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Inventories swell at Chinese garment factories: CNGA
Jun '13
The inventories with garment manufacturing units in China have been rising in recent years, according to the China National Garment Association (CNGA).
The association said the inventories with garment factories have risen to such a level that even if all the garment units across China closed, the stock would be enough to last for three years, chinadaily.com.cn reported.
The high inventory is despite a steady growth in apparel sales in recent months. In May 2013, apparel sales rose 6.6 percent year-on-year.
Meanwhile, the retail sales of clothing and textiles in China grew by 10.9 percent year-on-year to 84.7 billion yuan.
The China National Textile and Apparel Council (CNTAC) cited two reasons for the high inventories with garment units. First, the Chinese clothing brands have grown at a rapid pace in recent years, while the purchasing capacity of customers has not increased to the same extent.
Secondly, in order to reduce costs, some garment companies produced goods in large quantities, leading to a “sameness” in products, which is not liked by potential buyers.

Fibre2fashion News Desk - China

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