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. |