China Textile and Apparel Industry (5 Forces Analysis)
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
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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
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