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    Japan'S Clothing And Grocery Production Enterprises Will Shift From China To Southeast Asia.

    2011/8/19 17:06:00 34

    Japan'S Clothing And Grocery Business Ratio

    According to the Japan economic news,

    China

    Labor costs have risen sharply, and Japan's clothing and grocery enterprises are preparing to lower their production ratio in China and pfer part of their production links to Southeast Asia.


    Following the Vietnam, Burma and Kampuchea business, Qingshan will start commissioning production in Indonesia this year.

    Southeast Asian factories mainly undertake sewing processes, and the fabrics needed are still purchased from Italy and China.

    Good products

    plan

    3 years later, the number of Chinese cooperation factories will be reduced from 229 to 86, and the purchasing ratio from China will be reduced by half from 60%.

    Furniture, groceries and other wood products began to increase procurement from Southeast Asia.

    Fast Retailing of UNIQLO plans to increase production from Bangladesh and Indonesian factories from the low price clothing brand G.U., and increase the production ratio of 20-30% outside China to 50%.


    In addition to the pfer of commissioned production, some companies have also set up new factories outside China.

    TSI holdings, Tokyo's STYLE, invested 1 billion yen and began building new factories in Vietnam since August of this year.

    Women's clothing brand Honeys will also start production in the new factory in Burma this fall.


    In the past two years, China's labor costs have doubled, about 5 times that of Bangladesh.

    Sew

    Due to the reliance on the latest equipment and the need for more skilled workers, the process gradually began to move outside China.

    Of course, the countries with the ability to undertake sewing and weaving processes around Japan are only China. Therefore, the production outside the sewing process will continue to be mainly carried out in China.

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    Key Words For China'S Clothing Industry

    The recently released report on the China business climate index shows that subtle changes have taken place in China's clothing industry: the business index has risen slightly, the early warning index has returned to normal, and the growth rate of exports, employment and investment has been accelerated to different degrees, and the output has declined. Sales revenue and profit have slowed down year by year, and the profit margin of sales has also dropped from a record high.

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