China loses the jingle in its jeans Diesel Jeans
Posted by iceyaotiao on March 17, 2011
Other firms followed his lead and soon every country was taking advantage of Xintangs pool of cheap and hard-working labour.
The town maps out an anatomy of the denim trade. Along the motorways leading out of Xintang are the large ctories, some capable of producing 60,000 pairs of jeans a day for the likes of Calvin Klein, Levis, Lee and Wrangler.
Heading inland
If you own a pair of jeans, there is a strong chance that they were stitched in Xintang, or that the denim was woven there. Thirty years ago it was a rming town, but is now home to a million ctory workers and turns out 260 million pairs of jeans a year, more than a third of the worlds supply.
The workers who were once happy to work for as little as $50 a month now want 10 to 15 times that sum. Young men with the latest mobile phones and stylish hair cuts stand around two outdoor pool tables in Dadun, on the east of the town, gambling on their games.
More and more are preferring to try their luck at one of the new ctories or construction projects in inland China, where the cost of living is lower.
The industry whirred into life 30 years ago, when Huang Lin, a businessman in Hong Kong, saw the potential of moving his jeans business into China.
Along one road, the ctories have stencilled on their windows the names of the countries to which they ship, a list that ranges from Libya to Poland.
We are still getting orders from abroad, all the ctories are, said Wei. But no one is taking them because we would make a loss. The foreigners do not want to pay a reasonable price. We have not made any profits for two years.
It is becoming impossible to find people to work, said Han Zhongliang, a 46 year-old ctory owner. I have been here 10 years and I used to have 30 to 40 employees.
The Sea Mountain Clothing company, which Wei set up seven years ago with her husband, Tian Yi, 34, is one of 5,000 jeans ctories in Xintang, a town on the edge of the southern city of Guangzhou that has become the denim capital of the world.
Sitting on a bale of denim in her idle ctory, 24-year-old Wei Xiaofeng is watching the collapse of an industry that has driven the era of cut-price shion in the West.
One ctory boss boasted that his company had put denim mills in Eastern Europe to the sword, but Xintangs domination is coming to an end.
Their technology is good enough for even the more esoteric and expensive labels such as True Religion, Evisu and Diesel that were once made only in Japan or Italy.
For years, her company and thousands of others in China have helped British stores to offDiesel Jeans saleer cheaper and cheaper shion -jeans that coChina loses the jingle in its jeans Diesel Jeansst less than $15.75 or T-shirts for pounds $4.72 -and turned the likes of Zara, H& M and Topshop into global giants.
Cant take orders
An employee works at a garment ctory of Hefei Shichao Clothing Co. Ltd in Hefei, Anhui province, China.
Their ctory is only paying them for six hours a day in an attempt to lower its costs.
Out in the suburbs, mily workshops spill onto the road, with groups of women clustered around piles of jeans, stitching on labels, using heat guns to burn off loose threads and bagging them for sale. Xintangs environment has suffered for the towns success. Last year, Greenpeace released a satellite image showing run-off from the cotton dyeing plants turning all of the towns water and much of the Pearl River a deep indigo.
The side streets are taken up with the accessories of the trade: button and rivet shops, stores selling zips, and rows of businesses selling yards of denim, with trucks buzzing between them carrying bales of bric.
But the system has broken down. Weis company has stopped accepting orders. Factories are losing staff to the booming and better paid construction industry, and those workers that remain are ever higher wage demands. The price of cotton has all but wiped out profit margins.
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