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Knitwear drama in Waiblingen: warehouse sales instead of production!
Uwe Lösch sells 3,000 pieces of knitwear in Waiblingen because production at the insolvent factory remains too expensive.
Knitwear drama in Waiblingen: warehouse sales instead of production!
Uwe Lösch, who recently took over an insolvent knitwear manufacturer in East Germany, is pursuing ambitious goals with his new project. The entrepreneur plans to set up production for wool fashion “made in Germany”. However, the employees of the Thuringian manufacturer are currently facing considerable challenges as they have not yet been able to produce any new products. The high production costs are one of the main reasons why producing the required quantities is currently considered too expensive, as ZVW reports.
In addition, the report assumes that the fashion market is currently characterized by an overabundance of products. This market situation is forcing many companies to find creative solutions in order to survive in the competition. In this context, Lösch is now selling 3,000 selected items of clothing from its warehouse in Waiblingen, which could potentially support the manufacturer's liquidity.
Market situation and challenges in the fashion industry
The starting position for the fashion industry is anything but easy. In Germany, business is showing improvement, but the buying mood remains subdued. This has resulted in large companies such as Peek & Cloppenburg and Gerry Weber going bankrupt, to name just a few. These developments are attributed to various factors, including the energy crisis and reduced purchasing power of consumers. Tagesschau emphasizes that the challenges in the industry are also due to increased logistics costs and raw material prices.
Although there was a 10.8 percent increase in sales last year, the outlook for 2024 remains worried, with stagnating sales expectations and a negative earnings trend. This shows that the fashion industry must adapt in both brick-and-mortar and online retail in order to remain competitive.
Strategies for stabilization
On the other hand, some companies are planning expansions and strategic changes. C&A, for example, has announced that it will expand its branch network in Germany from 388 to over 400. At the same time, they want to become more flexible in the procurement of goods in order to be able to react more quickly to market changes. The challenges posed by Asian online clothing retailers like Shein, which are under pressure thanks to their flexible business models, are another important aspect that companies in the industry need to consider.
Overall, the current situation shows that the fashion market presents complex challenges for both established companies and newly founded companies such as Löschs Strickwarenmanufaktur. Developments remain to be seen as portfolios and strategies need to be reconsidered to respond effectively to the prevailing market dynamics.