If you manufacture or export sportswear, functional fabrics, or activewear, the news that Israeli fashion retail giant Castro Model recently signed a 5-year franchise agreement with ANTA Sports worth over 300 million baht might sound like something only big brands do. However, exporting Thai sportswear to Israel is actually showing interesting signs for small-to-medium-sized Thai OEMs and activewear manufacturers as well.

First, it's important to understand that Israel has no domestic textile manufacturing facilities. All athletic apparel and footwear in the country are imported. The sportswear market there has grown by approximately 4%, reaching 7.4 billion NIS, despite geopolitical and inflationary pressures. This figure comes from a report by Euromonitor International and should be used as a directional signal, not as a definitive confirmation.

More noteworthy than the numbers themselves is that Israeli consumer behavior is changing. People there are wearing more athleisure clothing in their daily lives—for work, exercise, and leisure—which means the demand isn't limited to athletes but has spread to the general public with high purchasing power.

Why does Castro's deal involve Thai manufacturers?

The Castro Model isn't just importing ANTA Sports products; it's also establishing a new subsidiary to manage this product line specifically, and allowing external partners to hold up to 49% in shares. This means the Israeli retail group is looking for more diversified supply chains, moving beyond reliance solely on China.

The main reasons they want to diversify their supply chain stem from two factors: volatile shipping costs due to the Red Sea situation and the uncertainty of the Chinese supply chain in the post-COVID era. Thailand is in an attractive position for Israeli buyers because Thai factories have expertise in functional textiles that are in demand in the high-end market, including seamless fabrics, UV-reflective fabrics, antibacterial fabrics, and highly breathable fabrics.

But before you start contacting buyers or sending catalogs, there are several things you need to understand, because the Israeli market has a unique context that differs from other markets.

Product standards required by the Israeli market, and what Thailand needs to prepare for.

Israel primarily uses product standards equivalent to EU Standards, even though it is not a member of the EU. Most Israeli importers expect their products to meet European safety standards, especially in children's clothing and sportswear that comes into direct contact with the skin.

For activewear and functional textiles, Israeli buyers typically request during initial negotiations the following: chemical residue test results according to OEKO-TEX Standard 100 or equivalent, colorfastness test results according to ISO standards, and accurate fiber content declarations matching the product label.

If you produce goods from recycled fibers, such as recycled polyester, which is becoming popular in Israel, you should have a GRS (Global Recycled Standard) certificate ready, as high-end buyers often request this document before making an order.

Exporting Thai sportswear to Israel: Documents to prepare before the buyer asks for them.

Exporting clothing and textiles to Israel is not as complicated as to the EU or US markets, but there are still basic documents that need to be prepared. Incomplete documentation may result in goods being held at Israeli customs.

• Commercial Invoice The product value is specified, the product description is clear, and the HS Code is correct.
• Packing List Matches all items on the invoice, including weight and number of boxes.
• Certificate of Origin (Form A or GSP) To request reduced import tariffs, if Thailand is eligible for those product groups.
• Fiber Content Declaration Indicate the fiber composition as a percentage, in both English and Hebrew if possible.
• Lab test results According to the standards set by the buyer, such as OEKO-TEX and REACH Compliance for prohibited chemicals.
• Bill of Lading or Airway Bill The destination port is clearly specified, usually Ashdod Port or Ben Gurion Airport.
• Additional standard certificates For example, GRS for recycled fibers or GOTS for organic. If your product falls into one of these categories,

The average time to obtain certification from a laboratory in Thailand is 2-4 weeks, depending on the type of test. It's advisable to plan this in advance before the buyer requests product samples, because if the lab results aren't available yet but the buyer wants to place an order, you might lose a favorable negotiation opportunity.

Thailand-Israel shipping routes and risks you need to know.

The main route for shipping goods from Thailand to Israel is by sea through the Suez Canal to the Port of Ashdod, Israel's main port. The estimated transit time is 25-35 days, depending on the shipping line and transshipment point.

