Swedish fashion group H&M is planning to produce some of its clothes in Ethiopia. The first test orders have already been made and mass production can start in the spring of 2014. The change is justified with production costs: In recent years, H&M was able to produce in China partly under inhuman conditions and by engaging in wage-dumping. As wages are currently rising in China, however, the Swedish corporation sees its profits endangered and therefore engages in Ethiopia, where wages are only half as high. Investors of H&M are the main beneficiaries of cost reductions.
For more information, click here.