Kosovo Uniforms and Sportswear Assessment - USAID EMPOWER - 2016 03 FINAL doc

March 2016
This document was produced for review by the United States Agency for International
Development. It was prepared by:
Ahmet Halilagic, Textile Sector Advisor, for
Cardno Emerging Markets USA, Ltd., implementer of
Empower Private Sector Project USAID Kosovo
KOSOVO APPAREL SUBSECTORS
ASSESSMENT –
UNIFORMS & SPORTSWEAR
2016 Update – Domestic and Export Market Opportunities and
Challenges
DISCLAIMER: The views expressed in this publication are those of the author(s) and do not
necessarily reflect the views of the United States Agency for International Development or
the U.S. government.

Kosovo Uniforms and Sportswear Assessment - USAID EMPOWER - 2016 03 FINAL doc
CONTENTS
1. EXECUTIVE SUMMARY.................................................................................................1
2. TASKS AND METHODOLOGY........................................................................................2
3. UNIFORMS AND SPORTSWEAR SUBSECTORS OVERVIEW .............................................3
3.1 Uniforms and Sportswear Subsectors................................................................................................3
3.2 Production and Operations................................................................................................................4
3.3 Sales and Growth...............................................................................................................................4
4. FINDINGS AND RECOMMENDATIONS ..........................................................................6
4.1 Strengths............................................................................................................................................6
4.2 Opportunities.....................................................................................................................................7
4.3 Challenges..........................................................................................................................................8
4.4 Sector-Level Recommendations.........................................................................................................9
4.5 Company-Level Competitiveness Assistance Recommendations.................................................... 12
4.6 Sequencing Year-Ahead Company-Level Assistance....................................................................... 17

1
1. Executive Summary
Job creation through increasingly competitive and market-oriented SMEs is the overarching
objective of the USAID EMPOWER Private Sector project, implemented by Cardno Emerging Markets
USA, Ltd. The project produced a Sector Assessment & Selection Report in late 2014, which
identified the textile products sector as one that had the potential for substantial employment
expansion, if properly supported. EMPOWER subsequently catalyzed the formation of the Kosovo
Apparel Marketing Association (KAMA), to assist the sector’s companies in promotion and buyer
connections, especially to foreign markets. In collaboration with KAMA, EMPOWER commissioned
this report to focus on two subsectors of the Kosovo apparel industry, namely uniforms (for police,
military, construction companies, hospitals, schools, market chains), and sportswear (T-shirts, gym
suits, sweat shirts, sweat pants, knit shirts, etc.), to more deeply evaluate their market potential and
competitiveness improvement needs.
18 private companies, plus a large retail buyer and relevant government institutions, were visited for
purposes of this report. The following are the principal findings and recommendations:
1. A cadre of capable Kosovo apparel business owners has come of age in the past five to ten years,
and they are demonstrating strong entrepreneurial capabilities. They have invested in plant and
equipment, product quality, and workforce skills, and have grown their businesses to upper-
small / lower-medium size – 40 to 70 people. Several of these companies are capable of
production volumes adequate for relatively smaller orders from international contractors.
2. Uniform producers are export-ready if results-driven support packages are offered. Support can
be grouped under the categories of workforce development, organizational and production
design, technology improvement, and marketing. While these categories are distinct,
addressing each can be expected to have synergistic carryover effects from one to another.
Assistance should operate simultaneously at the company, industry, and advocacy levels,
directly and through KAMA and KIESA.
3. Specifically at the company level, the first key step of support is in establishing proper design for
the entire production process, providing additional specialization for local employees, and
improving visibility on international market, by identifying the optimal brands and producer
countries to target for cut-make-trim (CMT) and branded product (private label) contracting.
4. Sportswear companies should focus on capturing significantly more of the domestic market in
the near term, after which they can move strategically toward export marketing and sales.
5. Sales opportunities that represent “low-hanging fruit” are readily available now. These include
the needs of large domestic retail chains (ETC, VIVA, NORA) for suppliers that can be responsive
for smaller and more frequent in-season orders for apparel products. Much of this business is
now satisfied by imports, probably less than ideally for these buyers due to time lags and order
quantity requirements. Kosovo producers, like others in the Western Balkans, are also well-
located for export contracting to Western European markets, for which diaspora connections
especially in Germany and Switzerland are an additional advantage.

