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Clothing exporters dare not hike prices in 2010
Jan '10
China's textile exports achieved a positive year on year growth of 25.2 percent in December 2009, but apparel exports registered a negative growth of 4.8 percent in the same month, when compared with the same month of the previous year.

Although orders are displaying a growing trend, apparel companies cannot dare to hike the prices as their biggest worry is that customers will shift their orders to Southeast Asian countries and other regions, if they do so.

According to an official of a big clothing exporter, low prices are the main reason behind the negative growth in exports of garments, though US and EU retailers are now actively sending enquiries as well as placing orders.

He adds by saying that despite the hike in raw material prices, they dare not increase prices as buyers threaten to take their orders elsewhere. Another apparel enterprise admits that order position has improved by 25-30 percent in the first quarter of 2010.

He also says that they cannot think of raising prices as Bangladesh enjoys duty-exemptions in its exports to the US and Canada, along with which it also enjoys lower production costs when compared with Chinese output costs.

Fibre2fashion News Desk - India

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