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China's Guangzhou apparel sector hopes better sales in H2
Jul '13
With the arrival of the traditional peak season, the apparel industry in Guangzhou, the capital and largest city of China’s Guangdong province, located on South China Sea coast, is expecting better sales in the second-half of the ongoing year.
The Guangzhou International Fashion Festival 2013, sponsored by the local government would be held from August 10-12, 2013, and would see participation of over 300 companies and more than 600 brands. But, the local apparel industry is still facing troubles.
Since last year, the domestic apparel industry is witnessing huge inventory pressure, and deep discounts are becoming an important issue facing the industry, according to the Guangzhou Garment Industry Association.
In the first half of this year, the sales of local apparel firms were basically flat compared to last year. Meanwhile, production costs continue to rise, which is leading to shrinking profit margins, especially of garment exporters.
In the given scenario, some small scale enterprises are facing closure, while some firms are even laying-off workers.
But, recently, some foreign enterprises have shown interest in working together with domestic companies.
However, the biggest problem facing the garment enterprises is the shortage of funds. It especially becomes difficult to get finance for small and medium enterprises whose strength is not good.

Fibre2fashion News Desk - India

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