Fashion suppliers in China fear regional lockdowns will have serious long-term impacts on their stock levels, profit margins and retailer relationships. As per a Drapers Online report, since July 7, China has enforced lockdowns in urban areas throughout large areas of Eastern China, including parts of Beijing, Shijiazhuang, Nanjing and Heilongjiang, China's northern-most province. The lockdowns have led garment and textile factories across the country to temporarily close, while workers have been instructed to self-isolate at short notice.

This has caused chaos for fashion suppliers that are struggling to get hold of textiles and garment components, and to ship in to the UK without incurring additional fees for both the fabric and the shipping. Closure of factories is leading to an acute shortage of elastane fabric which is currently in high demand. Suppliers have been panic buying stock to book as many containers as they can before it runs out. They are also reporting steep rises in the costs of containers

Because of the lockdown, some retailers are asking suppliers to shoulder the increased costs of shipping. They are putting in bigger orders to try to ensure stock levels and shipping fees have increased because of the uncertain environment.

Suppliers warn retailers could experience severe stock delays. However, businesses that do not export material from the Far East have been able to take advantage of the challenging environment as they have been able to pick up orders due to these delays.

By Fashionating World
https://www.fashionatingworld.com/new1-2/lockdowns-may-impact-stocks-profit-margins-fear-china-s-suppliers