Sunbridge Has China Clothing Covered

Sunbridge Has China Clothing Covered - by Tim Morris, Float Watch, The Australian (3rd September 2013)

Turning over $19 billion a year, Australia's apparel retailers are presently challenged for growth.

While the industry's rate of expansion has averaged between 4 and 5 percent over two decades, the past five years has witnessed turnover growth of just 1 percent per annum. The slowdown in consumption has coincided with a contraction in domestically manufactured goods. From more than $3bn in 1993, the value of locally produced textile, leather, clothing and footwear has more than halved over the past two decades.

Activity has shifted to China, which, after establishing itself as a low-cost manufacturing centre, is now a massive consumer market in its own right.
Since 2007, China's retail apparel sales have surged in the order of 20 percent a year. Amid a relatively stable pricing regime, genuine consumption has driven the growth. Whereas Australians commit approximately 2 percent of their disposable income towards apparel purchases, China's per capita spending increases average 11 percent in urban areas and 7 percent in rural populations.

For the past 15 years, Sunbridge Group has been capturing China's consumption trend. It designs and distributes casual menswear clothing in China with the Pandist and Aqueseadan brands. The company's products target middle-class, white-collar males between 20 and 50 years old, and are sold primarily on a wholesale basis through 17 distributors operating more than 400 shops in China. Production is outsourced to local manufacturers...

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