canadian apparel magazine

CPSIA update The industry wins a reprieve, but for how long?

Credit and riskHow to mitigate risk in a tough economy

CAF wins labelling dust-up

Spotlight on sportswearISPO Winter ’09

VOL. 33, NO. 1 SPRING 2009

Spotlight on sportswearISPO Winter ’09

CPSIA update The industry wins a reprieve, but for how long?

Credit and riskHow to mitigate risk in a tough economy

CAF wins labelling dust-up

PM

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© 2009 Canadian Apparel Federation.All rights reserved. The contents of this publication may not be reproduced by any means, in whole or in part, without the prior written consent of the Canadian Apparel Federation.Articles and information in this magazine represent the opinions of the writers and the information that, to the best of our knowl-edge, was accurate at the time of writing. Users of any information contained in Canadian Apparel are encouraged to validate that information by independent means.Published April 2009 for:Canadian Apparel Federation708-151 Slater St. Ottawa, ON K1P 5H3 Phone: 613-231-3220 Fax: 613-231-2305 www.apparel.ca

Bob KirkeExecutive Director

Canadian Apparel FederationPhone: 613-231-3220, ext. 224 Fax: 613-231-2305 Email: [email protected]

General Inquiries Circulation/Subscriptions Michèle BédardPhone: 613-231-3220, ext. 300 Fax: 613-231-2305 Email: [email protected]

Advertising InquiriesPat JohnstonPhone: 204-480-4432 Email: [email protected]

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Publisher: Robert Thompson

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Editor: Jeanne Fronda

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Please Return Undeliverable Copies To:

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4 Message fromthe Executive Director

5 Industry News

7 Spotlight on sportswearA sold-out ISPO Winter ’09 pulled in the crowds, including 22 exhibitors from Canada Cover photo courtesy of ISPO. Copyright streubel-photo.de

9 The CPSIA saga continuesNow is the time to get ready for the Consumer Product Safety Improvement Act

12 Forestalling over-regulationPrompt action by the apparel industry wards off needless regulatory changes

13 Getting intimateBuyers turned up in record numbers at the CurveNY shows in New York and Las Vegas

15 Credit and riskHow to establish a client’s credit and mitigate risk in today’s tough economy

18 Events

18 Advertisers Index

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5

VOL. 33, NO. 1 SPRING 2009

The Canadian Apparel Federation has signed an agreement with MediaEdge Publishing Inc., a leading publisher of association magazines,

to produce and distribute our official magazine, Canadian Apparel. This

Spring 2009 edition is the first one to be issued under this new partnership. The magazine will, under this new publishing arrangement, offer an informative mix of profiles, articles about the industry, and issues of concern to in the industry. Our magazine is the sole publication in Canada devoted to the entire apparel supply chain, including textile mills, technology suppliers, apparel

producers and retailers. Our partnership with MediaEdge promises to make the publication better, and more representative of the entire industry. Our publishing partnership with MediaEdge will ensure a quality publication that readers will look forward to receiving. It will also allow us to better meet the needs of advertisers. MediaEdge will be contacting you about advertising in the upcoming edition, and will be forwarding additional information on plans for the year ahead. Advertising in Canadian Apparel is a cost-effective way to spread awareness of your services and to support the Association, and the industry as a whole. Thank you for your ongoing support for Canadian Apparel.

Yours sincerely,

Bob Kirke Executive Director

The Canadian Apparel Federation has signed an agreement with MediaEdge Publishing Inc., a leading publisher of association magazines, to produce and distribute our official magazine, Canadian Apparel. This Spring 2009 edition is the first one to be issued under this new partnership.

The magazine will, under this new publishing arrangement, offer an informative mix of profiles, articles about the industry, and issues of concern to the industry.

Our magazine is the sole publication in Canada devoted to the entire apparel supply chain, including textile mills, technology suppliers, apparel producers and retailers. Our partnership with MediaEdge promises to make the publication better and more representative of the entire industry.

Our publishing partnership with MediaEdge will ensure a quality publication that readers will look forward to receiving. It will also allow us to better meet the needs of advertisers. MediaEdge will be contacting you about advertising in the upcoming edition, and will be forwarding additional information on plans for the year ahead. Advertising in Canadian Apparel is a cost-effective way to spread awareness of your services and to support the Association, and the industry as a whole.

Thank you for your ongoing support for Canadian Apparel.

4 CanadianApparel Spring 2009 CanadianApparel Spring 2009 5

Better data for retail marketersThanks to a new arrangement between Ipsos Reid and Tell Us About Us Inc. (TUAU), marketers in Canada’s retail sector can access superior data collection, analysis and insight.

The new offer from the two companies, announced in March, combines the best resources from each. TUAU’s data collection and reporting engine OnlineKMC integrates data from online, interactive voice response and mystery shopping into one easy-to-use client interface, while Ipsos Reid’s team of research professionals translates it into strategic insight for marketers.

IPSOS uses TUAU data to outline a road map for setting objectives and aligning a business to changing customer needs, thereby providing clients with a better perspective on what drives customer satisfaction and loyalty.

