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Biggest threat from Chinese deluge of textiles & apparels
Feb '09
In present times, looking at the current situation prevailing in global markets, the textile and garment industry will be constrained to look for other destinations, like domestic and non-traditional markets, opine experts.

Currently, almost all small and medium size enterprises have either small or no orders in hand. The three traditional markets; US, EU and Japan, accounting for 55, 18 and 12 percent of the industry's export value, are going through a very difficult phase.

According to International Monetary Fund (IMF), the economy of these regions will have negative growth, thereby putting at great risk the potential in exports from the sector. The biggest challenge will be faced by high end products, say experts.

In a recessionary phase, high end products feel the heat more than mass consumed products, in which China and Bangladesh have an edge. The sector will also have to face price competition in global markets from its competitors.

But the biggest challenge is the delude of Chinese textiles and apparels in its domestic markets, at a time when the local manufacturers are trying to find a foothold in order to stave of low growth from global markets.

Fibre2fashion News Desk - Vietnam

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