2
With proper assistance there are a number of apparel producers who can advance to the next level
over the coming years: 200-300+ employees, able to supply the larger order volumes needed by
global CMT contractors. Major job growth in the sector is possible if Kosovo can take its place as a
significant supplier of contract apparel alongside its Western Balkan neighbors who are successful in
this business.
2. Tasks and Methodology
The assessment methodology relied on direct visits and face-to-face interviews with company
managers and/or owners to evaluate a firm’s competitiveness in five key areas: 1) product design;
2) market opportunity and connection to buyers; 3) technical capacity/productivity; 4) availability
of skilled labor; and 5) access to finance.
A questionnaire was designed to guide the interviews with company owners to insure all data were
uniformly collected.
Secondary research of available business and industry information along with local knowledge and
conversations with business leaders guided the development of a list of viable companies from each
subsector. From this preliminary research, the list was narrowed to the “most-likely to succeed”--
those companies identified as being strong enough to benefit from results-driven support. The
research and list development was a collaboration between the consultant and EMPOWER
professional staff, which accompanied the consultant on all site visits.
There are few government-collected business statistics in Kosovo. Direct company visits and face-to-
face interviews gathered sales and employment data, as well as business plans and long-term goals
to gauge export readiness and need for support. The conversations proved an excellent opportunity
to establish a relationship and gauge management’s knowledge and understanding of what it would
take to leverage new domestic market opportunities and expand into foreign markets. A total of 18
companies were visited and top management interviewed between December 8-24, 2015 (listed in
an annex table).1
The sample of interviewed firms is representative based on the following factors:
production capacity, products range and experience in domestic market. Company owners
presented a high level of willingness to cooperate with the Project.
The consultant also conducted formal meetings with representatives of the Ministry of Trade and
Industry (MTI) and the Kosovo Investment and Enterprise Support Agency (KIESA) to determine their
perceptions of the potential for official government support of apparel producers ready to export.
Finally, since this effort is to find new market opportunities for domestic companies, the consultant
also met with Kosovo’s largest domestic buyer – ETC – a company with a total of 25 retail chains in
Kosovo, Macedonia and Montenegro, to gather knowledge of its experience with Kosovo apparel
companies, especially from these two subsectors.
1
Many of the companies visited produced both uniforms and sportswear but a minimum of five and a
maximum of 10 companies in each specialty were interviewed and toured in accordance with contract.

3
3. Uniforms and Sportswear Subsectors Overview
In ex-Yu Kosovo, textile products were the second largest industry, employing more than 10,000
workers. Today, this industry officially employs about 1,500 workers, though taking into
consideration the non-formal economy, the true number is at least 3,000, and could be significantly
higher. In addition to the long tradition of this industry, today’s Kosovo textile industry is promising
for several additional factors: low cost of production, low-cost labor force, free trade agreements,
tax-friendly policies, and the country’s geographic location, convenient to distribution both to the
east and west. In combination, these factors qualify Kosovo’s textile industry as one that should be
targeted as a national priority for growth. The untapped potential for domestic sales can add
millions of Euros in new revenues, while the opportunity for export is both available within the
region and in the European market, with the right guidance and support, as recent assessments have
indicated. 2
The textile industry seems to be one of the most promising for job creation in Kosovo, and it appears
to be experiencing a resurgence, with registered employment growth of 12% in 2014.
3.1 Uniforms and Sportswear Subsectors
The revitalization of the textile industry can be seen in the growth in employment opportunity and in
companies’ management decisions that are funneling profits back into production upgrades. Ten
years ago, the majority of the companies were family-owned, starting as micro and small companies
employing 5-15 people. But today some textile companies, especially in the uniform and sportswear
sector, have made impressive growth with most of them employing from 20 to 150 employees. The
largest apparel producer in Kosovo, a jeans manufacturer, has grown to over 300 employees.3
The following table presents the leading companies in these two subsectors
Uniforms Sportswear
Artatex – Peja S//Sprint – Podujevo
Eurotex – Mitrovica Artatex – Peja
Intertex – Gjakova Wear & Go – Gjakova
Unikat – Peja Invers One – Dragash
Fashion Network – Prizren Fashion Network – Prizren
The companies visited are stable. Most have their own production facilities or hold long-term leases
for space. The companies demonstrated sound business practices: continuously investing in
upgrading and expansion of production capacity, modernizing equipment and workforce
development. A few have already adopted international standards (ISO 9001) - a sign of their
2
Promoting Private Sector Employment Project – Swiss Cooperation Office in Kosovo, March 2015
3
Kosovatex, a jeans company located in Pristina, mainly a cut-make-trim (CMT) contractor for major European
labels. The visits revealed that the jeans sector also has made good strides, and could be recommended as the
next sector for focused Project support.

