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Fashion made in Europe, somewhere
By Adam Tanner and Maja Zuvela |
June 21, 2009, Sunday
|
Print Edition
Print Edition
The road to the continent's high fashion boutiques often leads through little-known towns in the Balkans, but you wouldn't know it from reading the labels.
Blerza Kallajnxhi held up a cluster of labels saying "Made in EU" at her factory in Gjirokaster, Albania as she explained how she fills orders from abroad.
"We get an order from Greece and they send the material, the model design and the labels," said Kallajnxhi, who bought the small factory in the mountain stronghold of Gjirokaster with her husband two years ago. Greece, unlike Albania, is in the European Union.
In the eyes of many consumers, a product made in Europe might be of better quality than one made in China, Bangladesh or Thailand, where many fashion groups have outsourced manufacturing. But few know what "made in Europe" really means.
"Nothing says 'Made in Albania'," said Kallajnxhi. "Of course we are proud of our country, but that's what the client wants."
Global fashion brands are doing nothing illegal in labelling clothes this way, provided the manufacture includes inputs from within the 27-country bloc.
Under EU rules that are obscure to most consumers, goods made in more than two countries are said to originate in the place of "their last, substantial, economically justified working or processing."
It's a loophole that helps cut costs and is now more important than ever, in light of a fall in apparel demand since last September.
But EU-based fashion companies often do not advertise the full extent of their supply chains in lesser-known corners of Europe.
"It is not required that we have to add a label 'Made in Bosnia' though the consumer could inform himself regarding the country of origin by reading a registration number sewn into the garment," said Jan Ahlers, vice chairman of the Ahlers AG supervisory board.
German-based Ahlers makes Pierre Cardin suits in Bosnia under licence and is the label's exclusive distributor in Germany, Austria, Switzerland and the former Yugoslavia.
Some consumer groups argue brands should be more transparent about their production, and some luxury groups say such outsourcing is a threat.
"Research shows that consumers' trust in retailers is waning," said Josie Nicholson, founder member of Ethical Fashion Forum which advocates social and environmental sustainability in the industry. "Clear and honest labelling is the best way for retailers to win back consumers' confidence."
Up the street in Gjirokaster, two cement bunkers remain on a hillside.
"It is ironic that we built these bunkers a long time ago, but we are now in NATO and are partners," said Mustafa Devolli outside his factory making military uniforms for Greece. "We hope not in the too-distant-future to be part of the EU."
Wages in the town are around 170 euros (US$235) a month, compared with more than 2,500 euros a month for European Union manfacturing jobs, according to Eurostat information for 2006.
Balkan factories can also rival even cheaper labour in Asia because transport to European markets costs less and is faster.
In accordance with current EU laws, factories across Serbia, Albania, Bosnia and Macedonia sew and assemble clothing sold abroad bearing tags saying it has been made in the EU or a member country such as Greece or Italy.
In Travnik, Bosnia, staff at the Borac factory say it produces items for labels such as Hugo Boss, Pierre Cardin and Burberry. In Bitola, Macedonia, the company Pelister says it has sewn brands including Mango and Zara.
Hugo Boss declined to give information and Burberry spokesman Graham Biggart said the company does not use "Made in the EU" tags, but labels which show the country of production. A Mango spokeswoman said the company had made clothes in the Balkans in the past.
A Marks & Spencer spokeswoman said "we source a small number of our shoes from Macedonia, but we always label clearly the country of origin."
"The fact that our label does not appear on products would not be so frustrating if the job was well paid," said Borac General Manager Mustafa Sefer. "But such deals are the only guarantee for us to get products to market and pay our bills."
Made in the EU Business Loopholes
Outsourced fashion brands can use 'Made in EU' labels
Cheap transport helps Balkans nations competitively rival Asia for Europe
Cost-cutting loopholes may damage brands 'Made in EU'
EU rules are obscure to most consumers
Origin of a garment can be found in a registration number sewn into the item
Blerza Kallajnxhi held up a cluster of labels saying "Made in EU" at her factory in Gjirokaster, Albania as she explained how she fills orders from abroad.
"We get an order from Greece and they send the material, the model design and the labels," said Kallajnxhi, who bought the small factory in the mountain stronghold of Gjirokaster with her husband two years ago. Greece, unlike Albania, is in the European Union.
In the eyes of many consumers, a product made in Europe might be of better quality than one made in China, Bangladesh or Thailand, where many fashion groups have outsourced manufacturing. But few know what "made in Europe" really means.
"Nothing says 'Made in Albania'," said Kallajnxhi. "Of course we are proud of our country, but that's what the client wants."
Global fashion brands are doing nothing illegal in labelling clothes this way, provided the manufacture includes inputs from within the 27-country bloc.
Under EU rules that are obscure to most consumers, goods made in more than two countries are said to originate in the place of "their last, substantial, economically justified working or processing."
It's a loophole that helps cut costs and is now more important than ever, in light of a fall in apparel demand since last September.
But EU-based fashion companies often do not advertise the full extent of their supply chains in lesser-known corners of Europe.
"It is not required that we have to add a label 'Made in Bosnia' though the consumer could inform himself regarding the country of origin by reading a registration number sewn into the garment," said Jan Ahlers, vice chairman of the Ahlers AG supervisory board.
German-based Ahlers makes Pierre Cardin suits in Bosnia under licence and is the label's exclusive distributor in Germany, Austria, Switzerland and the former Yugoslavia.
Some consumer groups argue brands should be more transparent about their production, and some luxury groups say such outsourcing is a threat.
"Research shows that consumers' trust in retailers is waning," said Josie Nicholson, founder member of Ethical Fashion Forum which advocates social and environmental sustainability in the industry. "Clear and honest labelling is the best way for retailers to win back consumers' confidence."
Up the street in Gjirokaster, two cement bunkers remain on a hillside.
"It is ironic that we built these bunkers a long time ago, but we are now in NATO and are partners," said Mustafa Devolli outside his factory making military uniforms for Greece. "We hope not in the too-distant-future to be part of the EU."
Wages in the town are around 170 euros (US$235) a month, compared with more than 2,500 euros a month for European Union manfacturing jobs, according to Eurostat information for 2006.
Balkan factories can also rival even cheaper labour in Asia because transport to European markets costs less and is faster.
In accordance with current EU laws, factories across Serbia, Albania, Bosnia and Macedonia sew and assemble clothing sold abroad bearing tags saying it has been made in the EU or a member country such as Greece or Italy.
In Travnik, Bosnia, staff at the Borac factory say it produces items for labels such as Hugo Boss, Pierre Cardin and Burberry. In Bitola, Macedonia, the company Pelister says it has sewn brands including Mango and Zara.
Hugo Boss declined to give information and Burberry spokesman Graham Biggart said the company does not use "Made in the EU" tags, but labels which show the country of production. A Mango spokeswoman said the company had made clothes in the Balkans in the past.
A Marks & Spencer spokeswoman said "we source a small number of our shoes from Macedonia, but we always label clearly the country of origin."
"The fact that our label does not appear on products would not be so frustrating if the job was well paid," said Borac General Manager Mustafa Sefer. "But such deals are the only guarantee for us to get products to market and pay our bills."
Made in the EU Business Loopholes
Outsourced fashion brands can use 'Made in EU' labels
Cheap transport helps Balkans nations competitively rival Asia for Europe
Cost-cutting loopholes may damage brands 'Made in EU'
EU rules are obscure to most consumers
Origin of a garment can be found in a registration number sewn into the item
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