Underwear & Swimwear. Essential sourcing intelligence for buyers

Transcription

1 Sample pages only To order the full report please refer to the last page Underwear & Swimwear Essential sourcing intelligence for buyers China manufacturer profiles Detailed profiles of 31 suppliers with verified manufacturing and export credentials Zhejiang Fujian Product & price trends Prices and specifications of 131 top-selling export products November 2010 US$395 Guangdong Underwear & swimwear supply centers Supply centers & market trends Coverage of leading and emerging supply centers, plus insight into capacity, output and R&D wwwchinasourcingreportscom

2 EXECUTIVE SUMMARY UNDERWEAR & SWIMWEAR Supplier capability in China EXECUTIVE SUMMARY China s underwear and swimwear industry is recovering from the global financial downturn Although outbound shipments have not returned to precrisis levels in 2008, suppliers are confident that export growth can exceed 20 percent in the coming year The latest customs statistics show that companies are on the way to meeting this target The country s foreign sales in the line from January to July 2010 increased 18 percent by volume to 52 billion pieces Value rose 21 percent to $52 billion Escalating material and labor costs, however, are eating into margins Fabric spending is climbing as makers compete for their share of the limited cotton supply The need to attract workers and reduce turnover is pushing up employee expenditure The following are some of the key developments we see in China s underwear and swimwear industry: Suppliers are offering higher salaries and increasing benefits to fulfill staffing requirement Companies are absorbing part of the additional manufacturing costs and minimizing price augmentations to maintain existing customers while staying profitable Exporters are providing worker training and rearranging assembly lines to enhance productivity and reduce wastage Suppliers are applying for loans for equipment upgrades that help diminish dependence on individual staff members and cut lead time Makers shifting to the higher end are emphasizing environmentfriendly materials and fabrication processes Green textile options include corn-derived PLA and soybean protein fiber Product functionality is being improved Examples are seam-free and body-enhancing men s briefs and shirts, and bras with less underwire pressure Suppliers of underwear, swimsuits and sleeping apparel in China offer models for men and women These are also the scope of this report Each category has its own section containing the details on the features and prices of low-end, midrange and high-end releases Export statistics, design trends, and the production and QC processes are discussed as well Further, the chapter elaborates on the composition of the manufacturer pool, highlighting key characteristics of the different types of companies based on size The Industry Overview explains the various challenges that makers are facing, including the rising cost of materials and the labor shortage It also details the strategies businesses are adopting to address these difficulties Projections for the next six to 12 months on overseas sales, target markets, capability improvement, capital expenditure plans and R&D focus are discussed in the Supplier Survey Small and midsize operations comprise the majority of China s underwear and swimwear sector Approximately 80 percent of all exporters are private locally owned companies, and the rest are foreigninvested The provinces of Guangdong, Zhejiang and Fujian are the main production centers Reflecting this structure, 80 percent of profiled companies are private locally owned businesses The rest receive external funding, including from Hong Kong Nearly one-half of featured suppliers come from Fujian Guangdong and Zhejiang each host about 20 percent Roughly 42 percent of featured companies have been in the export and manufacturing industry for more than a decade In this report 31 in-depth company profiles 131 top-selling export products Supplier demographics Supplier survey Industry statistics & charts METHODOLOGY To produce this report, Global Sources surveyed a wide range of suppliers Rather than focus simply on high-profile makers, we compiled a representative sample of large, midsize and emerging manufacturers All profiled companies are export-oriented professional suppliers that are verified by Global Sources Each supplier is confirmed to be authentic with a legally registered business All companies are visited three or more times to ensure they are export-ready and have real offices and products The listed contact person has been verified to represent the registered company In each case, companies were required to answer specific questions designed to verify their manufacturing and export credentials All profiled suppliers participated in a survey designed to provide insight into product and price trends, and challenges facing the industry All survey questions are single choice Suppliers are ranked based on a 6-star ranking system Companies with a higher star ranking provide more business information and verification reports on their Global Sources online homepages Suppliers rated 5 or 6 stars have a Credit Check report from First Advantage or Sino-Trust and a Supplier Capability Assessment report provided by Bureau Veritas online The rankings are correct at the time of publication and may be subject to change wwwchinasourcingreportscom 3

