International Observation: Overseas Production Costs Rise, Japanese Garment Manufacturers Shift Production Back To China

Recently, in the face of a series of pressure, such as the weakening yen exchange rate, rising overseas labor costs and logistics problems caused by the new crown epidemic, more Japanese garment manufacturers began to shift their production back to Japan.

World, a large Japanese clothing manufacturer, plans to increase the proportion of local production of its high-end clothing from the current 40% to the vast majority in the next three to five years. In addition, the company is moving production of jackets, dresses and knitwear from China and Vietnam back to Japan in phases. After the relocation, the overall proportion of world's local production will rise from 20% to more than 30%.

Such a move shows that the disruption of the supply chain caused by the new crown epidemic also gives the garment industry reason to reconsider its production strategy, and also makes them withdraw from the original production centers of Vietnam and China.