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Date: 6 months ago   Category: Companies

China will climb up from a sewing needle


Sewing production gradually comes back from Asia to Europe. Analysts of the McKinsey company write about it. Why in China it became not so favorable to sew also what possibilities of Russia? Photo: Kevin Lamarque/Reuters the Creator of the Oh, My brand Sergey Kovelenov began to sew clothes in Russia eight years ago. Approximately then China also began to lose the positions in this market. Though "to lose", of course, it is loudly told: the country also until now sheathes all planet. The cheap labor was the main competitive advantage of China always. But times when the killed Chinese seamstresses almost for free of charge in cellars sewed clothes, consigned to the past. Labor cost in the People's Republic of China approximately was made even to Europe and the USA and if it cheaper, then now this economy does not cover cost for delivery of goods. Besides there are clothes from China long and while goes, get out of fashion. Russia began to sew more too. However, raw materials all the same foreign, Sergey Kovelenov tells: "We in Russia both sewed, and we are going to sew because we not small, it is more convenient to us for a number of reasons: small shops, there is a lot of them in St. Petersburg, everywhere, in principle. Volumes are multiple to thousands there. We buy all raw materials abroad. Unfortunately, we have raw materials of quality with which we could compete, we did not find. We are bought in Turkey and in Estonia. With China to do it is more difficult and more expensive". The big problem of China is a strong yuan. Beijing tried to devaluate the currency and encountered the sharp resistance of the USA. By the way, it was at Barack Obama. It is difficult even to present how Trump's administration can answer such step. Other reason as it is paradoxical, growth of welfare of the People's Republic of China. Workers have high income. Unemployment in the country at the minimum level — around 4%. Europe loses in it. To be exact, wins. Alexander Dushkin the asset manager of the International fund of private investments "The H&M company orders the production, for example, of footwear in Portugal. Some toys which are on sale in children's shops become in Spain. The first reason is, of course, a cost of production. It strongly depends on unemployment rate in the country. Portugal and Spain — the countries with rather high unemployment rate, therefore production cost there low". And what Eastern Europe and Russia whether they will be able to press China in the market of clothes? Analysts of McKinsey answer without special optimism: potential is, but poor quality. And labor, for example, in Russia too expensive. No, not because pay seamstresses more — work worse, the CEO of Finn Flare Ksenia Ryasova tells. Her company relatively opened recently production in Russia. Ksenia Ryasova the CEO of Finn Flare "A tendency such is that at us the labor turns out very expensive — not so much because of salaries, is so much because of low labor productivity. To work all the same as the seamstress not prestigiously and it is unprofitable. All the same not less than 30% we manufacture in Russia, but it generally such production where a minimum of the manual skills at most mechanized". Automation, about which

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