China'S Labor Cost Rose &Nbsp, And The US Apparel Business Moved.

2010/6/18 11:34:00 23

According to Lianhe Zaobao net, China

The labor

The rising cost has forced us apparel retailers such as AnnTaylor Stores Corp. and Coach Inc. to consider shifting some of their production to countries with lower labour costs.

American apparel retailers Coach Inc. and Guess Inc. are considering the relocation of garment factories to countries such as Vietnam.

J.C. Penney Co. has said that in the past 5 years, garment factories have been evacuated from China to Indonesia, Vietnam, India and Bangladesh.

Darin, President of Li Feng, said that the recent rise in minimum wage has increased the average labor cost in China by 5% to 15%.

The rise in wages, plus

cotton

The annual cost of apparel retailers in China may rise by 2% to 5%, as prices and pportation costs rise.

Nicholson, chief financial officer of AnnTaylor, said the company is working with 15 suppliers to pfer them to lower cost countries.

But Nicholson said he could only do that.

Produce high quality products

That's the case.

In fact, the quality of "made in China" produced by the same cost is difficult to catch up with.

A retail strategist points out that Chinese labor skills and their familiarity with American companies are much better than those of other Asian countries.

Another retail expert said that the cost of clothing, labor accounted for only 15% to 22%, while fabric and logistics can account for 60%, capacity pfer may increase pport costs.