Cutthroat competition is forcing China's garment industry to invest in robots to raise the bottom line.

Clothing factories have installed high-tech machines from Germany, Italy, the U.S. and Japan, along with domestic products, in an attempt to keep up with cheaper rivals in Asia.

Dongguang, in southern Guangdong province, is known as the capital of China's garment industry. Last year, the city's 520 manufacturers exported $7.5 billion worth of apparel products and fashion accessories, according to Huangpu Customs.

The figure represents a 3.8 percent rise compared with 2013, but it is a far cry from 2008 when the city shipped goods worth $113 billion.

To retain global market share, companies have increased investment and trimmed the fat.

"High-end garment machines are becoming popular with factory owners because they reduce spending on training skilled workers," said Chen Yaohua, chairman of the Dongguan Textile and Garment Industry Association.

"Most factories have installed large-scale machines imported from Germany, Italy, the U.S. and Japan along with homegrown robotic technology."

Even so, the sector still has more than 13,600 vacancies for unskilled workers, according to Li Ganqiu, a spokesman for the city's economic development department.

"Although nearly all the garment factories in the city are equipped with different types of machines and levels of technology, many are still short of hands," he said.

Salaries have become a problem. The average monthly income of a garment factory worker soared to about 3,200 yuan ($520) in March, up 12 percent compared with the same period last year. This has come at a time when cheaper products are rolling off production lines in India, Pakistan, Vietnam, Cambodia and Bangladesh.

To remain competitive, the labor-intensive industry has turned to technology. Garment-making machines mean fewer workers, cutting costs by 40 percent and boosting productivity by 40 percent.

"By introducing robots in workshops, a medium-sized factory can bring down its labor force from 1,200 to 800," he said. "It can also help prevent waste and improve manufacturing accuracy."

In the past two years, factories have gradually upgraded their technology as salaries have climbed, creating business opportunities for enterprises such as Dongguan Humen International Garment Machinery Market, which since 2010 has invested almost 110 million yuan in the sector.

"Although still in the early stages, this shift could indicate a deeper economic motivation, as it comes at a critical time when garment factory owners are depending on machines to boost production," said Yu Changyan, managing director of Huifeng Industry, the parent company.

Sixteen companies including Sanflag Fashion, Joneaa Jeans and Hong Kong Sky Max Garment are involved in the high-tech automation of the clothing industry in Dongguan.

Each sells a comprehensive range of equipment, from high-speed sewing machines and printing and laser-cutting technology to advanced production lines. Almost 80 percent deal with Chinese brands, while the rest have expanded their reach to foreign companies. Most not only sell machines, but also lease them out.

The customer base has also expanded to include firms from India, Pakistan, Vietnam and Cambodia. Last year, Dongguan Humen International sold 102 million yuan worth of machines to domestic and foreign clients.