Home / Knowledge / News / Apparel/Garments / Cost pressures impacting Chinese apparel sector
Cost pressures impacting Chinese apparel sector
20
Jun '11
With rising cost pressures in China, a trend has started, which is veering major international clothing brands, towards other countries.

Global brands, like Zara, H&M and Charming have begun shifting their orders to low-cost countries like Cambodia, Bangladesh, Indonesia, Pakistan and others. Orders in large quantities have now started moving towards these countries.

A few exporters say that, as suppliers keep changing prices on a daily basis, due to frequent changes in raw material prices, it is not possible for them to do business with overseas customers.

While others aver that, since raw material prices can be held for just 10 days, it is not possible for them to service their global clients who insist on long-term orders.

For many companies, the fluctuations in prices have now become routine. The volatility in cotton prices has led to a fluctuation in prices of cotton fabrics.

For instance, the price of a particular fabric which stood at 11.5 Yuan / meter towards the end of 2010; rose 2 Yuan / meter in early 2011. A few varieties of fabrics have risen by as much as 5-20 percent in just one quarter, which has made it difficult for businesses to adjust to these frequent price changes.

Salaries of workers too are increasing steadily, due to a gradual rise in living standards. Many provinces and autonomous areas have already hiked or plan to raise their minimum wages in the current year.

A few provinces like Guangdong, Zhejiang and Jiangsu have already increased their wages by 10 percent, while a few have hiked it by over 20 percent. The direct impact of this has resulted in a higher production cost.

In other competitor countries like Pakistan and Vietnam, wages are only one-third of those prevailing in China in the textile and clothing sector, which makes them a cheaper alternative compared to China.

Bangladesh has now risen to third place after China and Turkey in global exports of garments, according to a report of World Trade Organization.

Fibre2fashion News Desk - China

Must ReadView All

Courtesy: BGMEA

Apparel/Garments | On 27th Feb 2017

'Brands & buyers should help Bangladeshi factory owners'

Brands and buyers should come forward to help factory owners in...

Apparel/Garments | On 27th Feb 2017

Myanmar sets up new committee to revise minimum wage

The Government of Myanmar has set up a new committee, replacing an...

Courtesy: PT Indonesia Taroko Textile

Textiles | On 27th Feb 2017

Taiwan's Lealea to buy Tarako textile plant in Indonesia

Taiwan based textile manufacturer Lealea Enterprise Company, one of...

Interviews View All

Smarth Bansal
Colorjet India Limited

We would like to venture more companies into the Indian market

Smita Murarka
Amanté

‘There is huge demand in the Indian lingerie market for non-wired styles.’

Divyesh Mashruwala
Akshar Industries

Surat dominates foiling, embossing and pleating

Marcel Alberts
Eurofibers

Coating at a fibre level is a practice not usually seen in the...

Johan Berlin
InvestKonsult Sweden AB

Investkonsult Sweden AB has been buying and selling second-hand textile...

Steve Cole
Xerium Technologies

Steve Cole of Xerium Technologies discusses the industry. Xerium is the...

Pranav Mishra
Huemn

Designers Pranav Mishra and Shyma Shetty’s Huemn is known for its...

Judy Frater
Somaiya Kala Vidya

Among the many honours showered on Frater, including Fulbright and Ford...

Prathyusha Garimella
Prathyusha Garimella

Hyderabad-based designer Prathyusha Garimella is known for blending...

Press Release

Press Release

Letter to Editor

Letter to Editor

RSS Feed

RSS Feed

Submit your press release on


editorial@fibre2fashion.com

Letter To Editor






(Max. 8000 char.)

Search Companies





SEARCH
February 2017

February 2017

Subscribe today and get the latest update on Textiles, Fashion, Apparel and so on.

SUBSCRIBE


Browse Our Archives

GO


eNEWS
Insights
Subscribe today and get the latest News update in your mail box.
Advanced Search