Rising RMB appreciation, increased cost of production, weakening market demand and a host of other factors have led to a decline in orders from the US, Hong Kong and Japan.
In the first seven months of this year, orders from the US fell by 8.12 percent while those from Hong Kong witnessed a drop of 20.41 percent. Although, Japan posted an increase of 0.18 percent, the growth was marginal and did not bring about any perceivable profits. However, due to elimination of quotas and relative economic stability, the order from the EU did rise by a remarkable 19.6 percent.
Along with the already stated reasons, experts have pointed out a number of other significant facts that have brought about this sharp drop in US bound order.
Importers are mainly fearing the uncertainty of foreign trade led by RMB appreciation refraining them from placing huge orders with Chinese exporters.
Besides, increase in prices of export products due to hike in cost of production have also affected orders in a big way and the remaining bit of damage was accompanied by sub-prime credit crisis in the US which dampened demand and thereby reduced sales of garments in the market.
Additionally retail giants like Wal-Mart are continuously trying to reduce prices of goods being imported from China and India, Vietnam and a few other countries are posing a stiff competition resulting in fewer orders from the US importers.
Fibre2fashion News Desk - China
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