China's drop in competitiveness stems from mounting costs on several fronts. Apart from higher costs of energy and raw materials -- which manufacturers face all over the world -- Chinese textile mills face greater costs in having to comply with growing environmental legislation. At the same time, Chinese apparel factories are having to cope with new regulations on working conditions. Furthermore, firms wishing to invest are finding it harder to obtain finance as the Chinese authorities have tightened credit in a bid to limit inflation. On top, Chinese exporters have been hit by lower export tax rebates.
Labour costs have become a particularly serious issue for Chinese firms. At least seven major exporting countries in Asia can now offer lower labour costs than China. Apparel exporters in Vietnam and Pakistan are able to benefit from labour costs as low as US$0.38 and US$0.37 an hour, respectively, whereas China's labour costs can reach US$1.08 an hour in certain areas of the country's coastal provinces. In Cambodia, labour costs are only US$0.33 an hour, and in Bangladesh they are as low as US$0.22 an hour.
In many ways, China has become a victim of its own success. Rising wages have been a direct consequence of the economic boom in the country, especially in coastal regions where it is easier to export goods to the world's major markets.
The boom has also led to upward pressure on China's currency, the renminbi. Although the Chinese authorities have not taken the risk of allowing the currency to float freely, they have accepted that it is not possible to keep a lid on it. On July 21, 2005, they unpegged the renminbi from the US dollar and since then its value has been allowed to increase by about one fifth. As a result, the US market has become less lucrative for Chinese suppliers.
The fall in competitiveness of Chinese apparel exporters could not have come at a worse time. Their problems have been compounded by poor economic conditions in the US market where the sub-prime lending crisis has had a knock-on effect on the housing market, on consumer confidence and on the economy as a whole.
During the first quarter of 2008, US consumer expenditures on clothing and footwear (on an annualised basis) were 0.2% lower than in the first quarter of 2007 -- after growing by 3.7% in 2007, 4.5% in 2006 and 5.1% in 2005.
One of the main beneficiaries of the drop in US imports from China is Vietnam. In the first quarter of 2008, sales of Vietnamese apparel in the US market were up by over 30% compared with the corresponding period of 2007. As a result, Vietnam increased its share of the US import market significantly during that period.
Chinese exporters will probably enjoy a brief resurgence in the US market in the first quarter of 2009, after safeguard quotas have been removed by the US authorities at midnight on December 31, 2008. Admittedly, the quotas affect only 34 product categories but many of these products sell in large volumes and China has proved in the past that it is particularly good at supplying them.
Undoubtedly, many US buyers will return to China when the quotas have been removed. But a number have built up new sources of supply in Bangladesh, Cambodia and Vietnam while US quotas have been in place. Having forged new relationships and partnerships, they may prefer to stay where they are -- especially if the renminbi looks set to escalate further and the escalation in Chinese costs shows no signs of easing.
China slowing down
Written By Views maker on July 23, 2008 | 7/23/2008
Average Cost per square meter of fabrics
There is an impressive rise in the context that the world's average price of apparel contracts is declining to US$1.79 a square meter, even that of the biggest apparel exporter China also was down 2% against 2007.At present, Vietnam's apparel export to US stands at SU$2.39 a square meters, after Sri Lanka at US$3.64 a square meters.
Tirupur fabric supplier
Written By Views maker on July 17, 2008 | 7/17/2008
Tirupur has two kinds of fabric supplier, one is who makes fabric for your requirements and the another has stock fabric where you can find fabric for your requirement. The later supplier who get the surplus fabric from the exporter and keeps stock and price of the same is also less but who make the fabric for your requirement is costly but gives you what you are looking for.
