Home / Knowledge / News / Apparel/Garments / Japanese apparel firms reduce dependence on China
Japanese apparel firms reduce dependence on China
14
May '12
Japanese textile and apparel companies are busy increasing their presence either by way of sourcing or setting up garment manufacturing units Southeast Asia.

Mitsui & Co has recently finalized its partner factories in Myanmar and other Southeast Asian countries.

Mitsui plans to increase its share of overseas production ratio from 2 percent to 4 percent in Southeast Asia.

Similarly, Sumitomo also plans to set up a garment company in Vietnam this month.

The Japanese garment industry which imports over 80 percent of its needs from China is worried about the cost implications of sourcing or manufacturing from China.

So in order to minimize risks, Japanese are partnering with companies in various Southeast Asian destinations and also reduce dependence on China.

Japan's apparel and clothing retailer's do not have factories in Japan; they mainly produce or source from overseas countries through trading companies.

In the past, they focused on China, due to low labor costs. But over the past few years, Chinese production costs have nearly doubled.

So in order to meet the demand for low-cost textile and apparel products in Japan and also maintain their profitability, they are scouting other low-cost manufacturing bases.

Mitsui & Co. has signed agreements with factories in Vietnam and Myanmar to produce one million garment pieces per year.

The Mitsui factory in Cambodia with an annual output of 500,000 pieces will also start operation this year.

The apparel subsidiary of Sumitomo Corporation has engaged about 50 staff for technical guidance including Japanese staff for its factories in Vietnam, and improve product quality in plants in Cambodia and Laos.

Marubeni plans to increase its production ratio in Southeast Asia from about 15 percent at percent to more than 30 percent by the end of March 2014.

Itochu will send Japanese technicians to permanently stay in its factory in Myanmar, aiming to expand shirt production.

Mitsubishi is also preparing to set up bases in Indonesia and Cambodia, in order to increase its procurement channels.

Fibre2fashion News Desk


Must ReadView All

Market share of Indian textile items expand in 13 nations

Textiles | On 11th Dec 2017

Market share of Indian textile items expand in 13 nations

Thirteen countries — Germany, France, Italy, the United States,...

Courtesy: EUBrasil

Textiles | On 11th Dec 2017

Euratex, ABIT welcome negotiations for EU-Mercosur FTA

European Apparel and Textile Confederation (Euratex) and the...

Most firms expect no change in investment plans: CII survey

Textiles | On 11th Dec 2017

Most firms expect no change in investment plans: CII survey

Despite visible optimism in Indian industry with the Confederation of ...

Interviews View All

Prabu Mohanram
Balavigna Weaving Mills Pvt Ltd

The biggest challenge that the weaving industry faces is high price

Smita Murarka
Amanté

‘There is huge demand in the Indian lingerie market for non-wired styles.’

Neel Sawhney
One Friday

‘The share of kidswear segment in the online sector is still small in...

Harsh Shah

Established in 1956 with a small beginning, Embee today manufactures a...

Liz Manning

<div><b>Liz Manning</b>, Business Development Manager at Catexel, has...

Urmil Arya

Sushila International, a well established textile organisation established ...

Kevin Nelson
TissueGen

Kevin Nelson, Chief Scientific Officer, TissueGen discusses the growing...

Kai Poehler
Voith Paper GmbH & Co. KG

The glass mat industry is growing by five to eight per cent annually. Kai...

Iago Castro Asensio
RCfil Distribuciones S.L.

Iago Castro Asensio, International Business Manager of RCfil...

Nisha Chanda
Whistling Woods International School of Fashion

<div>A lack of upgraded courses in costume designing and fashion as per...

Judy Frater
Somaiya Kala Vidya

Among the many honours showered on Frater, including Fulbright and Ford...

Akta Adani
India Boulevard

India Boulevard is a San Francisco-based curated fashion marketplace that...

Press Release

Press Release

Letter to Editor

Letter to Editor

RSS Feed

RSS Feed

Submit your press release on


editorial@fibre2fashion.com

Letter To Editor






(Max. 8000 char.)

Search Companies





SEARCH

December 2017

Subscribe today and get the latest update on Textiles, Fashion, Apparel and so on.

news category


Related Categories:

Planning to Take the Leap towards
Sustainability?

Do you see sustainability as a route to business growth?

Yes No

Do you think the sustainability space has the needed tools and resources available for a business to lead change?

Yes No

Active Poll

Do you see sustainability as a route to business growth?

Yes
69.2%
No
12.1%
Skip
18.7%

Total Votes: 91

Do you think adopting a sustainable approach will be a profitable move for your business?

Yes No

Active Poll

Do you think the sustainability space has the needed tools and resources available for a business to lead change?

Yes
61.5%
No
30.8%
Skip
7.7%

Total Votes: 91

Do you want the world to know about your sustainability journey and your business’ environmental footprint?

Yes No

Active Poll

Do you think adopting a sustainable approach will be a profitable move for your business?

Yes
86.8%
No
9.9%
Skip
3.3%

Total Votes: 91

Thanks for your valuable feedback. Claim your free latest sustainability e-book.

Active Poll

Do you want the world to know about your sustainability journey and your business’ environmental footprint?

Yes
81.3%
No
8.8%
Skip
9.9%

Total Votes: 91


E-News Insight
Subscribe Today and Get the
Latest News Update in Your Mail Box.
Advanced Search