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Rising inventory mars prospects of China's apparel sector
Jul '13
Although Chinese apparel makers are excepting good prospects by the end of this year, the increasing production cost and huge inventory pressure may have a negative impact on the sector, according to industry representatives.

Speaking to fibre2fashion, Mr. Philip Roebuck, director of Dishang Group, said, “We are anticipating around 8 percent growth in Chinese garment exports in 2013.”

“Efficiency to produce high quality products attracts more buyers from international market to China,” says Ms. Pan, spokesperson of Changzhou Orient Sunshine International.

The Guangzhou International Fashion Festival 2013 which will be held from August 10-12, 2013 also brings hope to Chinese garment makers. Around 300 companies and more than 600 brands will be participating in the festival.

However, Mr. Roebuck says, “The growth of clothing industry in China will be uneven since several units are facing closure due to marginal profits.”

“Currently, there are large numbers of small and medium manufacturing units in the country who are marginally profitable and this has had an overall deflationary effect on pricing as these players win business due to low price,” he explains.

According to the China National Garment Association (CNGA), the inventories with the garment manufacturing units in the country have been rising in recent years.

The CNGA said the inventories with clothing 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.

Fibre2fashion News Desk - India

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