4
willingness to invest in the right elements for expansion into international markets. In earning ISO
certification, these companies dedicated the necessary resources to improve and modernize their
organizational structures and product quality. All are essential in making these two sectors of the
Kosovo textile industry export-ready.
3.2 Production and Operations
The visited companies in both the uniform and sportswear sectors had production capacities to
meet the core requirements for organization and flexibility to accommodate internal and external
challenges. Most fabrics and raw materials are imported from Turkey (90%) and other countries, but
no issues were uncovered to suggest that any production processes were adversely affected or
jeopardized by this supply arrangement. Companies are experienced in logistics and demonstrate
strong relationships and service cooperation with their international suppliers.
Raw material imports tariffs are 10% plus 18% VAT. Those costs can be mitigated if the company is
an authorized user of a customs warehouse. This legal arrangement allows companies to avoid VAT
taxes on raw materials until turned into finished products ready for sale and/or delivery. This
arrangement helps the companies manage cash flow, allowing them to pay VAT as they are to
receive payment for finished goods rather than making the tax payment in advance of production. A
further tax benefit available to exporters is that imported raw materials turned into product for re-
export are not subject to VAT tax. This will become even easier when the government of Turkey
ratifies the pending bilateral trade agreement between the two countries. Kosovo textile producers
will be able to import fabrics and raw material without any tariff (as in Serbia), giving Kosovo’s textile
companies yet another export advantage.
The companies interviewed each organized their operations of modeling, cutting, processing
(sewing), finishing and packaging in accordance with their conditions. Therefore, the level of
productivity and efficiency is different among companies. The questionnaire asked each company
owner/manager to grade the relationship between their current production output and their full
production capacity. The average response for this ratio was 60%, in other words, on average the 18
companies felt they had an average of 40% excess production capacity.
The managers based their assessment on their company’s equipment, number of employees,
employee skills and work ethic, and their own ability to manage time, money and resources. Of
course, the companies with the most modern equipment and facilities also had the most efficient
production lines and more skilled technicians. These are encouraging numbers because, despite the
fact that the majority of the companies visited are operationally below international standards4
and
are in need of new business and production knowledge, the potential for production expansion at
least partially exits.
3.3 Sales and Growth
According to the Kosovo Statistics Agency, in November 2014, the import of textile products was
valued at €22MM, while exports were just €1.3MM. Though there is no question that the true
4
For example, production capacity of shirts/day in Artatex will be 300 shirts/day with 30 employees. A similar
company in Albania, Mediterranean, produces 400 shirts/day with same number of employees. (PPSE Project –
Swiss Cooperation Office in Kosovo, March 2015)

5
numbers in both cases are much higher, this trade gap indicates substantial potential for import
substitution in the domestic market; it also demonstrates the impact growth of textile exports can
have on the nation’s efforts for a more sustainable economy.
At present, uniforms producers only sell domestically. Sales to private companies and government
institutions represent 80% of the revenues; the remaining 20% comes from company-owned retail
outlets. There are several reasons to be optimistic about the potential to expose the uniform
manufacturers to new markets. The requirement that workers wear specific uniforms is an
opportunity for the domestic companies to land these major contracts.
A niche market opportunity exists in military uniforms. Although foreign presence will diminish over
time, these troops do contract with Kosovo companies for uniform needs. At the same time, the
national military is growing. National authorities believe the need for uniforms and related
accessories offers new revenue streams for the uniform companies.
The uniform companies are among the largest companies interviewed and with their more modern
equipment and facilities are the most prepared of the two subsectors for export opportunities.
Sportswear producers sell nearly 100% of their finished products to the domestic market. Most sell
through the large retail outlets – ETC, VIVA, EMONA – that have stores throughout Kosovo. Some of
the chains have stores in the region (Macedonia, Montenegro). Domestic producers earn their share
of the market with low price and through fast and flexible delivery strategies, but they are under
constant threat that these products could be replaced by imports from Turkey, China, or Bangladesh.
In each of the past two years, the companies have experienced revenue sales increases of 5% to 10%
according to the ETC general manager. The trend for the sportswear companies is upward, but
according to the ETC manager interviewed, the sector loses far too much in domestic sales to
importers. In 2015 alone, ETC posted €17MM in apparel sales in Kosovo, less than one-third of which
came from domestic suppliers.5
Timing is important to these sportswear companies as they attempt to figure out how to capture
more of their fair share of the domestic market. As stated, the competition is stiff as international
brands use less expensive labor and poor materials to challenge local companies’ price and
distribution advantages. However, additional production expansion and better branding and know-
how are required for these companies to claim the domestic market for themselves.
The costs to domestic producers of marketing and expanding sales in the local market are probably
lowest right now. As more international brands and retailers move into Kosovo, it will become more
costly and challenging for Kosovo companies to grow their market share.
A 2012 report6
estimated that Kosovo industry satisfies less than 10% of domestic demand for textile
products. The remaining 90+% is open to exploitation, if Kosovo textile companies can improve
production quality and quantity. Focusing on import substitution alone would have a significant
impact on key economic indicators. More importantly, leveraging import substitution will allow
5
The fact that ETC alone, based on this data, imports €12MM worth of apparel annually shows how
understated the €22MM customs data must be for total apparel imports.
6
USAID KPEP Program: Report on the Textile Industry in Kosovo – Findings Survey 2012

