BAATPE-Bulgaria opportunitites in EU textile industry

PLUSTEX
Third Policy Learning Cycle
Bulgaria:
the best opportunities and advantages in
European Apparel Industry
Speaker :
Dipl. Eng. Anastasiya Simeonova
Bulgarian Association of Apparel and Textile Producers and Exporters
(BAATPE)
BAATPE in brief
•
Bulgarian Association of Apparel and Textile Producers and Exporters
(BAATPE) is a non-profit employers association, founded 10 years ago,
with more then 200 members – export-orientated companies, producers of
clothing and textile, manufacturing of ready-to-wear clothing, ladies, men
and children wear, business and formal wear, knitwear, distributors of
machinery, accessories and services for the industry.
•
BAATPE is a private biggest employers association without government
funding.
•
Activities: represents our members to government, trade unions, suppliers
and customers, national and international level; creates an environment for
communication and cooperation; improve the competitiveness of the
companies; promotes the Bulgarian clothing and textile industry abroad,
helps the members to establish business contacts with foreign partners.
•
The mission: to help ensure health and sustained growth of the Bulgarian
apparel and textile industry and to assist its members in raising their
competitiveness.
Special activities
Realized European Projects:
SEETAL - Specialized Business Project of the European Commission for
business organizations in Bulgaria, Romania, Croatia and Turkey
EU PHARE - Program BG9915.01;
EMS-TEXTILE - Knowledge transfer and training, communication, networking
Current European Projects:
Design4Children- Specialized Business Project for European associations
and companies developing the knowledge and the technologies in children
wear production.
TexWeb - where BAATPE has the role of testemonial organization
thanks to the great performance made during the previous project – SEETAL ,
and the perfect level of cooperation and dialogue that BAATPE has with the
local authorities and national companies and organizations;
ORF is aiming to support T&C industry associations in the Western
Balkans through building capacity, information transfer and regional network.
E-CHILD project is a new Online Multi-language Vocational Training Course
on Children’s Ergonomics for Product Designers.
Foreign Partners of BAATPE
•
•
•
•
•
•
•
•
•
•
•
•
Member of EURATEX
Maintained cooperation with :
Austrian Textiles, Clothing, Shoe, Leather Association
Belgian Clothing Association – Creamoda
European Children’s Fashion Association
France – Nova Child
Germany – Textil +Mode
Greece - Hellenic Fashion Industry Association
Holland - MODINT
Finland - ORNAMO
Italy -SMI –ATI, CNA Federmoda
Turkey -Turkish Clothing Manufacturers Association, ITKIB
Spain – FEDECON ,ASEPRI
Associations of the Balkan region – Albania, Bosnia and Herzegovina,
Macedonia, Serbia, Croatia, Romania.
Bulgaria - the most stable political and
economic environments in Southeastern Europe
•
•
•
•
Political and business stability
– EU and NATO member
– Currency board agreement
– Low budget deficit and
government debt
Low cost of doing business
– 10% corporate tax rate
– Lowest cost of labor within EU
Access to markets
– European Union / EFTA
– Russia
– Turkey / Middle East
Educated and skilled workforce
Bulgaria - taxes and labor costs
Lowest corporate income tax rate in Central /
Eastern Europe
Bulgaria (*)
Romania
Hungary
Most competitive cost of labor in Central /
Eastern Europe
Bulgaria
10%
Romania
431
Serbia
445
16%
19%
Hungary
Slovakia
Average wage,
€ / month Oct 2011
332
19%
713
Slovakia
772
806
Croatia
20%
Poland
Czech Rep
20%
Czech Republic
1,022
Turkey
20%
Croatia
1,044
Slovenia
* 0% tax rate for manufacturing companies in regions with low employment
1,488
Source: Eurostat
Page 6
Apparel and Textile industry in Bulgaria
About 3500 active companies in the industry
72% produce to middle price segment
24 % produce middle to high price segment*
More than 90% are SMEs
113,260 employees
represents 5% of the total number of the employees in Bulgaria
19,3% of the people employed in industry
8.8% higher average wage compared to 2010 **
T & C industry, reached the amount of 1176 million Euro, which
represents 8.9 % from the whole export of the country.