Coast Mountain Sports sponsors MOMARCoast Mountain Sports, a corporate banner of The Forzani Group Ltd., has the Title Sponsorship for the 10th annual Mind over Mountain Adventure Race (MOMAR) Series.

The company will provide an outdoor gear prize package for each race series, special offers for registrants plus an outdoor grand prize package for MOMAR’s big end-of-season contest. It has also put together an exclusive Recommended Gear Guide available at MOMAR clinics and select Coast Mountain Sports stores.

MOMAR tests mental acuity and physical endurance with train runs, mountain bikes, kayak, rappel and bushwhack over 50-km and 30-km courses.

The Forzani Group Ltd. is Canada’s largest national retailer of sporting goods, operating stores under corporate and franchise banners that include Athletes World, Sport Mart and SportChek.

Industry News

Perry Ellis nabs Callaway apparel licencePerry Ellis International has been licensed to design, manufacture and distribute Callaway golf and sportswear apparel in the U.S., Canada, Latin America and the Caribbean.

Perry Ellis International will service better department and specialty stores, as well as corporate channels, and Callaway Golf will service the green grass, off-course and sporting goods channels. Perry Ellis will also undertake the embroidery, embellishing and warehousing of products for Callaway.

For the balance of 2009 Callaway will continue servicing the market with products produced by its earlier licensee. Perry Ellis International’s designs are scheduled to begin shipping in spring 2010.

In less positive news, the apparel company reported a loss of $21.6 million, or $1.58 per share, in the fourth quarter, and it expects revenue to decline for the year by high single to low double digits, it was reported. Some growth was seen in the company’s Hispanic men’s brands, swimwear, golf apparel and denim business. With the Callaway deal, Perry Ellis International expects to double the size of its golf business.

Joe Fresh partners with Rethink Breast CancerRethink Breast Cancer has joined forces with Joe Fresh Style to design, produce and retail the iconic Target T-shirt for its eighth annual Fashion Targets Breast Cancer campaign.

The national fundraising campaign focuses on the sale of limited-edition T-shirts to remind women to target their breast health. They will be available during May at all Real Canadian Superstore locations nationwide, retailing for just $12. All of the net proceeds from the sale of the shirts go towards funding research, support and awareness programs operated by Rethink Breast Cancer.

Fashion Targets Breast Cancer was created by Ralph Lauren in 1994 and since then has turned into a global initiative with more than 13 participating countries. It has raised over $40 million for cancer charities worldwide.

Unique Solutions acquires interest in top competitorUnique Solutions Design, Ltd., a market leader in 3-D body scan measurement technology, has acquired the majority interest in its top competitor, Philadelphia-based Intellifit Corporation.

The acquisition brings forth strong retail brand partnerships such as Levi’s, Lane Bryant and Fashion Bug Stores. Intellifit’s patented Virtual Fitting Room is the only 3-D whole-body anthropometric scanner that can take measurements of a fully clothed individual, says the company. Unique’s original BodyScanner offers the same measurements plus weight, height and BMI.

The move allows high-traffic locations such as department stores to offer clients 3-D body scanning, reducing returns due to inaccurate sizing.


Barbie bursts on the Toronto sceneThe Bay’s Toronto Queen Street location is the site of Canada’s first Barbie lifestyle retail store in Canada. The Barbie Signature Shop at the Bay’s Toronto Queen Street location launched its two-month Barbie celebration in March. The event includes thematic store windows along Queen and Bay streets as well as 1,350 square feet of space devoted to Barbie-themed adult apparel, dolls, accessories, jewelry and more. The retail celebration also coincided with the first ever Barbie by David Dixon fashion show at LG Fashion Week’s opening night.

Additional touches to the celebration include a Fashion Salute to Barbie with dolls designed by the likes of Diane Von Furstenberg, Burberry and Armani as well as a whimsical Barbie furniture line created by Glenn Dixon and exhibited exclusively at the Bay.

Photos by Dave Cyr

Adidas under fireA group of irate Queen’s University students are pressuring the university not to renew its contract with Adidas, claiming that not all the clothing is being made in Canada, reported the Queen’s Journal.

According to the student group Queen’s No Sweat, students were originally told that all the sports clothing supplied to the school by Adidas would be manufactured in Canada. Representatives of the group have since discovered that of the 342 Adidas items being supplied, only 162 are produced in Canada, by Saxon Manufacturing in Brantford. The rest of the 180 items, including jerseys, shorts and jackets, are manufactured primarily in factories in Asia and South America.

The university’s contract with Adidas is set to expire in 2011.

New face at La SenzaLimited Brands Inc. has appointed Joanne Nemeroff president of the lingerie chain La Senza, where she will head the company’s Canadian and international operations as of April. Nemeroff comes to La Senza from Aldo, where she was group vice-president.

The return of Linda LundströmLongtime Canadian design diva Linda Lundström made a splashing return to the country’s fashion scene during Toronto’s LG Fashion Week in March. With the help of a silent investor, Lundström launched her fall 2009 collection. A new Lundström boutique at Cumberland Avenue in Toronto is set to follow.

