In my personal experience though, although many people put great value on goods that are made locally (within the country), they're not willing to pay the kind of $$ that it'll require to make that possible.
Financial Times article: Coach Shifts Half of Manufacturing Out of China
- Thread starter jane
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Exactly, especially when a similar item, not produced regionally, can be obtained for far less.
Hey our government would rather spend money helping other countries than our own and businesses would rather outsource to other countries than our own, yet people wonder why our economy is the way it is (losing money on our home values, high unemployment rates, etc) or why our country has such a large deficit. I could go on and on....
The reason why businesses outsource is because they can't afford to make their goods here any longer-doing so would mean higher prices that most people would refuse to pay. We live in a culture that demands LV quality at Wal-Mart prices. Very unrealistic.
No, actually most of it is due to the greed of Wall Street and the banking industry. They are responsible for the economic crisis that almost sent us into another Great Depression. That greed caused the housing market to collapse and that caused a domino effect. Companies panicked and starting kicking their workers out into the street. My husband worked for his company for 20 years and they repaid his loyalty by laying him off. Took him 2 long years to find a another job.
Back on topic though-I wonder how many of us Coachies would still be so addicted if they decided to move their manufacturing back to the US and as a result, starting offering their bags at LV prices?
Good explanation. I agree. Many who loved this brand got used to the idea that Coach left the USA to move to China where everything was cheaper and those that couldn't wrap their heads around it moved on to other brands a long time ago. Now that Coach might have to pay a living wage to mainland workers and may not make their yearly huge profits they are looking tomove on and take advantage of countries where the local economy is worse than in China.
Big Boo Coach!
this if very standard busines operation.. and the reason many companies went to China in the first place.... They help there economy grow and now China is a leading world market...
Now many companies that can not afford the new cost of living prices in those countries will move on and do the same to another country... It is not bad or good it is just business.. That is what happened when they moved to China there were issues (still some member have issues with this)... As far as the Purse going up... it still cost tones of funds to make the purses and esp market the purses and pay emp and make a profit and that is why they are doing a partial move and why the bags cost the price..
At least they did not do an 11% to 13% increase on the bags like most of the bag companies did...
Here is my take.. I get that some if not most things are produced in China and overseas. I have no control over that. It is getting harder and harder to find things made in the USA. My hubby and I are huge supporters of small family owned business and made in USA.
In my mind, growing up, bags like Coach and Dooney, were American companies, so their stuff was American made. Things like Gucci was Italy made. It was a big deal to have something made from "Italian Leather.." etc..
Anyway, the point I am getting to is, Yes, Coach is "affordable luxury"
In that sense, if I WANT a Luxury Item, and expect to pay the bucks for it, I also expect it to come from US or Paris, Italy.. for a fine bag.
If I wanted a bag Made in China, then I can walk into any store and chances are, yes, it is made in China. I do not want to pay higher prices for a designer bag, no matter how big or small the designer for a product produced in China. For me, that somehow cheapens my "designer bag" and simply makes it an overpriced bag that I could have gotten somewhere else cheaper.
Since it is a luxury item, I can control where that money goes into.
That is my 2 cents.
It is sad... Corporations will chase down the cheapest method of production. I understand business is business, but being fair, humane and ethical should mean something. These days it doesn't.
Just my two cents... Companies do not go to less modernized nations to help them out. As you said, this is about business. Taking advantage of the dire straits of a poor nation, or a disaster, etc., is not what I would view as "standard business" practice but, instead, predatorial behavior. Look at the debts incurred by nations for our (our = primarily US, World Bank, etc..) good will in helping with their modernization and allowing our companies to operate on their soil. Our good will translates into US-owned corporations making a veritable killing on other nations.
Yes, the bag prices may increase if their factories remain on US soil.. it's a price I'd prefer to pay myself.
I did not mean to state that they go there to help the countries I am well aware that they do it to take the advantage but in the end that is the countries going rate and taking there business there does help even if they just do it to make more money...
In the end the issue is that this happens all over the world.. All sorts of Countries do this all the time... Many clothing companies are moving to some South American Countries because Asia is getting to expensive other companies are moving to poorer Asian Country or India, ect... It is the way of doing business on a global scale...
Lets not forget that in the USA there are many a job where the employee does not get paid a fare wage for there work....