Russia’s largest clothing manufacturer

Shift production to Bangladesh and Vietnam

Gloria Jeans, a Russian clothing and footwear manufacturer, plans to close some of its production facilities in Russia.

These measures will mainly affect the infrastructure of Rostov Oblast. A sewing workshop in Sarsk has been closed and employees have been hired by other factories.

Gloria Jeans, which currently has 18 plants in Russia, declined to comment on the matter.

The company is reportedly considering moving production to Vietnam, Bangladesh or Uzbekistan, where cotton cultivation provides a steady supply of raw materials and industrial facilities are well established. This means there are no material supply issues, and the costs associated with exchange rate fluctuations are lower.

The shortage of skilled workers in Russia’s garment industry is worsening.

In addition to manpower constraints, Russian manufacturers also have to contend with local poor quality materials and accessories. As a result, companies are forced to source their products elsewhere. The acquisition of sewing equipment has also faced difficulties due to international payment problems caused by sanctions.

In the third quarter of 2024, staffing levels in Russia fell again, to their lowest point on record.