Thursday, July 7, 2011

$300 jeans manufactured in the U.S. could sell for $40 if manufactured in China - Follow up to American innovation post

Here are some interesting stats from a July 7, 2011 WSJ article titled "How can jeans cost $300?" by Christina Binkley:

True Religion is one of the industry's giants, making 4 million units of clothing a year. He estimates that his $300 jeans could sell for $40 if he manufactured in China.

Still, Mr. Lubell has caved when it comes to jackets, the cutting and styling of which is more complex than pants. He makes them in Mexico, where costs are higher than in Asia, but less than in the U.S. The jackets retail for about $375. "If I made them here," he says, "they would be about $600."

True Religion's top-selling jeans, the Super T, cost about $50 to make and sell wholesale to retailers for $152 a pair. The average price in stores is $335. They feature white stitching on the back pocket and around the waistband.

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