Li&Fung will be dropped from Hong Kong’s Han Seng index of leading quoted businesses from March 6, the index compilers announced on February 12.
Consultancy Bain believes Chinese spending on luxury goods, including apparel, will fall 2% in 2014 as “affordable luxury” becomes the new boom category.
H1 profit attributable to shareholders down 22.5% on sales up 1.3%.
Chinese apparel exports to EU “growing faster than domestic sales” – but falling to non-Western destinations
The dollar value of Chinese apparel exports to the EU grew 21.4% over 2013 in the first six months of 2014, while Chinese retail sales of apparel grew just 10% in RMB terms. Its apparel exports to the US grew 7.7%, exports to Japan fell 11.6% and its apparel exports to the rest of the world fell 0.2%. For the first six months, total apparel exports rose 4.3%, though the overall growth rate reportedly increased to 5.8% for the seven months to July (detailed data not yet available)
Scarcely a single spokesperson for a developing-country garment industry fails to claim their long-term future really lies in exports to China. And not one of them ever shows a shred of evidence they know what they’re talking about.
The dollar value of China’s apparel imports grew 21% in 2013 to $4.2 bn, or slightly more than Saudi Arabia and a lot less than Switzerland. The cash value of its import increase was one-sixth the increase in EU imports and less even than Korea’s increase.
The four major world apparel retail markets showed converging growth rates in the first quarter, with European growth accelerating while Chinese growth in the first quarter fell to a third of its growth rate in the past few years.
Garment sales up 8.7% year on year in Jan/Feb
For the first time this century, retail apparel prices rose in 2013 in the world’s four main apparel markets. But in all four, apparel inflation was lower than for consumer prices generally.
Hugo Boss said an an investor review in Hong Kong on November 26 it would not meet its target of €750m in core operating profit in 2015 because “a particular concern is China”. But the numbers simply fail to stack up.
Bosideng sales in the six months to September 30 fell 8.8% on 2012, in spite of growth in all its domestic and export markets. The company blamed China’s slowing retail sales growth, which it inaccurately claimed was “only” 6%.
Marks & Spencer revealed publicly on November 21 that their new global logistics strategy, based on a network of hubs and DCs, would cut delivery times from factory to Asian stores from 9 weeks to 1.5.
China’s garment retail stores increased their sales 13.3% year on year in September, bringing growth in clothing retail sales for the year to date to 12.2%.
Sri Lanka’s proposed fast-track trade deal with China looks likely to prove excellent news – for the Western buyers Sri Lankan trade garment trade spokespeople want to diversify away from.
Major garment retailers have begun to show growing coolness on their Indian and Chinese operations, while finding ingenious ways of keeping some involvement.