The fashion show featured a number of environmentally friendly touches, including a “green” version of the designer’s famous LaParka coat, which has had an annual reincarnation since it first launched in 1986. In a new twist, the label has been shortened to Lundström, and is already being sold to stores in Canada and the U.S.

Industry News


Trade Show ReviewBy Brian Dunn

Photos courtesy of ISPO. Copyright streubel-photo.de

Spotlight on sportswearT he recession doesn’t appear to have impacted the activewear and

sporting goods business, judging by the number of exhibitors and attendees at ISPO Winter ’09 held in Munich February 1 to 4.

Despite a strike by Munich’s Transportation Authority, more than 60,000 industry visitors from over 100 countries attended the world’s largest sporting goods trade show, down slightly from 64,000 visitors from 113 countries in 2008. The number of exhibitors presenting product innovations and fashion collections for winter 2009/10 was also down marginally at 1,950 versus 2,026 a year earlier.

However the show, which took place over 185,000 square metres at the new Munich Trade Fair, was essentially sold out, according to Birgit Mertens, spokesperson for Canada Unlimited Inc., Toronto, the official

Despite an economic

slump, a sold-out ISPO

Winter ’09 pulled in the

crowds, including 22

exhibitors from Canada

Industry News


Canadian representative for the fair. “I was happy with the show. It was extremely busy and the economy was not a factor with 47 countries exhibiting, including 22 participants from Canada,” she says.

Canadian apparel exhibitors at ISPO included Arc’Teryx, Bula/Filmar Sportswear Canada, Canada Goose, Harricana, Mitchie’s Matchings, Mondor, Nobis, Quartz Nature, Sitka and Westcomb Outerwear.

ISPO got a boost from an unusually cold and snowy winter in Europe, forcing retailers to reorder, according to Marc Lugert, who runs the Canadian Apparel Federation’s European Export Service, which helps Canadian apparel suppliers get connected to European markets. “The two major buying groups, INTERSPORT and SPORT2000, reported an 18 per cent increase in orders from their existing members,” he says, add-ing “What recession?”

Buyers can expect to see flashier colours next season, with bright yellows and bright reds dominating, says Lugert.

“People want to make a statement. There’s more of a crossover with active sportswear becoming fashion items. Function and fashion at the same time,” he says.

Trade show participants, exhibitors and visitors alike were pleased with ISPO Winter ’09 and gave it consistently very good marks, accord-

ing to Maud von Hoff, communications manager, consumer goods for show organizer Messe München GmbH. “The good mood among all was a result of a very positively progressing winter sports season, as well as of the multi-faceted and high-quality selection of exhibited products.”

Safety products were especially in demand, says von Hoff: “Hel-mets and protectors have become absolute top sellers.”

As a result, many manufacturers have invested considerably in new product development which, in addition to the safety aspect, takes into account the user’s demand for lifestyle characteristics.

In addition, the subject of sustainability continues to be on every-one’s mind. This year’s ISPO Winter featured the first new, independent Eco Responsibility Award for products incorporating sustainability not just as an aspect of a certain lifestyle, but as a philosophy. The response to the award was pleasantly high, says von Hoff. It shows that the industry has recognized the importance of sustainability, with an increasing number of companies using recyclable and natural materials that don’t compromise function.

ISPO Winter ’10 will take place in Munich Feb. 7 to 10, 2010.

CAF’s European Export Service helps members determine if they should export to Europe and the right

course of action to take to penetrate the market

Trade Show Review


TRENDSInnovations in alpine skiing fashions

• Most collections aim to increase their relationship with nature and provide a feeling of individuality with exclusivity. This leads to fab-rics like Loden, boiled wool, cashmere, as well as silk, merino and corduroy with technical artificial fibres to ensure pieces are suitable for athletic activity, yet retain their elegant looks

• Technology- and ecology-oriented outfits gain popularity

• New neon colours

• Insulated jackets are getting more stylish

• Soft shells for the legs

Colours• Colours for the upcoming ski season are freely mixed and bright,

sometimes even loud, and very dynamic. In outfits for young free riders you will find eye-catchers like bright and more muted neon colours. Bright colours are often mixed with pastels to create a very personal look.

• Above all, blues of all types rule, sometimes cold, sometimes muted and soft, from dark blue to bright royal, sky, fresh ice or turquoise Tahitian blue.

• Also on the slopes, many shades of green, especially lighter shades such as lime to apple, grass and petrol green.

• Add to this mix bright egg-yolk yellow, fresh oranges, strong, sporty reds from cherry, raspberry, to full Bordeaux reds.

The new snowboard fashion trends• Combinations: high-tech materials with style elements from the past

• Classic: primary colours set accents in the snow

• Similarity: the looks of snowboard and ski wear continue to come closer together

• Padded garments with protectors

• Versatile: collections for alternative sports in places with little or no snow

• Rebirth: renaissance of the quilted jacket

New products• The heated jacket promises great comfort even on cold days

• Skis, snowboard, helmet, apparel, accessories with a reptilian look

• More recyclable jackets and pants

AccessoriesConsumers are demanding even more gloves, hats, caps, belts, ban-danas, as well as bags for skis, boots and helmets. In the future, wall displays in sports retail stores with hats, gloves and goggles will expand and sometimes even exceed the ski displays.

