Country Overview / Colombia / PART II Interview

Wireframe: The Promise of Colombia

For Colombia's Textiles-Fashion Industry Sustainability Is Not a Plus, but a Must

Spearheading the promotion of the textiles & fashion industry of Colombia is ProColombia, under the Ministry of Trade, Industry and Tourism. The organisation's expansive mandate includes boosting international tourism, foreign investments and non-traditional exports. Carmen Caballero, ProColombia's President, tells texfash.com how the country is working to ramp up its textiles & fashion industry.

Subir Ghosh

2 May 2023

9 minutes

Long Story, Cut Short

The textiles and apparel sectors are among the most dynamic in the Colombian economy since they represent around 7.7% of the industrial GDP.
Its main competitive factors include high quality products and added value, skilled workforce, flexibility, client service, and easy and quick access to US market.
Currently, over 6,000 textile companies in the country generate over 1 million jobs, of which women constitute around 70%.

As Colombia evolves, it looks forward to making the best out of its Promotion Trade Agreement with the United States, always keeping in mind the need to have a level-playing field based on principles of sustainability; for example, it looks forward to reducing inequity, and social, economic, and gender gaps, with the whole purpose being to achieve total peace in Colombia.

Fair Play As Colombia evolves, it looks forward to making the best out of its Promotion Trade Agreement with the United States, always keeping in mind the need to have a level-playing field based on principles of sustainability; for example, it looks forward to reducing inequity, and social, economic, and gender gaps, with the whole purpose being to achieve total peace in Colombia. ProColombia

texfash.com: The subject of re-shoring or even near-shoring for US textile and apparel companies —though nothing new — has been gaining ground since the COVID-19 pandemic because of supply chain bottlenecks caused by distances and the question of costs. What is your understanding of the situation from a country promoting itself as a sourcing hub? What have been the kind of investments and setting up of garment units in Colombia in the last two years?
Carmen Caballero: Undoubtedly, the pandemic, among other global factors, has changed the game’s rules regarding logistics, imports, and export demands worldwide in many industries. If we look closely, we’ll see that, in this Hemisphere, each South American country has been developing its comparative advantages—including us. Let's talk specifically about Colombia and its competitive advantages for being a key supplier of textiles and apparel in the United States.

First, our country has a well-established fashion industry with more than 100 years of experience and a consolidated production chain. In addition, our textiles and apparel sectors are among the most dynamic in the Colombian economy since they represent around 7.7% of the industrial GDP.

Furthermore, Colombia's strategic position makes it an attractive export platform for companies wishing to expand their operations in Latin America. Our diversified product offer is recognised in the United States (and worldwide) for its high quality, favoured by the increased availability of trained human talent.

Having said all this, our main competitive factors are our products' high quality and added value, the skilled workforce, flexibility, client service, and easy and quick access to the US market. Our delivery lead time is 30/45 days compared to 120/150 days from countries on other continents.

The US- Colombia TPA (USCTPA) represents market opportunities for US apparel and footwear manufacturers. How much has this benefitted the Colombian industry? Could you please elaborate?
Carmen Caballero: The United States is Colombia's most important trading partner, primary investor, and main source of inbound tourism, all areas in which ProColombia, the promotion agency of the country, part of the Ministry of Trade, Industry and Tourism, works on. There is no doubt that thanks to this longstanding partnership, Colombian and US companies' businesses have strengthened, creating more and better opportunities for both of our people.

In general terms, it’s worth saying that having a regulatory framework for trading goods and services has been crucial. And over the last decade, the Trade Promotion Agreement has allowed Colombia to diversify its exportable offer and grow in multiple sectors, including the fashion industry, which is a sector that is valued at $7 billion (COP 30 billion Colombian pesos), according to Inexmoda.

Let me give you some additional numbers: back in 2021, exports of the fashion industry showed a positive trend, exceeding expectations and registering a 47% growth in both value and volume and closing the year with the highest export figure in the last five years.

The year 2022 also showed some interesting increasing numbers. Colombian fashion industry exports between January and November 2022 grew 6.5% compared to the same period in 2021, reaching over $962 million. Specifically, if we talk about the United States, exports between January and November 2022 grew by 3.1%, reaching $345 million.

Within this regulatory framework, it’s important to say that many small and medium-sized companies are now exporting. Also, the products we are currently shipping are not commodities; they are products with more added value and even Colombian fashion designer brands.

As Colombia evolves, we look forward to making the best out of our Promotion Trade Agreement with the United States, always keeping in mind the need to have a level-playing field based on principles of sustainability; for example, we are looking forward to reducing inequity, and social, economic, and gender gaps, with our whole purpose being to achieve total peace in Colombia.

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Country:

Colombia

Organisation:

ProColombia

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Subject:

Nearshoring

External Links

ProColombia

The Colombian fashion industry was expected to reach a market size of 30 billion COP pesos by the end of 2022 — a growth that is 9% above 2021, and that shows an upward trend of the textiles-clothing industry, even exceeding pre-pandemic figures, with a 29% growth compared to the end of 2019. This shows the growth rate and dynamism of the sector, both internally and internationally.

