Blog: Cloudy start to the week

Joe Ayling | 19 April 2010

As garment and textile manufacturing in emerging markets like Indonesia and Bangladesh takes off, planes remain grounded in much of Europe due to the volcanic ash cloud.

Chinese enterprises have identified the opportunity as much as domestic producers in emerging sourcing markets.

Last week just-style reported how nine Chinese garment makers were looking to relocate to Indonesia as part of a US$100m investment.

It demonstrates how labour shortages and a move towards more value-added manufacturing in China could benefit the rest of Asia's sourcing network.

This month's Prime Source Forum in Hong Kong painted a similar picture, although an overhaul of China as the dominant sourcing destination for clothing and footwear this decade is extremely unlikely.

Chinese plans in Indonesia could create 200,000 jobs, and similar investments in Vietnam and Bangladesh would bolster growth of these low cost producers.

However, it will be the achievements of local entrepreneurs that will set apart these sourcing markets, together with Thailand, India, Sri Lanka and Pakistan.

Meanwhile, the globalisation of all industry continues to be challenged by the volcanic ash cloud restricting flights over much of Europe.

While just-style's managing editor Leonie Barrie awaits her journey home from New York, this week's World Retail Congress in Berlin has also been postponed until October.

By Joe Ayling, news editor.

INDONESIA: Chinese firms eye major plant investments

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