CAF’s European Export Service

The Canadian Apparel Federation’s (CAF) European Export

Service is a special program designed to help CAF mem-

bers in their European market entry plans.

The program first helps members determine if they

should export to Europe and then the right course of action

to take to penetrate the market. It provides solutions such

as one-on-one support, workshops, reference material,

recruitment and consultancy.

CAF works with Marc Lugert of Marc Lugert Consul-

tancy, a German-based expert who offers assistance with

the many issues and challenges CAF members face when

targeting the European market.

For more information, CAF members are invited to

contact Marc Lugert at [email protected]

Trade Show Review


I t was a moment to celebrate…. Or was it?

When the Consumer Product Safety Commission (CPSC) granted a one-year stay of enforcement on its controversial U.S. Consumer

Product Safety Improvement Act (CPSIA), there were those who were ready to break out the champagne. However in hindsight, there is very little to celebrate.

The stay, which took place just before the CPSIA’s deadline on February 10, did indeed amount to a de facto recognition that the testing requirements need to be clarified. But whether it clears up any confusion is a moot point. Consider the fact that while it defers the requirement to test or certify products as compliant with the new limits, it remains illegal to sell products that exceed them.

As well, confusion surrounding testing requirements remains. “The CPSC required not only that you produce safe products but that you certify them as safe based on testing,” says Bob Kirke, executive director of the Canadian Apparel Federation (CAF). “But people have no guidance. Do I have to test a red T-shirt and a blue T-shirt and a green one, etc. to prove there’s no lead in the dye? No one gave any answers.”

In fact, at a public meeting held September 4 to explain the CPSIA to affected industries, the chairperson of the CPSC, Nancy Nord, admitted the legislation was “incredibly complex” and that there were still grey areas such as the impact the new law will have on the industry supply chain.

Kirke points to the experience of one garment manufacturer that was on the verge of launching a new program with a major U.S. retailer when the CPSIA was introduced. In this case the critical requirement was testing for flammability. The fabrics involved were very high-grade and sourced overseas. The garment manufacturer

Product Standards

The CPSIA saga continues

By Andrew Brooks

A stay of enforcement has

some breathing a sigh of

relief over the Consumer

Product Safety Improvement

Act. But it will eventually be

implemented and now is the

time to get ready


contacted the fabric supplier, only to find that they had no idea about the flammability of their fabrics.

“What do you do next?” Kirke asks. “The garment maker at this point has to cut out yard-long samples of each and every fabric used — even one for each different dye — and send them to a testing lab. That costs money. No wonder people are freaking out as they try to come to grips with what the law requires them to do.”

Taking actionKirke says that major childrenswear suppliers in Canada have been much more proactive than their U.S. counterparts. This is partly due to a series of seminars that the Canadian Apparel Federation ran in October to help explain the provisions of the CPSIA and how they might affect the Canadian industry. Feedback was positive, with a number of member organizations crediting them for clearing up exactly what Canadian companies would have to do.

The lowdownThe U.S. Consumer Product Safety Improvement Act

(CPSIA), signed into law on Aug. 14, 2008, focuses

primarily on banning lead and phthalates (plasticizers) in

children’s apparel, toys and other children’s products sold

in the U.S. The act mandates product testing and certifica-

tion, tracking labels and product registration certificates

and increased whistleblower protections.

The organization responsible for implementing the

CPSIA is the Consumer Product Safety Commission (CPSC),

a U.S. government agency tasked with ensuring the safety

of consumer goods sold in the U.S.

Given the complexity and multinational nature of its

supply chain, the global apparel industry stands to be

severely impacted by the CPSIA. Most significantly — and

confusingly — for manufacturers, all goods to be sold must

first be tested and certified as being within the maximum

permissible lead limit.

This limit was to be reduced first to 600 parts per

million (ppm) by Feb. 10, 2009, then to 300 ppm by Aug.

14, 2009, and finally to 100 ppm by Aug. 14, 2011.

U.S. companies, on the other hand, tend to be larger, and this puts them ahead when it comes to having the resources to do the kinds of testing required. For one thing, says Kirke, U.S. companies tend to have formal compliance programs in place that are virtually unknown in Canada. They ensure that anything made or sold complies with all relevant laws and standards.

While some of the furor around the law is dying down, partly due to the stay of enforcement, it is important to remember that this is an illusory calm since the stay will probably expire next February.

In the end, Kirke believes that the long-term effect of the CPSIA will be positive for the Canadian apparel industry, despite the haphazard way it was introduced. For one thing, he says, some major retailers are still asking for the certificate of compliance because they want to show that what they’re selling complies

“Our recommendation is that companies try to

figure out how to deal with this now, because

it’s coming back”—Bob Kirke, Apparel Federation

with the new limits. This suggests that there is positive marketing potential in compliance.

