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Brands moving out of China to face lower productivity, greater risks

Apparel manufacturers and brands planning to diversify their sourcing from China are likely to be faced with lower productivity, slower speed to market and greater risk. As Jane Singer, Director and Head of Market Intelligence at consultancy Inside Fashion revealed, the disadvantages of China’s increasingly high cost base was often offset by other considerations. As China has high productivity levels and an established supply chain-brands moving out of China are likely to lose their agility and infrastructure. Also, Chinese manufacturers are responding to the higher costs by developing factories elsewhere and reducing prices of their apparels which does not have tariff on it as yet.