Analyses of Market and Trends of Development

• Duomenų šaltinis: Statistikos departamentas, Eurostat.
• 27% starting from 2006.01.01 24% starting from 2008.01.01.
• Profits tax for enterprises is 15% plus new social tax which is:
• 4% for the year 2006
• 3% for the year 2007
• Land tax is 1.5% from the value of land
• Real estate tax is 1% from market value of the asset value
• Pollution tax is dependent on quantity of used resources as gas and patrol
• Natural resources tax is dependent on quantity of used natural resources as water and others.
Analysis of textile industry
• Source: Statistics Lithuania.
Segment of textile industry in manufacturing industry
Enterprise profitability, %
Average brutto salary
Turnover (sold production)
SWOT of the textile industry
• Strengths
• Big number of employee
• 80-85% production is export
• Export/import ratio is more then 1
• competitive labour compare to other countries past candidates to EU
• Competitive advantage – production flexibility / short terms, small orders /
• High education of management and technical staff
• Strong education base
• Taxation system
• Location – bridge from East to West
• Weaknesses
• Only labour sales
• Profitability is low
• Export quantity decrease
• Decrease of investments
• Lowest labour productivity among Lithuanian manufacture branches
• Salary compose biggest part in the cost structure
• Opportunities
• Trade possibilities with EU countries
• Value added production
• Efficiency increase by using more automated equipment
• Brand value creation
• Threats
• China producers competition
• Salary increase
• Energy resources price increase
• Result of emigration -employee deficit
COMPETITIVE ENVIRONMENT
• Competitors
Competitors
• “A grupe”
• Competitor only in woven fabric dyeing;
• Equipped with old, second hand machinery;
• Capacity - 100 000 m/ month;
• Not certified for ISO 9001 and ISO 14001;
• Weaves linen fabric and sews articles for bath and sauna. The main products are bathrobes, towels and other sauna accessories under the brand name of A-grupe;
• Advantage – full cycle from weaving to ready made product;
• In addition sell service of fabric finishing, bleaching, dyeing, softening...

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