3 CONTENTS CONTENTS INDUSTRY OVERVIEW 7 Supplier summary Export statistics Main production centers Supplier demographics Underwear 10 Swimwear 16 Sleepwear 21 Supplier survey 24 Export prices, price increase, export sales, target markets, capital expenditure, challenges, export capability, R&D focus SUPPLIER PROFILES 27 Supplier locations Industry composition Exporter ranking Supplier matrix Production checklist Supplier profiles PRODUCT GALLERY 101 Top-selling export products Copyright 2010 Trade Media Limited All rights reserved Reproduction in whole or in part in any form or medium without the expressed, written permission of Trade Media Holdings Limited and Trade Media Limited is prohibited Published by Publishers Representatives Limited (on behalf of Trade Media Limited) 4th Floor, Century Yard, Cricket Square, Elgin Avenue, PO Box SMB, George Town, Grand Cayman, Cayman Islands c/o 22/F Vita Tower, 29 Wong Chuk Hang Road, Aberdeen, Hong Kong ISBN Disclaimer: Any recommendation contained in this report may not be suitable for all investors or businesses Moreover, although the information contained in this report is obtained from sources believed to be reasonably reliable, the accuracy or completeness of such information cannot be guaranteed The author and the publisher of this report (and the publisher s affiliates, agents, sales representatives and service contractors) do not make any representation or warranty whatsoever (whether express or implied) in relation to any of the contents of this report (including any information, opinion, recommendation or conclusion contained in this report) (collectively, Contents ), whether as to the accuracy, completeness, quality, fitness, suitability or reliability of such Contents (or any portion thereof ) or otherwise, and shall not be liable under any circumstances whatsoever for any error, omission, defect or deficiency in, or for any use of or reliance on, such Contents (or any portion thereof) All product images are provided by the companies interviewed and are for reference purposes only Those product images featuring products with trademarks, brand names or logos are not intended for sale Products that are not the specific topics of editorial articles are shown for illustrative and/or demonstrative purposes only We, our affiliates, and our affiliates respective directors, officers, employees, representatives, agents or contractors, do not accept and will not have any responsibility or liability for product images (or any part thereof) which infringe on any intellectual property or other rights of a third party 4 China Sourcing Reports

