Interviews
Made-in-China low-cost label losing sheen
29 May '12
1 min read
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”.
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”.
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