Garments & Textiles

China's buttons, snaps and garment hooks industry is seeing some signs of recovery, but fluctuation in plastic and metal outlay is preventing many suppliers from maintaining quotes at a competitive level.

Customs statistics for the first 10 months of 2009 indicate that almost 47 million kilograms of buttons and snaps worth $235.5 million were shipped out. Compared with the previous corresponding period, sales are about 12 percent lower. The volume, however, increased 3 percent. This came as average unit quotes also fell 15 percent during the span.

Combining to account for about 50 percent of Zhejiang's 5,000-strong supplier base, Hangzhou and Huzhou are the key sourcing centers for sweaters and pullovers in the province. Zhejiang is actually China's second-largest manufacturing hub for the line, following Guangdong province.

Suppliers are countering deep discounts through the precise planning of production lines and material consumption.

Makers of women's underwear in China are implementing cost controls as price competition intensifies within the industry.

While consumer demand remains weak, suppliers are facing pressure from buyers to lower quotes. In fact, Guangdong Weiermei Underwear Co. Ltd and Zhejiang Huinongsi Knitting Underwear Co. Ltd, two companies interviewed for this report, have decreased prices in the past quarter. Reductions in the latter even reached 20 percent, merely allowing the manufacturer to break even. All other featured exporters kept prices stable.

China suppliers of suits and separates are leveraging years of OEM experience and importing advanced equipment as they move steadily toward upscale production. This comes despite being affected negatively by economic challenges, which pulled January to September 2009 exports down 24 percent to 164.3 million pieces.