Micromerchandising: The Next Generation

May 2008

2008 management briefing

Middle East denim market review

Page i

Middle East denim market review

Management briefing May 2008

By International News Services

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Contents

Contents Single-user licence edition............................................................................................................. ii Copyright statement .................................................................................................................. ii Incredible ROI for your budget – single and multi-user licences............................................... ii just-style.com membership .......................................................................................................iii Contents.......................................................................................................................................... iv About the authors ........................................................................................................................... v The Gulf............................................................................................................................................ 1 Turkey .............................................................................................................................................. 5 Syria ................................................................................................................................................. 8 Lebanon ......................................................................................................................................... 12 Israel............................................................................................................................................... 15

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About the authors

About the authors International News Services’ writers for this briefing are Paul Cochrane, in Beirut; and Helena Flusfelder, in Jerusalem.

International News Services is a ten-year-old international news agency, serving around 150 specialist publications, with more than 40 experienced writers based around the world. Copy is edited centrally to a high standard, providing smaller titles with an extensive feed of bespoke foreign news and features. It focuses especially on the commercial impact of globalisation and the growth in power and authority of international organisations. The agency's writers explain the regulations and laws flowing from these often remote and usually complex institutions, such as the European Union, the World Trade Organization and United Nations agencies. For more information, see www.internationalnewsservices.com

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Page 1

The Gulf

The Gulf The denim sector in the Middle East is as diverse as it is fragmented, with strong demand in the Gulf and Israel for major brand names and the latest trends, while in the less economically developed parts of the Levant international brands are of less importance than style.

The sector has developed significantly over the past decade as denim wear, and jeans in particular, have become as much a part of people’s wardrobe as in Europe or the Americas.

Driving consumer habits towards buying denim has been the rise of advertising and pan-Arab media in the region, which has increased the exposure of consumers to western fashion trends, which is increasingly regarded as the clothing style to adopt, particularly among young people. Television channels such as Fashion TV Arabia are widely watched in the region, showcasing the latest apparel modes – both western and Arab – while lifestyle and fashion magazines are equally popular.

Denim sales have also been fuelled by recent significant changes to the Middle East retail sector, with malls springing up throughout the region and multinational retailers moving in to establish a presence in both its emerging and wealthy markets. This has resulted in a greater emphasis on advertising and marketing by international retailers such as Vero Moda, Topshop and Aishti to not only introduce denim brands but also market seasonal trends through multi-media campaigns involving billboards, magazines, radio and television.

In the Levant and Turkey the internationalisation of the jeans market has pushed local manufacturers and retailers to adopt aggressive marketing and branding strategies to retain market share, as has been the case, for instance, of Turkish brands Colins, Redstar and Mavi, and DX in Lebanon.

Equally, local manufacturers are producing jeans of similar quality and style as the major brands but at a fraction of the cost, which is more suited to many Middle Eastern consumers’ budgets. They are also attracting sales by

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The Gulf

releasing a fast turnover of trends and styles, such as Boomer Jeans and Hanaa Saleeba in Syria.

The region’s demographics are also playing their part in fuelling denim demand. According to the World Bank, some 60% of the Arab Middle East’s population is under 30 years old, a prime market for denim clothing retailers and a reason for establishing strong brand presence.

But while such indicators point to a strong future for denim manufacturers and retailers in the region, economic development in many Arab countries is unequal. Lebanon, Syria, Egypt, and Jordan suffer from high unemployment figures and low income levels that negate the required disposable income levels for higher consumption. The looming spectre of political instability is another factor that could impact on the growth of the sector.

Gross national income (GNI) per capita is equally low in the Middle East (defined in this briefing as the Arab Middle East and North Africa, plus Israel and Turkey), being US$7,000 according to the World Bank, even on a purchasing power parity (PPP) level, with living standards being hit over the last year by rising food and fuel costs. Nonetheless, despite such mixed economic signals, the region is culturally very attuned to the fashion world, said Elie Bejjani, commercial officer at Lebanese brand stores Aishti.

And despite low incomes, many people, particularly the younger sectors of society, are willing to spend money on their appearance, which is generally clean-cut for men and contemporary fashion for women, according to Charles Arbid, president of the Lebanese Franchise Association.

And although the region is retaining many of its traditions, including clothing, there is currently a mix of styles, with Muslim women who wear the hijab and long overcoats or abayas often wearing jeans underneath. Men are also moving away from a more conservative look, particularly outside the workplace, towards jeans.

