Advertisements

YPD Region in S. Korea emerges as the Mecca of global knitwear industry

Region in S. Korea emerges as the Mecca of global knitwear industry

2014.06.20 17:

“When buyers in Los Angeles order fabrics for knitwear, it takes about two months for Chinese companies to deliver them to their office. But companies in Yangju, Pocheon and Dongducheon (YPD) in South Korea can perform the job just in a month as both the process from the beginning to shipment and transportation take two weeks respectively,” said Gwon Byung-hee, chief of a textile exporter based in Uijeongbu, Gyeonggi-do, South Korea.
YPD is emerging as the heart of the global knitwear production, as the apparel consumption pattern is shifting from woven fabrics to more luxurious knitwear especially in developed countries. The success is believed to have stemmed from the fact that YPD has about 3,000 companies specializing in each phase of the textile production such as knitting, dyeing and post-processing and the firms’ cooperation system is working very well because they are located in one hour car-ride distance. As a result, large textile fashion companies such as LG Fashion and Kolon are flocking to YPD to set up knitwear production plants and research institutions. 
Korea’s exports of woven fabrics have stagnated from $3.18 billion in 2005 to $3.17 billion in 2012, but those of knitwear have jumped 51 percent in seven years from $2.6 billion to $4 billion, according to the Korea High Tech Textile Research Institute. Korea is estimated to have gained the top 40 percent market share in the over 12 trillion won ($11.7 billion) global high-end knitwear market.
“Korea’s exports of knitwear are projected to grow to $5.7 billion in 2015 to $6.8 billion in 2025,” said Kim Sook-rae, chief of the textile institute.

 

Advertisements

About bambooinnovator
KB Kee is the Managing Editor of the Moat Report Asia (www.moatreport.com), a research service focused exclusively on highlighting undervalued wide-moat businesses in Asia; subscribers from North America, Europe, the Oceania and Asia include professional value investors with over $20 billion in asset under management in equities, some of the world’s biggest secretive global hedge fund giants, and savvy private individual investors who are lifelong learners in the art of value investing. KB has been rooted in the principles of value investing for over a decade as an analyst in Asian capital markets. He was head of research and fund manager at a Singapore-based value investment firm. As a member of the investment committee, he helped the firm’s Asia-focused equity funds significantly outperform the benchmark index. He was previously the portfolio manager for Asia-Pacific equities at Korea’s largest mutual fund company. KB has trained CEOs, entrepreneurs, CFOs, management executives in business strategy, value investing, macroeconomic and industry trends, and detecting accounting frauds in Singapore, HK and China. KB was a faculty (accounting) at SMU teaching accounting courses. KB is currently the Chief Investment Officer at an ASX-listed investment holdings company since September 2015, helping to manage the listed Asian equities investments in the Hidden Champions Fund. Disclaimer: This article is for discussion purposes only and does not constitute an offer, recommendation or solicitation to buy or sell any investments, securities, futures or options. All articles in the website reflect the personal opinions of the writer.

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s

%d bloggers like this: