Country Profile Chapter 2
Global Marketplace <ul><li>The Country Profile chapter will include: </li></ul><ul><ul><li>The dynamics of the global prod...
Across Borders <ul><li>Retailers are developing their own products on a consistent basis to maintain lower costs and highe...
Selecting a Country <ul><li>Step 1  </li></ul><ul><ul><li>Profile the country selected to export denim </li></ul></ul><ul>...
Cost to Manufacture a Pair of Denim Jeans Domestic Offshore Production Production Fabric $5.90 $2.25 Notions & Trim Button...
Reducing Production Costs <ul><li>The textile and apparel industry employs more people worldwide than any other industry. ...
Multiple Countries to Manufacture One Garment United States  Corporate Headquarters China Fabric Source Philippines Notion...
Traits of Nations <ul><li>Buyer must be aware of: </li></ul><ul><li>Social Traits- </li></ul><ul><ul><li>Language, educati...
Global Economic Development <ul><li>Denationalization refers to a country’s boundaries becoming less important, thus, allo...
Economic Development <ul><li>Developed Countries </li></ul><ul><ul><ul><li>Have strong economies as a result of high level...
Education and technologicy resources are in a stae of imp GeoHive
 
CIA
Factbook
Select
 
 
How textile and apparel is prevalent in different countries… <ul><li>United States </li></ul><ul><li>East Asia </li></ul><...
United States <ul><li>U.S. apparel imports account for the majority of the U.S. apparel sold in 2003 </li></ul><ul><ul><li...
East Asia <ul><li>Includes China, Japan, Hong Kong, South Korea, Taiwan </li></ul><ul><li>Rank world’s highest suppliers f...
China <ul><li>Made for manufacturing </li></ul><ul><li>Top producer of apparel based on quality of production, lead time p...
Japan & Hong Kong <ul><li>Japan </li></ul><ul><ul><li>Tokyo is the principal site of production </li></ul></ul><ul><ul><li...
Taiwan & South Korea <ul><li>Taiwan </li></ul><ul><ul><li>One of the top 3 textile producing counties </li></ul></ul><ul><...
ASEAN <ul><li>The Association of Southeast Asian Nations </li></ul><ul><ul><li>Includes Bangladesh, India, Pakistan, Vietn...
Caribbean Countries <ul><li>Includes Costa Rica, Dominican Republic,  El Salvador, Guatemala, Haiti, Honduras, Jamaica, an...
Egypt, Jordan, and Turkey <ul><li>Egypt </li></ul><ul><ul><li>Third largest industry </li></ul></ul><ul><li>Jordan </li></...
Europe (known for high fashion) <ul><li>Paris, France </li></ul><ul><ul><li>Most creative and innovative designers </li></...
Thank You!!! <ul><li>For more information about textiles, apparel and fashion in different countries…visit… </li></ul><ul>...
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Known For Fine Tailoring And Ready To Wear Clothing

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Known For Fine Tailoring And Ready To Wear Clothing

