Tuesday 14 February 2012

Peacocks, KPMG and an Indian ...

... textile and clothing company, the way forward for the Far East.

With the realisation that outsourcing the manufacturing of clothing and other textile products, to places such as India and China, is no longer the most effective (£link) and efficient method of production, what is happening behind closed doors at KMPG should come as no surprise to observers of economic trends.

As reported in todays Times ...
... to salvage Peacocks from administration (Marcus Leroux writes).  S Kumars Nationwide (SKNL), a textile and clothing manufacturer based in Mumbai, was last night locked in talks with the administrators KPMG. It is believed to be in the driving seat after interest faded from Edinburgh Woollen Mill and Alshair Fiyaz, a Pakistani clothing magnate. In 2009 SKNL, which turned over 51.8 billion rupees (£667 million) last year, bought Hartmarx Corporation, an occasional tailor to President Obama, and Emeresque Brands, a British investment vehicle.
KPMG refused to comment. 
...  following on from paragraph 2 ...
... the need to adapt quickly to changing fashions has prompted River Island to bring its manufacturing back to Britain.

The clothing chain, one of the country’s largest, said that rising labour costs in China were also making production in Britain more viable. It has increased the number of items produced at home by 50 per cent in the past 12 months and says that the changes have paid off.

Ben Lewis, the chief executive, said: "It has allowed us to get new fashion to our customers much quicker than we were able to, and as a result some of those products have become absolute best-sellers. We can get more of them and work closely with the factories."
The Far East recognises the symptoms and have come to Britain, not for the benefit of Britain, but to lock the British consumers into their production .....

..... does Cameron and our home grown Jones realise what is happening, there needs to be an incentive to encourage manufacturers to imitate River Island, zero business rates and a 10 year free corporation tax for returning "prodigal manufacturers", and similar for those that remained.

Both Cameron and Jones, between them, have the means to see the repatriation of manufacturing to Britain .......



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