Dec '11
Troubled with the declining orders from eurozone, the Asian garment exporters are hoping that their new strategy would help them withstand the ongoing debt crisis in Western markets.
After witnessing financial crisis in the region during the late 1990s, Asian countries have put their houses in order and they now enjoy low debt levels and have adequate foreign reserves. They have also introduced more rigid corporate governance and regulatory policies, experts aver.
On the other hand there is a possibility of disintegration of the 17-nation euro area, and experts foresee exit of Greece from the single currency in 2012, which is likely to be followed by Ireland and Portugal.
The nearly two-year old financial crisis in Europe has resulted in decline in export orders from worst-hit nations like Greece, Portugal, Spain and Italy, said Siddiqur Rahman, acting President of the Bangladesh Garment Manufacturers and Exporters Association (BGMEA).
He informed that buyers from those countries that are grappling with financial crisis have adopted different tactics. While some have cancelled their orders, others have preferred to delay them. Still some others have reduced order prices by 5-10 percent or chosen to defer the export payment.
In such a situation, the Asian Development Bank said a strategy of strengthening intra-regional trade and financial integration, as well as increasing ties with other emerging markets would help the Asian countries ride over the current phase of decline in orders from the European markets.
China, the second-largest economy in the world, is among the Asian nations trying to boost trade with emerging economies to soften the impact of the slowdown in Europe and the US.
Wang Shouwen, Director of the Chinese Commerce Ministry's Department of Foreign Trade, opined that he expects more challenges in exports next year. However, since some developing economies currently have strong economic performance, more emphasis will be laid on exports to these nations, he added.
Some Chinese apparel companies, which were so far supplying most of their products to the European market are now changing their strategy and targeting countries like Brazil and Russia.
These companies find that the orders from Russian and Brazilian companies are increasing, while European customers are postponing or canceling their orders.
Fibre2fashion News Desk - India
Must ReadView All
Textiles | On 19th Aug 2017
New fabric interfaces to interact with computers
As computer capabilities evolve, new fabric-based interfaces are...
Textiles | On 19th Aug 2017
Brazilian cotton prices drop in first fortnight of August
Cotton prices dropped in the Brazilian market in the first fortnight...
Apparel/Garments | On 19th Aug 2017
Target to acquire Grand Junction for faster deliveries
Target Corporation has announced that it has agreed to acquire Grand...
Interviews View All
Cindy McNaull
Cordura
We have broad range of options in durable fabrics
Sachin Sharma
Gem Enviro Management Pvt Ltd
There are no significant differences between virgin yarn and PET recycled...
Vidhyaa Shankar. S
A Ganapathi Chettiar
'The usage of knits is getting into the boundaries of woven fabrics'
Lynda Kelly
Suominen Corporation
Suominen Corporation is a manufacturer of nonwovens as roll goods for...
Kai Poehler
Voith Paper GmbH & Co. KG
The glass mat industry is growing by five to eight per cent annually. Kai...
Mohammad Hassan
Biax Fiberfilm
About one in every 20 patients picks up an infection while hospitalised....
Silvia Venturini Fendi
Fendi s.r.l
"Yes, my confidence and positive attitude are my strengths and should be...
Akta Adani
India Boulevard
India Boulevard is a San Francisco-based curated fashion marketplace that...
Robert Brunner
Devereux
Golfwear and menswear brand Devereux is set for greener pastures. Robert...
Recommended
news category
Related Categories:
Do you think the sustainability space has the needed tools and resources available for a business to lead change?
Yes No SkipActive Poll
Do you see sustainability as a route to business growth?
YesTotal Votes: 30
Do you think adopting a sustainable approach will be a profitable move for your business?
Yes No SkipActive Poll
Do you think the sustainability space has the needed tools and resources available for a business to lead change?
YesTotal Votes: 30
Do you want the world to know about your sustainability journey and your business’ environmental footprint?
Yes No SkipActive Poll
Do you think adopting a sustainable approach will be a profitable move for your business?
YesTotal Votes: 30
Thanks for your valuable feedback. Claim your free latest sustainability e-book.
Active Poll
Do you want the world to know about your sustainability journey and your business’ environmental footprint?
YesTotal Votes: 30
E-News Insight
Latest News Update in Your Mail Box.
