NewsTextiles & ApparelIndustryInternational Textile News

China’s zero-Covid policy makes a disruption for the apparel industry

BTJ Desk Report
China’s zero-Covid policy makes a disruption for the apparel industry

As China is pressing forth with its zero-Covid policy despite, it leads to an economic slowdown, and global fashion brands are reeling from the effects, reported media.

According to the media reports, China has seen closed down businesses including apparel manufacturing hubs due to widespread lockdowns under its zero-Covid policy.

However, China is the world’s second-largest economy and the largest apparel exporter.

Apparel experts told the media that the global apparel industry is already deeply concerned about the business disruptions caused by the policy.

Dr Sheng Lu, associate professor of fashion and apparel studies at the University of Delaware explains: “Many Western fashion brands operating in China reported unprecedented financial losses in the first half of 2022 due to China’s Covid policy,” according to the media.

Some fashion brands suffered a sales drop exceeding 50% as their physical stores had to close, and their e-commerce presence was limited in China.

He also points out that fashion companies expect China’s Covid-related restrictions to extend into the third quarter or even longer.

Moreover, China is a critical textile supplier for many leading apparel exporting countries in Asia.

As the zero-Covid policy disrupts China’s textile production, garment factories in many Asian countries struggled with a shortage of raw materials like yarns and fabrics, the professor explained.

Experts said that due to these factors, the sourcing companies are shifting their priorities on where they secure sources of supply.

As a consequence, there’s a surge in demand from countries such as Vietnam, Bangladesh, and India, they added.


Comment here