| ¡¤Changes in consumer tastes and expectations |
- Growing consumer trend towards better quality apparel will stimulate the demand for functional fabrics
- Apparel manufacturers will focus more on functional fabrics to differentiate themselves in the competition
- The functional fabric industry in the PRC has been lagging in growth; foreign import of functional fabrics exceeds domestic production
- Demand for and production of functional fabrics in the PRC is expected to increase at 3.4% per annum, attaining a total output of RMB 24.0 billion (representing 32.0% of the apparel industry) by 2010 |
|
| ¡¤Growing affluence of the PRC population |
- Rising living standards and growth in dispensable income in the PRC is expected to spur demand for better quality textile and apparel products
- Average annual growth of apparel demand in the PRC grew approximately 12.6% between 2000 and 2004 |
|
| ¡¤Increasing export demand for fabrics from the PRC |
- Relatively lower production costs in the PRC, coupled with quality products comparable to those from developed countries, has spurred export demand for fabrics
- The PRC¡¯s textile and apparel exports in the first
half of 2007 grew approximately 16% year-on-year |
|
| ¡¤PRC government¡¯s initiatives to promote the textile and apparel industries |
| - According to the ¡°Textile Industry Eleventh Five-Year Plan¡± issued in June 2006: |
|
¡¤Textile fibre
production shall increase to 36 million tonnes (35% more
than the production
¡¡
planned in the current five-year plan) |
| ¡¤Per capita productivity should increase by 60.0%
|
- Production of high-technology, functional and environmentally friendly textile products is encouraged to increase the production value of the industry
- Foreign investment enterprises in the textile industry enjoy tax exemptions on customs tax and value-added tax |
|
