5. el sector de confecciones en canadá


Published on

Published in: Business, Lifestyle
  • Be the first to comment

  • Be the first to like this

5. el sector de confecciones en canadá

  1. 1. Colombian PresentationThe CanadianApparel MarketA Guide forPotentialColombian ApparelExportersPrepared By1
  2. 2. Colombian Presentation 2Purpose of todays presentationIntroductionDescribe what a Colombian apparel supplierhas to do in order to enter and be competitivein the Canadian apparel marketIntroduce Trendex North AmericaReview the history of Colombian apparelexports to CanadaOverview the Canadian retail apparel marketIdentify potential opportunities for Colombianapparel manufacturers in Canada
  3. 3. Colombian Presentation 3An apparel marketing intelligence andconsulting company focusing on the Canadianand Mexican apparel markets.As an industry specialist Trendex offerscompanies unique value added insights basedon both working with apparel retailers andsuppliers and its continuous propriety researchinformation services.www.trendexna.comTrendex North America
  4. 4. Colombian PresentationSource: Statistics Canada/ CIA Fact BookWhat is Canada?4Canada WorldRankColombia WorldRankPopulation (000) 34,568 #37 45,370 #29Yearly Pop Growth Rate 0.78 #136 1.13 #104GDP (U.S.$Trillions 2012) $1.4 #14 $0.5 #29GDP Per Capita (U.S.$2012) $41,500 #27 $10,700 #112Retail Apparel Sales (US$Mill) $27,420 - $9,600 -Apparel Sales per Person (US$) $793 - $211 -
  5. 5. Colombian PresentationSource: Statistics CanadaLargest ProvincesOntario 13,472,000Quebec 8,028,000British Columbia4,606,000Alberta 3,847,000Largest Metropolitan MarketsToronto 5,839,000Montreal 3,909,000Vancouver 2,420,000Calgary 1,265,000Ottawa 1,259,900Edmonton 1,196,340What is Canada?5
  6. 6. Colombian Presentation 6CANADIAN TOTAL APPAREL IMPORTS($ Millions)Source: Statistics Canada$7,001$7,465$7,874$8,429 $8,260 $8,231$9,0432005 2006 2007 2008 2009 2010 2011 20122012/2011Change+0.8%$9,118Canadian Apparel Importing Patterns
  7. 7. Colombian Presentation 70.8%37.5%10.9% 10.1% 7.7% 5.9% 5.8%4.4%-7.3%-10.8%Source: Statistics CanadaCambodia BangladeshHondurasTotalImportsChinaVietnam IndiaImports of Apparel Into CanadaJanuary – December 2012Percent ChangePakistan14.6%MexicoTurkeyUSACanadian Apparel Importing Patterns
  8. 8. Colombian Presentation 8$4,279$1,011$592 $536 $398 $322 $288 $241 $197 $119China Bangladesh UnitedStatesCambodia Vietnam Mexico India Indonesia Italy PakistanIMPORTS OF APPAREL INTO CANADAJanuary – December 2012($ Millions)Source: Statistics CanadaCanadian Apparel Importing Patterns
  9. 9. Colombian PresentationCanadian Apparel Importing PatternsLargest Latin America Apparel Exports to Canada2012 C$ (000)Country Amount% Change2012/2011Mexico $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%DominicanRepublic$19,548 +24.2%Colombia $9,295 +16.1%Costa Rica $5,914 -3.8%9
  10. 10. Colombian Presentation 10Colombia’s Apparel Exports to CanadaCanadian Dollars (000)Source: Statistics Canada$7,991$7,010 $7,194$8,005$9,2952008 2009 2010 2011 2012Canadian Apparel Importing Patterns% Change2012/2011+16.1%
  11. 11. Colombian Presentation45.1%38.0%16.8%0.2%Distribution of ExportsCanadian Apparel Importing PatternsHosiery/Workwear/All OtherWomen’s/Girl’sMen’s/Boy’sColombia’s Apparel Exports to Canada2012 Canadian Dollars (000)Children’s11
  12. 12. Colombian PresentationCanadian Apparel Importing PatternsColombia’s Apparel Exports to CanadaCanadian Dollars (000)Segment 2008 2009 2010 2011 2012% Change2012/2008Men’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