6
many of these companies to develop the staff, equipment, certifications, and branding for export
capacity.
4. Findings and Recommendations
This assessment was contracted to help EMPOWER: (1) determine if companies from the two
targeted subsectors possessed the capacity to benefit from support packages, and (2) begin the
process of identifying what support would be the best investment to help them expand into contract
export markets. Both objectives focused toward the goal of creating jobs and sustainable growth for
the participating companies.
As direct as the objectives are, the consultant offers a note of caution based on experience: the best
support package USAID offers a company may not always be what the company thinks is most
beneficial. Packages of support that help them first maximize their best strength should be what
comes first. From there, the company experiences new growth and begins to recognize the business
elements that need more strengthening before they can reach the next levels.
4.1 Strengths
The leading companies from both subsectors have in common the following strengths:
Uniforms subsector companies are definitely market-driven companies. Their marketing and design
approach reflects their research and knowledge of customer wants and needs. Most sportswear
subsector companies plan and design their final products based on market demands. Some
companies are developing their own brands and becoming more recognizable in the domestic
market.
The quality of raw material/fabrics and accessories used in production is of good quality. Despite the
fact that all inputs mostly come from Turkey (90%), companies experience no obstacle to their
production. They have established strong, direct contacts with suppliers, and import processes are
understood and stable.
Companies from both subsectors are highly motivated manufacturers. They are focused on
improving the quality of production to achieve high standards. Most of these companies are well-
established, operating 10 or more years; some of them are younger, but all of them are dedicated
to improving their productivity and efficiency. They are ready to invest moving into new modern
facilities with new technology, able to adopt international quality standards and increase production
capacities.
The Kosovo market is well-covered. The uniform companies have good connections and contacts
with key buyers in the national sector, as well as with public institutions. Companies from the
sportswear subsectors are increasing their presence in the Kosovo market; they are very flexible and
could respond fast even with small orders, and they record steady growth.
The low cost of the labor force makes them extremely competitive in the international markets
especially for companies from the uniforms subsector, because huge buyers in the work wear

7
industry in Europe are demanding lower prices from their uniform suppliers due to reduction and
cutting their spending budgets.7
All leading companies from both subsectors see exports as an opportunity for growth and want to
develop in that direction. It is a very important fact, otherwise all further assistance and supportive
actions could have only short term impact.
Conclusions regarding strengths:
1. The companies selected have the capacity to begin achieving results in the near term if
provided support packages to help them expand into new markets, domestic and/or
international.
2. Uniform companies are export-ready, if results-driven support packages are offered.
3. Sportswear companies should focus on capturing significantly more of the domestic market
in the near term; as they do so with support, they can move strategically toward export
marketing and sales.
4. Timing is important. Sales opportunities that represent “low-hanging fruit” are readily
available now. If successful in capitalizing on these near-term opportunities, the time line
and investment required to achieve the long-term goals will be much less.
4.2 Opportunities
Over the past six or seven years, China has been the garment factory to the world, producing the
largest percentage of the world’s clothes. However, dramatically increasing manufacturing costs,
reduced government subsidies, and a burgeoning domestic demand for wearing apparel in China
have prompted many international brands and retailers to begin moving a portion of their
production out of China. With limited available production capacity in other low wage countries of
Asia such as Bangladesh, Cambodia, Thailand, and Vietnam, the migration has opened new
opportunities for apparel producers in other countries outside of Asia.
Kosovo is favorably located geographically for Western European markets. It has particularly close
traditional and diaspora ties to Italy, Germany, and Switzerland. Logistically Kosovo has easy access
to EU markets via modern roads and airport.
Kosovo tax rates are also favorable: a general flat rate of 10% for imports and 0% for exports. No
custom duties are levied on imports of technology or on intermediate products that are re-exported
(after processing). Kosovo is a member of CEFTA, and it enjoys duty-free access to the EU under the
Autonomous Trade Preferences and to the US under the Generalized System of Preferences (GSP).
Kosovo also has an agreement of free trade with Turkey, which will come into power once it is
ratified by the Turkish Parliament. Additionally, Kosovo benefits from trade preferences with Japan
and Norway that include only a few limitations.
This is perhaps the best time Kosovo and its uniforms and sportswear subsectors to expand their
markets internationally and even domestically (though the window of opportunity is closing on the
7
Global Market Review of Work Wear - Forecasts to 2019, April 2015

