Wednesday, 27 February 2013

Yangon's local clothing sales surge

Clothing makers in Yangon say the rising demand for clothing made from imported raw material and cotton, combined with a spike in local retailers, has lead to fiercer market competition throughout February.


“Sales have increased compared to last month because of [the demand for lighter clothing in the hot season], but because there are so many suppliers now, sales have not increased as much as they should,” said U Zaw Win on February 18, executive director of sales at BFC Men’s Fashion wholesale and retail centre in Yangon.

BFC imports raw materials from both Thailand and China. However, the company has started to focus on importing polyester and cotton mostly from China because it is cheaper than Thailand, U Zaw Win said.

However, locally produced clothing is seeing a sales boost amid stronger competition.

The owner of Shwe Wutt San ladies’ wholesale and retail clothing, who asked not to be named, told The Myanmar Times on February 18: “Locally made cotton clothes are selling more than in previous months because it’s hotter, but compared to last year, sales haven’t risen. I think suppliers need to make more of an effort now, because the number of suppliers who are now selling locally made clothing has increased significantly.”

The owner added that although suppliers offer imported clothes, it does not affect the local clothing market as locally made clothing is good quality while selling at a fair price.

“Locally made clothes have a higher quality than Chinese-made clothes and they are not as expensive as clothes made in Thailand, so locally made clothes have a high demand,” the owner said.

Wholesale prices for young men and women’s clothes produced locally range from K5,000 to K10,000. This February, sales for locally made clothing have increased up to 50 percent, said U Tun Kyaw, managing director of Yangon-based Step Fashion.

“The main problem with clothing that is not locally made is that takes about two months to settle on new fashion designs, and then the supplier must wait for materials for about one month. It cannot be made instantly,” he said.

This year, workers’ salary in the sector has risen. In an average factory, U Tun Kyaw said, there are about 600 workers who are paid between K70,000 and K100,000 a month.

In Myanmar, polyester and full percent cotton yarn are mostly imported from China, one of cotton’s largest world producers.

source: The Myanmar Times
http://www.mmtimes.com/index.php/business/4207-clothing-sales-spike.html

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