Spreading out the supply chains and exploring other countries amidst trade war is key to survival.
These are the thoughts endorsed by Stanley Szeto, Executive Chair, Lever Style. Till a decade back, Lever Style, a Hong Kong-based apparel manufacturer, had its production base in China but rising costs have forced the company to move out to other countries like Vietnam, Cambodia and Indonesia.
However, moving to Vietnam and Cambodia is also not the only option. While speaking to media, Stanley said “Knowing the US President, he could slap tariffs on Vietnam or any other country next year. So the key is to be as flexible and as agile as possible in order to survive.”
On Sunday (1 September), US and China had imposed new tariffs on each other’s goods.
Stanley also said that Lever Style is exploring many countries to spread its geopolitical risks.
Stanley, who is also the chair of Textile Council of Hong Kong, reportedly added that his company is also trying to change the way factory is managed by working with production partners around the region instead of going all alone.
“Being versatile is the order of the day,” Stanley said.