And the CPSIA may force many companies to tighten up their supply chains and seek out better suppliers. Kirke cites the hypothetical example of a garment that wholesales for eight dollars, of which the fasteners account for 52 cents. If the fasteners fail to meet the CPSIA’s lead or phthalate limits, the whole garment is unsellable. The manufacturer is better off sourcing better fasteners now — even if they cost more — to avoid sacrificing the rest of the investment.

“Our recommendation is that companies try to figure out how to deal with this now, because it’s coming back,” Kirke says. “When it does, the CPSC may have smoothed off a lot of the rough edges but you know that they’ll also keep the bulk of the provisions.”


T here’s no substitute for concerted action. When faced with unfair regulatory changes that would have made bras and padded gar-ments subject to Ontario’s Upholstered and Stuffed Articles Regu-

lations, the industry revved up its engine and acted fast in fighting the changes. As a result, there’s a happy ending to this regulatory ruckus.

As described in the September/October 2008 issue of Canadian Apparel, in July of that year the Technical Standards and Safety Authority (TSSA) abruptly redefined garments with shoulder pads as “upholstered and stuffed articles.”

In one fell swoop, these items became subject to Ontario’s Upholstered and Stuffed Articles Regulations, along with the padded undergarments (including foundations and similar garments with components made with components from moulded foam) that had been added to the Regulations the previous January.

The changes had immediate legal effect and required significant, expensive changes to the licensing and labelling of these items. Among other concerns, the Canadian Apparel Federation (CAF) objected to the changes being made without consultation with the apparel industry and with virtually no attempt to notify the industry in advance of their taking effect.

The changes, which threatened to disrupt complex supply chains, would be difficult to comply with given the volume of goods in the supply chain. Moreover, they would cost the industry millions of dollars “for no apparent benefit.” According to CAF, millions of garments would immediately be non-compliant and subject to removal from store shelves by order of TSSA inspectors.

The Canadian Apparel Federation reacted by assembling a coalition of manufacturers and retailers across the country and abroad. In early October of last year, this coalition lobbied for a deferment of the changes to Jan. 1, 2010, in a meeting with the TSSA. Ten days later the TSSA indicated its willingness to roll back the regulatory changes. However

what emerged instead was a rollback for padded undergarments only, not garments with shoulder pads, and only to July 2009 rather than January 2010 as requested.

Snowball effectBy then the issue was snowballing. There were meetings between the U.S. and Canadian federal governments, with U.S. representatives expressing concern that the changes would introduce a non-tariff barrier to trade under World Trade Organization rules. The European Union had similar discussions with Canada, while Ontario and Quebec held bilateral meetings.

The American Apparel and Footwear Association pressured the U.S. government to act. Ontario’s Ministry of Small Business and Consumer Affairs also became interested, asking the Federation for more information and responding positively to apparel industry concerns.

Then on December 3, as TSSA inspectors were ramping up their warnings to Ontario retailers about the impending changes, the Ontario Ministry of Small Business and Consumer Affairs advised CAF that the Ontario Cabinet had issued revisions to the regulations. The revisions re-established an exemption from the labelling requirements for garments with shoulder pads and created a new one for padded undergarments.

Responding to the news, CAF issued a Regulatory Bulletin stating that the exemptions addressed the two most important issues raised by the TSSA’s regulatory changes. It concluded by acknowledging the contributions of retailers, manufacturers and others to the success of the lobbying effort.

The apparel industry was fortunate to find a responsive ear in the Ontario Ministry of Small Business and Consumer Affairs. But the suc-cess in forestalling this example of over-regulation is due, in no small measure, to the industry’s ability to act quickly and in a unified way on a number of fronts, within industry and the public sector.

Product StandardsBy Andrew Brooks

Forestalling over-regulationPrompt action by the apparel industry wards off needless regulatory changes that could have slammed it with millions of dollars in compliance costs


E ven during a recession, the show must go on, as they say, which it did in February at both CurveNY in New York and CurveNV in Las Vegas.

Both events were sold out, according to Laurence Teinturier, executive vice-president of CurvExpo. In Las Vegas, attendance was up 12 per cent from a year ago, reaching 1,764 buyers and featuring 150 lingerie col-lections, while the 1,937 buyers in New York previewing 250 collections marked a 25 per cent improvement from last February.

The notable difference this year was that while major department stores still sent their purchasing reps, this often consisted of one or two buyers instead of the larger delegations of the past, notes Teinturier. “Destination stores from all over North America were spotted on the (New York) floor,” she says, including Collange of Montreal.

Solange Cohen, who owns two Montreal-based Collange boutiques, was a bit “disappointed” with CurveNY. “There didn’t seem to be as much traffic as previous shows and there didn’t appear to be anything new in terms of collections,” she says. “I did place orders, but not as many as last year due to the economy.”

Buyers were cautious, but were still writing orders, according to several exhibitors. Given the economic slowdown, basics were top sellers but a key trend was sourcing newness, fashion colours and treatments. Retailers were also looking for items that featured fashion combined with function, fit and quality while offering consumers the perception of enhanced value.