On a growth trajectory The Colombian fashion industry was expected to reach a market size of 30 billion COP pesos by the end of 2022 — a growth that is 9% above 2021, and that shows an upward trend of the textiles-clothing industry, even exceeding pre-pandemic figures, with a 29% growth compared to the end of 2019. This shows the growth rate and dynamism of the sector, both internally and internationally. ProColombia

The current trade agreement contains a “yarn-forward” rule of origin provision. So, qualifying textile and apparel products must be produced using US or Colombian yarns and fabrics. Does this mean that the Colombian apparel industry is totally dependent on the US for yarn and fabrics? Could you explain?
Carmen Caballero: Yes. There is a yarn-forward rule of origin provision. There are mechanisms, such as the short supply, that make it possible to comply with the rule of origin if it is shown that the inputs for the product do not have production in either of the two countries. Likewise, we have factories in Colombia that have been in business for over 80 years producing polyester and cotton blends. We also have some companies that are spin-in-vertically integrated. These companies and those that make synthetic fibres comply with the rule of origin to enter the market.

Additionally, it is essential to count on regional origin accumulation, as the possibility was initially contemplated in the Trade Promotion Agreement to be developed eventually.

As I mentioned earlier, considering our longstanding partnership between the fashion industry of the US and Colombia and the fact that Colombia is the number one supplier of girdles to the United States for bathing suits, jeans, and underwear; it is the second Latin American supplier of sportswear to the United States and the third Latin American supplier of home clothing to the United States, we look forward to evolving and making the best of our regulatory framework to benefit our economies and territories.

According to the WITS of the World Bank, the largest export market for Colombian textiles and clothing was the US. The percentage of exports to other countries is relatively small and is mainly confined to countries in the region, including Ecuador, Mexico, Peru, Costa Rica, etc. Does Colombia plan to expand both exports/imports to other continents also?
Carmen Caballero: The United States continues to be our primary commercial market, representing opportunities with sophisticated demand and accounting for almost 40% of our exports of this type of product, followed by the markets of Ecuador and Mexico. By 2023, the goal is to increase exports to these natural markets and open other opportunities with other growing markets in our Latin American neighbours. Europe is also a target for its demand for high-value and sophisticated products.

Could you give us an idea about the textiles and apparel industry in Colombia? How many companies? How big is the domestic market? What is the current level of employment, and how the government plans to boost employment generation in this industry?
Carmen Caballero: Colombia has an internal market of more than 50 million inhabitants, and it is also worth mentioning that Colombia has access to over 50 countries and more than 1.5 billion consumers through its network of regulatory frameworks.

The Colombian fashion industry was expected to reach a market size of 30 billion COP pesos by the end of 2022, according to a study done by the Inexmoda Fashion Observatory in alliance with Raddar and Sectorial—a growth that is 9% above 2021, and that shows an upward trend of the textiles-clothing industry, even exceeding pre-pandemic figures, with a 29% growth compared to the end of 2019. This shows the growth rate and dynamism of the sector, both internally and internationally.

Currently, over 6,000 textile companies in the country generate over 1 million jobs, of which women constitute around 70%. Salaries are frequently above the minimum wage, which by 2023, increased 16%, reaching COP 1,160,000 Colombian pesos.

Colombia’s main selling products in the United States are girdles and control clothes, fabrics, jeans, accessories, jewellery, women’s underwear and swimwear. At ProColombia, we oversee searching, developing, and supporting the monitoring of opportunities for more than 245 Colombian companies of jeanswear, activewear, uniforms, swimwear, underwear, shapewear, and casualwear. It is also worth mentioning that we have innovative products such as shapewear and butt-lifter jeans, bulletproof vests worn by CIA members, sexy and inclusive underwear, and children's dresses for special occasions.

Regarding product sourcing, companies and recognised brands such as Disney, Adidas, Underarmour, Patagonia, and Zumba, among others, have believed in the Colombian fashion industry and have part of their productions in Colombia.

Today, Colombian companies produce garments with recycled components and have policies to recover the marine ecosystem. We also have successful cases of leading companies in sustainable approaches, such as Patagonia, which, aware of the advances in working conditions and sustainable policies, has found a sourcing option in Colombia.

Carmeb Caballero

President

ProColombia

What are the incentives the government is giving to attract investments, both in terms of tax exemptions and facilitating the entire process? And also, how much of foreign direct investment (FDI) has flown into the Colombian textiles/apparel industry?
Carmen Caballero: ProColombia, part of the Ministry of Trade, Industry, and Tourism, provides confidential and free-of-charge accompaniment during all phases of the investment process, including personalised agendas, one-on-one meetings with authorities, possible allies and suppliers, and customised information.

There is no doubt that the textiles segment has high potential. Every year, more and more international firms are turning their eyes to Colombia for input supply processes, maquila*, and direct production, specifically in regions such as Cundinamarca and Antioquia.

