22.Sep .2022 13:00

Sales Are Down, While Price On Raw Materials Are Up - Apparel Brand LAKO BUKIA

Sales Are Down, While Price On Raw Materials Are Up - Apparel Brand LAKO BUKIA
views 301

Prices for raw materials needed for production in the textile industry have doubled. In addition, there is a problem of complicated logistics, which affects the final cost of the product.

As the founder of the Georgian apparel brand "LAKO BUKIA" told Bm.ge, logistics is the biggest problem due to the pandemic and the Russia-Ukraine war. At the same time, Georgia is entirely dependent on imported raw materials.

According to Lako Bukia, in addition to the high shipping rate, the challenge is that no logistics company cooperates with Russia anymore, therefore it is not possible to deliver the products.

"We do not have the production of textiles in Georgia. High logistic cost is a problem, it has been so before the war and the pandemic, but the impact of the war is that logistics companies no longer cooperate with Russia and it is not possible to deliver goods. Therefore all orders are canceled.

As for the raw material prices, they are not increased in Turkey, but in Europe, the cost has doubled compared to the previous period. If until now the price of 1 meter of fabric started from 20 EUR, now it costs at least 30 EUR. Despite this, we have not increased the prices for the products", says Lako Bukia.

The founder and designer of the brand also says that after the Russian invasion of Ukraine, the sales of "LAKO BUKIA" also fell.

"Sales on the international platform Farfetch are two folds down, because Russia has a large share not only in the sales of our brand, but also in the world market. At this stage, Europe accounts for 20% of our total sales, and Asia accounts for the rest," she explains.