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.
Geographical and economic advantages of Bulgaria
Bulgaria has an important geographical advantage - it is a member of the European Union and at the same time it is a crossroads of important trade routes connecting several continents. It also offers relatively cheap but skilled labor, as well as business-friendly legislation and low taxes.
Bulgaria practically serves all major European customers who are either online sellers or have their own retail chains. More than half of the articles produced in Bulgaria are sold in Italy, France, Germany and Greece.
The Bulgarian sewing sector functions stably even in the conditions of economic crisis and maintains a high technological and quality level. The strength of Bulgarian designers and tailors is visible throughout the entire process - from design to final sale.
The flexibility of Bulgarian tailoring companies, old tailoring traditions and new technological possibilities help the country to attract fashion companies from Italy, France, Germany, Holland, England and other countries.
The geographical location of a country is important as it affects the final price of the item. Currently, the Middle East is facing many problems, and China and the Far East have become an expensive tailoring destination because these countries are located very far from Europe.
Affordable brands
More affordable brands have long made bags, scarves, clothes and shoes in Southeast Europe, but margins are getting thinner as Balkan companies compete for that business with China, Turkey and, increasingly, Africa.
The luxury sector
The luxury sector is expected to grow, outpacing fashion as a whole, encouraging Southeast Europe and Bulgaria to focus on attracting more customers to high-end, quality goods produced in small batches. In the more luxurious segment, fewer units are made, but they are more cost-effective.
For brands, the price advantage of nearby countries with the lowest wages in the European Union is not the only factor. Convenience and proximity are just two of the precise criteria used by brands to select their suppliers; the main requirements are quality, reliability and compliance with the company's codes of conduct.
Easy start for small batches
While leading French and Italian luxury houses have been experimenting with manufacturing outside their home base for years, it's often for more mainstream garments like branded T-shirts. At the same time, the need for small batches of work done quickly to precise standards is growing.
Gone are the days when everything was geared towards a few pre-season catwalks, giving them months to launch their collections. Now they depend on social media influencers whose audiences are spoiled for choice and hungry for something new.
Today, there is an increasing need for different manufacturers, with the capacity for shorter lead times.
Almost 80 percent of the 200 luxury industry executives surveyed see sourcing proximity as a growing trend. This is beneficial for local producers in the region of South-Eastern Europe and for Bulgaria.
Contracts for the assembly of parts or any more complex or large items are increasing, but brands are not always open about what and how much is produced overseas.
“There's no way you can start with the luxury brands. You start with the lower end, after you prove yourself and provide the quality they require, then you start getting higher end clothes," said a Bulgarian manufacturer, specifying a production time of four to six weeks.
Conclusion
In 2024, Bulgaria continues to be a preferred location for clothing production for a number of world-renowned fashion brands.
This trend is not new; as early as 2018, it was noted that factories in Bulgaria and other Balkan countries were producing for luxury brands such as Versace and Armani, helping them adapt to rapidly changing fashion cycles.
Bulgarian manufacturers are valued for the quality of workmanship and their ability to meet the high standards of these prestigious brands. This cooperation contributes to the establishment of Bulgaria as a significant player in the global fashion industry.