respectively. However, this article predicts that the Chinese economy will overheat, and notes that Western consumer demand will be negatively affected by reduced government spending and higher taxes. Emerging markets will be considered the main contributor to global growth for 2010-201 land the global apparel industry.

The growth of the Chinese textile and apparel industry has and will benefit from the Chinese government's support of central planning. Support for this pillar industry is under way through export tax rebates and other efforts. With the guidance of the government and a new management model for exports that includes a partnership with government and industry, a model for the future is emerging. This strategy of partnering with government to support the Chinese textile and apparel industry, both internally and externally will develop a sustainable competitive advantage for this industry in the world market (20 years of textile success, 2008).

According to the "The eleventh five-year plan," (2006), the China National Textile and Apparel Council (CNTAC) has indentified key efforts needed for success by this industry: scientific and technological progress focusing on indigenous innovation, a shift to a new growth model, upgrading industrial structure, and striving for complete, coordinated and sustained development. The Chinese textile and apparel industry will remain the global leader by continuously analyzing and reacting to crucial issues both domestically and internationally. Forecasts for the industry are made with respect to production capacity and taking into account structural targets along with specific goals that have to be fulfilled for energy-saving and environmental protection. CNTAC's goal for the industry is to build a powerful textile and apparel sector by taking a new route to industrialization that is aware of market situations and reacts accordingly to boost industry in a well-balanced and sustainable manner. According to Long, Zadek, and Wickerham (2009), the key for China to become a force in shaping the next generation of sustainability standards in global markets is to support its industry by enabling public policies, as a competitive strategy consistent with China's broader interests.

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Dr. McCann, Dean of the School of Business at Lincoln Memorial University, also teaches management and strategy. His research interests are leadership, strategy, and ethics, and he has published in several international journals.

Table 1. United States Textile and Apparel Imports by Country of
Origin (millions of U.S. dollars)

                                             January-October
                          2007      2008      2008     2009

All Textile and          107,323   103,987   89,131   75,739
  Apparel U.S.
Canada                     2,881     2,286    2,003    1,512
Mexico                     6,594     5,830    4,988    4,200
India                      5,580     5,559    4,770    4,223
Pakistan                   3,230     3,139    2,640    2,343
China                     37,510    37,938   32,458   30,530
Korea, South               1,688       144    1,253      847
Hong Kong                  2,159     1,649    1,506      304
Taiwan                     1,617     1,404    1,225      827
Japan                        743       718      614      417
EU15 (European Union)      5,773     5,262    4,507    2,952
ASEAN (Countries)         16,361    16,699   14,298   12,448
CBI (Caribbean)            8,662     9,317    7,080    5,743
LDDC exc. Haiti            6,452     6,704    5,740    5,167
  (Least Developed
   Countries)

                         Percent
                         change
                           YTD     Percent
                         10/08-    of U.S.
                           YTD     Market
                          10/09     10/09

All Textile and           100.00
  Apparel U.S.
Canada                    -24.50     2.00%
Mexico                    -15.80     5.55%
India                     -11.47     5.58%
Pakistan                  -11.22     3.09%
China                      -5.94    40.31%
Korea, South              -32.39     1.12%
Hong Kong                 -79.83     0.40%
Taiwan                    -32.46     1.09%
Japan                     -32.03     0.55%
EU15 (European Union)     -34.51     3.90%
ASEAN (Countries)         -12.94    16.44%
CBI (Caribbean)           -18.89     7.58%
LDDC exc. Haiti            -9.97     6.82%
  (Least Developed
   Countries)

Source: Textile & Apparel Trade Balance Report 12/10/09 OTEXCA;
EmergingTextiles.com

Table 2. European Union of 25 Countries (EU25) Clothing Imports
by Origin Country (millions of U.S. dollars) First Half of 2008
versus First Half of 2009

                First     First      First     First
               half of   half of   half of    half of
                  2008      2009       2009      2009
                Value     Value        US$    Volume
                  US$       US$    % Change    Share

EU25            44,669    39,450     -11.68      100%

CHINA           15,530    15,665       0.87     44.09
TURKEY           6,272     4,690     -25.23      9.03
BANGLADESH       3,395     3,553       4.65     14.06
INDIA            3,366     3,132      -6.95      6.81
TUNISIA          2,135     1,578     -26.08      2.15
MOROCCO          1,906     1,400     -26.58      2.35
VIETNAM            826       742     -10.20      2.01
SRI LANKA          817       801      -2.03      4.15
INDONESIA          802       728      -9.27      1.54
HONG KONG          778       292     -62.48      0.42
PAKISTAN           658       607      -7.80      2.77
THAILAND           554       489     -11.70       0.9
SWITZERLAND        458       360     -21.25      0.11
EGYPT              372       304     -18.11      0.77
CAMBODIA           350       305     -12.79      0.85

