Canada Apparels Market-2015

Colombian Presentation
The Canadian
Apparel Market
By
A.Arputha Selvaraj
APMP –IIM CALCUTTA
1

Colombian Presentation 2
Purpose of today's presentation
Introduction
♦Describe what a Colombian apparel supplier
has to do in order to enter and be competitive
in the Canadian apparel market
♦Introduce Trendex North America
♦Review the history of Colombian apparel
exports to Canada
♦Overview the Canadian retail apparel market
♦Identify potential opportunities for Colombian
apparel manufacturers in Canada

An apparel marketing intelligence and
consulting company focusing on the Canadian
and Mexican apparel markets.
As an industry specialist Trendex offers
companies unique value added insights based
on both working with apparel retailers and
suppliers and its continuous propriety research
information services.
www.trendexna.comwww.trendexna.com
Trendex North America

Source: Statistics Canada/ CIA Fact Book
What is Canada?
4
Canada World
Rank
Colombia World
Rank
Population (000) 34,568 #37 45,370 #29
Yearly Pop Growth Rate 0.78 #136 1.13 #104
GDP (U.S.$Trillions 2012) $1.4 #14 $0.5 #29
GDP Per Capita (U.S.$2012) $41,500 #27 $10,700 #112
Retail Apparel Sales (US$Mill) $27,420 - $9,600 -
Apparel Sales per Person (US$) $793 - $211 -

Source: Statistics Canada
Largest Provinces
Ontario 13,472,000
Quebec 8,028,000
British Columbia4,606,000
Alberta 3,847,000
Largest Metropolitan Markets
Toronto 5,839,000
Montreal 3,909,000
Vancouver 2,420,000
Calgary 1,265,000
Ottawa 1,259,900
Edmonton 1,196,340
What is Canada?
5

CANADIAN TOTAL APPAREL IMPORTS
($ Millions)
$7,001
$7,465
$7,874
$8,429 $8,260 $8,231
$9,043
2005 2006 2007 2008 2009 2010 2011 2012
2012/2011
Change
+0.8%$9,118
Canadian Apparel Importing Patterns

0.8%
37.5%
10.9% 10.1% 7.7% 5.9% 5.8%
4.4%
-7.3%
-10.8%
Cambodia BangladeshHondurasTotal
Imports
ChinaVietnam India
Imports of Apparel Into Canada
January – December 2012
Percent Change
Pakistan
14.6%
MexicoTurkeyUSA

$4,279
$1,011
$592 $536 $398 $322 $288 $241 $197 $119
China Bangladesh United
States
Cambodia Vietnam Mexico India Indonesia Italy Pakistan
IMPORTS OF APPAREL INTO CANADA
January – December 2012
($ Millions)

Largest Latin America Apparel Exports to Canada
2012 C$ (000)
Country Amount
% Change
2012/2011
Mexico $322,307 +4.5%
Honduras $84,625 +7.7%
El Salvador $37,635 +49.2%
Guatamala $34,001 -7.9%
Peru $29,703 +13.3%
Nicaragua $26,102 +51.7%
Haiti $24,380 +36.5%
Dominican
Republic
$19,548 +24.2%
Colombia $9,295 +16.1%
Costa Rica $5,914 -3.8%
9

Colombia’s Apparel Exports to Canada
Canadian Dollars (000)
$7,991
$7,010 $7,194
$8,005
$9,295
2008 2009 2010 2011 2012
% Change
2012/2011
+16.1%

Hosiery/
Workwear/
All Other
Women’s/Girl’s
Men’s/Boy’s
2012 Canadian Dollars (000)
Children’s
11

Canadian Dollars (000)
Segment 2008 2009 2010 2011 2012
% Change
2012/2008
Men’s $3,454 $2,641 $3,113 $3,262 $4,190 +70.7%
Women’s $2,611 $2,879 $2,570 $2,964 $3,700 +41.7%
Childrens $380 $223 $188 $216 $20 -95.0%
All Other $1,546 $1,267 $1,322 $1,563 $1,386 -10.4%
12