Are you looking for a fabric supplier in Tirupur, If you are new and need some help in finding a right fabric supplier we are ready to help you out. Send your requirements to us by email we will get back to you with a list of supplier with who you can directly contact for further information's. pls write us at nmayilsamy@gmail.com
Olympics has hit Indian Textiles
The soaring yarn price and dying rate has almost made surat weaving mills to a stand still position. Chinese government has asked many of it's dyes manufacturing units to stop production in order to provide a less polluted environment for Olympics. This has made the textile chemicals to cost more by atleast 25%. This increase in the cost of dyes has been passed on to the textile manufacturers and exporters. In Tirupur the dyeing units are already facing pollution problem and government has reduced the Dyeing factories capacity to reduce the pollution. The capacity reduction has made the dyeing prices to increase. With the already increased price the increased dyes rate is also added. In Tirupur orders are very less due pricing.
Vietnam to become second largest exporter of Textiles to USA
Written By Views maker on July 15, 2008 | 7/15/2008
Vietnam has been in the top five exporters of textile and garment to the US for the past three consecutive years, with an export value of 4.29 billion USD per year. In 2008, Vietnam is expected to export 5.4 billion USD worth of textiles and garments to the US market to secure the second place behind China in the export of those products to the country.
Tirupur Yarn Price
The following are the rates from the leading spinning mill who is supplying to tirupur.
| Counts | carded | semi combed | Combed | Red label |
| 20's | x | Rs.119.13 | Rs.126.33 | x |
| 24's | x | Rs.127.25 | Rs.128.49 | x |
| 30's | x | Rs.128.83 | Rs.129.75 | Rs. 135.97 |
| 34's | x | Rs.129.90 | Rs.137.01 | Rs. 143.25 |
| 40's | x | Rs.139.90 | Rs.145.33 | Rs. 151.57 |
| 50's | x | x | x | Rs.175.49 |
| 60's | x | x | x | Rs. 179.65 |
The yarn price has increased by about 15.Rs in past few months which makes the tirupur exporters to face huge problem when it come to pricing their products.
Weaving Mills in surat Face tuff time
Written By Views maker on July 14, 2008 | 7/14/2008
Workers at surat weaving mills are looking for new revised wages, the processing units have cut down the purchases of grey fabrics from the weaving mills by about 30%. The processing units have slowed down it's operations. The processing units at surat have been sourcing dye stuffs from china. Now Chinese government has taken steps to stop cheaper dye stuff manufacturers to prevent pollution and this has made processing units to loss its price advantage. Rising fuel cost is also an another factor that is contributing to slow down of processing units at Surat.
Indian Apparel Market is approaching the peak season
Indian apparel sales is very sluggish now but wholesale agent are expecting the market to pick from the later part of next month. The domestic manufacturers at Tirupur have started to pile up the fabric for the seasonal demands. There are some companies who have stocked the fabric for next six months. Diwali season sales are expected to be better than the last year but the genral economically conditions seams show that the sales may not better than the previous year.
Another Yarn Price hike in Tirupur
Every exporter at Tirupur were expecting some decrease in the price but Yarn price in Tirupur was increased by Rs.5 in the last week yet another price hike is expected soon. In past one month alone there is about Rs.10 to 15 rupees hike in the yarn price. Government has already scrapped the duty of cotton imports but this didn't have any impact on the yarn price. The Tirupur exporter who have confirmed the orders will been be having tuff times ahead.
Chinese textile exports sluggish, Vietnamese textile exports on a run
Written By Views maker on July 10, 2008 | 7/10/2008
Appreciating Chinese yuan, increasing labour cost, and reduced duty draw back hits hard at China's export of textile and garments. Chinese textile and garment exports has reportedly seen a 3.7 per cent fall from September2007 to May 2008. The story in Vietnam is bit different, In the first half of 2008 garment and textile exports grew by 20% to US$4.5 billion, accounting for 44.21% of the whole year's US$9.5 billion target. The textile sector is expecting to achieve the target by the end of the year as they have signed up quite a lot of order for the remaining half of the year.
