Sourcing from production hubs is an activity that involves researching, evaluating, and collaborating with strategic suppliers for one’s business. Essentially, it is a fundamental process aimed at finding suppliers who can deliver maximum value for one’s business and brand.
In this context, it’s clear that a significant volume of products sold in Europe and worldwide comes from China. The Asian country is responsible for producing around 90% of the world’s goods. In other words, a predominance that has made China a prime sourcing location, also thanks to its lower costs.
However, things seem to have changed in recent years.
Sourcing from the East is now a bit less advantageous than it used to be, and other factors (regulations, sustainability, quality standards, and so on) have led individuals and companies to prefer sourcing from European countries.
Why prefer sourcing from European production hubs over Asia?
On this extensive journey to discover the best European production hubs to tap into for one’s business, let’s start by considering the possibility of choosing European product sourcing over Asia.
To evaluate this more carefully, it’s essential to remember that products from China are generally bought in large quantities. The idea is to organize fewer, larger shipments to contain the relative fees.
Another reason many Europeans buy Chinese products for their business is tied to pricing. Production in China and other Asian countries tends to prioritize price over quality. On the other hand, European production is generally better suited for brands aiming to launch a line of higher-quality products.
Moreover, focusing on European sourcing also brings greater convenience and efficiency. Shipping costs are generally lower, and there are fewer intermediaries in the supply chain.
Why sourcing from European production hubs is advantageous
Given the above, here is a summary table illustrating why sourcing from European production hubs could be more advantageous.
| Advantages | Description |
| Lower Minimum Order Quantities | European manufacturers generally require lower minimum order quantities than Asia. This allows companies to order smaller batches, reducing inventory costs and financial risks, making them ideal partners for startups and SMEs. |
| Higher Quality | European manufacturers are usually capable of handling large orders while maintaining high-quality standards, thanks to stricter quality control processes and more advanced production capabilities. |
| Certifications | European production certifications build better consumer trust, ensuring products meet the standards set within the continent. |
| Enhanced Quality Controls | European manufacturers adhere to stricter quality controls and are also subject to more checks on working conditions and business practices. |
| Payment Methods | European manufacturers offer secure payment methods and higher-quality customer service, with reliable transactions and communication throughout the sourcing process. |
How to Identify the Best European Production Hubs
While, as we’ve seen, working with European manufacturers offers many benefits, it’s still essential to take a few precautions when identifying the best partner for your business. Here’s a summary of some recommendations you should follow.
| Be Clear | When interacting with European manufacturers, be very clear and specific about the desired product. The more information provided in terms of materials, design, and functionality, the better manufacturers can understand your needs. |
| Use Examples | Even if the information provided is clear, offering a product example is helpful. Refer to alternative projects or products to help the manufacturer better understand your requirements. |
| Communicate Values | Besides physical characteristics, it’s essential to specify the values and benefits you want the product to convey, including environmental impact, function, purpose, or lifestyle it represents. |
| Describe the Sales Strategy | Share your sales strategy with the manufacturer. A clear, transparent strategy can encourage the manufacturer to form stronger, long-term relationships. |
| Set Timelines | Communicate your timing requirements to the supplier, which will help establish reasonable delivery expectations. |
Production Models Available in Europe
Although various production models are available within European hubs, the main ones fall into three major categories: private label, white label, and contract manufacturing.
Let’s briefly summarize their characteristics.
Private Label
Starting with private label production, this model involves a production agreement instructing the manufacturer to create a unique product to be sold exclusively under the brand’s name.
The brand has the opportunity to customize the product’s formula, design, and packaging, aligning it with its brand identity and customer expectations. This model is advantageous for brands aiming to establish a more distinctive market position, with a product exclusively associated with their brand.
White Label
With white label products, the manufacturer creates a generic product that multiple brands can sell under their own branding.
Unlike private label products, as discussed above, the product formula is not customizable in the same way.
Contract Manufacturing
In contract manufacturing, a brand develops its own product formula but outsources the actual production process to another manufacturer.
This model is advantageous for businesses that have a specific product idea or formula they believe will succeed but lack the necessary production facilities or resources.
Top European Production Hubs for Sourcing
As we’ll see in the following lines, there are numerous European production hubs that can effectively meet various sourcing needs.
Let’s start with the most frequently used hub by many companies and then explore other reference hubs for some European industrial sectors.
