During and after the pandemic crisis, there was a tendency for large and well-known clothing chains to move their production to Europe, as disruptions in supply chains made it unprofitable to transport products. In this context, Greece was also favoured, as Zara, H&M, and other well-known chains transferred part of their production to the domestic market.

However, this trend has changed. "Now the number of productions of garments from well-known chains in our country is limited. Inflation, rising energy costs, transportation costs, and raw materials became more expensive, so multinational companies changed course," Theofilos Aslanidis, General Manager of the Association of Knitting-Ready Made Garment Enterprises of Greece (SEPE), tells BnB Daily. 

WHICH REGIONS ARE Preferred?

He added that "rising costs have led multinationals to reduce costs in production. So, they have come back to Asia as labour is the biggest expense for a company. In fact, they are now also leaving China and preferring regions like Bangladesh and Vietnam." 

THE GREET MARKET

As far as the Greek market is concerned, Aslanidis stresses that it is sluggish. "Inflation has nibbled away at disposable incomes and is leading to a reduction in household spending. This has resulted in a fall in sales, which I expect over the Christmas period to register an increase slightly above inflation." 

THE PICTURE IN THE FIRST NINE MONTHS

The nine months of the year saw a slight increase in the domestic market, according to figures released by the ACA. According to the release, exports followed an opposite path, continuing their downward trend that began in 2023. Retail sales of clothing in the domestic market recorded a 2.8% increase to €2.58 billion, up from €2.5 billion in the same period in 2023.

EXPORTS DOWN

Clothing exports showed a contrasting trend, continuing their downward trend due to continued reduced demand in international markets. The total export value of the clothing-textile chain in the nine months amounted to €1.23 billion, compared to €1.43 billion in 2023, down 14.4%.

Exports of clothing were down 13.6%, textiles 19.8%, and cotton 9.7%. Imports also fell by 5%. For the clothing-textile chain as a whole, they amounted to €2.45 billion in value in 2024, compared to €2.57 billion in the first nine months of 2023.