American Apparel China
Updates to my February post discussing American Apparel, When in "Rome" Get a T Shirt:
As promised, American Apparel is finalizing leases for new stores in Beijing, Shanghai and Suzhou. The stores are scheduled to open next month, timed perfectly for the influx of tourism and spending associated with the Beijing Summer Olympics. Contrary to my previous post and interviews given by American Apparel execs, product manufacturing for the China market will continue in Los Angeles. Interesting reversal to the current cross-Pacific flow of manufactured apparel - China currently leads share of apparel imports in the US (1/3 of apparel sold in the US is manufactured there).
The company's LA headquarters will be home to even more jobs to support increased operations. That's a good thing and rare in the fashion industry. Also rare in the industry is American Apparel's commitment to livable wages in an effort to reverse the trend in sweatshop labor practices, domestic and abroad. Workers in the Beijing, Shanghai and Suzhou stores will be guaranteed, in the very least, hourly wages equivalent to the US federal minimum wage - currently $5.85/hour (Andrew Harmon for DNR, March 17, 2008). Currently. minimum wages in China are determined at the local level and on a monthly cycle. As of April 1, 2008, the highest minimum wage in China will be in the capital city (Guangzhou) of it's richest province, Guangdong, at $120/month (860 yuan). Chinese Labor Law restricts one day's working time to eight hours, and to an average of 44 hours per week, so rough calculations result in an hourly wage of $0.68/hour in Guangzhou. And wages are lower in Beijing, Shanghai and Suzhou, where the stores will be. No matter how you slice it, the $$/time ratio on jobs at these stores cannot be beat.
Another fascinating prospect is American Apparel's future advertising campaigns in China. The Chinese government's State Administration of Radio, Film and Television banned ads for women's underwear (among other intimate products) in September 2007. Radio/film/TV industry regulators feel strongly about the effects of sexually suggestive ads on China's society, morals and public health. Meanwhile, back in LA, American Apparel employees must sign a standard HR document declaring: “American Apparel is in the business of designing and manufacturing sexually charged T-shirts and intimate apparel, and uses sexually charged visual and oral communications in its marketing and sales activity.” It's likely that American Apparel will launch their brand in China softly and slowly, but CEO Dov Charney says he's planning on testing the waters. High leg kicks everyone!!!
As promised, American Apparel is finalizing leases for new stores in Beijing, Shanghai and Suzhou. The stores are scheduled to open next month, timed perfectly for the influx of tourism and spending associated with the Beijing Summer Olympics. Contrary to my previous post and interviews given by American Apparel execs, product manufacturing for the China market will continue in Los Angeles. Interesting reversal to the current cross-Pacific flow of manufactured apparel - China currently leads share of apparel imports in the US (1/3 of apparel sold in the US is manufactured there).
The company's LA headquarters will be home to even more jobs to support increased operations. That's a good thing and rare in the fashion industry. Also rare in the industry is American Apparel's commitment to livable wages in an effort to reverse the trend in sweatshop labor practices, domestic and abroad. Workers in the Beijing, Shanghai and Suzhou stores will be guaranteed, in the very least, hourly wages equivalent to the US federal minimum wage - currently $5.85/hour (Andrew Harmon for DNR, March 17, 2008). Currently. minimum wages in China are determined at the local level and on a monthly cycle. As of April 1, 2008, the highest minimum wage in China will be in the capital city (Guangzhou) of it's richest province, Guangdong, at $120/month (860 yuan). Chinese Labor Law restricts one day's working time to eight hours, and to an average of 44 hours per week, so rough calculations result in an hourly wage of $0.68/hour in Guangzhou. And wages are lower in Beijing, Shanghai and Suzhou, where the stores will be. No matter how you slice it, the $$/time ratio on jobs at these stores cannot be beat.
Another fascinating prospect is American Apparel's future advertising campaigns in China. The Chinese government's State Administration of Radio, Film and Television banned ads for women's underwear (among other intimate products) in September 2007. Radio/film/TV industry regulators feel strongly about the effects of sexually suggestive ads on China's society, morals and public health. Meanwhile, back in LA, American Apparel employees must sign a standard HR document declaring: “American Apparel is in the business of designing and manufacturing sexually charged T-shirts and intimate apparel, and uses sexually charged visual and oral communications in its marketing and sales activity.” It's likely that American Apparel will launch their brand in China softly and slowly, but CEO Dov Charney says he's planning on testing the waters. High leg kicks everyone!!!