Masters of Reinvention
Reinvention #3: Outsourcing Overseas
The years 1999 to 2000 were pivotal for Paul Fredrick MenStyle. In a very painful decision, Abrams and Sacher made the most drastic of decisions — to close their remaining U.S. shirt factory and outsource all dress shirt manufacturing to overseas plants.
They were guilt-ridden, having to lay off 100 people. The Paul Fredrick MenStyle shirt business had been built on promoting “Made in the USA.” Sacher says, “I believed in that stuff — remember the jingle ‘Look for the Union Label?’” Yet he could get equivalent quality shirts at half the price from Asia. So he contracted with two factories in Hong Kong where they knew management treated the workers well, paid them better than average wages and took excellent care of the workers’ families.
- Companies:
- Paul Fredrick
Denny Hatch is the author of six books on marketing and four novels, and is a direct marketing writer, designer and consultant. His latest book is “Write Everything Right!” Visit him at dennyhatch.com.
