TOKYO -- With fewer young Chinese available to work in factories and environmental regulations in the country becoming tougher, some manufacturers, like Japanese casual clothing retailer Adastria, are shifting their focus to Southeast Asia, where production costs are significantly lower.
Adastria, which manages stores for brands such as Global Work and Lowrys Farm located mainly in shopping centers, says rising labor costs in China are squeezing profits. By working closely with partner plants in Southeast Asia, the company expects to trim costs by increasing purchases of materials locally while maintaining product quality.