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Japanese garment enterprises accelerate the transfer of production bases in China
Large Japanese garment enterprises are speeding up the transfer of production bases from China to other Asian countries. Aoyama plans to launch its first direct factory outside China in Indonesia before the spring of 2014. In addition, the Sanyang Chamber of Commerce of Japan will also start commissioned production in Cambodia. In addition to the depreciation of the yen and the rise in the price of raw materials, Japan will also implement the consumption tax increase next spring, and the increase in cost cannot be completely transferred to the price. Therefore, enterprises hope to ensure production bases in areas with lower labor costs to maintain competitiveness.
Qingshan Commercial will open a group direct factory in Indonesia through its subsidiary, Fuliang, which produces men's suits. At present, the company has a direct factory in Shanghai, China, but it is the first time to open a direct factory in Southeast Asia. The first year plans to produce about 140000 men's suits.
Affected by the depreciation of the yen since the end of last year, the cost of Japanese clothing imports from China has increased by 20% to 30% compared with last year. Qingshan Commercial plans to reduce the proportion of production in China from 70% to less than 50% as soon as possible to cope with the rising import costs.
Some enterprises have to cut costs in order to cope with the rise of raw materials such as down. Since this summer, Sanyang Chamber of Commerce will move the production of some commodities such as down jackets from China to Myanmar. As the raw material of down jacket, the current price of down jacket has been maintained at a level of about 50% higher than that of last year. If we transfer production to Myanmar, where the labor cost is only one quarter of that of China, we can absorb the rising cost of raw materials. In addition, the company is also preparing to start the commissioned production of jackets in Cambodia from next spring and summer clothing.
Sanei International, a subsidiary of Japan's TSI Holding Company, will start production in Myanmar from this year. It will produce this autumn and winter down coat of the clothing brand "Natural Beauty Basic" for professional women. It is the first time for the company to produce main commodities in Myanmar. In addition, Point, a casual clothing brand, will also establish a production management office in Cambodia through its clothing production subsidiary in September, and begin to produce women's clothing in the country.
In addition to Southeast Asia, there is a trend among Japanese garment enterprises to expand their production base to more regions in Asia. World, a large Japanese clothing manufacturer, will fully start production in Sri Lanka. Recently, we will establish a local office to produce children's shirts, jeans and other products. As a traditional industry, Sri Lanka's textile industry has been very developed. Therefore, it not only has advantages over China in labor costs, but also can guarantee its technical strength. World Company also values this point.
In addition, the Japanese Fast Retailing Company, which operates the "Uniqlo" brand, will also expand its production in Bangladesh and Indonesia. According to the plan, it will reduce its production rate in China from about 75% to 60%.
Some analysts believe that in order to maintain competitiveness, many Japanese clothing enterprises also hope to maintain the current price after implementing the consumption tax increase in Japan. However, if the price remains unchanged, Japanese clothing enterprises will lose 3% of their profits due to the increase of consumption tax. For Japanese clothing enterprises, finding measures to further reduce costs has become a top priority.
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