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Apparel inventory of China goes beyond the warning line
Author: MIG CLOTHING LIMITED Time:2012-4-27

The inventory of many domestic apparel brands has come to the verge of the industry's critical point. It is said in apparel market that the present stocks are enough to meet the demand in domestic apparel market for three years even if all apparel enterprises of China stop production. Compared with other industries, the apparel sector demands considerable capital input because most capital of apparel enterprises is usually put into production. For instance, the summer collection was just launched into market, while spring collection has already been put into production. Overlapping investment tightens the capital chain of apparel enterprises all year round. High inventory will directly lead to the break of capital chain. Enterprises have to shut down unless they can effectively relieve the tense capital chain. The pressure from high inventory has forced those pioneers of the apparel industry to seek other roads to fortune, and many apparel enterprises have turned to other sectors.

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