Clothing Industry Inventory Chain In Crisis

What are the urgent problems for garment enterprises to solve this year? Nine out of ten will tell you that they are“ High inventory ”。 There are many reasons for high inventory, one of which is the gradual amplification of demand. According to industry insiders, in China's clothing industry, every time a commodity is sold, the manufacturer has to prepare at least 2.5 pieces of goods for inventory turnover, sometimes exceeding this ratio, thus forming a large amount of inventory. In addition, China's clothing industry still stays in the order meeting mode, relying on downstream distributors rather than consumers to provide market information. A sales director said: "what we vigorously produce in the current period are all the popular styles of the previous issue, and we are always following the trend rather than leading the trend. How can this stimulate consumers? "

The above industry also said that under the influence of the current high inventory crisis, clothing enterprises or Discount promotion , or cooperate with online stores to clear inventory, and some through wholesale channels to ease the pressure.

In addition to downstream clothing, the upstream industry is also facing high inventory problems. The monthly forecast of global cotton supply and demand released by the U.S. Department of Agriculture released the forecast data for 2012 / 13 for the first time. Due to the excessive production and demand of 1.466 million tons, the global cotton final inventory will record a record high for the second consecutive year.

"Since this year, our Full stock rate All the way up, now more than 90%. " The general manager of Qingdao Hongchuan Logistics Co., Ltd. of Qingdao Qianwan free trade port said that the company has a bonded warehouse of 20000 tons of cotton in the bonded port area. In the past, the full stock rate was generally maintained at about 50%, and the highest would not exceed 70%. However, from the end of last year to this year, the full stock rate has soared, and now it has exceeded the warning line.

What causes the surge in cotton inventory? On the one hand, the increase in international cotton production has led to a plunge in cotton prices, and the enthusiasm of cotton merchants to import has increased, and the domestic cotton supply has also greatly increased; on the other hand, the economic downturn has led to the sluggish demand of downstream enterprises. Downstream cotton textile enterprises will maintain factory inventory at the level required to meet two months of production.