- Title: Southeast Europe targets luxury brands' fast fashion catchup
- Date: 7th June 2018
- Summary: ROUSSE, BULGARIA (FILE - JANUARY 22, 2018) (REUTERS) DRESSMAKERS SEWING GARMENTS, WORKER PUTTING GARMENTS ON TROLLEY VARIOUS OF DRESSMAKER SITTING AT SEWING MACHINE SEAM OF GARMENT BEING SEWN WITH MACHINE AND BEING VARIOUS OF WORKER IRONING GARMENTS (SOUNDBITE) (Bulgarian) DRESSMAKING FACTORY OWNER, MIGLENA HRISTOVA, SAYING: "In the last several years we are witnessing an
- Embargoed: 21st June 2018 09:39
- Keywords: luxury brands sewing Bulgaria
- Location: ROUSSE, LOVETCH, BULGARIA
- City: ROUSSE, LOVETCH, BULGARIA
- Country: Bulgaria
- Reuters ID: LVA0018JB4YT5
- Aspect Ratio: 16:9
- Story Text: Miglena Hristova's factory near the Danube is among a growing number in southeastern Europe positioning themselves to help top brands adjust to faster fashion cycles.
Bulgaria, Romania and other countries in the Balkan region have established a foothold in the luxury market and fashion houses from Paris and Milan are quietly building a bigger presence as they feed demand for a quicker turnover of styles.
More affordable labels have long produced bags, scarves, clothes and shoes in southeastern Europe, but margins are becoming slimmer as Balkan companies jostle for that business with China, Turkey and, increasingly, Africa.
The luxury sector is expected to grow up to 5 percent this year, outpacing fashion as a whole, encouraging southeastern Europe to focus its efforts on attracting more upmarket clients alongside competitors such as Portugal.
Hristova said that although they make fewer pieces in the more luxury segment, they are more profitable, while at her factory in Rousse some 40 workers stitch dresses, women's tops and trench coats.
She said orders and inquiries from top brands were increasing and she has invested in machines to do the specialised stitches, buttons and ironing they demand alongside hand sewing, which is sometimes done through contractors.
She is also installing a fitness room, new bathrooms and renovating the canteen to hold on to workers tempted by higher paying jobs elsewhere as Bulgaria's economy grows.
For the brands, the cost advantage of nearby countries with the lowest wages in the European Union is not the only factor in an era where word of lapses in quality or poor working conditions spreads fast.
While top French and Italian luxury houses have experimented with manufacturing outside their home base for years now, it is often for more basic garments such as branded T-shirts.
But the need for small batches of work, done fast, to exacting standards, is growing.
Gone are the days when everything was geared towards a few pre-seasonal catwalk shows giving them months to roll out their collections. Now they depend on social media influencers whose audience is spoilt for choice and hungry for something new.
"You need different producers, more capacities with shorter lead times," said Achim Berg, head of global apparel, fashion and luxury practice for management consultants McKinsey.
Almost 80 percent of 200 luxury industry executives it surveyed saw proximity sourcing as a growing trend. It said luxury fashion is expected to grow four to five percent this year, compared with 3.5-4.5 percent rise for fashion as a whole. - Copyright Holder: FILE REUTERS (CAN SELL)
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