Clothing Business Li Feng Decentralized Procurement To Reduce Pressure On China

The events of the past few months have clearly shown that China's labor costs are rising. Other manufacturing economies in Asia have also been affected.

Li&Fung Ltd That's what Bruce Rockowitz, the president, said. Li&Fung is the neighbor of Hong Kong's trade and logistics industry, and the main toys clothing One of the purchasers.

Le Yumin released Li&Fung semi annual report in Hong Kong on Thursday achievement When I said, the price we and our customers have borne has risen, and we have alleviated this pressure by purchasing from Bangladesh, Vietnam and Indonesia.

But the labor force and raw material Costs are also rising.

He said that most of these countries, not all of them, at least seek pricing guidance from China. When China's prices rise, most other countries will follow suit; The problem of rising labor costs also exists in other parts of the world outside China.

Li&Fung plays an intermediary role between manufacturers in China, Southeast Asia and European and American retailers. The company has a good understanding of the trade and manufacturing of global consumer goods. Of the goods it handles, slightly more than half are made in China, 21% in Southeast Asia and 15% in South Asia. By country, the fastest growth in output in the first half of the year was India, with a growth rate of 27%, while Vietnam and India increased by 19% and 15% respectively. China grew by 10%.

Le Yumin said that we are going through a round of major changes in manufacturing countries, and this round of changes will be calm after several years.

It is not just labor costs that are rising.

He said that raw material prices have also risen, and commodity prices have risen; On the whole, cost pressure must exist, although the market is relatively weak.

Retailers will have to absorb these increased costs themselves, instead of passing them on to consumers who are short of money.

Le Yumin said that most retailers are accepting the price rise, and they have no choice. Not only Chinese Price It is rising everywhere. I think it will be more difficult to pass on the price increase to consumers in this market. So what retailers really expect is how to improve efficiency and how to reduce price promotions.

In terms of the overall view of the economy, Le Yumin felt that consumer sentiment had fluctuated in the past few weeks.

He said that for retailers, although the business did not decline significantly in any way, it was not as good as that year; The current slowdown is certainly not a double dip, and consumers are still spending money; This is a change, and we don't know how long it will last.