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Why do world famous fashion brands produce in Bulgaria?
If you're buying a suit, dress or sweatshirt from some of the luxury boutiques in the world's capitals, look at the label.
Don't be surprised if you read Made in Bulgaria there, because Armani, Hugo Boss, Max Mara, Burberry and Zara produce many of their new collections in Bulgaria. The French fashion house Givenchy also trusted Bulgarian manufacturers.
These are just some of the famous names that produce clothes in Bulgaria. Hundreds of smaller companies in the West and East are already doing the same and growing.
Companies from Central and Western Europe have renewed their interest in Bulgaria. In recent years, world-renowned fashion brands have replaced China, Bangladesh and Pakistan with Bulgaria, among other countries in South-Eastern Europe.
Bulgaria becomes attractive destination for outsourcing of clothing
The outsourcing of textile and clothing production nowadays is hindered by a number of negative factors: uneven demand, high raw material prices, high energy prices, and inflation are the four major concerns of the global textile industry for the next six months.
Concerns about geopolitics have also increased significantly in the past months. High transport costs also play a major role.
The combination of these factors make Bulgaria more and more attractive destination for manufacturing outsourcing of clothing. At the same time the export potential of the Bulgarian textile industry is growing.
World trends in fashion sourcing
As the world commerce recovers from the COVID pandemic, apparel sourcing still faces numerous challenges: demand volatility, logistical issues, rising costs, and more. As never before the supply chain has become top priority on executive’s agendas.
It’s becoming more certain that supply-chain disruptions such as the price of shipping and raw materials and strains on capacity are here to stay.
Nearly half of all companies have started a major transformation to achieve speed and flexibility. A fundamental shift is becoming apparent namely the shift toward a sourcing model that is flexible, fast, sustainable, digitally enhanced, and consumer-centric. Findings confirm that dramatic change is underway.
Outsourcing to Bulgaria – a leading destination in Europe
The outsourcing sector in Bulgaria is expected to generate about 10% of the GDP in 2023. Industry reports also forecast a doubling of last year’s turnover to EUR 4.8 billion.
The sector is developing rapidly and in recent years the country has turned into industrial hub in the EU. Well educated designers, engineers and business experts are highly valued along with the multilingual talent pool.