Burberry and Escada Clothes Leave Timisoara Up To 8 Times Cheaper Than The Store Price

05.22.2011 ZF English

Timisoara-based clothing manufacturer Moda-Tim, controlled by businessman Ovidiu Sandor, produces clothing for luxury brands such as Burberry and Escada, whose factory price accounts for just 12 to 20% of the final sale price in exclusive stores on London's Oxford Street or on Paris' Champs Elysees.

However, Sandor says the sale price can be deemed as fair, considering that these retailers are not making huge profits from selling the products because they also have other costs.

"The prices we charge are 5 to 8 times lower than those charged by retailers. Although the difference appears to be enormous, it doesn't mean these clients are making a huge profit. They have stores on Oxford Street or on Champs Elysees, where rents are huge, they have costs with specialized employees, expensive marketing campaigns, a fashion show can cost as much as a billion euros, there are design-related costs and funding costs, considering that revenues are not predictable," says Sandor, chairman of the company's board of directors and one of the shareholders.

Moda-Tim has 500 employees and posted an over 30% revenue growth last year, to EUR 5 million.