Domestic sewing companies in Bulgaria are struggling to survive, as the influx of low-cost Chinese garments floods the market, undercutting local production. The industry, already under pressure, has seen many businesses shut down and workers laid off. While some regions, such as Ruse, are faring slightly better, production declines remain evident across the country.
One company producing garments for European brands reports that labor costs have remained unchanged for two years. Despite this, partners are now pushing for further price reductions, seeking to revert to 2018 pricing levels, says Miglena Hristova, a member of the Board of the Textile and Leather Association.
Large Chinese e-commerce platforms are exacerbating the crisis, offering clothes at prices so low that European brands cannot compete. Unlike Chinese manufacturers, Bulgarian firms must adhere to strict regulations. To work with high-quality materials such as cotton, wool, and silk, companies undergo audits and must obtain certification. The cost of maintaining these certifications is between 5,000 and 7,000 leva per year for each factory, Hristova explains.
Failure to meet these standards results in factory closures. The trend is not limited to Bulgaria, as Romanian manufacturers face similar struggles. The Textile and Leather Association estimates that approximately 40% of sewing companies have shut down in just over a year. The financial impact extends beyond the industry itself, as the decline in businesses reduces tax revenue, further straining the national budget.
Industry representatives are calling for government support. One proposed measure is the revival of social programs to retrain unemployed workers, allowing them to transition to other professions. Another key concern is transportation costs. A discontinued state program, “On the Road”, had provided subsidies for worker transport, but without it, companies must shoulder daily costs of around 22 leva per employee, which is no longer feasible.
Hristova warns that without intervention, the European market will be saturated with low-quality, inexpensive clothing. “Made in Europe” is a valuable label, she argues, but without protective measures, it risks being overshadowed by mass-produced imports. (Novinite)