Largest Latin America Apparel Exporters to Canada
2012 Dollars (Millions)
13
Country Sales
Mexico $194
Honduras $56
Haiti $22
El Salvador $18
Nicaragua $17
Dominican
Republic
$14
Guatemala $13
Peru $12
Colombia $4.2
Country Sales
Mexico $62
Honduras $15
Guatemala $11
Peru $9
El Salvador $6
Nicaragua $5
Colombia $3.7
Dominican
Republic
$3
Country Sales
El
Salvador
$0.6
Guatemala $0.5
Mexico $0.4
Honduras $0.2
Colombia $0.2
Peru $0.1
Nicaragua $0.1
Dominican
Republic
$0.1
Country Sales
Mexico $65
Honduras $12
El
Salvador
$12
Peru $8
Nicaragua $3
Dominican
Republic
$2
Costa
Rica
$2
Colombia $1.4
Brazil $0.8
Men Women Juvenile All Other

$9,295
$7,991
$7,010 $7,193
$8,005
$1,449
$314$561
$139$177
2008 2009 2010 2011 2012
Total Exports
Total Imports
Colombia APPAREL BALANCE OF TRADE WITH
CANADA
Thousands of Dollars
Source:

What can be said about Canadian Apparel Manufacturers?
•The number of manufacturers and their sales have
decreased by 35% - 45% over the past ten years
Canadian Apparel Suppliers

Canadian Apparel Manufacturing Sales
Seasonally Adjusted (Millions of Dollars)
$3,610
$2,646
$2,213 $2,296 $2,246
$1,933
2007 2008 2009 2010 2011 2012
% Change (N.A) (-27.2%) (-16.4%) (+3.8%) (-2.2%) (-13.9%)
Previous Year

What can be said about Canadian Apparel Manufacturers?
•The number of manufacturers and their sales have
decreased by 35% - 45% over the past ten years
•Have changed from manufacturers to suppliers
•Are focusing increasingly on exporting with mixed
success
•Have become more marketing oriented
•Are totally dependent on the U.S. market, as they have
been unable to develop consistent sales in other markets

$917 $1,005 $1,001
$1,103 $1,245 $1,249
$1,104
$1,447
$1,764$2,004
$954
$1,175
$2,208
$1,982
$1,651
$1,305
2005 2006 2007 2008 2009 2010 2011 2012
Total Exports
United States
Exports
U.S. Share (89%) (88%)(91%) (85%)
TOTAL CANADIAN APPAREL EXPORTS
($ Millions)
(83%) (81%) (80%) (80%)

Largest Canadian Apparel Suppliers
2012
Company Products Channel Country
Gildan Underwear Discount U.S./Canada
Peerless Men’s
Suits/sportcoats
Department U.S.
Nygard Women’s coordinates Dept/Spec/Disc Canada/U.S.
Levi Strauss Canada Jeans/casual pants Dept/Spec/Disc Canada
Point Zero Sportswear Dept/Disc U.S.
Roots Sportwear/activewear Dept/Spec Canada/U.S.
Hanesbrand Canada Lingerie/underwear Dept/Spec/Disc Canada
Warnaco Canada Jeans/lingerie Dept/Spec/Disc Canada
Fruit of the Loom
Canada
Lingerie/underwear Discount Canada
Canadian Goose Outerwear Dept/Spec Canada/Developed Countries
Western Glove Jeans/outerwear Dept/Spec Canada/U.S.
Stanfield Underwear Dept/Disc Canada/U.S.
19

Merchandise Category Example
Fur coats Many small suppliers
Winter outerwear Canadian Goose
Mid priced suits and sport coats Peerless
Mid and better priced dress slacks Ballin
Women’s mid priced coordinates Nygard
Women’s mid/better priced women’s
lingerie
Adorable/Arianne
Women’s tights/pantyhose Doris Hosiery
Men’s underwear Stanfield
Canadian Domestic Apparel Manufacturing Base
20