A potential issue to be aware of at the moment is the unrest in the Red Sea, causing some shipping lines to avoid this route and instead绕 around the Cape of Good Hope. This adds approximately 10-14 days to transit times and significantly increases freight costs. If you are planning to ship goods to Israel, you should check with your freight forwarder beforehand about which route their current shipping line is using and how it will affect your lead time.

For high-value items per unit, such as functional textiles or seamless garments, air freight for first orders or sample shipments may be more cost-effective. This reduces downtime risks and builds buyer confidence more quickly.

Wholesale and online channels you should know before negotiating.

In the Israeli market, there are two main retail groups that control the distribution channels for fashion and sportswear: Fox Group, which holds the licenses for Nike and Mango in Israel and operates Terminal X, the country's largest online fashion marketplace, and Castro Model, which recently signed a contract with ANTA Sports.

Terminal X is particularly interesting because its platform uses a visual AI system to recommend products, has an automated warehouse, and offers nationwide next-day delivery. The platform recently acquired the digital activewear brand Strongful, reflecting its serious expansion into the sportswear segment.

If you're interested in entering this market, the most realistic approach for Thai SMEs is to start by offering yourself as a White Label Supplier or OEM to buyers who already have established channels, rather than trying to directly compete with Nike or Adidas with your own brand. Marketing and branding in new markets require more time and money than you might think.

Calculating actual costs before setting a bid price for the buyer.

One of the most common mistakes in initial exports is setting prices without fully calculating the landing cost, which results in a loss of margin after the goods have reached the buyer.

For exports to Israel, costs that must be included in the Landed Cost include: sea or air freight charges, cargo insurance, Israeli customs duties (which vary depending on the HS code of the product), Israeli VAT (currently 17%), freight forwarder service fees on both the Thai and Israeli sides, and laboratory certification renewal fees.

For example, if you sell seamless leggings at FOB price of 8 USD per piece, shipping and destination charges could add another 2-4 USD per piece depending on the volume and route, before the buyer adds their own margin. Therefore, the FOB price you set must be reasonable compared to the retail price that the Israeli market accepts, not just cheaper than competitors.

Exporting Thai sportswear to Israel: Things to check before starting negotiations with the actual buyer.

• Check the HS Code. Please ensure your product information is correct, as Israeli import tariffs vary depending on the HS Code and fiber type.
• Prepare lab results. According to the standards set by the buyer at least 4 weeks before sample delivery.
• Check the ferry route. Ask the freight forwarder about the shipping lines used for routes through the Red Sea or around the Cape of Good Hope, and the actual lead time.
• Prepare the Fiber Content Declaration. Make sure the product is complete and matches the label exactly, because Israel checks this at the import customs.
• I have a question about Incoterms. Clarify with the buyer before signing the contract whether it's FOB, CIF, or DDP, as each type affects the liability of expenses differently.
• Check the return policy. For buyers, this is because the online market in Israel has a high return rate, especially for fashion items.
• Plan Payment Terms Use tight payment terms such as L/C or T/T 30% in advance to reduce payment risk with new buyers.

OEM and Private Label are the most realistic avenues for Thai SMEs.

If you are a factory or manufacturer without your own brand, OEM and Private Label channels are the most sensible starting point for the Israeli market. Buyers there already have existing sales channels, but lack reliable suppliers outside of China.

The strengths of Thai factories that are of interest to Israeli buyers lie in their ability to produce innovative functional textiles, such as seamless fabrics, antibacterial fabrics, and fabrics made from recycled fibers. The high-end market in Israel is willing to pay higher prices for these materials than for typical mass-market products.

For Thai activewear brands with their own designs, the differentiating factor from Western brands is the body-flattering patterns and the use of diverse color palettes. This might interest the niche market in Israel, which is tired of mass-produced goods, but it will take time to build credibility and a customer base.

Questions to ask the buyer before accepting the first order.

Before you accept an order from an Israeli buyer, there are some questions you should ask to clarify things in order to prevent potential problems later.

The first question is, what compliance documents does the buyer require, and who will bear the testing costs? Some buyers expect the supplier to cover these expenses, which could significantly impact your margin.

