Low-cost manufacturing made China the second largest economy in the world. But rising labor costs, rapid socio-economic progress, and improvement in living standards have led the country to shift from apparel manufacturing to capital-intensive industries. Made in China 2025 is a plan to transform the country into a high-tech powerhouse that dominates industries like robotics, advanced information technology, aviation, and new energy vehicles.

Moreover, the One Belt One Road initiative -- which involves infrastructure investments worth $2 trillion -- will give Chinese garment manufacturers fresh relevance. For example, new rail links will shorten transport times to Europe, and the initiative will increase China’s access to Africa’s growing consumer markets.

As Chinese apparel manufacturers ramp up their outbound investment in countries such as Vietnam and Ethiopia, they may enhance their roles in global apparel sourcing, producing on a larger scale beyond their home market. Finally, the Chinese garment sector is leading the push for greater efficiency with the adoption of digitization and automation.

Digitization can unlock progress that go beyond replacing manual processes. For example, advanced analytics -- whether applied in capacity planning, country and supplier selection, or intelligence -- will help achieve the right balance between speed, agility, and cost.