Eastern Europe
While China has long dominated the sourcing market, to the point that “Made in China” has become a common label for many everyday products, the last decade has seen a shift in favor of:
- Slovakia
- Czech Republic
- Bulgaria
- Romania
- Poland
- Hungary
- Baltic States
The advantages of sourcing in Eastern Europe compared to China are numerous:
| Advantage | Description |
| English Language | Sourcing products in Europe can be simpler as many producers in Eastern European countries speak English well. This makes it easier for manufacturers and suppliers to interact more efficiently and clearly with their counterparts. |
| Costs | Eastern European countries generally have lower labor costs than their Western counterparts, resulting in lower product prices while maintaining good competitive quality. |
| Location | The strategic location of Eastern European countries makes them significantly closer than Chinese suppliers and manufacturers, reducing travel costs and time considerably. |
| Technology | The technology used by Eastern European manufacturers is increasingly advanced, allowing them to meet demands for specific, cutting-edge products and sectors. |
Italy
Italy is considered one of the best production hubs for luxury and design product sourcing. Fashion, furniture, and food are generally among the most popular categories for quality sourcing.
Germany
Germany is renowned worldwide for its high-value engineering and precision manufacturing. This is why German production hubs specializing in machinery, electronics, and automotive components are often preferred, benefiting white-label strategies. Germany also contributes significantly to the skincare and personal beauty product sectors.
Spain
Spain has a strong tradition as a European production hub in the textile sector, making it a preferred country for private label sourcing in fashion and textiles. Clothing, accessories, leather goods, footwear, and quality home products are typically the most involved sectors.
Portugal
Like Spain, Portugal has a strong textile production tradition, supported by a skilled workforce. It is a qualified production hub for private and white-label products in clothing, footwear, and home textiles.
Turkey
Turkey has a solid base in the textile, clothing, and home furnishing industries, hosting numerous manufacturers known for their competitive prices and relatively fast delivery. Over the years, Turkey has become a compelling choice for sourcing private label products in these sectors.
Where to Find Competitive Manufacturers in Eastern Europe
As previously discussed, Eastern Europe is undoubtedly a leading European production hub. But how can one find suitable manufacturers and suppliers in the region?
If looking for a Chinese supplier, Alibaba or similar platforms might come to mind. But what about the Eastern European market? Are there platforms like Alibaba with Made-in-Europe productions?
The answer is yes. Below are some of the best European alternatives to Alibaba you should consider.
Europages
Europages is a European B2B directory containing data on 2.6 million companies, primarily within Europe. The platform allows users to filter and contact companies across Europe by category, country, and region.
Wre Liefert Was
WLW is the leading wholesale platform for Germany, Austria, and Switzerland. Across its national domains, the service reaches 1.4 million buyers and over 600 suppliers each month. The site partners with Europages.
eSources
eSources is one of the largest wholesale databases in the UK, featuring numerous suppliers, dropshippers, wholesalers, and trade leads. It serves as an excellent resource for sourcing quality products for business needs.
Ankorstore
Ankorstore is a French B2B marketplace connecting independent brands with small and medium-sized retailers and concept stores across Europe. With a presence in 33 different countries, it boasts over 250,000 retailers and more than 20,000 registered brands, making it an ideal platform for sourcing from independent brands.
Fashion TIY
Fashion TIY is one of the largest wholesale platforms for consumer goods in Europe, primarily offering wholesale solutions for clothing, accessories, fashion, beauty products, and home goods.
World Trade
World Trade is one of the world’s leading B2B platforms and a significant one for Europe. With over 10 years of experience in digital branding and web development, it has over 500,000 registered users, including suppliers and businesses from various countries.
Orderchamp
Orderchamp is a European wholesale e-commerce platform with similar functionalities to Ankorstore. It connects retailers and independent brands, facilitating trade between interested parties. The digital platform currently includes more than 100,000 retailers across Europe and 6,000 brands.
Wonnda
Wonnda is a European platform for custom product development and private labeling. B2B brands and buyers can find Made in Europe products from a network of selected manufacturers. Alternatively, users can submit their product requests to initiate a bidding process, allowing suppliers to compete to meet their needs.
Eurowholesale
Eurowholesale primarily serves dropshippers, featuring thousands of products in a European warehouse, predominantly for wholesale resale. It is a good starting point for those interested in dropshipping rather than launching their own private label brand.
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