Enhanced competitiveness for Finnish

companies in the textile, clothing and

furniture sectors

through sourcing and production in Central

and Eastern Europe and Turkey

Henri Norio

Consultant

Finpro

Trends in sourcing and production

• Offshoring -> Nearshoring

• Near sourcing, responsible and ecological production and

transportation routes

• Production moving closer to home markets

21/05/2013 6 © Finpro

Source: PR Newswire

Source:UT San Diego

Source: Billboard Biz

Source: Just-style.com

Central and Eastern Europe and Turkey –

Partnership for Finnish companies?

• Central and Eastern Europe

(CEE) and Turkey offer

numerous possibilities for

Finnish textile, clothing and

furniture industry companies

to enhance competitiveness

• CEE and Turkey are markets

not only for competitive cost

labor and production, but

also for highly skilled

workers, long traditions in

industries and partnerships

with foreign companies

21/05/2013 © Finpro 7

Why CEE and Turkey?

• Business culture & Free

trade agreements

All countries have free trade

agreements within textile

sector to EU and they share

the European mentality and

understanding in business.

• Flexibility & Efficiency

The suppliers in the markets

provide short lead and

delivery times

• Quality

Countries have long

traditions in the textile and

furniture industry

21/05/2013 © Finpro 8

Why CEE and Turkey?

• Competitive costs

The labor costs are

competitive in the markets.

Example Bulgaria still at 2008

price level.

• Production close to the

consumers

The markets are relatively

near to Finland, which saves

up in logistics when the

market for Finnish company’s

product is in Europe or Russia.

• Capacity

Modern technologies and

skilled workers enable Finnish

companies to adjust the right

production capacity. 21/05/2013 © Finpro 9

Finpro as an internationalization partner

• CEE market offers various

opportunities for Finnish companies

to improve their competitiveness

• Finpro has helped many Finnish

companies from different industries

to find partners in sourcing and

production. 2012: 1400

assignments, dozens in the CEE

area in textile business.

• In CEE market Finpro has found

partners for example for home

textile, work wear and underwear

production

• Finpro can help to find the right

sourcing partners, who can deliver

the needed quality and capacity in

competitive cost.

21/05/2013 10 © Finpro

Finpro’s offices in Central and Eastern Europe

and Turkey

21/05/2013 © Finpro 11

Czech Republic

Prague (Also assignments for

Slovakia)

Poland

Warsaw

Unkari

Budabest (Also assignments for

Serbia)

Romania

Bucharest (Also assignments for Bulgaria)

• Textile consultants

• Familiar with culture and language

• 100% commitment

• Finnish Embassy

Finpro Navigator

21/05/2013 12 © Finpro

Improving

Market Position

Establishing a

Presence

Planning

Market Entry

Planning

International Growth

Acquisition

Candidate Search

Market Monitor

Sales Accelerator Entry Options Partner Search International

Growth Plan

Test Drive

Right Markets

Sales Channel

Development Direct Sales

Establishing

Company

Supplier Evaluation

Export Partner

Groups

Trend Pulse

Industrial Services

Finpro Navigator

21/05/2013 13 © Finpro

Improving

Market Position

Establishing a

Presence

Planning

Market Entry

Planning

International Growth

Acquisition

Candidate Search

Market Monitor

Sales Accelerator Entry Options Partner Search International

Growth Plan

Test Drive

Right Markets

Sales Channel

Development Direct Sales

Establishing

Company

Supplier Evaluation

Export Partner

Groups

Trend Pulse

Industrial Services

• Perusteellinen etsintä ja

arviointi tuotantokumppanista

• Tarjouspyynnöt, tarjousten

vertailu

• Vierailu yritykseen

• Testitilauksesta jatkuviin

toimituksiin

Examples of textile and clothing production’s

strong segments

21/05/2013 © Finpro 14

Bulgaria

Knitwear, shirts, suits, trousers, light

and heavy workwear, socks and

accessories.

Czech Republic

Production potential for high quality,

mainly technical textile and

automotive industry related products.

Hungary

Fine leather products, protective

clothing, knitwear, waterproof

sportswear and home textiles.

Poland

High quality clothing, upholstery

textiles, boat textiles such a covers

and tents, high tech material

products.

Romania

Knitwear, pants, work wear, socks and

accessories, shoes and other leather

products

Serbia

Finished clothing, knitwear, underwear,

work wear, socks and shoes.

Slovakia

Luxurious clothing, textiles, technical

textiles and shoes from high quality

outdoor shoes to safe work shoes.

Turkey

Cotton fabrics and yarns, knitwear,

woven clothing (suits, jackets, dresses,

skirts), home textiles, tights and socks.

Examples of furniture production’s strong

segments

21/05/2013 © Finpro 15

Bulgaria

Sofas and chairs, MDF and

wooden furniture

Czech Republic

Raw material supplier and

subcontractor network is

reliable, wood processing

industry is well developed

Poland

The cost of production and

labor is competitive. High

quality products, workforce is

qualified and skilled, well

developed large supplier

networks

Romania

Wooden furniture parts, kitchen furniture

and bookcases

Serbia

Furniture for hotels, hospitals and schools

Slovakia

Excellent material base, strong wood

processing industry, upholstered furniture

Turkey

Wooden furniture for offices, kitchens and

bedrooms

References from different industries

21/05/2013 © Finpro 16

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