The falling value of the dollar is having some interesting outcomes for the global market.
In a move that turns the traditional concepts of globalization on it’s head a US company will begin exporting to China, instead of the other way around.
Privately owned label Joseph Abboud, plans to open stores in China and sell professional Chinese men the cachet of “Made in the U.S.A.” label. The Joseph Abboud label will be manufacturing tailored suits, jackets and trousers at its New Bedford, Massachusetts factory and export these goods to China.
The company already supplies upscale U.S. stores such as Neiman Marcus, Saks Fifth Avenue and Nordstrom. Now they want to buck the trend and export tailored suits to countries that the U.S. typically has imported from.
“The concept of products being made in America and then exported to China is really odd,” admitted Marty Staff, chief executive of brand owner JA Apparel Corp, owned by Staff and Boston-based private equity firm J.W. Childs Associates. “We’re taking this in the wrong direction, but it worked.”
“The idea of bringing an American designer to China but have it not be bright T-shirts but have it be fine tailored clothing was revolutionary to all the people we spoke with in China,” Staff said.
Despite high U.S. labor costs, the Joseph Abboud label has resisted outsourcing manufacture to overseas countries through smart business moves like federal subsidies on fabrics.
As for how Chinese consumers will respond to a relatively unknown U.S. brand on their shores, Staff replied: “I don’t think not being as well known as Mr. Armani is a real issue.”
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