Garment manufacturers stuck with unsold stock as multi-brand firms seek discount, Retail News, ET Retail
Ludhiana: In a large setback to town-dependent garment suppliers who provide their merchandise to the multi-brand name corporations and corporates, crores of rupees really worth their capital has obtained trapped in sort of unsold summer season garments. This unusual difficulty which the suppliers are witnessing for the first time has taken position as the corporations are pressurising the suppliers to give them discount rates ranging from 10-30% on the previously confirmed get, deliveries for which had been nevertheless to be built, in some situations even the discount rates are staying questioned on the previously shipped consignments.
The corporations are justifying their demand for hefty price cut by citing losses incurred owing to the lockdown and decrease in demand. On the other hand, Ludhiana suppliers are of the perspective that they also have suffered substantial losses and in addition, the selling prices at which they provide their garments to these corporations are previously quite minimal and if they go ahead with the discounting they will incur additional losses.
Talking to TOI about the difficulty, Harish Dua, president of Knitwear and Attire Exporters Organisation explained, “Crores of rupees in investment of garment suppliers of Ludhiana has obtained trapped in summer season garments as some of the large garment brands and corporates, whom we provide garments, are refusing to settle for deliveries of the previously ordered merchandise as they are inquiring for twenty-30% price cut on the previously agreed selling prices. The officers of these corporations are saying that because they have suffered substantial losses during lockdown, so they want us to cooperate with them and offer them price cut so that they can be compensated for their losses. How can we settle for their unjustified demand as the selling prices for these had been previously agreed on by both events and in addition, the price cut proportion is also significant to be recognized.”
Dua additional that, “This is turning out to be a quite large difficulty as the garments made by us for these corporations have their brands names and are as for every the designs finalised by them, thus ,we cannot even offer them anyplace else to encash our income trapped in these. I feel it is significant time the central govt will take observe of this difficulty and get the corporations to make complete payments to us against their orders.”
According to Narinder Mittal, basic secretary of Ludhiana Business Forum, “Garment suppliers of Ludhiana who are suppliers to the large brands are having sleepless nights as substantial volume of their income has been trapped in such a way that they do not have any answer to the difficulty other than compromising with these corporations or else preserve their income trapped in sort of the garments which cannot be bought anyplace else. There is no question that the large brands and corporates having large showrooms in the nation have also suffered substantial losses owing to the lockdown but we also have suffered losses. Aside from, these corporations are previously obtaining garments at such affordable fees that there is hardly any first rate margin for us in the business carried out with these corporations. So, inquiring for price cut of up to 30% from us is entirely illogical and unjustified as perfectly.”
Atul Saggar, basic secretary of Attire Manufacturers Affiliation, Ludhiana, explained, “For the previous sometime my consumer experienced blocked my dues on the pretext that his corporation has suffered large decline during the lockdown and I must give him a price cut of twenty% on the get provided to him. With a substantial sum of income blocked with my consumer, I was not able to have on even more business and manage other fees. I agreed to give him 10% price cut and it was right after this that my payment was released.”
