European Fashion Brand Business Moves Westward And Desolate In China
The cost of purchasing from China is on the rise, but it is still cheap.
Fashion brand
The decision to change to "made in Morocco" or "made in Moldova" is not entirely a cost consideration.
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
La Perla
Designer Bianchi (Giovanni Bianchi) told Reuters: "the cost of producing garments in Turkey and Tunisia is higher than that in China, of course. But considering the increase in China's salary, the cost is not much higher, and Turkey and Tunisia are much closer to Italy, which is more convenient for us and better quality control."
By the end of last year, the brand had been a popular brand.
Studio La Perla
The production line was moved from China to Turkey and Tunisia, and the pajamas procurement was moved 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.
The Institut Francaisdela Mode estimated that the monthly salary of China's coastal areas rose from 240 euros in 2005 to 400 euros last year, while Tunisia's monthly salary is 160 euros, while Morocco and Moldova are 152 euros and 200 euros respectively.
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 brand Jean Charles Decastelbajak (Jean-Charlesde Castelbajac), Barbara Bui (BBUI.PA: quotes) and IgG (Etam) (TAM.PA: quotes) have recently moved part of their production to closer to the mainland.
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."
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