  1. 1. Country Profile Chapter 2
  2. 2. Global Marketplace <ul><li>The Country Profile chapter will include: </li></ul><ul><ul><li>The dynamics of the global product industry. </li></ul></ul><ul><ul><li>The definitions of social, political, cultural, economical and geographical traits of nations. </li></ul></ul><ul><ul><li>The importance of economic advancement among developed, developing and less developed countries. </li></ul></ul><ul><ul><li>The state of the product industries in major countries. </li></ul></ul><ul><ul><li>The role of international wholesale centers. </li></ul></ul>
  3. 3. Across Borders <ul><li>Retailers are developing their own products on a consistent basis to maintain lower costs and higher profit margins. </li></ul><ul><ul><li>More than 97 percent all textile and apparel products are produced outside of the U.S. </li></ul></ul><ul><li>In comparing the costs of domestic manufacturing and offshore production you have decided that it is more cost-effective to produce in another country </li></ul>
  4. 4. Selecting a Country <ul><li>Step 1 </li></ul><ul><ul><li>Profile the country selected to export denim </li></ul></ul><ul><li>The value system, communication levels, and time zones are examples of thing you need to understand to function as an industry professional in a foreign country. </li></ul><ul><li>Create a country profile for your jeans import. </li></ul>
  5. 5. Cost to Manufacture a Pair of Denim Jeans Domestic Offshore Production Production Fabric $5.90 $2.25 Notions & Trim Button, Thread, Zipper $1.19 $0.62 Packing & Tagging $0.75 $0.40 Labor Cutting, Sewing, Marking, Grading $20.00 $1.00 Shipping - Freight $4.00 $1.00 Duty 0 $3.00 Cost $31.84 $9.02
  6. 6. Reducing Production Costs <ul><li>The textile and apparel industry employs more people worldwide than any other industry. </li></ul><ul><ul><li>Manufacturing has gone offshore for the purpose of reducing supply chain costs. </li></ul></ul><ul><ul><li>As many as five countries can contribute to manufacturing one product. </li></ul></ul><ul><ul><li>Bottom line for a company is cost of production and lead time. </li></ul></ul><ul><li>Maybe cost-effective to have item cut in one country, sewn in another, packed in another and shipped to the distribution center. </li></ul>
  7. 7. Multiple Countries to Manufacture One Garment United States Corporate Headquarters China Fabric Source Philippines Notions Source Honduras Cutting Mexico Sewing and Shipped United States Packaged, tagged, and shipped to the distribution center
  8. 8. Traits of Nations <ul><li>Buyer must be aware of: </li></ul><ul><li>Social Traits- </li></ul><ul><ul><li>Language, education, values and customs </li></ul></ul><ul><li>Geographical Traits </li></ul><ul><ul><li>Natural resources-ports, waterways (landlocked) </li></ul></ul><ul><li>Political Traits </li></ul><ul><ul><li>Democratic – Autocratic </li></ul></ul><ul><li>Cultural Traits </li></ul><ul><ul><li>Mindset acquired over time – values – business etiquette </li></ul></ul><ul><li>Economic Traits </li></ul><ul><ul><li>Refers to the amount of goods and services that a nation produces and consumes, as well as financial well-being. </li></ul></ul>
  9. 9. Global Economic Development <ul><li>Denationalization refers to a country’s boundaries becoming less important, thus, allowing more freedom in trade among nations. </li></ul><ul><ul><ul><li>Countries are usually defined by their gross domestic product (DP) which is the amount of goods and services produced by a country in a one-year period. </li></ul></ul></ul><ul><ul><li>GDP does not include a nation’s exports and imports, but rather the output of merchandise produced in the nation. </li></ul></ul><ul><ul><li>Gross national product (GNP) is the value of all goods and services produce by a nation during a one-year period, and includes income generated by domestic and internationally owned companies. </li></ul></ul>
