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Tag: garment industry

  • US sports apparel firm mulls ditching China for Vietnam

    US sports apparel firm mulls ditching China for Vietnam

    U.S. sports apparel company Brooks Running is considering shifting its manufacturing operations from China to Vietnam to avoid trade war tariffs. The firm’s CEO Jim Weber said Monday that the impact of President Donald Trump’s trade war with China is going to put a 45-percent tariff on his company’s running shoes.

    “We’re preparing for a 25 percent tariff on our business and that’s on top of 20 percent already on running shoes. It’s really going to be upsetting for us,” Weber said.

    Vietnam will be a “possible” new supply chain for Brooks, Weber said, adding that the transition will likely cost “millions” of dollars.

    Weber said he was confident that the move will allow his company to be more competitive in the U.S. and in the world as the tariffs are lower in Vietnam.

    He added that the transition, if it happened, would likely to be permanent.

    The U.S.-China trade war escalated last month as the U.S. levied new tariffs of 10 percent on about $200 billion worth of Chinese products, with the tariffs to go up to 25 percent by the end of this year.

    China retaliated immediately with 5 and 10 percent tariffs on $60 billion worth of U.S. products.

    The announcement by Brooks, which sells sports footwear, apparel, bras and accessories in 50 countries worldwide, came after Adidas CEO Kasper Rorsted said in May that his company is shifting footwear sourcing from China to Vietnam.

    Vietnam has in fact overtaken China as Adidas’ top supplier, with Vietnamese factories producing 44 percent of its shoes by volume last year against 19 percent by Chinese manufacturers, according to the company’s data.

    This is also true of Adidas’rival Nike, which had 46 percent of its footwear made in Vietnam last year, against 27 percent in China.

    Vietnam’s footwear exporters seem to be benefiting from the ongoing trade war.

    In the first nine months this year, Vietnam’s footwear exports were worth $11.74 billion, a 10.2 percent year-on-year increase.

    Vietnam is the second biggest exporter of footwear to the U.S. behind China, shipping 404 million pairs of shoes last year.

    Last year, Vietnam’s footwear exports were worth $14.65 billion.

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  • China’s garment retail sales grow 7.2% in Jan-Sept ’16

    China’s garment retail sales grow 7.2% in Jan-Sept ’16

    Retail sales of garments, footwear, hats and knitwear of Chinese enterprises above designated size increased 7.2 per cent year-on-year during the first nine months of 2016. The total value of retail sales of these goods was 1,002 billion yuan ($148.121 billion). However, the growth rate was lower compared to total retail sales of consumer goods.

    During January-September 2016, the total retail sales of consumer goods reached 23,848.2 billion yuan, up by 10.4 per cent year-on-year. Of the total, the retail sales of consumer goods of units above designated size was 10,834.4 billion yuan, up 7.8 per cent, according to the National Bureau of Statistics of China.

    The national online retail sales of goods and services during the nine-month period was 3,465.1 billion yuan, up 26.1 per cent year-on-year. Of this, the online retail sales of physical goods was 2,795.0 billion yuan, growing at 25.1 per cent and accounting for 11.7 per cent of the total retail sales of consumer goods. Of the online retail sales of physical goods, clothing sales went up by 16.3 per cent.

    The Bureau also released its preliminary estimate of the Chinese economy during the first three quarters of 2016. According to the estimate, the gross domestic product (GDP) of China in the first three quarters of this year was 52,997.1 billion yuan, a year-on-year increase of 6.7 per cent at comparable prices.

    The value added of the primary industry was 4,066.6 billion yuan, up by 3.5 per cent year-on-year; that of the secondary industry was 20,941.5 billion yuan, up by 6.1 per cent; and that of the tertiary industry was 27,989.0 billion yuan, up by 7.6 per cent.

    In terms of external trade, the total value of imports and exports in the first three quarters of 2016 was 17,531.8 billion yuan, a decrease of 1.9 per cent year-on-year. The total value of exports was 10,058.5 billion yuan, registering a drop of 1.6 per cent. The value of imports was 7,473.3 billion yuan, down by 2.3 per cent. The trade surplus was 2,585.2 billion yuan.

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