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If the cost of labor is gone, another cost comes into focus - cost of transportation, including the time it takes to ship. Example: Zara produces in Spain as h
by pinaceae 10y ago
If the cost of labor is gone, another cost comes into focus - cost of transportation, including the time it takes to ship.
Example: Zara produces in Spain as high fashion items have a very short shelf life, whereas a container with skirts takes a bit to come from China to Europe.
If I gain an advantage by producing closer to my buyer, I'll do it.
Just-In-Time production becomes even tighter. That Amazon Prime 24h delivery item could come hot of the press.
- nametakenobv 10y agoZara has a very unique marketing/manufacturing/logistic model.
- alphydan 10y agoZara (or more generally Inditex) does quality control in Spain, but a small part of the products are manufactured in Spain. Their Bangladesh suppliers have ~300,000 workers vs. ~6,000 in Spain [0]. To counter your point, it seems that a piece of clothing manufactured in China will be shipped to Spain, quality controlled, tagged, fitted with RF-ID and then sent back to China for selling [1]. So it doesn't seem to follow the model you suggest where proximity matters. [0] http://www.elespanol.com/economia/20160222/104239851_0.html http://www.elespanol.com/economia/20160222/104239851_0.html [1] http://economia.elpais.com/economia/2015/03/17/actualidad/1426615669_374276.html http://economia.elpais.com/economia/2015/03/17/actualidad/14...