Overview of Clothing Production Industry

The Clothing Production industry is a major contributor to the economies of many countries. The industry for Ready Made Garments has been criticized by labor advocates for the use of sweatshops, piece work and child labor.

Working conditions in low-cost countries have received critical media coverage, especially in the aftermath of large scale disasters like the 2013 Savar building collapse or the Triangle Shirtwaist Factory fire.

In 2016, the largest apparel exporting nations were China ($161 billion), Bangladesh ($28 billion), Vietnam ($25 billion), India ($18 billion), Hong Kong ($16 billion), Turkey ($15 billion) and Indonesia ($7 billion).[1] By 2025, it is projected that the United States market will be worth $385 billion.[2] It is also projected that the e-commerce revenue will be worth $146 billion in the United States by 2023.[3]

Production in developing countries
See also: Bangladesh textile industry, Textile industry of China, Textile industry in India, and Textile industry in Pakistan
The worldwide market for textiles and apparel exports in 2013 according to United Nations Commodity Trade Statistics Database stood at $772 billion.[4]

In 2016, the largest Clothing Production Manufacturer exporting nations were China ($161 billion), Bangladesh ($28 billion), Vietnam ($25 billion), India ($18 billion), Hong Kong ($16 billion), Turkey ($15 billion) and Indonesia ($7 billion).[5]

Pakistan
The textile and garment sector accounts for 70% of Pakistan’s exports, but the working conditions of workers are deplorable. Small manufacturing workshops generally do not sign employment contracts, do not respect the minimum wage and sometimes employ children. Violations of labour law also occur among major subcontractors of international brands, where workers may be beaten, insulted by their superiors or paid below the minimum wage. Factories do not comply with safety standards, leading to accidents: in 2012, 255 workers died in a fire at a Karachi factory. With 547 labour inspectors in Pakistan supervising the country’s 300,000 factories, the textile industry is out of control. Nor are workers protected by trade unions, which are prohibited in industrial export zones. Elsewhere, “workers involved in the creation of trade unions are victims of violence, intimidation, threats or dismissals”.[6]

Bangladesh
Many Western multinationals use labour in Bangladesh, which is one of the cheapest in the world: 30 euros per month compared to 150 or 200 in China. In April 2013, at least 1,135 garment factory workers died in the collapse of the Rana Plaza garment factory, Dhaka. Other fatal accidents due to unsanitary factories have affected Bangladesh: in 2005 a factory collapsed and caused the death of 64 people. In 2006, a series of fires killed 85 people and injured 207 others. In 2010, some 30 people died of asphyxiation and burns in two serious fires.

In 2006, tens of thousands of workers mobilized in one of the country’s largest strike movements, affecting almost all of the 4,000 factories. The Bangladesh Garment Manufacturers and Exporters Association (BGMEA) uses police forces to crack down. Three workers were killed, hundreds more were wounded by bullets, or imprisoned. In 2010, after a new strike movement, nearly 1,000 people were injured among workers as a result of the repression. [7]

Ethiopia
Employees of Ethiopian garment factories, who work for brands such as Guess, H&M or Calvin Klein, receive a monthly salary of 26 dollars per month. These very low wages have led to low productivity, frequent strikes and high turnover. Some factories have replaced all their employees on average every 12 months, according to the 2019 report of the Stern Centre for Business and Human Rights at New York University.

The report states:” Rather than the docile and cheap labour force promoted in Ethiopia, foreign-based suppliers have met employees who are unhappy with their pay and living conditions and who want to protest more and more by stopping work or even quitting. In their eagerness to create a “made in Ethiopia” brand, the government, global brands and foreign manufacturers did not anticipate that the base salary was simply too low for workers to make a living from

Summary of 20 foreign Clothing Retailers in the third quarter of 2019

Inditex group, the parent company of Zara, reports results for its fiscal third quarter (February 1, 2019 – October 31, 2019). Net sales for the period were 19.82 billion euros ($22 billion), compared with 18.437 billion euros a year earlier. Operating profit for the period was 3.548 billion euros, compared with 3.07 billion euros a year earlier. Net profit for the period was 2.72 billion euros, compared with 2.438 billion euros a year earlier.Clothing Production Manufacturer.