In the export structure of T&C industry traditionally predominant is the
sub-category “Clothing”- 82%, while the sub-category “Textile” - 18%.
>80% of apparel production in Bulgaria is CM/CMT
The internal market realizes about 5.3% of production**
90% of the export is to EU countries
In 51% of the companies the average monthly salary for 2011 is
above 330 Euro
Very price-competitive for CM/CMT production of woven apparel:
trousers, suits, overcoats, shirts, etc.
* Source : Analyze made through the companies - members of BAATPE (2011)
** Source : National Statistic Institute ( 2011 )
Export and Import - 2011
•
Main countries of export
Italy
Greece
UK
•
24%
Germany
13%
23%
France
4%
9%
Spain 3%
Main countries of import
Italy
23%
Greece
Germany 15%
Turkey
France
7%
Austria
16%
13%
3%
Increased import for 2011 compared to 2010 - 10.8%
Increased export for 2011 compared to 2010 - 6.7%
Source: National Statistical Institute
European Brands
traditionally produced in Bulgaria
Max Mara, Vivienne Westwood, Arcadia
Group, Kenzo Kids, Inditex, Induyco, Sonia
Rykiel, Roy Robson, Lise Charmel, Chloe,
Givenchy, Massimo Dutti, El Corte Ingles,
Miranda Textil SA, Tutto Piccolo SA,
Artemur SA, Agatha Ruiz de la Prada ,
Stainbridge, Barbour, Mariella Burani,
Chacok, Tom Tailor, Moncler, Laura,
Biagiotti Tara Jarmon, Cotelac, Iceberg,
Lacoste, Hugo Boss, Escada, Joop, Rosner,
S’Oliver, Garry Weber, Strenesse,
Betty Barclay, Strellson, Pierre Cardin,
Bogner, French Connection, Mason’s, Guess,
Esprit, Duvetica, Liu Jo, and more.
Leading investors have chosen Bulgaria
•
•
•
•
•
•
Bulgaria is Europe's quick response solution
Over the last twenty years a large number of
European textile and clothing groups have
invested in Bulgaria. Among the best known
foreign investors are:
Italian brand Miroglio,(yarns, fabrics -more
than €350m investments),
Calzedonia Group, (underwear), Mason’s,
(jeans), Madamar( underwear),
Ci Esse Trading,(knitwear, underwear) MVL
(leader goods), Manufacture Forte, ( ladies
wear), RBO (ladies wear ) , CTA (sports
wear),
Other important investors are: Austrian brand
Sportalm (winter sportswear),
French Brand: Lise Charmel (lingerie); Maser
Holding (knitted fabrics),
Germany: Rollmann & Partner Fashion
Management (men’s wear),
Feldhues( ladies wear), Coats (treads) and
many others.
Advantages to producing in Bulgaria
•
Flexibility, possibility for production in small or big series
•
•
Skilled staff and new technological equipment
Proximity to markets and suppliers of materials,
transport costs
Reliability and quick deliveries
Quality and responsibility
Experience in working with Western markets
Still competitive labor expenses
•
•
•
•
comparatively low
Weaknesses and problems of the Sector
•
•
•
•
•
•
•
Underestimation of the economic and socialimportance of the sector by the
Bulgarian state
Negative image in terms of labor opportunities and development
(unattractive sector)
Very small local market
Unsatisfactory vocational training and education
Limited local raw material base
Grey economy
Difficult access to financing, incl. from the EU
Indications of Optimism in the Sector
•
•
•
•
•
•
•
•
•
Big increase of apparel orders observed after March 2012
Companies report considerable manufacturing capacity load
Bigger demand for new qualified laborforce
Increase of efficiency and added value in 2012 as compared to 2011 and
2010
BAATPE's Strategic Goals for supporting the sector:
To improve the image of the sector
To contribute for closer co-operation between the educational institutions
and business
To support the Bulgarian companies in focusing on manufacturing of
products with higher added value
To promote Bulgaria as good place for production of high quality garments
To promote the EU financial support opportunities - projects at national,
regional and European level
Thank you for your attention !
BAATPE
Your professional partner in
Bulgaria!
association@bgtextiles.org
www.bgtextiles.org