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Will Japanese manufacturers dominate the blue jean market or will American companies prevail?

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Japan

Japan is not a major player in the denim manufacturing world according to import statistics. Japan has been more into high tech with a fast moving lifestyle and booming economy. They are a major importer of goods from China.

Depending on the quality of the denim fabric, more product comes from China, India, Viet Nam and Bangladesh. Another major player is the Dominican Republic, which can be good news for Americans since some of their denim comes from the U.S. It's a fact that the U.S. has been out of the apparel manufacturing market for over 10 years. This is not because of cheap labor but because of the U.S. economy. And, because of us, the consumers who are always looking for cheaper but high quality.

After a career importing apparel from offshore, I speak from first-hand knowledge. I have spent about 70% of my time over the past many years primarily in China and also working in Viet Nam, Taiwan, India and Mexico. We manufacture high end products including denim. As Global Field Operations, I worked with the owners and side by side with the workers. My job was to observe their manufacturing processes to assure quality standards were in place and compliance regulations were being followed. I trained many to our quality standards and taught them best practices from other manufacturers. I've been in over 200 factories and 50 fabric mills.

I have never found appalling conditions. I have found some things worth making observations about but nothing that would make me even consider pulling our goods out.

The American Apparel Association started the crack down on cheap labor and unhealthy conditions way back to the Kathy Lee Gifford expose. Since, our government has put in rules and regulations where offshore manufacturers must qualify and meet our standards if they want their goods to clear Customs and enter the U.S. This is a fact.

Today's global manufacturing work ethic has been about building partnerships. Building relationships based on mutual need and benefit. It's not about us or them. We are one. Just check internet statistics. There are over 1 billion users!

So next time you're in WalMart, say thank you world.

Learn more about this author, Kathy Andrews.
Contact this writer Click here to send Author comments or questions.

US

Something is awry here. None of those writing on the Japan side of this debate actually mention any Japanese efforts or market positions in the blue jeans market. I suspect that someone wrote Japanese, but meant Chinese or Asian. In fact, Japan is not at all a low labor cost country. I know of what I write. I lived and worked in Japan for about 20 years. Most Japanese themselves prefer Levis. The Japanese jeans manufacturers that I have seen use marketing campaigns to imply a connection to America.

I do not see an economic competitive advantage in denim for the Japanese. In textiles, the advantage goes to China, India and S.E. Asia, not Japan. If Japanese brands were able to develop premium products with prestige and prices higher than Levis, it would be another question. However, jeans must fit right, particularly for women and Japanese women a simply differently proportioned than in America.

Without dominance of the premium market, the only way to control the market is through volume in the medium priced and low priced markets. That requires very low costs and that simply doesn't happen in textiles from Japan any longer. If Japan owned the brand names, it could out source production to low cost countries, but I do not believe that is the case. Apparently, nobody else does either.

My suggestion is to refocus this debate to where it counts: China. However, although China has the cost advantage, I don't know of any Chinese brands of jeans. Manufacturing is one thing and marketing is often quite another. Unless you own the brand, you don't control the destiny of the product. As soon as someone else is cheaper, the orders dry up. It is a dog eat dog world in contract manufacturing, particularly for relatively low tech products. Some day, China will try to develop brand name positions to retain business, but as far as I can tell that has not yet taken place much.

Learn more about this author, Robert C. Sage.
Contact this writer Click here to send Author comments or questions.

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