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Change in fortunes of Chinese clothing firms uncertain
Apr '12
Looking at the statistical data of China's clothing production of big and major enterprises in the first two months of 2012, it can be safely assumed that, downward trend may not reverse in the short term, say experts.

Infact, garment output has been on a downhill since the second quarter of 2012.

According to these experts, the main reasons are; volatility in cotton prices, enterprises face constraints in accessing low-cost capital and demand slowdown in major overseas markets.

It has been noticed that cotton consumers hold a typical mentality of buying in rising market, not buying in falling market, as they expect prices to fall further. This invariably leads to a hike in prices when buyers start buying cotton at the same time.

However there is a silver lining say experts. The textile and garment industry is changing from the earlier concept of volume to new concept of adding value.

The dependency on export markets is also reducing as they concentrate on developing the domestic markets.

Home textile and high-end men's clothing enterprises are expected to achieve nominal growth in 2012, as they are less affected by the economic slowdown.

Fibre2fashion News Desk - China

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