Fashion Industry Says Purchase Order Cancellations Will Endure In Q3 And Beyond
A full 100% of fashion industry executives reported postponing or canceling apparel sourcing orders this year due to the pandemic, according to a survey of leaders from 25 fashion retailers, importers and wholesalers conducted for the United States Fashion Industry Association’s 2020 Fashion Industry Benchmarking Study. More than 60% of retailers in the survey said they have canceled or postponed less than one-third of their total orders. However, nearly 50% said the order cancellations and postponements go beyond the second quarter of 2020 and another 40% believe they could remain in effect until Q4 or later. Beyond the impact of COVID-19, fashion leaders listed U.S. “protectionist trade policies” as a top business concern for the third year in a row — making sourcing diversification an enduring resilience strategy. Twenty-nine percent of leaders surveyed said they now source more from Vietnam than they do from China, up from 25% in 2019. Read more at Retail Dive.
