Zona Libre de Colon, Panama – When Levy & Company/ Deco'Llection's export markets began drying up, company co-owners and brothers Levy knew they had to move quickly: Exports account for nearly three-quarters of the company's sales.

''We had to change, grow and find new export markets because many of our biggest markets in Latin America evaporated due to economic woes. Our export sales, which by the way account for more than 70 percent of our gross sales, would have decreased this year had we not taken a very aggressive position on winning new markets, specifically, in Europe, the U.S.A. and even the Far East,'' Henry Levy said.

''Now we are heavy into importing and exporting, so we did not experience the economic downturn that has plagued many companies,'' Hertsel Levy said. ''We went after tough new markets and it paid off.'' One of those new markets is Australia where the Levys claim to have found a ''a strong and loyal client.''

The Levys' father, Isaac, who is an Iranian émigré, emphasized family involvement when he started the business 30 years ago. Today he is still working in the original store in Panama City. The Levys' brother-in-law operates the high-end retail shop in Panama City. The Levys themselves direct the company's import/export operations from Panama's Free Trade Zone in Colon.

The company's operations are bicoastal in the sense that all major retail operations are on the Pacific coast in three strategically placed stores in Panama City. These stores target the low, middle and high-end markets. In addition to the upholstery and curtain fabrics in their showrooms, floor coverings, window treatments and moldings were added and have become integral parts of their ranges. Other textile products featured in the range are goeblins, jacquards, flocks prints, vinyls, voiles, trimmings and linings.

The Levys conduct the import/export and wholesaling activities almost exclusively in the Colon Free Trade Zone. By basing its operations and facilities there - which include corporate headquarters, a warehouse and a first-class showroom - the company has two advantages. First it reaps the financial benefits of the area: there are no duties, taxes or customs to contend with. Secondly, despite less-than-ideal economic conditions, the geography of Panama proper has helped the country remain a choice importer. With its warehouse located just kilometers from its port and piers, the company exploits this geographical advantage. It has used this position to make itself an important supplier of home textiles to the South and Central American markets and now serves the Caribbean markets.

Henry and Hertsel claim to have intimate knowledge of the tastes, colors and cultural preferences of Latin Markets. They add to this knowledge by attending trade shows. ''If you couple our buying power with our knowledge of the markets and trends, it puts us in a strong position,'' Henry said. ''We offer an enormous range, something for everyone's taste. We take risks and we do not always win. However, we win often enough because of the size and variety of the range in tastes and prices. In retail you have to have choices, and that is precisely what we offer.''

The Levys recognize the intricacies of taste and culture in the markets that surround them. ''Bolivia is different from Brazil; Argentina is different from Guatemala,'' Hertsel said.

''I see the trend now really for unique textures and I would say this is true for all markets,'' said Hertsel. ''Browns, grays and neutrals will play a role, but the dominant theme is texture - new and unusual textures across the board.''

Encouraged by their success in the global arena, the Levy Brothers have plans for expansion. ''We want to manufacture furniture here,'' said Henry. ''We are also expanding our wholesaling of fabrics. Europe and the U.S.A. are our target markets.''

Hertsel said the company also performs converting operations in Europe, America and the Far East. ''Converting overseas gives us options and choices,'' he said. ''When we buy designs, they may give us the ingredients, so to speak, but we change the colors and determine the quality to suit our markets.

''We will still work with our strong Central and Latin markets — our primary markets — but we will also keep marketing ourselves aggressively in the U.S.A. and Europe. We exhibit at Textiles Americas in Miami and plan to increase our exposure at other major trade shows. We believe that when you sell to the world, you have buying power and buying power is your leverage,'' he said.

As Panama's economy changes with the handover of the Canal, the Levys hope to capitalize. Tourism, which is already the country's No. 3 source of revenue will take center stage. With tourism, come hotel and tourism projects. The Levys said they are prepared to produce for the hospitality sector. ''We have carpeting, wall and window treatments, molding and total cut and sew operations and installation,'' Henry said.

''For us, the keys to success are hard work, utilization of the Free Trade Zone, knowledge of all our markets/trends and buying power,'' said Hertsel.