Chinese textile companies were quoting price increases of as much as 30% at the massive Canton Trade Fair, telling customers that a global cotton shortage and persistent labor shortages were driving up costs, according to several reports.
Spot prices for standard grade Chinese cotton have risen to 30,000 Yuan from as low as 15,000 yuan earlier this year as a global shortfall of the fiber and speculators have driven up prices. Meanwhile, Chinese factories continue to have trouble recruiting and retaining workers, who increasingly have options closer to home or are demanding higher wages and benefits.
Chinese textile companies are expected to continue focusing on innovation and branding to prop up their margins, which are often below 5%.
While Chinese exports of textile products grew by 23% in the first nine months of the year, experts attribute the surge to the fact that more brands are importing apparel in bulk to ensure supply and avoid price increases.
While Chinese exports of textile products grew by 23% in the first nine months of the year, experts attribute the surge to the fact that more brands are importing apparel in bulk to ensure supply and avoid price increases.