The second question is, what is the minimum order quantity (MOQ) that the buyer requires, and what is the acceptable lead time in days? Because if the MOQ is low but the lead time is very short, you might have to bear the cost of air freight instead of sea freight, which will immediately impact your costs.

The third question is, what is the buyer's sustainability policy? Because the high-end Israeli market is increasingly asking about carbon footprint and ethical manufacturing. If your factory already has certifications in these areas, you should highlight them as a selling point in negotiations.

Things to watch out for next.

Castro's deal with ANTA Sports will begin its full-scale implementation in 2027, meaning that the period from 2025-2026 will be when Israeli buyers are planning their supply chains and looking for new partners. If you are interested in this market, starting to build relationships with buyers now through international trade shows such as MEGA SHOW Bangkok or GFT will be more beneficial than waiting for the market to fully open before starting.

In terms of logistics, the situation in the Red Sea should be continuously monitored because freight rates and lead times remain volatile. Planning for buffer stock, or shipping goods further in advance than usual, may help mitigate delivery time risks.

For more information on international logistics planning, you can refer to the following references: smeshipping.com This compiles information related to exports for Thai SMEs.

Finally, the Israeli sportswear market is an interesting prospect, but it's not an easy or fast market. Entering a new market takes time to build trust, prepare thorough documentation, and understand actual costs before setting prices. If you prepare these aspects beforehand, your chances of finding genuine buyers are much greater than rushing to send out catalogs without supporting data.

Exporting Thai sportswear to Israel: Double-check before negotiating prices and finalizing container shipments.

Before submitting a bid to a buyer in Israel, you should clearly separate the cost of the goods, packing costs, shipping costs, insurance, documentation fees, and destination charges. If you combine everything into a single lump sum, you won't know where your profit goes when shipping costs fluctuate.

For apparel, sportswear, and activewear, the first step before submitting a price quote is to obtain complete destination information from the buyer. This includes the preferred port, Incoterms terms, desired delivery date, payment method, and customs clearance documents. This information helps you assess the risk before accepting the order.

If a buyer requests a price quote, you should check it carefully. Avoid giving a broad, approximate price; instead, provide a price range, specify the quotation's expiration date, and mention that freight surcharges or other additional costs may vary depending on the shipping booking date. This helps prevent disputes when the goods are ready for shipment.

Documentation issues should be checked from the beginning, not waiting until production is complete to inquire. Some documents require time to obtain from relevant agencies or labs. Missing documents on delivery day can result in costs beyond just penalties, including delays and decreased buyer trust.

When discussing shipping with a freight forwarder, ask about the standard shipping time, alternative routes in case of risk, costs not included in the freight quote, and insurance claim conditions in case of damage or delays.

Another point to be aware of is that some details may not be clearly stated in the initial quotation. This information might not be visible in the first quotation but will emerge when the buyer reviews the documents or when customs at the destination request additional information. Preparing this information in advance can therefore help speed up the deal.

• Separate the cost of goods, shipping, insurance, and documentation onto different lines before submitting a price quote.
• Clearly confirm the Incoterms with the buyer, specifying who is responsible for the final delivery costs.
• Verify that the HS Code and product name in the invoice match the packing list and shipping documents.
• Please provide a freight quote that includes all applicable surcharges, not just the base freight price.
• Specify the expiration date of the quotation to mitigate the risk of fluctuating freight rates.
• Keep product certification documents and product photos ready to respond to buyers immediately.
• Start with a sample shipment if you haven't shipped to this market before, to reduce risk before placing a large order.

For SMEs planning to export sportswear to Israel, use this as a preliminary checklist, then verify the details with the buyer and freight forwarder for each specific shipment.

If you use this checklist before starting pricing discussions, your first export transaction won't be guesswork, but rather a decision based on actual costs, real documentation, and real risks. This will help you negotiate with the buyer with more confidence.

Source: Department of International Trade Promotion (DITP) / Globes Israel / Euromonitor International