314
35
115
United
States
Canada Mexico
$15.7
$1.4 $1.8
United
States
Canada Mexico
NAFTA MARKET OVERVIEW
2012
Population (Millions) GDP (U.S$Trillions)
Nafta Overview

$203,740
$27,420 $23,700
United
States
Canada Mexico
NAFTA Overview
Total Retail Apparel Market
2012 (US$ Millions)
22

TOTAL APPAREL MARKET
2012 Dollar Sales
29.5%
20.7%
21.8%
3.8%
24.2%
17.5%
21.8%
53.8%
6.9%
5.6%
30.1%
28.7%
10.7%
1.7%
28.8%
United States Canada Mexico
Discount Stores
Sporting Goods Stores
Department Stores
Apparel Specialty Stores
All Other Outlets
NAFTA Overview

CANADIAN RETAIL CHANNEL DEFINITIONS
Department
Stores
Discount
Stores
Better Clothing
Chains
Other
Clothing Chains
Other Notable
Stores
Sears
The Bay
Walmart
Aubiererie
Superstore
Target
Winners
Giant Tiger
Croteau
Holt Renfrew
Harry Rosen
Femme de Carrier
H&M
Mark’s
Laura
Northern Reflections
Reitman’s
Simons
Zara
Costco
Sport Chek/Experts
*Store Only
NAFTA Overview

Más
Joven
Más
ViejoEdad Media
Ingreso Familiar
MERCADO TOTAL MEXICANO DE
ROPA PARA DAMAS
2012
Posicionamiento del Detallista
Bajo
Alto
Medio
Wal-Mart
Bershka
C&A
Liverpool
Suburbia
Sears
Coppel
Palacio de Hierro
Zara
Media
The Bay
Soriana
Comercial Mexicana
Bodega Aurrerá
Avon
Andrea
25
Ilusion
Price Shoes
Vicky Form
Martí
Sears Canadá

TOTAL APPAREL MARKET
2012 Dollar Sales
Largest Retailers
NAFTA Overview
26
Canada
Walmart 10.1%
Sears 9.5%
The Bay 8.1%
Mark’s 5.8%
Winners 4.3%
Reitmans 3.8%
Old Navy 3.6%
H&M 3.3%
Gap 3.1%
Moores 2.5%
United States
Walmart 8.0%
J.C. Penney 7.6%
Target 5.9%
Kohl’s 3.0%
Sears 2.8%
Macy’s 2.7%
T.J. Maxx 2.5%
Kmart 1.8%
Nordstrom 1.7%
The Gap 1.3%
Mexico
Suburbia 10.6%
Coppel 5.7%
Liverpool 5.6%
Walmart 4.8%
Zara 3.2%
Sears 3.0%
Bodega Aurrera 2.7%
Soriana 1.4%
C&A 1.3%

How is Canadian apparel retailing different from
American apparel retailing?
Compared to the United States, Canda:
•Has sales disproportionately smaller at the better end of
the market
•Has fewer channels of distribution
•Has a higher degree of retail concentration
•Has more promotional activity
•Has a higher percentage of independent apparel
retailers (especially in Quebec)
27
NAFTA Overview

$15,232
$8,700
$1,503 $1,321 $666
Total
Market
Women Men Girls Boys Infants
CANADIAN TOTAL APPAREL MARKET
2012 Estimated Canadian Retail Dollar Sales
(C$Millions)
$27,422
Canadian Retail Apparel Market
28

TOTAL CANADIAN APPAREL MARKET
Retail Dollar Sales
January - December
18.0%
50.6%
23.1%
2.7%
5.6%
17.9%
51.2%
22.4%
2.9%
5.6%
17.7%
52.7%
22.1%
3.2%
4.3%
17.5%
53.8%
21.8%
3.6%
3.3%
2009 2010 2011 2012
Discount Stores
Sporting Goods Stores
Department Stores
Apparel Specialty Stores
All Other Outlets

