A new standard for sourcing in the hemisphere


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A new standard for sourcing in the hemisphere. Mexico Fits, the solution for textile and apparel businesses

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A new standard for sourcing in the hemisphere

  1. 1. A new standard for sourcing in the hemisphere by David Garcia Cosio CANAINTEX
  2. 2. The challenge 2
  3. 3. The challenge Mexico •  Decline in Mexican shipments of textiles and apparel •  Decline in Mexican textile and apparel revenues •  Decline in GDP •  Mexican strengths •  Little leverage rate •  None toxic financial sector •  Mexican government policy: open market, keep consumer costs low 3
  4. 4. The new realities •  New realities require a new business model •  Slow recovery in U.S./global consumer spending •  Consolidation of U.S. brands •  Smaller inventories/orders •  Shorter supply lines •  New retail models •  Long term shift in U.S. consumer spending patterns •  Post-crisis changes in China supply base 4
  5. 5. Where MEXICO FITS in 5
  6. 6. Where MEXICO FITS in •  In 2008, Mexico was the second largest supplier of textiles and apparel in the U.S. market •  Strong domestic market—more than 100 million consumers, increasing demand for high fashion products •  Capacity—Mexican textile and clothing industry exports to more than 60 countries. •  With twelve free trade agreements, Mexico has preferential access to 44 countries. •  Competitive imports duties, Mexico implemented lower MFN import duties in December 2008 and AD duties on Chinese imports are in the process of being phased-out. •  Cumulation with CAFTA, potential expansion to other U.S. FTA partners in the Western hemisphere. 6
  7. 7. CANAINTEX conclusions 1.  New textile and apparel market realities must be seen as an opportunity for hemisphere suppliers to reestablish our position in the U.S. market 2.  We compete with other world regions as a hemisphere, not as individual suppliers alone 3.  We must work together to address customer needs, build competitiveness and promote competition—not protectionism 4.  We must exit this crisis more competitive, more customer focused than before 7
  8. 8. 1.  Customer first 2.  Industry transformation 3.  Diagnosis 4.  Customer Board of Advisors 5.  Credibility
  9. 9. Customer first Mexico Fits starts with Customers Interviews with customers, ex customers •  High transactions costs: Restrictive/complex trade agreements, customs and regulations •  High transactions costs: Customs and security •  Security, including fraud and counterfeiting •  Need a full package, including accessory suppliers •  Non-price factors: variety, design, development, technology, flexibility On the plus side •  Knowledge of the U.S. market/culture •  Reliability •  Proximity •  Partnership •  Transformation 9
  10. 10. Industry transformation 1. Tightening controls on production processes 2. Investing in logistics 3. Increased flexibilities 4. Upgrade worker skills 5. Guarantees •  Zero defect •  Full customer support •  On-time delivery 10
  11. 11. Diagnosis: We will •  Raise production efficiencies to the highest levels in the industry. •  Meet the highest standards for products and raw materials. •  Provide the fastest response time. •  Guarantee safe and efficient customs clearance. •  Offer the widest variety of products and raw materials. •  Bring flexibility and adaptability to your sourcing problems. •  Add value in each and every product. •  Be cost competitive across the full range of our products. •  Understand and find solutions for the needs and demands of our customers. 11
  12. 12. Working with our customers Board of Advisors: Mexico, largest textile and apparel exporters Board of Advisors: US, main customers and importers 12
  13. 13. Benchmarking for credibility Third party verified performance measurement system based on customer criteria for rating suppliers 13
  14. 14. Closeness to customers and benchmarking will prove that….. your business your schedule your quality 14
  15. 15. your business Thank you