The document discusses trends and sourcing strategies in the European garment industry. It provides an overview of the EU market, distribution channels, margins, and fashion cycles. It also examines sourcing strategies of EU buyers and how industry trends may present threats or opportunities. Key factors considered in choosing sourcing regions include costs, quality, social compliance, and product development capabilities. The presentation aims to help identify market opportunities and discusses contacting buyers through trade fairs, direct marketing, and transparent production processes.

1. Trends and
Sourcing strategies
of the European
garment industry
EU Market entry
garments
Cbi-Inexmoda-Proexport
Medellin 4 August
Cali 5 August
Bogota 6 August
By Josephine Koopman

2. Insight in trends and sourcing strategies
in the garment industry
Identify market opportunities
CBI| Josephine Koopman| 8-2014
Our Goal for this session

3. 1. Sourcing strategies
2. Industry trends threat or opportunity?
3. Sales activities
CBI| Josephine Koopman| 8-2014
Agenda: Trends and Sourcing strategies of the
European garment industry

4. o EU Market
o Type of buyers/distribution channels
o Margins
o Fashion cycle
CBI| Josephine Koopman| 8-2014
Background sourcing strategies

5. Sourcing strategies: Steps
Sourcing steps
• Garment needed
• Country as general indication
• Strategic decisions of company
• Supplier assessment
CBI| Josephine Koopman| 8-2014

6. Sourcing strategies: What to source where?
CBI| Josephine Koopman| 8-2014

7. CBI| Josephine Koopman| 8-2014
global
sourcing
EU-­‐15
Top
15
Apparel
import
shi9s
2000-­‐2011-­‐2013
Rank
2000
2004
2008
2011
2013
1
China
China
China
China
China
2
Turkey
Turkey
Turkey
Turkey
Bangladesh
3
Hong
Kong
Bangladesh
Bangladesh
Bangladesh
Turkey
4
Tunisia
India
India
India
India
5
Bangladesh
Tunisia
Tunisia
Tunisia
Morocco
6
Inida
Morocco
Morocco
Morocco
Tunesia
7
Morocco
Hong
Kong
Viet
Nam
Viet
Nam
Viet
Nam
8
Indonesia
Indonesia
Indonesia
Pakistan
Pakistan
9
Thailand
Pakistan
Sri
Lanka
Sri
Lanka
10
Korea,
Rep.
Thailand
Pakistan
Indonesia
11
Pakistan
Sri
Lanka
Thailand
Thailand
12
Sri
Lanka
Viet
Nam
Hong
Kong
Cambodia
13
Viet
Nam
Korea,
Rep
Switserland
Malaysia
14
Malaysia
Switserland
Malaysia
Switserland
15
MauriTus
Malaysia
Cambodia
FYR
Macedonia
source:
UN
Comtrade2000-­‐2011/
2013
Kurt
Salmon

8. New sourcing destinations
Ethiopia
Cambodia
Myanmar
Poland (again)
CBI| Josephine Koopman| 8-2014

9. Which factors are considered most when buyers
choose a sourcing region or partner ?
CBI| Josephine Koopman| 8-2014

10. - Costs
- Lead time
- Quality program
- Social compliance
- Product development capability
- Established region
- Accessibility of raw materials and integrated suppliers
- Specialist suppliers for niche markets
- Flexible suppliers: Smaller quantity higher quality
- Additional services (logistics, warehousing)
- Reduction of geographic destinations
- Reduction of suppliers
CBI| Josephine Koopman| 8-2014
Factors Considered Most When Choosing a
Sourcing Region/Partner

11. In search of lowest production costs
- labor costs
- import-export duty (Free trade
Agreements)
- Material prices
- Volume discounts
- Logistic savings!
- Better flow Planning
- Storage options
Be transparent!
CBI| Josephine Koopman| 8-2014
Sourcing strategies: costs

12. Sourcing strategies: specialist/niche
CBI| Josephine Koopman| 8-2014
Short lead time
specialist

13. Sourcing strategies: Type of producer
CM(T)
supplier
Ready
made
garment
supplier
Integrated
supplier
Fabrics,
patterns,
additional
servces
Integrated
supplier
handling
warehousing
CBI| Josephine Koopman| 8-2014

14. Sourcing strategy: Product development capability
Who has developed a sample
collection?
Josephine Koopman, CBI

15. Sourcing strategies
Even after a positive supplier assessment you can be
out…….
• Reduction of geographic destinations
• Reduction of suppliers
CBI| Josephine Koopman| 8-2014

16. Assignment
POSITION Colombia TO OTHER COMPETING COUNTRIES,
MAKE YOUR OWN COUNTRY SWOT FOR YOUR PRODUCTGROUP
SWOT= STRENGHT, WEAKNESS, OPPORTUNITIES, THREATS
CBI| Josephine Koopman| 8-2014

17. Industry Trends: threat or opportunity for you?
• Growing price competition, increased demand for
fashion products against low prices
• Looking for alternatives for China and Bangladesh
• Hypermarkets also selling fashion
• Fashion Cycles get shorter, shorter delivery times
and smaller volumes
CBI| Josephine Koopman| 8-2014

18. CBI| Josephine Koopman| 8-2014
• Actions/promotions or sales increased percentage of
total turnover
• Growing internet sales
• Reduced quantities per style
• Higher standards of quality
Industry Trends: threat or opportunity for you?

