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Winter sales in Hangzhou increased significantly "productivity" tension
The sudden arrival of an early cold wave caught many clothing retailers off guard, as the prolonged drop in temperature exceeded the expectations of garment manufacturers. This led to a significant shift in the winter sales season, which advanced by nearly a month. Due to poor weather forecasting, most women's clothing manufacturers in Hangzhou were unprepared, resulting in a shortage of production capacity. Faced with a surge in winter orders from across the country, garment companies began scrambling to secure additional production resources.
Over the past few days, many garment companies in Hangzhou have been busy reaching out to external processing plants. Brands like "Qiu Shui Iraqis," "COCOON," and Zhejiang Impression Industrial Co., Ltd. have had to adjust their workshop schedules urgently. According to Tsui Jian, the chairman of one such company, down jackets typically don't start selling in the northern market until later in the season. However, due to the unexpected snowfall, many stores quickly ran out of stock. Tsui Jian said that this year’s winter sales have increased by at least 15% compared to the same period last year.
Similarly, Hangzhou Chia-fan Clothing Co., Ltd. has also seen a dramatic rise in sales, with the sales manager Yu Wenhui reporting a 60% increase this season. The surge in orders has caused some garment companies in Hangzhou to face labor shortages and tight production capacities. For example, Chen Xiaohua, general manager of Hangzhou Jane Qian Clothing Co., Ltd., has been contacting various outsourcing factories across the province. “This year, we've partnered with over 20 factories, both big and small,†she said. Some of these are long-time partners, but due to the 30% increase in winter orders, new ones were added.
In contrast, Tsui Jian has shifted focus to foreign trade manufacturing enterprises. With many foreign trade companies facing declining orders, these factories have been able to fill the gap in domestic demand. The reason for choosing these companies is their extensive production experience and technical expertise.
Interestingly, the production bottleneck in Hangzhou’s women’s clothing industry has been evident since the beginning of the year. According to Chen Shengyao, secretary-general of the Hangzhou Garment Industry Association’s women’s branch, there has been a mass return of migrant workers in Zhejiang, leading to difficulties in recruitment for many women’s clothing companies. As a result, some businesses have started planning to move their production facilities to central and western regions.
Chen Xiaohua noted that production costs in the central and western regions are 30% to 50% lower than in Hangzhou, making it more suitable for foreign trade orders. However, the challenge lies in the timely replenishment of overseas processing plants. Tsui Jian pointed out that a typical garment order takes about three weeks from placement to delivery. In contrast, some central and western region factories struggle to meet this timeline, risking excess inventory.
This short-term conflict may persist in the long run, leaving Hangzhou’s women’s clothing bosses stuck in a difficult situation.