The outerwear and knitwear hub boasts proximity to major sea- and airports, and improved roadways.

Backed by an advantageous location and a strong transport system, Jiangsu province continues to be a key sourcing center for outerwear and knitwear in China.

	This girl's coat from Great-Tone is made of 60:40 polyester-wool.

Situated in the Yangtze River Delta region, the hub covers 30 percent of the waterway’s major ports. These include Lianyungang, Suzhou, Nantong, Zhangjiagang and Nanjing. The manufacturing base also has access to the Yellow Sea on the eastern border, and the Beijing-Hangzhou Grand Canal, which runs through it.

Apart from trading docks, the province’s infrastructure comprises eight civil airports. They are located in Wuxi, Lianyungang, Nanjing, Suzhou, Changzhou, Nantong, Yancheng and Xuzhou.

Two of China’s important railways, namely the Beijing-Shanghai and the Lianyungang-Lanzhou routes, also pass through the province. Express trains from Nanjing to Shanghai and Hangzhou are available as well.

Further, Jiangsu maintains an established highway network, which reached more than 4,000km at the end of 2010. The expanded roads cut travel time from Zhangjiagang to Shanghai or Nanjing to just two hours.

In addition, the distance from Changshu to the China National Highway 204 is now less than 5km, while that to Shanghai is only up to 150km. Because of the proximity to the latter, Jiangsu makers can also leverage the city’s two international airports, three major train stations and 767.5km-long freeways easily.

In terms of production capability, companies boast years of experience in the featured categories. Although most mainstream businesses were set up in the 1990s, several large enterprises were established in the 1970s as state-owned entities before being privatized.

Outerwear and knitwear manufacturers normally conduct all processes in-house. The basic equipment used comprises cutting, sewing, embroidery and printing machines. Some may be imported from Germany or Japan. As for traders, they usually subcontract procedures to partner factories, except for fabric making.

Suppliers can usually finish samples a week after receiving clients’ specifications. They offer comprehensive sales services as well. These include QC, securing insurance, export documentation and shipping.

The industry is primarily OEM-oriented. More businesses, however, are developing in-house designs to edge out the competition. Many allot up to 30 percent of production to ODM orders, while some allocate less than 10 percent for OBM models.

Despite such progress, the lack of original styles and brand recall still hinders growth. To address the situation, the Department of Commerce is encouraging large enterprises to build up their export trademarks. Several influential companies are already establishing design centers, and coordinating with international garment experts and marketing agencies.

Jiangsu exported more than $35 billion garments and textiles in 2010, with the first representing 70 to 75 percent. The aggregate value rose roughly 26 percent YoY, which is the largest increase among hubs such as Shanghai, and Zhejiang, Guangdong, Fujian and Shandong provinces.

Some businesses also ship products via Shanghai. The city’s outbound garment deliveries amounted to $46.5 billion last year. An estimated 10 to 15 percent of these were from Jiangsu.

Outerwear and knitwear made up 30 percent of the featured location’s overseas apparel sales from the two hubs. Sixty percent is attributed to men’s and women’s styles, and the rest is credited to baby and children’s designs. The popular releases are winter jackets, coats and sweaters. Suppliers also offer leather, fleece and wool counterparts, cardigans and tights for infants.

Foreign revenue is forecast to increase between 10 and 20 percent in 2012 amid the gradual recovery of international markets such as the US.

A number of manufacturers have augmented prices at least 10 percent because of mounting raw material costs, particularly of cotton. Although the new harvest is projected to be larger, rates remain firm and are still double mid-2010 figures.

Compounding the situation is heightened labor spending, with many companies in the Yangtze River Delta region raising salaries 20 to 40 percent. Consequently, makers are now facing competition from other hubs such as Vietnam and India, where wages are lower.

Businesses are also dealing with the yuan appreciation. It is estimated that for every 1 percent increase in the exchange rate, profits of apparel factories drop 6 percent.

Product gallery Changshu Eastar Textile Imp. & Exp. Co. Ltd Model: 82161 MOQ: 1,000 pieces Delivery: 50 days Price: $12 Description: Children’s coat; 55:45 polyester-wool; 100% polyester lining; sizes 62 to 104; polybag packaging

Changshu Eastar Textile Imp. & Exp. Co. Ltd Model: ESG2011083000001 MOQ: 1,000 pieces Delivery: 50 days Price: $20 Description: Children’s coat; pure cotton; pure polyester lining; belted waist; plaid; custom sizes; polybag packaging

Changshu Wintex International Trade Co. Ltd Model: MJA102 MOQ: 2,000 pieces Delivery: 60 days Description: Children’s jacket; 100% polyester; zipper closure; sizes XS to XL; polybag packaging

Great-Tone International Garments Co. Ltd Model: 034 026 MOQ: 500 pieces Delivery: 90 days Description: Children’s winter coat; polyester; faux fur on collar, cuffs, hem; YKK zipper closure; sizes S to XL; polybag packaging

Great-Tone International Garments Co. Ltd Model: 102 017 MOQ: 500 pieces Delivery: 90 days Description: Children's hooded coat; 60:40 polyester-wool; polyester lining; faux fur trimming on hood; toggle closure; sizes S to XL; polybag packaging

Yixing Sainty Garments Co. Ltd Model: STJA002 MOQ: 1,000 pieces per color Description: Hooded jacket; pure cotton jersey; pure polyester padding; YKK zipper closure; ribbed hem; jersey applique, print

Zhangjiagang Guoyang Imp. & Exp. Co. Ltd Model: GYK-0048 MOQ: 800 pieces Delivery: 20 days Description: Children’s sweater; cotton; fringe trimming; in various sizes; polybag packaging

Note: This article "Jiangsu makers of children's outerwear & knitwear leverage strategic location" was originally published by Global Sources, a leading business-to-business media company and a primary facilitator of trade with China manufacturers and India suppliers, providing essential sourcing information to volume buyers through our e-magazines, trade shows and industry research.

All price quotes in this report are in US dollars unless otherwise specified. FOB prices were provided by the companies interviewed only as reference prices at the time of interview and may have changed.

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