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Garment exporters opt to be suppliers for local retailers
18
Aug '11
As the global economy is still recovering from financial crisis, Vietnamese garment exporters are opting to be suppliers for local retailers.

Exporters who employ skilled workers and have capacity to churn large output are facing a problem of large inventory and low profit margin as well as low return-on-investment.

The margin of profits from exports have dropped to below 10 percent due to the global financial crisis, and now the exporters understand that if they set the same 10 percent margin for the domestic market, they will be able to have advantage over competitors.

The garment exporters have expertise at manufacturing high-quality products at affordable rates. They also have the capacity to supply garments in large volumes without any need for additional initial investments or materials.

Some of the exporters who tried to directly enter the domestic retail market have incurred loss due to lack of experience in retail business. Hence, now they are willing to supply to local retailers.

Fibre2fashion News Desk - India

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