The Serbian clothing industry, comprising 384 companies specializing in various apparel and accessory productions, navigated through tumultuous times induced by the COVID-19 pandemic. According to data from the rating agency CompanyWall, the sector’s collective revenue witnessed fluctuations, reflecting both the impact of the crisis and its subsequent recovery.
In 2019, the industry generated a substantial income of 3.12 billion dinars, showcasing its significance within the Serbian economy. However, the onset of the pandemic in 2020 led to a downturn, with total revenues dropping to 3,018,245,000 dinars. Despite this setback, the industry displayed resilience, gradually rebounding over the following years. By 2022, the sector had not only recovered but also demonstrated growth, achieving revenues of 3.44 billion dinars.
The success of individual companies within this landscape serves as a testament to the industry’s adaptability and perseverance. Leading the pack in 2022 is Goran De Velebit doo, based in Belgrade, with an impressive revenue of 328,632,000 dinars. Notably, this company experienced a slight growth trajectory compared to previous years, showcasing its ability to thrive amidst challenges.
Following closely is Ready Group from Niš, securing the second position with total revenues reaching 326.3 million dinars in 2022. Despite facing a temporary setback with revenues dropping to 404.4 million dinars in the previous year, Ready Group’s ability to bounce back underscores its resilience and strategic management.
Ekotex Arilje clinched the third position with revenues amounting to 278,621,000 dinars in 2022. Although this figure represents a decline from the previous year’s earnings of 490,296,000 dinars, Ekotex Arilje’s position within the top ranks highlights its enduring presence and contribution to the industry.
Andrija Radosavljević, the director of Ready Group, sheds light on the challenges faced by the industry during economic downturns. He emphasizes the adverse effects of the crisis on business portfolios, increased operational costs, and labor shortages. Despite these challenges, companies like Ready Group managed to persevere, leveraging decades of experience, robust infrastructure, and a commitment to quality to weather the storm.
Radosavljević underscores the importance of government support in protecting domestic industries from foreign competition, advocating for measures such as tariffs and tax credits to incentivize local production. He also addresses demographic shifts, noting a decline in the birth rate impacting consumer demand for children’s clothing.
In terms of financial performance, Ready Group emerged as a frontrunner, achieving a notable business result of 96,078,000 dinars in 2022. Studio Free Style from Belgrade and Topy doo Miliva from Despotovac secured the second and third positions, respectively, underscoring the diverse landscape of successful enterprises within the Serbian clothing industry.
Despite the challenges posed by the pandemic and shifting market dynamics, the Serbian clothing industry stands resilient, poised for continued growth and innovation in the years ahead.
