The Intertextile home textiles show will begin this week. The rising raw material costs and currency valuations will be the main topic of discussion. Buyers and exhibitors have started gathering here since last week. This year’s Intertextile also marks a further broadening of scope beyond Chinese manufacturers and will feature some 800 exhibitors from 21 countries.
"The value of the yuan and the reduction of the drawback tax impacted export for all industries, especially textiles," said Casi Cao, general manager of Shanghai Textile Decoration Group. He said the company does not have plans to increase the prices.
Cao further said that from 1999, China’s textile industry went to a narrow margin of profit. Many producers relied on the drawback tax from the government. Many trading companies just got the profit from the drawback tax, although they were losing money from the production cost. So the value of the yuan and the reduction or possible abolition of the drawback tax is related to the profit and survival of many manufacturers in China."
Deluxtex manager Bright Tu said the company is adjusting prices. "First, we try to explain to clients and we try to minimize the rise of our price increase," he said. Focusing on quality, he added, will hopefully keep customers from going to other developing nations "because if clients change suppliers and seek new ones in other countries, there are some risks."
At Nantong Angel Home Textile Co, general manager Helen He is also looking at a price hike. "Business is not as easy as before," she said. "We will raise the price because of the rising costs. If we don’t, we will have no profit."
Blisslving Home Fashion Produce Co.’s marketing manager Eric Wu said his company is less impacted by the yuan because of its U.S. headquarters. "Our price will not rise too much. We try to create additional value and put effort into development and design."
For the first time this year, the show will include a pavilion from Portugal as well as a returning pavilion from Pakistan. For the first Portugal national pavilion, nine companies will feature a full range of products such as bed linen including knitted, flannel, percale, satin, and jacquard fabrics, bath items including terry towels and robes, and table and kitchen linen including cotton damask. The Pakistan Pavilion will feature 13 companies that produce bedding, bath, tabletop, curtains and other textiles.
