Japanese Garment Enterprises Will Reduce Their Production Proportion In China

It is reported that due to the substantial increase in China's labor costs, Japan has clothing Grocery enterprises are going to reduce their production ratio in China and transfer 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. 3 years from now, the quality plan will reduce the number of Chinese cooperation factories from 229 to 86, and the proportion of procurement from China will be reduced by 60% from 60%. Furniture, groceries and other wood products began to increase procurement from Southeast Asia. Uniqlo Its Fast Retailing plans to increase production from Bangladesh and Indonesia factories from the low price clothing brand G.U., and increase the proportion of 20-30% production outside China to 50%.

In addition to the transfer 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 wear Brand Honeys will also start production in the new factory in Burma this fall.

In the past two years, China's labor cost has doubled, about 5 times that of Bangladesh. The sewing process began to gradually shift beyond China because it relied mainly on the latest equipment and did not need too many skilled workers. 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.