H&M Adjust Development Strategy And Implement Low Cost Policy

Recently, factories such as Bangladesh and Kampuchea have been struck by accidents such as factory fires and building collapses. < p > Local bad working conditions and low wages make workers unable to maintain their daily lives. In order to ease the contradiction with local workers, it is inevitable to raise wages or increase production costs. The casualties have prompted more western brands to think twice about their pursuit of low production costs. < /p >
Bulto P AsiaInspection, chief executive officer of Hongkong audit and product testing organization, said that the new research results showed that in 2013, the factory audit in Asia increased by 61% over the same period last year, indicating that more brands began to invest in the supply chain supervision. "(Sebastien) Breteau Two months ago, the H&M Hennes &Mauritz launched a plan to ensure that the salaries of its garment workers in Bangladesh and Kampuchea are enough to cover their living expenses. < /p >
P Li recently said that retailers did not push costs down as they did in the past. "&Fung" Li Feng is a purchasing agent of Western brands such as Wal-Mart Stores Inc. and Target Corp., Stores. In the mid 2013 earnings report, Li Feng said that the trend of price declines has declined in the global purchasing business this year. In addition, factory accidents in Bangladesh also drive the garment manufacturing industry to pay more attention to labor safety, supplier compliance, quality control and sustainable development. < /p >
< p > low production price has always been the key target pursued by big brands. They say they want to save the cost and benefit consumers. Affected by wage increases in China and other parts of Asia, from Coach Inc. to a href= "//www.sjfzxm.com/news/index_c.asp", footwear companies such as /a /a, Crocs Inc. and fast marketing (Fast Retailing Co.), Japanese casual wear chain stores, such as UNIQLO, have been "fighting" in other countries, with a view to diversifying production bases and reducing costs. But after a few notable factory accidents, more retailers are beginning to pay attention to how their low cost practices affect labor safety. < /p >
< p > in Bangladesh, more than 100 people were killed in a factory fire at Tazreen Fashions Ltd. in 2012. More than 1100 people died last year in the collapse of the Rana Plaza factory building. < /p >
< p > Bulto said, this is a milestone year for retailers. He said that despite the reluctance, big companies are beginning to accept more and more demand from factories. The factory safety agreement signed after the accident in Bangladesh shows that retailers and brands are trying to strike a balance between cost and safety. < /p >
< p > more than 100 clothing companies have signed a legally binding Bangladesh security agreement for five years, including the Esprit SA, Holdings SA and Zara SA's parent company Inditex SA. According to the provisions of the Accord on Fire and Building Safety in Bangladesh, the companies that participated in the audit promise to pay for the necessary factory renovation and transformation. These companies also say they will not entrust manufacturers who fail to meet safety standards to undertake foundry production. < /p >
< p > at the same time, a < a href= "//www.sjfzxm.com/news/index_c.asp" > clothing industry < /a > announced the list of its member companies in Bangladesh for more than 1500 factories. The group's representatives include H&M, Inditex and Benetton SpA in Italy. < /p >
< p > > a href= "//www.sjfzxm.com/news/index_c.asp" > H&M < /a > public opinion surveys are also conducted between workers and managers of factories in Bangladesh and Kampuchea to determine the required salary increase. Helmer Song Helmersson, H&M's global leader in charge of sustainable development, said last November that the wages of garment workers should be able to feed themselves. (Helena) UNIQLO spokesman said the company also has a workshop monitoring project to ensure that factories provide employees with reasonable and appropriate working conditions, including wages. Consultants and labor rights groups say that despite this, improving factory conditions remains a formidable struggle. Despite the increase in factory audits, only about 20% to 25% of AsiaInspection customers carry out inspections. Bulto said that it costs money and does not generate direct income. < /p >
"P", according to Guo Zhanrui Labour Crothall, a spokesman for the China Labour Bulletin, said that most Western companies are still insisting on low prices and strict delivery time, which may force factories to take shortcuts. According to AsiaInspection's research, in 2013, the audit of factories in India increased by more than doubled, and China increased by 58% and Bangladesh increased by 47%. Explaining why the increase in factory audits in Bangladesh is slower than elsewhere, the retailer said more retailers had already checked in Bangladesh. In addition, some ILO questioned the value of the third party audit. Guo Zhanrui said that such audits are basically a waste of time. The factory is very good at hiding the most serious violations of labor rights, and teaching workers to give beautiful answers. Guo Zhanrui said the local government should take the responsibility to ensure that factories and retailers comply with the laws and regulations on wages and safety. < /p >