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Growing number of fashion companies want to move away from ‘race to bottom’ in China

The clothing we buy in the store is mainly made in Asia. The reason for this is clear: the production costs are a lot lower there than here. But production in China appears to have more and more disadvantages, as it appears certainly in corona time. Fashion companies are therefore increasingly looking for production in Europe, sometimes even in the Netherlands.

“This time indicates the need for something to be done”, says Jelle van Laer of Grosso Moda, a company that makes clothing for Esprit, s.Oliver and Selected, among others. The long supply lines increase the risks of production far away: “By producing locally you can respond better to this.”

Grosso Moda sees a growing interest in fashion production in Europe. The company itself largely stopped producing in Asia years ago. “The quality was not constant enough there,” explains Van Laer. The clothing is now mainly made in our own factories in Eastern European countries such as Lithuania, Ukraine and Armenia.

‘Race to the Bottom’

Even before the corona crisis, there were noises in the fashion industry to bring production closer. Because even when clothing stores were still open, there was already a lot of stock left.

“You are betting what the market is going to do,” says Xander Slager. He lived in China for about ten years, where he had the clothes made by his fashion brand Spoom. “The clothing you design will not be in the store until a year later. Another three months after that you will not receive feedback on how it sells.”

As a result, a lot of clothing remains. “Then you have to discount the clothes. The manufacturing side of fashion is total race to the bottom become. “

The Netherlands is too expensive

Due to corona, the disadvantages of producing far away have become greater and more visible. Stocks piled even further due to the forced closure of fashion stores.

“Many parties have started asking themselves: is this the way to keep working?”, Says Han Bekke, chairman of the industry association Modint. “The risk increases with long supply lines. Sustainability is also becoming increasingly important for fashion brands. Then local production comes into play.”

He does not see a massive shift, but a clear trend. “More and more orders are going to countries such as Turkey, Portugal and Italy and Eastern European countries. The Netherlands is usually too expensive.”

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