CFOs Look Beyond China Amid Rising Labour Costs

Chief financial officers of some U.S. apparel and accessories retailers reveal they are considering relocating production to countries with cheaper labour costs, says the Wall Street Journal.


Citing Rick Darling, president of LF USA, a unit of Hong Kong-based Li & Fung Ltd., China's labour costs have been pushed up by 5% to 15% on average this year.


While higher income has boosted the purchasing power of Chinese consumers, it has prompted the CFOs of AnnTaylor Stores Corp., Guess Inc., and Coach Inc. to consider moving production into geographies that have a better cost base from a labor standpoint.


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