Source: Eurostat; EmergingTextiles.com (1998-2009)

Table 3. European Union EU27 Clothing Imports by Origin Country
(millions of U.S. dollars) 2005-2008

              2005    2006    2007    2008    2007    2008    2008
             Value   Value   Value   Value   US$ %    US$    Market
              US$     US$     US$     US$    Change  Change  Share

EU27 Total   61,283  69,622  79,427  86,790  14.08%   9.27%    100%
  Imports
CHINA        21,081  23,692  29,924  36,908   26.31   23.34      43
TURKEY       10,065  10,335  12,200  11,528   18.05   -5.51      13
BANGLADESH    4,397   5,790   6,027   6,919    4.09   14.79       8
INDIA         4,025   4,781   5,246   5,695    9.71    8.57       7
TUNISIA       3,061   3,097   3,520   3,778   13.67    7.32       4
MOROCCO       2,813   2,971   3,476   3,498   16.99    0.65       4
HONG KONG     2,119   3,151   2,300   1,249  -26.98  -45.69       1
INDONESIA     1,491   1,773   1,635   1,642   -7.76    0.38       2
SRI LANKA       991   1,215   1,426   1,644   17.36   15.30       2
THAILAND        975   1,103   1,092   1,152   -0.99    5.46       1
PAKISTAN        968   1,138   1,243   1,287    9.28    3.50       1
VIETNAM         857   1,285   1,543   1,821   20.10   17.99       2
SWITZERLAND     645     667     832     906   24.66    8.90       1
CAMBODIA        591     693     722     808    4.24   11.89       1
MAURITIUS       548     606     657     616    8.36   -6.22       1

Source: Eurostat; EmergingTextiles.com (1998-2009)

Table 4. Japan's Imports of Clothing and Clothing Accessories
(Thousand of U.S. dollars)

                                                         Jan-Sep 07
                  Jan-Sep 07   Jan-Sep 08   Jan-Sep 09    Value %
                     US $         US $         US $        Share

Total Imports     17,519,078   18,522,782   18,866,542         100%
Japan

CHINA             14,305,619   15,133,144   15,527,182        81.46
VIETNAM              528,856      632,920      766,980         3.12
ITALY                872,262      861,999      646,851         4.68
THAILAND             207,874      236,474      252,804         1.30
INDIA                136,872      161,328      173,832         0.97
S. KOREA             194,650      164,925      170,198         1.29
MALAYSIA             119,912      139,133      138,724         0.75
USA                  152,968      139,331      131,608         0.93
INDONESIA            107,652      115,997      131,166         0.66
MYANMAR               65,756       84,793      109,302         0.35
FRANCE               152,614      139,816      106,128         0.86
BANGLA                23,458       32,551       80,840         0.12
PHILAPINES            64,393       65,329       58,010         0.41
ROMANIA               48,516       57,187       49,956         0.25
TURKEY                41,950       49,376       49,389         0.23

                  Jan-Sep 08   Jan-Sep 09
                   Value %      Value %
                    Share        Share

Total Imports           100%         100%
Japan

CHINA                  81.33        81.98
VIETNAM                 3.52         4.17
ITALY                   4.67         3.30
THAILAND                1.40         1.48
INDIA                   1.06         1.12
S. KOREA                0.98         0.96
MALAYSIA                0.78         0.77
USA                     0.80         0.75
INDONESIA               0.67         0.72
MYANMAR                 0.44         0.60
FRANCE                  0.76         0.58
BANGLA                  0.15         0.38
PHILAPINES              0.34         0.33
ROMANIA                 0.26         0.23
TURKEY                  0.28        10.27

Source: Japan's Customs EmergingTextiles.com (1998-2009)

Figure 1. United States Market Share of Imports January-October 2009

U.S. Market 10.2009

12 CBI
(Caribbean)    89%
11 ASEAN
(Countries)    17%
EU15
(European
Union)          4%
Japan           1%
Taiwan          1%
Hongkong        1%
Korea South     1%
China          43%
Pakistan        3%
India           6%
Mexico          6%
Canada          2%
LDDC            7%

Note: Table made from pie chart.