FASHION INDUSTRY

Libertad y Orden

GROWTH, CONFIDENCE AND OPPORTUNITIES TO INVEST

A priority sector for the country, driven by the Productive Transformation Program, a public-private alliance working to strengthen the Colombian Fashion Industry as a world-class sector.

Throughout the last decade, the Colombian Fashion Industry market achieved a compound annual growth rate of 4.2%, with a market value of US $8.690 Billion in 2014, making it the third most prominent country in the region, after Argentina and Brazil. Euromonitor International, 2014.

Growing demand for textiles: imports in this category increased by 49% between 2010 and 2012, meeting the needs of the local market and exportable finished goods products to major business partners: the United States, Mexico, and Ecuador. DIAN (Direccion de Impuestos y Aduanas Nacionales de Colombia [The National Directorate of Taxes and Customs]) 2013.

CONSOLIDATED SECTORWITH SIGNIFICANT GROWTH

Thirteen free trade agreements offer tariff benefits and stability for long-term investments.

Ten international investment agreements with Colombia. Includes agreements for the reciprocal promotion and protection of investments. Industry, Trade, and Tourism Ministry, 2014.

COLOMBIA, A PRODUCTION CENTER AND OUTSTANDING LOGISTICS HUB IN THE AMERICAS

Colombia is competitively located, providing easy access to global markets with over 700 direct international flights each week and more than 4,900 domestic flights each week.

Potential for preferential access to more than 1.5 billion consumers thanks to the country’s geographical location and Free Trade Agreements with the countries of the Andean Community, NAFTA, Mercosur, the United States, the European Union, the Northern Triangle, and Canada.

Competitiveness in North American market access, at logistical costs three times less, on average, than those incurred from China.

In the past 10 years, the sector has reported dynamic growth in exports at an annual rate of 8.4%, making the country third in regional rankings, just behind Brazil and Peru, and ahead of countries like Chile and Mexico.TradeMap, 2013.

A network of companies with approximately 450 textile manufacturers and 10,000 clothing production units. INEXMODA, 2012.

Incentives associated with research and development such as the income tax deduction of 175% of the value invested in R&D and the VAT exemption for the import of equipment and items for use in R&D centers.

Additionally, income received by companies to finance scientific, technological, or innovation projects is non-taxable.

Dynamic internal market with a 4.2% rate of growth between 2004 and 2014 in the consumption of fashion items, for a total of more than US$82.487 billion in household purchases in this category. Euromonitor International, 2014.

MANUFACTURERS

2000-2014, MILLIONS OF USD

6,615

CAGR: 2004-2014: 4.2%

6,8177,069

7,420 7,360 7,096 7,359

7,734

8,3278,690

9,0779,484

9,917

8,001

P: PROJECTED. Source: © Euromonitor International, 2014. Calculations: PROCOLOMBIA.

COLOMBIAN FASHION NDUSTRY SALES

MAJOR FOREIGN COMPANIES CHOOSE COLOMBIA AS A PLACE TO INVEST

Kaltex, Mexico: Purchased shareholdings in the Colombian firm Coltejer.

Polymer Group, United States: Manufacturing plant in the Pacific Free Trade Zone in Cali, Cauca Valley.

Parkdale Mills, United States: Operates in Colombia with the company Colombiana de Hilados, with a manufacturing plant in the Free Trade Zone of Rionegro in Antioquia. Has capacity for carded open-end and combed ring-spun.

Coats, United Kingdom: This company has operated in Colombia for more than fifty years as Coats Cadena in the city of Pereira, Risaralda.