Russia's largest clothing manufacturer moves production to Bangladesh and Vietnam

Gloria Jeans, a Russian clothing and shoe manufacturer, is planning to shut down some of its production facilities in the country.

Source: Kommersant

Details: The measures will mostly affect infrastructure in Rostov Oblast. A sewing workshop in Salsk has already closed, and staff have been offered positions at other factories.

Gloria Jeans, which currently has 18 factories across Russia, declined to comment on the matter.

The company is reported to be considering moving production to Vietnam, Bangladesh or Uzbekistan, where cotton cultivation provides a steady supply of raw material and there are well-developed industrial facilities. This means no material supply issues and lower costs associated with fluctuating exchange rates.

China, which used to be the primary manufacturing destination for Russian clothing brands, is becoming less popular because, as a fashion industry representative explained, labour costs in China are far higher than in Bangladesh or Uzbekistan.

The shortage of skilled staff in the garment business in Russia is worsening. In addition to manpower constraints, Russian manufacturers have to deal with poor-quality local materials and accessories. As a result, businesses are forced to source products elsewhere. There are also difficulties in purchasing sewing equipment as a result of the international payment issues caused by sanctions.

Background: Staffing levels in Russia fell once again in the third quarter of 2024, to the lowest point since records began.

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