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Winter sales in Hangzhou increased significantly "productivity" tension
The sudden arrival of a cold wave caught many clothing business owners off guard. With temperatures dropping faster and more severely than expected, the winter sales season started nearly a month earlier than usual. This unexpected shift left garment manufacturers scrambling to meet the surge in demand, especially in the northern regions where the weather turned drastically colder than anticipated.
Many women's clothing producers in Hangzhou, which typically rely on seasonal forecasts, were unprepared for the early cold snap. As a result, they found themselves in a tight spot, struggling to fulfill orders from across the country. In response, garment companies began reaching out to external processing plants, trying to boost their production capacity. Over the past few days, several major brands such as "Qiu Shui Iraqis" and "COCOON" have been adjusting their production schedules, while companies like Zhejiang Impression Industrial Co., Ltd. have ramped up their operations.
According to Tsui Jian, the chairman of one such company, the cold weather led to a significant increase in winter sales. Compared to the same period last year, sales rose by at least 15%. Similarly, Hangzhou Chia-fan Clothing Co., Ltd. reported a 60% increase in winter sales this season. However, the surge in orders has also exposed a shortage of labor and production capacity in the region.
Some companies are now turning to outsourcing to meet the demand. For example, Hangzhou Jane Qian Clothing Co., Ltd.'s General Manager Chen Xiaohua has been contacting multiple processing factories across the province, with over 20 partners now involved. While some of these are long-time clients, others were added due to the increased workload.
Meanwhile, companies that previously focused on foreign trade are now shifting their attention to the domestic market. With overseas orders declining, many foreign trade firms are using their spare capacity to fulfill domestic demand. However, this transition is not without challenges.
Chen Shengyao, Secretary-General of the Hangzhou Garment Industry Association, noted that labor shortages have been an ongoing issue since the start of the year, with many migrant workers returning to their hometowns earlier than usual. This has made it harder for women's clothing companies to find enough workers, prompting some to consider moving production to central and western China, where labor costs are significantly lower—by 30% to 50%.
Despite these efforts, there are still difficulties in managing the supply chain. For instance, the lead time for production in the central and western regions often doesn't match the fast-paced demands of the fashion industry. If production is delayed, products can quickly become outdated or end up in inventory, which is a risk no one wants to take.
In short, the current situation reflects both opportunities and challenges for Hangzhou’s women's clothing industry. While the cold wave has created a sales boom, it has also exposed vulnerabilities in the supply chain, labor force, and production capabilities. These issues may persist for some time, forcing companies to adapt and rethink their strategies moving forward.