China is a new trade horizon for Lithuanian food and textile companies
Lithuanian amber jewelry, beer, bread crisps, unique perfumery products, baby food, diary and many other Lithuanian-made products will be showcased at the upcoming China International Import Expo (CIEE). In total, 18 Lithuanian companies will present their products and services of clothing, accessories, food and beverage products in more than 160 squared meters area on 5-10 November.
Lithuania has accepted the offer to exhibit at CIEE already in January and was the first country in the world to do that. China is enlisted as the priority export market which means the focused government attention for developing opportunities for small and medium size enterprises to seize the part of the Chinese market. This year CIEE exhibition is the most important event in Lithuania’s cooperation with the Chinese business community.
Lithuanian food sector is one of the key sectors of Lithuanian’s economy, accounting for 4.1% of GDP. Being a member of the EU market requires the improvement of safety and quality of products together with the development of food stuffs, the introductions of modern food manufacturing technologies, the implementation of innovations and new technologies into food industry. All these features are main strengths of Lithuanian food and beverages industry. More than 80% of all industry exports is oriented towards the European Union member countries.
At CIEE some well known names will represent the food sector, among them “Vilniaus alus”, the only brewery of beer in the country’s capital city Vilnius which produces all its products with natural ingredients only, “Daumantai”, manufacturing mayonnaises, tomato sauces and ketchups of exceptional quality, “Pieno Žvaigždės“, the biggest and the most up-to-date milk processing company in the Baltic countries, the company of frozen bakery and convenience food “Mantinga”, and one of the biggest bakeries in Lithuania “Gudobele”.
Lithuania is a well-known manufacturer of textiles and apparel articles in the world. Lithuania’s fashion brands produce trendy, comfortable and modern looking clothes. High quality and premium products are offered both for children and their parents. The most important export markets for the domestically produced textiles, clothing and leather industry in 2017 were Germany (15.5%), Denmark (13.6%), The United Kingdom (12.0%), Sweden (10.9%) and Norway (8.0%). Countries in the European Union accounted for 82.7% of exports by the textiles, clothing and leather industry. At CIEE the Lithuanian clothing and textile industry will be represented by modern companies that value strong industry traditions that stretch back several hundred years, yet offer an innovative twist in their production: jersey garment manufacturer “Omniteksas”, creative manufacturer of bed linens, blankets “Decoflux”, “Alviva” supplying original and custom workwear, “Leg Code” brand offering high quality fitness and freestyle clothes and other.
Lithuania’s exports of goods and services now account for 82% of country’s GDP and companies are actively looking for new horizons for exports. With Lithuania’s economy growing steady and the export recording the most rapid growth across Europe, the country’s exporters have been expanding rapidly into new territories, including China. Lithuania’s exporters put a sterling performance in 2017 – exports to China totaled EUR 180 million including nearly EUR 131 million of exports of goods of Lithuanian origin. In the first half of 2018 domestic exports to China increased by another 10% and amounted to EUR 69.6 million. Furniture accounted for the largest proportion of exports, with almost third in total. Other domestically produced exports to China consisted of wood (15.1%), optical, measuring, medical instruments (12.9%) and machinery and mechanical appliances (10.7%).
Interesting facts about Lithuanian food and textile industries:
- Lithuanian beer was awarded at the European Beer Star Awards, World Beer Cup and World Beer Championship
- Lithuanian ice cream got the highest awards for quality, superior taste and innovation at the various international exhibitions
- Lithuanian cheese got the highest awards at the international Cheese Awards Nantwich
- Most of the sewing companies, because of convenient geographical location, flexibility, short production and delivery time switched on a sub-contracting work for the major European and US brands ranking from houte couture to popular chains like Next, Laura Ashley, Hugo Boss, H&M, Mark & Spencer, Nike, Decathlon and others.
- Lithuanian clothing manufacturers produce uniforms and workwear tailored for such institutions like Lithuanian army, fire departments, police etc.
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The economic tension between the US and China could be beneficial for Lithuania, since China has been putting all of its efforts seeking to improve its trade with other states by opening its market to foreign suppliers. This can be proved by the China’s first organised international trade fair “China International Import Expo”, held on 5-10 November, with 18 Lithuanian companies participating in it.
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