2 europa canales de distribucion
TRANSCRIPT
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EU TRADE CHANNELS
IDENTIFY
OPPORTUNITIES
Introduction to the EU garment market CBI-Inexmoda-Proexport Medellin 4 August Cali 5 August Bogota 6 August By Josephine Koopman
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Josephine Koopman , 8-2014, CBI 2
Agenda training session
1. Trade channel structure 2. Ratio’s 3. Fashion cycle
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Goal of this training session
Understand the trade channel structure
And
identify your potential businesspartners
Josephine Koopman , 8-2014, CBI 3
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EU trade channel structure
Josephine Koopman , 8-2014, CBI 4
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Josephine Koopman , 8-2014, CBI 5
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Clothing chains Private label chains - Fast fashion - Lead time reduction - No stock but replenishment - Avoid warehousing - Own design and cut and marketing - Lower quality and price - Many delivery moments
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Clothing chains Single brand fashion chains - Average/high priced and higher quality - Higher percentage of basic clothing - No stock but replenishment - Avoid warehousing - Own design, cut and marketing - More delivery moments - Sourcing mainly Europe for the high-end brands Specific clothing chains - Selected product groups Josephine Koopman , 8-2014, CBI 7
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Department stores - Private label and brands - Contracted manufacturers and sub-contractors, others own production facilities - Very wide range of clothing, basics to fashion - Wide range of quality and price level - Lead times are longer than clothing chains
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Hypermarkets - Supermarkets - Value retailers - Subcontracting for private label - Finished product buying for special promotion - Basic items, low fashion level - Fewer delivery moments - Expected increased market share
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Factory outlets and discounters - Volume - Discounted out dated articles - Overproduced quantity - Promotional items
- Wide range - Delivery time crucial - Repeat orders
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Mail-order Companies
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Web shops - Growing market share - Companies transfer to shop only on-line - Additional to “brick” shops brands - Virtual - Pay online - Margin
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Market segmentation bodywear High price luxury segment Market share 5-10% Armani, Donna Karan Intimates, Gucci, La Perla, Prada Upper middle price segment Market share 15-20% Chantelle, Gossard, Marie-Jo, Wolford, Wonderbra Middle price segment Market share 25-30% Triumph, Sloggi, Schiesser, Ten Cate, Dim, Fila, Esprit, Mexx Low to middle price segment Market share 35-40% Private labels, like Marks & Spencer, Hema, Etam, Zara, H&M Low or very low price segment Market share 10-15% No brands or fancy labels
Source: Fashion & Vision (2011)
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Different distribution channels in different countries
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Southern Europe: independent retail and franchise England: Few independent retailers The Netherlands and Germany: buying organizations
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Distribution channels differ per country
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Order quantity indication Discounters: 3000- 5000 pcs per style. Branches: + 150 Private Labels: 300-1500 pieces per style; Branches: 50-100 Clothing chains: >300 pieces per style, Branches: +50 Department stores: 300-3000 per style depending on number
outlets Brands; best performing styles: 300-2000 pcs; selling in seasons Mail order companies: start with >300 and repeat orders Web shops: <300 Designer shops:
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Sources www.aedt.org (European Association of Retailers) www.fashionunited.com www.Sippo.ch market surveys www.CBI.eu market surveys
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Josephine Koopman , 8-2014, CBI 17
Agenda training session Trade channels
1. Trade channel structure 2. Ratio’s 3. Fashion cycle
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Josephine Koopman , 8-2014, CBI 18
Exporting manufacturers
Importers/Wholesalers/distributors 1,3-1,7
Agents Salary Bonus 5-15%
Retailers 2-5
Department
Stores
Clothing
chains
Hyper/super
markets
Mail order
companies
Web
shops
Factory
outlets
Designer
shops
Distribution channel general mark-up
European manufacturers1,4-1,7
