YANBU, China—A Chinese city that is home to more than 200 underwear manufacturers is feeling the pains of the global recession, as cutbacks in consumer spending mean shoppers are even cheaping out on their undies.
Yanbu, China, has thrived for decades on the intimates industry, boasting more than 20,000 jobs. The southern city is located just web of Guangzhou.
According to a report on Toronto’s TheStar.com, manufacturing centers across southeast China that rely on exporting their goods are struggling.
"Big buyers who used to buy top quality underwear are now buying in the mid-range," Chen Weiqiang, a leading manufacturer who also chairs the local industry association, told the press. "And those who bought in the mid-range have now moved down to the lower ranks."
In an effort to combat the recession, manufacturers are looking to ship their goods more locally: China has more than 600 million women. That new business strategy, Weiqiang told the newspaper, could help offset the companies’ international losses.
"Overall, I fully expect our sales to drop 10 to 12 per cent this year – and our net profit probably even more. But still, our company remains stable and I remain optimistic about the future," he told the paper.
According to the report, most workers in better factories in Yanbu work six days a week and earn about 1,700 to 1,800 Chinese yuan each month (about $270 to $285).
