The TinaR clothing retailer plans to expand its production to India and Bangladesh, the company’s Commercial Manager, Catalin Alexandrescu, told Business Standard. “We are focusing on Asia because manufacturing costs are lower than in Romania, and our styling offices have a great relationship with local producers in the field, choosing the very best,” Alexandrescu said. Established in 1994, the company’s production factories are located in Romania, Turkey and China, operating in the lohn system, in which the outsourcing firm provides the manufacturer with all the materials needed for production, subsequently re-importing the final goods. As Asian labor forces are cheaper than European ones, many clothing retailers with production lines have moved their factories to China, India and Pakistan. The local textile industry, producing clothing mainly for export and largely operating in the lohn system, was severely impacted by the financial crisis. While the sector was facing a skilled labor shortage until last year, many companies are currently laying off employees or considering relocation. TinaR presently has a 15-store network, located in the cities of Bucharest, Constanta, Iasi, and Brasov. The company plans to open ten new stores in 2009, in cities such as Braila, Oradea, Arad, and Pitesti, and 30 new stores by 2011. The firm’s net sales amounted to €6 million at the end of 2008. Regarding the operations of the new stores, managed either by the company or in the franchise system, TinaR officials are yet to make a decision regarding market tends and contract stipulations. The company is managed by business persons Rares Jianu si Iulia Stoica, who founded the retailer. Last year, they sold a share package to Dutch Middle Europe Opportunity Fund II investment fund, managed by Middle Europe Investment company. (M.G.)
