Home / Knowledge / News / Apparel/Garments / Inventory piles up with Chinese clothing retailers
Inventory piles up with Chinese clothing retailers
20
Feb '12
Large unmanageable inventories have become the order of the day for large and medium-scale enterprises in the Chinese clothing manufacturing and retail sector.

Buoyed by the increase in demand for clothing in domestic and global markets, clothing companies set up large units to achieve economies of scale.

However, the current slowdown or stagnation of demand in both these markets is proving to be a thorn for these Chinese garment producers.

Experts from the industry are of the opinion that the inventory lying with apparel factories is enough to meet the demands of the Chinese market for two years, even if all the factories close down.

The financial results of Metersbonwe ending September 2011 reveal that the company's inventory value stood at 2.982 billion Yuan, or 83 percent of its net assets.

Xtep's inventory value grew by 92 percent to reach 887 million Yuan last year.

Adidas's sales in some areas in China have seen negative growth; Production is rising, while sales are on the decline, causing a lot of inventory backlog.

High inventory means a lot of money gets struck, which ultimately leads to cash flow problems for the concerned company.

Many of these companies have reached the critical point and a further increase in inventories could lead to disastrous consequences, aver experts.

Insiders from the industry attribute this situation to an oversupply situation as garment producers and retailers set up new plants or expanded.

However the demand is not enough to meet the expanded production volumes.

Fibre2fashion News Desk - China


Must ReadView All

US announces final CVD on fine denier PSF from China, India

Textiles | On 19th Jan 2018

US announces final CVD on fine denier PSF from China, India

The US secretary of commerce Wilbur Ross recently announced the...

EU consumers to gain from cheaper, safer, better e-payments

Apparel/Garments | On 19th Jan 2018

EU consumers to gain from cheaper, safer, better e-payments

European consumers can now reap the full benefits of paying online...

Courtesy: Epson

Textiles | On 19th Jan 2018

Epson's new SC F2100 enhances DTG printing

Epson, a leader in inkjet printers and digital textile printing...

Interviews View All

Cindy McNaull
Cordura

We have broad range of options in durable fabrics

Abhimanyu Singh Rathore & Barbara Anna Kosiorek
Kannbar

‘Blending cultures is the true beauty of fashion, where one’s imagination...

Rahuul Jashnani
Jashn

‘Online economy has changed the whole dynamics of buying habits.’

Anupam Arya

<div>Jaipur-based Fabriclore Retailing Pvt. Ltd. is attempting to revive...

Sandip Bhojani, Manthan Patel

Krypthm Tradelink LLP is a Surat-based manufacturer of westernwear....

Ravindra Jain, Ashish Baid

Oswal Prints Private Limited has been manufacturing and exporting ethnic...

Steve Cole
Xerium Technologies

Steve Cole of Xerium Technologies discusses the industry. Xerium is the...

Kai Poehler
Voith Paper GmbH & Co. KG

The glass mat industry is growing by five to eight per cent annually. Kai...

Iago Castro Asensio
RCfil Distribuciones S.L.

Iago Castro Asensio, International Business Manager of RCfil...

Sidharth Sinha
Sidharth Sinha

<b>Sidharth Sinha</b> has contributed to the successful rebirth and...

Ritu Kumar
Label Ritu Kumar

‘Classics will return’ "There are a lot of people wearing western clothes ...

Robert Brunner
Devereux

Golfwear and menswear brand Devereux is set for greener pastures. Robert...

Press Release

Press Release

Letter to Editor

Letter to Editor

RSS Feed

RSS Feed

Submit your press release on


editorial@fibre2fashion.com

Letter To Editor






(Max. 8000 char.)

Search Companies





SEARCH

January 2018

Subscribe today and get the latest update on Textiles, Fashion, Apparel and so on.

news category


Related Categories:

Planning to Take the Leap towards
Sustainability?

Do you see sustainability as a route to business growth?

Yes No

Do you think the sustainability space has the needed tools and resources available for a business to lead change?

Yes No

Active Poll

Do you see sustainability as a route to business growth?

Yes
69.1%
No
13.4%
Skip
17.5%

Total Votes: 97

Do you think adopting a sustainable approach will be a profitable move for your business?

Yes No

Active Poll

Do you think the sustainability space has the needed tools and resources available for a business to lead change?

Yes
63.9%
No
28.9%
Skip
7.2%

Total Votes: 97

Do you want the world to know about your sustainability journey and your business’ environmental footprint?

Yes No

Active Poll

Do you think adopting a sustainable approach will be a profitable move for your business?

Yes
87.6%
No
9.3%
Skip
3.1%

Total Votes: 97

Thanks for your valuable feedback. Claim your free latest sustainability e-book.

Active Poll

Do you want the world to know about your sustainability journey and your business’ environmental footprint?

Yes
82.5%
No
8.2%
Skip
9.3%

Total Votes: 97


E-News Insight
Subscribe Today and Get the
Latest News Update in Your Mail Box.
Advanced Search