*An image of our garment factory partner in 1997 taken by our founder, Annie Wang, in Outer Mongolia, China.*

The Rise of Fashion in China

China's rise as a global leader in fashion production can be traced back to the late 20th century. In the 1980s and 1990s, economic reforms initiated by Deng Xiaoping and China’s entrance into the World Trade Organization in 2001 allowed the country to become a manufacturing powerhouse, especially in textiles. By 2021, China accounted for nearly 40% of global apparel exports.

Initially, the country focused on low-cost production driven by its large labor force and lower operating costs. However, over the past decade, there has been a significant shift toward higher-quality, design-driven production. China's government initiatives, such as the "Made in China 2025" plan, aimed to upgrade the country’s manufacturing capabilities, promoting innovation and sustainability.

However, Chinese fashion brands are moving up the value chain, focusing on premium, design-centric goods, particularly in categories such as sportswear and luxury fashion. This evolution reflects China’s growing domestic demand for high-end products and its ambition to be a leader in both manufacturing and design on the global stage.

While China has long been a manufacturing powerhouse in the fashion industry, its fashion design sector has historically lagged behind. However, designers like Feng Chen Wang, Rui Zhou, Shushu/Tong, and Oude Wang are now making their mark on the international stage. Many of these designers are first focusing on building a strong presence domestically before branching out globally. Additionally, China's internet firewall presents challenges for Chinese brands seeking to expand their social media presence internationally, further contributing to their lower global visibility. These factors explain why Chinese fashion brands remain less familiar to global audiences.

At the same time, Chinese fashion-related businesses are taking innovative approaches to supporting the industry’s growth. A prime example is Labelhood, which showcases independent Chinese brands with bold, distinctive styles. In many ways, Labelhood resembles Dover Street Market, with its curated selection of designer goods, though it primarily focuses on Chinese designers. As the fashion scene in China continues to evolve, designers are embracing trends like guochao (国潮), a movement among younger consumers to support homegrown designers who incorporate elements of Chinese history and culture, as well as Neo-Chinese (“新中式”) aesthetics. While there remains a disconnect between China and the global fashion landscape, Chinese brands are gradually gaining international recognition.

*Shanghai Fashion Week, "New Chinese" Style. Photo Credit:* *Vogue*

Concept of Guanxi

Guanxi is a central aspect of Chinese business culture. It is a system of personal and social networks that facilitate trust, reciprocity, and mutual obligations in business dealings. In the fashion industry, this concept is particularly crucial, as building strong relationships with suppliers, manufacturers, and other partners can lead to better prices, priority production, and higher-quality goods. For example, a supplier might offer better payment terms or prioritize a client's production if they have a well-established relationship, reflecting the deep importance of Guanxi in fostering long-term business success.

*Our founder, Annie Wang, in the middle, with our early partners back in 2000 of May.*

In the fashion industry, Guanxi can significantly influence deals and partnerships. For instance, a brand that has cultivated Guanxi with a factory might secure exclusive pricing, faster production times, or preferential treatment in times of high demand. This is especially important in fast-paced sectors like fashion, where delays can lead to lost opportunities.

However, navigating Guanxi also presents challenges. Foreign companies might struggle with the cultural nuances involved, such as the expectation of reciprocal favors and the potential for ethical concerns like bribery if Guanxi is misused. Balancing these relationships while maintaining compliance with international laws, like anti-corruption regulations, is essential for businesses to succeed in China.

The roles of middlemenand factoriesare also critical in China's fashion production process. Middlemen act as intermediaries who help foreign companies navigate local factories and supply chains, leveraging their Guanxi networks to ensure smooth business operations. Factories, on the other hand, are the production hubs where goods are made, and having direct Guanxi with factories can often lead to better terms and more control over production quality.

Regional Specialization

China’s garment production industry is highly regionalized, with different areas specializing in various types of garments. Guangdong province is a powerhouse in textile production, particularly known for knitwear and jeans. In towns like Dalangzhen, over 17,000 wool-related entities operate, producing one in every six sweaters worldwide, while Xintangzhen is responsible for producing about 60% of China’s denim output, exporting globally.

Zhejiang province is renowned for silk and children’s clothing. The city of Huzhou is home to Zhili town, China’s largest children’s wear hub, which produces over 1.45 billion sets of clothing annually. This region has seen rapid growth due to its focus on low and middle-income households.

Meanwhile, Suzhou, in Jiangsu province, is famous for producing wedding dresses, with 90% of China’s wedding dress exports coming from this region. These regions not only produce large volumes but also benefit from technological advancements and well-established supply chains..

Emerging hubs are developing in central and western China as the government promotes lower-cost inland regions to balance rising labor costs along the coast. This regional diversification supports China’s continued dominance in global fashion production.

*A breakdown of China's fashion supply chain.*

For businesses looking to produce garments in China, understanding the regional specializations and building strong relationships is crucial. The country offers advantages in terms of production scale, advanced supply chains, and a skilled labor force that can handle both high-volume orders and more specialized, technical garments like sportswear. However, rising labor costs and global competition from countries like Vietnam and Bangladesh are reshaping the landscapes. Companies should also pay attention to emerging trends, such as automation in factories, which is helping to drive down costs and increase production efficiency.

As China continues to evolve, producers can benefit from leveraging the expertise available in specialized regions, ensuring not only competitive pricing but also high-quality and timely production. Whether through traditional knitwear hubs in Guangdong or silk manufacturers in Zhejiang, China remains a dynamic and essential player in global fashion production. However, businesses must stay informed about shifts in labor, technology, and regional incentives to remain competitive in this changing landscape.

About Us

garmentHERE also known as General Orient “GO” has proudly led the apparel export market. Our primary focus extends to the US, Canadian, and European markets, where we have collaborated with numerous high and medium-end brands, including Joie, BCBG, Vince, Elaine Kim, Brochu Walker, Daniel Buchler, Equipment, and many others. Over the span of a decade, our enduring partnerships have not only facilitated our growth but also cultivated lasting friendships with our clients. We prioritize quality, efficiency, and competitive pricing, ensuring your success!

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