European Fashion Brand Business Moves Westward And Desolate In China

As China moves to the upstream of the industrial value chain, many fashion brands are exploring suitable suppliers around the mainland, and many Western European countries are becoming new fashion manufacturing centers.

The cost of purchasing from China is on the rise, but it is still cheap, so the fashion brand decides to change to "made in Morocco" or "made in Moldova", not entirely at cost considerations.

The changing consumer behavior is the main driving force for the demand of the fashion industry.

Companies in the industry need to be flexible so that they can survive in the competition of strong competitors such as Inditex (ITX.MC: quotas) Zara.

Zara can launch a fashion show similar to T in just a few weeks. At present, 60% of its products are produced in Europe or around the world.

Underwear brand in Italy

By the end of last year, the brand had moved its Studio La Perla production line from China to Turkey and Tunisia and moved pajamas from China to Portugal.

The brand estimates that if the same work is to be done, if the labor cost of 10 euros is required in China, then 15-16 euros will be required in Tunisia or Turkey, so in this regard, the manufacturing cost in China is still the lowest.

But this is changing gradually.

Over the past five years, China's national wage index has risen by an average of 15% per year.

In addition, the conditions imposed by Chinese factories are more stringent, which makes fashion companies have to think twice when considering whether to cooperate with China.

French fashion brands

These brands indicate that Chinese manufacturers are constantly putting pressure on them, and the size of the order is too large, which may lead to a backlog of goods, resulting in a discount sale and damage to the brand image.

Jean Charles recently moved overseas production to Hungary, and its production leader, Celine Lopes, said: "the cost performance made in China is no longer satisfying to us." Mr. Lopez said.

Barbara Bui moved its production to Hungary, Bulgaria, Romania and Turkey in 2010.

Lagarde, deputy executive director of Jean-Michel Lagarde, said: "the distance and language barriers made in China make it difficult for us to keep good quality."

"We are more likely to act in our way when working with producers in southern and Eastern Europe."