Will Chinese sportswear supplier be replaced by Vietnamese ones?
In 2022, Vietnam's GDP grew by $92.175 billion in the first quarter, up 5.03% year on year, higher than China's 4.8% growth in the same period. In terms of foreign trade export, more than China's largest export city Shenzhen. For a time, the public opinion is all over the place, the rumor that "Made in Vietnam" will replace "Made in China" to dominate the world, really so?
Clothing is one of the easiest industries to transfer from one country to another, as long as there is a large labor force in the country where they can learn to cut, sew, and pack. The demographic dividend is an important reason why a large number of foreign investment has moved factories from China to Vietnam in recent years. But for all their momentum, Vietnam's garment makers are unlikely to displace the Chinese.
1. China has a sound supply chain advantage
Garment manufacturing is not only a matter of demographic dividend and low labor cost, which is also a major disadvantage of Vietnam. China has an advantage that no other country in the world has: a complete supply chain. For example, a men's sportswear may need fabrics, zippers, buttons, etc. In particular, silk screen printing, tie-dye, digital printing, embroidery and other technologies are involved. Due to the perfect supply chain in China, you can get all the materials in a small town, and even buy all the clothing accessories you need in less than one hour. An imperfect supply chain will lengthen the production cycle of products, and a series of expenses such as tariffs will increase the production cost of products. The production quality of different countries will also cause fluctuations in the quality of finished products, which will ultimately affect the cost of finished products. And that's why it's still China's own garment makers.
2. China has mature talent in garment manufacturing
The rapid influx of factories has left Vietnam with a shortage of skilled workers and managers, and the labor cost advantage is diminishing. In addition to the diversity of today's sportswear, brands are more demanding for novel fabrics and unique styles of clothing. The ability to customize fashionable men's sportswear is the most basic threshold to test clothing suppliers. If suppliers can provide stronger category development ability, they will be more competitive in the market. As for Humen Town, Dongguan City, China, which is the most complete and famous clothing manufacturing center in China, Hucai is located in Humen, every employee has more than 10 years of clothing production experience, HucAI is a clothing manufacturer with designers, can meet the rapid changes in the market, make the latest trend of sportswear, you can see the latest elements of sportswear market here.
3. China's active export policy support
Due to the impact of the global COVID-19 pandemic, clothing production has hit a low point. At the beginning of the outbreak, the global economy was stagnant, which also affected sportswear exports. Now, the diversification strategy of domestic exporters is gradually taking effect, and exports to foreign countries are recovering. The epidemic is almost under control in China, and work and production are gradually resuming in an orderly way. The economy is also picking up steadily and even making great strides forward. However, in Vietnam, the epidemic is still seriously affecting the local production capacity. If a worker is infected, the whole factory will be shut down, which undoubtedly has a very serious impact on the production capacity.
So Chinese clothing makers are still the first choice. Over the past 30 years of industrial process, China has accumulated a large number of skilled workers, management talents and a huge group of engineers, and the world's contract factories have spawned countless differentiated professional divisions of labor. Good infrastructure construction and a huge logistics system provide guarantee for product transportation, and the rapid development of the Internet has greatly reduced the communication cost.
If you're looking for a sportswear manufacturer, I can help. Hucai is a well-known men's sportswear manufacturer in China, not only with 24 years of experience in apparel manufacturing, but also providing the best supply service in the market.
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