The 2011 Import and Export Market for Embroidery in China by ICONGroup


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									   The 2011 Import and Export
    Market for Embroidery in

                         Professor Philip M. Parker, Ph. D.
                      Chaired Professor of Management Science
                    INSEAD (Singapore & Fontainebleau, France)                                      ©2011 ICON Group Ltd.

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                                About the Author
Dr. Philip M. Parker is the Eli Lilly Chaired Professor of Innovation, Business and Society at
INSEAD where he has taught courses on multivariate statistics and global competitive strategy
since 1988. He has also taught courses at MIT, Stanford University, Harvard University, UCLA,
UCSD, and the Hong Kong University of Science and Technology. He is the author of six books
on the economic convergence of nations. These books introduce the notion of “physioeconomics”
which foresees a lack of global convergence in economic behaviors due to physiological and
physiographic forces. His latest book is "Physioeconomics: The Basis for Long-Run Economic
Growth" (MIT Press 2000). He has also published numerous articles in academic journals,
including The Rand Journal of Economics, Marketing Science, the Journal of International
Business Studies, Technological Forecasting and Social Change, International Journal of
Forecasting, the European Management Journal, the European Journal of Operational
Research, Journal of Marketing, International Journal of Research in Marketing, and Journal of
Marketing Research. He is also on the editorial boards of several academic journals.

Dr. Parker received his Ph.D. in Business Economics from the Wharton School of the University
of Pennsylvania and has Masters degrees in Finance and Banking (University of Aix-Marseille)
and Managerial Economics (Wharton). His undergraduate degrees are in mathematics, biology
and economics (minor in aeronautical engineering). He has consulted and/or taught courses in
Africa, the Middle East, Asia, Latin America, North America and Europe.

                                 About this Series
This series was created for international firms who rely on foreign export markets for a
substantial portion of their business or who might be threatened by foreign trade competition.
The estimates given in this report were created using a methodology developed by and under the
direct supervision of Professor Philip M. Parker, the Eli Lilly Chaired Professor of Innovation,
Business and Society, at INSEAD. The methodology, relying on historical figures of economic
growth and trade flows, estimates the market shares of some 150 countries for over 500 industrial
or product categories. The figures should be seen as market estimates, as opposed to historical
records, as these are projected for the current year of trade.

Some of the methodologies and research approaches used in this report have benefited from the
R&D Committee at INSEAD, whose research support is gratefully acknowledged. Additional
editorial assistance from Tiffany LaRochelle, ICON Group International, Inc., is also
acknowledged.                                                    ©2011 ICON Group Ltd.

                           About ICON Group Ltd.
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                                                 Contents        v

Table of Contents
1     INTRODUCTION AND METHODOLOGY                           7
2     CHINA AND THE WORLD MARKET                             9
    2.1     Imports in China in 2011                         9
    2.2     Exports from China in 2011                      10
3     IMPORTS IN CHINA                                      11
    3.1      Asia                                           11
       3.1.1   Hong Kong                                    11
       3.1.2   Japan                                        12
       3.1.3   North Korea                                  12
       3.1.4   South Korea                                  13
       3.1.5   Taiwan                                       14
       3.1.6   Thailand                                     15
       3.1.7   Vietnam                                      16
    3.2      Europe                                         17
       3.2.1   France                                       17
       3.2.2   Italy                                        18
    3.3      North America & the Caribbean                  19
       3.3.1   the United States                            19
4     EXPORTS FROM CHINA                                    20
    4.1      Africa                                         20
       4.1.1   Benin                                        20
       4.1.2   Mauritius                                    20
       4.1.3   Morocco                                      21
       4.1.4   Senegal                                      22
       4.1.5   South Africa                                 22
       4.1.6   Sudan                                        23
    4.2      Asia                                           23
       4.2.1   China                                        23
       4.2.2   Hong Kong                                    24
       4.2.3   India                                        25
       4.2.4   Indonesia                                    25
       4.2.5   Japan                                        26
       4.2.6   Malaysia                                     27
       4.2.7   Philippines                                  27
       4.2.8   Singapore                                    28
       4.2.9   South Korea                                  29
       4.2.10 Thailand                                      30
    4.3      Europe                                         31
       4.3.1   Austria                                      31
       4.3.2   Belgium                                      32
       4.3.3   Bulgaria                                     33
       4.3.4   Croatia                                      33
       4.3.5   Cyprus                                       34
       4.3.6   Denmark                                      34
       4.3.7   Finland                                      35
       4.3.8   France                                       36
       4.3.9   Germany                                      37
       4.3.10 Greece                                        38                      ©2011 ICON Group Ltd.
                                                           Contents        vi

       4.3.11 Hungary                                                 39
       4.3.12 Ireland                                                 39
       4.3.13 Italy                                                   40
       4.3.14 Macedonia                                               41
       4.3.15 Moldova                                                 41
       4.3.16 Norway                                                  42
       4.3.17 Poland                                                  43
       4.3.18 Romania                                                 44
       4.3.19 Russia                                                  44
       4.3.20 Slovakia                                                45
       4.3.21 Spain                                                   46
       4.3.22 Sweden                                                  47
       4.3.23 Switzerland                                             48
       4.3.24 the Netherlands                                         49
       4.3.25 the United Kingdom                                      50
       4.3.26 Ukraine                                                 51
    4.4      Latin America                                            51
       4.4.1    Argentina                                             51
       4.4.2    Brazil                                                52
       4.4.3    Colombia                                              52
       4.4.4    Ecuador                                               53
       4.4.5    Guatemala                                             53
       4.4.6    Mexico                                                54
       4.4.7    Peru                                                  55
    4.5      North America & the Caribbean                            56
       4.5.1    Canada                                                56
       4.5.2    the United States                                     57
       4.5.3    Trinidad and Tobago                                   58
    4.6      Oceana                                                   58
       4.6.1    Australia                                             58
       4.6.2    New Zealand                                           59
    4.7      the Middle East                                          60
       4.7.1    Israel                                                60
       4.7.2    Jordan                                                60
       4.7.3    Oman                                                  61
       4.7.4    Saudi Arabia                                          61
       4.7.5    Turkey                                                62
    5.1    Disclaimers & Safe Harbor                                  63
    5.2    ICON Group Ltd. User Agreement Provisions                  64                                ©2011 ICON Group Ltd.
                                                                       Embroidery in China         7

