We are already well on our way to becoming a zero-waste company
FUSH is a European ethical and sustainable custom clothing manufacturer from Serbia, specialising in Full Package Production (FPP) and committed to delivering high-quality garments. With two advanced garment factories in Serbia, the company offers a range of services from custom clothing manufacturing to OEM and private label textile supply, prioritising eco-friendly practices and ethical standards. In an interview with Fibre2Fashion, CEO Andrija Šajkaš discusses clothing manufactuing in Serbia and FUSH’s expansion and vision.
Can you provide an overview of the current state of the clothing manufacturing industry in Serbia, including its strengths and challenges in the European market?
Serbian textile industry together with leather and footwear industries employs 60,000 workers. Most of these companies are opened as foreign investments helped by government-funded subsidy schemes. The challenge this type of industry faces is that once the subsidy period is over, the companies would be motivated to leave the country searching for a similar deal elsewhere. A recent example is the closure of the GEOX factory in Vranje. This type of investment in the industry creates a race-to-the-bottom atmosphere that is not a healthy business environment in my opinion.
Luckily, there are still plenty of domestic companies like FUSH. To my knowledge, there are up to 20 domestic textile companies, some that operate under a similar model to ours, and some that manufacture their own B2C textile products.
The key strength of the Serbian clothing manufacturing industry is the fact that our government has a signed free trade agreement with both the EU and the UK so there is less hassle when European clients work with us compared to working with an overseas manufacturer. Also, the ability to say that a garment is ‘made in Europe’ increases its value immediately.
What are the key competitive advantages that Serbia offers in the field of clothing manufacturing compared to other European countries?
We are at an almost equal distance from most major European cities and that makes us the perfect choice when it comes to distribution. Not every European manufacturer has this advantage. Namely, Portugal, which is further away from most major European cities.
Sadly, the fact that our services are more affordable is an advantage in our existing and potential clients’ eyes. I am not a fan of this, because clients that focus on the price mainly will sooner or later find more value in non-European manufacturing that comes at a lower cost.
What are the current trends and consumer demands shaping the clothing manufacturing industry in Serbia and Europe, and how are manufacturers adapting to these changes?
For the factories with foreign clients, current trends are making us buy heavier and heavier cotton. Our standard offer for cotton used to be 320 GSM, now it is 400 GSM and oftentimes clients ask for heavier fabrics. Since we cannot knit some of these fabrics on our circular knitting machines, we have to source from local fabric suppliers. They too report the same increase in demand for such fabrics.
The Serbian market is lagging behind by a few years and is still in the stage of being enthralled with sublimation printing capabilities. Most of our Serbian clients rely heavily on flashy, colourful designs.
How are sustainability and ethical manufacturing practices being integrated and promoted within the clothing manufacturing industry in Serbia and across Europe?
The best example of sustainability practices being integrated and promoted within the clothing manufacturing industry in Serbia are subsidies for solar panels.
On the ethical front, shining examples are companies that are members of the Association of Companies for Professional Rehabilitation and Employment of Persons with Disabilities (UIIPS). These manufacturers’ workforce comprises of up to 80 per cent of people with disabilities. We are assessing the possibility of joining this association in 2024.
One of the reasons why we have started the certification process for GOTS, GRS, and SMETA is that in 2024, no medium or large German enterprise will be able to source any textile products unless they are made in factories with these certifications. This does not end with Germany, of course. One of our major clients, an Italian company (we have a signed NDA with it, so we cannot disclose which one it is), would only be able to work with manufacturers owning a GRS certificate in 2024.
What role does technological innovation play in the clothing manufacturing sector in Serbia, and how does it compare to broader trends in Europe?
We believe a significant one. Just from our example, since 2018, we have implemented CNC fabric cutters, advanced pattern-making software that ensures over 95 per cent plus of fabric is used when making cutting patterns, and installed solar panels. Also, the fact that the Serbian Chamber of Commerce is organising more and more panel discussions that highlight the importance of technology in our industry, as well as bringing attention to the importance of sustainability certification schemes tells us that our sector is slowly moving into the right direction.
Can you describe FUSH’s evolution from a small basement operation to a sustainable clothing manufacturer with two factories in Serbia?
Just like any evolution, it happened slowly. We spent a good five years in that apartment building basement with a tiny makeshift warehouse, where we could only do designing, cutting fabrics, and sewing samples. Everything else, we outsourced. Every bigger order went to a sewing partner. Every garment that needed to be printed or embroidered, went to a partner company. So as our client base grew, so did the limits of our cooperators.
Also, with that many orders on our hands, we could afford to invest in our first expansion in 2015. Through a real estate agency, we found a building big enough to house a proper warehouse, printing department, bigger cutting room, and bigger sewing room. Plus, we finally had proper offices that did not intersect with manufacturing spaces. All this thanks to great cooperation with two major clients who were growing with us. We made a total of 30 per cent increase in revenue over three years. Revenue that we shared with significantly fewer cooperants.
Since our expansion widened our client base, we were soon ready to expand our capacity yet again, and in 2018 we took out a significant loan to fund the full refurbishment of an old clothing factory in Oraovica (Jablanica district in southeastern Serbia).
