EU Market entry garments Cbi-Inexmoda-Proexport Medellin 4 August Cali 5 August Bogota 6 August Trends and Sourcing strategies of the European garment industry By Josephine Koopman
Our Goal for this session Insight in trends and sourcing strategies in the garment industry Identify market opportunities
Agenda: Trends and Sourcing strategies of the European garment industry 1. Sourcing strategies 2. Industry trends threat or opportunity? 3. Sales activities
Background sourcing strategies o EU Market o Type of buyers/distribution channels o Margins o Fashion cycle
Sourcing strategies: Steps Sourcing steps Garment needed Country as general indication Strategic decisions of company Supplier assessment
Sourcing strategies: What to source where?
global sourcing EU- 15 Top 15 Apparel import shi9s 2000-2011- 2013 Rank 2000 2004 2008 2011 2013 1 China China China China China 2 Turkey Turkey Turkey Turkey Bangladesh 3 Hong Kong Bangladesh Bangladesh Bangladesh Turkey 4 Tunisia India India India India 5 Bangladesh Tunisia Tunisia Tunisia Morocco 6 Inida Morocco Morocco Morocco Tunesia 7 Morocco Hong Kong Viet Nam Viet Nam Viet Nam 8 Indonesia Indonesia Indonesia Pakistan Pakistan 9 Thailand Pakistan Sri Lanka Sri Lanka 10 Korea, Rep. Thailand Pakistan Indonesia 11 Pakistan Sri Lanka Thailand Thailand 12 Sri Lanka Viet Nam Hong Kong Cambodia 13 Viet Nam Korea, Rep Switserland Malaysia 14 Malaysia Switserland Malaysia Switserland 15 MauriTus Malaysia Cambodia FYR Macedonia source: UN Comtrade2000-2011/ 2013 Kurt Salmon
New sourcing destinations Ethiopia Cambodia Myanmar Poland (again)
Which factors are considered most when buyers choose a sourcing region or partner?
Factors Considered Most When Choosing a Sourcing Region/Partner - Costs - Lead time - Quality program - Social compliance - Product development capability - Established region - Accessibility of raw materials and integrated suppliers - Specialist suppliers for niche markets - Flexible suppliers: Smaller quantity higher quality - Additional services (logistics, warehousing) - Reduction of geographic destinations - Reduction of suppliers
Sourcing strategies: costs In search of lowest production costs - labor costs - import-export duty (Free trade Agreements) - Material prices - Volume discounts - Logistic savings! - Better flow Planning - Storage options Be transparent!
Sourcing strategies: specialist/niche Short lead time specialist
Sourcing strategies: Type of producer CM(T) supplier Ready made garment supplier Integrated supplier Fabrics, patterns, additional servces Integrated supplier handling warehousing
Sourcing strategy: Product development capability Who has developed a sample collection? Josephine Koopman, CBI
Sourcing strategies Even after a positive supplier assessment you can be out. Reduction of geographic destinations Reduction of suppliers
Assignment POSITION Colombia TO OTHER COMPETING COUNTRIES, MAKE YOUR OWN COUNTRY SWOT FOR YOUR PRODUCTGROUP SWOT= STRENGHT, WEAKNESS, OPPORTUNITIES, THREATS
Industry Trends: threat or opportunity for you? Growing price competition, increased demand for fashion products against low prices Looking for alternatives for China and Bangladesh Hypermarkets also selling fashion Fashion Cycles get shorter, shorter delivery times and smaller volumes
Industry Trends: threat or opportunity for you? Actions/promotions or sales increased percentage of total turnover Growing internet sales Reduced quantities per style Higher standards of quality
Industry Trends: threat or opportunity for you? 2013 - Minor increase hosiery spending - Average price lingerie up - Shaping briefs Source INSTITUT FRANÇAIS DE LA MODE
Industry trends: Corporate Social Responsibility How sustainable is the product you are offering? Josephine Koopman, CBI
Josephine Koopman, CBI What can You offer
Industry Trends: threat or opportunity for you? Silver generation AGED 50-70 OLD 70+ British supermodel 70+ Daphne Selfe, 85, 2014
Product trends Fuller bra cup sizes Plus-size market Sustainable market Male market Customized market Functional clothing Easy care clothing Josephine Koopman www.koopman-works.nl 23
Industry Trends: threat or opportunity for you? Middle segment declines Budget available for open to buy " Repeat orders " Trend colours " Flash collections
Facts and threat More bankruptcy Profits and margins declined Difficult access to credit Last minute ordering, with risk passed on to suppliers Last moment cancellation of placed orders
Agenda training session Sourcing strategies 1. Present situation recap 2. Sourcing strategies 3. Industry trends threat or opportunity? 4. Sales activities
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Sales activities
Contact the buyer Assignment How can you get in contact with the buyer
How to reach the buyer Depends on your product range, your specialty. - Choose your trade fair - Network - Direct Marketing: Newsletter, samples, phone, mail - Get publicity on a fashion community, or fashion journal - Advertising - Sales office/agent - Personal visits: 2 nd phase - Free publicity: Certifications-articles - Internet forum - Approach online stores that offer special collections -.
Trade Fairs Check target group - Interfiliere - Salon International de la Lingerie - CPM Body&Beach - Who s Next - Zoom by Fatex -.
Some last suggestions - Transparent production and distribution process - Updated sample collection - Inform your customer - Make your products as sustainable as possible and communicate this - Respond well and fast on customers requests
Market Intelligence PlaYorm hzp://www.cbi.eu/marketntel_playorm Centre for the Promotion of Imports from developing countries August, 2014 33
Centre for the Promotion of Imports from developing countries August, 2014 34
Market intelligence example Centre for the Promotion of Imports from developing countries August, 2014 35
Fashion forecasts for free! Centre for the Promotion of Imports from developing countries August, 2014 36
Our Goal for this session Insight in trends and sourcing strategies in the garment industry Identify market opportunities
EU market access: an introduction 9.00-9.30 IntroducTon IntroducTon of the partcipants 10.30-11.00 11.00-12.30 12.30-13.30 13.30-14.30 14.30-15.00 15.00-16.00 The European market Trade channels: Players, margins and fashion cycle (part 1) Coffee/tea break Trade channels: Players, margins and fashion cycle (part 2) Sourcing strategies of EU buyers, industry trends: treats or opportunites? Lunch IntroducTon CBI and new Body wear programme TesTmonial Coffee/tea break Centre for the Promotion of Imports from developing countries August, 2014 Discussion ApplicaTon form 38
Thank you for your attention! Any questions?