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Here's a story out of Bangkok that I simply could not resist commenting on. Lumyook - the Thai importer of Playboy merchandise and owner of Chic Club retail stores - announced plans to add male underwear to its arsenal starting in 4Q of this year. While not exactly the same demographic (18-40 year old metrosexuals) as a brand like Calvin Klein it does speak to the different level of competition and low barriers to entry for basic apparel categories when leaving US borders. Notable in that International accounts for better than 75% of Warnaco's growth.

Even more noteworthy, I think, is that Lumyook will reduce imports to 50% of consumption next year, versus 70% today. Assuming that Lumyook is not grossly out of line with the rest of Thailand (which it is not) this means more local capacity will be dedicated towards local consumption. That takes the bid higher for the US brands looking to diversify from China by sourcing in Thailand.