Gloria Jeans, Russia’s largest clothing manufacturer, is exploring the option of moving some of its production operations overseas due to a growing labour shortage within the country. The brand, which specialises in apparel and footwear, is eyeing Bangladesh as a potential site for its manufacturing shift.
According to reports from the Ukrainian news outlet Ukrainska Pravda, citing the Russian media source Kommersant, this shift will primarily affect production facilities in the Rostov region of Russia. A sewing factory located in Salsk has already been closed, with employees being offered positions at other sites.
Currently, Gloria Jeans operates 18 factories across Russia. When contacted for further information, the company chose not to comment.
The manufacturer is also evaluating other countries for production, including Vietnam and Uzbekistan. Notably, Uzbekistan’s robust domestic cotton production offers a reliable source of raw materials, while all three nations are noted for their quality industrial infrastructure. This ensures that there will be minimal issues regarding the availability of raw materials and production costs.
Traditionally, Russian clothing manufacturers have relied on China for production; however, increasing labour costs there have made countries like Bangladesh and Uzbekistan more appealing alternatives.
The skilled labour shortage in the Russian clothing sector is becoming increasingly severe, with projections for the third quarter of 2024 indicating an even larger gap. In addition to the labor crisis, the quality of domestically produced raw materials and components in Russia is inadequate, prompting manufacturers to look to international sources.
Furthermore, the economic sanctions imposed by Western countries have added complications for Russian businesses, particularly in importing sewing machinery, as financial transactions for these imports have become challenging.
