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Egypt’s RMG factories cut production by 50%

  

Due to a projected decline in demand for the fall season, several local ready-made garment factories in Egypt have reduced their production by 50 percent, while other factories have halted production altogether.

According to Mohammed Abdel Salem, CEO, Egypt’s Ready-made Garments Chamber, demand for clothing is not expected to exceed half of the normal rate this fall, amid expectations that a “second wave” of coronavirus will force the country into another lockdown, keeping people home and killing in-person shopping.

Several manufacturers suffered a major loss after a countrywide lockdown was mandated in mid-March to combat the spread of the virus. The lockdown led to a drastic decline in demand for ready-made clothes.

A massive overstock of summer clothing sat for months in the factories, according to Salam. The factories failed to distribute their production in both local and foreign markets. Factories have hardly sold 30 percent of their summer season stock over the past three months.

Many Egyptians turned to online shopping amid the pandemic, with the country’s e-commerce sector already steadily rising pre-pandemic.

 
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