[* A maquiladora, or maquila, is a word that refers to factories that are largely duty free and tariff-free. These factories take raw materials and assemble, manufacture, or process them and export the finished product.]

The demand and need for clean production is slowly and steadily growing. This means production needs to meet specific environmental and labour standards and benchmarks. How is Colombia faring on this? What is the average wage of a garment worker, and how does this compare with other countries?
Carmen Caballero: Sustainability policies are currently not a plus in the Colombian fashion industry; they are a must.

We are happy to say that according to the Environmental Performance Index [of Yale University], Colombia ranks first in Latin America in applying ethical practices and sustainable development, second in Social Responsibility, and second Latin American country overall in the Environmental Performance Index. We have an industry that is already renowned for the use of ecological, recycled, natural and degradable materials, as well as eco-friendly product development, the promotion of responsible purchasing criteria, the decrease in the use of chemicals in the manufacturing process, and respect for the human and labour rights of workers.

Today, Colombian companies produce garments with recycled components and have policies to recover the marine ecosystem. We also have successful cases of leading companies in sustainable approaches, such as Patagonia, which, aware of the advances in working conditions and sustainable policies, has found a sourcing option in Colombia.

Colombia is high on fashion. Is ProColombia also promoting Colombian fashion designers and fashion weeks? Could you please elaborate?
Carmen Caballero: Yes! As a government agency, we promote sourcing and our brands and designers in different markets.

We have two trade events in Colombia that are key for promoting our fashion industry. One took place at the end of January 2023 in Medellin and was called Colombiatex. We took 11 American buyers to this B2B event, where they met the Colombian offer in terms of sportswear, swimwear, and underwear.

The other event we highly promote takes place in July, also in Medellin, and is called Colombiamoda, the Fashion Week in Colombia. Other critical events for promoting the fashion industry in Colombia include the International Footwear & Leather Show, Bogotá Fashion Week, and Expoartesanías.

Throughout the year, we also support Colombian companies participating in trade shows across the United States, such as Magic, Curve, COTERIE, Play Time, Swim show, and Cabana. For example, during last Miami’s Swimweek, around 50 Colombian companies went to the sunshine state to show their differentiated offer.

Finally, ProColombia organises an every-year Business Matchmaking Forum. Our last forum was in Barranquilla at the end of March 2023. This was the perfect opportunity for international buyers to meet with Colombian exporters, make business deals and corroborate why Colombia is a reliable, competitive, and efficient fashion supplier for their sourcing needs.

Colombia has two trade events that are key to promoting their fashion industry. Colombiatex in 2023 January saw 11 American buyers visit this B2B show, where they met the Colombian offer in terms of sportswear, swimwear, and underwear.

B2B Shows Colombia has two trade events that are key to promoting their fashion industry. Colombiatex in 2023 January saw 11 American buyers visit this B2B show, where they met the Colombian offer in terms of sportswear, swimwear, and underwear. Colombiamoda, the Fashion Week in Colombia, will be held in July. Other events include the International Footwear & Leather Show, Bogotá Fashion Week, and Expoartesanías. ProColombia

Colombian Companies at Magic New York 2023

Quite a few Colombian companies participated at the Magic trade events in the US earlier this year.

Thumb-nail sketches of the participants:

AMBEH JEWELRY participated in both Magic Las Vegas and New York. Ana María Becerra, the Creative Director of the company, said: “We want to bring the best face of Colombia to show the laborious hands of our collaborators — mothers, head of households, who make it possible to obtain these unique pieces made by hand at our workshops located in different cities across the country."
STIVALI is a brand that works with materials to ensure as little adverse environmental impact as possible. They try with each of their designs to ease their carbon footprint. They use genuine leathers, which are natural products, so that they have a quicker biodegradable process. Additionally, they use entirely biodegradable materials as their wrapping packaging.
MPM is a brand from Barranquilla that has a socially responsible component. Their team comprises twenty-six employees, 100% female heads of households, who are formally employed. Their products are designed and manufactured in Colombia using natural linen material, creating unique pieces that mix the cuts' simplicity with artistic details.
SPÍRITO is interested in environmental responsibility. "We are committed to minimising our impact on the environment and promoting policies that positively impact the quality of life of all our stakeholders," said Jennifer Echeverri, the Commercial Director. With clothing inspired by nature and vibrant colours in their prints, the company also supports women, having them work as part of the team and making it their mission to empower women with their designs.
SEASONAL has an interest in being an environmentally responsible brand. Therefore, it has a “made to order” system avoiding waste and high production quantities that are harmful to the environment.
ALMA SLEEPWEAR participated for the second time at the NY event. It has eight women working for the company. Their collection includes original flower and animal prints, both colourful and classic, to suit all preferences.

Subir Ghosh

SUBIR GHOSH is a Kolkata-based independent journalist-writer-researcher who writes about environment, corruption, crony capitalism, conflict, wildlife, and cinema. He is the author of two books, and has co-authored two more with others. He writes, edits, reports and designs. He is also a professionally trained and qualified photographer.

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