With the resurgence of cases of the Delta variant in China and Vietnam, several large clothing and footwear companies are moving from these countries to countries closer to their stores in the United States, Europe or Morocco.
Spanish fashion retailer Mango, which made much of its products in China and Vietnam, said on Friday that it will now significantly increase the number of production units installed in countries like Morocco. , Turkey, and Portugal. Likewise, US shoe retailer Steve Madden has announced that it has closed its production unit in Vietnam and shifted 50% of its shoe production from China to Brazil and Mexico. The Crocs company also reported last month that its production was moving from China to countries such as Indonesia and Bosnia.
“We are seeing huge growth in freight and trucking business in the former Soviet republics … Huge increase in Hungary and Romania,” said Barry Conlon, CEO of Overhaul, a chain risk management company supply. In Turkey, clothing exports are expected to reach $ 20 billion this year, compared to $ 17 billion in 2020. The situation is the same in Bosnia and Herzegovina where exports of textiles, leather and footwear stood at 739, 56 million marks ($ 436.65 million) in the first half of 2021.
“Many companies in the European Union, which is our most important trading partner, are looking for new suppliers and new supply chains in the Balkan market,” said Muris Pozderac, secretary of the association for textiles. , clothing, leather and footwear from Bosnia and Herzegovina.