Home / Knowledge / News / Apparel/Garments / Chinese garment firms feel impact of eurozone crisis
Chinese garment firms feel impact of eurozone crisis
02
Jul '12
Apparel companies in China are beginning to feel the impact of the ongoing financial crisis in the eurozone countries.
 
The eurozone debt crisis, which is not likely to end very soon, has brought in economic recession, leading to high unemployment and a dip in consumer spending across Europe. This has, in turn, led to a corresponding reduction in demand for Chinese clothing items in Europe.
 
The direct effect of the fiscal woes in European countries is being felt by small garment firms, including those in south China’s Guangdong province, whose profits have already declined owing to the sharp appreciation of the Chinese currency against the euro.
 
Since 2010, the Chinese yuan has appreciated by 23 percent against the euro, which makes Chinese apparel products less competitive in the eurozone.
 
In addition, there is a rise in labour costs and price of raw materials, which means lower profits for Chinese clothing exporters. 
 
As a consequence, several Chinese garment exporters have reduced the number of workers and also resorted to pay cuts for existing employees. These companies plan to hire temporary workers if there is a surge in orders in near future.
 

Fibre2fashion News Desk - China

Must ReadView All

Courtesy: Li & Fung

Textiles | On 24th Mar 2017

Li & Fung forms new supply chain partnership with PVH Corp

Li & Fung Limited, the world's leader in consumer goods design,...

Courtesy: Alizilla

Apparel/Garments | On 24th Mar 2017

Alibaba's eWTP finds first overseas base in Malaysia

In a step towards using the internet to bring small businesses around ...

Textiles | On 24th Mar 2017

BJMC to produce cotton-jute blended denim fabrics

To meet demand from the market, Bangladesh Jute Mills Corporation...

Interviews View All

Anvita Mehra
Confidential Couture

‘It is going to take some time for Indian buyers to get accustomed to...

Jim Desai
Blaiva Fabricaa

Fashion industry likely to remain labour-intensive in coming years

Mohammad Mamun Ar Rashid
UL VS Bangladesh Ltd

Productivity, creativity and innovation play a vital role in the growth of ...

Suresh Patel
Sidwin Fabric

Sidwin Fabric is a manufacturer and exporter of polypropylene textiles and ...

Silke Brand-Kirsch
Schlegel und Partner

Silke Brand-Kirsch, executive partner of Schlegel und Partner, a leading...

Eamonn Tighe
Nature Works LLC

Eamonn Tighe, Fibres and Nonwovens - Business Development Manager of...

Karan Arora
Karan Arora

Bridal couture created with rich Indian heritage, exquisite craftsmanship...

Rupa Sood and Sharan Apparao
Nayaab

Nayaab, an exhibition meant to celebrate Indian weaves, is in its second...

Robert Brunner
Devereux

Golfwear and menswear brand Devereux is set for greener pastures. Robert...

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

news category


Related Categories:
March 2017

March 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