Fast Fashion Brand Foundry Moved To Africa

Declining profits Fast fashion The brand H&M group began to look for cheaper processing sites. After Vietnam and Turkey, Africa became a place of "made in China" treasure. However, longer transport costs may increase brand inventory pressure.

It is reported that H&M It is intended to transfer production plants concentrated in Asia to Ethiopia, Africa. Because the low labor cost in Africa has an advantage over China's growing wages. Before that, about 80% of H&M's products were produced in Asian factories. It is understood that the cost of producing a garment in Ethiopia is only half the cost of China in 2011.

As early as two years ago, most of the garment manufacturers in China had moved to cheaper areas. The GAP clothing sold in Beijing was mostly Vietnam, and Nike, Adidas and other brands moved to Turkey in 2011.

At the same time, clothing The brand will shift the processing plant to the rising consumer market. GAP and its Banana Republic brand and ZARA are now opening stores in Africa and have expansion plans.

At present, domestic sports brands also have precedents for opening stores in Africa and other regions. However, clothing industry experts believe that faster fashion brands are more important to increase profits through improving core competitiveness rather than cost savings. The founder of ZARA has been sticking to the strategy of the country of origin for a long time. This is to ensure that the cycle of clothing from design to shelf stays within 7-15 days. A day more than an opponent means less inventory risk. ZARA did not set up factories in China until it entered China.