Textile market in Asia
Textile market in Asia
The textile industry is one of the oldest industries in the world. However, it remains to be now fully globalized. Despite the abolition of quotas, some low-income countries have managed to develop their textile industry, as China did. Asia accounts for 80% of world exports of textiles and clothing (among a total of $ 500 billion), while Europe represents only 15 %. This figure is surprising, but it’s the truth!
Where does this increase come from?
With the increasing number of large areas of specialized chains and new technologies, industrial relocation to countries with low cost labour have experienced a great boom. Asian countries have been greatly affected by this revolution. In the 60s, with the emergence of new production centres in Asia, the textile industry has been transformed. Previously, the main exporters in Asia were: Hong Kong ranked third with 7.4% of world exports, while China ranked fourth with 6.5%, Taiwan ranked sixth with 5.7%, and finally the Republic Korea ranked seventh with 5.6%. Burma also has an important place in this industry (see article).
The Chinese textile industry
The textile industry and Chinese clothing has a major advantage, its complete industrial chain. It makes China the world’s largest exporter of clothing. But this trend is beginning to change more and more thanks to the low cost of labour. Indeed, Southeast Asia has undergone major changes in recent years. It was noted that the Chinese manufacturing clothing tends to relocate to South East Asia. Meet those changes, many analysts highlight the urgency for the clothing and textile Chinese driving restructuring and industrial upgrading industry, increase the number of value-added products and to create their own clothing brands. `
Other actors
Cambodia and Bangladesh are major players in the textile industry in China.
Indeed, Bangladesh is the second world leader concerning textiles, but many people wonder if it will last. The textile sector enjoys a privileged status in this country, which is still very open to international trade. But despite these many advantages, it appears however hampered by shortages in energy, poor logistics infrastructure, and the unstable political situation. The textile sector still represents 83% of Bangladesh’s exports. The textile sector and the industrial heartland of Bangladesh but also one of its weaknesses, and any changes in supply and demand can have substantial impact on the economy.
In Cambodia, you will discover that many demonstrators are challenging the weakness of their revenues and working conditions. The textile is a key sector for the Cambodian economy. 90 % of their exports are based on the textile and footwear. A third goes to the United States and in Europe. The textile sector employs 650 000 workers including 400,000 working indirectly for major international brands. Faced with the rising wage demands, the government has promised to rise from $ 80 to $ 95 per month the minimum revenue in the next April.
source Photo @Afp