Survey on Competitiveness in the T&C Sectors in Bulgaria Sofia, 17 May 2005 This document has been produced with the financial support of the European Community’s BSP2 programme. The views expressed herein are those of BATEC and can therefore in no way be taken to reflect the official opinion of the European Commission. (BSP2 Perfect-link Contract № 2002-0314-581)

Part One Companies profile

(BSP2 Perfect-link Contract № 2002-0314-581) CONCLUSIONS: Results of 151 company questionnaires in the T&C sectors in Bulgaria This document has been produced with the financial support of the European Community’s BSP2 programme. The views expressed herein are those of BATEC and can therefore in no way be taken to reflect the official opinion of the European Commission. (BSP2 Perfect-link Contract № 2002-0314-581)

(BSP2 Perfect-link Contract № 2002-0314-581) CONCLUSIONS: Most of the companies are large and manufacturing for “themselves”. This document has been produced with the financial support of the European Community’s BSP2 programme. The views expressed herein are those of BATEC and can therefore in no way be taken to reflect the official opinion of the European Commission. (BSP2 Perfect-link Contract № 2002-0314-581)

(BSP2 Perfect-link Contract № 2002-0314-581) CONCLUSIONS: About 83% of the companies are middle and large enterprises and their markets are concentrate mainly in the domestic and EU. This document has been produced with the financial support of the European Community’s BSP2 programme. The views expressed herein are those of BATEC and can therefore in no way be taken to reflect the official opinion of the European Commission. (BSP2 Perfect-link Contract № 2002-0314-581)

General Awareness on Competitiveness Part Two General Awareness on Competitiveness This document has been produced with the financial support of the European Community’s BSP2 programme. The views expressed herein are those of BATEC and can therefore in no way be taken to reflect the official opinion of the European Commission. (BSP2 Perfect-link Contract № 2002-0314-581)

(BSP2 Perfect-link Contract № 2002-0314-581) CONCLUSIONS: To keep the dynamic of sales, more of the enterprises think, that the current strengths of their companies need changes. This document has been produced with the financial support of the European Community’s BSP2 programme. The views expressed herein are those of BATEC and can therefore in no way be taken to reflect the official opinion of the European Commission. (BSP2 Perfect-link Contract № 2002-0314-581)

(BSP2 Perfect-link Contract № 2002-0314-581) CONCLUSIONS: More of the half enterprises, think that in the next two years their competitive will be weaker. Companies point us most threatening competitors, countries from EU and China. This document has been produced with the financial support of the European Community’s BSP2 programme. The views expressed herein are those of BATEC and can therefore in no way be taken to reflect the official opinion of the European Commission. (BSP2 Perfect-link Contract № 2002-0314-581)

(BSP2 Perfect-link Contract № 2002-0314-581) Part Three The Chinese issue This document has been produced with the financial support of the European Community’s BSP2 programme. The views expressed herein are those of BATEC and can therefore in no way be taken to reflect the official opinion of the European Commission. (BSP2 Perfect-link Contract № 2002-0314-581)

(BSP2 Perfect-link Contract № 2002-0314-581) CONCLUSIONS: Bulgarian companies are significantly suffering for the new international threats. In particular they fear Chinese competition and a generalized pessimism prevails among them. This document has been produced with the financial support of the European Community’s BSP2 programme. The views expressed herein are those of BATEC and can therefore in no way be taken to reflect the official opinion of the European Commission. (BSP2 Perfect-link Contract № 2002-0314-581)

(BSP2 Perfect-link Contract № 2002-0314-581) CONCLUSIONS: 1. The negative impact is “significant”. 2. Relationships with clients, both domestic and Europeans, have been affected . This document has been produced with the financial support of the European Community’s BSP2 programme. The views expressed herein are those of BATEC and can therefore in no way be taken to reflect the official opinion of the European Commission. (BSP2 Perfect-link Contract № 2002-0314-581)

(BSP2 Perfect-link Contract № 2002-0314-581) CONCLUSIONS: Chinese products compete in “middle range” segment. Price is considered the winning factor by all. This document has been produced with the financial support of the European Community’s BSP2 programme. The views expressed herein are those of BATEC and can therefore in no way be taken to reflect the official opinion of the European Commission. (BSP2 Perfect-link Contract № 2002-0314-581)

(BSP2 Perfect-link Contract № 2002-0314-581) CONCLUSIONS: Bulgarian companies are convinced that Chinese competitors are often unfair. This document has been produced with the financial support of the European Community’s BSP2 programme. The views expressed herein are those of BATEC and can therefore in no way be taken to reflect the official opinion of the European Commission. (BSP2 Perfect-link Contract № 2002-0314-581)

(BSP2 Perfect-link Contract № 2002-0314-581) CONCLUSIONS: Importers and Traders are the strong allies of Chinese competitors. This document has been produced with the financial support of the European Community’s BSP2 programme. The views expressed herein are those of BATEC and can therefore in no way be taken to reflect the official opinion of the European Commission. (BSP2 Perfect-link Contract № 2002-0314-581)

(BSP2 Perfect-link Contract № 2002-0314-581) CONCLUSIONS: Chinese competitors may have weaknesses in quality and design. This document has been produced with the financial support of the European Community’s BSP2 programme. The views expressed herein are those of BATEC and can therefore in no way be taken to reflect the official opinion of the European Commission. (BSP2 Perfect-link Contract № 2002-0314-581)

(BSP2 Perfect-link Contract № 2002-0314-581) Part Four The Future This document has been produced with the financial support of the European Community’s BSP2 programme. The views expressed herein are those of BATEC and can therefore in no way be taken to reflect the official opinion of the European Commission. (BSP2 Perfect-link Contract № 2002-0314-581)

(BSP2 Perfect-link Contract № 2002-0314-581) CONCLUSIONS: 1. 90% of the companies point, that the Chinese presence in EU markets will increase. 2. Design and fashion are factors on which to invest. This document has been produced with the financial support of the European Community’s BSP2 programme. The views expressed herein are those of BATEC and can therefore in no way be taken to reflect the official opinion of the European Commission. (BSP2 Perfect-link Contract № 2002-0314-581)

(BSP2 Perfect-link Contract № 2002-0314-581) CONCLUSIONS: 1. Two directions: innovation and “make the business easier”, 2. ... A lot of thinking .... This document has been produced with the financial support of the European Community’s BSP2 programme. The views expressed herein are those of BATEC and can therefore in no way be taken to reflect the official opinion of the European Commission. (BSP2 Perfect-link Contract № 2002-0314-581)

THANK YOU! Emilia Zakova BATEC 36, Dragan Cankov blvd. WTC INTERPRED Тel.: +359 (2) 981 09 66 Fax: +359 (2) 981 44 83 E-mail: batek@abv.bg http://batec.infoinvest.de