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"In Bulgaria, we create mainly high quality products"

 

 

In connection with future fashion exhibition BGate 2008, Ms. Valeria Jekova, executive director and manager of the company INA Trading, and chairman of BAATPE, has particularly given an interview to a reporter of the agency "FOCUS" discussing the current situation of textile industry in the country:  

 

 

Focus: What are the trends this year for imports, exports and sales in the textile industry in Bulgaria? 
Valeria Jekova: In the middle of 2007 statistics reported that they observed trend of reducing Bulgarian export of clothing and textiles. In BAATPE, we are almost sure that at the end of the year, the result will not be such and even more, we will have little growth. I think we succeed well with the expert assessment because those were precisely the facts for 2007. For the first half of this year, we still have no data from statistics, but we expect year 2008 to be the first in which there will be a decline in the quantity of textiles and garments produced in Bulgaria. I hope the fall will not be in value because more than 90% of production being exported is intended for the European market and for companies that are positioned in the average and above average levels, suggesting that Bulgaria is chosen mostly for the manufacturing of expensive clothes.

Focus: In which countries mainly?
Valeria Jekova: Germany, Italy, France.

Focus: On what is due the fall in the branch?
Valeria Jekova: Currently there is a phenomenon of worldwide recession. Sales of clothing companies, which traditionally produced in Bulgaria, are lower. On my personal opinion that is the main reason. There are other reasons, of course. Part of orders at the lower price segment and in the mass products continue to be produced in China. Missing workers and firms do not work with its full production capacity. Along this trend, we observed the return of orders for more expensive and more complicated garments from China to the Balkan Peninsula. Countries of the Balkans continue to be a good place for production as a ratio between quality and price. Besides traditional producers Bulgaria, Romania, Turkey, we might mentioning also Macedonia and Serbia.

Focus: Do you think that we are competing on the European market in terms of quality?
Valeria Jekova: In terms of quality we are competitive, but we are not sufficiently productive.

Focus: We need to increase productivity, so we?
Valeria Jekova: Yes. This is a topic that basically should be commented when we talk about economic indicators in the sector. We are below the level of Europe and about 30-40 percent below the level of Turkey.

Focus: How we could increase this productivity?
Valeria Jekova: The plants in Bulgaria technically are very well equipped. Now there are also European programs and we have opportunities for funding, if necessary to replace or supplement the special machines. Our problem is that we can not produce more only if we have enough machines. People are not well trained. We lack an average level of management, lack of skills and knowledge in senior management, lack of motivation in people to work.

Focus: Does the opportunity to receive training from external experts exists?
Valeria Jekova: They are such attempts. In the last 5-6 years shall bear the opportunity to benefit consulting services of specialists from Europe.

Focus: And is there a wage of our specialists to target abroad?
Valeria Jekova: If there are, they are agents. Personally I do not think that we have many specialists who have such a level that can "sell" abroad.

Focus: What is our main lack - good practice, organization of education?
Valeria Jekova: Organization of education. Over the past 20 years there is no professional schools for training of workers - and from there things started. Specialized colleges attract students with majors as a declaration of "designer", "creative constructor" and similar positions. In Bulgaria units are companies that make their own product. From a young man who goes to study with the intention to become a designer, you can not wait that he will become a real professional after its completion. To succeed with own brand required adequate training, many tools, talent and work.

Focus: The amount of remuneration there is reason graduates to refuse to participate in this process and begin work?
Valeria Jekova: Maybe, but I do not think it is only the amount of remuneration. Very few people who complete higher education institution, want to work in the production sphere. Production has its peculiarities. Young people who end, prefer to be realized in services - to become sellers, waiters, barmen. And as far as the salaries of people working in garment enterprises, they may be more than 1000 leva.

Focus: And how to start?
Valeria Jekova: It depends on the skills and knowledge of people. Wages range from officially declared minimum wage to pay under the 1000-1800 leva. The figures, which were mentioned, are issue from official survey among members of the association for the level of pay of more than 20 different positions in a textile company.

Focus: Comparing to Europe are these levels competitive?
Valeria Jekova: Probably not, but certainly if in Bulgaria we work more intensive and produce more, the pay will be better.
 
Focus: In terms of sales - Is our products preferred in Bulgaria?
Valeria Jekova: I think so. Especially in the average price segment.

Focus: To say what type of clothing?
Valeria Jekova: All kinds of clothing, but especially ladies' and men's top clothing.

Focus: So, still hold our you?
Valeria Jekova: I think Bulgarian, despite the offer of cheaper garments from Turkey, and China, like the Bulgarian products and have greater confidence in it. I am personally one of those who prefer to be dressed with clothes produced by Bulgarian producers.

Focus: Is there a change in the way of work in relation to European requirements? More restrictive?
Valeria Jekova: No, we work for years mainly to Europe and basically I do not think that something significant has changed in terms of requirements.

Focus: So these requirements, you knew them before entry to the EU?
Valeria Jekova: Right. In Bulgaria we are working with European companies and the working conditions have always been coordinated with international requirements. So in terms of the requirements is not nothing dramatic happened. The problems with our entry into the European Union concern other two directions - the departure of workers from Bulgaria and the expectations of the people to increase their wages, without necessarily those ideas to be linked to a commitment to increase productivity.

Focus: You would think that they have reached their limit of capacity, to say to eight-hour workday?
Valeria Jekova: Probably think that. But why then in a Turkey can produce 30-40% more?

Focus: So, we will increase the labour productivity if people learn to work better with machines, use their full capacity and compact their working time ?
Valeria Jekova: Right. For this there must be a willingness by the employer and the will of the worker. Must have common goals and rules for their achievement because when on one side trying to make changes and the opposite not receive an adequate response, both sides are losing motivation.

Focus: How many companies are dealing with production of clothing in Bulgaria?
Valeria Jekova: I am not sure that I can give you true figure. Probably around 2500-3000 and I do not think that their number is substantially changed. More important, I have shown the number of employees in the sector, which in 2006 year shows lasting trend - from 170 thousand in 2005-2006 till probably around 140 thousand in mid-2008. Many companies reported 15% -20% shortage of manpower.

Focus: It seems to me that the number of these companies is big enough for our country. Or because Bulgaria do mainly with exports, that creates no problems?
Valeria Jekova: In large part, these companies are working on contracts to outside contractors and until they are satisfied in terms of quality, delivery periods and prices, they would have an interest in Bulgaria.

Focus: In September is the Balkan Apparel and Textile Exhibition.
Valeria Jekova: Yes, we are preparing the event. BGate is the largest specialized B2B exhibition in the sector and this year will be held at 25 to 27 September.

Focus: What is expected this year?
Valeria Jekova: I do not think that something different happens in comparison with last year. The exhibition is divided into three podizlozhbi. In one of the halls will be commercial companies that offer equipment and materials for the manufacture of garments. In another room are producers of Bulgaria and other Balkan strani.Te are divided into two groups. In the first are those which have their own brand. They will show their collections for spring-summer 2009. In the other group will be companies that work in order to outside contractors. They will count on visitors who are mainly companies from Europe, to notice them. This year we have a rich background program - it will be held an international meeting of women entrepreneurs, Labour Stock Exchange of young designers, organized in partnership with the magazine "DEVA" etc.