China's baby and children's wear exports are expected to increase 20 percent by the end of 2010. Recent export figures indicate suppliers are on track to meet this growth rate. The country's garment shipments for the first quarter of the year rose 8 percent to $21 billion worth, while overseas revenue from footwear grew 15 percent to $7.2 billion. The data includes sales of men's and women's models, approximately 30 percent of which represents designs for users up to 12 years old.

Escalating labor and material expenditure, however, is threatening profitability. Various measures are being employed to sidestep such increases. Keeping outlay low helps maintain competitive pricing and protect net gains.

Some companies are upgrading machinery to compensate for a leaner team, while others are relocating factories to inland provinces such as Anhui, Jiangxi and Sichuan to sidestep the worker deficit in the coastal areas.

This report covers: baby and children's coats, jackets, vests, cardigans, sweaters, pullovers, shirts, blouses, shorts, pants, skirts, dresses, bodysuits, undergarments, nightclothes, swimsuits, fashion accessories and footwear.