8
domestic market as international brands and retailers move aggressively into Kosovo). With
targeted assistance in a few key areas, the Kosovo uniforms and sportswear companies have an
excellent opportunity to expand their markets and in turn create more jobs.
4.3 Challenges
While the companies visited have enjoyed important successes, to date mostly on the domestic
market, and have growth potential for export in both CMT and branded sales, they face several
challenges related to:
 Scale, lead time
 Branding
 Productivity, quality, lack of standards
 Human resources
 Marketing & lack of knowledge about international buyers
 Safety & market scrutiny
Scale: Production capacity of individual factories is small compared to garment factories in Asia and
Latin America or Albania. Owners of the firms interviewed expressed a general willingness to
collaborate on large orders, but there is some difference in quality levels across the factories visited,
and a few company owners are rightfully concerned that sharing an order with a factory that
produces at a lower level of quality would be detrimental to the better factory and perhaps the
sector as a whole. It should be noted that any external efforts (by KAMA and/or the donor
community) to encourage factories to share orders should be undertaken with care as only those
factories producing at the same quality level should combine production capacity to accept large
orders.
Although their relatively small production capacity limits the firms’ individual and collective ability to
attract orders from the large international brands and retailers, international brands and retailers of
all sizes have been moving toward smaller but more frequent orders to keep stock “fresh” for
consumers and to minimize retail risk. In addition, retailers in emerging markets place smaller orders
and in fact often have difficulty finding export quality factories that can accommodate such orders.
While the largest international brands and retailers remain out of reach of the Kosovo factories for
reasons of scale, smaller brands and retailers (diaspora) and developing markets (Albania) offer
excellent opportunities for the factories in Kosovo.
Garment factories in developing countries and emerging markets generally operate as contract
sewers for large international brands and retailers. Though competition is strong and profit margins
low, CMT, private label, and “full package”/”brand offers” work8
also offers the greatest potential for
larger-scale business and employment. In order to minimize risk and obtain larger orders, factories
need efficient production processes and high quality standards.
Branding: Branding diversifies risk and enhances profit potential, especially for the local market.
Some companies in Kosovo are doing a good job of building local and to some extent regional
branding for exports. In this way they can reduce dependency on the sourcing decisions of
8
“Brand offers” or “full package” means that the contracting buyer provides design, and the contractor /
supplier obtains the raw materials and produces the final product.

9
international brands and retailers, and to participate in higher profit segments of the value chain.
The companies visited in this consultancy (S//SPRINT, ARTATEX) have been successful, with some
assistance of EMPOWER, in taking the initial steps to create brand names with logos and initial
promotional materials of international quality. Brand building, however, is more than just a name, a
logo, and a promotional brochure; it is a never-ending series of tasks that requires deliberate,
strategic marketing to identify needs of a desirable but reasonably accessible group of consumers, to
grow brand awareness among those target consumers (and retailers that serve their market
segment), to create initial (trial) and repeat purchase, and ultimately build brand loyalty. Brand-
building is important to the longevity and profitability of some Kosovo textile companies but it
requires further work.
Production: The companies visited during this rapid assessment are producing a long list of uniforms
and sportswear with quality from moderate to quite good. Efficiency appears average to good as
compared to international standards. Quality varies enough between factories to make sharing
orders across more than two or three factories problematic. Based on market success to date, it is
believed pricing is at least reasonably competitive. Though many of them have departments for
design, modeling, cutting, sewing, finishing/control and packaging, the organizational design is
sometimes weak or not well established and as a result of that lead times are long, a disadvantage
for CMT business. A few companies that we visited so far adopted international quality standard
(ISO 9001) but most of them do not have it yet.
Human resources: When it comes to production process, there is permanent lack of qualitative labor
force for each processing part, mostly in design and modeling, but also in organizing and controlling
the entire sewing process. Lack of skilled machinery technicians also represents a bottleneck for the
majority of visited companies. Administrative middle management skills are also weak for a majority
of the visited companies.
Marketing: Companies’ perception of the domestic market is decent, but lack of knowledge about
the international market and potential buyers for most of the visited companies was evident.
Safety & market scrutiny: Most of the factories visited for this rapid assessment operate in new (or
relatively new), spacious, purpose-built buildings, with multiple emergency exits, and multiple fire
extinguishers placed throughout most of the building/s. Housekeeping is generally good, minimizing
fire hazards. While some upgrades are needed, safety practices are generally quite good. Pursuing
factory certification for safety and environmental compliance will eventually be essential for
international buyers.
4.4 Sector-Level Recommendations
The leading companies from the uniforms subsector have good potential to expand their markets
both within and outside of Kosovo, if certain steps are undertaken in a timely manner. The best way
for export is through services (full package and CMT). Companies from the sportswear subsector
have space to increase their share of the domestic market through import substitution.
Support can be grouped under the categories of workforce development, organizational and
production design, technology improvement and marketing. While these categories are distinct,
addressing each can be expected to have synergistic carryover effects from one to another.

