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How have China’s textiles manufacturers been impacted by COVID-19?

Overall, the COVID-19 disruption has been fairly limited in Mainland China. Factories resumed operations as early as March 2020 and have continued to operate since then. That said, worker testing and regional restrictions have resulted in delays for a fair number of our customers.

Keep in mind that the textiles industry is highly interconnected. Delays caused by shutdowns in one province (or another country for that matter) can delay fabric and garment accessories deliveries – which has a direct impact on your lead times.

Is China still competitive in clothing manufacturing?

The main competitive edge of the Chinese garment industry is the fact that they have overall remained open. Some buyers were forced to shift orders back to Mainland China after their suppliers in India and Vietnam had to close down as a result of the 2021 outbreaks.

That being said, both Vietnam and India have since resumed operations.

How have the increased shipping costs affected clothing manufacturers?

Shipping costs from Asia to Europe and North America have increased by as much as 10 times. Garments, which are high in volume, are normally shipped by sea – which has resulted in profits being decimated by many brands and importers.

As a result, a significant number of our customers started buying from clothing manufacturers in Europe, Turkey, and Mexico in 2021. While it’s still more expensive to manufacture textiles in, for example, Europe compared to China, the freight rates alone drive the landed unit costs to levels that the two are comparable.

We expect this trend to continue for as long as the shipping costs remain as insanely high as they currently are.

Further, the shipping costs are not only impacting clothing manufacturers in China though. Suppliers in other Asian countries also face the same situation.

After all, it’s one of the most popular niches in ecommerce. Fashion entrepreneurs from every corner of the globe are launching new online stores every day.

If you’re looking to launch your own clothing brand, it’s important to make your brand stand out from the crowd.

The best place to start? Selling unique products.

Find unique products – including apparel and accessories – at Handshake, a wholesale marketplace where you can connect with trustworthy suppliers, with high-quality products.

Of course, the challenge is finding those unique products. That’s why many entrepreneurs opt to create their own products instead.

Choosing what clothes to supply and to which types of customers can be tough decisions. Fortunately, there’s plenty of guidance to help you start this process.

If you’re an entrepreneur who wants to launch your own clothing business with custom products, you’ll need your own designs. What’s more, you’ll also likely need to work with a clothing manufacturer to turn these designs into products.

If you’re just getting started with your business, it’s important to know that working with a clothing producer can be a risk – both financially and with regards to your time.

Of course, there can also be huge rewards. But be sure to weigh out your options before you make your decision.

Here’s a quick list of the pros of working with a clothing manufacturer:

• You have the creative freedom to produce the type of clothing that you want.
• You are able to build a brand image.
• You have more control over marketing.

One big consideration is that you’ll need to place bulk orders for your inventory. That means you’ll receive a large number of products that you’ll need to store and manage yourself

For many, this works out just fine – but there’s the risk that it could eat away at valuable business funds if you’re starting out on a shoestring budget.

This isn’t a problem if you find your audience likes the clothing you’ve created, but there’s no guarantee that this will be the case.

This is an issue that even the biggest retailers face. The only difference is that they can afford to absorb some of the losses if their clothing doesn’t hit the ground running.

If you don’t quite feel ready to take these risks, dropshipping is another way to start a clothing store – but with some extra padding.

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