What were the key factors that influenced FUSH’s expansion in 2018 and its move to become fully independent in manufacturing?
In 2018, FUSH's expansion and move towards full manufacturing independence were primarily driven by the growth of our main clients and the addition of new ones. Having operated almost entirely independently for three years—outsourcing only dyeing, knitting, and sewing for larger orders—we recognised the need to internalise at least two of these processes to become a significant player in the textile industry.
The expansion, particularly to the Oraovica factory, enabled us to bring most major processes in-house, with dyeing remaining the only outsourced function. This shift not only allowed for better deadline estimates and capacity for more orders but also significantly improved revenue by reducing dependency on external processes.
With complete control over the majority of our operations and an increased workforce from 70 to 170 employees, we saw a substantial rise in profit, with at least a 70 per cent increase in two years, demonstrating the quick and effective payoff of the expansion.
How does FUSH’s vision of investing in new technologies and becoming a zero-waste company shape your current strategies and future plans?
We are already well on our way to achieving that. Our mass production facility in southeastern Serbia (Jablanica district more precisely) is already solar-powered. For the bigger part of the year, we can depend 100 per cent on solar power, since Jablanica district is the sunniest district in Serbia.
We are in the process of becoming GOTS and GRS-certified and we use CNC cutting machines that help us use 95 per cent of the fabrics already. We are carefully watching the development of more sustainable fabrics that could help us transition from plastic-based fabrics for sportswear and team wear items, as well as more sustainable dyeing methods, like dyeing with CO2.
In what ways does FUSH’s commitment to ethical practices, such as paying living wages and focusing on areas with low employment rates, impact the communities you operate in?
We are doing more than what we are required by law. Our least experienced workers earn 20 per cent more than the Serbian national minimum wage. Everyone else earns significantly more. We pay performance bonuses, give financial aid to full-time employees who are buying their first home, and issue full wage payments to employees on sick leave due to heavy illness.
We are also in the process of obtaining a SMETA (Sedex Members Ethical Trade Audit) certificate, that would serve as proof of what we have already been doing for years.
How do you maintain a personal and transparent relationship with your clients, especially as the company continues to grow?
We do so by having our facilities clearly listed in Google Maps, inviting clients to visit us, having a virtual tour of our mass production facility, and finally, by having a small apartment complex right on factory grounds in southeastern Serbia. Both current and potential clients are welcome to visit at any time. We insist on written communication, so nothing gets lost in translation or remains unsaid or forgotten.
Given your company’s focus on high-quality garments at a slightly higher price, how do you position yourself in the competitive market of apparel manufacturing?
We do so by highlighting the fact that the high-quality products clients get from us are made under fair and ecological circumstances, and that it is very easy to double-check that claim. Also, by highlighting that our merchandise travels by road, not air or via freight ships. That’s a lot of CO2 saved just on transport. Also, ‘Made in Europe’ is a unique selling point on its own.
Could you explain the advantages of choosing FUSH as a Full Package Production (FPP) clothing manufacturer?
Our ability to work off clients’ tech packs
Opportunity for our clients to tweak our ready-made design solutions
We have been in the industry since 2005, working on various projects, so almost nothing can surprise us
We are ISO-certified, which is proof that we are organised in a way that highlights quality, ecology, and safety
We knit our own fabrics so, oftentimes, no time is lost on sourcing materials
The fact that we are based in Europe at almost equal distance from any major European city, making our deliveries faster and significantly more ecological
Our readiness to lower our MOQ for clients who are looking for long-term cooperation
Circular knitting, cutting, sewing, printing (dye-sublimation and screen printing), embroidery, labelling, quality control, packing, and delivery are all done in-house.
How does your capability to produce recycled polyester and organic cotton fabrics align with your sustainability goals?
They are both part of a bigger picture. Organic cotton is indeed a sustainable fabric, and we are happy that the majority of our clients who need cotton, demand an organic version. Recycled polyester, as much as it is a definite upgrade on virgin polyester, is by no means sustainable but it is still a necessary evil for us as many clients demand it. Our plan for 2024 is to test out different plant-based fabrics (especially Tencel Active line) to see how they compare to polyester when it comes to moisture-wicking.
What are the future goals for FUSH, and what challenges do you anticipate in achieving them, particularly in the realms of sustainability and ethical manufacturing?
Future goals include becoming SMETA, GOTS and GRS-certified, which we are already in the process of. This will bring us closer to the more ecologically and socially demanding clients that would help us make more sustainable clothing. As far as certification goes, we do not see any challenges there, as it is up to us to adhere to the standards we have applied for.
We want to keep on improving our workers’ living conditions by further increasing wages. One of the reasons we have applied for the certification schemes is so that our increased revenue can reflect in increased wage bills company-wide. This may prove to be a challenge if the economic situation in the world changes for the worse, something we cannot control. I remember how COVID-19 almost made us close up shop in 2020. So, you never know.
The main challenge for us as an ecologically and socially responsible manufacturer is to replace polyester with a plant-based fabric in our sportswear lines. We do not want to talk sustainability and keep feeding the oil industry, but at the moment, we are still forced to by the available technology and the interest of our current clients in the alternatives.
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