Japanese clothing manufacturing is showing signs of returning to China.
UNIQLO sister brand GU will begin to produce follow-up orders for seasonal apparel in China this fall, rather than in Southeast Asia. GU hopes to establish a 30-day production investment cycle in China to produce production-increasing garments that need to catch up with the trend.
Another Japanese clothing company, STRIPE INTERNATIONAL, also transferred some of its production back to China. According to the Nikkei Asian Review in September, the proportion of STRIPE INTERNATIONAL's production in China once dropped to around 70%, but now considering China's logistics advantages, The production ratio has again exceeded 80%.
In December last year, the Japan External Trade Organization (JETRO) released a survey of 637 Japanese companies in 20 countries and regions in the Asia-Pacific region, showing that the willingness of these Japanese companies to expand their business in China reached 40.1%. , 2 percentage points higher than the previous year. Japan’s manufacturing industry and the like seem to have a tendency to “return to Chinaâ€.
In recent years, artificial continued to rise, major multinationals have reduced the favor of Chinese-made, artificial turned to cheaper Southeast Asia. H&M, Clarks, K-Swiss, Uniqlo and other companies have reduced or closed their production lines in China and turned to production in India and Vietnam. According to a previous survey conducted by the Japan External Trade Organization, the willingness of Japanese companies to expand their business in China has continued to decline since 2013. By 2015, only 38.1% of Japanese companies were willing to expand their business in China.
However, the labor in Southeast Asia is cheap, and the long logistics distance has become troublesome. When a hot-selling product is added to the order production in a factory in Southeast Asia, due to the long logistics, the embarrassing situation that the fashion has been sent is often seen, and the garments that have been increased in China can reach Japan 1-2 weeks earlier than the clothing produced in Southeast Asia. .
And compared with the national factories in Southeast Asia, China factory as well as a complete fabric, zippers and other materials needed for the production market, and higher operating efficiency and proficiency of high-quality workers bring. China is also an important sales market for multinational brands, and the smaller cost of production and sales is also a big advantage.
The rate of increase in labor costs in China is also slowing down. According to the Nihon Keizai Shimbun report, China’s salary increase rate (average of all industries) was 6.1% from 2015 to 2016, ranking 9th among 20 countries and regions in Asia Pacific. Bit.
These are all factors that have prompted Japanese companies to change their attitudes toward Chinese manufacturing. Especially in textile-related industries such as clothing, the trend of re-evaluating China's raw material procurement cost advantages and re-expanding production in China has emerged.
But this does not mean that China's manufacturing is completely returned, and labor costs still hinder the willingness of enterprises to produce in China. Japanese textile imports Association show that last year China made products accounted for 65 percent of Japan's imports of clothing. This figure fell by 16 percentage points in five years, while in Southeast Asia it rose by 10 percentage points to 23%. China General Administration of Customs statistics show that in August 2017, the export volume of textile and apparel fell 5.91 percent year on year. The situation of Chinese clothing exports has not recovered.
In order to retain orders from foreign companies, Chinese apparel companies are popularizing technology upgrades such as automated production. Muji, Uniqlo and other garment manufacturers in China have introduced automated garment production lines and tried to resist rising labor costs by upgrading design and logistics. The resulting outflow of orders.
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