October 15 21
Industry

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PORTUGAL IN 5TH PLACE IN PRODUCING FOR FASHION GIANTS

The fashion giants have reduced their dependence on China as a production supply centre following the Covid-19 pandemic, and Portugal appears to be one of the alternative countries that is gaining from the changes induced by the health crisis. The top 5 of the production markets, right after China (which still remains in first place), is Turkey, Bangladesh, India and Portugal.

The four largest fashion producers in the world (Inditex, H&M, Fast Retailing and Gap) now aggregate, according to data collected by the Spanish newspaper Modaes, an exposure (in number of contracted factories) to the Chinese market of 18.79% (for 11,301 factories ), when a year ago this percentage was more than 26%.

However, despite the reductions registered, China continues to position itself as the largest production hub of those four companies. The second-largest production centre for Inditex, H&M, Fast Retailing and Gap is now Turkey (9.64% of the total), which is positioned as one of the main competitors of European production, also due to its proximity – with the advantage of not being subjected to the inhibiting rules of its European Union neighbours.

Bangladesh is the third-largest supply hub (7.74%), followed by India (6.13%). The first five are closed by Portugal (6.05% of the total). The ten main supply poles in number of factories are completed with Vietnam, Morocco, Cambodia, Indonesia and Italy.

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