- Russian apparel and textile industry is booming
- Huge demand for for ready to wear apparel product
83% of textile is imported and only 17% is produced in Russia. Italy, Germany and Belgium are the main countries from West Europe, exporting in Russia.
There are two major factors that make textile products imported to Russia from countries like India, Bangladesh, Vietnam, etc. They are more competitive the because of the lower the prices and the lower import duties imposed by the Russian government.
Russian brands now open for combined production. They purchase textiles including yarn, fabrics, accessories from abroad and then convert/ sew in Russia where the cost of doing so is cheaper.
Export of textile from Belgium to Russia is also growing, There are may companies present, ag. Concordia Textiles, Dome Deco, Arte, FR One, Slots etc.
- Low unit costs make sewing and weaving in Russia attractive and attract foreign brand manufacturers.
- Foreign brands shift production to Russia
- 80% of the textile market is controlled by foreign investors
Russian labels like Sportmaster and Acoola, as well as foreign fashion brands such as Zara, Nike, Finnflare, Uniqlo and Decathlon are planning to launch their own productions in Russia. Some Russian companies are sewing under a foreign brand name and hide their origin.
Adventum Technologies belongs to the Textime (Tekstajm) Group opened a new plant for the production of special clothing in the area of Tula for Rubles 650 million in March 2017. In Roslawl in the Smolensk region, the Roztech company is installing a plant for the manufacture of Dikaja Orchideja underwear for Rubles 100 million. PrimeTec (Prajmtek) has started the production of terry cloth in the area of Ivanovo for Rubles 670 million.
Investors are faced with various challenges in setting up textile productions in Russia: the production plants are mostly outdated, skilled workers are a shortage as well as sales partners. Only if the Russian government’s development program for the garment and textile industry will be suc-successfully implemented, these problems could be overcome.
The Ministry of Industry promotes domestic manufacturers of clothing and textiles with Rubles 145 billion as part of the strategy for the development of the light industry by 2025 and the anticreep plan. By the year 2020 the market share of Russian textiles should rise to 50 percent and 300,000 new jobs should be created. This will make Russia more independent from clothing and textile imports.
The government specifically supports individual textile segments. With regulation no 857 of August 27th 2016, it promotes the production of school uniforms in Russia. Also for research and development in the textile industry funding will be provided: for 2017 Rubles 3 billion are available, 2.2 billion from the anti-crisis plan.
Many Russian fashion brands, who have placed orders to foreign sewing companies, are trying to redirect them to Russia. The factories in the textile clusters of the areas Ivanovo, Leningrad, Tula, Tver, Vladimir, Perm and Vologda are ready for new settlements.
The proximity to polymer producers in the region should ensure the supply of chemical fibers for the manufacturing of work wear and uniforms.
Without an own production of wool, silk, flax and synthetic fibers the Russian textile industry can-not get on its feet. However – to date, not all textiles and basic materials can be obtained from domestic sources. This is why very fine fabrics come e.g. from Europe. Local producers are to re-place imports especially in polyviscose, worsted, polyamide and polyester.
In order to reduce the import dependency of polyester, a new combine for the production of poly-ester fibers is being developed in Witschuga in the Ivanovo region. ThyssenKrupp, Uhde-Inventa Fischer, Oerlikon Neumag and Czech Unistav Construction are building the new Ivanovsky Poly-efirni complex, which is scheduled to commence production in 2020.
Sources: Ru-Stat, Data.trendeconomy, Textination