RESHORING CASE

Bomboogie

Company details
Code: 
Bomboogie
Company name: 
Bomboogie
Group name: 
Space 2000
Company country: 
Italy
Sector: 
C - Manufacturing
Sector detail: 
C14 - Manufacture of wearing apparel
Sub-sectors: 
C14.1 - Manufacture of wearing apparel, except fur apparel
Reshoring details
Reshoring announcement date: 
12/01/2015
Reshored to: 
Italy
Reshored business function: 
Production
Partial or Total reshoring: 
Partial
Reshoring governance mode: 
Third party (external suppliers)
Reasons for reshoring: 
"Made in" effect
Know-how in the home country
Labour costs
Labour costs' gap reduction
Case narrative: 

Bomboogie is the main clothing brand of apparel group Space 2000 founded by Giancarlo Musso in 1985 in Italy. This brand was established in 1991 and the name Bomboogie comes from a B-17 disappeared during the Second World War. Today Bomboogie production includes total look for man, women and outerwear collection for kid. The group decided to make two kinds of products (t-shirts and pants) under the brand of Bomboogie in Italy as it is no longer suitable to produce them in Bangladesh and China. The main reasons of this movement include wages increased in China, know-how in home country (Italy) and 'made-in' effect. With the middle class is getting richer, it will boast a huge potential in market demand. The group, which entered into the Dragon City more than 25 years ago (now with Space and Bomboogie China), started to open stores (in China) with its most well-known brand Bomboogie. However, it will continue to produce some other products (e.g., heads and vests) in the Far East. "Relying on our business model," Musso says, "we are able to offer customers a high quality product with a fair price, and this was our strength even in the most difficult times." Space 2000 delivers all production activities to the third parties. In the headquarters office in Baldissero Canavese, Turin (Italy), there are about 100 employees and some departments including ironing and logistics. 

Sources: 

Repubblica  12 January 2015

Offshoring details
Offshoring location: 
China
Offshored business function: 
Production
Offshoring governance mode: 
Third party (external suppliers)
Offshoring entry mode: 
Non equity
Host country geographical area: 
China