Getting intimateBuyers were cautious and price conscious but they still turned up in record numbers at the CurveNY shows in New York and Las Vegas

Canada was well represented with 12 companies exhibiting in New York and 11 in Las Vegas, with Sterling Group, Patricia Lingerie, Kayanna, Christine Designs, Blush, Kenan Enterprises and Montelle appearing in both shows.

As well, the Canadian Apparel Federation ran a special promotional program that included a Wear Canada lingerie supplement highlighting different Canadian brands. The supplement was mailed to 3,500 buyers across North America and 6,000 copies were distributed at the Curve shows.

Orders placedGrenier was one Canadian supplier attending Curve that was optimistic spring and summer won’t be too severe, based on orders for immediate delivery that were placed at the show. “I was surprised how busy it was considering the economy,” she says, “although buyers were more price conscious than before. But most people know our products.”

Several brands made their debut at the New York show, including La Fée Verte, a new lingerie label from Sakara International of Montreal. “I’ve grown up in this business and I wanted to bring a fresh line into the market,” explains Adam Sakara, creative director of La Fée Verte. The new line has a higher-end price point than Sakara’s other mass volume business, with bras retailing for around $50.

Sakara describes La Fée Verte, which includes organic bamboo sleepwear, as a fantasy line where “the Garden of Eden meets Alice in Wonderland.” Hence the name La Fée Verte, meaning green fairy in

LingerieBy Brian Dunn

Getting intimate

Blush was one of seven Canadian companies exhibiting at both the New York and the Las Vegas show


English. “We had a giant mushroom and a throne as props in our booth in New York to convey that message,” says Sakara. “We were pleased with the show, as we picked up some new orders and we plan to return in August.”

Bravado Designs of Toronto, a line of maternity and nursing bras and apparel, opted to exhibit in Las Vegas over New York in order to tap new markets out West, explains Nadine Harding, director of sales and marketing. “We did the Vegas show last August, but were not part of it

last February and saw it as an opportunity this year to penetrate new markets out West,” she says.

“As a niche category, there seemed to be heightened interest in our products than in previous years,” adds Harding. “We also didn’t notice any price resistance, but at $75, we’re more of a bridge price point.” Bravado is introducing two new styles for fall that Harding wouldn’t reveal.

Christine Designs of Vancouver, a high-end sleepwear and loungewear line under the Christine Vancouver label, went to Las Vegas specifically to show its collection to Neiman Marcus, one of its major accounts. “Traffic is traditionally slower in Vegas than New York, but we’re starting to see some of our major customers from Calgary, Edmonton and Vancouver at the show,” says Erin Williams, sales director with Christine Designs. “We showed everything for immediate delivery and built in some great price points for our chemises, knowing there would be some price resistance for luxury items. We did some mix-and-matches at $80 wholesale.”

While the collection was well received, Williams said buyers were conservative in how far out they were buying and in their buying depth. “We came back with more Canadian orders than U.S. orders, which was interesting and possibly an indication how the two economies are coping with the recession,” she notes.

The next CurveNY is scheduled for August 2 to 4 and CurveNV for August 31 to September 2.

Retailers were also looking for items that featured fashion

combined with function, fit and quality while offering

consumers the perception of enhanced value

Lingerie

Lingerie from Christine Vancouver, whose new collection was well received at the show

Canadian-based supplier Grenier received several orders for immediate delivery that were placed at the show


Credit and risk: Making the right decisionsHow to establish

a client’s credit and

mitigate risk in today’s

tough economy

W ith the economic crunch, establishing the credit of your clients and lowering your risk are crucial to keeping your business afloat. Below are some guidelines to help you

ensure that your business doesn’t fall victim to a client’s credit crisis.

Establishing creditEstablishing the credit worthiness of your clients is one of the ongoing challenges of operating within our business environment. In the end, establishing credit lines is an art as well as a science. The level of credit that you establish for any of your clients will define both your profitability as well as the level of risk that you are comfortable with.

So what would you want to know in order to make a rational credit decision? Here are some factors that warrant investigation:

Recent payment patterns.

Longer-term payment patterns.

Have there been any NSF checks?

Has there been any collection activity?

Do the owners or any related parties have any preferential security?

What does the balance sheet look like?

What is the status bank credit facility?

The actual and current status of these factors are relevant but even more important is if there have been material changes in any of the above factors. Vendors want to see stability in payment patterns even if they are not “perfect.”

Financial ServicesBy David Schachter

An account that has a history of paying in 90 days for the last 10 years may be less of a concern than an account that has changed their payment patterns from 30-day discount terms to net 75. A vendor whose owner has recently securitized his position may be sending signals to his vendors. A retailer who has an occasional NSF creates less of a stir than an NSF from one who never has had an NSF.

Now where does one obtain this information one needs? You can start by looking at the following sources.

Credit applicationsMuch information can be gathered from a properly drafted credit application. In particular, the retailer’s agreement that bank information be made available at the vendor’s request can be established. Information such as home addresses, cellphone numbers and financial statements can be gathered at the beginning of a business relationship, before any issues exist.

