loader image

FASHION VALUE CHAIN

China, the second-largest economy in the world and the biggest exporter of clothing, has experienced extensive lockdowns as a result of its zero-Covid policy, which has resulted in the closure of numerous firms, including centres for the production of clothing.

Exclusive information from apparel experts to Just Style indicates that the global apparel sector is already gravely concerned about the policy’s potential to disrupt business. Many Western fashion businesses with operations in China suffered unheard-of financial losses in the first half of 2022 as a result of China’s Covid policy, according to Dr. Sheng Lu, associate professor of fashion and apparel studies at the University of Delaware.

In fact, he claims that certain fashion firms had a sales decline of more than 50% as a result of having to close their physical stores and having a little e-commerce presence in China. He also makes note of the fact that clothing manufacturers anticipate China’s COVID-related limitations to last well into the third quarter. According to Lu, China is a vital source of textiles for many of Asia’s top exporters of apparel. As China’s textile industry is hampered by the zero-Covid policy, yarn and fabric shortages have affected clothing manufacturing throughout many Asian nations. The zero-Covid policy in China, according to Bob Antoshak, a partner at Gherzi Textile Organization, has only accelerated the growing trend of diversifying garment sourcing away from Chinese producers.