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H & M seeking to move away from Asia but how can it resist the temptation of very cheap production cost?
Monday, 20 May 2013
Since the factory collapse that took 1,200 lives in Bangladesh, the Swedish fashion giant H & M has begun to explore the possibilities of production in South America and Africa.

Hennes & Mauritz  which is said to be the largest clothing buyer in Bangladesh, is now considering operation in South America and Africa, writes the Financial Times.
This came shortly after the collapse of a factory in Bangladesh, where over 1,200 workers died. According to Financial Times,  Karl-Johan Persson, chief executive of H&M, is said to be looking at countries such as Mexico and Brazil after opening its first store in the southern hemisphere this year in Chile.

Persson is also reported to have stressed that H & M did not have any business in the collapsed building in Bangladesh, and that their conduct would never have allowed production to take place in a residential building.

While he admits that the incident has given his company a cause to think about, to some extent when it comes to production, he indicates that H & M would continue production in Bangladesh, if suppliers meet certain requirements regarding working conditions and wages. H&M is one of the first of some 30 mostly European based retailers who last week sign up to a legally binding agreement to pay for factory repairs after independent inspections.

From the African side, in terms of sales, no specifics are being pointed at but one world not fail to speculate on South Africa though here labour cost would not be as low as in Bangladesh.
By Scancomark.com Team

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