3 estrategias prendas

Trends and Sourcing strategies of the European garment industry

EU Market entry garments Cbi-Inexmoda-Proexport Medellin 4 August Cali 5 August Bogota 6 August By Josephine Koopman

Insight in trends and sourcing strategies

in the garment industry

Identify market opportunities

CBI| Josephine Koopman| 8-2014

Our Goal for this session

1. Sourcing strategies 2. Industry trends threat or opportunity? 3. Sales activities


Agenda: Trends and Sourcing strategies of the European garment industry

o  EU Market o  Type of buyers/distribution channels o  Margins o  Fashion cycle


Background sourcing strategies

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 ?


-  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


Factors Considered Most When Choosing a Sourcing Region/Partner

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: costs

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



•  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?


What can You offer

•  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

•  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



……….

Sales activities


Assignment How can you get in contact with the buyer


Contact 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: 2nd phase -  Free publicity: Certifications-articles -  Internet forum -  Approach online stores that offer special collections -  ….


How to reach the buyer

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

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Market intelligence example


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Fashion forecasts

for free!

Insight in trends and sourcing strategies

in the garment industry

Identify market opportunities


Our Goal for this session

EU market access: an introduction 9.00-‐9.30 IntroducTon

IntroducTon of the parTcipants The European market Trade channels: Players, margins and fashion cycle (part 1)

10.30-‐11.00 Coffee/tea break 11.00-‐12.30 Trade channels: Players, margins and fashion cycle (part 2)

Sourcing strategies of EU buyers, industry trends: treats or opportuniTes?

12.30-‐13.30 Lunch 13.30-‐14.30 IntroducTon CBI and new Body wear programme

TesTmonial 14.30-‐15.00 Coffee/tea break 15.00-‐16.00 Discussion – ApplicaTon form


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Thank you for your attention!

Any questions?


3 estrategias prendas

Documents

threats cbi josephine

background sourcing

industry trends threat

sourcing strategy

sourcing regionpartner

steps sourcing steps

china china china china

thailand pakistan indonesia