While the Levant, Syria in particular, and Turkey are manufacturing denim and have stronger local brands – such as Colins and Mavi in Turkey and Hanaa Saliba in Syria – the wealthier Gulf countries are another story. Manufacturing is minimal due to higher wage costs and the region’s emphasis on service, finance and energy-orientated economies, but with higher income levels retail

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The Gulf

sales are booming. Textile sales in the Gulf Cooperation Council (GCC) countries of Qatar, Bahrain, Saudi Arabia, Kuwait, Oman and the United Arab Emirates (UAE) is estimated to be worth US$12bn, according to Motexha, organiser of an annual textile and fashion exhibition in Dubai in the UAE.

Indeed, the Emirate of Dubai is at the forefront of retail growth in the GCC. It is home to five of the world’s seven largest shopping malls and accounts for 30% of the GCC region’s total retail space, according to Middle East consultancy firm Retail International.

All major jeans brands – including Diesel, Levi’s, Pepe Jeans, Tommy Hilfiger, Marlboro Classics, Guess, and Gap – are available in the UAE, as elsewhere in the Gulf, namely Bahrain, Kuwait, Qatar and Saudi Arabia.

“There are about 20 major brands and many more of smaller stature, either Southeast Asian or Asian brands, or even local Middle East brands,” said Sunil Umapathy, marketing manager for Splash, part of the Landmark Retail group in the UAE, which has 70 stores in the GCC distributing Lee Cooper and other international brands.

Mid-range jeans are typically available in major European retailers in the Gulf, such as Topshop, H&M, Next, Zara, Mango, Bershka, Stradivarius, Jack & Jones and Vero Moda. High-end jean brands, such as Rock & Republic, Earnest Sewn, Citizens of Humanity, Seven and True Religion, are sold through outlets such as Saks Fifth Avenue, Harvey Nichols, S*uce, Aizone and Ounass.

However, despite strong demand in the GCC for jeans, retailers say the region is difficult to market outside of the mid-range to luxury denim sector. “The Gulf is a good market but difficult at the same time. Dubai is a different market from Saudi Arabia, and Saudi is different from Kuwait. Dubai is also a mixture of cultures,” said Mohamad El Hajj, manager of retailer Moustache in Lebanon, which distributes its own brand – DX – and sells Turkish brand CROM and German brands Tom Tailor and Solid throughout the region.

With the Gulf countries made up of large expatriate populations – in Dubai an estimated 75% of the population, 3% of which are Westerners – the jeans market is consequently fragmented between the expatriate population and locals.

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The Gulf

“The expat population from Asia are moderate, the expatriate population from Western countries go for more clean but quality looks, whereas the local Gulf customers are the ones who experiment,” said Umapathy. “Denim wear has come to its experimental best, from extreme skinny, carrot legs, totally distressed, metal detailing, intentional seams and misplaced darts to completely clean engineered looks,” he added. “The cross-utilisation of elements in denim is the rage now.”

Customers typically buy four to six pairs of jeans a year, he said, ranging in price from AED100 (US$27) for classic denims to AED170 (US$40) for treated denim, although prices for luxury brands are the European equivalent.

In the ultra-competitive Gulf market, Umapathy said Splash brings out 500-600 styles of denim per season for its ten collections a year.

“Brand value exists everywhere, especially in the Emirates where most of the popular brands sit under one roof, so you cannot escape the competition. Nonetheless all customers are looking out for ingenuity and innovation in their denims, so styling is the first pull,” said Umapathy.

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Turkey

Turkey Turkey is the region’s denim powerhouse, being a key cotton producer, denim manufacturer and exporter, particularly to its neighbours in the European Union (EU), Russia and southwards in the Middle East.

Since the mid-1980s when international brands started sourcing product from Turkey, the sector has rapidly expanded as domestic and external demand has risen, with the value of Turkey’s denim sector estimated at US$1.9bn in 2006, according to the Turkish Clothing Manufacturers Association (TCMA).

The sector experienced 18% growth in 2004-2005, but saw growth drop to 7% in 2005-2006 due to a decline in exports, which decreased by 8.6%, according to the TCMA, following a surge in EU imports from China. But with a rise in the value of the euro against the Turkish lira, in addition to EU and Turkish quotas on Chinese imports, the sector has since rebounded, producing 195m m2 of denim fabric in 2007, according to the TCMA. An estimated 52% of this amount was exported.

