The global textile and apparel market has seen a significant recovery in demand, enabling Chinese export companies to successfully implement price increases. From January to October this year, the total export value surpassed the previous year’s level, with projections suggesting that annual exports could reach $200 billion.
Song Guangfa, General Manager of Nanchang Henglitai Garments Co., Ltd., shared that his company is struggling to keep up with the volume of orders. Shanghai Three International Garment Co., Ltd., which specializes in mid-to-high-end men's casual wear and fashion shirts, primarily targets markets in Europe and South America. According to the company’s foreign trade department, garment export prices have risen by approximately 20% this year, and there remains a strong demand. In previous years, the clothing export market was dominated by buyers, but this year it has shifted to a seller’s market.
Henan Marriott Clothing Import & Export Co., Ltd. in Zhengzhou also reported similar trends, stating that their export prices have increased by around 20%, while export value has grown by about 25%. Thanks to higher pricing and increased order volumes, Song Guangfa’s company achieved an export value of 140 million yuan this year, marking a 30% year-on-year increase.
Wang Qiang, Editor-in-Chief of First Textile Net, noted that in the early months of this year, the unit price of domestic knit and woven garments remained relatively stable, with some months even showing a decline. However, starting in May, export prices began to rise sharply. By September, the average export price reached $3.9 per piece (set), representing a 10.3% year-on-year increase—the first time the industry saw double-digit growth for the year.
While the price hikes have boosted overall export values, profit margins have not improved. Song Guangfa explained that rising labor and raw material costs have led to a 5% year-on-year drop in profits. According to First Textile Network statistics, textile raw material costs have surged by 30% to 80% this year, with cotton prices more than doubling. Labor costs have also climbed, making hiring increasingly difficult. Reports from Jiangsu and Zhejiang provinces indicate that only 70 to 80% of factories managed to meet their recruitment goals last year, with some falling below 50%. To attract workers, many companies have significantly raised wages, with salary increases in the Yangtze River Delta and Pearl River Delta regions ranging from 20% to 40%.
Additionally, stricter environmental regulations are adding to operational costs, further squeezing profit margins. The combined pressure of rising input costs and tighter regulations is testing the resilience of the textile industry, leading to a continuous decline in export profitability.
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