Major Fashion Brands Shift Production from China to Morocco and Other Countries

The Spanish fashion retailer, Mango, which manufactured a large part 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. Similarly, the American shoe retailer, Steve Madden, 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 the transfer of its production in China to countries like Indonesia and Bosnia.

To read: Morocco’s Auto Industry Boom Draws Major Manufacturers from Neighboring Countries

"We are seeing huge growth in freight and trucking activity in the former Soviet republics... A huge increase in Hungary and Romania," said Barry Conlon, CEO of Overhaul, a supply chain risk management company. 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 textile, leather and footwear exports amounted to 739.56 million marks (436.65 million dollars) 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 Balkans market," said Muris Pozderac, secretary of the Textile, Clothing, Leather and Footwear Association of Bosnia and Herzegovina.