10
Assistance should operate simultaneously at the company, industry, and advocacy levels, directly
and through KAMA and KIESA.
Workforce development:
Summary of findings: Majority of interviewed companies emphasized their urgent needs for skilled
workforce. This issue already becoming as a problem especially for companies who havs ambitions
and potential for growth. The structure of qualitative and skilled workers needed for companies,
could be grouped in two main groups: a) technical (hard) skills – specialists for design and modeling
and stitching, machinery technicians, textile technologists, quality controllers, and b) managerial
(soft) skills, especially middle management, for marketing, promotion, and communication.
Recommendations:
 Design and begin implementation of a program and schedule for “triangle” (Industry,
Education and National Employment Service) to engage industry with key educational
institutions, in particular the Kosovo’s High School for Design in Textiles and National
Employment Service
 Undertake study tours for key school faculty and staff, and to identify practical ways to
incorporate new learning into and around the existing curriculum
 Formalize the cooperation between companies and schools plus vocational education
centers
 Create a summer internship program for youth
 Support training programs at company premises in cooperation with National Employment
Service
Organizational and production design:
Summary of findings: So far companies are mostly competitive with low price which is good starting
point, but for long run battle on the market, besides low price, buyers want quality, compliance with
required standards, service reliability, and all these elements Kosovo companies should carefully
create. With proper approach toward better and more efficient synchronization between all existing
processing parts (design, modeling, cutting, sewing, finishing/control and packaging) companies
would be able to have lower lead time – which is crucial for CMT business, and also quality of the
final product will be more identical among different companies which will be easy to accept large
orders and easiest for division among the companies within a sector.
Recommendations:
 Provide consultants and experts helping leading companies to properly design the entire
production process
 Provide additional specialization for local employees at best performing companies in region
 Support adoption of international quality standards.

11
Technology improvement:
Summary of findings: Visited companies have mostly adequate technology mostly for sewing. For
the purpose of increasing productivity it is necessary to modernize departments for design, modeling
and cutting as well as final control and packaging. It will definitely create better condition for
companies to respond toward large orders as well as specialization of final products.
Recommendations:
 Support companies purchasing modern equipment for design, modeling and automatic
cutting
 Organize study tours for local technical staff visiting companies abroad that have modern
technology
Marketing:
Summary of findings: The current owners of the both subsectors have risen through the production
side of the business; hence while they have impressive knowledge about production, but limited
knowledge and experience with applying modern concepts of marketing in a market-driven
economy. Most of these companies are focused on production, thinking they can sell everything
they can produce, not focusing on product specialization for precise buyer targeting. Good
connection with buyers is the key point because companies will recognize and follow their needs.
Properly convey the right and concise message to buyers at international and domestic market
about companies’ potentials, is extremely important at this stage of Kosovo textile industry. Leading
companies from both subsectors could play initial role and use that momentum.
Recommendations:
 Create business profiles at the company level as well as industry/subsector level
 Increase the presence and promotion via social media network and improve the companies’
websites
 Engage international agents to do international market research (mapping) and proper
segmentation, targeting and positioning strategy
 Undertake on-the-ground marketing research and analysis to ground truth and prioritize
new expansion target markets, and to identify the optimal brands and producer countries to
target for CMT and branded product, respectively; recommended short-list countries
 Schedule individual technical assistance to train and guide the leading companies in the
development and writing of updated marketing strategies and annual Marketing Plans for
both their CMT and branded business. This should ideally follow the marketing research and
analysis recommended above, so research results can be incorporated in both the training
and Marketing Plan development.
 Establish formal cooperation with diaspora business community in targeted countries
 Organize international visits, promotions and B2B events and revisits
 Support international media representatives to visit Kosova companies for the purpose of
additional promotion of Kosovo textile industry/subsectors potentials in targeted
countries/markets

