The German design empire Hugo Boss has announced that it will be moving their production much closer to their European base. They are wanting to expand their current capacity in Turkey, therefore they will be able to reduce how much they depend on Southeast Asia which has faced difficulties due to delays, shortages in supplies as well as higher shipping costs.
Chief Executive Daniel Grieder has stated that there is already a huge factory located in Izmir and they will be expanding its capacity. The company will be adding a thousand new employees as well as new tools and machinery which in turn will double their sales. They are hoping to see a revenue of 4.5 billion USD by the year 2025. The company has also stated that they will be investing 500 million Euros in their stores over the next five years and will be increasing their marketing budget by 100 million Euros over the next three years.
Grieder stated "Our future strategy is to produce even more garments close to those markets when they will be sold." Having a factory located so close to Europe has given the company a huge advantage towards its competitors.
Hugo Boss's Turkish factory was first established back in 1999 and is now the largest single production site. They also have factories in Germany, Poland and Italy.
Other European brands such as Ikea, Benetton and Camper have all made similar statements about moving production or increasing capacity in Turkey.
Source: Property Turkey