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Chinese garment enterprises starved of orders
04
May '12
Many Chinese garment companies have not received enough orders since the beginning of 2012.

According to Bureau of Statistics, China's textile and apparel industry maintained export growth of over 20 percent between January and August 2011.

However European and American debt crisis brought an adverse impact on China's textile and apparel beginning in September.

China's export growth of textile and garment fell to 14.8 percent in September.

The crisis worsened 2012 onwards. China's clothing production fell 4.93 percent year on year in the first two months of the year. The growth rate fell 19.55 percent over the same period last year.

Textile enterprises dare not accept large orders due to rising production costs. It is estimated that export orders should decline by 10-15 percent this year.

Due to poor economic conditions, purchase pattern of European and American markets too has undergone significant change.

The worlds retail giant Wal-Mart; has reduced its inventory cycle from eight weeks to six weeks.

At present U.S. orders have stabilized from previous downturn, but exports to the EU continue to face pressure as March orders were not satisfactory.

However, costs of textile raw materials have declined since April, which will give support to exports.

Many clothing enterprises are turning to the domestic market, as exports are not good, but to achieve success in the domestic market is not an easy task, aver experts.

Clothing retail sales totally increased by 6.1 percent in January to February, a record low in growth, but cumulative volume of retail sales fell 4.23 percent year on year.

Fibre2fashion News Desk - China


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