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

Trump moves forward on tariff threats

The ongoing tariff war between the US and China took another turn last week in a move US apparel and footwear retailers and importers have been dreading, as the Trump administration moved forward on t...

BLOG

US-China trade war takes a turn for the worse

Just as it seemed the ongoing US-China trade war was heading into the final round of talks, US President Donald Trump last week escalated the dispute by hiking tariffs on $200bn worth of Chinese expor...

BLOG

Primark defends position over unfair dismissal allegations in Bangladesh

Value fashion retailer Primark has defended its position following allegations that workers at its supplier factories in Bangladesh were dismissed for taking part in protests over low wages – and says...

BLOG

Reflecting on Rana Plaza

Last week marked the sixth anniversary of the Rana Plaza building collapse in Bangladesh – with just-style taking a step-by-step look at the changes that have been made to improve worker and building ...

just-style homepage



Forgot your password?