Efforts aim to curb outlay, boost efficiency

	Xiamen Xinyu’s bikini set is made of 80:20 polyamide-elastane. It is UV- and chlorine-resistant, and comes in XS to XXL.

Manufacturers of women’s swimwear in China are taking steps to counter rising material costs and improve production capability.

During the past few months, fabric outlay jumped 5 to 10 percent, with the rate of increase in some textiles exceeding 15 percent. Specifically, locally sourced solid-color variants have doubled from $0.15 to $0.30 per yard since November 2009. Printed kinds climbed more than $0.30.

One reason for the upswing is the higher manufacturing requirements stemming from the resurgence of demand amid gradual economic recovery.

Supply rates are also rising due to the escalating value of crude oil, the byproducts of which are essential components of swimwear fabrics.

To curb price increases and retain clients, most companies opt to shoulder extra costs. Although quotes may go up just 1 or 2 percent, businesses still absorb the bulk of expenses, sacrificing more than 3 percent of profits.

This, however, affects only orders made after resource outlay soared. Confirmed but unprocessed transactions prior to this remain unchanged.

Alternatively, exporters targeting the high end adjust quotes based on the current value of raw materials as they have more leeway for such. This is because clients in this segment are not as price-conscious as their counterparts in the low end and midrange, placing more importance on quality. Further, upscale releases fetch better margins. A $20 design, for example, can be sold for $50 to $150 in the retail market.

In terms of production capability, suppliers are upgrading equipment to heighten efficiency and consequently reduce costs.

For instance, swimwear makers that turn out their own fabric for the line are bringing in computerized knitting machines to replace manual versions. Apart from speeding up operations, the new equipment lessens the dependence on individual personnel, cutting down on labor expenses.

Factories are also assigning production team leaders among the skilled employees to assist and monitor manufacturing stages, especially when some workers are sick or on leave. This helps ensure as well that quality standards are consistently met.

Additionally, to encourage efficiency among staff members, makers offer incentives to personnel who yield the most output each month.

To ensure safety, plants comply with various international regulations. For instance, suppliers use Oeko-Tex Standard 100- certified fabric, and send samples of finished swimwear to SGS or Intertek for testing.

Further, companies now adhere to GBT 22852-2009, which took effect in December 2009. This guide monitors textiles specifically knitted for swimwear. It prescribes the requirements, production directions, and examination methods and rules regarding formaldehyde content, pH value, fabric composition, stretch, decomposable aromatic amine dyes, shrinkage, colorfastness, and chlorine and UV resistance.

The standard was brought forward by the China National Textile and Apparel Council, and drafted by nine companies, including those in the testing, dyeing, printing, weaving, knitting, underwear and garment sectors.

There are more than 2,000 women’s swimwear manufacturers in China. Many also produce men’s and children’s bathing suits, sports- and underwear, and rashguards.

Fifty percent of the supplier base is composed of small factories. Midrange businesses make up 30 percent, while the rest are large enterprises.

Because of the decline in sales in 2009, companies are hesitant to expand operations. Exports from January to November dropped consistently, resulting in the 11 percent YoY decline in revenue, totaling $539 million. Volume shipment fell 16 percent as well to reach just over 236 million pieces. Outbound orders, however, climbed 1 percent in December amid signs of economic recovery.

The EU and the US are the top overseas destinations. The first accounts for 45 percent of exports, while the last represents 20 percent.

Production hubs
Products & prices

	This bikini set from Fujian Binhui comes in 82:18 nylon-spandex. It includes a triangle top and a side-tie bottom.

Guangdong, Fujian, Zhejiang, Jiangsu and Liaoning provinces are the key women’s swimwear sourcing centers in China.

The first hosts nearly 1,000 makers, contributing more than half to the country’s shipments in the line. The area offers midrange and high-end models.

The majority of factories are located in Dongguan, Shenzhen, Guangzhou and Shunde.

Fujian companies are mostly found in Quanzhou, Jinjiang, Fuzhou and Xiamen. There are about 300 plants focusing on low-end and midrange releases. Exports represent 15 percent of China’s total overseas sales.

Suppliers in Fujian also carry swimsuit coverups and rashguards in their selections.

Yiwu, Dongyang and Ningbo are the key production cities in Zhejiang. The majority of manufacturers are small and midsize, with low-end and midrange OEM orders dominating shipments. Further, the province boasts a strong accessories industry.

Meanwhile, there are roughly 400 makers in Jiangsu, concentrated in Changshu and Nanjing. The area is backed by a mature fabric supply network.

Lastly, Liaoning accounts for 5 percent of the country’s output for the line. There are more than 100 factories found mainly in Huludao.

Most Liaoning companies are private locally owned, and focus on midrange and high-end variants. In-house brands take up the bulk of exports.

Women’s swimwear from China comes in various styles, including monokinis, tankinis, bikinis and maillots.

The first three are the most popular, particularly in the US and Europe. These models adopt light colors for the suit and brighter contrasting hues for the printed patterns. Releases generally have neck- and back-tie closures, and removable padded cups.

The latest monokinis come in 82:18 nylon-spandex and have zipper closures running down the middle for easier wearing.

Further, some pieces resemble evening wear. One version is backless and has no padded cups. The front portion has two wide straps with pleats connecting the top to the side-tie bikini bottom.

Recent tankinis are embroidered along the neckline and waist. Other designs adopt printed tops paired with solid-color bottoms.

Women’s swimwear models can have matching skirts, slippers or hats.

The lines are usually in nylon or polyester mixed with spandex or Lycra. They are also UV- and chlorine-resistant.

Releases are embellished with ribbons, beads, rhinestones, sequins, shells, embroidery, or plastic or metal rings. Patterns are dyed or printed.

As regards R&D, although OEM orders continue to dominate exports, more suppliers are investing up to 10 percent of total sales in maintaining design teams and creating new samples.

In particular, makers are hiring part-time specialists to help market in-house brands and turn out on-trend swimwear. Companies targeting different countries, in fact, can release upscale variants catering to specific skin tones.

The current focus for most factories is improved styles, including the latest colors, structures and fit. Other plants center on enhanced printing techniques and fabric features.

Prices of women’s swimwear are from $1.50 to $30, depending on the materials used and the complexity of designs. Low-end models are $1.50 to $3, while midrange ones are $3.50 to $6. Upscale versions are $7 to $30.

Less expensive releases utilize polyester. They are lightweight and come in solid hues. High-end lines, meanwhile, adopt imported fabrics weighing 200gsm. The textiles have stronger elasticity and utilize bright tones. These cost $10 to $35 per meter depending on the color complexity.

Suppliers expect prices to increase 2 to 10 percent in the next six months amid rising material outlay. The former, in fact, went up 6 percent last year.