Finn Flare opens production in Russia

Finn Flare, a Finnish clothing retailer, will independently make its products in Russia. The brand is going to launch its first production unit in May 2016.

Finn Flare opens production in Russia

Finn Flare, a Finnish clothing retailer, will independently make its products in Russia. The brand is going to launch its first production unit in May 2016. The shop's design capacity is 40 to 60 thousand units of its product range p.a. It will be used to cater the brand's own needs only. A total of RUB 12 million of the company's own funds has been invested in the project.

Currency fluctuations materially affect the cost of production abroad while the availability of own production capacities in Russia eliminates the need to pay customs duties and makes it possible to reduce prime costs for certain lines of the product range without prejudicing their quality. The company has estimated that the launching of its own shop will reduce its prime costs by 20–25%. Moreover, Finn Flare expects that this will allow to satisfy about 30% of the company's needs for dresses, skirts, blouses, jackets and outer garments in the Russian market.