Turkey’s denim sector took off in the early 1990s when the country went beyond supplying its traditional markets in Germany by capitalising on the post-communist opening of the former Soviet republics that neighbour Turkey, such as Armenia, Azerbaijan, Georgia and ethnically related central Asian republics such as Kazakhstan, Turkmenistan and the Kyrgyz Republic. Turkish producers also expanded their presence in other international markets. Central to this development was the introduction of international brands such as Levi’s, which opened manufacturing facilities in cooperation with local manufacturers in 1985. Other brands also started sourcing from Turkey, such as Italy’s Rifle, Diesel, Armani and Miss Sixty, Germany’s Mustang and Hugo Boss, the UK’s Next, Spain’s Zara, Sweden’s H & M, and American brands Lee, Wrangler, Polo, Tommy, Guess, Gap, Mexx and DKNY.

Such developments prompted contract manufacturers to launch brands of their own, utilising the techniques and understanding of international consumer fashion patterns picked up from established international labels. There are now an estimated 50 Turkish brands, according to TCMA, with eight leaders: Mavi, Colins, Rodi, Lotus, LTB, Redstar, Picaldi and Collezione.

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Turkey

Notably, the firms behind the leading brands also manufacture for the internationals,

with

the

Eroglu

Group,

which

owns

Colin’s

Jeans,

manufacturing Tommy Hilfiger, Rodi Jeans manufacturing for Lacoste, and Lotus Jeans manufacturing for Ralph Lauren’s Polo brand.

Brands such as Colin’s have since expanded internationally – it is now available at 384 domestic and 3,000 overseas sales points worldwide. Late last year, Colin’s announced it is to open 40 of its own stores in Malaysia, as well as in China and India, due to a decline in exports to the EU market that has forced the company to look for new markets.

Mavi Jeans is also expanding internationally, reflected last year when the company signed up Italian photographer Oliviero Toscani, the man behind Benetton’s 1982-2000 campaigns, to handle its global advertising campaign. In 1994, Mavi Jeans sold 1.695m pairs a year, surging to 7m by 2005, with some 60% sold in the Turkish market. The remainder is primarily exported to Europe and the US, where its jeans sell for US$60-200. Mavi said that by 2010, the company plans to have a turnover of US$300m through sales in 89 countries.

Domestically, jeans sell for US$25-$95 a pair, according to TCMA. “While we have been seeing skinny-fits for men in Europe, straight fit, slim cut, and boot cuts are the most popular in Turkey,” said TCMA. “For women, high-waisted skinny and boot cut are the most popular, and more conservative regular fits are the best sellers. The main direction for jeans is the clean look, a fresh take on vintage garments, and the worn-in look. This has been directly inspired by how people have been naturally wearing in their clean jeans,” the association added, in a note to just-style.

International brands have still retained a presence in the market, with 36% of Calvin Klein jeanswear made in Turkey. Other more expensive denim brands, such as DKNY Jeans, which recently opened its first store in Istanbul, are hoping to capitalise on the growth of the high-end clothes market in Turkey.

Levi’s is also expanding its presence in Turkey, increasing the number of stores last year from 25 to 40, and aims to have 50 in 2008. Turkey is now the base for Levi’s in the region after splitting its Middle East and Russian operations from its Asian base in Singapore during 2007, investing US$4m to convert its Corlu factory into a product development centre, the company’s first in Europe.

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Turkey

But while the Turkish denim sector is still enjoying strong growth, production is in decline due to higher production costs, according to industry publications, such as Tekstil & Teknik. Turkish manufacturers are instead outsourcing production to neighbouring Syria, where wages are significantly lower, cotton is subsidised and there is a free trade agreement between the two countries. Egypt has also become a textile and denim hub for Turkish firms, utilising low wages and qualified industrial zones that grant duty-free access to the US market.

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Syria

Syria Syria’s economy and society are undergoing major changes in the wake of the Government’s liberalising economic reforms and free trade agreements, exposing it to the pressure of overseas companies that are keen to exploit globalisation, namely in media and telecommunications, branding and advertising. Such developments are having a positive effect on the country’s denim manufacturers and retailers as domestic demand grows and exports increase.

