Despite skyrocketing prices, a clothing brand increases production by 45% due to a spike in demand

Although clothing has increased by an average of 73% in April compared to 2021 the companies in the sector are Increase Sales.

The sector is growing 20% on an annual basiswith a production bottleneck – due to a lack of workshop owners and textile labor – and supply problems for cotton and other synthetic fabrics, due to obstacles to imports and sharp increases in prices internationally, depending on the sector.

After two difficult years (2018 and 19) and two more with activity slowed by the pandemic (20 and 21), there are companies that are trying to take advantage of this rebound in demand for More products and also recover prices.

This was just announced by the Argentine brand Bowen, born in the 90s as a leather jacket factory an investment of 100 million dollars for increase its production by 45% this year, the same in 2023 and digitize all its operations.

Last year, when they budgeted for 2022, the company didn’t expect the numbers to play that much in their favor.

Now, as production increases, they expect to close the year with $ 2 billion in revenue, double compared to 2021counted Pietro Chiroowner together with Martin Stock of the chain, which initially had Federico Alvarez Castillo (Black Label) as a partner. At first she focused on menswear, but now she offers “genderless, for everyone” clothing.

With 120 employees, Bowen has 11 own stores, 12 franchises, 4 outlets and sells in 65 multi-brand stores. 10% of your revenue already comes from your virtual store. 95% of its production is national, in the hands of third parties, such as Alpargatas, Santista, YKK, Apholos, Procesadora Virasoro, Amesud, Tavex or Ricoltex, among others, the details.

As for the prices, Chirou admits that “the market shrinks a bit. It is a problem that concerns us. There have been increases of 65/70%, a bit higher than the general rate of inflation, especially in April “.

Bowen, together with a group of 70 brands, launched Acción Moda, a sort of Clothing Care Prices, in which each one offers 15 items at discounted prices.

because it sells more

Why do sales grow if prices don’t stop rising? and, as in Bowen’s case, do the garments cost an average of $ 12,000?

Chirou says the industrial part has a significant weight in the price trend “and little can be done”. And he adds: “Clearly, we are not a very massive brand. We are headed towards a niche that we care about and we try not to shrink.”

According to the businessman, the question is explained, by three reasons. The first is the consumption of content during previous years.

Secondly, there is fewer trips abroad (and fewer opportunities for customers to buy clothing outside). “There was a ‘import’ of huge clothes that arrived in suitcases of travelers. This is our consumer segment, “says Chirou.

Finally and, paradoxically, the third consumer impulse is the increase in prices. “Due to inflation, people today are spending the money they have in a hurry. the weights burn“, admits the entrepreneur.

By 2023, in addition to reaching a production of 500,000 garments, it is expected to start with the regionalization of the brand. They are doing the first analyzes to see how to deal with the expansion towards neighboring countries, initially Uruguay.