Financial Times article: Coach Shifts Half of Manufacturing Out of China

jane

jane

since '05
O.G.
Sep 28, 2005
8,113
4,056
#1
Coach Shifts Half of Manufacturing Out of China

This article kind of disgusted me, even though I understand that's how capitalism works (sometimes, not every time!). Quotes from Coach like "We are subject to rapid wage increases in China..." Oh no, we can't possibly pay a livable wage, better move everything to an even more dirt poor country: "We are beginning to diversify production out of China into other Asian countries that are not enjoying that level of prosperity."

And of course the price of the bags will continue to rise, while production and possibly quality decline further. It makes me SERIOUSLY and I mean seriously consider halting purchases of Coach products, particularly lines made in these developing economies, and just be happy with what I have, not to mention appreciative of the beautiful items I have from other luxury brands that were sourced in Europe and the US.
 
#5
I really don't see the big deal. Even brands that claim to be made in Italy or France buy their materials and fabrics from China and other countries, then have the bags put together in Italy or France so they can crow that their goods aren't made in China. If Coach bags were still handmade in the USA we'd be paying Hermes Burkin prices for them. Also, I bet if Coach announced it was staying in China but raising the prices on their bags so they can pay their workers better people would still complain.
 
#6
Yeah, not much to say. I guess this may become the norm for many companies already producing in China. Funny how companies that manufacture high-end luxury accessories can claim that production costs are getting too high in certain areas while their price tags keep going up and up along with popularity (and quality seems to go down).
 
#7
Actually I don't like outsourcing of any kind....I would personally rather pay more for goods made and sold here. Many people probably feel that way about their respective countries as well. The same thing will happen with IT, tons of jobs outsourced to other countries, when wages go up in those countries, you will see the big corps find another country with cheaper wages. Price to the consumer never goes down, just more $ for executive big wigs' bonuses and golden parachutes. Coach, unfortunately, is like every other big conglomerate in that regard.
 
#9
They probably said the same thing to justify the same move from US production to China and it hasn't affected their sales. That's the state of business in this economy - doing more with less.

Very few luxury brands are produced in the US or Europe, and the ones that are have prices far in excess of Coach.
 
#10
What really bugs me is this: one reason some people chafe at the idea of things produced in China is because of their long reputation for low wages and poor conditions for workers. Now that appears to be changing as China becomes increasingly modernized, which is something that would actually make me feel a little better about buying Chinese goods -- well-paid workers and higher standards.

So just when things seem to be moving in that direction, Coach jumps ship (again) so that they can continue to make huge margins. Screw worker wages, right? Where does it all end? A sweatshop in Sri Lanka? Ten cents an hour for your $800 bag? It's just scummy, imo.
 
#11
Kind of off topic but I was reading about the Olsen sisters the other day and how they're still manufacturing their (really expensive) clothing line in NYC.

http://www.newsweek.com/2011/04/24/look-ma-we-re-fashion-moguls.html

They also have become champions in a longstanding effort to save this country’s garment factories. In 1965, factories in America produced 95 percent of the clothes sold in this country, according to savethegarmentcenter.org. Today, only 5 percent of the clothes sold here are produced locally. The future of New York’s garment center is no longer in mass production, activists argue, but rather in small-scale, high-end manufacturing that relies on skilled artisans.
Click to expand...

Isn't that amazing? How we went from 95% in 1965 to 5% in 2011?

Anyway their handbags are made in Italy. :P
 
#12
And yet somehow in 1965, Americans could still afford to buy clothing.

I'm sure this has nothing to do with the continued destruction of the middle class.
 
#14
jane said:
And yet somehow in 1965, Americans could still afford to buy clothing.

I'm sure this has nothing to do with the continued destruction of the middle class.
Click to expand...

Well said, Jane.

I found some items among my parents possessions when clearing their home. Things like cookie sheets they bought at K mart. Still in the package from probably 30+ years ago. Kmart, $3.00 for two, and nice quality. Made in USA stamped on the back.

Not now.


What world will our kids have?
 
You must log in or register to reply here.
Top
Back