February-2010
 

 

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Chinese apparel exporters worry diversion of orders to competitors

Zhong Hao Sen Assistant General Manager of Guangdong Textile Import & Export Co., Ltd., said that clothing orders for the first quarter of this year has increased by 20%-30% compared with same period last year, but prices are generally not good.

Some customers have transferred orders to Bangladesh, as garment exports from Bangladesh to the United States and Canada can enjoy tax exemptions, at tariff cost which is at least 17% below Chinese products, and in addition, Bangladesh has advantage in production cost. Therefore, Chinese garment industry has to maintain 2009 price level under such a situation.

China's textile exports achieved a positive growth of 25.2% in December last year, but apparel exports indicated a reduction of 4.8% year on year, not escaping from "negative growth" yet. Although orders show a growing trend, some apparel companies dare not to lift prices at will, as they worry that customers will therefore transfer orders to Southeast Asia and other regions. With the rise in raw material prices, even a marginal increase in price tempts many customers to transfer their orders to Vietnam, Indonesia and Southeast Asian areas.

 
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