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China faces new challenges in export markets
May '09
Growth of China's textiles and garment exports in the international market is experiencing a downward slopping trend. Textile exports, though, surged by 82.2% in March, as global retailers rebuilt their stocks.

Economic crisis has caused ruthless unemployment in countries like US, and Europe. This affects the amount of disposable income of the consumers, thereby forcing them to curtail their expenses, especially in shopping for garments. The change in the spending spree of the consumers has infected the Chinese exports for textile and apparels.

Other then the above raw material costs has increased by 10 to 20% and labor costs have increased by 30%. One percent of RMB appreciation will cause a decline in 2-3% in the profit margin of textile and apparel industry.

The trade protection measures against the import of Chinese textiles and apparels by countries like US, EU and other countries have caused a drastic decline in the volume of textile exports from China.

This has finally led the Chinese manufacturers to turn their attention towards the domestic market, but they do not have any specific brands, distribution channels and lack domestic market experience and is likely to increase the pressure of the surviving enterprises.

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Fibre2fashion News Desk - India

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