Chinese garment producers, manufacturing for global apparel brands are witnessing their orders as well as their margins diminishing in recent months.
A garment producer based in Shishi city aptly said. “In 2007, we used to have a margin of around 200-250 Yuan by producing a clothing item. This margin has now shrunk to double digits”.
He adds, “Order levels are also falling. So, in order to maintain our operations, we are quoting rock-bottom prices, which in turn still lower our margins”.
Turkey which is geographically closer to Europe has the same or higher cost structure than China, despite which, European garment retailers are drawn to Turkey as they have better control over information, process and quality.
To overcome the dire situation, big time garment producers are pushing for a share of the domestic market, where though branding may be expensive, margins are very high.
Fibre2fashion News Desk - China
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