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Analysis Of Overseas Garment Manufacturers And American Domestic Manufacturers

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Table of Contents

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Status Quo Of Overseas Garment Manufacturers

In the clothing export market, China, the European Union (28 countries), Bangladesh and Vietnam ranked among the top four in the world in 2018, accounting for 75% of the global clothing market share. According to WTO data, China has long been the world’s largest exporter of textiles and clothing, accounting for more than 35% of the world’s clothing exports.

The trend of clothing market is gradually globalized. Before a piece of clothing reaches consumers, it has actually traveled half the world. “After ordering fabrics in China, South Korean and Japanese clothing companies will transport them to self built garment manufacturers in Southeast Asia for garment production, and finally the finished clothes will be transported to European and American countries for sales, which is a microcosm of the globalization of the clothing industry chain. Affected by the epidemic, China’s clothing market share and position have gradually declined.

In the turbulent international situation and environment, overseas buyers have realized the drawbacks of relying too much on Chinese production. It is gradually revealed that it is easy to fall into a passive adverse situation, so it has quietly transferred production to Vietnam, India and other countries. Mexico comes from behind. Although its labor force cost is higher than that of developing countries and less developed countries, Thanks to its unique geographical location and fast delivery time, it is increasingly favored by European and American countries.

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Market Analysis of American Garment Manufacturers

Current Situation Of Local Garment Manufacturers In The United States

Since entering the 21st century, the textile and clothing industry of the United States has actively adjusted its structure under the competitive pressure of China and other developing countries, showing the characteristics of more differentiated products, miniaturized enterprise scale, flexible production technology and liberalization of trade policies.

At the same time, due to globalization and offshore outsourcing strategies, the scale of domestic textile and clothing manufacturing industry in the United States has gradually shrunk, and most of the existing textile and clothing enterprises have withdrawn from product production and transformed into traders and brand manufacturers. In recent years, with the implementation of the U.S. manufacturing industry return strategy, the U.S. textile and clothing industry has shown more obvious signs of return.

In addition, most American women’s clothing is manufactured in factories in China and Vietnam. In addition to being affected by U.S. – China tariffs and the effect of president Trump’s withdrawal from the Trans Pacific Partnership Agreement (TPP) also makes Vietnam’s clothing exported to the United States still have to bear tariff costs. As for men’s clothing, it is usually produced in Mexico and other countries that have signed free trade agreements with the United States, so the tariff cost is low.

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Advantages of Native American Garment Manufacturers

As we all know, brand effect has a certain impact on consumer choice, especially in unfamiliar industries, and brand power will become a key determinant. Similarly, “Made in the United States” compared to which made in other developing countries, which is attractive and makes people feel that the quality is superior. For Americans, buying products made in the United States also means that you have made contributions to national enterprises and the economy, and provided employment opportunities for more people. Choose an American company, because there is no language barrier, communication will become more smooth and easier. For clothes designed and developed in the United States, you can also visit and follow up directly. This is much easier and more feasible than flying to China or Vietnam. Therefore, the return strategy of American manufacturing has become a part of the supply chain strategic adjustment and diversification strategy of many clothing companies. Especially in customization, short delivery time, luxury goods and other aspects, the American clothing manufacturing industry is extremely competitive.

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Challenges and Opportunities Faced by Native American Garment Manufacturers

The shortcomings of Made in America are also obvious. The biggest drawback is that the price and cost are too high. Due to the relatively perfect labor system and high labor cost, the price of American manufacturing is generally more than 20%~30% higher than that of other manufacturing. In addition, you will also find that the local labor force in the United States is insufficient, the number of factories is limited, and the qualifications and skills of workers are not as good as those in other countries. This is not friendly to clothes that require more complex artificial skills and production processes.

In today’s increasingly serious price competition and product homogeneity, how to maintain the core competitiveness is a problem that American local manufacturers need to think about. The price war is obviously not a wise strategy. Starting from design and development, supplemented by fast delivery cycle, and focusing on serving customers who pay attention to design and development,prefer to faster delivery speed and are less price sensitive, which will be an important breakthrough for American manufacturing.

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