Composite Fabric,bonded fabric,Lamination Fabric Lamination Fabric News The rise of African clothing industry threatens Asia’s status

The rise of African clothing industry threatens Asia’s status



2014 was a turbulent year for the Asian textile industry – soaring wages of Chinese workers, worker riots in Cambodia, factory collapses in Bangladesh, etc. These negative news made the Asian textile indu…

2014 was a turbulent year for the Asian textile industry – soaring wages of Chinese workers, worker riots in Cambodia, factory collapses in Bangladesh, etc. These negative news made the Asian textile industry slightly make the headlines, and also reflected the situation in the Far East. The textile industry is entering a period of transformation.

From a recent report in the “Gulf Times”, we learned that China is no longer a cheap clothing manufacturing country, because in the main garment industry centers in the coastal areas, workers’ wages are about 500 US dollars per month, and in the inland areas it is 250 US dollars. , so foreign clothing retailers have moved factories to Bangladesh and Myanmar in recent years. Bangladesh’s garment industry has grown to US$25 billion and employs 4.4 million workers. Myanmar’s GDP is US$5.5 billion, providing 650,000 jobs.

But in these cheap garment-making countries, workers began to revolt for higher wages. After a labor dispute, Myanmar raised workers’ monthly wages to $68, an increase of 77%. In November 2014, the Bangladesh Ministry of Labor raised the minimum monthly wage for garment workers to US$128, an increase of US$75. The monthly salary is almost twice that of Myanmar.

For the global apparel industry giants that purchase from these countries (such as: H&M, Inditex and Walmart), the slight increase in workers’ wages in these countries is minimal to the growth of the entire business model, because it includes marketing, transportation, sales , tariffs and taxes, which only account for 2% to 3% of the entire production cost. Rising wages have further reduced the profits of local garment companies.

However, these apparel retailers have found regions that have replaced Asia as production hubs. H&M, Tesco and Primark have begun purchasing from Ethiopia because the country has no minimum monthly salary limit. For unskilled workers, the monthly salary is only 35 to 40 US dollars, which is obviously much lower than that in Myanmar. These foreign clothing manufacturers are very popular in African countries, and they also benefit from the abundant local cheap labor and energy. Kenya’s garment industry is also developing. Although the monthly salary in the country is about US$120, the government attracts these foreign businessmen with generous incentives.

Some observers say that East African countries are expected to replace East Asia as the center of clothing production. Compared with East Asia, in addition to cheap labor, the cost of transporting clothing to Europe or the United States is lower in East African countries. In addition, African countries signed a special trade agreement with the United States in 2000, and American clothing enters the African market duty-free. As the local cotton industry in Africa develops, local resources can be purchased to further reduce costs.

This article is from the Internet, does not represent Composite Fabric,bonded Fabric,Lamination Fabric position, reproduced please specify the source.https://www.yjtextile.com/archives/12502

Author: clsrich

 
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