“In the last five years we’ve seen a lot of growth and a big difference in the styles,” said Basel Shafik Zaghlouleh, owner and manager of brands Boomer, Blue Shark, Carakal and Wanted, which are manufactured by a company carrying his name. “There are now over 50% more brands, largely because it is cheaper than before and there are a lot of factories. Style has also changed. Before it was classic and now we sell all styles which are different every six months, from low to stretch to wide.”

Syria has long been one of the region’s major cotton and textile producers and manufacturers, with the textile sector accounting for 15% of the labour force, 30% of industrial GDP and 10% of exports according to Government of Syria statistics.

But with Syria only opening up since 2001, the country has been relatively late – compared to other regional competitors – in capitalising on its low-cost labour force, cotton fields and proximity to Europe. Syria’s exports to Europe of garments, including denim, are low at some EUR100m a year, according to the financial publication Syria Report.

Although the denim manufacturing sector has expanded, and exports are on the increase, the country’s denim sector has been slow in its capacity to switch to market-orientated approaches and there is a lack of understanding of consumer

patterns

in

the

European

manufacturers speaking to just-style.

© 2008 All content copyright Aroq Ltd. All rights reserved.

fashion

market,

according

to

Page 9

Syria

However, the country’s declining foreign currency earnings from its oil sector has encouraged the traditionally leftist government to amend its five year plans to further liberalise the economy as well as encourage diversification.

The Syrian government has consequently increased ginning and spinning capacity by investing in new mills and garment manufacturing, such as the Hajjar National Spinning Company in the industrial city of Adra, and has brought the price of cotton yarn in line with world market prices. Other institutions are also involved in developing the sector, with the country’s Syrian-European Business Centre helping to upgrade and boost the competitiveness of textile manufacturers, while the Italian Institute for Industrial Promotion in Aleppo provides consultancy services. A French fashion school, ESMOD, is also training Syrian designers.

With changes to the investment laws, the Syrian clothing sector has become less regulated, and the Greater Arab Free Trade Area (GAFTA), which came into effect in 2005, has allowed garments manufactured in and imported from other Arab countries to enter the formerly state-controlled and protected retail sector.

As a result, because of their Middle East manufacturing bases, some international denim brands and retailers have entered the country, such as Benetton, Miss Sixty, Naf Naf and Ted Lapidus, but clothes and jeans are primarily made locally to keep prices in line with the country’s low-income levels.

Luxury brands, which were previously unavailable and usually bought in neighbouring Lebanon, have only recently become available at select boutique stores, such as at the Lebanese brand-store Aishti and Aizone located at the Four Seasons Hotel in Damascus.

The opening up of Syria’s economy has also been a boon for exporters. Ahmed Rihawi, a denim manufacturer and wholesaler in Aleppo, the country’s primary industrial base, said his sales were up 35% last year. “I sell some 500,000 m2 of denim fabric per month, with the excess sold to Pakistan,” he said. Manufacturing more than 500 styles of jeans, priced at approximately US$4.50 a pair, Rihawi sells to Europe, Turkey, the Gulf and India. With employees paid up to US$150 a month, Rihawi said work was of a better standard than in Egypt, where wages are as low as US$60 a month.

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Syria

As a result, several Turkish denim manufacturers have relocated operations to Aleppo, said Rihawi, taking advantage of the city’s proximity to Turkey and the existence of a free trade agreement between the two countries.

According to Shadi Tamer, manager of Hanna Saliba Jeans, there are up to 1,000 denim factories in Syria, ranging from small operations with just 20 sewing machines to over 200. Zaghlouleh added that only around 50 “are good factories”, which primarily export to Europe.

Cotton for Syrian-made denim typically comes from Syria, but also further afield, such as from Pakistan. “All colouring and dying is done here in Syria,” said Tamer. Registering 20% growth for his company last year, Tamer said his best export markets were the Gulf, Egypt and Morocco, while Libya accounted for 40% of exports. “We sell over 100 types of blue jeans, and have 200 different styles, differentiated by stitching,” he said.

With few people able to afford brand names, and consumerism still in its infancy in Syria, “style is more important than the brand,” said Zaghlouleh. Indeed, jeans sell for as little as US$4 on the street to US$10-20 in retail stores.

Advertising and media are having an impact however, with Diesel the most widely known (and most widely copied) international brand sold in Syria, according to Zaghlouleh. Even for independent brands, designs are generally based on the European style, and then re-worked locally. Like other markets there is a differentiation between age and gender over style preference.

