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2 europa canales de distribucion
2 europa canales de distribucion
2 europa canales de distribucion
2 europa canales de distribucion
2 europa canales de distribucion
2 europa canales de distribucion
2 europa canales de distribucion
2 europa canales de distribucion
2 europa canales de distribucion
2 europa canales de distribucion
2 europa canales de distribucion
2 europa canales de distribucion
2 europa canales de distribucion
2 europa canales de distribucion
2 europa canales de distribucion
2 europa canales de distribucion
2 europa canales de distribucion
2 europa canales de distribucion
2 europa canales de distribucion
2 europa canales de distribucion
2 europa canales de distribucion
2 europa canales de distribucion
2 europa canales de distribucion
2 europa canales de distribucion
2 europa canales de distribucion
2 europa canales de distribucion
2 europa canales de distribucion
2 europa canales de distribucion
2 europa canales de distribucion
2 europa canales de distribucion
2 europa canales de distribucion
2 europa canales de distribucion
2 europa canales de distribucion
2 europa canales de distribucion
2 europa canales de distribucion
2 europa canales de distribucion
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2 europa canales de distribucion

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  • 1. 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
  • 2. Josephine Koopman , 8-2014, CBI2 Agenda training session 1.  Trade channel structure 2.  Ratio’s 3.  Fashion cycle
  • 3. Goal of this training session Understand the trade channel structure And identify your potential businesspartners Josephine Koopman , 8-2014, CBI3
  • 4. EU trade channel structure Josephine Koopman , 8-2014, CBI4
  • 5. Josephine Koopman , 8-2014, CBI5
  • 6. 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 Josephine Koopman , 8-2014, CBI6
  • 7. 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, CBI7
  • 8. 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 Josephine Koopman , 8-2014, CBI8
  • 9. 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 Josephine Koopman , 8-2014, CBI9
  • 10. Factory outlets and discounters - Volume -  Discounted out dated articles -  Overproduced quantity -  Promotional items -  Wide range -  Delivery time crucial -  Repeat orders Josephine Koopman , 8-2014, CBI10 Mail-order Companies
  • 11. Web shops -  Growing market share -  Companies transfer to shop only on-line -  Additional to “brick” shops brands -  Virtual -  Pay online -  Margin Josephine Koopman , 8-2014, CBI11
  • 12. 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) Josephine Koopman , 8-2014, CBI12
  • 13. Different distribution channels in different countries Josephine Koopman , 8-2014, CBI13
  • 14. Southern Europe: independent retail and franchise England: Few independent retailers The Netherlands and Germany: buying organizations Josephine Koopman , 8-2014, CBI14 Distribution channels differ per country
  • 15. 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: Josephine Koopman , 8-2014, CBI15
  • 16. Sources www.aedt.org (European Association of Retailers) www.fashionunited.com www.Sippo.ch market surveys www.CBI.eu market surveys Josephine Koopman , 8-2014, CBI16
  • 17. Josephine Koopman , 8-2014, CBI17 Agenda training session Trade channels 1.  Trade channel structure 2.  Ratio’s 3.  Fashion cycle
  • 18. Josephine Koopman , 8-2014, CBI18 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
  • 19. Josephine Koopman , 8-2014, CBI19 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
  • 20. Josephine Koopman , 8-2014, CBI20 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
  • 21. Josephine Koopman , 8-2014, CBI21 EU body wear average consumer prices What do you think are average prices? Ladies Bra’s Briefs Hosiery Men Underpants Socks
  • 22. Josephine Koopman , 8-2014, CBI22 EU body wear average consumer prices Check your potential buyer Segments
  • 23. Josephine Koopman , 8-2014, CBI23 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
  • 24. 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 Josephine Koopman , 8-2014, CBI24
  • 25. Josephine Koopman , 8-2014, CBI25 Ratio’s Retail Gross margin 2011 (source HBO) Ladies 47% Men 46% Baby Kids 44% Body fashion 48%
  • 26. 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 Josephine Koopman , 8-2014, CBI26
  • 27. Josephine Koopman , 8-2014, CBI27
  • 28. Josephine Koopman , 8-2014, CBI28 Agenda training session Trade channels 1.  Trade channel structure 2.  Ratio’s 3.  Fashion cycle
  • 29. 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 Josephine Koopman , 8-2014, CBI29
  • 30. Josephine Koopman , 8-2014, CBI30 WINTERSALE SPRING/SPRING COLLECTION PARTY COLLECTION WINTER COLLECTION SUMMER COLLECTION SUM M ER SALE FLASH COLLECTION CHECK WITH YOUR CUSTOMER FASHION CYCLE: COLLECTION IN SHOPS
  • 31. Josephine Koopman , 8-2014, CBI31 WINTERSALE SPRING/SPRING COLLECTION PARTY COLLECTION WINTER COLLECTION SUMMER COLLECTION SUM M ER SALE FLASH COLLECTION 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
  • 32. Josephine Koopman , 8-2014, CBI32 WINTERSALE SPRING/SPRING COLLECTION PARTY COLLECTION WINTER COLLECTION SUMMER COLLECTION SUM M ER SALE FLASH COLLECTION 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
  • 33. Josephine Koopman , 8-2014, CBI33 WINTERSALE SPRING/SPRING COLLECTION PARTY COLLECTION WINTER COLLECTION SUMMER COLLECTION SUM M ER SALE FLASH COLLECTION DESIGNER STARTS DESIGNING SUMMER COLLECTION NEXT YEAR DESIGNER STARTS TO DESIGN WINTER COLLECTION NEXT YEAR FASHION CYCLE: SAMPLE OFFERING sampling sampling
  • 34. Josephine Koopman , 8-2014, CBI34 Agenda training session Trade channels 1.  Trade channel structure 2.  Ratio’s 3.  Fashion cycle
  • 35. Goal of this training session Understand the trade channel structure And identify your potential business partners Josephine Koopman , 8-2014, CBI35
  • 36. Thank you for your attention! Any questions? Josephine Koopman , 8-2014, CBI36

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