‘Glut of manufacturing capacity in sportswear’ – - sportstextiles: Lea SportsTextiles

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‘Glut of manufacturing capacity in sportswear’ – 361 Degrees

12/08/2015
Chinese sportswear brand 361 Degrees has admitted the lower cost of raw materials, particularly cotton and oil-based derivative products, helped to cushion against higher labour costs, as the group continued to balance its production between its own factories and third party manufacturers.

It said: “The glut of manufacturing capacity in this sportswear industry will probably ensure such a production mix is maintainable whilst the group endeavours to move up a notch in its retail pricing strategy, in the wake of better spending power among the middle income group of consumers seeking higher quality products.”

The group grew turnover by 6% in the first six months of the year to RMB2.2 billion ($348 million), with profit rising 34%, and expects an even stronger second half.

Footwear turnover rose 16.%, but apparel turnover fell 3.5% because of a higher comparative base boosted by late deliveries in the fourth quarter of 2013.

Ding Wuhao, President of 361 Degrees, said "This promises to be a very good year for the group as we see steady recovery in the industry and our brand gaining further acceptance in the market place."

361 operates around 7,400 stores in China.

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