PERU TEXTILES Alberto Hart Peruvian Embassy London, 2 December 2008 Where is Peru? •World cultural heritage •Natural beauty and diversity •A leading emerging market? •Modern textile industry?? Why Peru? Why now? Dynamic, fast-growing and resilient economy, even in spite of credit crunch 9.2% growth in 2008, 7% in 2009* Booming exports, diversified markets Strong private and public investment, bustling domestic demand Least exposed Latin American economy to the financial crisis** Disciplined monetary and fiscal policy Ample international reserves Centre stage in 2008 to two major world summits APEC, LAC-EU) *IMF projections **UBS bank research Why Peru? Why now? 8 years of sustained economic growth Attractive investment destination Investment grade (Standard and Poor’s, Fitch’s) ‘Rising star’ of emerging markets manufacturing Relative low inflation Strong currency Extensive free trade network Peru is an export oriented economy committed to free trade and greater market access as a means of development It has a network of free trade, preferences, and other arrangements with the world’s main trading blocs The UK is much closer to Peru than you might think PERU – UK BUSINESS TIES Did you know? •All of these British businesses are active in Peru •UK is the second biggest investor in Peru •US$3.4 billion invested so far •US$6 billion expected investment •Bilateral Trade: US$ 378 million in 2007 •First Latin American company to enter the main market at the London Stock Exchange was Peruvian •There is a British Peruvian Chamber of Commerce in Lima: www.bpcc.org.pe Peruvian Textile and Apparel Sector Textiles is a strategic sector for Peru Textile exports in USM$ 2,000 1,800 1,600 1,400 US$ 1.7 billion in exports Main driving force of manufactured exports 1,200 1,000 800 600 400 200 95 96 97 98 99 00 01 02 03 04 05 06 07 Highest added value Leading source of employment Innovative and competitive industry Main destinations of textile exports 2007 United States: 48% United Kingdom: 1.5% US$ 835 Millons US$ 24 Millions France: 2% US$ 27 Millions Spain: 1.5% US$ 24 Millions Italy: 3% Venezuela: 23% México: 1% US$ 50 Millions US$ 403 Millions US$ 19 Millions Colombia: 3% Ecuador: 2% US$ 52 Millions US$ 35 Millions Chile: 3% Others 98: 12% US$ 51 Millions US$ 210 Millions Apparel exports to the EU and UK Exports to EU (USM$) 270 170 70 Exports to UK (USM$) 30 165.9 8 23.67 20 90.69 10 14.38 2003 2004 2005 2006 2007 16.6% Avg annual growth 13.5% Avg annual growth Otros 11% France 22% Germany 16% Spain 17% United Kingdom 17% France Spain Italy 17% Italy United Kingdom Germany Otros Main Peruvian Garment Exports Top Suppliers DEVANLAY TOPY TOP FRAMOR TEXTIMAX TRADING FASHION LINE SUDAMERICANA DE FIBRAS NETTALCO COTTON KNIT. MICHELL TEXTIL SAN CRISTOBAL TEXTILES CAMONES TEXTIL DEL VALLE AURA TEXTILES HIALPESA SOUTHERN TEXTILE NETWORK CREDITEX INDUSTRIA TEXTIL DEL PACIFICO Top Products Cotton T-Shirts Cotton Shirts Cotton Blouses Cotton Sweaters Cotton Tank top Baby Garments Woven pants for women Woven cotton shirts Knitted pants for women Synthetic T-Shirts D E L V A L L E Clients: •Polo Ralph Lauren, Jonathan Adler, (US) •Christian Dior (France) •Zambaiti Copertificio (Italy) •Bay crews (Japan) •Belpostel (Russia) From PERU to the World Alpha Shirt / Anne Fontaine / Antigua / Armani Exchange / Armani Jeans / Arturo Calle / Ashworth / Bloomcraft / Burberry / Calvin Klein / Christian Dior / Charles Tyrwhitt / Cutter & Buck / Divots / Donna Karan / El Corte Inglés / Fruit of The Loom / Gap / Giorgio Armani / Gear for Sports / Geoffrey Beene / Greg Izod / Norman / Guess / Hickey Freeman / Ike Behar / J.C. Penney / Lacoste / Land´s End / Liz Claiborne / L.L. Bean / Nautica / Oxford Shirtings / Perry Ellis / Philips Van Heusen / Ping / Polo Ralph Lauren / Sara Lee / Swiss Army / Tehama / Tommy Bahama / Tommy Hilfiger / Vantage / Woolrich / Zara Infrastructure & Production Production supply chain PERUVIAN FIBRES COTTON ALPACA VICUÑA Peruvian Cotton Characteristics…. 1. 2. 3. 4. Better resistance to weather changes. Hand picked to get only best fibers. Soft and shiny. Yarn is very bright, Tanguis has a high degree of dye absorption. 5. Peruvian Pima is spun from title Ne 50/1 up to Ne160/1 or 2. Alpaca properties… * Thermal: 5 times warmer than sheep’s wool. * Resistance: 3 to 4 times more resistant than wool. *High resistance to flammability. * Fibre:17 different natural colors, little wrinkle, high brightness. * Touch: smooth, comfortable Millenary tradition OPERATION CAPABILITY Peruvian Competitive Industry SOCIAL RESPONSIBILITY TIMELY DELIVERY PERUVIAN INDUSTRY COMPETITIVITY RESEARCH & DEVELOPMENT LUXURY FIBERS INTEGRATED INDUSTRY FULL PACKAGE INTERNATIONAL STANDARDS: CERTIFICATIONS Who certifies? CERTIFYING ORGANIZATION CONTACT TELEPHONE EMAIL Ebert Gala Yepez (511) 5171937 ebert.gala@sgs.com Carla Varea Perez del Solar (511) 4229000 Anexo 2604 carla.varea@pr.bureauveritas.com Ericka Cavero (511) 4229040 servicios@cotecna.com.pe Fanny Arteaga (511) 2218124 gl-lima@gl-group.com Diana Vargas (511) 440-1169 icontec@amauta.rcp.net.pe Iván Tenorio (511) 319900 rramirez@cerper.com Rocio Vidal (0511) 4711111 rocio.vidal@lr.org INSPIRATION DESIGN FASHION Showcasing to the World www.perumoda.com Activities Inaugural Gala Night Business Presentations International Seminars Contest “Young Fashion Creators” Runway “Press Tour” for invited international journalists Tendencies 2008 exhibition PERU MODA International Calendar… Prêt a Porter – Jan, Paris France Play Time – Jan, Paris France Moda Manhattan - Jan, New York USA Intermoda – Jan, Guadalajara Mexico Magic – Feb, Las Vegas USA Material World – April and Sept, Miami & Los Angeles USA PERU MODA - April, Lima Perú Colombiamoda -July, Medellin Colombia Magic- Aug, Las Vegas USA Globaltex – Sept, Los Angeles USA Prêt a Porter – Sept, Paris – France Berlin Sapica– Sept, Guadalajara Mexico How do I source from Peru? •The Peruvian Embassy can put you in direct contact with a specific enterprises that may interest you (contact details in information pack) •Promperú can arrange a visit to Peru, meetings with the exporters and factory tours •Based on your requirements we can match your needs to the most suitable suppliers •Peru Moda provides an ideal opportunity to grasp the variety on offer of the Peruvian textile industry, we’ll invite you!* •If you prefer to use an agent there are Peru based agencies (recommended contact details in information pack) •Incatextiles is a London based agency that has been in close contact with the industry Many thanks…! www.promperu.gob.pe