Total Men Women Juvenile
Department Stores 17.5% 18.0% 18.5% 13.8%
Discount Stores 21.8% 18.7% 19.0% 40.4%
Apparel Specialty Chains 48.1% 47.8% 50.4% 31.7%
Independent Specialty Stores 5.7% 4.3% 6.0% 4.1%
Sporting Goods/Pro Shops 3.6% 5.1% 2.2% 3.0%
All Other Outlets 3.5% 6.1% 3.9% 6.2%
Total 100% 100% 100% 100%
Canadian Apparel Market
2012 Retail Dollar Share
30

TOTAL CANADIAN APPAREL MARKET
January - December 2012
Retail Dollar Sales
Retail ConcentrationRetail Concentration Largest Ten RetailersLargest Ten Retailers
Top Ten
Retailers All Other
Retailers
Walmart
Sears (Total)
The Bay
Mark’s
Winners
Reitman’s
Old Navy
H&M
Gap
Moores
46%
54%
10.1%
9.5%
8.1%
5.8%
4.3%
3.8%
3.6%
3.3%
3.1%
2.5%

Men Women Juvenile
Mark’s Sears Walmart
Sears Walmart Zellers
The Bay The Bay Sears
Walmart Winners Children’s
Place
Moores Reitmans Winners
Zellers H&M Old Navy
Winners La Senza Superstore
Canada’s Largest Apparel Retailers
2012 Retail Sales
32

Young Older
Income
CANADIAN WOMEN’S APPAREL MARKET
2012
Low
Average
Average
High
Winners
The Gap
Old Navy
H&M
Walmart
Sears
Superstore
Mark’s
The Bay
Age
Penningtons
Aeropostale
Independent Retailers
Holt Renfrew
Reitmans
Costco
Banana Republic
Laura
Le Chateau
33
Garage
Dynamite
Mexx

Young Older
Income
CANADIAN MEN’S APPAREL MARKET
2012
Low
Average
Average
High
Winners
The Gap
Old Navy
Sport Chek
Walmart
Sears Retail
Superstore
Mark’s
The Bay
Age
Costco
American Eagle
Harry Rosen
Holt Renfrew
Moores
Zellers
Tip Top
Banana Republic
Eddie Bauer
Le Chateau
34

Retailer Stores
Mark’s
Reitmans
Le Chateau
Suzy Shier
La Senza*
Northern Reflection*
Penningtons
Smart Set
Garage
Rickis*
Stiches
La Vie En Rose
Moores*
Addition Elle
Jacob
Tip Top
Mexx*
384
362
241
190
185
160
152
150
147
142
136
128
118
116
102
99
91
35
Largest Apparel Specialty Chains
2012 Stores
*Foreign Owned

Men Women Juvenile Unisex
Mark’s 384
Moores 119
Tip Top 99
Randy River 39
International Clothiers
32
Jack & Jones 31
Ernest 27
George Richards 23
Mr. Big & Tall 19
Reitman’s 362
Suzy Shier 190
La Senza 185
Northern Reflections 160
Penningtons 152
Smart Set 150
Garage 147
Rickis 142
La Vie En Rose 128
Children’s Place 85
Gymboree 39
Bonnie Togs 37
Clement 30
Carters/Osh Kosh 28
Souris Mini 28
OK Kids 24
Siblings 23
Le Chateau 241
Stiches 136
Bluenotes 125
Warehouse One
113
Bootlegger 93
Mexx 91
Danier Leather 89
Urban Planet 88
36
Largest Apparel Specialty Chains
2012 Stores

% of Dollar Sales
Merchandise Category 2008 2009 2010 2011 2012
Men's Outerwear 12.2% 12.9% 14.3% 14.4% 13.9%
Men's Suits, Sport Coats 9.2% 8.9% 8.6% 9.4% 9.2%
Men's Pants and Tops 55.3% 54.4% 53.3% 52.8% 54.3%
Men's Underwear,
Sleepwear & Socks 8.3% 8.3% 8.1% 7.2% 7.5%
Other Men's Clothing 5.7% 5.9% 6.1% 5.8% 5.6%
Men's Accessories 9.3% 9.6% 9.6% 10.4% 9.5%
100% 100% 100% 100% 100%
37
Canadian Men’s Apparel Sales
Retail Dollar Sales

