Clothing Industry Profit likely to Drop
Source: Fibre2fashion Date: 2007-07-20
Recently, an official from Chinese Development and Reformation Association revealed that the expected export value of textile and clothing in 2007 would touch US $165 billion, with a rise rate of 16 percent over 2006. The growth rate in 2006 was 25 percent.
This year, because of drop in export rebate rate, Chinese clothing industry will lose an income of 4.8 billion yuan in the second half of this year and the profit rate would fall by 0.26 percent.
However, some experts believe that profit margin this year would be below than anticipated, because orders received before July will be completed in second half of the year. As quota prices were lower then, the loss would be higher for Chinese clothing enterprises.
