Conference "Confidential Sourcing"

Every February, Première Vision Manufacturing provides an exclusive assessment of sourcing trends. This 11 February, the “Confidential Sourcing” conference outlined the new cartography. here are some of the conclusions:

The cartography of global textiles is shifting. The rise in the cost of raw materials and price increases in China have disrupted the habits of the major textiles buyers, leading them to look for new sourcing alternatives. We are witnessing a reorganization of the global textile market. Eastern Europe and the Balkans are rapidly developing high production capacities.  New textiles regions are emerging.

Sourcing confidential: yes, let’s do it!

The textile-clothing sector plays an essential role in the national economy and occupies an important place in the country’s total exports. The European, American and French clothing imports have all increased during the year 2014. The main suppliers of these countries have all seen their exports grow during the period studied.

 Woven fabric in Morocco, cotton and silk in Greece or even knitting in Macedonia… Our neighbors all have their own specialization allowing us to produce all types of products.

 Furthermore, the work force of these countries is trained in vocational schools. It has over 50 years of know-how and good knowledge of European and American markets with an excellent fashion culture. Training institutes ensure the continued development of skills and provides businesses in the sector with a large supply of well qualified human resources, particularly in cutting edge areas like creativity, production management, logistics, etc.

 Sourcing confidential 2

Why source in proximity countries?

It represents a good alternative to China and Asian countries in term of sophisticated and “fashion” products. The lead time is very competitive compared to China. For example, thanks to their local producers of raw materials, especially for denim and knitted, Morocco is very reactive. With a lead time to Europe of less than 2 weeks under sub-contract and with a cycle of between 2 and 4 weeks lead time to Europe for other production modes, Morocco save 50% of time compare to the normal cycle.

Regarding specialization of closer countries, sourcing confidential seems to be a good option for products like jeans, suits, sleeved pieces, shirts, T-shirts, home textiles, lingerie, ski ensembles, work clothes, “light wear”, layette and children’s clothes…


Some advantages to clarify…

We observe a strong domination of “contract” suppliers who do not manufacture “finished products”. Over the large amount of products which is possible to produce, the production of raw materials and accessories is really low.

In closer countries, salaries in textile-clothing industry have increase but to a lesser degree compared to Asia.

If Germany is the first country client for Macedonian manufacturers and Italy the first client for woven clothes in Moldova, French clients are rare and do not seems interested by these countries.