Japanese clothing brands have reduced their reliance on Chinese manufacturing in recent years in order to protect themselves in advance from the impact of US-China trade turmoil.
According to the Japan Apparel and Fashion Industry Association (JAFIC), this diversified procurement was originally caused by the increasing production costs in China, which means that the United States Trump The Prussian government has imposed additional tariffs on Chinese goods exported to the United States. This move will have a “slight” impact on Japanese textile and garment companies.
JAFIC General Manager Yuji Hasegawa explained that since 2010, Japanese textile and garment companies have been developing production bases in Southeast Asia, seeking lower manufacturing costs, and pointed out that local Chinese competitors Also follow suit.
Fast Retailing Co., a Japanese company that operates the Uniqlo casual clothing chain brand, almost all Uniqlo products were produced in China until its business scope expanded in 2016 When it opens 5 new markets in Singapore, Vietnam, Philippines, India, and Malaysia, its production base will be closer to and more affordable in Southeast Asian countries. Currently we have many cooperative factories in Vietnam, Bangladesh, Cambodia, Indonesia, India and other places.
A company spokesman said that although China’s production increased year-on-year, with the expansion of production bases, Japanese Fast Retailing companies have reduced production in China, prompting China The proportion of total production in Asia has also gradually declined. The company recently disclosed the list of all its brand clothing supply factories, including Theory, PLST and other brand factories, as well as Uniqlo and GU.
The company also exports goods from China to 50 stores in the United States. Although the cost of manufacturing clothing and textiles in China has increased, the spokesperson said that so far the U.S.-China tariff war has had “little impact” on the group’s operations. However, she added that the company was “closely monitoring developments on this issue.”
Reduce dependence on China
Also owns GlobalWork and other clothing The brand’s ready-to-wear company, Adastria, has reduced its production in China since acquiring a Southeast Asian production base in 2013, reducing its production scale from 100% to 70-80% in order to reduce its dependence on China.
Kei Lui, the investment relations manager of the Tokyo office, said that “production is gradually shifting to Southeast Asia” mainly to reduce labor costs, obtain more local raw materials, and reduce the cost of working in China. All risks of production.
She said: However, due to increased freight costs and other logistics technology challenges at production bases such as Vietnam, Cambodia, and Myanmar, the company believes that “there are no significant cost savings.” , there are currently no plans to further move any production in China.
Trade Consulting
At the same time, the Ministry of Economy, Trade and Industry of Japan Before the United States may impose tariffs on Chinese goods, it actively provides Japanese textile and apparel companies with suggestions for production bases in China.
Conducting consultations through the Japan External Trade Organization (JETRO) is part of Japan’s Ministry of Economy, Trade and Industry’s efforts since 2018 to allow Japanese domestic companies to understand China and the United States The latest situation of worsening trade friction.
Asuka Murayama, international affairs officer of the Life and Leisure Industry Department of the Manufacturing Administration Bureau of the Ministry of Economy, Trade and Industry, said that due to the impact of the Sino-US trade war on Japanese textile and garment companies, the economic industry The Province will continue to monitor its progress.
Although more and more businesses operate through global supply chain channels, and these supply chains will be affected by bilateral trade tensions, she said that after After investing heavily in supply chains, it will not be easy for companies affected by tariff increases to quickly move their production bases to ASEAN countries.
