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    Economic Slowdown Slows Garment Manufacturers

    2012/11/1 15:58:00 17

    NikeMetersbonweGiordano

    Yang Donghao, chief financial officer of vip.com, said that more than 3000 brands have been in contact with vip.com this year, hoping that we can help them sell unsalable goods, which is 58% higher than the same period last year.

    The company's sales revenue increased more than two times over the two quarter of this year to $135 million 300 thousand, making the four year company closer to achieving profitability.


    Yang Donghao said that last year, too much inventory was only a sportswear manufacturer.

    There are a lot more companies in the backlog this year.

    Yang Donghao said that the 2008 Beijing Olympic Games is the reason why sportswear manufacturers' inventory has been difficult to digest.

    China's economic slowdown is affecting consumers, dragging down.

    clothing

    Garment manufacturers have been investing money to expand their capacity in China in terms of sales growth in the Chinese market.


    Figures from China's National Bureau of statistics show that overall retail sales in September increased by 14.2% over the same period last year, down from the 17.7% year-on-year growth rate in September 2011.


    Nike said last month that sales in the Chinese market are weakening.

    VF Corp., which owns the jeans brand Lee, the outdoor brand North Face and the boots brand Timberland, says it has increased the discount of some products.


    Bain, partner of consulting firm Bain & Co. in Shanghai, said that the era of rapid growth of China's garment industry has ended. Han Weiwen

    China's economy will not return to the era of two digit growth.

    Many retailers around the world have been looking for growth opportunities in China.


    Boston Consulting Group predicts that 30% of the global fashion industry's growth will come from China in the next five years, Consulting.


    Coach Inc., an American handbag and garment manufacturer, said last year that the company is striving to pform China into its largest market in the next three years, and plans to set up larger stores to display sweaters and coats other than handbags.

    Messi, the American chain store, invested 15 million dollars in a Chinese website in May this year.


    The slowdown in economic growth has the biggest impact on Chinese brands.

    Last year, Shanghai Metersbonwe

    Clothes & Accessories

    Limited by Share Ltd's stock accounts for 50% of its net assets, and its stock price has fallen by about 25% this year.

    A spokesman for the company did not respond to requests for comment.


    Giordano International Ltd, a casual apparel producer, reported that its sales in China in the first half of the year fell 4% year-on-year.

    The company is headquartered in Hongkong and has about 1350 stores in China.


    But as Nike has shown, multinational garment producers are also immune.

    The US sportswear producer said its orders in China fell 6% year-on-year in the quarter ending August.


    Cavender, a senior analyst at China Market Research Group, said that the reality is that many brands will have to cope with too many inventories. They have overworked and are now at risk of their brands.


    Last year, China's clothing sales increased 15% to 460 billion yuan (73 billion US dollars), according to Boston consulting company.


    VF Corp. said it has offered a bigger discount sale in China this year to clear up inventory.

    Aidan O 'Meara, the company's Asia Pacific CEO, said that the environment is a discount, so you have to join it, otherwise you will lose market share. OMeara,


    The US based company recently told investors at a conference that sales in mainland China and Hongkong are expected to rise 23% to $460 million this year, including sales of the company's brand acquired last year.

    Last year, its sales in China increased by 73% (adjusted by the purchase of Tim Pak LAN).


    Giordano chief financial officer Erwin (Dominic Irwin) said that the company is adjusting its marketing strategy to fight more advertising campaigns in different regions and cities in China, and has been controlling inventory.

    He said Giordano had not been able to buy new clothes for its stores for more than six months.


      

    Irving

    In the light of China's economic situation, we expect no significant rebound in sales.

    Sales of various companies are declining.

    But OMeara of VF Corp. said the slowdown is relative, because in the long run, China's growing middle class group will promote sales of clothing.


    Halas, an economist at Brookings Institution, said that about 247 million people in China, accounting for 18% of the total population, could be classified as middle class, which means that their average household expenditure per day is between 10 and 100 dollars.


    If the current mode continues, there will be 607 million Chinese middle class groups by 2020.

    Some garment manufacturers announced that they have achieved good performance in China.


      

    Sweden

    Chain store Hennes & Mauritz AB said sales in the first nine months of this year surged to 3 billion 800 million Swedish kronor (US $568 million 600 thousand), an increase of 56% over the same period last year.

    The company has 109 stores in China.


    Lv Huang, a partner at Boston consulting firm in Hongkong, said that in general, the retailers of these fast fashion clothes (which they ordered in advance for weeks rather than a few months) had better performance than their competitors because they could react quickly to the changing market without having to digest many stocks through the sale of Vincent Lui.


     

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