Langsha Group, China's largest sock manufacturer, temporarily
stopped cooperating with Wal-Mart this July because the latter
offered unacceptably low prices for purchase orders.
Currently, Chinese sock manufacturers noted that their
production costs are soaring. Many EU purchasers have agreed to
raise unit prices in purchase orders. Wal-Mart, however, insisted
on its previous low offer price, leaving no profit margins for
manufacturers. Neither Wal-Mart nor Langsha could compromise on the
price issue so they split up. Fortunately, they have reached an
agreement recently and Langsha has begun making medium- and
high-priced products for Wal-Mart.
According to Cao Xinyu, vice chairman of the China Chamber of
Commerce for Import and Export of Textiles, in addition to Langsha
there are some other textile companies that surrendered purchase
orders from Wal-Mart due to excessively low offering prices. This
reflects great progress to improve on the part of Chinese textile
companies, Cao added.
For more details, please read the full story in Chinese. (
(China.org.cn December 7, 2007)