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Apparel retailer Muji to cut China based production
20
Sep '10
As consumer demand is still weak in Japan, Ryohin Keikaku, the operating company of Muji has decided to substantially reduce its production operations in China.

The company has announced its plan to reduce by half, its 240 production facilities in China within two years, in order to reduce personnel costs.

The company suffered a 26 percent loss in the first quarter of this year and its net income registered US $321,000.

Japan's high unemployment rate and decline in household expenditures reflects that consumers are still reluctant to spend freely, resulting in weak retail sales.

Fibre2fashion News Desk

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