China is the world factory in the past 30 years and will remain world factory in the next decades. It seems that the textile export volume is going down from the above picture, but China is still accounting for 41% of total exported garments in the world.
WHERE THERE ARE FACTORIES, THERE ARE STOCKLOTS. And surely China is the best place to source stock lots in the world.
Generally, stocklots are caused due to the following reasons:
- Factory late delivery;
- Factory quality problem (could be either out of client’s tolerance, or totally can not meet client’s requirements, or failed on 3rd party test);
- Factory is scammed (for example, in 2016, many factories were scammed by a trading company which placed US LIFE garment order to them);
- Client failed to pay (do not willing to pay, or goes bankrupt).
What can factory do if they have stocklots? The answer is NOTHING.Factories have no resources to sell the stocklot as they are aimed to get profits by providing OEM/ODM services, they have no idea about the stocklot market.
And therefore, the stocklot will sell to China domestic market, or sell to some Chinese who are living abroad.
Abroad buyers in the stocklot field can not buy directly from factories/find the stocklots, because:
- Stocklots are not always available, need to check with factories periodically;
- Factories know the FOB price, and the boss usually do not want to offer very low price, though the stocklot might become rubbish if they do not sell;
- There are potential quality problems on the stocklot, and the client needs to find someone (quality inspection agent, or 3rd party) to check quality and quantity.
Therefore, the best way is to buy stocklots from a trading company, who have the following qualifications:
- Familiar with the stocklots you are planning to source from China;
- Can provide inspection on quality and quantity;
- Able to find the stocklots at the soonest time possible;
- Able to arrange shipment from factory to the destination port.
Sourcing from abroad is not an easy job, there are many risks involved, but it is worthy to do to gain the reasonable profit (not the crazy profit, there is no crazy profit nowadays).
China Grand Crown Industrial Limited has been in the apparel OEM service field for years, with professional sourcing team and has connections with more than 100 factories, you can check our BLOG to see apparel stocklots/liquidation/overstock/off price apparel available.