  13. 13. Colombian PresentationCanadian Apparel Importing PatternsLargest Latin America Apparel Exporters to Canada2012 Dollars (Millions)13Country SalesMexico $194Honduras $56Haiti $22El Salvador $18Nicaragua $17DominicanRepublic$14Guatemala $13Peru $12Colombia $4.2Country SalesMexico $62Honduras $15Guatemala $11Peru $9El Salvador $6Nicaragua $5Colombia $3.7DominicanRepublic$3Country SalesElSalvador$0.6Guatemala $0.5Mexico $0.4Honduras $0.2Colombia $0.2Peru $0.1Nicaragua $0.1DominicanRepublic$0.1Country SalesMexico $65Honduras $12ElSalvador$12Peru $8Nicaragua $3DominicanRepublic$2CostaRica$2Colombia $1.4Brazil $0.8Men Women Juvenile All Other
  14. 14. Colombian Presentation 14$9,295$7,991$7,010 $7,193$8,005$1,449$314$561$139$1772008 2009 2010 2011 2012Total ExportsTotal ImportsColombia APPAREL BALANCE OF TRADE WITHCANADAThousands of DollarsSource:Canadian Apparel Importing Patterns
  15. 15. Colombian Presentation 15What can be said about Canadian Apparel Manufacturers?• The number of manufacturers and their sales havedecreased by 35% - 45% over the past ten yearsCanadian Apparel Suppliers
  16. 16. Colombian Presentation 16Canadian Apparel Manufacturing SalesSeasonally Adjusted (Millions of Dollars)$3,610$2,646$2,213 $2,296 $2,246$1,9332007 2008 2009 2010 2011 2012% Change (N.A) (-27.2%) (-16.4%) (+3.8%) (-2.2%) (-13.9%)Previous YearCanadian Apparel Suppliers
  17. 17. Colombian Presentation 17What can be said about Canadian Apparel Manufacturers?• The number of manufacturers and their sales havedecreased by 35% - 45% over the past ten years• Have changed from manufacturers to suppliers• Are focusing increasingly on exporting with mixedsuccess• Have become more marketing oriented• Are totally dependent on the U.S. market, as they havebeen unable to develop consistent sales in othermarketsCanadian Apparel Suppliers
  18. 18. Colombian Presentation 18$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$1,3052005 2006 2007 2008 2009 2010 2011 2012Total ExportsUnited StatesExportsU.S. Share (89%) (88%)(91%) (85%)TOTAL CANADIAN APPAREL EXPORTS($ Millions)Source: Statistics Canada(83%) (81%) (80%) (80%)Canadian Apparel Suppliers
  19. 19. Colombian PresentationCanadian Apparel SuppliersLargest Canadian Apparel Suppliers2012Company Products Channel CountryGildan Underwear Discount U.S./CanadaPeerless Men’sSuits/sportcoatsDepartment U.S.Nygard Women’s coordinates Dept/Spec/Disc Canada/U.S.Levi Strauss Canada Jeans/casual pants Dept/Spec/Disc CanadaPoint Zero Sportswear Dept/Disc U.S.Roots Sportwear/activewear Dept/Spec Canada/U.S.Hanesbrand Canada Lingerie/underwear Dept/Spec/Disc CanadaWarnaco Canada Jeans/lingerie Dept/Spec/Disc CanadaFruit of the LoomCanadaLingerie/underwear Discount CanadaCanadian Goose Outerwear Dept/Spec Canada/Developed CountriesWestern Glove Jeans/outerwear Dept/Spec Canada/U.S.Stanfield Underwear Dept/Disc Canada/U.S.19
  20. 20. Colombian PresentationMerchandise Category ExampleFur coats Many small suppliersWinter outerwear Canadian GooseMid priced suits and sport coats PeerlessMid and better priced dress slacks BallinWomen’s mid priced coordinates NygardWomen’s mid/better priced women’slingerieAdorable/ArianneWomen’s tights/pantyhose Doris HosieryMen’s underwear StanfieldCanadian Domestic Apparel Manufacturing BaseCanadian Apparel Suppliers20
  21. 21. Colombian Presentation 2131435115UnitedStatesCanada Mexico$15.7$1.4 $1.8UnitedStatesCanada MexicoNAFTA MARKET OVERVIEW2012Population (Millions) GDP (U.S$Trillions)Nafta Overview
  22. 22. Colombian Presentation$203,740$27,420 $23,700UnitedStatesCanada MexicoNAFTA OverviewTotal Retail Apparel Market2012 (US$ Millions)22
  23. 23. Colombian Presentation 23TOTAL APPAREL MARKET2012 Dollar Sales29.5%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 MexicoDiscount StoresSporting Goods StoresDepartment StoresApparel Specialty StoresAll Other OutletsNAFTA Overview
