Political

Belgium has been ruled by a highly liberal government since May 2014 and until May 2019.

Therefore, we can assume that most measures implemented will serve the needs of businesses.
 

For example, the “Tax Shift” decreases the employer social security contributions from 33% to 25% and allows higher deduction to SMEs for investments
 

The “Saut d’index”, adopted in April 2015, has planned a 2% leap in salaries indexation in order to increase Belgian firms' competitiveness.
 

On the other hand, the implementation of the "Taxe kilométrique" in March 2016 might increase transportation costs of delivering from suppliers and to our clients.

Economical

Inflation in Belgium has been declining for the last few years until 2015 and started raising up to 2.24% in March 2016. The “saut d’index” mentioned above made inflation rate higher than indexation of salaries and leaved a smaller disposable income for consumers but cheaper labour to employers.

In Europe, labour makes up 60% of production costs in the clothing industry and Belgium stands second most expensive European country in terms of average hourly labour costs with 39.1€/h in 2015.

Nevertheless, with the tax shift and indexation leap, the government aims to reduce the labour burden in Belgium.

As a promotor of Belgian photography, we could apply for a punctual or annual subsidy that are granted by “Fédération Wallonie-Bruxelles” who is in charge of culture in French-speaking zones in Belgium.

Since interest rates are very low, they are opportunities for loaning money.

Technological

The increasing use and development of internet and social media make it easier for small businesses to advertize and sell their products.

Digital textile printing is a technology that will enable European printers to retain a competitive advantage. The targeting of challenging high value and low volume sectors, that are highly profitable, will, among others, enable continued profitability and potentially growth.

Sociological
 

Some new mega trends such as Fairtrade also impact the fashion industry.

85% of the population wants to buy “smart” and about 72% wants more fair-trade products and 80% wants local products.

Shoppers spent an estimated €4.8 billion on Fairtrade products in 2012, a 21% increase since 2011. A 2010 Eurobarometer survey showed that almost 40% of Europeans were willing to pay more for products whose production preserves the environment, respects social conditions or helps developing countries.

Ecological

The fashion apparel is the 2nd largest water polluter in the world.
Cotton, for example, is one of the most commonly-used fabric but is highly demanding in water since it requires 7000 litres to grow and manufacture one cotton t-shirt.
 

Cotton is also responsible for 25% of the total world consumption of pesticides.

Legal

The European Union Customs Union allows Belgium to trade with the other EU members without quota restrictions or tariffs on goods.

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