The Spanish ABC Daily reported on September 26, 2021 that in order to avoid problems such as shortages of port containers, increased shipping costs, and delays in the delivery of goods produced in China, Spanish companies had begun to Look for suppliers outside China to increase the flexibility of cargo transportation and improve the supply of goods. Spanish businesses also hope to reduce the carbon footprint of their products in order to achieve sustainable development. In addition, they can also develop products with personal characteristics based on consumer needs. The recent increase in global shipping and raw material prices has accelerated Spanish companies’ search for manufacturers outside China, hoping to obtain supply bases close to Spain.
Ignacio Marcos, a partner at McKinsey & Company in Spain, pointed out that the above situation forces companies to transform their value chains and supply chains. In terms of production, in addition to adjusting production lines, companies are also looking for nearby supply bases and obtaining multiple import sources to make the supply chain more flexible. In response to the uncertainty on the supply side, the Spanish textile industry took the first step to respond. Since many brands in the Spanish apparel industry target consumers in Spain and Europe as their main markets, many companies give priority to manufacturing in Portugal, Morocco, and Spain. Eduardoe Zamácola, chairman of the Spanish Textile, Parts and Leather Goods Trade Association (Acotex), said that although there are many good textile and leather goods factories in Southeast Asian countries, more and more companies have chosen to set up factories in neighboring countries.
Tendam, the parent company of Spanish Cortefield apparel and Springfield apparel brands, has recently moved the manufacturing of footwear products to the province of Toledo, Spain. In addition, Ela Corte Inglés, the largest department store in Spain, has also moved its main textile production plant to domestic production in Spain, and increasing local design and production has become one of the group’s important goals. According to the group’s annual report, in 2020, 77% of its suppliers were domestic Spanish companies, with a purchase amount of 7.14 billion euros, accounting for 84% of the group’s total purchase amount. In addition, 70.4% of the suppliers of its Portuguese branch are Portuguese manufacturers, accounting for 86% of its total purchases.
