A recent report suggests that rising costs in mainland China have forced more and more Western clothing brands and retailers to reduce purchases from mainland China and move garment manufacturing elsewhere.

According to the report, in response to this trend, the Chinese mainland government is pushing to encourage domestic garment market growth policy to fill the gap caused by the sharp decline in competitiveness of the manufacturing sector.

The rise in costs in mainland China is partly due to a significant increase in fuel costs and transportation costs. Meanwhile, wages in mainland China have risen much higher than in many other Asian countries. In addition, as the Chinese mainland government has promised to consider raising the minimum wage standard by 13% every year for 2011-2015 years, the wage cost of mainland China will grow further.

Early signs of transfer of garment production have already appeared in the trend of EU garment imports. In 2013, the share of total imports of all garments from mainland China decreased from 41.7% to 40.1%, and the number of imports fell sharply in the same period last year.

However, although mainland China accounted for 37.3% of the total market share of all garments imported from the United States to 37.3%, its volume share rose, but it was largely offset by rising prices due to increased productivity.

In general, garment companies cut production in mainland China and move to other low-cost countries, mainly in Asia.

In fact, 2013. European Union The strongest imports of garment imports grew from Bangladesh, Kampuchea and Pakistan, while imports from Bangladesh, Sri Lanka and Vietnam were among the strongest growth factors.

　　 Chinese Mainland The growth potential of the domestic market is enormous. The per capita consumption expenditure of garments in mainland China is very small. Although there has been significant expansion in recent years, compared with the average per capita consumption of Germany, the United Kingdom and the United States in 2012, about 1400 US dollars per capita consumption, mainland China's per capita consumption of clothing in urban areas is only 290 dollars, and only 63 dollars in rural areas.

If the clothing consumption per capita in mainland China climbed to $1400 per capita, the domestic demand for mainland garments will reach US $15600 a year, much higher than it is now.

The above additional demand will far exceed any possible decline in exports, which is equivalent to about nine times the number of garments exported from mainland China to all target markets in 2013.

So some western Ready-made clothes It is no surprise that brands and retailers are expanding their retail business in mainland China to grasp the expected business opportunities of the mainland's domestic demand.

However, one of the biggest business opportunities in China's retail industry is e-commerce, which is also expanding rapidly in the western market and Japan. For example, Burberry, Cherokee, Coach, HugoBoss, Kering, Levi 's, NeimanMarcus, Uniqlo and Zara have all established online stores in mainland China.