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Low export prices hit bottom lines of apparel exporters
Jun '09
The global economic meltdown which led to recessionary winds blowing across the globe has brought with it a very big headache which is cutting in to bottom lines of the garment exporters of Bangladesh.

Along with the slowdown in orders, the exporters have also had to contend with a fall in realization of unit prices as buyers keep on forcing them to reduce their prices, which is cutting in to their already wafer thin margins.

However experts contend that buyers are still leaning towards the Bangladeshi garment exporters, since their prices are still competitive, in comparison to those quoted by clothing exporters from the Asian subcontinent.

They advise the exporters to negotiate firmly with their foreign buyers, when it comes to reducing their prices to unmanageable levels, since raw material prices are on the ascent since the last few weeks.

However, exporters say that they are not in a position to negotiate too much otherwise the orders could flow to other companies or jump shores to other competitor countries, since buyers are taking advantage of the slowdown in orders.

Fibre2fashion News Desk - India

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