The FINANCIAL — Georgian apparel companies have started business negotiations with new international partners aiming to increase their competitiveness globally.
The FINANCIAL — Georgian apparel companies have started business negotiations with new international partners aiming to increase their competitiveness globally.
The apparel manufacturers including Demetre 96 conducted effective negotiations with several Turkish companies interested in outsourcing in Georgia due to the favourable business climate. Georgians met several very important raw suppliers from China, Hong Kong, India and Taiwan and established relevant contacts for the delivery of raw material, which is not produced in Georgia at all.
These successful negotiations took place at Texworld Apparel Sourcing, one of the big international leading business fairs providing a platform for European sourcing of accessories, shirting, casual wear and knitwear. 811 exhibitors from 27 countries and 100,000 visitors met with each other at the fair.
In total five Georgian apparel manufacturers comprising Demetre 96, Elselema, Laura Gachava Factory, Iveria, Tsisatrtkela and EPI’s (Economic Prosperity Initiative) apparel sector consultant visited the fair.
“The purpose of the visit was to learn about global trends in the apparel sector,” Eka Nadareishvili, Apparel Sector Consultant at EPI, told the FINANCIAL. “Meet potential buyers and customers as well as raw material suppliers, gain experience in competitive interaction with clients, and increase awareness on outsourcing and investment opportunities in Georgia’s apparel sector through different meetings.”
“The whole fashion industry, from the high street to top luxury brands, come and buy here thanks to the variety and quality we offer,” said Michael Scherpe, President of Messe Frankfurt France. “We are continuing the very popular eco-friendly itinerary, which includes 90 weavers offering a wide selection from organic cotton to eco-friendly functional fabrics.”
Apparel sector tendencies in Georgia are very positive, experts state, but the country needs to be constantly aware of global trends. This event helped them in exactly this direction.
“The Apparel Sourcing trade show was interesting from a design point of view in terms of getting fresh ideas and a better sense of current fashion trends and modern global apparel requirements which will be positively reflected in our, as well as in general local, production,” Mzia Lashkhia, Head of Production at Iveria, told The FINANCIAL. “It was essential for us because I’m starting a new underwear line. In general underwear is not manufactured in Georgia and this niche will be quite successful if we offer products with affordable prices and high quality.”
After several month of Iveria’s unsuccessful attempts to find an organic silk producer for this new line, the Apparel Sourcing trade show exposed the company to an opportunity to find and negotiate with an organic silk producer from Hong Kong. This will enable Iveria to commence drafting a new plan for launching a new product line. Chinese producers were interesting for the company as well. As a result of these negotiations a new local underwear brand with modern and high quality silk will be available from next year. Iveria plans to export the products abroad as well in the future. Local products of European standards will become competition of foreign ones and this will increase the image of the country, and Georgian companies, abroad.
Georgian apparel manufacturers Demetre 96 were among those companies generating the interest of the Turkish party. Turkish company Zamate expressed interest in collaboration with Demetre for outsourcing reasons. The company representatives will visit Turkey shortly to meet with the potential client.
“We are negotiating with Indian company Mudra Lifestyle ltd,” said Nikoloz Vardiashvili, Deputy General Director in Production. “They produce raw materials for uniforms. If the price will prove acceptable for both sides, we will soon start cooperating. We want quite a big amount of materials. Overall the fair was very useful and supportive for us as we saw new tendencies in the apparel sector.”
In general the apparel business in Georgia is developing quite fast thanks to EPI. There are six apparel companies in western Georgian (one in Kutaisi and five in Adjara) established by Turkish investors. They are doing outsourcing of international brands including Adidas, Tommy Hilfiger, Puma, and Marks & Spencer clothing in Georgia. On the other hand there are twelve local middle and big apparel companies in Tbilisi mainly working for state tenders.
Georgia has lots of benefits to start outsourcing in this country, especially for Turkey. Human resources cost three times less than in Turkey. The cost of electricity is two and a half times less. Location also plays big role in these processes as Turkey and Georgia are neighbour countries and the cost of transportation isn’t high. Free trade relations with Turkey support these processes as well.
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