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Japanese firms shift apparel units from China to Asean
Aug '12
Japanese apparel firms are gradually relocating their manufacturing units from China to countries in the South East Asian (Asean) region.
From January to June 2012, Japan’s clothing imports from China declined by 4 percent year-on-year, while those from Asean countries increased by 22 percent year-on-year, according to official data.
Among the growth in garment imports from the Asean region, significant growth of 50 percent year-on-year was witnessed in import volumes of casual shirts, sweaters and other knitted garments from Cambodia and Myanmar.
Until last year, Muji produced 70 percent of its knitted garments in China, but after shifting some production units this year, 70 percent of its production is expected to come from Southeast Asia.
Another firm Sanyo Shokai manufactures 70 percent of its production overseas, of which, China’s share is 55 percent, while the remaining 15 percent is produced in Vietnam. The company has recently opened a production unit in Myanmar and it intends to redistribute its overseas production to 45 percent in China, 15 percent in Vietnam and 10 percent in Myanmar.
Similarly, TSI is planning to shift its casual wear and sportswear production from China to Southeast Asia and increase the proportion of its goods produced in Asean region from the current 10 percent to 30 percent.
Clothing manufacturer Onward Kashiyama is planning to reduce its apparel production ratio in China from 75 percent to 65 percent, while raising its production in Asean region from 5 percent to 20 percent.
The Suit Company is also planning to expand its suit production facility in Cambodia.

Fibre2fashion News Desk - India

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