THE SWOT ANALISYS OF THE POLISH LEATHER AND

THE SWOT ANALISYS OF THE POLISH LEATHER AND FOOTWEAR INDUSTRIES Lodz, 7 th April 2005 Polish Chamber of Shoe and Leather Industry

STRENGTHS - 1 • tradition • relatively high workforce qualifications (F) • relatively high products quality • brand development (brands awareness among the consumers, POS promotional activities development) - (F) • rationalisation of the production management subcontracting (F)

STRENGTHS - 2 • Market oriented production coherent with fashion trends (F) • Law direct workforce cost and good workforce qualifications (L) • Free production capacities

WEAKNESSES - 1 • Insufficient access to raw materials - lack of local raw material caused by high cattle import (L) • Unused production capacity - excessive production capacities, law workforce productivity caused by improper work organisation • Access to capital - missing working capital, missing funds for investments and modernisation • Law or decreasing local markets share because of weak offer adjustment to the market demand needs (L)

WEAKNESSES - 2 • Other factors: – – – – no brands (L) undeveloped distribution channels no (L) or very poor (F) marketing skills management problems law flexibility to customer demand (L) no co-operation no will to develop and raise employees’ professional qualifications

WEAKNESSES - 3 • Little understanding or no understanding for the necessity and benefits coming from sector’s consolidation and common operation • Liabilities - very long payment terms

CHANCES - 1 • Access to EU markets: – easier EU markets penetration – equal law and chances – possibility of the access to the Baltic countries markets • Access to eastern markets

CHANCES - 2 • Capital and investments inflow – EU structural funds !!!!!!!!!!!! – Direct foreign investments – credit guarantees and trade insurance market development

CHANCES - 3 • Market tendencies – fashion and lifestyle tendencies - come back to the natural materials – leather articles market development – brand development (F) – increasing productivity and efficiency – new product lines – higher added products value

THREATS - 1 • Increasing competitiveness power of the products and materials from Asian countries!!!!!!!!!! • Retail and wholesalers’ favourable attitude towards Asian origin products • Import of finished products!!!!!!!!!!! • Materials import - leather being imported by the footwear producers (L)!!!!!!!!!

THREATS - 2 • Increasing direct and INDIRECT work costs • SMEs weak position • Missing national industrial policy • Limited society purchase value

THREATS - 3 • Missing national programme of promotional activities for companies • Unstable and incoherent law, lack of unambiguous interpretations • unacceptable way of EU law transformation to the Polish conditions

THREATS - 4 • Undeveloped distribution channels • Subcontracting: – production relocation outside Europe – without any changes, raw materials may be exported outside the country (L)