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Chinese apparel businesses facing four major problems
22
Aug '13
Clothing enterprises in China are facing four major problems, according to experts.
 
The first major problem is the overall excess capacity of garment enterprises in China, resulting in supply being greater than aggregate demand.
 
Secondly, competition between enterprises producing homogeneous commodity has become very serious, resulting in serious decline in profitability.
 
Thirdly, the pace of development of garment enterprises has significantly reduced. It is because China’s economic growth model being under structural adjustment has somewhat impacted people’s income and thereby consumer demand in market, thus reducing the development of clothing firms.
 
Finally, there is lack of innovation model to meet the changing market demands. After nearly thirty years of rapid development, companies do not have a business development model to respond to the changes in market demand.
 

Fibre2fashion News Desk - India


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