| The exodus of manufacturing apparel and accessories | | | | States and Europe crease the designs and patterns. |
| off shore has led to the crumbling of the domestic | | | | The sketches are sent to fashion manufacturing hubs |
| factories. This has led to an outcry by some politicians | | | | in Hong Kong, Shanghai. Once sampled and approved |
| and activists to buy American made products. "Made | | | | they eventually end up in your Nordstrom's or Bergdorf |
| in China- Designed with the World" is the latest | | | | Goodman's. |
| marketing push the finance department of the Peoples | | | | Overseas laborers have also become skilled |
| Republic of China has blitzed in television, internet, and | | | | craftsmen in their trade, outperforming their American |
| radio internationally. | | | | and European counterparts in output and productivity. |
| China has recently suffered a number of | | | | This specialization leads to higher efficiency and quality |
| embarrassments stemming from poisoned milk, lead in | | | | in construction. Goods produced overseas also offer |
| toys, and a slew of other quality control problems in a | | | | less expensive finished goods. In some categories 40 |
| number of Chinese products. Most recently auto | | | | to 50 percent less expensive than if manufactured |
| industry leader Toyota has issued a major recall and | | | | domestically. This savings is then passed on to the end |
| apology after a major recall due to brake systems | | | | consumer. On a good Handbag Sale for example, a |
| failure across their most popular models. Many | | | | consumer can purchase 2 items instead of just one. It |
| analysts believe that the opportunity for domestic | | | | is important to keep in mind that as the economy |
| product to ramp up and take advantage of what is | | | | continues to globalize, lines that were once drawn |
| perceived as a decrease in the demand for imported | | | | have dissipated. Manufacturing is done in China, but the |
| items. Would it make sense to purchase only US | | | | design is in Europe, the sales are in the US. In the jeans |
| made goods given the current economic | | | | industry, the fabric comes from Asia, the jeans are cut |
| circumstances? | | | | and sewn in Mexico or Columbia and the finished good |
| First a comprehensive cost analysis would be required | | | | is shipped across the globe. |
| to make an informed decision. Let's take a closer look | | | | In this 20 year fashion industry low. Only the labels that |
| at the apparel and accessories industry where nearly | | | | set this standard and provide affordable prices will |
| all goods are now outsourced. There are macro costs | | | | succeed. |
| that need to be analyzed carefully. Cost of materials, | | | | Ultimate responsibility lays on the Quality Control |
| cost of manufacturing (labor), and import | | | | standards of the label. High standards, onsite |
| (transportation and duty) costs. What analysts fail to | | | | inspections, color, material, and construction approvals, |
| realize is migration of the apparel industry led to a | | | | laboratory testing, and a number of other measures |
| specialization in other markets as demand has ramped | | | | should be in place to ensure the quality of the brand. |
| up. China for example has become the textile factory | | | | Only the labels that set this standard and provide |
| of the world. The haute couture houses in the United | | | | affordable prices will succeed. |