30/08/2013

Business news : Chinese wages become too high for H & M , which will build on Ethiopia

(AFP OLIVIER MORIN)

To find a hand always work cheaper, the Swedish giant 's ready-to -wear will install its factories in Africa

What is the average monthly salary in China? 300 euros.Trop expensive, too expensive for the giant ready-to -wear, Hennes and Mauritz (H & M) . So to keep production costs minimal , the Swedish company will relocate elsewhere.

No way to bet on Bangladesh , where the collapse of a building of textile production had killed 1,200 people last spring. Too bad for the image.

While H & M has decided to turn to Africa and establish itself in Ethiopia. LeMonde.fr the study reports the Wall Street Journal found that " the cost of producing a garment made in Ethiopia is half the price of a garment made ​​in China. " And the figures are from 2011 , before the dramatic rise in Chinese wages .

But settling in the Horn of Africa , H & M should not feel too lonely . The pioneer in this area is ... Chinese. This is the Huaijan shoe manufacturer , supplier brands Guess and Tommy Hilfiger .

To be on communication , H & M is a powerful reminder of his concern for human well-being. "We did a risk analysis to push Ethiopia, by focussing on issues of human rights and the environment ," said a spokesman for the Swedish company . A detailed analysis ?

Ethiopia is among the poorest countries in the poorest continent. His government is regularly the target of Amnesty International , which says " deeply concerned by the repression orchestrated against freedom of expression in this country. "

The goodwill H & M , the ultra cheap clothing imposes a labor always cheaper . Ethiopia , who wants to grow by attracting large Western companies , the offers him on a platter.

In fact, even in Addis Ababa , the capital of the country, there is not a single store H & M. No more than in all of sub-Saharan Africa.


French source sudouest.fr by Pierre-Yves Crochet

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