Presentation on theme: "Opportunities for Textile, Apparel, Footwear and Leather Industry"— Presentation transcript:
1 Opportunities for Textile, Apparel, Footwear and Leather Industry
2 Textile, Apparel, Footwear & Leather Industry Moldovan manufacturers have been working formany years with renowned foreign brands –both fashionable and mass market brands.Companies from Italy, Germany, Netherlands,France, Austria, Belgium, and Great Britainsource and produce here.And with a good reason: Moldova delivers fast, ﬂexible and with highest quality levels !Relocation of production capacity to Moldova• Sourcing and placement of orders• Forming Joint VenturesGoods that can be producedcompetitively in MoldovaTextileApparelFamous brands like Versace, Armani, United Colors of Benetton, Max & Co., NafNaf, Trussardi, Primark, Max Mara, Prada, Nike, Dolce & Gabbana, Calvin Klein let produce their clothes in Moldova ! The United Colors of Benetton one of the biggest Italian fashion houses and clothing labels in the world - places orders in Moldova already for couple of years! Ponzano Veneto is home to the HQ of Benetton.Advantages:Industry - large and diversiﬁed segments, a wide variety of products.Production capacities in all geographic zones of the country that attract local work forceAvailability of Stable, Low Cost and Skilled Labor forceWell-organized and equipped education systemQuick deliveries of the products for EU statesFavorable investment/tax lawLeatherAccessoriesFootwearCarpets
3 Textile, Apparel, Footwear and Leather Industry – SWOT Analysis Strengthsa diversified segments that provide a wide variety of products.production capacities in all geographic zones of the country that attract local work forceavailability of Stable, Low Cost and Skilled Labor force provides competitive advantage to the industry.well-organized and equipped education system that assures skilled labor force for the industry.quick deliveries of the products for EU statesfavorable investment/tax lawhigh potential of growing for work productivity, workloads based on using modern technologies;Opportunities:unlimited and duty free access to the EU market for all productsgeographical advantages (proximity to the EU)unexploited potential to regain the former position of the industry in the Russian and other ex-USSR countries’ marketsinvestment projects in infrastructure, environmental protection and rural & regional development are underwaygrowing awareness in the industry about the need to improve competencies in fields like quality management, research, design, export marketing, and brandingincreased use of CAD/CAM systems to develop designing capabilities and workflow.Weaknesses:most of the Moldovan companies work under the CM or CMT systems, which limit the access to finance, technology and value retention.lack of own products, product sales networks on foreign marketslimited access to investment funds and working capitalsmall financial resources on local marketsThreats:growing requests for eco-labels and other conformity certifications or customer demands, will imply de facto export barriers unless Moldovan companies can rapidly comply to these demands.
5 TAFL industry work force/ Education Moldova has a long tradition in apparel and textile industry since the ex USSR and continued development in the early 90’s.The apparel companies do not need to start from Greenfield, but rather Brownfield using existing skills and tradition.Many local companied started to invest in modern equipment e.g. sewing machines, automats, cutters, spreading machines, plotters, CAD/CAM, etc.Apparel companies are mainly located in Chisinau, Balti, Soroca, and Cahul.Some companies are located in Ungheni (carpet manufacturing, car seat covers, uniforms, footwear, etc), Comrat, Orhei, Basarabeasca, Causeni and other cities.The Education system continues the specialization in apparel and textile industry i.e. :Technical University, faculty of light industry,Pedagogical State University in apparel design,Academy of Arts in apparel design,Light Industry College from ChisinauLight industry College from Balti,Vocational schools from Chisinau, Balti, Soroca, Orhei, Cahul, Ungheni, etc.
6 Light industry education/ Universities Technical University from Chisinau (UTM) ;Faculty of Light Industry; focused on training in Engineering and Garments construction profile.Department of “Technology and engineering of garments”;Department of “Technology of leather and leather articles processing”;“Construction of garments”“Garments design”, etc.State University “Alecu Russo” from BaltiSpecialization of “Engineering and management in automobile construction”, since 01 September 2012 in Cooperation with Draexlmaier Automotive and University of Applied Sciences Landshut, Germany;The students are trained in both theory and practice for the demands of the automotive and supply industry;Many courses are held in German and English.Pedagogical State University of Moldova from ChisinauFaculty of Garments design;Academy of Arts of MoldovaFaculty of Garments design
7 Overview of Cahul light industry Main manufacturers in Cahul are companies with foreign capital in apparel industry.The majority of companies are specialized in knitwear and textile garments.Austrian Joint Venture Tricon SA, cca 680 employees;Italian capital company ICS “Laboratorio Tessile Mol” SRL, cca 400 employees in 2 shifts;ICS “Tricou Fantasy” SRL, cca 80 employees.ICS „Franco Sossi” SRL, located in suburb of Cahul, village Colibaş – 25 kmThe average gross salary of sewers in Cahul as of March 2014, cca 3000 MDL (cca EUR 170).TRICON SA production:
8 Overview of Soroca light industry Main manufacturers in Soroca garments industry are companies with foreign capital.ICS Sotex Grup SRL (US capital, garments, winter mantel), cca 265 employees;ICS Maritansor SRL (Italian capital, footwear), cca 200 employees;ICS Ermogrup SRL (Italian capital, garments), cca 400 employees;There are few shoes producers between 5 to 100 employees;Soroca has good tradition in production of leather shoes and textile garments;The main employer in Soroca was the knitted factory, with over 2000 employees;Average gross salary for sewers in Soroca as of March 2014, are cca 2800 MDL (cca EUR 160).
9 Potential business in apparel sector Long tradition of Moldova in apparel sector;Complex education system, i.e. Technical University, State University, Light industry colleges, Vocational Schools, etc.Dynamic developing of automotive components sector;Rossovivo – car protection covers (transportation). Announced the extension to Moldova with a brownfield plant.Grow in 2-3 years to 1,000+ employees;Car Seats trim covers. Example: Lear Corporation- successful plant in FEZ Ungheni Business.Few Global companies are analyzing Moldova as potential location for relocation in different regions of Moldova;Traditional TAFL industry:Local companies successfully growing with own brands. Some of them are promoting own brand goods for export;Foreign companies especially Italian, Romanian companies developing in Moldova;Exploring the tradition in footwear manufacturing;Targeting CIS market (especially Russia, through Moldova Free trade agreement) and EU market (through the existing Autonomous preferences and upcoming DCFTA agreement), and local market;