• About
  • Contact Us
Logistics Asia
previous arrow
next arrow
  • Home
  • News
  • Carriers
    • 3PL
    • Courier and express
    • Last mile delivery
    • Freight forwarding
    • Multimodal transport
  • Supply Chain
    • AI and data solutions
    • Cold chain logistics
    • E-commerce
    • Risk management
    • Sustainability
    • Warehousing
  • Transportation
    • Air transport
    • Land transport
    • Maritime transport
  • Multimedia
    • Videos
    • Podcasts
  • Contact
No Result
View All Result
  • Home
  • News
  • Carriers
    • 3PL
    • Courier and express
    • Last mile delivery
    • Freight forwarding
    • Multimodal transport
  • Supply Chain
    • AI and data solutions
    • Cold chain logistics
    • E-commerce
    • Risk management
    • Sustainability
    • Warehousing
  • Transportation
    • Air transport
    • Land transport
    • Maritime transport
  • Multimedia
    • Videos
    • Podcasts
  • Contact
No Result
View All Result
Logistics Asia
No Result
View All Result
Home Supply Chain

Large Fashion Brands Are Shifting Production Away From Asia

by Team Logistics Asia
November 10, 2021
in Supply Chain, Sustainability
Large Fashion Brands Are Shifting Production Away From Asia
Share on FacebookShare on Twitter

Benetton, a famous Italian fashion company known for its colorful and creative clothing, has shifted more than 10% of its production from China, Vietnam, India, and Bangladesh to European production facilities this year. This is part of a larger plan by Benetton to focus on Europe and make it the sole center for their global operations.

The Italian fashion company is aiming to cut down its production by half in Asia by the end of 2022 and instead focus on markets like Tunisia, Serbia, Croatia, Egypt, and Turkey for manufacturing. Benetton believes this move will provide more control over production and transportation costs which have skyrocketed over the past year.

In an interview with Reuters, CEO Massimo Renon said that even though countries like Vietnam and Bangladesh provides 20% lower production costs, the shorter lead times and less supply chain disruptions in the Mediterranean region would more than make up for the cost. Due to supply chain disruptions, the average lead times from Asia to Europe have increased from four to five months to seven to eight months.

In addition, Hugo Boss is also considering the possibility of shifting production centers from Asia to locations closer to final markets, hence allowing it to react faster to emerging markets trends. This move will provide Hugo Boss more flexibility in coping with supply chain bottlenecks.

The recent Covid-19 outbreaks in Asia have stung production for brands that mainly rely on production facilities in the region. Nike had to cut down its sales projection in September due to factory closures in Vietnam.

Inditex, which owns the fashion brand Zara, is now manufacturing 53% of its products in Turkey, Spain, Morocco, and Portugal, according to its 2020 annual report.

In Mexico and Latin America, logistics operators have reported growing interest from global brands in shifting their production facilities closer to the North American market as labor costs in Mexico and South America are comparable to Southeast Asia.

Tags: AsiaBenettonEuropeHugo BossLogisticsManufacturersNikeSupply ChainZara

Related Posts

China to Build Green Air Logistics Network by 2025

China’s Logistics Chain Back to Normal

by Dafizeck Daud
May 27, 2022

China's logistics industry has resumed gradually as the country tackles shipping bottlenecks amid the latest COVID-19 outbreak, the Ministry of...

Does RCEP Herald a Golden Age in APAC?

Does RCEP Herald a Golden Age in APAC?

by Dafizeck Daud
May 27, 2022

By Audrey Cheong People have been conducting cross-border and trans-continental trade for millennia. From the ancient Egyptians, to the Greeks...

Growing Intra-Africa Trade through Digital Transformation of Customs and Borders

Growing Intra-Africa Trade through Digital Transformation of Customs and Borders

by Dafizeck Daud
May 26, 2022

The digital transformation of customs and borders in Africa could improve efficiencies in processes, such as administration at customs and...

