First Leather Processing/Footwear Cluster Meeting

September 8, 2004

Overview

Following the efforts of ACIT in identifying the potentials for clustering in three sectors, the first cluster meeting with the businesses and other private and public organizations operating in the leather/shoes industry, took place on September 8, 2004. The meeting took place in collaboration with EDEM and according to the clustering methodology employed by EDEM.

The objective

The objective of the meeting was to present the concepts of competitiveness and cluster to the leather/shoes actors currently operating and introduce ACIT and EDEM as facilitators providing assistance in the clustering process of the businesses.

Outcomes

The meeting succeeded to make aware the businesses on current and future challenges faced in the global market of leather/shoes. It presented the competitiveness dimensions and how they relate to the Albanian context. The participants learned on the cluster concept, its benefits, its structure and cases in the world and agreed on the cluster approach as a mean toward competitiveness and development.

Participants

ACIT has invited in this meeting 60 private and public organizations directly or indirectly involved in the leather/shoes production. The participants represent the following groups:

• shoe producers
• tanneries
• stylists
• university representatives
• ministries and research institutes
• civil society representatives
  

Agenda of the meeting

• Welcoming remarks and presentation of ISB and ACIT Proff.Genc Ruli- President of ISB
• A Greeting - from Mr. Son Nguyen from USAID Mission
• “Competitiveness and the ability to compete” Selami Xhepa-Research Manager of ACIT
• “Clustering- a way to face global challenges” Neritana Begaj-Cluster Manager/RC Coordinator, ACIT
• “Cluster experiences in Albania” Tom Rulland- Director of EDEM
• Questions and discussions Selami Xhepa -Research Manager, ACIT
  Neritana Begaj-Cluster Manager/RC Coordinator, ACIT

Discussions held

A specific session for discussions was designed so that the businesses could express their perceptions on the competitive issues and trends presented during the speeches of experts. During this session, many representatives from the business and research institutes supported the initiative. Main issues mentioned in their discussions, were focused on:

• the same problems faced by all producers, independently by their size, which make imperative their collaboration in order to face the challenges they are all going through
• awareness on the rising global competition and their need on market information and more aggressive strategies and best practices
• awareness on the benefits of shifting to value added production, rather than remaining in the specific low labor cost operations
• lack of government policies on the certain aspects of this industry’s development
• opportunities for sales in domestic and regional markets and the need for product diversity
• lack of government control on implementation of competition and fiscal regulations
• government duties on supply of basic services and utilities for business operation
• need for technological and marketing improvements along the whole value added chain
• emergent need for developing management and marketing skills for managers
• need for availability of accessories and raw materials required for the production of leather products
• need for training centers for employees in the sector
• etc.

Further steps

The participants expressed their commitment to attend and get the benefits of the clustering practice. They acknowledged ACIT and EDEM assistance in this process. ACIT will design preliminary steps, together with experts who will be invited by EDEM in areas identified as critical, as follows:

• marketing and product development
• environmental competitiveness

Scope of work is already designed for the first expert, who will visit Albania in the beginning of October. We expect that after getting to know with businesses in premises and through ACIT work, a second cluster meeting might take place in mid-October, aiming the SWOT analysis of the sector, identification of problems and the creation of small work groups who will latter on proceed themselves with action plan.

The second expert will be assigned for tasks relating to Best Environment Practices and assistance in dialogue on new law on pollution norms. SOW of him is to be designed in collaboration with EDEM.

In the meantime, ACIT will keep cluster members informed on new activities and developments in the sector. An informative brochure on trade fairs in the sector will be produced in collaboration with GTZ. Also, specific further contacts will be kept with the Ministry of Environment on legal developments and business contribution in them.

ACIT will closely work with EDEM in providing facilitation to the cluster and in providing assistance to the cluster.

Questionnaire results

Two questionnaires were distributed to participants with the intention to measure their satisfaction level from the meeting, as well as to get some basic data on their profile.
Based on the questionnaire, the following were the results:

Media coverage

Press release was distributed though EDEM Media Specialists. The following are the medias publishing press release of this activity, as reported by EDEM:

• ATSH
• “Business” Newspaper
• “Ekonomia”
• Top Channel reportage
• Monitor Magazine