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    India Garment Buyer Pays Serious Breach Of Contract. Chinese Enterprises Should Pay More Attention To It.

    2015/1/26 13:52:00 22

    ClothingIndiaGarment Industry


      


    India's economy has been slowing down for a long time.

    clothing

    The downturn in retail industry has led to the fact that garment manufacturing industry is constantly facing the problem of payment default by bulk buyers.

    India garment buyers are paying a breach of contract in China, and this may happen when they purchase internationally. Chinese clothing exporters should pay more attention when dealing with India buyers.

    Recent reports show that:

    India

    Rahul Mehta, chief executive of garment manufacturers association, said that the normal payment cycle is usually 30 to 60 days, and now it has been extended to 6 to 8 months, which has led to the payment crisis of the whole garment industry.

    In some extreme cases, buyers disappear without payment.

    The India Garment Manufacturers Association (CMAI) has increased the membership of the industry arbitration committee from 4 to 15, in order to provide an arbitration representative seat for every subdivision of the garment industry.

    In addition, 80 volunteers formed supervision teams to monitor developments.

    These volunteers represent the interests of garment industrial real estate and apparel industry cluster.

    The garment manufacturers association also appealed to wholesalers, distributors, agents and retailers in the clothing industry to hold a meeting in Mumbai to discuss this issue.

    Most garment manufacturers need to wait for a 18 month "silent period" before applying for the chairman of the CMAI arbitration board.

    The output value of clothing industry in India exceeded 45 billion US dollars.

    Because of the

    Clothing industry

    Involving many links such as retailers, distributors and agents, the industry structure is also very dispersed, so many clothing companies have no way to control their accounts receivable.

    To this end, the India Garment Manufacturers Association launched a motion, and unite all stakeholders in the garment industry to ensure timely payment by all parties.

    Rajesh Masand, vice chairman of the arbitration committee of the India Garment Manufacturers Association, said that once the association accepted the complaint of breach of payment, it would convene the two parties to solve the problem through friendly negotiation.

    If this way can not solve the problem, the association will disclose the bad behavior of the 80 defaulting parties to the stakeholders of the garment industry.

    These people or companies will spread the bad behavior of the defaulting to other colleagues' ears, so that the defaulting can not stand in this field.

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