% of Dollar Sales
Merchandise Category 2008 2009 2010 2011 2012
Women's Outerwear 10.5% 8.8% 9.1% 10.3% 10.5%
Women's Dresses & Suits 7.5% 8.1% 7.6% 7.3% 7.6%
Women's Skirts, Pants & Tops 56.8% 57.5% 57.2% 57.0% 55.2%
Women's Hosiery 2.8% 2.7% 2.5% 2.5% 2.5%
Women's Lingerie 10.9% 11.1% 11.2% 10.4% 9.9%
Other Women's Clothing 3.3% 3.7% 4.3% 4.5% 5.1%
Women's Accessories 8.2% 8.1% 8.1% 8.0% 9.2%
100% 100% 100% 100% 100%
Canadian Women’s Apparel Sales
Retail Dollar Sales
38

Canadian Apparel Retailer Profile
Department Store
Sales (2011) C$4.3 Billion
Stores 118 Department Stores
48 Sears Home Stores
269 Sears Dealer Stores
11 Outlet Stores
Headquartered Tornoto, Ontario
(416) 362-1711
www.sears.ca
Strengths Women’s Intimate Apparel,
Women’s Plus and Petite
sizes, Men’s Workwear,
Private Label brands
National Brand/Private
Label Apparel Ratio
45%/55%
Private Labels Nevada, Jessica, Arnold
Palmer, Kenise, Mac & Jac,
Protocol
Possibility of Sourcing
from Colombia
30% - 40%
Sears Canada
39

Department Store
Stores 90
Headquartered Toronto, Ontario
(905) 792-4400
www.hbc.com
Strengths Men’s Suits
Brand Selection
Private Labels
Joint Venture with Top
Shop/Top Man
National
Brand/Private Label
Apparel Ratio
90%/10%
Private Labels Hudson North, Black &
Brown, Hudson Bay
Signature
from Colombia
20% - 25%
The Bay
40

Discount Store
Sales (2011) U.S.$22.4 Billion
Stores 209 Walmart Supercenters
170 Walmart Stores
Headquartered Toronto, Ontario
(905) 821-2111
www.walmartcanada.ca
Strengths Apparel basics
Childrenswear
Low price perception
Label Apparel Ratio
10%/90%
Private Labels George, g21, Athletic Works
from Colombia
10% - 15%
Walmart Canada
41

Apparel Specialty Store Reitman’s Canada
Montreal Quebec
www.reitmans.ca
Stores Total 959 Stores
Stores Banner Type
363 Reitman’s Women’s
167 Pennington’s Women’s
Plus Size
163 Addition Elle Women’s
Plus Size
68 RW & Co. Unisex
152 Smart Set Younger
Women
76 Thyme Maternity
National Brand/
Private Label Ratio
0%/100%
from Colombia
5% - 10%
42

Apparel Specialty Store
Stores 386
Headquartered Calgary, Alberta
(403) 255-9220
www.marks.com
Strengths Men’s Causalwear,
Men’s Workwear,
Scrubs/healthcare apparel,
Work/safety footwear,
Product Innovation
Label Apparel Ratio
10%/90%
Private Labels Denver Hays, Wind River,
Clothes That Work, Dakota,
Mountain Gear, Work Pro
from Colombia
15% - 20%
Mark’s
43

Sales (2011) C$750 Million
Stores 8
Headquartered Quebec City, Quebec
(418) 692-3630
www.simons.ca
Strengths Casual Wear
Private label
18 – 29 year old segment
National
Brand/Private Label
Apparel Ratio
10%/90%
Private Labels Simons, Contemporaine,
Guepiere, Le31, Lingerie
twik
from Colombia
10% - 15%
Simons
44

