Leather garment export prices likely to move up

28 Mar '07

2 min read

Latest research statistics show that, affected by rising wages and leather costs, around 87 percent of the leather garment manufacturers in Mainland China plan to increase their export prices in 2007. Meanwhile, these leather manufacturers will target EU and the US markets, where prices are higher.

According to the report, prices of leather raw materials to be exported to the mainland are expected to rise, due to the increase in import duties. Product suppliers also forecast that product prices will be impacted by the RMB revaluation and increasing labor costs.

Among the surveyed suppliers of leather garments in Mainland China, 6 percent said they would raise product prices by 10-15 percent. While about 52 percent expected prices to rise between 5 -10 percent, nearly 42 percent planned to promote prices less than 5 percent, in order to increase their competitiveness to attract overseas orders.

Among the surveyed product manufacturers, 40 percent said they would focus their export products on EU countries. Around 33 percent planned to concentrate on the US and over 12 percent expressed they would focus on Asian markets. The remaining 15 percent of respondents said they would focus on European countries outside the EU, as well as the Middle East, Africa and other regions.

Fibre2fashion, News Desk - China

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