FIP is targeting the Apparel and Footwear manufacturing industries which are among the leading labor-intensive industries in Macedonia. Together they have about 27,800 employees and represent around 35% (398,430,000 Euros) of the overall value of exports from Macedonia. These numbers reflect the obvious significance of the footwear and apparel industries for the entire Macedonian economy

Another global trend of the fashion industries is doing business online. Web-based collaborative technologies provide new ways to eliminate inefficiencies from the soft goods supply chain and reduce time to market. Collaboration also improves customer service by reducing stock-outs, giving consumers what they want when they want it and creating the opportunity for significant results to top line sales and bottom line profits. According to Forrester Research the reason for the B2B rush is rudimentary: economies of scale and competition for best product and price. According to the Gartner Group, the prime markets are plastics, chemicals, automotive, metals, utilities, office supplies, paper, food service, apparel and agriculture. Companies in these areas are all characterized by large inventories, fragmented supply sources and inefficient supply chain processes and can quickly benefit from going online.

Considering the latest trends in the world market, Macedonia is far behind in implementing contemporary ways of doing business and is in a position where its presence in the international market is questionable. The apparel and footwear market is characterized by fierce competition globally, and unless some strategies are implemented immediately, the Macedonian fashion industry will loose its chance to compete internationally. Both industries should focus on export oriented sales and improving their marketing activities.

The increased competitiveness of the industry will generate increased sales and hence stimulate new employment in the sector. New employment is particularly sensitive and important, since employment in the apparel and footwear industry in Macedonia has followed a declining trend in the past three years.

Employment in apparel and footwear industry:

In the following years (2005, 2006 and 2007), employment has been projected to decline by an estimated 5,000 jobs in the apparel industry. It is also projected that employment in the footwear industry will continue the declining trend. Many small apparel and footwear manufacturing companies will not be able to survive the increasingly intensive competition and will be shut down unless new strategies are developed immediately.