Why Chinese textile products are so cheap and quality is not lower than others.

The answer to this question can’t be in a couple of sentences, so will try to look at key factors that affect textile products cost and quality.

• The main and key material in textile production is cotton.

Cotton Growing is the biggest industry in the Chinese economy. China grows one of the biggest amounts of cotton every year, but it is not on the list of top cotton exporters, why? Because China instead of exporting the raw material exports products made from cotton.

China is the biggest cotton grower in the world with 3.4 million hectares and this industry’s value is more than $15bn, 93,200,000 people work in this industry. So, it is clear that cotton is grown locally and it is cheap and of course, this will affect the pricing of the product.

• Chinese cotton is the 2^nd best cotton in the world in terms of quality.

In 2013 China changed own cotton growing strategy and began to grow more, and spending less amount of area. This strategy supposed to save area to grow more cotton, but this plan worked so, the quality of grown plants also improved.

• Chinese people historically tried to buy and produce cheap and effective products.

When people in other countries tried to make their brands famous with advertisement, Chinese producers were making money on cheap but effective products in rural areas. They don’t spend a lot of money on advertisement as other their western colleges.  Of course, less spending means cheaper product.

• Government’s support

During pandemic Chinese small businessmen got the biggest support from the government. People took credits for several years without any kind of percent, which was the real support. Some fields of business were free of tax, so these kinds of helps boosted the economy again and affected in the pricing of clothes.

• Competition between small businesses.

In China, more than 98.64% of all firms are small businesses with 300 or fewer employees, contributing to over 60% of total GDP, 50% of tax income, 75% of job creation and 68% of exports. In 2018, new business creation reached record highs with a total of 67.0 million new companies being created, up by 10.4% compared to 2017. All these small companies create a comfortable opportunity to make the cost cheaper and improve the quality of product.

• Is importing textile products from China to the EU, the USA or other country profitable?

Do you need a short answer? Definitely, yes. It is worth and most businessmen do that. Lots of European brands import Chinese products and retail them. If you need any kind of help with importing any kind of product, don’t hesitate and contact us.