Langsha Group, one of the biggest sock manufacturers in China, which had stopped cooperation with Wal-Mart, has again planned to work together with its largest dealer.
Wal-Mart which purchases products worth of about US $5 million from Langsha Group each year has come down to just $2 million this year. The reason behind such a shrink is rising production cost, which led to lower buying orders.
However, traders from many EU countries were willing to accept the rise in prices, which compensated Langsha's shortfall in revenue. Thus, both the companies were at loggerhead and stopped dealings.
It is learned, Langsha Group, which used to supply low cost products to Wal-Mart, now, have switched over high grades products and this condition has been accepted by Wal-Mart.
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Fibre2fashion News Desk - China
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