On the demand side, exporters and strategic planners focusing on embroidery in China face a
number of questions. Which countries are supplying embroidery to China? How important is
China compared to others in terms of the entire global and regional market? How much do the
imports of embroidery vary from one country of origin to another in China? On the supply side,
China also exports embroidery. Which countries receive the most exports from China? How are
these exports concentrated across buyers? What is the value of these exports and which countries
are the largest buyers?

This report was created for strategic planners, international marketing executives and
import/export managers who are concerned with the market for embroidery in China. With the
globalization of this market, managers can no longer be contented with a local view. Nor can
managers be contented with out-of-date statistics which appear several years after the fact. I have
developed a methodology, based on macroeconomic and trade models, to estimate the market for
embroidery for those countries serving China via exports, or supplying from China via imports.
It does so for the current year based on a variety of key historical indicators and econometric

In what follows, Chapter 2 begins by summarizing where China fits into the world market for
imported and exported embroidery. The total level of imports and exports on a worldwide basis,
and those for China in particular, is estimated using a model which aggregates across over 150
key country markets and projects these to the current year. From there, each country represents a
percent of the world market. This market is served from a number of competitive countries of
origin. Based on both demand- and supply-side dynamics, market shares by country of origin are
then calculated across each country market destination. These shares lead to a volume of import
and export values for each country and are aggregated to regional and world totals. In doing so,
we are able to obtain maximum likelihood estimates of both the value of each market and the
share that China is likely to receive this year. From these figures, rankings are calculated to allow
managers to prioritize China compared to other major country markets. In this way, all the
figures provided in this report are forecasts that can be combined with internal information
sources for strategic planning purposes.

After the worldwide summary in Chapter 2 of both imports and exports of embroidery, Chapter 3
goes into detail on imports, but for each major country of origin serving China. A “major”
market is defined as a country where China represents a substantially large share of either imports
or exports. For each major country exporting to China, one can thus observe how important
China is to that exporting country compared to other countries of the world. Chapter 4 does the
same, but for exports of embroidery originating from China, for each major country of
destination. In doing so, one can discover the share that China has in each major market; this
share value is often used as a measure of competitiveness for China. In all cases, the total dollar
volume and percentage share values by major trading partner are provided. Combined, Chapters
3 and 4 present a the total picture for imports and exports of embroidery to and from China to and                                                       ©2011 ICON Group Ltd.
                                                                        Embroidery in China         8

from all other major countries in the world. "Embroidery" as a category is defined in this report
following the definition given by the United Nations Statistics Division Classification Registry
using the Standard International Trade Classification, Revision 3 (SITC, Rev. 3). The SITC code
that defined "embroidery" is 6565 . For more information on this definition, please refer to the
following web site: .

This report is updated on an annual basis. To ensure that you have the most current version,
please check the web site of ICON Group at

Important Caveat. The figures should be seen as market estimates, as opposed to historical
records, as these are forecasted for the current year of trade. More importantly, in light of the fact
that unforeseeable factors might interrupt markets in achieving their reported levels, the figures
should be seen as estimates of potential. For example, "mad cow" disease, foot-and-mouth
disease, trade embargoes, military conflicts, acts of terrorism and other events will certainly
affect the actual trade flows recorded for a variety of industry or product categories. In such
cases, the difference between the numbers given in this report and the numbers actually observed
might be interpreted as the "net loss" or "net gain" due to these exogenous events affecting
regular trade flows that would have occurred had these events not have taken place.                                                       ©2011 ICON Group Ltd.
                                                                           Embroidery in China          9

2.1         IMPORTS IN CHINA IN 2011
                             Imported Embroidery in China, 2011
                              (Structure of Foreign Import Competition)

Country of Origin             Rank         Value (000 US$)              % Share        Cumulative %
South Korea                       1                     9,403               40.12                 40.12
Japan                             2                     6,865               29.29                 69.40
Taiwan                            3                     2,464               10.51                 79.91
Hong Kong                         4                     2,045                8.72                 88.64
Thailand                          5                     1,224                5.22                 93.86
China                             6                       931                3.97                 97.83
Italy                             7                       295                1.26                 99.09
France                            8                       128                0.55                 99.64
the United States                 9                        61                0.26                 99.90
Vietnam                          10                        17                0.07                 99.97
North Korea                      11                         7                0.03                100.00
Total                                                  23,440              100.00                100.00
    Source: Philip M. PARKER, Professor, INSEAD, copyright 2011,                                                          ©2011 ICON Group Ltd.
                                                                           Embroidery in China        10

2.2         EXPORTS FROM CHINA IN 2011
                            Embroidery Exports from China, 2011
Country of Destination        Rank         Value (000 US$)              % Share        Cumulative %
the United States                 1                   95,146                21.07                 21.07
Hong Kong                         2                   43,809                 9.7
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