“15-to-30-year-olds like funky designs, and over-30s prefer classic designs, such as old-fashioned wide bottomed jeans, not thin or boot cut,” said Tamer. “Syrians like stitching and designs, especially women, but not Arabic writing on jeans as people prefer English,” he added.

Retailers estimate some 50% of women wear jeans, with the remainder typically more religious or conservative, preferring long skirts.

Mohamed Helou, owner of Style Fashion Retail, which sells some 12,000 pairs of jeans a year, said Syrians were avid jeans purchasers. “Many young women buy one pair a month, or even one a week, to keep in fashion,” he said.

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Syria

Zaghlouleh said it was typical for Syrians to buy between three to four pairs a year; although for young people, 12-15 pairs a year was the norm.

But despite strong demand in recent years for denim, inflationary pressure, rising fuel prices and low salaries are impacting domestic sales. “The economic situation is having an effect on sales, it’s a problem as people are increasingly only buying necessities,” said Helou.

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Lebanon

Lebanon Beirut is struggling to hold on to its position as the fashion capital of the Middle East due to political instability and the rising economic star of Dubai and the Gulf. Up until the Israel-Hezbollah war in 2006, international and domestic retailers and brands would market heavily in Lebanon during the summer months, when over 1m tourists, particularly from the Gulf, would visit.

The latest styles of denim and other fashions would be showcased on Lebanese television and through more traditional marketing campaigns, and trends would then be imitated elsewhere in the region.

But with the country in a recession, and tourist figures down, retailers are struggling to generate sales, despite the Lebanese penchant for wearing the latest fashions. This is having a particular effect on retailers that have etched out a niche selling brands that were relatively unknown outside of the Middle East but became established due to being known in Beirut – brands such as Crom, Daniela Tobler (DT), Even and Engine. Such mid-range jeans sell for US$33-100 a pair.

“Lebanon is a difficult market for jeans as Lebanese want the brand and the latest style, and I thought Crom – which I introduced from Turkey 15 years ago – wouldn’t do well, as it’s not a big brand,” said Mohamad El Hajj, manager of retail outlet Moustache, which distributes its own brand DX, and sells Tom Tailor, Free So and Germany’s Solid. “I tried to build up the brand and created models with specific details specialised for the market. I also offered to repair jeans free of charge,” he added.

But although Hajj and others were able to establish a market niche for jeans that was relatively unique to Lebanon, the political and economic situation has forced companies to aggressively advertise.

“There are lots of brands and lots of publicity, but many brands are overpriced as [they are] spending so much on promotion,” said Charles Arbid, manager of Lebanese clothing retailer Rectangle Jaune and president of the Lebanese Franchise Association.

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Lebanon

Indeed, Lebanese children and women’s jeanswear company O-Kash and Kash reported a 70% drop in sales since July 2006, and has since launched a billboard campaign to boost sales from the current 20,000 pairs a year. Other brands such as Daniela Tobler have advertised heavily on Lebanese television and by holding fashion-walk events.

Due to the unstable political situation, Hajj said he was selling jeans at 70% off, or two for the price of one, following a 25% drop in sales over the past year. “When a bomb [explosion] happens the market is down for two to four days, as people are stressed and don’t want to buy anything,” he said.

Retailers estimate consumers buy two to three pairs of jeans a season. Every season Hajj said he sells more than 100 styles of jeans based on a new concept or trend, shifting an estimated 50,000 pairs a year at seven stores. “Every season styles change as jeans are disposable. This year is basic with plain stitching, but last year it was stitching, and before that destroyed or “dirty” jeans,” he added.

Style has typically followed Europe, in both cut and regarding what population segments are wearing what jeans. “Four years ago, denim started to be in fashion in Lebanon, and is no longer seen as a utility, but with added value. As a fashion item, sales of jeans are up,” said Arbid. “Men are more classically dressed, and look for quality over design,” he added.

Elie Bejjani, commercial officer at Lebanese brand stores Aishti and Aizone, agreed with Arbid. “In Europe there is a different mentality, using narrow and fitted jeans, but the Lebanese have a more conservative look: boot cut and regular. Also, American cuts don’t sell well here, such as the loose and baggy fit,” he said. Jeans are also popular year round. “Lebanese men don’t like shorts, linen or cotton trousers, so wear jeans, even in the summer,” Bejjani added.