Even though the Vietnamese textile sector has seen a very good growth they are facing serious problems. Inflation in Vietnam is 26% ( In India 11%), because of inflation there is an increase in labour cost and labour shortage and Increase in raw material cost. This perhaps has wiped out almost 50% of profit that they have made in the first half of 2008. Government in order to cut the money supply to curb inflation has increase interest rate and to get a loan is also very difficult. Vietnam seems to have slowed down but the Vietnamese textile industry feels that they could still achieve the growth and keep the growth rate going.
Cotton import duty abolished, much awaited relief to Indian textile industry
Written By Views maker on July 09, 2008 | 7/09/2008
The government has scrapped 10 % import duty on cotton and withdrew incentives of 1% duty draw back on exports of raw cotton to boost domestic supply for the textile industry. This moved was much awaited by textile sector. The government has made this move after seeing the raise in domestic cotton price. Recent article from times of India exposed the price of domestic price of shankar-6 to around 80 cents/pounds (after ginning) and this is expect to reach 90 cents with inclusion of transportation cost but international price for similar variety was around 73 cents/pound. textile sector expect to see reason fall in the prices of cotton after this scrapping of import duty.
Indian Apparel exporters, be aware of Steve & Barry's clothing retailer
Steve and barry's is one of the leading apparel retailer in USA. India is one of the leading suppliers to the retailer. Texport syndicate is the top supplier from India. Recently university of Michigan has stopped all it's ties with Steve and berry's,which is a big blow to them. Recently wallstreet journal has also report that Steve and barry's have hired a bankruptcy lawyer and looking for $30 million to avoid bankruptcy. The trend shows that it's not good for Indian apparel exporter to work with Steve and barry's.... Fuel price hike hits both Bangladesh and Pakistan ready made garment exporters
Written By Views maker on July 08, 2008 | 7/08/2008
Fuel price hike has increased production and transportation costs significantly to Bangladesh and Pakistan garment manufacturer. In Bangladesh price hike of fuel would increase production cost of readymade garment by 15 per cent.Price of ready made garment product in the global market is at decreasing trend But cost of production is rising continuously. The recession in the US has lowered ready made garment product export by 35 percent in recent months But they are importing textiles from Bangladesh due to low price. If this trend seems to continue then Pakistan and Bangladesh would have to shed some of their market share to more efficient producers in Asia.
49TH National Garment Fair, 2008 at Mumbai
On July 9th A National Garment Fair is planned at Bombay Exhibition Center, NSC Complex, Goregaon (East), Mumbai. The garment fair will be spread over 25,000 sq. meters in two halls. More than 400 brands shall display their collections. There will be also a Franchising Zone, which will help to connect prospective franchises with established national & international brands. It is restricted to garment dealers only.
Dyeing Rate is expected to raise in Tirupur
Written By Views maker on July 07, 2008 | 7/07/2008
Trouble times for Tirupur as prices keep increasing except for
the garments that they make. The dyeing rates are expected to raise as the dyes rate have increased. The increased price of the dyes has to be passed on to the Tirupur garment exporters. Already there is reduction in capacity in Tirupur to pollution control measures by government. Tirupur is slowly approaching the peak seasons but such issues could have an very adverse effect when it comes to delivering the goods on time to customers.
China plans to increase in duty drawback for textile exports
Written By Views maker on July 04, 2008 | 7/04/2008
A leading news agency has reported that Chinese goverment is planning to increase the duty draw back from 11% to 13% in order to support the textile industry. The government in july cut the duty draw percentage to 11% as step to tackle the trade surplus.
Organic by Design
Pesticide Action Network ,UK selected nine graduates for the 'Organic by Design' award from a number of applicants for their outstanding creative skills and their innovative approach to sustainable fashion. The winners represented seven different fashion colleges across England, Scotland and Wales. The collections centered around the use of organic cotton and demonstrated how traditional weaving allows Indian farming communities to add value to their organic cotton fibres.
