RESHORING CASE

Mauboussin

Company details
Code: 
Mauboussin
Company name: 
Mauboussin
Group name: 
Mauboussin
Company country: 
France
Number of employees: 
350
Sector: 
C - Manufacturing
Sector detail: 
C32 - Other manufacturing
Sub-sectors: 
C32.1.2 - Manufacture of jewellery and related articles
Reshoring details
Reshoring announcement date: 
07/06/2016
Starting implementation date: 
January, 2013
End of Implementation : 
December, 2016
Reshored to: 
France
Location of affected unit(s): 
Paris, Lyon, Alsace, Italy
Location code: 
FR101, FR7, FR42
Reshored business function: 
Production
Partial or Total reshoring: 
Partial
Reshoring governance mode: 
Third party (external suppliers)
Reasons for reshoring: 
"Made in" effect
Corporate social responsibility image
Delivery time
Logistics costs
Loyalty to the home country
Poor quality of offshored production
Proximity to customers
Unattractiveness of the offshore market
Case narrative: 

In 2013, as little as 20% of production for the luxury French jewelry producer Mauboussin was carried out in European countries. The majority was outsourced to producers in China, India and Thailand. However, in 2016, following several rounds of backshoring and nearshoring (to Italy), almost 85% of production for the company is done in Europe, and more than 40% in France. Moreover, the share of production in France is expected to increase to 50% by the end of the year.

Alain Nemarq, the company's chairman, stated that producing company goods in Europe is approximately 10% more expensive than in Asia. However, higher costs are compensated through benefits to product quality and company image. New labs have been established in Paris, Lyon, Alsace, as well as in Italy. Although the quality of Mauboussin's products has not increased as much as expected, time lost in logistics has been greatly reduced. Moreover, the company's customers appreciate the backshoring as it supports the national economy and job creation, as well as for pride in the 'made in France' effect.

Mauboussin's plan is to fully backshore by the beginning of 2017.

Sources: 

Le Point, 07/06/2016

L'Usine Nouvelle, 08/10/2014

Offshoring details
Offshoring location: 
India
Offshoring governance mode: 
Third party (external suppliers)
Host country geographical area: 
South East Asia rather than China