Bridgenet and MKI To Assist Digital Transformation of Businesses in Asia Pacific

Bridgenet and MKI To Assist Digital Transformation of Businesses in Asia Pacific

by Dafizeck Daud
May 26, 2022

Bridgenet Solutions Sdn Bhd (Bridgenet), a subsidiary of Celcom Axiata Bhd, is partnering with MKI IT Solutions (Asia Pacific) Pte....

FedEx and Aurora Expand Autonomous Trucking Pilot Lane Project

FedEx and Aurora Expand Autonomous Trucking Pilot Lane Project

by Dafizeck Daud
May 25, 2022

FedEx and Pittsburgh-based Aurora Innovation Inc., a provider of self-driving technology, announced that they are expanding the pilot collaboration program,...

Load More
previous arrow
next arrow
  • Trending
  • Comments
  • Latest
Infinity Logistics Acquires Glencore’s Unit, Access World for US$177 million

Infinity Logistics Acquires Glencore’s Unit, Access World for US$177 million

February 7, 2022
The Insane Logistics of Formula 1

The Insane Logistics of Formula 1

April 15, 2021
How Container Ports Work: Logistics of Intermodal Transport

How Container Ports Work: Logistics of Intermodal Transport

April 22, 2021
How Drones Could Change The Shipping Industry

How Drones Could Change The Shipping Industry

April 20, 2021
UNICEF Urges Supply Chain and Logistics Industry to Roll Out COVID-19 Vaccines Globally

UNICEF Urges Supply Chain and Logistics Industry to Roll Out COVID-19 Vaccines Globally

From Land to Sea – A Rising Trend Among SE Asia E-Commerce Freight

From Land to Sea – A Rising Trend Among SE Asia E-Commerce Freight

An Integrated Logistics Platform to Penetrate SEA Market

An Integrated Logistics Platform to Penetrate SEA Market

Are We Ready to Ship Billions of COVID Vaccines Worldwide?

Are We Ready to Ship Billions of COVID Vaccines Worldwide?

China to Build Green Air Logistics Network by 2025

China’s Logistics Chain Back to Normal

May 27, 2022
Does RCEP Herald a Golden Age in APAC?

Does RCEP Herald a Golden Age in APAC?

May 27, 2022
Growing Intra-Africa Trade through Digital Transformation of Customs and Borders

Growing Intra-Africa Trade through Digital Transformation of Customs and Borders

May 26, 2022
Bridgenet and MKI To Assist Digital Transformation of Businesses in Asia Pacific

Bridgenet and MKI To Assist Digital Transformation of Businesses in Asia Pacific

May 26, 2022
Logistics Asia

Logistics Asia brings you the latest news, analysis and insights for the logistics sector. We cover logistics-related news in Asia and beyond.

Categories

  • 3PL
  • AI and data solutions
  • Air transport
  • Carriers
  • Cold chain logistics
  • Courier and express
  • E-commerce
  • Editor's Choice
  • Feature
  • Freight forwarding
  • Internet of Things
  • Land transport
  • Last mile delivery
  • Maritime transport
  • Multimodal transport
  • News
  • Opinion
  • Ports
  • Press Release
  • Rail Transport
  • Risk management
  • Supply Chain
  • Sustainability
  • Transportation
  • Uncategorized
  • Videos
  • Warehousing

Newsletter

Subscribe to our mailing list to receives daily updates direct to your inbox!

  • About
  • Contact Us

© 2022 Business Media International. All Rights Reserved.

No Result
View All Result
  • Home
  • News
  • Carriers
    • 3PL
    • Courier and express
    • Last mile delivery
    • Freight forwarding
    • Multimodal transport
  • Supply Chain
    • AI and data solutions
    • Cold chain logistics
    • E-commerce
    • Risk management
    • Sustainability
    • Warehousing
  • Transportation
    • Air transport
    • Land transport
    • Maritime transport
  • Multimedia
    • Videos
    • Podcasts
  • Contact

© 2022 Business Media International. All Rights Reserved.