COMPETITIVNESS OF LEATHER AND SHOES SECTORS BULGARIA Textile. Clothing. Leather. Shoes. National Workshop 17 May 2005 COMPETITIVNESS OF LEATHER AND SHOES SECTORS BULGARIA RESULTS AND CONCLUSIONS OF PROCESSED DATA COLLECTED TROUGH SURVEY BY QUESTIONNAIRES FILLED BY 163 COMPANIES FROM SECTORS LEATHER AND SHOES Authors: Todor Bozveliev , Veneta Dimova This workshop is organized with financial support of the European Commission’s Program PHARE ,Subprogram BSP2 ,Project PERFECTLINK ,Contract № 2002-0314 – 581 .The views expressed herein are those of the organizers and authors and can therefore in no way be taken to reflect the official opinion of the European Commission National Strategy for Increasment of the Competitiveness.

(BSP2 Perfect-link Contract № 2002-0314-581) CONCLUSIONS: The anquette have been made among companies –producers, which take care for the selling themselves. 2. There weren’t included trade chains, but there is potential to develop such links. This workshop is organized with financial support of the European Commission’s Program PHARE Subprograme BSP2 ,Project PERFECTLINK ,Contract № 2002-0314 – 581 .The views expressed herein are those of the organizers and authors and can therefore in no way be taken to reflect the official opinion of the European Commission Този документ е изготвен с финансовата помощ на Европейската комисия.Изразените в него становища и мнения принадлежат изцяло на автора и не са пряко отражение на официалното становище на Европейската комисия. (BSP2 Perfect-link Contract № 2002-0314-581)

That fact was confirmed and by the turnovers of the studied companies. CONCLUSIONS: 98 % of the companies are SMEs and the competitiveness strategy should take that fact into consideration. That fact was confirmed and by the turnovers of the studied companies. Should find tools to consolidate the potential. This workshop is organized with financial support of the European Commission’s Programe PHARE Subprogramme BSP2 Project PERFECTLINK Contract № 2002-0314 – 581 .The views expressed herein are those of the organizers and participants and can therefore in no way be taken to reflect the official opinion of the European Commission

CONCLUSIONS: After the assessment of Bulgaria to EU and in the process of integration, if keep the structure of the markets the internal market will increase up to 93 %. The competitive pressure will increase and from countries members of EU 25 as then that will be for them internal market as well. This workshop is organized with financial support of the European Commission’s Program PHARE Subprograme BSP2 ,Project PERFECTLINK ,Contract № 2002-0314 – 581 .The views expressed herein are those of the organizers and authors and can therefore in no way be taken to reflect the official opinion of the European Commission

Trends of selling in natural indicator and in value are the same. CONCLUSIONS: Trends of selling in natural indicator and in value are the same. Only about 1/3 of companies show trend of grow up. As the volume in value and the volume in natural indicator increase with equal percentage 36% (35%) that means decapitalisation although of that relatively most successful companies This workshop is organized with financial support of the European Commission’s Program PHARE Subprograme BSP2 ,Project PERFECTLINK ,Contract № 2002-0314 – 581 .The views expressed herein are those of the organizers and authors and can therefore in no way be taken to reflect the official opinion of the European Commission

About 95 % of the surveyed companies understand the need of changes. CONCLUSIONS: About 95 % of the surveyed companies understand the need of changes. In the condition of available psychological readiness for changes , if develop adequate strategy for sustainable development of the branch and guidelines for it’s realization, it is possible to be realized. This workshop is organized with financial support of the European Commission’s Program PHARE Subprograme BSP2 ,Project PERFECTLINK ,Contract № 2002-0314 – 581 .The views expressed herein are those of the organizers and authors and can therefore in no way be taken to reflect the official opinion of the European Commission

CONCLUSIONS: Probably there is some misunderstanding of the question matter or lack of information needed for realistic assessment, because is underestimated the competitive pressure by the EU countries. This workshop is organized with financial support of the European Commission’s Program PHARE, Subprogram BSP2 ,Project PERFECTLINK ,Contract № 2002-0314 – 581 .The views expressed herein are those of the organizers and authors and can therefore in no way be taken to reflect the official opinion of the European Commission

This workshop is organized with financial support of the European Commission’s Program PHARE, Subprogram BSP2 ,Project PERFECTLINK ,Contract № 2002-0314 – 581 .The views expressed herein are those of the organizers and authors and can therefore in no way be taken to reflect the official opinion of the European Commission

