Most clothes Americans wear are made in China. This means that the folks who design and make the clothes (retailers such as Aeropostale, Gap, Abercrombie, etc) have to place their orders with Chinese factories about nine months ahead of time in order to make manufacturing and shipping deadlines. That model doesn't work, however, in an uncertain economy where the consumer may or may not buy a particular line. Incorrect forecasting means lots of discounted items after a "fashion miss" which is not good for profits or the brand. Retailers are therefore turning to "chasing" where they purposely under-order lines to see how they do on the floor first. If the line is successful, they press suppliers for more product. This has caused some suppliers in turn to respond by pushing up prices and passing on more costs to the retailers.
Retailers Push Apparel Suppliers for Shorter Lead-Time - WSJ.com
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