19. CBI| Josephine Koopman| 8-2014
2013
- Minor increase hosiery spending
- Average price lingerie up
- Shaping briefs
Source INSTITUT FRANÇAIS DE LA MODE
Industry Trends: threat or opportunity for you?

20. Industry trends: Corporate
Social Responsibility
Josephine Koopman, CBI
How sustainable is the product you
are offering?

21. Josephine Koopman, CBI
What can
You offer

22. • Silver generation
AGED 50-70
OLD 70+
CBI| Josephine Koopman| 8-2014
British supermodel 70+
Daphne Selfe, 85, 2014
Industry Trends: threat or opportunity for you?

23. Product trends
• Fuller bra cup sizes
• Plus-size market
• Sustainable market
• Male market
• Customized market
• Functional clothing
• Easy care clothing
Josephine Koopman
www.koopman-works.nl |
23

24. • Middle segment declines
• Budget available for open to buy
" Repeat orders
" Trend colours
" Flash collections
CBI| Josephine Koopman| 8-2014
Industry Trends: threat or opportunity for you?

25. Facts and threat
• More bankruptcy
• Profits and margins declined
• Difficult access to credit
• Last minute ordering, with risk passed on to
suppliers
• Last moment cancellation of placed orders
CBI| Josephine Koopman| 8-2014

26. Agenda training session Sourcing strategies
1. Present situation recap
2. Sourcing strategies
3. Industry trends threat or opportunity?
4. Sales activities
CBI| Josephine Koopman| 8-2014

27. CBI| Josephine Koopman| 8-2014
……….

28. Sales activities
CBI| Josephine Koopman| 8-2014

29. Assignment
How can you get in contact with the buyer
CBI| Josephine Koopman| 8-2014
Contact the buyer

30. Depends on your product range, your specialty.
- Choose your trade fair
- Network
- Direct Marketing: Newsletter, samples, phone, mail
- Get publicity on a fashion community, or fashion journal
- Advertising
- Sales office/agent
- Personal visits: 2nd phase
- Free publicity: Certifications-articles
- Internet forum
- Approach online stores that offer special collections
- ….
CBI| Josephine Koopman| 8-2014
How to reach the buyer

31. Trade Fairs
Check target group
- Interfiliere
- Salon International de la Lingerie
- CPM Body&Beach
- Who’s Next
- Zoom by Fatex
- ………….
CBI| Josephine Koopman| 8-2014

32. Some last suggestions
- Transparent production and distribution process
- Updated sample collection
- Inform your customer
- Make your products as sustainable as possible
and communicate this
- Respond well and fast on customers requests
CBI| Josephine Koopman| 8-2014

33. Market
Intelligence
PlaYorm
• hZp://www.cbi.eu/markeTntel_plaYorm
Centre for the Promotion of
Imports from developing countries
| August, 2014
33

34. Centre for the Promotion of
Imports from developing countries
| August, 2014
34

35. Centre for the Promotion of
Imports from developing countries
| August, 2014
35
Market intelligence example

36. Centre for the Promotion of
Imports from developing countries
| August, 2014
36
Fashion forecasts
for free!

37. Insight in trends and sourcing strategies
in the garment industry
Identify market opportunities
CBI| Josephine Koopman| 8-2014
Our Goal for this session

38. EU market access: an introduction
9.00-­‐9.30
IntroducTon
IntroducTon
of
the
parTcipants
The
European
market
Trade
channels:
Players,
margins
and
fashion
cycle
(part
1)
10.30-­‐11.00
Coffee/tea
break
11.00-­‐12.30
Trade
channels:
Players,
margins
and
fashion
cycle
(part
2)
Sourcing
strategies
of
EU
buyers,
industry
trends:
treats
or
opportuniTes?
12.30-­‐13.30
Lunch
13.30-­‐14.30
IntroducTon
CBI
and
new
Body
wear
programme
TesTmonial
14.30-­‐15.00
Coffee/tea
break
15.00-­‐16.00
Discussion
–
ApplicaTon
form
Centre for the Promotion of
Imports from developing countries
| August, 2014
38

39. Thank you for your attention!
Any questions?
CBI| Josephine Koopman| 8-2014