Japanese Garment Enterprises Will Reduce Their Production Proportion In China

Due to the huge increase in China's labor costs, Japan

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.

Fast Retailing of UNIQLO is planning 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 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 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, Japan's periphery is also capable of undertaking.