Contact with customers responsible for credit Regular contact with management can provide valuable input. Information gathered in this way must always consider the fact that retailer management has a vested interest in maintaining the flow of the goods.


Other vendorsOther vendors will often provide credit updates, high credit positions, payment trends, NSF and collection activity. But this information is only available on request; you are usually not advised when significant changes occur. There is no guarantee that you will receive the information at an appropriate time. Furthermore, most vendors develop reciprocal credit information relationships with a limited number of other vendors and so only receive a limited view of each retailer that they investigate.

Credit bureaus Credit bureaus provide a much wider view of a retailer’s financial activities. Bureaus gather information from many vendor sources large and small, including factors and credit insurance sources. Bureaus also subscribe to court records and news clipping services that provide information that is not readily available or available only at a prohibitive cost. Credit bureaus, because of their wider reach, also provide more complete information related to NSF and collection activity as well as security registrations that may have been taken.

Financial statementsFinancial statements are, of course, the most important information that can be obtained and analyzed. Audited statements are more revealing than statements that are identified as “notice to readers.” It is crucial that the notes that accompany the statements be made available. Reading and interpreting a financial statement can also be a challenge. Referring a statement to your own financial professional or to a credit bureau that you belong to is wise if the amount of credit that you are considering is substantial. Most businessmen understand the basics of reading a balance sheet, but the devil is often in the details and important facts may be missed by the untrained eye.

The level of credit that you establish for any of your clients will define both your profitability, as well as the level of risk that you are comfortable with

Contact: Elliot Schiller1.888.816.0222 ext. [email protected]

What good is havingsomething valuable ifit’s not used properly?

Existing Systems Evaluation

Existing Systems Improvement

Needs Analysis

New System Search /Selection

Implementation Project Management

Best Practices Consulting

Change Management

Logistics /Operations Consulting

E-Commerce /EDI Support

Data Mining /Reporting Add-on Tools


16 – 18.6.2009

Visit the leading international Techtextil show and the parallel Avantex Forum.

the innovation interchange

Benefi t from innovations, enhancements, global solutions, valuable contacts and knowledge exchange. International suppliers will be showcasing specifi c industry solutions for designers, out-fi tters and manufacturers of sports and outdoor equipment.

For further information and tickets for Techtextil and Avantex visit:www.techtextil.comTel. 905-824-5017

The forum for innovativeapparel textiles

International Trade Fair for Technical Textiles and Nonwovens

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Mitigating riskYour bad debt history may be excellent but that is no guarantee that you will not suffer an unanticipated loss. Our world has changed considerably and the past may not be an accurate guide. Taking measures to refocus on your customers’ credit worthiness is prudent.

The internal reviewZero-based budgeting concepts can be used in the area of the credit lines that you establish for your customers. It is a valuable exercise. Every client’s line is reduced to $0. A new line is then established using the information that you have available. Financial information, credit bureau data, historical data and references from other vendors should all be used. Emotional attachments to a particular retailer also have a place, but keep in mind the relevance of the information you are using and give it the appropriate weight.

Credit insurance/FactorsCredit insurance is available from a number of sources, including EDC (Export Development Canada), Euler and Atradius. Accord Business Credit and GMAC are factoring firms who provide financing along with insurance coverage. Coverage may not be available on every account you ship and at times only partial coverage may be available. Terms of coverage are negotiable, as well as premium rates that are charged. Some vendors find it useful to deal with more than one provider in order to get the coverage that they are looking for. In any event, insurance coverage has become essential in order to observe the covenants that banks and ABLs require in order to provide financing to vendors.

Credit bureausThere are a number of credit bureaus that provide credit reports and credit-related information to vendors. Equifax and D&B provide information on a per-report or report package basis. National Apparel Bureau (NAB), which has served the Canadian apparel industry for over 75 years, provides information on a yearly subscription. Some bureaus arrange regular meetings/teleconferences at which specific accounts are discussed and credit issues reviewed. CanAM Credit provides reporting specifically on U.S. retailers to Canadian vendors on a report package basis.

Using terms and collection for creditVendors can use the offer of discounts to encourage early payment and therefore reduce risk. Faster payment turnover can allow the creation of a line of credit that at the same time mitigates risk and increases volumes. More stringent collection habits and more vigorous accounts receivables management can also reduce average exposure and create a more positive credit environment.

Most of all though, if you pay as much attention to your credit/collection issues as you do to your merchandising/product issues, you will increase your likelihood of success.

David Schachter has over 30 years of experience in the apparel industry. He owns and operates National Apparel Bureau (NAB), an industry-specific credit bureau which, for over 75 years, has reported on credit issues as they relate to apparel retailers in Canada; ACA, a collection agency that recovers commercial receivables; TAR, Targeted Asset Recovery, which provides consultation and recovery services to creditors involved in bankruptcies; and CanAm Credit, a provider of credit reports on U.S. retailers.


