Exporters of clothing had no time to celebrate the New Year. They were busy attending local fairs in a bid to penetrate the domestic markets. Many businessmen involved in exports of clothing say that they may even have to skip the upcoming lunar year celebrations.
The reasons are not far to seek. Exports of clothing have showed a very marginal growth in 2008 and enterprises are expecting 2009 to be far worse than the preceding year. And it is just not the exporters of clothing who have been affected.
Exports of all sorts, whether consumer or industrial have been hit by the global recessionary trends. Since the last three decades, China has concentrated on the export industry and now constitutes nearly 60 percent of GDP of the country.
A fall in exports, means a direct hit on the economy due to which for the first time in many years, the Chinese government has changed export oriented policies nearly three times in the second half of 2008, by consecutively increasing the export drawback rates.
The Chinese garment exporters have had a great run till 2007, and many had increased their investments in the last few years with the hope to recoup the same due to the bull run in the clothing exports market.
But, now all hopes along with their investments have crashed. Many are contemplating changing their businesses, while others are trying to penetrate the domestic markets which they are aware is not going to be an easy task with most of their ilk, trying to do the same at the same time.
Fibre2fashion News Desk - India