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Chinese supremacy faces threats in global apparel markets
Feb '09
The damages of the Yuan appreciation are inevitable. This has made the worried Chinese Government to review matters relating to apparel exports.

China has to run in competition with potential rivals like Turkey, Vietnam, Cambodia, and Bangladesh. Expanding market for these countries pose a threat to the 'so far' unchallenged supremacy of China. The drastic growth of Vietnam in the global apparel market with a 21.9% increase in exports proved it to be a tough competitor for China. Currently, Vietnam is the second largest apparel exporter to US, next to China.

Rising labor costs of China is also affecting the country's market. To save on labor costs, manufacturers are moving to the country's interior, but again, this result in increased transportation costs. Possibilities exist that, the current situation of the 'dragon nation' may favor the upcoming and developing countries to steal a march on Chinese garment exports.

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Fibre2fashion News Desk - India

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