“The apparel industry sector in Bulgaria has one
of the highest shares in employment – 22.4 %. Presently, Bulgaria is
Europe’s most resilient market for the production of apparel. Bulgaria’s
export of textiles and clothing has increased compared to previous
years. 86% of all exports of these products are directed to the EU
countries, which Bulgaria joined in January 2007″.The Apparel
industry creates high value added share, accounting for a large share in
total manufacturing value: 4 per cent, against 1.2 for EU. This is due
to the positioning of the Bulgarian production in a specific production
niche: toll processing..But what is toll processing and how it works? ..In
the crisis the production of apparel moves to countries with cheaper
labor such as Bulgaria. The toll manufacturing’s main advantages are
associated primarily with the possibility of better and more easily
provision of the necessary raw materials and seamless implementation of
the production. Bulgaria is closer to the clients, the used materials
are with better quality and the costs of transportation are low,
compared to countries like China ..The main sources of raw
materials are Turkey and the EU as the distribution is evenly – 25%
Proximity to the Turkish market, its abundant supply and the toll
processing are the main reason for these results. Some companies (33.4%)
are trying to combine the raw materials for use, using not only
imported but also Bulgarian materials .Origin of the
materials, used in the Bulgarian apparel companies” ..The Bulgarian companies are
producing clothes for many foreign commercial brands such as „Hugo
Boss”, „Esprit”, „Roy Robson”, „Tommy Hilfiger”, „Balmain”, „Lise
Charmel”, „Next” and a number of others. These Bulgarian companies for
clothing have quite stable material resource and building fund. Almost
80% of them dispose with private production buildings, and about 50% of
them have private stores. Some of the clothes are produced with
materials supplied by the client on a subcontract work. Some of them are
made by Bulgarian and other quality materials ..In the coming
years, European retailers will be forced to import the majority of large
order, commodity clothing from China in order to remain competitive.
But remaining competitive for these firms will also mean reducing
opportunity costs of lost sales resulting from mid-season stock- outs,
particularly for higher quality items. China, due to its slow delivery
and inability to ship in small quantities, will not be an option for
retailers and buyers to respond quickly to unforecasted fluctuations in
demand. European retailers must look closer to home for these solutions ..”strong>Summarized
the advantages for Producing in Bulgaria are:”/strong> ..- It’s in
Europe, which means closer than other producers of apparel (like China).-
Low transportation costs and quick response via fast delivery.-
Competitive prices relative to the region.- High quality.-
Flexibility for large and small orders.- Highly-skilled labor force.-
Consistent reliability.- Modernized technology base.- Modern
management systems of production quality.- Elimination of the import
taxes of Bulgarian textiles and clothing in EU, which facilitates the
delivery on these markets.It is proven fact, that the first signs of
an economic crisis are associated with contraction in the consumption of
clothing. This, however, is not a reason for limiting the production
and sales in the industry. The production costs have to be lowered and
the quality must stay the same…Bulgaria is Europe’s quick
response solution. Bulgarian firms are rapidly developing the internal
capabilities to manage all aspects of their supply chains to European
partners, including sourcing, design, transport/logistics and own
branding. These capabilities, combined with Bulgaria’s strategically
favorable location, make working with Bulgaria a critical and valuable
component to your company’s strategy .
Date:7/8/2010
Source:www.just-style.com