By  on June 19, 2017
Enrico Lucich's Voila Haviland bag that is produced in Italy.

Rising labor costs in China have led to major shifts in manufacturing over the last five years. Fast-fashion producers responded quickly, moving to more affordable production bases in Asia, chiefly Vietnam, Cambodia, Bangladesh and Indonesia. Now even small European companies — particularly handbag and accessories brands — with plenty of China experience are moving their manufacturing base to Italy.

Labor costs are the key driver, but they're not the only factor.

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