Keep the present customers; Increase selling to the resent customers. CONCLUSIONS: The most important sequence is the lost of customers , which is the main reason for the second by significance consequence namely decrease of selling. Therefore when formulate competitiveness strategy should through realizing its politics to be possible (intended) to pass activities (actions) aiming: Regain customers; Keep the present customers; Increase selling to the resent customers. 3. Significantly concerned companies , which are in risk situation are about 71%. This workshop is organized with financial support of the European Commission’s Program PHARE, Subprogram BSP2 ,Project PERFECTLINK ,Contract № 2002-0314 – 581 .The views expressed herein are those of the organizers and authors and can therefore in no way be taken to reflect the official opinion of the European Commission

CONCLUSIONS: Only 13 % of the companies have been concerned in minimum possible way i.e. over than ¾ from the companies have been concerned visible and significant. About 87 % of the companies are in risk situation, which could be assessed as such one before bankruptcy. This workshop is organized with financial support of the European Commission’s Program PHARE, Subprogram BSP2 ,Project PERFECTLINK ,Contract № 2002-0314 – 581 .The views expressed herein are those of the organizers and authors and can therefore in no way be taken to reflect the official opinion of the European Commission

CONCLUSIONS: The most concerned group is that of local traders, which is somehow in any stage mirror effect of the fact that 65% of the markets belongs to the internal one. The share of both leading by concern segments is that one of local traders and that of EU traders which some is expected to be internal market which means 92,27 % internal market. This workshop is organized with financial support of the European Commission’s Program PHARE, Subprogram BSP2 ,Project PERFECTLINK ,Contract № 2002-0314 – 581 .The views expressed herein are those of the organizers and authors and can therefore in no way be taken to reflect the official opinion of the European Commission

This workshop is organized with financial support of the European Commission’s Program PHARE, Subprogram BSP2 ,Project PERFECTLINK ,Contract № 2002-0314 – 581 .The views expressed herein are those of the organizers and authors and can therefore in no way be taken to reflect the official opinion of the European Commission

CONCLUSIONS The price is leading, and it is a pity but it is most difficult factor to be override having in mind the main character of China’s economy. In addition if say that at the present moment one of the most important characteristics of the internal Bulgarian market (client) is that the price is with the most significant importance This workshop is organized with financial support of the European Commission’s Program PHARE, Subprogram BSP2 ,Project PERFECTLINK ,Contract № 2002-0314 – 581 .The views expressed herein are those of the organizers and authors and can therefore in no way be taken to reflect the official opinion of the European Commission

Should look for support by state institutions CONCLUSIONS: Should look for support by state institutions CONCLUSIONS: There are direct and indirect proofs for about 58 % of cases and if add and cases for which there are traces that means about 59 % of cases could be proof. Once more could say that should look for support by t he state (government & others). This workshop is organized with financial support of the European Commission’s Program PHARE, Subprogram BSP2 ,Project PERFECTLINK ,Contract № 2002-0314 – 581 .The views expressed herein are those of the organizers and authors and can therefore in no way be taken to reflect the official opinion of the European Commission

This workshop is organized with financial support of the European Commission’s Program PHARE, Subprogram BSP2 ,Project PERFECTLINK ,Contract № 2002-0314 – 581 .The views expressed herein are those of the organizers and authors and can therefore in no way be taken to reflect the official opinion of the European Commission

CONCLUSIONS: Should look to meet the interest of traders and producers. Probably there is a need t create vertical clusters from row materials to trade sites for selling to the end clients (consumers). CONCLUSIONS: Should continue work in the direction of sustainable quality, which obviously is strong advantage at the present moment although doesn’t correspond to the main market (internal) and it’s mass consumer at the present moment. This workshop is organized with financial support of the European Commission’s Program PHARE, Subprogram BSP2 ,Project PERFECTLINK ,Contract № 2002-0314 – 581 .The views expressed herein are those of the organizers and authors and can therefore in no way be taken to reflect the official opinion of the European Commission

Competitive advantages of China’s competitors Considireng different factors This workshop is organized with financial support of the European Commission’s Program PHARE, Subprogram BSP2 ,Project PERFECTLINK ,Contract № 2002-0314 – 581 .The views expressed herein are those of the organizers and authors and can therefore in no way be taken to reflect the official opinion of the European Commission

Which are the effective factors against Chinese competition? This workshop is organized with financial support of the European Commission’s Program PHARE, Subprogram BSP2 ,Project PERFECTLINK ,Contract № 2002-0314 – 581 .The views expressed herein are those of the organizers and authors and can therefore in no way be taken to reflect the official opinion of the European Commission

of European manufacturers? What are the levers that should be supported to enhance the competitiveness of European manufacturers? This workshop is organized with financial support of the European Commission’s Program PHARE, Subprogram BSP2 ,Project PERFECTLINK ,Contract № 2002-0314 – 581 .The views expressed herein are those of the organizers and authors and can therefore in no way be taken to reflect the official opinion of the European Commission