4 INDUSTRY OVERVIEW INDUSTRY OVERVIEW Global demand for underwear, swimsuits and nightclothes may be rebounding from the recent financial crisis, but China suppliers are hardpressed to offer competitive prices amid rising production costs Shipments in the line from January to July 2010 amounted to 52 billion pieces worth $55 billion The figures show YoY growth of 18 percent by volume and 21 percent on value terms During this period, the average unit quote climbed 4 percent to $108 The meager increase in export value belies the large jumps in fabric rates, especially for cotton On Oct 22, 2010, New York futures for SLM variants reached an all-time high of $120 for every pound to be delivered in December As of Nov 8, spot prices for 328-grade in the local market more than doubled to $433 per kilogram compared with the previous corresponding period The surge is due to a shortage in the world supply Weak demand during the economic downturn forced domestic farmers to reduce dedicated areas in 2009 Apart from the smaller harvest, rains in the agricultural hubs of Xinjiang, and Henan, Hebei and Shandong provinces affected output quality Unexpected cold weather in April this year delayed planting Moreover, hoarding and speculation contributed to higher costs Before selling, farmers and traders withheld stock until prices escalated Transportation is another aspect contributing to outlay With a significant amount of high-grade cotton originating from the western region of Xinjiang, conveying materials via train is expensive for coastal factories Further, the commodity takes a backseat to other primary goods such as coal Companies that had urgent need for the textile booked trucks, which is $103 costlier per ton than using the railway With only 68 million tons of cotton available within the country but total requirement estimated at 11 million tons, the national government increased import quotas to 36 million tons in June this year It also undersold 600,000 tons of reserve Spinners started bidding for the stockpiled fiber on Aug 10 These measures brought down costs temporarily in China, but international valuation trends prevailed eventually As calamities also hit foreign sources, global rates continued to rise July floods in Pakistan are estimated to have destroyed 700,000 bales of the crop, while monsoon storms in India postponed gathering of the season s yield Moreover, India is restricting exports to 55 million bales until the next harvest to preserve internal stock Blending or substituting does not help ease costs since fees for other materials are also escalating For example, a kilogram of 14d, 38mm polyester staple fiber is currently $285, up 92 percent from six months earlier An equal amount of 150d, 48f DTY is $276, gaining 46 percent in the same span At the moment, 70d, 24f nylon DTY is $458 per kilogram The rate for 40d spandex is $9 Both reflect growth of 30 percent over the past year Makers have no recourse but to raise product prices to remain viable Among the companies featured in this report, 85 percent boosted quotes in the past quarter The majority of markups, however, were limited to 10 percent and not commensurate to the higher input costs Buyers are still price-sensitive and suppliers prefer to earn less than risk losing clients Apart from elevated material outlay, exporters are affected by the ongoing labor shortage Many provinces have lifted the minimum wage to attract migrant workers to the coastal region, where the bulk of factories are located Most businesses even offer more than the base rate, reaching $221 to $295 per month They provide free board and Supplier summary Suppliers surveyed 31 Export sales $1753mn Export ratio 61% OEM business 83% Capacity utilized 52% Annual R&D spending $47mn Full-time employees 10,807 Data: All surveyed suppliers lodging, entertainment facilities and Internet access to employees as well To maximize labor spending by enhancing efficiency and lowering defect rates, training is given to new personnel For instance, cutting room staff members are taught how to determine the appropriate number of fabric layers for the size of their scissors Close coordination between designers and pattern makers is emphasized for economical textile utilization Several manufacturers with good credit standing obtained loans or grants to upgrade equipment, thereby easing the need to hire In addition, switching to computerized sewing machines from mechanical types can cut lead time from 45 days to between 25 and 30 Further, factories are devising production plans that hasten processing Lines are designed to avoid steps that do not add value to the item, including counting and transferring semifinished pieces The strategy aims to lessen bottlenecks as well Green initiatives lead upscale shift With higher production expenses eroding China s price advantage for basic models, some suppliers are targeting the midrange and high end as part of a long-term plan to stay profitable Since visually simple designs are currently favored by customers, makers are moving up the value chain by using environment-friendly materials and processes Amplified by increased demand for wwwchinasourcingreportscom 7

5 SUPPLIER PROFILES Baifuning Textiles Co Ltd In 2009, Baifuning generated export revenue of $23 million from men s and women s sleepwear This accounted for 30 percent of annual sales The rest came from kitchen and bedroom textiles, cleaning cloths, and baby care products Releases are sent to Europe and North America Seventy percent of shipments are under OEM agreements ODM orders represent 20 percent The balance consists of models bearing the in-house brand Income from foreign transactions is projected to increase 10 percent The company has a 4,000sqm factory in Ningbo, Zhejiang province Utilizing 60 percent of capacity, the plant is equipped with mechanical and computerized sewing machines About 30,000 pieces are completed each month All output goes abroad Founded in 2002, Baifuning invests $200,000 in R&D annually Future endeavors in the line will concentrate on environment-friendly textiles Of the supplier s 100 workers, seven are assigned to product development Three staff members handle quality management Profile Production pieces/mth Capacity Output Exports 30,000 30,000 50,000 Company facts Year established 2002 Business type Manufacturer Company ownership Mainland China-owned Head office location Ningbo (Zhejiang) Number of factories 1 Factory location(s) Ningbo (Zhejiang) Total factory area 4,000sqm No of full-time employees 100 No of R&D/design staff 7 No of QC staff 3 Annual sales (all products) $75mn Annual R&D spending $200,000 ISO certification No Sales $mn/yr Total sales Sales (Underwear & swimwear) Exports (Underwear & swimwear) Contact details Sales & exports: output: Underwear & swimwear Annual sales $23mn Share of total sales 30% Annual export sales $23mn Total monthly capacity 50,000 pieces Average monthly output 30,000 pieces Capacity utilized 60% Average monthly exports 30,000 pieces Export ratio 100% OEM % of exports 70% ODM % of exports 20% OBM % of exports 10% Other products made Cleaning cloths, baby care products, kitchen and bedroom textiles Business contact LEE Alex Phone (86-574) Fax (86-574) alex@baifuningcom baifuning@globalsourcescom URL wwwbaifuningcom wwwglobalsourcescom/microfiberco Address Room 803, 203 Lantian Road, Ningbo, Zhejiang, China 36 China Sourcing Reports

