Himfr.com Analyzes Textile and Clothing Trends in 2009
Source: About Himfr.com Date: 2009-05-07
BEIJING, May 5 /PRNewswire-Asia/ -- Himfr.com, one of China's leading B2B search platforms with more than 30 B2B industry websites to its name, including Frbiz.com ( http://www.frbiz.com/leather-goods/ ), analyzes textile and clothing trends in 2009.
Himfr.com believes that in the long run, China's foreign trade depends on improvements in the current global economic situation; however, with the decline of the domestic retail sales growth rate in the United States, the short-term suggest the possibility of improvements in exports for Chinese manufacturers.
Compared to the uncertain foreign trade situation, Himfr.com is more optimistic about the domestic market: the main reason comes from the confidence of China's economic development. Himfr.com estimates that if China relies on the advance of urbanization and demographic changes brought about by China's clothing market, the annual capacity will be at least a 10% growth, and if you consider economic growth brings increased spending power to residents, the expansion of the market capacity would far exceed the rate of 10%. Of course, in the short-term, the slowdown in economic growth on income levels and spending power is inevitable. We believe that the slowdown in domestic sales is due, in large, to lower prices that have mainly resulted from the falling stock prices seen in clothing enterprises. In the future, the domestic retail sales growth rate is expected to recover.
Seeing price indexes fall one after the other is of great significance, showing that enterprises further reduce production to offset cost pressures. Himfr.com believes that this will help re-establish the use of a temporary price advantage to deal with economic difficulties.
New policies in China have now set the export tax rebate rate to 16 percent. Himfr.com believes that the government has been so careful in its adjustment of the industry for the export tax rebate rate to prevent the idea of trade protectionism. Due to weak overseas demand, solely relying on the increase of the export tax rebate rate to stimulate exports is not the reality. The tax rebate rate adjustment is of more important significance for the foreign trade enterprises to set aside space for price cuts to ease the pressure on enterprises exports.
