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Made-in-China low-cost label losing sheen
May '12
The Made-in-China label is no longer considered cheap by apparel buyers around the world, particularly, those in the European Union.

According to reports, there is now a steady stream of those who want to relocate their garment manufacturing hubs to countries like Spain and Portugal.

Even home-grown Chinese clothing producers are relocating facilities to neighbouring countries like Vietnam and Cambodia.

The main reason being that the country is losing its tag as a low-cost destination for textile and apparel production.

Since the last few years, production costs in China have surged, led by a very big hike in labour and raw material costs.

To add to its woes, over the last two years, the Chinese currency - Renminbi too has appreciated around seven percent against the US dollar.

Orders have also started shifting to other low-cost Asian countries like Bangladesh, Vietnam and Cambodia.

According to Tim Condon - Chief Asian Economist at NG Bank N.V., “Producers are now finding it cheap again to manufacture in the US and exporting to the rest of the world”.

Fibre2fashion News Desk

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