Apparel exports to US has dropped

Indonesian garment exports have dropped around 0.8 percent due to the impact of the financial crisis in the US. Right now the Chinese market is shrinking and therefore exports to the US, Europe and Japan also declined. Indonesian garments` major markets are the US, Europe and Japan. from China, Mexico and India to the US had also dropped almost three percent. however that exports from several countries such as Vietnam and Bangladesh to the US were up.

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5/31/2009 | 0 comments

China sells its cotton reserves to stabilize price

    In comparison with statistics last November, cotton prices have gone up by 2,000 yuan (293 U.S. dollars) per tonne as of April, said Zhang, citing a shortage of cotton as the cause of the price hike so China sold 4,991 tonnes of cotton from state reserves via its national cotton exchange based in Beijing . The move is part of the country's plan to sell 1.5 million tonnes of cotton to meet demands of textile makers and to stabilize prices of the cotton market.  The plan has been approved by the Ministry of Finance and the National Development and Reform Commission (NDRC), said an official, surnamed Zhang, with the second commodity section of the economic and trade division under the NDRC .

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5/23/2009 | 0 comments

Still Some companies in Tirupur work with 40% margins

I recently had a change to talk with the sub contractor of a well known company. During the discussion i decide to cross check the price of the sub contractors and buyer confirmed price to that well known company, to my surprise i found it 40% margin.

 

How do they work...

 

1. They supply only base material yarn and the rest in the hands of the sub contractor ..

2. Rotate the suppliers money and always have few lakhs of sub contractors money .

3. Try to play around with quality aspects and save as much as possible.

4. Pass all the debits and Air cost to the sub contractor.

 

In short exploit the sub contractor and make as much money as possible.

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5/06/2009 | 0 comments