Serbia’s textile and garment industry is ideally placed for short lead-time smaller production runs in response to shifting fashion trends. Moreover, proximity to both fashion centers as Paris, Milan or Rome, as well as to major retail markets lends sensitivity to market trends, speed to market, and reduced transportation costs.This position is based in a long history of success in the outward processing market.
Today, there are more than 1,480 textile and garment companies in Serbia. The majority (77%) are private small and medium enterprises. Some 16% of companies are still in social ownership.
These are the largest firms, are mainly vertically organized, and generally find themselves well prepared to compete with the new private firms.
According to official data, in 2003, twelve firms accounted for 23.37% of total textile and garment exports and 9.2% of total textile and garment imports. This illustrates the highly fractured nature of production – with many small and medium sized private firms. The Serbian textile companies are registered in three groups: Production of textile materials - 17 companies, Production of clothing items - 1.230 companies and Production of knitwear items - 201 companies.
The textile industry of Serbia boasts with highly qualified labour, which has its base in the extremely developed educational system that includes education both at secondary and university level. Sewers and technicians are educated in specialized secondary schools, evenly spread throughout the country. Higher levels of education, at specialized university departments, offer postgraduate education in related fields.
Serbian textile companies can effectively serve as secondary sources of high quality textile for European retailers. They can react quickly to smaller orders with quick turnaround times. The relatively low cost labour force, as well as the strong tradition of textiles in Serbia ensures high quality products at very competitive prices. Furthermore, many business opportunities can be found in yarn and fabric production, together with the ready–made garment production. The industry has large capacities for Cut–Manufacturing–Trim (CMT), with quality and delivery times which can suit even the most demanding clients. Serbia has traditionally cooperated with many foreign partners and has been one of the leading garment manufacturers for high selling brands. Fashion industries of France, Italy and Germany intensively used production capacities in the country together with highly qualified and low priced labour. Clients have included Gucci, Hugo Boss, Valentino, Dolce & Gabana, Benetton, Tommy Hilfiger and many more.
The fact that the textile industry is highly dependant on imported materials creates ample opportunities for investment in this field. In order for Serbian textile producers to benefit from the existing agreement with EU, it is required that all raw materials used in the production of textiles and garments are of Serbian or EU origin. Since importing raw materials from the EU raises the price of the product, it would be significantly more efficient for the raw materials to be of Serbian origin. Any investment which would be made in the production of domestic raw materials would have a quick return, because the sale of any raw materials produced locally is almost guaranteed.
Also, it is important to mention the exceptional ability of companies to work private labeling . A few of companies members of cluster Fashion apparel cluster Serbia which for years have extensive experience in producing own brands have a great capacity to produce private labeling product. These companies have excellent designers within their company, which gives them added value in making trendy collection.
ReplyDeleteFACTS currently consists of 16 private companies and three academic institutions. See more: http://www.clusterfacts.org.rs/eng/
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