France looks for a more cost-effective alternative site

by shenli474a on 2012-02-17 15:45:13

Because of the rising labor cost in China, coupled with the long distance and high transportation costs, France is now seeking a more cost-effective alternative. The import value of textile and clothing from China to France increased by 7% in the first eleven months last year, but after deducting the rising production costs, it actually only increased by 4%. In contrast, the import growth rates from Bangladesh and Pakistan reached 26% and 29%, respectively. The wages of workers in China's garment processing industry have risen to between 180 and 300 euros per month, roughly equivalent to Belarus, while Tunisia stands at 160 euros, and Madagascar at only 50 euros. An increasing number of French apparel brands, such as A&F, "Little Ship", and Clio, have started to establish processing sites on this small island.

In addition to wages, transportation efficiency is also an important consideration factor. French fashion apparel brands have begun to look for processing locations nearby: Eastern Europe, the Mediterranean region, Madagascar. Romania, known as "Europe's China," has become France's largest textile and clothing supplier in Europe.

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