Women's jeans

	Model GXR09-MJ002 from Guangzhou Textiles comes in a straight-cut design and has a PU-printed pattern.

As shipments to traditional destinations decline, makers shift their focus to emerging economies such as Russia and the Middle East.

Faced with several growth-hindering challenges, manufacturers of denim garments in China are adopting various measures to stay competitive.

Orders from key markets slowed following the global financial downturn. Export volume for men’s jeans, for instance, dropped 8 percent YoY to 307 million pairs between January and June 2009.

Furthermore, higher production outlay is compounding suppliers’ difficulties. The country’s price advantage has been weakened with the implementation of the Labor Contract Law in January 2008. Makers were compelled to increase employee compensation by 15 to 30 percent and improve their working conditions, consequently raising prices by 3 to 5 percent.

This has prompted buyers to source from alternative hubs such as Vietnam, Indonesia, India, Pakistan, Bangladesh and Argentina, where labor costs remain relatively low.

While China manufacturers have an advantage in terms of fabric and trimming options, and the quality of tailoring and other processes, makers in other countries are gaining an edge pricewise.

To recover, if not boost, profit margins, most companies are exploring nontraditional shipping destinations where demand for denim garments is high. These include Russia and the Middle East.

On the other hand, those unwilling or incapable of competing with manufacturers abroad focus on domestic sales instead.

Amid these challenges, the higher export tax rebate brought some relief to suppliers, giving them more room to negotiate prices with clients.

Cost savings resulting from the discount are passed on to buyers in the form of reduced quotes.

	G&F is offering the W-Jean-02 model, women's capri pants in pure cotton. Navy blue and ash gray versions are available.

Although bleak economic conditions forced more than 500 denim garment suppliers in China to cease operations, the line still has about 5,500 manufacturers and 3,000 trading companies engaged in exports. Most are locally owned private enterprises, with only 10 percent receiving foreign investment.

In spite of lower labor costs inland, the majority prefers establishing factories in coastal cities because there are more skilled workers in these economically developed areas.

Small and midsize makers dominate the industry. The former typically have 50 to 100 workers. Between five and 10 people are assigned to handle quality management.

The R&D team consists of three to five members who prepare garment patterns and samples.

Small manufacturers focus on low-end OEM models priced at $3 to $7 each. They can complete 100,000 garments annually, with monthly output reaching 10,000 pieces. Overall sales usually do not exceed $500,000.

Production is carried out in workshops occupying a maximum of 1,000sqm. Cutting, sewing and trimming application are performed in-house. Washing, on the other hand, is subcontracted to specialist factories.

The same manufacturing procedures are adopted by midsize suppliers, which have 5,000 to 10,000sqm plants with an annual capacity of 1 million to 5 million pieces. Monthly output is between 10,000 and 500,000 garments.

Of the 500 full-time employees, 10 to 50 workers are in charge of QC, while a 10-member group handles product development.

Companies under this category boast stronger R&D capability, allowing them to meet OEM requirements and offer their own designs.

Exports account for more than half of total annual sales, which reach $1 million to $10 million. Midrange and high-end garments between $7 and $10 are emphasized. Low-end products are made on request.

Large enterprises operate 100,000sqm factories with 1,000 to 1,500 workers. There are about 100 QC specialists checking the garments for colorfastness, wear resistance, size mismatching, shrinkage, breakage, puckering and other sewing defects.

The R&D team can have as many as 30 people. In-house facilities are utilized to develop washing and finishing techniques.

All production processes are carried out internally. Low-quantity orders, however, are often subcontracted to small or midsize partner companies for cost efficiency.

With monthly and annual capacity of 1 million and 10 million pieces, respectively, large makers can generate overall sales of $10 million to $100 million each year. They also offer other types of apparel.

China manufacturers typically employ denim in pure, combed and carded cotton versions. The material is sometimes blended with Lycra or Tencel for improved stretch.

Lightweight denim is preferred for vests, while coats, shorts and pants come in heavier types. Fabrics are sourced primarily from Shandong province.

Color contrasting or matching thread is utilized for seaming. Clothes can be reinforced by bartacking.

Makers adopt several washing and finishing methods to give garments a softer hand and better drape, or achieve a vintage or worn-out look.

Common washes include garment, bleach, enzyme, chemical, stone and monkey.

Some designs undergo sandblasting, tinting and grinding. Others feature whiskers and crinkled effects.

To enhance the aesthetic appeal of their releases, suppliers utilize various trimming application techniques such as machine embroidery and printing. They also use hot-fix stones and applique as adornment.

A number of companies achieve distressed effects via laser, which burns or decolorizes selected portions of the garment. Fleece, felt, corduroy, synthetic leather and other textiles are combined with denim to create texture.

Xintang is one of China’s key sourcing centers for denim apparel, accounting for 60 and 30 percent of aggregate output and exports, respectively. Its overall sales reach $2.9 billion annually.

Located in Zengcheng, a third-tier city in Guangdong province, the town boasts a manufacturing history that spans two decades.

The years of experience helped nurture skilled workers and designers, elevating the quality and R&D capability of companies there.

In addition, the local government provides support by promoting the latest releases to larger cities. Aiming to encourage makers to build up their own brands and designs, officials choose products from the top 50 companies to represent high-quality and reasonably priced models made in the area.

Xintang is home to about 2,000 denim garment suppliers. On average, it turns out 2 million articles of clothing per day and yields more than 200 million pieces annually.

Manufacturers offer various categories, including jackets, pants, shorts and skirts. Most releases are for the low-end and midrange markets.