Apparel maker Makalot Industrial Co (聚陽實業) yesterday said its consolidated sales last month reached NT$1.43 billion (US$47.81 million), up 5.08 percent from NT$1.36 billion in the same month last year.
First-quarter sales totaled NT$4.3 billion, up 9.26 percent from NT$3.93 billion the previous year, it said in a filing to the Taiwan Stock Exchange.
As wage levels in China rise, global fashion brands have expanded procurement from companies with factories in Southeast Asia, including Makalot, Makalot public relations manager Mavis Chiu (邱美惠) said by telephone.
Asked whether Makalot offered clients lower prices because of its more competitive labor costs, Chiu said that the company cannot escape competitive pricing, but that the key to winning market share is delivering quality products on time.
Chiu said the company also benefited from its clients in the US, as they continued increasing their orders with Makalot.
Makalot launched a new brand, Fisso, on March 5. The company said it was still too early to tell how the brand would perform.
Chiu expects higher sales growth this quarter.
Last month, Makalot chairman Frank Chou (周理平) said the company is aiming to post double-digit percentage revenue growth this year and in the following two years.
Last year, Makalot’s revenue was NT$15.87 billion, up 4.96 percent from NT$15.12 billion the previous year.
Makalot shares rose 5.91 percent to close at NT$116.50 yesterday. Over the past 12 months, they have climbed 35.47 percent.