MAY 2009The Clothing Show – Spring 2009The Better Living Centre, Exhibition Place Toronto, Ont. May 1 to 3 www.theclothingshow.com

FAMEThe Jacob K. Javits Convention Center New York, N.Y. May 3 to 5 August 2 to 4 www.fameshows.com

Moda ManhattanThe Jacob K. Javits Convention Center New York, N.Y. May 3 to 5 August 2 to 4 www.modamanhattan.com

FHNB Fashion & Accessory ExposeCalgary Round-Up Centre Calgary, Alta. May 24 to 27 Nov. 18 and 19 www.fashionhasnoborders.com

JUNE 2009 The New MartLos Angeles, Calif. June 5 to 9 Aug. 8 to 14 www.newmart.net

Atlanta Women’s & Children’s MarketAmericasMart 3 Atlanta, Ga. June 13 to 16 Aug. 22 to 25 www.americasmart.com

JULY 2009 Texworld USAJavits Convention Center New York, N.Y. July 14 to 16 www.texworldusa.com

Colintex ........................................................ 9www.colintex.com

Interac .............................. Outside Back Cover

International Garment Fair Association ........ 14www.indiaapparelfair.com

Magazines Canada ..............Inside Back Coverwww.magazinescanada.ca

Messe Frankfurt Inc. ................................... 17

TD Canada Trust ..................Inside Front Cover

Teeger Schiller Inc. ..................................... 16www.teegerschiller.com

Events

Advertisers Index

SPINEXPO New YorkThe Metropolitan Pavilion/Altman Building New York, N.Y. July 20 to 22 www.spinexpo.com

POOLMandlay Bay Convention Center Las Vegas, Nev. July 24 to 26 www.pooltradeshow.com

Igedo Fashion Fairs Dusseldorf (CPD, Body Look, HMD & Global Fashion) Messe Düsseldorf Düsseldorf, Germany July 26 to 28 www.igedo.com

AUGUST 2009 CurveNYJavits Galleria New York, N.Y. Aug. 1 to 3 www.curvexpo.com

Southern Clothing MarketEmbassy Suites Charlotte, N.C. Aug. 1 to 3 www.mensapparelclub.com

Moda ManhattanThe Jacob K. Javits Convention Center New York, N.Y. Aug. 2 to 4 www.modamanhattan.com

Printsource New York7 W New York New York, N.Y. Aug. 4 to 6 www.printsourcenewyork.com

The New MartLos Angeles, Calif. Aug. 8 to 14 www.newmart.net

Atlanta Women’s & Children’s MarketAmericasMart 3 Atlanta, Ga. August 22 to 25 www.americasmart.com

Montreal Gift ShowPlace Bonaventure Montreal, Que. August 23 to 26 www.montrealgiftshow.com

CurveNVThe Venitian Hotel Las Vegas, Nev. August 31 www.curvexpo.com

KIDShow Las VegasBally’s Hotel Las Vegas, Nev. August 31 www.kidshow.cc

WWIN Show – Women’s Wear in NevadaRio Resort Hotel or Mandalay Bay Hotel Las Vegas, Nev. August 31 www.spectrade.com

SEPTEMBER 2009 Mode CityEurexpo Exhibition Center Lyon, France September 5 to 7 www.mode-city.com

Milano UnicaMilano, Italy September 8 to 11 www.milanounica.it

Trends the Apparel ShowNorthlands Park Agricom Edmonton, Alta. September 10 to 14 www.trendsapparel.com

Ontario Fashion Exhibitors market (OFE) Toronto Congress Center Toronto, Ont. September 12 to 15 www.ontariofashionexhibitors.ca

TexworldParis Le Bourget France Sept. 14 to 17 www.texworld.messefrankfurt.com

The Clothing Show – Fall 2009 The Better Living Centre Toronto, Ont. September 25 to 27 www.theclothingshow.com

Material World WestLos Angeles Convention Center Los Angeles, Calif. September 30, October 1 and 2 www.material-world.com

18 CanadianApparel Spring 2009

Magazines bring together people, passions and the products that interest them, all in one of the most intimateand engaging media available. In fact, somebody is engaged in a magazine this very moment. Discover howadvertising in magazines can help you make connections with consumers of your own.

Visit www.magazinescanada.ca

MCBR8103-B2 KT 02.19.09 2/19/09 1:07 PM Page 1

CLIENT: Interac TRIM: 8.375” x 10.875” PUBLICATION: Canadian Apparel

JOB #: IT-1172-CA LIVE: 7” x 9.5”

DESCRIPTION: FP 4C ad BLEED: 8.625” x 11.125” INSERTION DATE: Mar. 13/09

AGENCY59 | 1910 YONGE STREET 4TH FL TORONTO ON M4S 1Z5 | 416.484.1959 | AGENCY59.CA

Is chip good for my business?

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YOU HAVE A LOT OF QUESTIONS

We can help you with some answers. Visit InteracChip.ca

® The Interac logo, the armoured truck design and “Everyday Simply” are Trade-marks of Interac Inc. Used under licence.

IT-1172-CA.indd 1 3/13/09 1:37:44 PM

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