Austrian Media Reports That More And More Garment Companies Are Returning To Europe To Set Up Factories.

According to the report of Kurier in May 2nd (2019), in recent years, more and more fashion industry has returned to Europe to set up factories.

(1) fast fashion (Fast Fashion) leads the trend.

In the past, most of fashion products were divided into one season as a series of products. However, in recent years, the taste of fashion has been shortened, and consumers' personalization requirements are getting higher and higher. For example, the window display of Zara has reached the frequency of replacement every two weeks to launch new products. Due to the long delivery time and higher order quantity of Asian manufacturers, European suppliers have to consider moving the production line back to the point of sale in response to the trend of multi style and rapid innovation in the fashion industry.

(two) the weakness of the euro will enhance the competitiveness of European products.

In recent years, the euro has been weakening, and European fashion companies have considered profitability. They have shifted their production bases from Asia to Europe, Spain, Portugal and Turkey. For example, Sport 2000, a sporting goods chain in Austria, plans to turn its garment production line to Portugal. Sport 2000 executive director Holger Schwarting said that not only the fashion industry, bicycle manufacturers also have their orders or production lines from Taiwan, China, Bangladesh and other countries to Italy, Czech and Bulgaria.

(3) China's manufacturing costs are becoming increasingly expensive.

China has rapidly lost the advantage of cheap labor cost, and other production costs have also risen sharply, especially in the textile industry. Many European fashion companies have already exported Chinese production bases, or transferred production lines to Southeast Asian countries, or moved their production lines back to Europe. Gabor Rose, executive director of JONES fashion chain in Austria, said that in the apparel industry, the cost difference between Asian production and production in some European countries is becoming smaller and smaller, so the company has transferred its supply from Asia to Lithuania, Italy, Bulgaria and Turkey several years ago.