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Chinese denim firms witness sharp decline in orders
May '13
Normally, the season for placing denim orders for the autumn and winter season begins in March and April every year.
There are over 2,000 denim manufacturing enterprises in Shunde’s Jun’an. Most of these enterprises are witnessing a sharp decline in volume of orders placed by global brands this year.
For some companies, the quantity of orders placed by global brands has declined by as much as one-eighth of their previous order volume.
For example, Jun’an bagged US Polo orders for about 60,000 pieces of jeans in the second half of last year, but the number has shrunk to about one-eighth for this year’s autumn and winter season.
Similarly, orders have shrunk considerably from other brands like Seven Wolves, Lee Lang, Jiumuwang and Camel.
According to industry experts, weak demand from end consumers is the main reason for sharp dip in orders from both domestic and foreign brands for this fall and winter.
While the demand is weak in the US and European markets for foreign brands, domestic brands are faced with excessive inventory due to blind expansion in recent years.
The present situation calls for transformation of the Chinese denim industry, and hence, the local government is encouraging denim manufacturing firms to focus on exploring domestic market rather than doing too much business in international market.

Fibre2fashion News Desk - China

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