12
 Promote the textile industry at the national level and create a sense of urgency in order to
provide powerful coalition
 Use the momentum and create a database (official key statistic data) for Kosova textile
industry with main purpose to bring the textile industry into the official National
Development Strategy
Additional recommendation:
 Encourage factories to implement safety upgrades and website security steps outlined in this
report and facilitate safety certification of factories
4.5 Company-Level Competitiveness Assistance Recommendations
The challenges and needs of the visited companies are broadly similar, covering efficient production
design, specialized and high qualified work force, specific machinery and equipment, quality &
control standards, and contact with international market.
Company: ARTATEX
Location: Mishiste
Production: Uniforms
Recommendations:
 Provide consultants and experts helping to establish proper design for entire production
process
 Support purchasing modern equipment for design, modeling and automatic cutting in
accordance with organizational design adopted
 Provide marketing expert for international market research and mapping (agent)
 Create a company business profile and prioritize new expansion target markets, and to
identify the optimal brands and producer countries to target for CMT and branded product,
respectively; recommended short-list countries
 Support adoption of international quality standards
 Encourage factory to implement safety upgrades and website security
Service and/or Textile High School
Location: Peja
Production: Shirts
Recommendations:
process

13
ARTATEX has potential to export in both (uniforms and shirts). In order to create sustainable
presence at international market some improvements in area of the quality of the workforce and
current production capacities are necessary. EMPOWER should immediately take in consideration to
engage external technical expert to assist ARTATEX to establish proper design for entire production
process.
The technical consultant should deliver:
1. The exact profile and needs of qualitative workforce
2. The list of necessary/unnecessary equipment
3. Adequate processing design (modeling, cutting, processing, packaging and control)
4. Production capacities projected
Expected outcomes:
1. Increase the quality of workforce
2. Increase the productivity and efficiency
3. Increase the quality of the final product
4. Increase the quality control (processing and product)
EMPOWER should take in consideration to assist ARTATEX upon international quality, management
and control standards adoption (especially ISO 9001)
For the purpose of international market penetration ARTATEX needs to define company business
profile and engage professional sales / manufacturers agent in order to target and identify potential
producers for CMT and branded product collaboration. EMPOWER’s assistance in this area is highly
recommended. Such an agent can support multiple companies’ buyer connections.
Company: INTERTEX
Location: Gjakova
process
 Create a summer internship programs for youth
 Create a company business profile

14
INTERTEX is recently established (2015) modern company as a member of MABETEX GROUP and
formed initially to respond toward the needs of MABETEX employees (uniforms). From that
perspective they are completely export oriented and current production capacities are in accordance
with market needs. So currently there are no urgent needs for assistance upon this issue except to
clarify the quantity that INTERTEX is capable to produce additionally for export (out of MABATEX
GROUP needs). EMPOWER should assist INTERTEX in order to define marketing strategy and annual
marketing plan with focus on CMT and branded product for new buyers.
The company plans to employ additional 150 employees, and may need EMPOWER’s support for
vocational training, possibly a center in their premises. It should be permanent resource for new
workforce not only for INTERTEX but also for other companies in textile industry.
INTERTEX should attend B2B and trade fair events as significant member of Kosovo uniforms
subsector potentials supported by EMPOWER.
Company: WEAR & GO
Location: Gjakova
Production: Sportswear
process
 Encourage factory to implement safety upgrades and website security
WEAR & GO is company with long experience and good local market presence. They are currently
not ready for export due to limited production capacities, quality of the final product and lack of
knowledge related with international market. In order to create conditions for export, WEAR & GO
needs to do substantial improvement in area of entire production process and EMPOWER’s
assistance in this area should be taken as initial step.
Company: S//SPRINT
Location: Podujeve
Recommendations:

15
process
 Support purchasing modern equipment for new production line (underwear)
Service and/or Textile High School.
S//SPRINT is well-established with good growth potential. They are indirectly (trough ECT in
Montenegro and Macedonia) already exporting but for direct presence at the international market
they need to do small adjustments and improvements in area of productivity, product design
(modeling) and market research. EMPOWER should assist.
Company: EUROTEX
Location: Mitrovica
Recommendations:
process
 Support purchasing modern equipment for new production line (underwear)
 Engage international agents to do international market research (mapping) and proper
segmentation, targeting and positioning strategy
 Encourage factory to implement safety upgrades as well as protocols and procedures
 Create a summer internship programs for youth.
EUROTEX has good growth potential. Beside the uniforms they are planning to extend production
lines in area of underwear and provide additional 25 employees. They have strong presence on local
market and they are ready for export as well. As a first step EMPOWER should engage technical

