Czech brocade becomes hit in western Africa---Czech company Veba

Czech brocade becomes hit in western Africa
http://www.cbsnews.com/8301-505245_162-57535933/czech-brocade-becomes-hit-in-western-africa/
While the textile industry in Europe is under pressure from low-cost competition in Asia, the Czech company Veba is working around the clock to meet demand for the high-quality brocade it ships to Muslims and elites in western Africa.

The Czech region where it is based has a centuries-long textile tradition. African brocade has been made here since the 1960s, but it was of average quality and was delivered to producers in western Europe.
About 10 years ago, Veba's management came up with a new strategy to significantly improve the quality and deliver the brocade, made of 100 percent cotton, directly to Africa, where Veba has distribution partners.
Business has been booming in recent years and this year's net profit is expected to reach 200-300 million koruna ($10.4-15.7 million), up from 160 million ($8.8 million) in 2011 and 105 million ($5.5 million) in 2010.
Some 90 percent of Veba's output is the brocade for African markets.
The Czech economy has been stuck in recession, but Veba's automated looms are busy around the clock to meet the growing appetite for the brocade in its major markets in Mali, Senegal, Ivory Coast, Mauretania, Burkina Faso, Guinea and Nigeria.
"If in the past it was a material which was used for extraordinary events, be it religious, community or family, then in the last few years it has been becoming the clothing for everyday use," Novak said. "And the consumption is on the rise."
Up to 10 meters of the Czech white brocade are used for a traditional costume worn by rich Muslim pilgrims who travel to Mecca, in Saudi Arabia, to perform Hajj, the holy pilgrimage, Novak said. A meter costs about $13 in African stores.
Veba's customers belong to the well off, including the business elite, politicians and artists.
"When they want something extraordinary, they have to pay for it," Novak said.
Besides the quality, the company's success has also been due to the variety of brocade it offers and its flexibility in meeting customer demands in various countries, where business can often be difficult.

To further boost sales despite such conflicts, Veba has recently entered new markets in eastern Africa, and is planning expansion in other Muslim nations outside the continent, including Azerbaijan and even Iran. It invested $10 million last year and another $15.6 million this year to increase its weaving capacity and has created 100 new jobs.

Home appliances from Chinese electronics producer Changhong have become popular with Madagascans for the company's after-sale service, while Hisense, another Chinese electronics brand, is one of the top ten brands among South Africans in terms of market share, according to Luo.
http://www.chinadaily.com.cn/business/2012-10/20/content_15834017.htm
The textiles are of a better quality than those shipped in from China and have become a favorite among Africa's Mecca-bound pilgrims.


Professor and author Deborah Brautigam discusses her new book "The Dragons Gift: The Real Story of China in Africa"
http://youtu.be/BZfDYnOLw5w