At an average price of US$190 a pair, with some 70% of sales to women of the 33,000 pairs sold a year, Aishti sells brands Gas, Seven, J & Company, True Religion, Diesel, Rock & Republic, Armani Jeans, G-star and Citizens of Humanity. Levi’s are banned in Lebanon due to the company’s alleged financial ties to Israel, an issue that remains the hottest political potato in a country riven with discord.

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Lebanon

Lebanese women prefer European style cuts, said Hajj, although among young women skin-tight, or ‘spray on’, jeans are also popular. “A lot of times employees help women get the jeans on,” he said.

He added that the most popular brand was Diesel, followed by True Religion, which was then reflected in the styles offered by retailers and manufacturers. “Everyone copies the top brand, like Diesel, or last year G Star. I hope to do a lot of marketing to shift to the American brands away from Italian, as costs are in dollars not euros,” Hajj said, in reference to the Lebanese lira being fixed to the ailing US dollar.

While high-end jeans not made in Lebanon are imported directly from multinational retailers, low- to mid-level denim is typically imported from Turkey. “Turkey has more professionalism than Syria, for dyeing and everything else, but our designs are done here in Lebanon,” said Hajj.

Meanwhile, fakes are an issue in Lebanon, said Arbid, compounded by dumping from Asian countries since the World Trade Organization’s (WTO) Multi-Fibre Arrangement ended in 2005, abolishing restricted import quotas amongst WTO members, which these days includes Lebanon.

The Lebanese textile sector has shrunk in the last few years due to higher labour costs and a reduction in customs protection for textiles to 5%, but better quality jeans are still manufactured. “We have the technique, of washing, and especially at the finishing level,” said Arbid. “This is a new generation for denim, to create a leisurely and casual product in a sophisticated way, and one that cannot be copied easily.”

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Page 15

Israel

Israel Zvika Lieberman, director of the textile and fashion branch of the Israel Manufacturers’ Association, says that as of this year, there is largely “no manufacturing, just retail of denim in Israel”. The Israeli-owned Polgat Jeans factory, in Kiryat Gat, closed three months ago, leaving the country without a denim producer.

“No one is making denim here. There are a few small manufacturers buying denim from importers. Most of the denim is imported from the Far East, especially China, the ‘Silicon Valley’ of textiles in the world,” Lieberman said.

Erez Atzmon, a freelance consultant to the Israel Manufacturers’ Association, explained that jeans are not sewn in Israel because it is too expensive, although some cutting still takes place there. Generally, he said, “the material is brought from the far East, the jeans are designed in Israel and the production [cutting and sewing] is often done in factories in the West Bank, especially in Nablus, or in Jordan in the free trade zone [following the peace treaty between Jordan and Israel in 1994]. The completed denim jeans or other pieces of clothing are then delivered to Israel – daily.”

Gidi Goldfinger, CEO of Concept Shivuk, which operates the Lee Cooper fashion retail chain in Israel, said the leading brands of jeans in Israel are Lee Cooper, with 38% of the Israeli market in 2007; Crocker (a local brand) with 12%, Diesel with 10%, Lee and Levi’s with 5% each, with the remaining companies – Angler (Wrangler), PepeJeans and others – holding less than 2% each. Of this market, 98% of the denim sold consists of jeans trousers, (in 2007) with just small amounts of denim jackets and other items, according to Goldfinger. He estimated the turnover of these brands’ sales in Israel at US$150m.

“We buy the fabric in Japan and South Korea, manufacture the denim in China, Turkey and Morocco, and cut, sew and wash [the jeans] in China. The main issue is the professionalism of the laundering [of the jeans]. The professional aim is to achieve the effect of the jeans looking old.” Lee Cooper imports denim every month, owns licences in Israel and the Far East and distributes it to its 58 shops in Eastern Europe. The company owns 45 shops

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Israel

in Israel and sells to wholesalers, including 80 boutiques and shops. Lee Cooper’s turnover is US$85m a year.

Itzhak Shechter, also a freelance consultant to the Israel Manufacturers’ Association, said that in the 1990’s, there were many more Israeli companies manufacturing denim jeans – Leegat, Kitan, Golf and Polgat Jeans. The designing was done in the country too, with sewing carried out in Arab and Druze villages in Galilee in northern Israel.

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