China'S Manpower Costs Skyrocketed - UNIQLO, H&M Will Be Looking For Suppliers In Africa To Reduce Costs.

Whether H&M, Zara or UNIQLO, the main suppliers are still distributed in China and Southeast Asia. South African suppliers have been included in the fast fashion supply chain and have not had much impact on garment manufacturing in other regions.

The rapid growth of fast fashion has begun to show signs of weakness. In the face of increasingly fierce competition, brands are looking forward to lowering the cost as low as possible to gain profit margins.

According to the latest news from foreign media, Sweden is fast.

H&M executives visited some major cities in South Africa this week to find new suppliers for brands.

It is reported that the reason for H&M's decision is that it is in China.

Suppliers are affected by rising labor costs and tariff policy adjustments.

Data show that China's labor cost has risen to 7 times in just 10 years. At present, the labor cost of China's textile industry is 1.08 US dollars per hour, 3.5 times the cost of labor in Bangladesh, Kampuchea and Vietnam.

At present, the H&M group has 18 sales outlets in South Africa. After analyzing the guidelines, the non supplier's cooperation with H&M will greatly enhance the competitiveness of the local garment manufacturing industry in Ethiopia and Swaziland.

A number of factories in South Africa were forced to close because of their inability to compete with Chinese manufacturers, resulting in the loss of thousands of jobs.

What makes sense is that H&M was racially discriminated against in January this year when a black boy was wearing a T-shirt shot. His 6 stores in South Africa were forced to close because they were smashed by the radical militant economic freedom fighters in Africa. H&M immediately apologized for the ad and immediately removed the relevant pictures and products.

In fact, H&M's move to South Africa to find suppliers is not nowhere to be found. In a speech at the beginning of this month, Ebrahim Patel, South Africa's minister of economic development, revealed that after the H&M apology, the South African government proposed that the group could consider purchasing goods in South Africa, while South Africa was in South Africa.

In the past decade, Sactwu, a textile workers union, has repeatedly accused H&M of not buying locally, damaging the local garment manufacturing industry.

Amelia-May Woudstra, a spokeswoman for H&M in South Africa, responded that the Group executives had inspecting suppliers from Cape Town, Johannesburg and Durban, and is currently conducting an assessment to select the most suitable partners. The products of 18 stores in the future will be provided by selected local suppliers.