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Chinese sportswear brands will regain normalcy in 2014
23
Mar '13
Chinese sportswear brands are still mired in crisis due to sluggish sales and inventory backlog. Although industry analysts expect the overall situation for domestic sportswear sector to improve this year, the recovery will take longer than expected and a sense of normalcy will only be seen early next year.
 
At the moment, major global sportswear firms that have been movers and shakers for long time in the Chinese market are simplifying their channels and launching ‘factory stores’ to give high quality at lower price to consumers.
 
On the other hand, the Chinese brands are facing inventory backlog, declining sales and many other issues at present. The 1.4 billion yuan recovery plan of Li Ning stores shows the current plight of domestic brands.
 
Thus, the Chinese brands are facing difficult situation from dual-end – one due to their huge stockpile and lacklustre demand, and the other due to stiff competition as global players open their own factory outlets across the country.
 

Fibre2fashion News Desk - China


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