H&Mgroup (H&Mgroup, Hennes&MauritzAB) announces results for the first nine months of its fiscal year (December 1, 2018, solstice, August 31, 2019). Net sales in the third quarter were 62.572 billion Swedish kronor ($6.6 billion), compared with 55.821 billion a year earlier. Operating profit for the period was 5.029 billion Swedish kronor, compared with 3.976 billion a year earlier. Net profit for the period was 3.859 billion Swedish kronor, compared with 3.099 billion a year earlier. Net sales for the first nine months were 171.061 billion Swedish kronor ($18 billion), up from 153.986 billion a year earlier. Operating profit for the period was 11.969 billion Swedish kronor, compared with 11.191 billion a year earlier. Net profit for the period was 9.231 billion kronor, compared with 9.109 billion a year earlier.

In its consolidated financial results for the fiscal year 2019 (September 2018 to August 2019), FastRetailing reported a 7.5 percent increase in sales to 2.2905 billion yen ($21.1 billion) and a 5.0 percent increase in net profit to 162.5 billion yen, both records. Strong sales in China and southeast Asia have helped the “overseas uniqlo business” surpass y1,000bn in sales for the first time. The operating profit, which reflects the profitability of the main business, is also higher than that of the “domestic uniqlo business”.

Gap,Inc. Net sales for the quarter were $3.998 billion, compared with $4.089 billion a year earlier. Net income for the quarter was $140m, compared with $266m a year earlier.

Microsoft corp. reported results for its fiscal second quarter ended Sept. 28. Net revenue for the quarter was $3.393 billion, compared with $3.219 billion a year earlier. Net income for the quarter was $649 million, compared with $507 million a year earlier.

Victoria’s secret parent LBrands reports third-quarter results. Net losses widened nearly sixfold during the reporting period to $252m from $42.8m a year earlier; Net sales fell 4 per cent to $2.67bn, while same-store sales fell 2 per cent. Of that, the Victoria’s secret brand reported sales of $1.412 billion, compared with $1.529 billion in the same period last year, a 2% decline in comparable sales.

Apparel maker HanesbrandsInc reported results for its fiscal third quarter ended Sept. 28. Net sales for the quarter were $1.867 billion, compared with $1.849 billion a year earlier. Net income for the quarter was $188 million, compared with $171 million a year earlier.

LeviStrauss&Co., the company’s parent, reported third-quarter results for the period ended Aug. 25. Net revenue for the quarter was $1.447 billion, compared with $1.394 billion a year earlier. Net income for the quarter was $124 million, compared with $130 million a year earlier. This included $771m in the americas, $463m in Europe and $213m in Asia.

Apparel retailer AEO reported results for its fiscal third quarter ended Nov. 2. Net revenue for the quarter was $1.066 billion, compared with $1.004 billion a year earlier. Net income for the quarter was $80.76 million, compared with $85.47 million a year earlier.

KontoorBrands,Inc., the owner of Lee and Wrangler denim brands, which is being spun off from whitfield, reported results for the third quarter of 2019. Net revenue for the quarter was $638 million, compared with $704 million a year earlier. Net income for the quarter was $14.5 million, compared with $71.02 million a year earlier.

Apparel retailer GuessInc reported results for its fiscal third quarter ended Nov. 2. Net sales for the quarter were $616 million, compared with $605 million a year earlier. Net income for the quarter was $12.42m, compared with a net loss of $13.44m a year earlier.

NIKE Inc. ‘s first-quarter fiscal 2020 revenue beat Wall Street expectations, helped by its strategy of selling sneakers and apparel directly to consumers. The world’s largest sportswear maker reported revenue of $10.66bn in the first quarter ended August 31, up from $9.948bn in the same period a year earlier. Greater China revenue of $1.68bn, up 22 per cent year on year; Revenue in North America was $4.29bn, up 3.6 per cent year on year. Net income for the quarter was $1.367 billion, compared with $1.092 billion a year earlier.