16
expert in order to assist and support EUROTEX with existing production process and help to establish
the new production line for underwear on time. As a result of that action EUROTEX will be able to
increase productivity and quality of the final products and company will be able to compete at the
international market in long term. For the rest following recommendations EMPOWER should assist
to this company on the same order like it is given/recommended above.
Company: UNIKAT
Location: Peja
Production: Uniforms and shirts
Recommendations:
process
 Encourage factory to implement safety upgrades and website security (protocols and
procedures)
UNIKAT is stable company with long tradition and experience on local market. Innovative, ISO 9001
standard adopted, and with 70 full time employees has very good potentials for growth and export
in both (uniforms and shirts). On first place EMPOWER should immediately take in consideration to
engage external technical expert to assist UNIKAT to establish proper design for entire production
process.
For the purpose of international market penetration UNICAT need to define company business
profile and engage professional agent in order to target and identify potential producers for CMT
and branded product collaboration. EMPOWER’s assistance in this area is highly recommended.
UNICAT also should define marketing strategies and annual marketing plan (FY 2016/17) focused on
international market research/needs.
Company: INVERS ONE
Location: Dragash

17
Recommendations:
process
 Renew the second hand equipment and machinery
 Encourage factory to implement safety upgrades and website security (protocols and
procedures)
INVERS ONE is young company (2014) logistically very well constructed and in accordance with
technical standards. At the moment they have no capacity for export due to inexperienced
workforce, lack of production capacities, lack of quality control and lack of market knowledge. In
order to create conditions for export, INVERS ONE need to do substantial improvement in area of
entire production process and EMPOWER’s assistance in this area should be taken as initial step.
Company: FASHION NETWORK
Location: Prizren
Production: Uniforms and sportswear
This company has a good potentials and experience on the market and could play a vital role in
domestic and international market but current production facilities are humble and not adequate for
any further support until they not move at new own premises. Base on owner’s statement during an
interview related with his plan to construct new production facilities during this year it is worth to
take this company in consideration seriously as soon as they finish with construction.
At mean time FASHION NETWORK should attend at B2B and trade fair events as significant member
of Kosovo uniforms subsector potentials supported by EMPOWER.
4.6 Sequencing Year-Ahead Company-Level Assistance
1. Provide technical experts to consult as to production process, equipment, and workforce skills.
(Spring 2016)
2. Establish international trade fairs visitation and exhibition strategy. (Spring 2016)

18
3. Support purchasing modern equipment in accordance with technical recommendations and
growth potential. (Summer 2016)
4. Support international standards adoption. (Summer 2016)
5. Identify marketing agents for international market research and mapping. Prioritize new
expansion target markets; identify brands and buyers for CMT and branded production.
(Summer/ Fall 2016)

19
ANNEX:
1. Key Interviews
Company Location Contact Product / Role
Intertex Gjakove Ardita Rizvanolli, Operations
Manager
Uniforms
Activa jeans Gjakove Reshad Rama - Owner Sportswear
Wear & Go Gjakove Ruzhdi Bokshi - CEO Sportswear
Artatex Mishishte Agim Mustafa – Owner Uniforms & sportswear
Fashion Network Prizren Furkan Rada - Owner Uniforms & sportswear
Puntex Prizren Shpend Beqiri - Director Uniforms
S//Sprint Podujeve Sami Sopa – Owner Sportswear
Eurotex Mitrovice Arian Syla – General manager Uniforms
Unikat Peja Xhavit Collaku - Director Uniforms
Zero 5 Gjakove Kushtrim Shehu – Sales manager Uniforms & sportswear
In Design Prishtina Veronika Bajcinovci - Manager Printing service company
Mustafa Brothers Ferizaj Agim Mustafa – Co owner Uniforms
Invers one Dragash Isemidin Emini - Owner Sportswear
KAMA Pristina Adrijana Hiseni, Executive Director Business association
ETC Peja Enes Nallbani – Manager of textile
department
Retail chain
MTI Pristina Valbona Dushi – Director of industry
department
Government
KIESA Pristina Remzi Ahmeti – Head of Export
Promotion Sector
Government
2. References
Reference Author
Assessment of the Textile Sector in Kosovo; Key
Elements of Phase I -Fact Finding (March 2015)
SDC Kosovo Promoting Private Sector
Employment Project
Company Lifecycle Management (1999) Ichak Adizes
Global Market Review of Workwear - Forecasts to
2019 (April 2015)
Malcolm Newbery
Report on the Textile Industry in Kosovo – Findings
Survey 2012
USAID KPEP Project
Kosovo Sector Assessment & Selection Report
(November 2014)
USAID EMPOWER Private Sector
Project
Sector Profile of the Textile Industry (March 2014) Ministry of Trade & Industry; UNDP
Aid for Trade Project

Kosovo Uniforms and Sportswear Assessment - USAID EMPOWER - 2016 03 FINAL doc

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