Clothing Manufacturers Fleeing China
Pal Jon Custer alerted us to a WSJ video this morning showing us that clothing manufacturers are slowly moving their operations out of China because wages are increasing there, and moving them to places like Vietnam, where wages are growing at a slower rate. He points to this chart which shows how China is leaving some of its other neighbors in the dust when it comes to per-capita GDP growth.
According to this report from Havard Business School, some retailers are already focusing their operations in other countries. Fast fashion clothing store Zara sources two-thirds of its items from Africa and Europe. Plus, Zara’s owner Amancio Ortega is the the third richest man in the world behind Carlos Slim and Bill Gates, so he must be doing something right.