Stores La Vie En Rose 91
La Vie En Rose Aqua 23
La Vie En Rose Outlets 40
Headquartered Montreal, Quebec
(514) 256-9446
www.lavieenrose.com
Strengths Private Label Lingerie
Swimwear
National
Brand/Private
Label Apparel
Ratio
5%/95%
Private Labels La Vie En Rose
Possibility of
Sourcing from
Colombia
20% - 25%
La Vie En Rose
45

Stores 52
Headquartered Ste-Julie Quebec
(450) 449-1310
www.bikinivillage.com
Strengths Swimwear (largest
swimwear specialty
chain), Beachwear
National
Brand/Private Label
Apparel Ratio
85%/15%
Private Labels Bikini Lounge
Possibility of
Sourcing from
Colombia
10% - 15%
Groupe Bikini Village Inc
46

Sporting Goods Store
Stores Total 534
Athlete’s World 48
Atmosphere 62
Sport Chek 165
Sport Mart 41
Sports Experts 71
The Tech Shop 3
National Sports 18
Intersports 47
Head-
quartered
Calgary, Alberta
(403) 717-1400
www.fglsports.com
Strengths Number of Stores Largest seller of
sports apparel
National
Brand/
Private Label
Apparel
Ratio
85%/15%
Private
Labels
Firefly
Possibility of
Sourcing
from
Colombia
10% - 15%
FGL Sports Ltd.
47

Canadian Apparel Retailer Environment
Compared to the U.S. apparel retailers Canadian
apparel retailers:
•Have chains with a fewer number of stores
•Are less dependent on their POS data for decision
making purposes
•Have not been able to build their private labels into
true private label brands
•Are not leveraging social media for marketing
•Have either no loyalty programs or the ones they
have do not effect a consumers shopping behavior
•Charge higher prices/have greater margins
48

Canadian Apparel Retailer Environment
Why are prices higher in Canada than U.S.?
•Protectionist policies between Canada and other
countries and between Provinces
•Less advantageous economies of scale
•Higher transportation costs
•Bilingual packaging requirements
•Higher mall rents
•Higher labor costs for retail workers
•Less competition
49

Trend’s in Canadian Apparel Retailing
• Increasing presence of international
retailers

American European
Trends in Canadian Apparel Retailing
Abercrombie & Fitch
Aeropostale
American Apparel
American Eagle
Ann Taylor
Anthropoligie
Banana Republic
BCBG MaxAzria
Bebe
Brooks Brothers
Carters
Children’s Place
David’s Bridal Shop
Eileen Fisher
Forever 21
Oakely
Old Navy
Pink
Talbots
The Gap
Tommy Bahama
Tommy Hilfiger
Tory Burch
True Religion
Urban Behavior
Urban Outfitters
Victoria Secret
7 For All Mankind
Benetton
Escada
H&M
Jack & Jones
Lacoste
Mango
Olsen Europe
Scotch & Soda
Steilmann
Top Shop
Zara
A. Increasing Presence of International Retailers
Gymboree
Hollister
Hot Topic
J.Crew
Jones New York
Juicy Couture
Justice
La Senza
Lucky Brand Jeans
Maurices
Mexx
Michael Kors
Moores
Motherhood
51

U.S. Retailers in Canada
52
2013 2014

• Increasing presence of international retailers
• Declining share of department stores and
independent specialty retailers
• Increasing share of private label apparel brands

Private Label Growth

43.6%
47.8% 47.4% 45.2% 44.1%
56.4%55.9%54.8%52.6%52.2%
2008 2009 2010 2011 2012
Canadian Total Retail Apparel
Market
Dollar Share
Private
Labels
National
Brands
2012 Dollars
Private Label’s Market Share
47.3%
66.2%
49.5%
Men Women Juvenile
55
Increasing Share of Private Label Brands

• Increasing share of private label apparels
• Emergence of new apparel sectors

Mass
Middle
Luxury
Apparel Segment
Canadian Apparel Market
Distribution of Retail Sales
57
Better
Fast Fashion
Source: Trendex

