Rate of Growth is slowing

Rate of Growth is slowing

By Virginia F. Bodmer-Altura

Taking a glimpse of fashion retailers and other textile relevant business we note that the rate of growth is slowing, however the cause of this fact is not uniform.

The European crisis has a great effect on consumer behaviour and therefore European fashion retailers report lower turnovers. Affected are foremost the ones with offerings in the medium to middle price brackets whereas luxury brands still have a more thriving business thanks to their customers disposing of more spending money and because new customers arise in Asia and Eastern Europe.

That there is a general slowdown might be also witnessed by the results of chemical companies delivering textile colorants and chemicals as well as effects to the industry, thinking of BASF the German giant and Swiss Clariant. BASF has the advantage over Clariant because the balance sheet is based on EUR and this makes exports less expensive however costs of raw material did not decrease as expected before. On the other hand Clariant has to struggle with a strong CHF and therefore the worldwide results are affected.

China has already signalled that it is not the life belt for Europe and financial analyst determined the solution offered by EC ministers as a short time calming medicine but not solving the basic problems. The U.S.A. is somehow showing improved figures but analysts there doubt the published figures. Therefore all of us should be prudent to think that we are already moving out of the crisis. I would assume that we need to see what coming months – probably until the first quarter results of 2012 – present in real figures and to witness if the (financial) world is coming to terms to manage successfully its future and this will have an effect on the future development of all relevant textile industries and textile machinery business. Therefore don’t mirror the first success as a definite result and be prudent in budgeting and planning your own textile and textile machinery business.

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