U.S. clothing firm seeks good fit in China
American Apparel plans to open stores in the Asian giant and sell its L.A.-made clothes.
A local clothing maker is putting a new spin on a sore subject: American Apparel Inc. is opening stores in China this spring, and stocking them with T-shirts, shorts and hoodies made in downtown L.A.
Talk about going against the tide: One-third of the clothes sold in the U.S. come from China. Just 6% of the things we wear are made here.
Taking T-shirts stitched in L.A. to consumers in Beijing, Shanghai and Suzhou would fit American Apparel's business plan. The company has carved a niche in the last 10 years cranking out tank tops, shorts and hoodies in Los Angeles' warehouse district, where a banner atop the factory reads -- in red letters -- "American Apparel is an Industrial Revolution."
It's more efficient and less expensive to source from one country than from multiple sites, as many other companies do, Chief Executive Dov Charney said, and importing products from a collection of nations involves more headaches and costs.
"Made in the USA," he said, "becomes a competitive advantage."
Charney said the company would pay sales clerks in the Chinese stores hourly wages exceeding the U.S. minimum of $5.85, which in some parts of China is more than a worker makes in a day.
"There's not an employee of American Apparel that makes below the U.S. minimum wage," he said. To get "well-manicured" people who understand a brand, "you're going to have to pay," Charney said. "We're hiring American Apparel employees. We want them to be part of our corporate family."
Cai Yanchao, who sells clothes at Hot Wind, a shop in central Shanghai, said she would jump at $5.85 an hour. It "sounds like a lot to me," said the 19-year-old who makes the equivalent of about $214 a month, including commission, and whose employer pays for food and housing. (American Apparel won't do that.)
She had never heard of American Apparel, and neither had Sandra Zheng, a 25-year-old communication specialist who works for the Shanghai branch of a U.S. bank.
"I only know that brands like Tommy and Polo are American ones, right?" said Zheng, who makes about $3,000 a month and spends $286 to $429 of it on clothes.
"If it is the style that I like, I might consider visiting when it is open," Zheng said.
There's no guarantee that the Chinese will warm to American Apparel's basic, logo-free, no-glitz offerings as they have to loftier brands, such as Louis Vuitton and Gucci, and trendy lower-priced fashions from Hennes & Mauritz or Zara.