• “Fast Fashion” effecting all facets of the market

Growing Importance of Fast Fashion

Retailers Total Atlantic Quebec Ontario Praries
British
Columbia
Forever 21 25 - 5 12 4 4
H&M 61 2 14 30 8 5
Zara 19 - 7 7 3 2
Fast Fashion/Supply Chain
Canadian Fast Fashion Retailers
60

$424
$383 $364
$298
$247
2012 2011 2010 2009 2008
H&M Canada
Total Revenue C$ (Millions)
Total Sales +10.0% +5.2% +19.6% +20.3% +22.4%
Stores 61 58 55 52 43
Sales Per Store $6,956 $6,488 $6,494 $5,737 $5,766
(000)
61

• “Fast Fashion” effecting all facets of the market
• Small but increasing share for internet retailing

$1.1
Canada U.S.
$0.37
Canada U.S.
$34.2
$7.8
E-Commerce Sales of Apparel/
Accessories
2011 US$ Billions
E-Commerce Sales of
Footwear
2011 US$ Billions
63

Canadian Consumer Apparel Behavior
What can be said about a Canadian consumers apaprel
purchasing behavior:
•Price Sensitive
•Driven by promotional activity
•Looks for value
•Not loyal to any retailer
•Cross channel shopper
•Is not concerned with the country of origin
•Shops in the U.S., affected increasingly by U.S. apparel
trends/media

Canadian Market Entry Plan
Phases
I. Research the market / Identify a niche

Identify a possible niche in terms of
• Products
• Price Points
• Styling
• Fabrications
• Retail Channels / Retailers

142
$1,500
Units Dollars
Estimated Sales
(Millions)
27.2%
28.2%
39.7%
4.9%
Retailer Stores
Walmart 379
Sears 118
La Senza 159
La Vie En
Rose
91
The Bay 90
Penningtons 167
Addition Elle 163
Jacob 123
Lilliane
Lingerie
32
Costco 82
Dept
Stores
Discount
Stores
Apparel
Specialty
Stores
All
Others
Canadian Women’s Lingerie Market
2012
67
Largest Retailers
Channels

26,600
$990,100
Units Dollars
Estimated Sales (000)
13.8%
20.4%
62.4%
3.4%
Retailer Stores
Walmart 379
Sears 118
Mark’s 386
The Bay 90
Penningtons 167
Reitman’s 361
Winners 222
Old Navy 65
Bootlegger 95
Garage 147
Dept
Stores
Discount
Stores
Apparel
Specialty
Stores
All
Others
Women’s Jean Market
2012
68
Largest Retailers
Channels

20 62
Average Age
Average Price
CANADIAN WOMEN'S JEANS MARKET
Retailer Positioning
Low
Average
41
Sears Retail
The Bay
Wal-Mart
Winners
Mark's
Northern
Reflections
Old Navy
American
Eagle
Bluenotes
Stitches
Bootlegger
The Gap
Levi 1850
Holt Renfrew
Costco
Mexx
Le Chateau
High
Garage
Dynamite
Pennington’s

22,930
$696,260
Units Dollars
15.4%
29.9%
50.0%
4.7%
Retailer Stores
Walmart 379
Sears 118
Mark’s 386
The Bay 90
American
Eagle
94
Winners 222
Old Navy 65
Costco 82
Bluenotes 125
Bootlegger 95
Dept
Stores
Discount
Stores
Apparel
Specialty
Stores
All
Others
Men’s Jean Market
2012
70
Largest Retailers
Channels

19 59
Average Age
Average Price
CANADIAN MEN'S JEANS MARKET
Retailer Positioning
Low
Average
39
Sears Retail
Sears Catalog
The Bay
Wal-Mart
Harry Rosen
Winners
Mark's
Bluenotes
Bootlegger
The Gap
Levi 1850
Costco
Old Navy
Levi's Only Stores
Stitches
American
Eagle
High Holt Renfrew

