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Spanish groups divert from China for sourcing

Spanish fashion companies are facing the impact of the Coronavirus (COVID 19). Companies are losing money because of the outbreak. Retailers are worried that new collections may be delayed by months. Spanish brands that have suppliers and factories in China have started to implement contingency plans aimed to prevent damage to their production. In particular, orders from China are beginning to shift to countries such as Myanmar and Thailand. With this, companies hope to save their new garments for the time being. The spring/summer collection is already in stores. There is no risk of shortage, at least for now, as their fears are centered on the autumn and winter collections, for which raw materials – buttons, zippers or threads – should already be in the process of being manufactured.

Fashion group Tendam has more than 100 suppliers in China alone; around 30 per cent of the garments bought by the group’s brands are produced in Asian countries. Having a production network in more than 30 countries, Tendam has begun to divert manufacturing away from China and may shift from sea to air transport if the accumulated delays are large and lengthy. Inditex has seven stores in the Wuhan region and part of its production in China.