History
Began as a small Italian-Albanian business DONIANNA sh.p.k, today owns two factories and has a total number of 1168 employees. Its production capacity is at about 10,000 pairs of shoes a day, of which 3,500 pairs are the final product, and the rest are partly manufactured in Albania (about 95 percent) to then be later re-exported to Italy.
Assets/Activity
The company has assets worth about 2.7 million euros in equipment and 1.6 million euros in real estates. During the 2003 year, both factories, Donianna and Roximplex, had a total sales volume of 7 million euro.
Investments
During the 2003 year, the company invested about 3 million euros for the construction of new factory buildings, the purchasing of more equipment and to achieve the technical manufacturing requirements for the final product, which represented the most important event in the history of this company.
A butterfly that springs up from its crystals is the symbol of a company which wants to convey the idea of the constant change. The Federated Department Stores are distinguished for their wide variety of products offered. A different type of clothing for each client.
FEDERATED Inc has some 900 Stores throughout the US.
It operates through well known brands like: Bloomingdale’s, The Bon Marchè, Burdines, Goldsmith’s, Lazarus, Macy’s dhe Rich’s–Macy’s. They also sell on the Internet through Macy’s and Bloomingdale’s. Donianna’s products under the “Made in Albania” brand are destined for the chain of stores in the city of New York.
A Successful Contract
The success of Donianna sh.p.k with Federated Inc. is evident. Recently three other well known US companies have sent their orders to the company for “Made in Albania” products.
KENNETH COLE
A company with 20 years of experience in the shoes sector. Headquartered in New York.
Distinguished for first class products and strong marketing.
RACK ROOM SHOES
Founded in 1922. Specializes in with the trade of shoes, bags and other products.
Owns 300 stores in 24 US states.
The CLOTHING INDUSTRY in Albania
Characterized by high use of manual labor.
Needs qualified workers.
In Western Europe and USA Has it had a hard competition with cheaper manufactured goods from China and other Asiatic countries.
Investments in Albania
The clothing industry makes up the most important part of the Albanian industries. Account for about 70 percent of all national exports and provides about 30 percent of jobs.
This sector has a high social value. With only about 8 thousand euro it can provide for a job with one shift and two jobs with two shifts.
Problematic Indicators
During the last 15 years, in Albania has been propagated the idea that foreign investments will come only as a result of cheap labor.
This falls in contrast with the employer’s interests, who desire to increase their profits.
Judging from the experience of other eastern countries, cheap labor is a passing phenomenon.
For this reason, there is a great need to develop other competitive opportunities.
The success of Donianna in the production of shoes for the US is based on the fact that competitors in China cannot manufacture products in small quantities for a specific model.
In Albania you can produce even 5 thousand units for one model, while in China this would not be possible since their minimum is at about 30 thousand units for a model.
Only in Tirana there are about 30 small factories, which have invested 100 or 200 thousand euros each.
Is significant the fact that such amounts are invested in Albania for the opening of a bar or restaurant which in reality does not produce anything.
If such funds would be directed to invest in manufacturing goods, hundreds of jobs could be created to manufacture products destined for exports.
The clothing and shoes industry is confronted today with several negative factors, which we will list according to importance:
First, the heavy fiscal burden from the social security. As an industry that employees a great labor force, social securities make up a good amount of the total cost. This brings about the necessity to employ mainly on Part Time bases.
Second, the low professional level of employees. New employees need to be trained for about 9 months before they can really start.
Third, the overburdening procedure of prepaying Value Added Tax (VAT) for the imported raw material and the prepaid VAT for the sale and purchase between factories. This procedure hinders us in the better management of our manufacturing capacities and fulfillment in time of our clients’ requests.
The obligation to pay the VAT has created many problems, because for us, the bigger factories, hindered the ability to offer more labor to smaller factories.
These later ones find it hard to enter into contract relations with bigger buyers.
This unnecessary procedure, has hindered other newer initiative in this field, as well as the broadening of the activity for smaller already existing factories.
Fourth, is the problem of double-taxation. Currently, there is a 25 percent revenue-tax, 10 percent tax on the dividend, and the employee’s income-tax, of about 15 percent.
Solutions
To develop this industry, there is the need toward:
The lessening and elimination of unnecessary fiscal requirements, which could be accomplished though legislation changes in the law for “Fiscal Procedures”.
The creation and development of professional schools, to provide more experts for the development and products of this industry.
The creation of social security benefits in the fiscal requirements of a company with high employment, which would then lead to a lower final product cost.
The improvement of the industry’s competitiveness in the region and the international markets, as well as the increase of jobs.
The latter will increase the number of insured people which will result in higher budget income from social securities and health.
The removal of multiple-taxation is a type of policy which is supported and implemented in many developed countries, as the way to release funds which can be re-invested. In the US, George Bush’s is following such a policy specifically to remove multiple taxation.
A more concrete policy is being implemented currently in Macedonia, where investors are excluded from the dividend income-tax, if the net profit is re-invested.
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on Jun 13 2005. Filed under Uncategorized.
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