6 SUPPLIER PROFILES Capability Production checklist Assembly lines 1 Bra cup molding machines Computerized sewing machines 50 Cutting machines 2 In-house embroidery Yes In-house fabric production No In-house fabric testing No Mechanical sewing machines 80 Needle detectors 1 Oeko-Tex Standard 100 certification No Popular export models Unisex robe Model BBR302 MOQ 800 pieces Packaging OPP bag Delivery 30 days Price $610 Exports by product Men s sleepwear 40% Women s sleepwear 60% Men s swimwear Women s swimwear Men s underwear Women s underwear Exports by market North America 35% European Union 60% Europe (non-eu) 5% Asia-Pacific Middle East Other Survey Export prices Increased Export price increase 5-10% Export sales Increase less than 10% Target market European Union Capital expenditure Increase up to 50% Major challenge Cost of raw materials Export capability Shorten design/development time R&D focus Eco-friendly textiles Description: Cotton; 230gsm; 120cm long; in various sizes, colors Women s robe Model BBR217 MOQ 500 pieces Packaging OPP bag Delivery 30 days Price $870 Description: Microfiber; 629gsm; hooded; 117cm long; in various sizes, colors Women s robe Model BBR119 MOQ 1,000 pieces Packaging OPP bag Delivery 30 days Price $456 Description: Coral fleece; 563gsm; 115cm long; custom sizes, colors wwwchinasourcingreportscom 37

7 PRODUCT GALLERY PRODUCT GALLERY Underwear Changshu Eastar (profile page 38) Model: ESG MOQ: 3,000 pairs Packaging: Polybag Delivery: 50 days Price: Description: Men s boxer shorts; 100% cotton jersey; button fly closure; elastic waistband; allover print; sizes S to XXL; orange Haining Intex (profile page 54) Model: YT7232 MOQ: 1,500 sets per size, color Packaging: Polybag Delivery: 25 days Price: $250 Description: Women s underwear set; sports bra, bikini; 70:25:5 modal-nylon-spandex; seamless; ribbon trimming; sizes S to XL Haining Intex (profile page 54) Model: YT3152 MOQ: 2,000 sets per size, color Packaging: Polybag or buyer-specified Delivery: 25 days Price: $8 Description: Women s sports underwear set; undershirt, pants; 60:33:7 organic cottonnylon-spandex; seamless; sizes S to XL Haining Intex (profile page 54) Model: YT3406 MOQ: 2,000 sets per size, color Packaging: Polybag or buyer-specified Delivery: 25 days Price: $6 Description: Women s underwear set; sports bra, hipster panty; 65:28:7 polyester-nylonspandex; seamless; moisture-wicking; sizes S to XL Haining Intex (profile page 54) Model: YT#0021 MOQ: 1,000 sets Packaging: Polybag Delivery: 25 days Price: $19 Description: Women s sports underwear set; long-sleeved undershirt, pants; 65:28:7 polyester-nylon-spandex; moisture-wicking; sizes S to XL Jinjiang Rongmei (profile page 58) Model: KMS4052 MOQ: 3,000 pairs per color Packaging: PP bag Delivery: 35 days Price: Description: Men s boxer shorts; cotton; sizes S to XXL; custom colors Information not disclosed wwwchinasourcingreportscom 101

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