The Canton Trade Fair is the oldest trade fair in China and has historically been a major stimulus for China's textile and apparel industry -- the 103rd season of the fair was just held. The fair ushered in an era in which manufacturers and exporters initiated their major sales efforts through trade forums, where buyers from around the world convened to secure their needs for the coming year. However, this year's fair had a different tone, as the industry has come to realize that export orders alone are no longer the ticket to success.

At this year's fair, exporters were forced to raise prices, given the sharp increase in their own cost structure. In addition to the overall mood, buyers had to focus on markets outside of the U.S. to a much larger degree, following the yuan/U.S. dollar exchange rate momentum. Arranged export orders for textiles and apparel at the 103rd Fair declined 17 percent year-on-year to 2.5 billion U.S. dollars, while export orders for other products offered at the fair such as toys also decreased -- toy orders fell 11 percent. For textile and apparel exports, the reduction in orders will only add to the sector's woes.