Slump in Chinese economy brings down manufacturing cost for British fashion labels

The Chinese economic meltdown is not bad news for everybody, as some British fashion companies that use factories in the oriental country will experience lower costs in manufacturing.

According to This Is Money, some small British firms like 33 Joints, which designs the footwear of brands like Firetrap, Blowfish Malibu, and Original Penguin, use factories in China and India to manufacture their products. This footwear producer expects the cost of manufacturing to come down as Chinese economy slumps.

China's stock market experienced its biggest fall for one day since 2007 in August 24, reports Economist.com. This caused currencies from emerging-markets to fall. Commodity prices dropped to territory lower than what was experienced in 1999. This economic meltdown affected Western Markets as well. Some rich-world markets may have regained their stability, but fears of vulnerability are still present among various markets worldwide.

33 Joints Chairman Malcolm Nathan said they may benefit from the Chinese currency devaluation. "Selling to China may be harder, but with things gradually improving in the UK, we should be in a good position as importers," said Nathan, who founded the footwear company in 2006 with his son Antony. Nathan expects turnover to go up £15 million or £20 million in 2015 from last year's £12 million. He

Said 50 to 60 percent of their shoes are made in China.

Right after the devaluation of Yuan, giant western retailers seem to be celebrating. Reuters.com reported that the retailers can take advantage of the lower manufacturing cost in China. They are negotiating production cost to prepare for the possibility that Chinese and other Asian currencies may drop further.

Challenger bank Aldemore chief executive Philip Monks is optimistic on the effects of the Chinese economic slowdown on UK's small business sector.

China's financial issues may have adverse effects on UK's Gross Domestic Product. "You're seeing it already with the mining industry, the oil and gas industry - all of those sectors where China has been a significant buyer of commodities and fuel," he said.