Sibiu-based textile manufacturer Mondostar plans to expand on the foreign markets with one of its own brands - Boulevard, amid the general downward trend witnessed by the outsourcing market. Mondostar also intends to increase its domestic store network, aiming to reach 17 units by the end of 2007.
"This is not the best of times for the domestic apparel industry. The migration of outsourcing to cheaper countries, the constant appreciation of the domestic currency, as well as other factors have seriously hurt the clothing industry," states Mircea Vasiu, Mondostar brand manager.
According to Vasiu, Boulevard will have between 15 and 17 outlets in Romania by the end of 2007.
"However, this is not entirely up to us. The real estate market is different in each region and many projects end up in failure. We are now considering all the real estate projects developed in Romania. The choice of location depends on the potential of the city, but especially on the contractual terms. What is certain is that we are in talks for several locations," stated Mircea Vasiu.
The textile manufacturer based in Sibiu also intends to enter the foreign market soon, with one of its own brands - Boulevard.
"We are already in advanced talks with companies both from Western countries and from Russia. We intend to export the Boulevard brand through distribution networks in the first phase, and, subsequently, through our own stores," added Mircea Vasiu.
The company works under the outsourcing system, but it also launched two of its own brands - Boulevard and Status. Production under outsourcing is exclusively oriented towards foreign markets, especially Germany and Switzerland. On the segment of men's jackets and suits, the Sibiu-based manufacturer works for Strellson (which owns the licence for Tommy Hilfiger in Europe) and Digel, while on the women's trousers segment it works under the Basler and Leineweber brands.
The company officials announced a 10% growth in the company's nine-month turnover, up from the corresponding period of last year.
"This increase was influenced by the growing share our two own brands, Boulevard and Status, hold in the company's turnover. Boulevard opened its seventh store, in Ploiesti this month, while the Status brand, dedicated to small retailers, managed to increase its coverage on the domestic market, compared with last year," Mircea Vasiu told ZF Transilvania.
According to Vasiu, the nine-month turnover derived by the two brands, Boulevard and Status was up 75% from the corresponding period of last year.
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