Home / Knowledge / News / Textiles / Textile & apparel firms edge in for heavy losses
Textile & apparel firms edge in for heavy losses
13
May '08
Textile and garment exporters in Shandong Province are facing immense problems due to multiple factors including RMB appreciation, increase in labor cost and adjustment in export tax rebate.

According to the research made by Shandong Provincial Foreign Economy and Trade Department, only 30 percent of the textile enterprises in the province perform well, while more than 20 percent are suffering losses and have to either cut or change the line of production.

The Department made a survey on about 1,464 textile and garment exporters which revealed that profits of the entrepreneurs are squeezing day by day. Of these, only 433 enterprises had their margins crossing 3 percent, accounting for 29.6 percent of the total companies while nearly 21.3 percent were incurring losses or had suspended production or transferred to other industries. The remaining had balanced profits of about one percent.

Reports reveal that last year, the profits of textile and garment exporters got reduced by about 700 million yuan due to export tax rebates alone resulting in 30 percent of the textile enterprises standing at the edge of losses.

Moreover, in the first quarter of this year, the average cost of textile enterprises increased by 20-35 percent while the export prices showed no signs of pushing up. In the recently concluded 103rd session of Guangzhou Fair, prices for textile and apparel prices rose to the highest by about 15 percent while the growthrate of most of the products remained below 5 percent.

Fibre2fashion News Desk - China

Must ReadView All

Textiles | On 28th Apr 2017

Fix 5% GST rate for textile goods: Textile bodies

Uniform levy of 5 per cent Goods and Services Tax (GST) on all...

Textiles | On 28th Apr 2017

India lifts CVD imposed on Nepali Jute goods

The countervailing duty (CVD) that was imposed on Nepali jute...

Courtesy: Williamsburg Garment Company

Fashion | On 28th Apr 2017

'We have grown by staying small & maximising efforts'

The easiest way to go out of business is to be too big or expand too...

Interviews View All

Sonia Agarwal
Whitenife

‘The terms eco-friendly and organic are common but everyone perceives them ...

Spokesperson
Hugo Boss

'Hugo Boss works with carefully selected sourcing partners'

Subhashini Srinivasan
The S Studio

Ethnicwear market will see an upward trend if uniqueness and quality are...

Mark Paterson
Technical Absorbents Ltd

Mark Paterson, R&D manager of Technical Absorbents Ltd talks about Super...

Marcel Alberts
Eurofibers

Coating at a fibre level is a practice not usually seen in the...

Silke Brand-Kirsch
Schlegel und Partner

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

Bani Batra

Bani Batra’s couture wedding collection is inspired by traditional Indian...

Prathyusha Garimella
Prathyusha Garimella

Hyderabad-based designer <b>Prathyusha Garimella</b> is known for blending ...

Tony Ward
Tony Ward

"You have to truly understand what your client wants, know her needs, what ...

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:
April 2017

April 2017

Subscribe today and get the latest update on Textiles, Fashion, Apparel and so on.

SUBSCRIBE


Browse Our Archives

GO


E-News Insight
Subscribe Today and Get the
Latest News Update in Your Mail Box.
Advanced Search



X