Brands Hedge Their Bets on China
Published: Monday, December 03, 2007
(Page 3 of 3)
Guido Campello, vice president of branding and innovation for Miami-based Cosabella, which makes everything in Italy and has "always refused" to produce in Asia, said the problem requires an understanding of China's internal issues."It is not the Asian producers who are spoiled, but the foreign manufacturers producing in Asia who are spoiled," Campello said. "As their economy has developed, the middle class has grown, wages and benefits have quickly increased and work hours have quickly shortened. This means that margins grow smaller, and the first thing to go in production is luxury, trims and embellishments. Asian producers can no longer produce with embellishments and keep low as the market demands."
Gregory L. Gimble, vice president of Puerto Rico-based Va Bien, said, "Contrary to popular opinion, loyalty does exist in China. We have a great agent that we've worked with for several years who has consistently looked out for our interests. As far as the Chinese getting reluctant to specialize garments, that's a matter of economics. As their manufacturing market gets more saturated, they're going to look for work that requires the least amount of time that they can sell for the highest possible price.
"The operative word in China is, has been and, for the foreseeable future, will be, margin. They have gained leverage and as such their recent pickiness should come as no surprise," said Gimble, whose family-owned shapewear company manufactures components in China and sources sewing to the Dominican Republic.



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