China Is About to Overtake the USA to Become the Largest Clothing Market

With 39 percent market share in 2016, China becomes the world’s largest textile producer and exporter, according to the survey. In 2015, exports reached $ 284 billion dollars, mainly for the American market. However, this kind of situation is changing, because China is about to be ahead of America with the expectation to become the world’s largest clothing market in 2017. According to PwC study, the Chinese market, because of middle-class expansion, will account for one-third of the total Asian demand. That equals to the European market and North America market.

The huge growth of the clothing market and textile market in China is due to the vitality of e-commerce in China. In 2013, China surpassed the US as the world’s largest digital retail market, and clothing is the first product categories sold online.

Even if the American clothing market and the Chinese one continue to grow, their pace is completely different.

Since 2011, the American clothing market growth has averaged around 3% per year. In comparison, the Chinese market seems to be more dynamic. Over the last five years, the average growth of the market is 10% per year. In 2014,the growth even jumps to 18%.

At this pace, China has caught up promptly the American market. In 2012, 91 billion dollars separated those markets. It is estimated that the American profit will be high above 10 billion in 2016. According to these dynamics, the American market is going to lose his first place in 2017.

The Chinese clothing market tremendous growth is based on the infrastructures development, which makes the sales development possible on the internet. The growth is also maintained by the rise of a Chinese middle class who supports Chinese consumption.

This digitalization is the true growth lever of the Chinese clothing market. According to the prediction, in 2016 the share of online sales will be 40% of the global Chinese clothing market. On the American market, this share will reduce to 20%.

The growth rates comparison of the domestic clothing markets in the US and China from 2012 to 2016 is especially  informative. The American market growth over this period is just 22.5%, whereas Chinese growth amounted to 187.5%.  Even considering the the absolute value, the American clothing market is hit by the Chinese market. In 2015 the total online clothing sales amounted to 64 billion dollars, while the Chinese market achieves 115 billion dollars. In 2017, it is expected that Chinese online clothing market will be triple as big as the American market.

We estimate that the Chinese clothing market will be able to support its growth level for some years due to the economic trend and the Chinese population.

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