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Profit margins of garment industry likely to shrink - Experts

24
Sep '08
Under the impact of global inflation and financial crisis the demand for clothing has declined significantly. As a result, pre-tax profits of Taiwan garment enterprises has reduced almost 50 percent in the first eight months of 2008.

Experts suggest that, the fall in demand is because international clothing manufacturers are cautious in putting up orders due to the fluctuating markets.

Clothing industry points out that the demand for apparels from major markets in Europe and United States has reduced to quite an extant. Factories around the world are resorting to quoting low prices to gain orders. Therefore, average price of orders has declined by 5 to 10 percent when compared to same time of 2007.

Industry insiders are of the opinion that the profits of Taiwan garment companies will inevitably decline this year due to all the above stated reasons.

Fibre2fashion News desk - China


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