Textile Home is an Armenian textile manufacturing company established in 2018 in Yerevan. The company plans to invest more than $500,000 to expand its textile production and export 80% of its products to EEU member states. The expansion has already started as the company has already made part of its investments. Moreover, the company plans to create 140 new jobs with an average salary of up to 190,000 drams.

The textile sector in Armenia has experienced strong growth over the last decade, with an average growth of 15%. World-famous brands such as Zara, Moncler, Jennifer, and others are produced in Armenia. The textile sector accounts for 2% of the RA manufacturing industry and 5,2% of exports. While the production growth from 2018 to 2021 comprised 30% amounting to 40,5 billion AMD. Over the past five years, the number of staff in this sector has tripled to 10,000. The main export areas of Armenia’s textile products are Russia, Germany, and Italy.

Armenia’s competitive advantage in the textile sector is threefold: location, labor costs, and electricity costs. Armenia’s geographic location and agreements with both the European Union and the Eurasian Economic Union allow it easily enter markets representing over 1 billion consumers. The country’s electricity price is way below World’s Average, as well as below many leading textile destination countries, including India and Vietnam.  At the same time, being a labor-intensive industry, labor costs usually make up to 30% of the overall costs of the production in the textile sector and Armenia enjoys a competitive advantage when it comes to remuneration for the workers involved in the textile factories which is way below Asia’s Average.