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Business

China's high costs push clothing maker Adastria to Southeast Asia

Manager of Global Work and Lowrys Farm stores wants 30% production in the region

A worker sews a garment at a factory in Myanmar. Adastria plans to shift more of its manufacturing and procurement to Southeast Asia.

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. 

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