NATIONAL: Australian fashion retailers have been warned against placing finished orders in bond, with reports international players are doing just that to cork excess inventory.
Logistics providers in Southern China have recorded a sharp increase in the number of European and US retailers bonding stock in offshore warehouses.
Melbourne-based Dean World Cargo, which offers supply chain solutions across China and South East Asia, indicated its Shenzhen warehouse was carrying substantially greater levels of fashion product than in previous years.
Haines believed US and European retailers would continue to embrace this strategy - but had yet to see a widespread move by Australian importers.
Australian Centre for Retail Studies program director Andrew Cavanagh said he did not believe placing stock in bond was a viable solution for fashion retailers with excess inventory.
In addition to the cost of warehousing, holding finished product could play havoc with seasonal and coordinated colour palettes and lose customers on the hunt for new collections, he said.
For more see the July 17 issue of Ragtader available from news stands tomorrow.