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Southeast Asian Labor Costs Rise, Clothing Prices Rise To Become Inevitable?

2014/1/8 22:29:00 110

Southeast Asia Clothing Costs Price Increases

December 31, 2013, under the pressure of workers' < a href= "http://www.91se91.com/news/list.aspx ClassID=101112107105" > strike > /a >, the Ministry of labour of Kampuchea announced that the monthly minimum wage of the garment industry increased by 25% to 100 US dollars, but the workers in the industry were still not satisfied with the requirement that the minimum wage would rise to 160 dollars per month. 
 Liu Hongwei, a clothing retail expert and partner of Beijing longitudinal management consulting group, told economic news reporters that most of the countries in Southeast Asia have a small population base. Once manpower costs begin to rise, the speed will surely surpass that of China in the past. People in the industry say that if the cost goes up, the price of clothing enterprises will become a trend. 
 domestic enterprises go to Southeast Asia to set up factories 
 it is understood that before that, the minimum wage of the workers in the clothing industry in Kampuchea was only 80 dollars, while the other largest producer of clothing, Bangladesh, raised the minimum monthly wage to $67 at the end of 2013. This has also attracted many international and domestic shoe and clothing brands to spanfer their production base to Southeast Asia. Nike, Adidas, H&M, < a href= "http://www.91se91.com/news/list.aspx ClassID=101112107102" > ZARA < /a > UNIQLO and other international cards completed the layout in Southeast Asia several years ago. Now the domestic clothing and textile listed companies have begun to spanfer orders. 
 a few days ago, Lu Tai A, a leader in color and fabric weaving, announced that it plans to invest $8 million to build a new annual production of 3 million shirts processing plants in Kampuchea. Previously, Bailong Oriental and Huafu color spun have invested and set up factories in Vietnam. Another listed company, the cashmere industry, also established a factory in Kampuchea by accepting 91% of the shares of Kampuchea Xin Wang Knitting Co., Ltd. 
Liu Hongwei P told economic news reporters that in fact, the spanfer of Chinese brands to Southeast Asia is no longer significant, because the time lag of rising labor costs has gradually shortened, and in a few years southeast Asia will probably lose that advantage. 
 "once manpower costs begin to rise, the speed will surely surpass that of China in the past. "Liu Hongwei said that China's population base is relatively large. In the past, it has been decades of time to digest the pressure of rising costs, while Kampuchea and Vietnam have a relatively small population, and human costs may rise rapidly in recent years. 
P > clothing brand or rise in price /p >
"P > shoes and clothing brand analyst Ma Gang told economic news reporters that the increase in labor costs will definitely reflect the commodity prices. 
 reporter understands that in recent years, global clothing prices have risen due to rising costs. SocieteGenerale, a survey by Societe Generale, France, shows that the price of H&M clothing, a fast fashion brand in Sweden, has doubled in price in the past two years. 
 earlier, in the face of Kampuchea workers' strike, < a href= "http://www.91se91.com/news/list.aspx ClassID=101112107107" > H&M group < /a > put forward a plan to pay fair wages to about 850 thousand textile workers in its related textile industrial chain before 2018, so as to ensure that these textile workers can rely on wages to ensure basic life. 
In September last year, Persson, chief executive of H&M, met with Bangladesh Prime Minister Sheikh Hasina in Dhaka, adding that H&M hoped that the Bangladesh textile industry could raise the minimum wage standards for workers and conduct annual salary reviews. 
, however, the H&M group has since accepted the Agence France-Presse visit, saying that in the long run, the group may raise the retail price, but the price will not rise in the near future. Although H&M denies that wage increases are the cause of higher prices, price rises seem to be one of the group's strategies. 
 to this, Liu Hongwei said that the impact of "a href=" http://www.91se91.com/news/list.aspx "ClassID=101112107108" > human cost < /a > on the enterprise will definitely exist, but compared with the domestic clothing brand, the impact of the international fast fashion brand is less. "On the one hand, the global supply chains like UNIQLO and ZARA are relatively strong, and most of them are purchasing factories, even if the cost increases, the impact on them will not be immediate. On the other hand, the fast fashion price advantage is more obvious, and their demand for quality is weaker, so they will go around the world to find out where the production cost is low, maybe Southeast Asia has no advantage to spanfer to other places."