Adidas results for the third quarter of 2019. In euro terms, third-quarter sales rose 9 percent to 6.41 billion euros ($7.1 billion) from 5.873 billion euros in the same period in 2018. Excluding currency, revenue rose 6% in the third quarter. Adidas also posted a 6 percent increase in revenue. Excluding currency, reebok brand sales rose 2 per cent. Revenue growth was driven by a combination of all sales channels, including growth in wholesale revenue and continued double-digit growth in retail.

Puma, the German sports group, reports third-quarter results for its 2019 fiscal year. Puma’s global sales rose 17% to 1.478 billion euros ($1.64 billion) during the reporting period. The Asia Pacific and americas regions recorded double-digit growth, while the Europe, Middle East and Africa regions maintained high single-digit growth. Puma’s third-quarter earnings before interest, tax, depreciation and amortisation rose to 11 per cent from 10.5 per cent last year. Net profit rose 29.7 per cent to €105m.

Athletic shoe and apparel maker under armour inc. reported results for its fiscal third quarter ended Sept. 30. Net revenue for the quarter was $1.429 billion, compared with $1.443 billion a year earlier. Net income for the quarter was $102 million, compared with $75.27 million a year earlier.

SKECHERS inc. reported results for its fiscal third quarter ended Sept. 30. Sales for the quarter were $1.354 billion, compared with $1.176 billion a year earlier. Net income for the quarter was $103m, compared with $90.7m a year earlier.

Canadian sportswear company lululemon inc. reported results for its fiscal third quarter ended Nov. 3. Net revenue for the quarter was $916 million, compared with $748 million a year earlier. Net income for the quarter was $126 million, compared with $94.41 million a year earlier.

Asics reports earnings for January to September 2019. Revenue for the period was 286.2 billion yen ($2.63 billion), compared with 295.7 billion yen a year earlier. Operating profit for the period was y12.7bn, compared with y15.4bn a year earlier. Net profit for the period was y6.9bn, compared with y8.3bn a year earlier.

Dick’s sportinggoodsinc reported results for its fiscal third quarter ended Nov. 2. Net sales for the quarter were $1.962 billion, compared with $1.857 billion a year earlier. Net income for the quarter was $57.58 million, compared with $37.83 million a year earlier.

Hongyu Clothing Production Manufacturer., a sports goods and apparel retailer, reported results for its fiscal third quarter ended Nov. 2. Sales for the quarter were $1.932 billion, compared with $1.86 billion a year earlier. Net income for the quarter was $125 million, compared with $130 million a year earlier.

Choosing the Right Clothing Production Manufacturer

Hongyu Clothing Production Manufacturer Suggest: you need to ask yourself when you’re thinking about launching your own clothing business is: “do I really need to work with a clothing manufacturer?”When you’re working with a clothing manufacturer you’ll need to place orders for your inventory in bulk.

That means you’ll receive a large number of products that you’ll need to store and manage yourself – this could eat away at valuable business funds if you’re starting on a shoestring budget.This isn’t a problem if you find that your audience likes the clothing that you’ve created, but there’s no guarantee that this will be the case, and it’s an issue that even the biggest retailers in the world face. The only difference is that they can afford to take the loss if some of their clothing doesn’t hit the ground running.

After you’ve gone through the resources above you’ll probably have quite a few potential clothing manufacturers for your business. The next step is to refine your list.

Hongyu Clothing Manufacturer advise you take into account the following:

Price

Quality

Lead Time

Delivery Time

Experience

Review

In an ideal world we always recommend going to visit the clothing manufacturer so you can review their processes and their efficiency. We know this isn’t always possible, but if you can we advise that you ask the clothing manufacturer if you can visit before you order any products. This will help you to validate your decision to work with them, and build your business relationship, which is essential in a long-term partnership. Wholesale clothing manufacturers can be the way to go if you are looking to start a small or large

clothing business. Wholesale is a great business model if you have space to store merchandise easily as you can purchase large quantities of stock for a reduced price which you can then sell to your customers at a marked up price.

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