Swort Analysis of China Industry

Topics: International trade, World Trade Organization, Textile manufacturing Pages: 8 (2306 words) Published: May 13, 2013
SWOT analysis of china’s textile industry


Strengths, Weaknesses, Opportunities and Threats (SWOT).
SWOT analysis is a tool for auditing an organization and its environment. It is the first stage of planning and helps marketers to focus on key issues. SWOT stands for strengths, weaknesses, opportunities, and threats. Strengths and weaknesses are internal factors. Opportunities and threats are external factors.


China's textile and apparel export trade, SW analysis of the internal environment

i) The world’s largest textile economy
CHINA’S GDP 2010-2011:
GDP (purchasing power parity): US$9.872 trillion (2010 est.) GDP global rank: #3 (behind the European Union and the U.S.) GDP, real growth rate: 10.3% (2010 est.)
GDP, per capita: US$7,400 (2010 est.)
Labor force: 819.5 million (2010 est.), #1 global ranking
Population below the poverty line: 2.8%
[ Source: CIA World Fact Book, accessed 2011 ]

In 2000, China topped Italy to become the world’s sixth-biggest economy. In 2005, China overtook France to become the fifth-largest. In 2006, it moved up again by knocking off the U.K. In 2007, China became the third-largest economy by topping Germany. [CIA World Fact Book; Fortune “China is richer, but most Chinese are still poor” Feb. 17, 2011 ]

REF:www.china-mike.com/facts-about-china/economy-investment-business-staics. ii) it became the biggest exporters of textiles and clothing; The textile industry in China posted a 23.59 percent year-on-year increase in exports to $206.53 billion in 2010, with exports topping the $200 billion mark on a recovery in demand, reports China Business News. 

Of the total, exports of textile and fabric increased by 28.44 percent to $77.05 billion while exports of apparel and accessories rose 20.88 percent to $129.48 billion. 

REF: http://news.infobanc.com/news-details/chinese-textile-exports-up-236-in-2010/112/index.htm iii)it is the largest single producer of cotton and man-made fibre. In terms of market position of foreign enterprises in China, in 2009, there were more than 35 foreign enterprises above designated size engaged in man-made fibre (fibre material) mfg. production in China, accounting for more than 20% of all man-made fibre(fibre material) mfg. enterprises across China. Foreign enterprises in China man-made fibre (fibre material) mfg. industry achieved a ratio of return on assets of more than 10%, higher than the industry average. REF: http://www.globaltrade.net/f/market-research/text/China/Chemicals-Man-Made-Fibre--Fibre-Material--Mfg.-Industry.html iv)Its textile industry accounted for 13 per cent of the workforce employed by its manufacturing sector. China is expected to be the world’s biggest manufacturing nation in 2011, when it is expected to end the U.S.’s 110-year run as the number one country in factory production. In 2009, the U.S. created 19.9% of the world’s manufacturing output, compared to China’s 18.6%. [ IHS Global Insight, a US-based economics consultancy ]

China has the world’s largest manufacturing workforce with over 112 million workers. [The Economist “The next China” July 29, 2010 ]
REF: http://www.china-mike.com/facts-about-china/manufacturing-chinese-workforce/ Despite all this wonderful progress, the Chinese textile industry is still suffering from certain weaknesses such as: WEAKENESSES:

i) Outdated and small man-made fibre manufacturing units; In recent years, capital of China's great demand for various sectors of textile and garment enterprises in the capital input, causing compression, especially in China's textile and apparel industry is in a critical period of technological upgrading, financial needs than in the past greater demands, there are still...
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