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Interview with Valeria Jekova

Valeria Jekova
Valeria Jekova
Chairman
Bulgarian Association of Apparel and Textile Producers and Exporters
Bulgarian Association of Apparel and Textile Producers and Exporters

Buying power of Bulgarian population is low and it is getting even lower.
With Fibre2Fashion Correspondent Cindrella Thawani, Valeria Jokova tells us about the companies working on lower price segment, and successfully doing cheaper production. Further, she says that industry is revitalising and steadily consumption is increasing in Europe. Synopsis: Bulgarian Association of Apparel and Textile Producers and Exporters (BAATPE) is a national voluntary association of companies in the field of textiles and clothing. Through its activities, BAATPE tries to contribute to the development of its members at national and international level. Moreover, defend and represent the interests of Bulgarian manufacturers in the county and abroad. Valeria Jekova serves as the Chairman of BAATPE. Earlier, she has worked with textile company 'Orlov' and Tomen Corporation of Japan. She has done Master of Geography and Tourism from Sophia University of Bulgaria from 1977 to 1981. Further, she completed Strategic Management Program in 2006 and Master Organization and Management of International Trade Economics Institute Karl Marks, Sofia in 1988. Excerpts:

What are those myriad sectors of textile industry, which are sprouting in your region?

I am not sure that we can talk about “sprouting sectors”. The T&C industry in Bulgaria occupies an important place in the economy of country for many years and is one of the key employers. But, if I have to be more precise about the specifics of our industry, we can point out according to the official data, which shows that from approximately 5000 companies in the sector; more than 90 percent of them works in sub-sector “Manufacture of clothing” and the rest – in “Manufacture of textile articles, without clothing”. It describes quite well the specification of our industry.
 

Which new trends and styles are emerging in Bulgaria’s textile and apparel industry?

Talking about customers, in the last four to five years, the companies working in the lower price segment, shifted to China, Pakistan, India, Vietnam, where they succeed to produce large amounts significantly cheaper. Their place in Bulgaria was taken by companies that work in middle and high price level and have high requirements concerning quality, technical level of equipment, qualification of employees.

How do you see the impact of economic crises on country’s textile and apparel industry?

In 2007, our industry reached to its absolute peak of development - as sales and value. Then at the end of 2008 the sector was badly affected even by the first signs of the crisis. International consumption lowed, traders reduced their orders. Many Bulgarian companies were forced to shrink their size, releasing part of the workers. In the year 2009–2010, orders designated to the Bulgarian manufacturers, declined by about 20 – 25 percent. In last two years 2011 and 2012, the industry is reviving and this revival is easily explained by the awakening and gradually increasing consumption in Europe.

What kind of challenges industry is facing and opine your overview on the purchasing power of people as well as domestic end user demand?

Stagnation and constant lowering of the buying power, as almost everywhere in Europe.Our sector produces not more than five percent of the yearly volumes for the domestic market. Furthermore, buying power of Bulgarian population is low and it is getting even lower. Bulgaria is the poorest country in EU with average salary of EUR 350 and minimum salary of approximately EUR 150.

How does the textile and clothing industry pay attention towards environment?

Having in mind that the textile production is very minor part of this industry, the pollution is not so big issue. More, especially since we have joined the EU, we talk about energy efficiency and saving. The positive thing is that the textile and garment producers in Bulgaria can count on European funding for energy audits, new technologies and modern equipment.

How do you see Bulgarian market for the new contenders?

Our industry has a long tradition. In Bulgaria, companies actively sew clothes from the 60s. After the 80s, they moved to the stage of complete redevelopment and up grading of technology. A tendency still kept at present. Now, we can proudly say, that our country has well equipped enterprises, flexible to produce short series of complicated styles with good quality and in short lead times. At the moment, our competitors are more the manufacturers from Turkey, Romania and Macedonia.

Which are those major export and import countries for Bulgarian T&C industry? Why?

The Bulgarian T&C industry regroups a bit less than 5000 companies and approximately 97,380 employees, which represent five percent of the total number of the employed population and 18, 3 percent of the people employed in industry. The 90 percent of the production made in Bulgaria is designated for export, and 93 percent of it - to EU countries. Our main countries for exports are: Italy – 24 percent, Germany – 23 percent, Greece – 13 percent, France – 9 percent, UK – 4 percent, Spain percent The biggest in export is the share of clothing in the following product categories: suits, sets, jackets, dresses, skirts, trousers. Our main Balkan partners are Greece, Turkey and Romania. Our major Balkan partners are Greece and Turkey, even that in 2011 the import from Greece had a decrease with 7, 8 percent on an annual base. The analyses of the data for the import of textile, knitwear and clothing for 2011 shows quite high concentration in several groups of goods: a trend, similar to the export.

What are those substantial steps that BAATPE undertake in order to benefit its members?

BAATPE tries to represent the industry and its main advantages are high quality of work, experienced labor force, modern technologic equipment, fast delivery, flexibility for large and small orders, consistent reliability, etc. We improve the competitiveness of the firms and their staff by organizing seminars, training courses, business missions in the country and abroad, business visits to international fairs and B2B events. Besides, we work in close cooperation with most of the European organizations and participate in many international projects together with branch organizations of countries, members of EU, the Balkans, and from other counties. In last two years, we have worked a lot as an interlocutor between the foreign customers and the Bulgarian companies; we try to facilitate their contacts and to help international companies to find the right partners in Bulgaria.
Published on: 07/11/2012

DISCLAIMER: All views and opinions expressed in this column are solely of the interviewee, and they do not reflect in any way the opinion of Fibre2Fashion.com.

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