Increased Cost And Intensified Competition: South African Clothing Industry Enters "Winter"

South Africa's winter is not cold this year, according to the overseas Chinese newspaper, South Africa. It is a very pleasant thing for the local people to enjoy the cold winter, but it is a bad news for Chinese businessmen who are engaged in the clothing industry.

"This winter can make me bitter. I want to take advantage of the season change to make the original business worse. I didn't expect this winter dress to be so warm this year.

I saw that winter was going to be over, and I completely pressed four 40 feet cupboards.

Mr. Lin, a Chinese businessman who runs a clothing business in a Chinese mall, is very upset.

"Everyone thought that this year is the same as last year. Winter comes late, but when it is cold, winter clothes must be sold well. So many people have entered this product with this idea. This is a big loss."

Mr. Liu, a Chinese businessman, told reporters reluctantly.

Reporters found that the major shopping malls are rather sluggish, and may not be the reason for the weekend. Parking lots are empty, and there are not many customers who purchase and shop.

"Although summer is coming, people do not want to enter the summer wear so early. If the warehouse is full of winter clothes, it will not be sold until next year, and it will not be necessary."

Liu said: "this winter, a group of Chinese businessmen will be in trouble. There are many people who have lost hundreds of thousands of stores in two months."

Without new products, customers can't attract customers. If summer clothes are in place, will this situation improve?

"As soon as the summer wear arrives, the sales situation will definitely change, but in fact, it is just a busy look."

Mr. Liu obviously has no confidence in this industry. "Looking at wholesalers and shopkeepers, the shipments and the money seem to be doing a good job, but in fact, they can't earn much money."

The continued strengthening of the renminbi and the rise in global raw material prices have led to a significant increase in the cost of domestic goods in China. When the price of the goods should have been raised, however, because of the rising price of South Africa and the decline in the purchasing power of consumers, the price could only be maintained at the original price.

Once in and out, the profit of businessmen is cut down, which makes the already saturated garment industry worse.

Statistics show that in 2007, China exported about 1 billion 300 million US dollars to South Africa.

The consumption of clothing in South Africa is limited, coupled with the impact of the big environment, the market has not seen the prosperity of more than ten years ago, but even so, there are still a large number of Chinese people joining the industry every year, which has intensified competition and vicious circle, and the final result is self-evident.

It can be said that the textile industry run by the Chinese people in southern China has entered the "winter".