X Marks the Scot - An on-line community of kilt wearers.
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11th February 07, 11:46 AM
#10
Originally Posted by RockyR
When you have Nike making shoes in China, their costs are much lower than a competing company making shoes in the US.
The cost of Nike shoes has NOTHING to do with the cost of producing them but very much with the cost to sell them. Nike alone has now offered the DFB (German Football Federation) a whopping €500 million to end its deal with Adidas. Its an 8 year deal so that more than €62 million each year just to see the the German national team outfitted with Nike kit. Add in the cost to advertise this and other marketing costs and one quickly sees very very deep pocket costs.
Same goes for jackets made in Scotland vs. Pakistan or China. Cost of living has to factor into it.
Costs of living is an issue of standard of living but not of wages.
If the workers are paid $15 / hour and it takes 3 hours to make a jacket (pulling numbers out of thin air),
A jacket can take between a few hours and over 20 hours to make--- just like kilts.
the COST for LABOR is going to be $45... add into that material cost (more expensive materials used in making higher end jackets), overhead (rent, marketing, electric, employees, health care, etc).
Even in the US not all of that can apply. Look at the biggest retailer in the United States. Not all garment production in the United States is consistent to the legal labour (or immigration) standards. Things have come a long way since Triangle Shirt but its no utopia. Piecemeal pay (pay per item produced) in contrast to hourly wage is still rampant in a lot of the sweatshops (alongside exploitation of undocumented migrants).
If you have a company in China or Pakistan paying $5 / hour (that may be high),
High? The minimum wage in the highest category of related labour in China is 684 Yuan/month. That's just under 68 EURO monthy wage! Shall I also start to talk about labour conditions, working hours, worker rights?
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