Solving the Chinese riddle
Katarzyna Dębek: What do these changes stem from and what do you expect to gain?
Michał Wójcik: It stems from a general tendency in the apparel sector to separate companies that deal with design, distribution and brand creation from those specializing in the production and sewing of apparel.
Worldwide experiences show that goodwill and financial results are much better in the case of companies that concentrate on the design and distribution of clothes. It made Vistula's management radically change its strategy. In accordance with the new strategy, Vistula is going to evolve into a distributor and promoter of new brands on the Polish market.
We would like to focus on brand management, design and distribution with the use of our own network of outlets so that retail sales becomes the main income source for the company.
However, we won't give up production entirely. We can still see a chance for profits in this area provided that we remain very competitive when it comes to the services we offer.
After the import quotas for Chinese textiles were lifted, a number of entrepreneurs lobbied for the introduction of new restrictions. What stance did Vistula take on the situation and how did your position evolve?
Suits are one of the most demanding elements of men's clothing. That is why a massive import of cheap and technologically simple Chinese textiles doesn't pose a threat to our current position. However, we do understand what negative consequences stem from this phenomenon for European producers. We think that the action taken by their trade organizations and state institutions aimed at the introduction of special restrictions by the EU Commission is fully understandable. Vistula is trying to limit its imports from China. The production of Vistula and Lantier suits is not going to be transferred to China. The only thing we're taking into consideration when it comes to the Chinese market is producing there our new, cheaper brand aimed at the wholesale market.
Who suffered most from the lifting of import quotas?
Companies specializing in the production of shirts, underwear, knitwear as well as sports and casual apparel. In general, it applies to the simpler, less technologically complicated garments. However, China will continue to evolve also towards more sophisticated products.
Would the Chinese textile problem be solved if export fees were increased in China?
I think the higher fees would not stop the exports from China. Prices could go up as a result but it won't adversely affect the position of the companies who have been importing for many years now and located all their production plants in China. If export fees and duties were to grow dramatically in China (which is practically impossible), the profitability of exports from India, Bangladesh or Turkey would be on the rise, and the production would be transferred accordingly.
Is it still a good business to produce clothes in Poland?
Vistula's good financial standing shows that it still is. But we developed our competencies in top-quality products. This is one of the reasons why we can gain new customers on the European market that represent the world's top brands.
What are the plans of Vistula for the coming months?
The company is preparing to introduce new brands that are still unknown in our country and at the same time will not compete with our current product offer. The idea is for Vistula to be the exclusive distributor of these brands selling them via mono-brand shops. At the beginning of June this year we're going to open a Murphy & Nye shop with casual and city sport clothing. Murphy & Nye is a brand that belongs to an Italian company - Sixty Active. We will still, of course, be investing in the development of the Vistula brand.
Interview by Katarzyna Dębek
Michał Wójcik: It stems from a general tendency in the apparel sector to separate companies that deal with design, distribution and brand creation from those specializing in the production and sewing of apparel.
Worldwide experiences show that goodwill and financial results are much better in the case of companies that concentrate on the design and distribution of clothes. It made Vistula's management radically change its strategy. In accordance with the new strategy, Vistula is going to evolve into a distributor and promoter of new brands on the Polish market.
We would like to focus on brand management, design and distribution with the use of our own network of outlets so that retail sales becomes the main income source for the company.
However, we won't give up production entirely. We can still see a chance for profits in this area provided that we remain very competitive when it comes to the services we offer.
After the import quotas for Chinese textiles were lifted, a number of entrepreneurs lobbied for the introduction of new restrictions. What stance did Vistula take on the situation and how did your position evolve?
Suits are one of the most demanding elements of men's clothing. That is why a massive import of cheap and technologically simple Chinese textiles doesn't pose a threat to our current position. However, we do understand what negative consequences stem from this phenomenon for European producers. We think that the action taken by their trade organizations and state institutions aimed at the introduction of special restrictions by the EU Commission is fully understandable. Vistula is trying to limit its imports from China. The production of Vistula and Lantier suits is not going to be transferred to China. The only thing we're taking into consideration when it comes to the Chinese market is producing there our new, cheaper brand aimed at the wholesale market.
Who suffered most from the lifting of import quotas?
Companies specializing in the production of shirts, underwear, knitwear as well as sports and casual apparel. In general, it applies to the simpler, less technologically complicated garments. However, China will continue to evolve also towards more sophisticated products.
Would the Chinese textile problem be solved if export fees were increased in China?
I think the higher fees would not stop the exports from China. Prices could go up as a result but it won't adversely affect the position of the companies who have been importing for many years now and located all their production plants in China. If export fees and duties were to grow dramatically in China (which is practically impossible), the profitability of exports from India, Bangladesh or Turkey would be on the rise, and the production would be transferred accordingly.
Is it still a good business to produce clothes in Poland?
Vistula's good financial standing shows that it still is. But we developed our competencies in top-quality products. This is one of the reasons why we can gain new customers on the European market that represent the world's top brands.
What are the plans of Vistula for the coming months?
The company is preparing to introduce new brands that are still unknown in our country and at the same time will not compete with our current product offer. The idea is for Vistula to be the exclusive distributor of these brands selling them via mono-brand shops. At the beginning of June this year we're going to open a Murphy & Nye shop with casual and city sport clothing. Murphy & Nye is a brand that belongs to an Italian company - Sixty Active. We will still, of course, be investing in the development of the Vistula brand.
Interview by Katarzyna Dębek