1050
$33,000
Units Dollars
14.0%
18.3%
30.0%
28.2%
9.5%
Retailer Stores
Forzani Group 480
Sears 118
Walmart 379
Winners 222
The Bay 90
Mark’s 386
Mountain Co-
op
14
Roots 115
American
Eagle
80
Old Navy 65
Costco 82
Dept Stores
Discount
Stores
Apparel
Specialty
Stores
All Others
Men’s Swimsuit Market
2012
72
Largest Retailers
Channels
Sporting
Goods
Stores

1,980
$222
Units Dollars
25.6%
15.9%
43.5%
15.0%
Retailer Stores
Sears 118
Bikini Village 52
Walmart 379
The Bay 90
Forzani Group 480
Penningtons 167
La Vie En
Rose Aqua
23
Roots 115
Costco 82
Winners 222
Dept
Stores
Discount
Stores
Apparel
Specialty
Stores
All
Others
Women’s Swimsuit Market
2012
73
Largest Retailers
Channels

53,185
$248,380
Units Dollars
21.6%
46.8%
26.3%
5.3%
Retailer Stores
Walmart 379
Sears 118
Mark’s 386
The Bay 90
Costco 82
Winners 222
Giant Tiger 205
Simons 8
Real Canadian
Superstore
111
Dept
Stores
Discount
Stores
Apparel
Specialty
Stores
All
Others
Men’s Underwear Market
2012
74
Largest Retailers
Channels

Phases
I. Research the market / Identify a niche
II. Develop a USP

FACT
Critical to success in the Canadian
apparel market is identifying your
company’s USP and developing a
Canadian marketing plan
Phase II – Develop a USP

What is the need that we satisfy? What is our
Raison d’être?
What is our core competence? What are we
really good at?
Developing a Unique Selling Proposition (USP)
What can we legitimately claim to be better at
than anyone else?

Colombia’s Possible Strategic Advantages as An
Apparel Supplier to Canada:
•Proximity/speed to market (Just In Time Delivery)
•Flexible quantities/small runs
•Free Trade Agreement with Canada
•Reputation for denim and fashion men’s underwear
manufacturing and needlework capabilities
•Experience in dealing with U.S. apparel retailers
If your company cannot legitimately claim one or
more of these strategic advantages…
78

Save your Money
and
Stay Home
However, if your company has demonstrated a
competitive advantage(s) in the U.S. apparel
market it will almost certainly have the same
advantage(s) in the Canadian market.
79

Dealing with Canadian Prospects
If a Branded Manufacturer
•Offer exclusivity
•Offer marketing support money
•Offer to warehouse product in Canada
If a Private Label Manufacturer
•Always quote in U.S. dollars
•Emphasize small quantities/speed to
market/flexibility
80
In either case small minimums and speed to
market will be seen as a competitive advantage
Attendance at Canadian Trade Shows is not
necessarily a must

Top Canadian Prospects for Colombian Apparel
Manufacturers
(Excludes Foreign Retailers)
Product Area Top Second Third
Men’s Jeans Mark’s The Bay Sears
Women’s Jeans Mark’s Ricki’s Bootlegger
Women’s Swimwear Bikini Village La Vie En
Rose
Reitmans
Corp
Men’s Swimwear Bikini Village Forzani Mountain
Coop
Lingerie La Vie En
Rose
Lilliane Jacob
Men’s Underwear Holt Renfrew Simons Priape
Women’s
Casualwear
Mark’s Reitmans
Corp
Northern
Reflections
Men’s Casualwear Mark’s Sears The Bay
81

Options for a Colombian Apparel Manufacturer in Canada
•Supplier for Canadian retailers direct import programs
•Subcontractor for Canadian apparel manufacturers
•Agent/distributor for Canadian apparel suppliers in South
America
Bottom Line: Think Outside the “Box”
82

Bottom Line
The Canada – Colombia Free Trade Agreement
Offers Colombian Apparel Manufacturers a
unique opportunity to increase its exports.
The Colombian government has done its part,
it’s now up to Colombian apparel
manufacturers to take advantage of this new
opportunity.

THANK YOU
Email me : arputhaselvaraj@gmail.com
84

Canada Apparels Market-2015

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