The Development Prospects of the Knitting Industry in the Next Decade

Over the next decade, the prospects for China's textile and apparel industry are promising.

However, most apparel enterprises are primarily engaged in original equipment manufacturing (OEM) for export. In the domestic market, they have yet to achieve a "brand premium." Moreover, the industry has low entry barriers, with price competition being the primary means of competition. As a result, the expansion of the main business of apparel companies is constrained. Fabric companies are positioned in the middle of the industrial chain. The rapid development of the apparel industry has generated strong demand for fabrics. Currently, nearly 50% of the fabrics used in exported garments still need to be imported. The state has also made "replacing imported fabrics with domestically produced ones" one of its key industrial policies. The fabric industry primarily relies on equipment and technology for competition, with relatively high industry barriers and weak sales constraints. Enterprises can easily enhance their performance by expanding production volume. Therefore, within the textile sector, fabric companies and enterprises with integrated upstream and downstream operations covering both fabrics and apparel hold promising prospects.