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Josephine Koopman , 8-2014, CBI 19
Retail Ratio’s General (depending on customer)
Your margin: FOB selling price vs costprice Trends due to crisis: - Shift mid-prices to low priced segments (discounters hypermarkets etc) - Heavy markdowns, and promotional activities. ( 2nd one for free) - Growing importance bargain sales
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EU clothing retail prices: 5 clusters
1 High: Sweden, Denmark, Finland and Belgium 2 Above average: France, Luxembourg, Germany, Austria, Netherlands, Italy 3 Average: Portugal, Estonia, Latvia 4 Below average: Czech Rep, Slovenia, Lithuania, Poland, Ireland Spain 5 Lowest: UK, Malta, Hungary, Bulgaria Source Eurostat 2010
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Josephine Koopman , 8-2014, CBI 21
EU body wear average consumer prices
What do you think are average prices? Ladies Bra’s Briefs Hosiery Men Underpants Socks
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Josephine Koopman , 8-2014, CBI 22
EU body wear average consumer prices
Check your potential buyer
Segments
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Retail Ratio’s General (depending on customer)
Mark up 2,5-3 Sellingprice to consumer incl. VAT
buying price (buying price is your price incl transport,direct cost, import duty) Gross profit margin >51% incl sales Turnover excl VAT-buying price x100%
Turnover excl VAT
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Retail Ratio’s General (depending on customer) Example Dress shop price= 120 euro Cost price 48 euro - Gross profit 72 euro (markup is 2.5) Gross profit 72 euro x100= 60% Shop price 120 euro
But during sales 50%-70% discount Dress shop price= 60 euro Cost price 48 euro - Gross profit 12 euro
Gross profit 12 euro x100= 20% Shop price 60 euro
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Ratio’s Retail Gross margin 2011 (source HBO)
Ladies 47% Men 46% Baby Kids 44% Body fashion 48%
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Assignment Define a potential trading partner (not the type of trading partner you are working with already) based on the type of exporting company you are: Market segment Price Delivery time Minimum order quantity
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Josephine Koopman , 8-2014, CBI 27
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Agenda training session Trade channels
1. Trade channel structure 2. Ratio’s 3. Fashion cycle
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FASHION CYCLE: Buying periods Normally in garments at least 4 buying periods, Brands and Retailer Winter collection Summer collection Additional Flash collections Fashion groups constant flow of products every few weeks
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WINTER SALE
SPRING/SPRING
COLLECTION
PARTY COLLECTION
WINTER COLLECTION SUMMER COLLECTION
SUMMER SALE FLASHCO
LLECTION
CHECK WITH YOUR CUSTOMER
FASHION CYCLE: COLLECTION IN SHOPS
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WINTER SALE
SPRING/SPRING
COLLECTION
PARTY COLLECTION
WINTER COLLECTION SUMMER COLLECTION
SUMMER SALE FLASHCO
LLECTION
Total summer collection, more expensive items Delivery 1
Additional special Articles for Summer collection
High summer collection, Low priced items Short delivery, Special sale items
Total winter collection, more expensive items Delivery 1
Special articles
Low priced items Special sale items Short delivery
FASHION CYCLE: SPECIFICS COLLECTION
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WINTER SALE
SPRING/SPRING
COLLECTION
PARTY COLLECTION
WINTER COLLECTION SUMMER COLLECTION
SUMMER SALE FLASHCO
LLECTION
orders winter collection, more expensive items Delivery 1
Order High summer collection, low priced items
Orders summer collection, more expensive items Delivery 1 and additional articles
Orders Special articles christmas/party
FASHION CYCLE: Placing orders
Orders Low priced items Special sale winter items
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WINTER SALE
SPRING/SPRING
COLLECTION
PARTY COLLECTION
WINTER COLLECTION SUMMER COLLECTION
SUMMER SALE FLASHCO
LLECTION
DESIGNER STARTS DESIGNING SUMMER COLLECTION NEXT YEAR
DESIGNER STARTS TO DESIGN WINTER COLLECTION NEXT YEAR
FASHION CYCLE: SAMPLE OFFERING sampling
sampling
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Josephine Koopman , 8-2014, CBI 34
Agenda training session Trade channels
1. Trade channel structure 2. Ratio’s 3. Fashion cycle
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Goal of this training session
Understand the trade channel structure
And
identify your potential business partners
Josephine Koopman , 8-2014, CBI 35
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Thank you for your attention! Any questions?
Josephine Koopman , 8-2014, CBI 36