  10. 10. Economic Development <ul><li>Developed Countries </li></ul><ul><ul><ul><li>Have strong economies as a result of high levels of industrialization. </li></ul></ul></ul><ul><ul><ul><li>Their technology is advanced and the people hae igh standards of living. </li></ul></ul></ul><ul><li>Developing or Newly Industrialized Countries </li></ul><ul><ul><ul><li>Are just becoming to become industrialized </li></ul></ul></ul><ul><ul><ul><li>Educational and technological resources are inf a state of growth </li></ul></ul></ul><ul><li>Less-Developed Countries </li></ul><ul><ul><ul><li>Less-developed countries have incomes that are at poverty level. </li></ul></ul></ul><ul><ul><ul><li>The nation has limited natural resources and high unemployment rates. </li></ul></ul></ul>
  11. 11. Education and technologicy resources are in a stae of imp GeoHive
  12. 13. CIA
  13. 14. Factbook
  14. 15. Select
  15. 18. How textile and apparel is prevalent in different countries… <ul><li>United States </li></ul><ul><li>East Asia </li></ul><ul><li>China </li></ul><ul><li>Japan </li></ul><ul><li>Hong Kong </li></ul><ul><li>Taiwan & S. Korea </li></ul><ul><li>ASEAN </li></ul><ul><li>Caribbean Countries </li></ul><ul><li>Andean Countries </li></ul><ul><li>Sub-Saharan Africa </li></ul><ul><li>Egypt, Jordan, Turkey </li></ul><ul><li>Europe </li></ul>
  16. 19. United States <ul><li>U.S. apparel imports account for the majority of the U.S. apparel sold in 2003 </li></ul><ul><ul><li>Imports making up 96.6% </li></ul></ul><ul><li>Only 3.4% of textiles and apparel are produced in U.S. </li></ul><ul><li>Demand is greater in U.S. than any part of world </li></ul>
  17. 20. East Asia <ul><li>Includes China, Japan, Hong Kong, South Korea, Taiwan </li></ul><ul><li>Rank world’s highest suppliers for exports of textiles and apparel </li></ul><ul><li>Accounted for one-fourth of the world’s exports during 1997-2001 </li></ul>
  18. 21. China <ul><li>Made for manufacturing </li></ul><ul><li>Top producer of apparel based on quality of production, lead time pricing, and quantity </li></ul><ul><li>Economy is continuing to increase throughout the hills </li></ul>
  19. 22. Japan & Hong Kong <ul><li>Japan </li></ul><ul><ul><li>Tokyo is the principal site of production </li></ul></ul><ul><ul><li>Work on originals designs and manufacture for foreign companies </li></ul></ul><ul><li>Hong Kong </li></ul><ul><ul><li>Highly competitive free market economy </li></ul></ul><ul><ul><li>Dependent upon international trade </li></ul></ul><ul><ul><li>Apparel sector is the largest manufacturing employer </li></ul></ul>
  20. 23. Taiwan & South Korea <ul><li>Taiwan </li></ul><ul><ul><li>One of the top 3 textile producing counties </li></ul></ul><ul><li>South Korea </li></ul><ul><ul><li>Industrialization can be attributed to the growth of textile and apparel since the 1960’s </li></ul></ul><ul><ul><li>Biggest problem-inability to produce goods quicker </li></ul></ul>
  21. 24. ASEAN <ul><li>The Association of Southeast Asian Nations </li></ul><ul><ul><li>Includes Bangladesh, India, Pakistan, Vietnam, Cambodia, Indonesia, Laos, and Sri Lanka </li></ul></ul><ul><ul><li>Benefit from low wages </li></ul></ul><ul><ul><li>Vietnam and Cambodia- </li></ul></ul><ul><ul><li>two of the world’s fastest </li></ul></ul><ul><ul><li>growing exporters </li></ul></ul>
  22. 25. Caribbean Countries <ul><li>Includes Costa Rica, Dominican Republic, El Salvador, Guatemala, Haiti, Honduras, Jamaica, and Nicaragua </li></ul><ul><li>Has increased country production imports because of U.S. apparel quotas </li></ul>
  23. 26. Egypt, Jordan, and Turkey <ul><li>Egypt </li></ul><ul><ul><li>Third largest industry </li></ul></ul><ul><li>Jordan </li></ul><ul><ul><li>manufacturing is limited due to the scarce water supply </li></ul></ul><ul><li>Turkey </li></ul><ul><ul><li>Largest sector </li></ul></ul><ul><ul><li>Seventh largest exporter of apparel </li></ul></ul><ul><ul><li>Fourteenth largest textile exporter </li></ul></ul>
  24. 27. Europe (known for high fashion) <ul><li>Paris, France </li></ul><ul><ul><li>Most creative and innovative designers </li></ul></ul><ul><li>London, England </li></ul><ul><ul><li>Known for fine tailoring and ready to wear clothing </li></ul></ul><ul><li>Italy </li></ul><ul><ul><li>Known for fabrics (leather) </li></ul></ul><ul><li>Germany </li></ul><ul><ul><li>State-of-the-art manufacturing </li></ul></ul>
  25. 28. Thank You!!! <ul><li>For more information about textiles, apparel and fashion in different countries…visit… </li></ul><ul><li>www.cia.gov/publications/factbook/ </li></ul>

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