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Major apparel and shoe businesses are shifting production away from Asian manufacturing centers

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asian-garmentsMajor apparel and shoe businesses are shifting production away from Asian manufacturing centers like China and Vietnam and toward locations closer to their US and European outlets. This is due to a significant shipping bottleneck that is pushing up costs and prompting businesses to rethink their global supply networks. Mango, a Spanish clothes store, has sped up the process of developing local manufacturing in Turkey, Morocco, and Portugal. In 2019, the company’s products were mostly supplied from China and Vietnam. Similarly, Steve Madden, a US shoe retailer, has reduced manufacturing in Vietnam and transferred 50 percent of its footwear production from China to Brazil and Mexico. Crocs, the clogs company, is shifting production to Indonesia and Bosnia & Herzegovina.

Bulgaria, Ukraine, Romania, the Czech Republic, Morocco, and Turkey are among the nations that have piqued the interest of apparel and footwear manufacturers. Turkey’s garment exports are at an all-time high, thanks to a surge in European Union orders. Guatemalan apparel exports are up 34.2 percent from 2020 and 8.8 percent from the previous year.

China, on the other hand, continues to supply a significant portion of garments to US and European retailers. Many businesses still rely largely on Vietnam.

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