Russia Wants To Enter A Big Garment Manufacturing Country

In March this year, the world's second richest, Inditex Costume Empire Ortega (Amancio Ortega) received an unexpected invitation. The Russian government hopes that he will move the factory to Russia, where the cost of production has been lower than that of China because of the weakness of rouble.

UPI reported that the Russian Ministry of industry and trade announced that they were communicating with Inditex. Other manufacturers such as H&M, IKEA and Decathlon will follow this trend.

At present, Inditex's clothing factories are mainly distributed in Vietnam, Indonesia, China, Turkey and Eastern Europe. In terms of retail stores, this is the third largest market after Spain and China.

In November 2015, Russian military aircraft was shot down by Turkey near the Syria border, and foreign players' interest in Russian textile industry increased further after tensions between the two countries.

Since then, Russia has substantially reduced imports of Turkey. Although textiles are not yet covered by the ban, it was reported last December that the Russian government may also include Turkey clothing in the list of prohibited entries.

In addition, at the end of last year, Turkey T24 television also reported that brands such as Zara, Mango and H&M asked Turkey manufacturers to remove the label "Turkey made" so that clothing would not be resisted by Russian consumers. However, to fundamentally solve the problem, of course, the relocation of factories to Russia can be once and for all.

At present, Russia's local garment factories mainly face their retailers and consumers, so how competitive they are compared with Chinese and Vietnamese rivals remains to be further observed. The output of the latter two is 100 times greater than that of them.

Now, those big international brands use the global outsourcing system, such as signing a contract with a garment factory in a country, and selling the finished products to the whole world. This system requires the most stringent standardized production procedures, and the factory must also invest large sums of money. Russia It is a challenge that manufacturers have never met before.

Lyudmila Ivanova, head of the Fashion Industry Council of the Russian textile association, firmly believes that Zara or H&M will be produced in Russia and the quality of products will not be reduced. Ivanova,

Russian textile industry appeals to the government to give greater support to ensure that they can integrate better with brands and consumers. They also hope that the government will improve the investment environment and make foreign brands more comfortable to enter. They stressed that the ruble's depreciation could not continue forever, and Russia must take other measures. competitive edge Come on.

Now, there are some successful examples of the integration of international brands with Russian factories. IKEA, a Swedish company, has been invited by the Russian government and has been working with Russian manufacturers for a long time. IKEA's stock in Russia began in 1991, when Russia did not have IKEA stores.

"We have learned to produce high quality garments. Many Russian brands are very popular among our consumers. Some things, if not told that you are made in Russia, you still think it is made in Europe.

Russia's major clothing brands, the current production plants are mainly in Asian countries.

"At present, our orders are mainly made by factories in China and Bangladesh, but we are very interested in Russian manufacturers." Oosterloo Broad Ostrobrod, vice president of Sela, a Russian clothing chain, said they were considering moving the production back to the Russian mainland. (Eduard)

"We met some interesting Russian manufacturers in the textile industry forum of the Ministry of industry and trade not long ago, and we really want to cooperate with them."

Since the beginning of the economic crisis, many Russian clothing brands have moved production from Asia to invest in factories. At the same time, foreign clothing brands are beginning to enter more and more. In February 2015, the Russian Business Daily reported that Decathlon, the French sportswear brand, had signed a memorandum with Novosibirsk S-Tep. In the short term, these products will only supply Russian stores in Decathlon, but in the future, they will also enter the global sales network.