From January to May, 2008, the increase of investment in China garment industry experienced an apparent deceleration, with the output increase amplitude fell 8% compared with the same period of 2007, and additionally, affected by the snow disaster, earthquake and rise in food price, the increase of domestic demand slowed down. However, due to the adjustment of industrial structure, the factory price of clothing industrial products grew 2.4% over the same period, while the consumer price fell, meaning the garment market segmentation is ongoing: the price of well-known brand products targeting high-end market grew stably, and the "staple goods" aiming at wholesale market had less space for price increase.
Also impacted by domestic demand and internal trade policies, the export of garment industry witnessed a fall of increase rate. The total amount and quantity of exported Chinese garments, up to May 2008, saw 7% and 8% of increase range respectively compared with 2007.
Influenced by the combination of so many unfavourable factors, the small and medium sized enterprises (SMEs) in a short term will suffer high pressure, and the closedown or suspension of SMEs is still continuing. But to our delight, the productivity per capita is increasing continuously and the upgrade of the industry will still continue.
(Editor: Irene Lu)
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