Fashion Slow Lane!

Many brands are nervous about moving their production out of China to Cambodia or other countries. I have put this list together to cover the basic differences to be aware of when moving production from China to Cambodia.  Raw Materials: Materials and hardware (raw materials) need to be purchased from mainland China and then shipped by container to Cambodia. This shipping cost is amortized over the value of the bags by the unit.   Bringing raw materials from China to Cambodia adds up to 30 days to production lead time. Production lead time is 90 days plus as instead of 60 days like China. Payment Terms: for customers are usually shorter when producing in Cambodia. It is due to long lead for material handl ing , factory ties up cash on the material  in  the warehouse and new Cap X. The factory will usually ask customers to help with cash flow by having shorter payment terms. Efficiency: It takes a longer time to set up the production ...

All handbag designers have heard about the "Trade War" that is currently going on with China and the United States. President Trump as of September 24, 2018, has imposed a 10% tariff on all handbags imported from China to the United States. Word on the street is that in January 2019 the tariff will increase to 25% on all handbags. While that is yet to be seen, many major fashion brands are planning to move their production out of China to avoid these hefty duties. Good news! I am working closely with a reputable China factory group that has handbags and belt factories in Cambodia and Myanmar. In Cambodia, many handbag factories have been in place since 2015. The workforce is mature and well trained. The Cambodia handbag factories can handle large orders from brands such as Michael Kors and Guess? In Myanmar, although the factories are newer, the factories are up and running smoothly. I have connections with great belt, soft luggage and handbag factories in both of these...