Blog: Leonie BarrieChina's currency conundrum

Leonie Barrie | 2 September 2015

Fears over the state of the Chinese economy continued to jolt financial markets during the past week. Yet apparel industry executives are playing down the potential impact of the decision by China's central bank to reduce the value of the yuan and cut interest rates further.

For his part, Mike Flanagan asks: why the fuss about China’s yuan devaluation? While pretty trivial by the standards of the past 50 years, it has managed to raise all sorts of hackles, he writes.

One analyst has suggested tumbling markets and economic uncertainty in China could deliver a tough blow to several specialty retail and apparel companies - with the biggest risks including China revenue exposure and a potentially slower economy driving lower consumer spending.

But US retail giant Gap Inc said it remains bullish on its long-term growth prospects in China despite the yuan deflation, while also revealing it is on track with its strategic restructuring.

Industry excitement might be mounting ahead of impending trade deals involving Vietnam – but there are concerns, too, as to whether the country has the skills and capacity to cope.

While Nicaragua's top apparel and footwear manufacturers say they plan to double their size in three years as the Central American nation rushes to meet rising demand from US apparel brands.

Easy access to cheap capital, infinite computing power, and “the Uberfication of everything” are converging to create a perfect storm of disruption that's starting to shake up the apparel industry, according to Kurt Cavano, founder and chief strategy officer of GT Nexus. In a two-part interview he talks about the implications for retail and the supply chain.

And in other news, Adidas Group is trying to help resolve a dispute at an Indonesian footwear supplier; Luen Thai Holdings says Vietnam will continue to be the country of choice for apparel manufacturing in the foreseeable future; and retailer H&M is offering a EUR1m (US$1.1m) grant to encourage sustainable innovation.

BLOG

Likely shifts in the sourcing landscape in 2017

Continuing our look at what lies ahead for the apparel industry and its supply chain in 2017, the panel of industry experts consulted by just-style last week tackled likely shifts in the sourcing land...

BLOG

Trump trade policies and China tensions top concerns

This week our focus turns to first thoughts from a panel of industry experts consulted by just-style on the challenges and opportunities likely to face the apparel supply chain in 2017, with prospects...

NEWS

UK clothing factory workers paid half the minimum wage

UK garment factory workers producing for fashion brands including New Look, River Island and Boohoo have been found to be working for less than half the minimum wage, an undercover investigation has f...

BLOG

Happy New Year – and a first look at 2017

Welcome back after the holiday break, and from the team here at just-style I’d like to wish all our readers a happy and prosperous New Year....

BLOG

New re:source to help unravel sourcing decisions

Apparel sourcing is a complex process built on a mix of location, logistics, lead-time, price, compliance, risk and reliability. And it's in a constant state of flux as retailers, brands and manufactu...

just-style homepage



Forgot your password?