  24. 24. Colombian Presentation 24CANADIAN RETAIL CHANNEL DEFINITIONSDepartmentStoresDiscountStoresBetter ClothingChainsOtherClothing ChainsOther NotableStoresSearsThe BayWalmartAubiererieSuperstoreTargetWinnersGiant TigerCroteauHolt RenfrewHarry RosenFemme de CarrierH&MMark’sLauraNorthern ReflectionsReitman’sSimonsZaraCostcoSport Chek/Experts*Store OnlyNAFTA Overview
  25. 25. Colombian PresentationMásJovenMásViejoEdad MediaIngreso FamiliarMERCADO TOTAL MEXICANO DEROPA PARA DAMAS2012Posicionamiento del DetallistaBajoAltoMedioWal-MartBershkaC&ALiverpoolSuburbiaSearsCoppelPalacio de HierroZaraMediaThe BaySorianaComercial MexicanaBodega AurreráAvonAndrea25IlusionPrice ShoesVicky FormMartíSears Canadá
  26. 26. Colombian PresentationTOTAL APPAREL MARKET2012 Dollar SalesLargest RetailersNAFTA Overview26CanadaWalmart 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 StatesWalmart 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%MexicoSuburbia 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%
  27. 27. Colombian PresentationHow is Canadian apparel retailing different fromAmerican apparel retailing?Compared to the United States, Canda:• Has sales disproportionately smaller at the better endof the market• Has fewer channels of distribution• Has a higher degree of retail concentration• Has more promotional activity• Has a higher percentage of independent apparelretailers (especially in Quebec)27NAFTA Overview
  28. 28. Colombian Presentation$15,232$8,700$1,503 $1,321 $666TotalMarketWomen Men Girls Boys InfantsCANADIAN TOTAL APPAREL MARKET2012 Estimated Canadian Retail Dollar Sales(C$Millions)$27,422Canadian Retail Apparel Market28
  29. 29. Colombian Presentation 29TOTAL CANADIAN APPAREL MARKETRetail Dollar SalesJanuary - December18.0%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 2012Discount StoresSporting Goods StoresDepartment StoresApparel Specialty StoresAll Other OutletsCanadian Retail Apparel Market
  30. 30. Colombian PresentationTotal Men Women JuvenileDepartment 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 Market2012 Retail Dollar Share30Canadian Retail Apparel Market
  31. 31. Colombian Presentation 31TOTAL CANADIAN APPAREL MARKETJanuary - December 2012Retail Dollar SalesRetail Concentration Largest Ten RetailersTop TenRetailers All OtherRetailersWalmartSears (Total)The BayMark’sWinnersReitman’sOld NavyH&MGapMoores46%54%10.1%9.5%8.1%5.8%4.3%3.8%3.6%3.3%3.1%2.5%Canadian Retail Apparel Market
  32. 32. Colombian PresentationMen Women JuvenileMark’s Sears WalmartSears Walmart ZellersThe Bay The Bay SearsWalmart Winners Children’s PlaceMoores Reitmans WinnersZellers H&M Old NavyWinners La Senza SuperstoreCanada’s Largest Apparel Retailers2012 Retail Sales32Canadian Retail Apparel Market
  33. 33. Colombian PresentationYoung OlderIncomeCANADIAN WOMEN’S APPAREL MARKET2012LowAverageAverageHighWinnersThe GapOld NavyH&MWalmartSearsSuperstoreMark’sThe BayAgePenningtonsAeropostaleIndependent RetailersHolt RenfrewReitmansCostcoBanana RepublicLauraLe Chateau33GarageDynamiteCanadian Retail Apparel MarketMexx
  34. 34. Colombian PresentationYoung OlderIncomeCANADIAN MEN’S APPAREL MARKET2012LowAverageAverageHighWinnersThe GapOld NavySport ChekWalmartSears RetailSuperstoreMark’sThe BayAgeCostcoAmerican EagleHarry RosenHolt RenfrewMooresZellersTip TopBanana RepublicEddie BauerLe Chateau34Canadian Retail Apparel Market
  35. 35. Colombian PresentationRetailer StoresMark’sReitmansLe ChateauSuzy ShierLa Senza*Northern Reflection*PenningtonsSmart SetGarageRickis*StichesLa Vie En RoseMoores*Addition ElleJacobTip TopMexx*384362241190185160152150147142136128118116102999135Canadian Retail Apparel MarketLargest Apparel Specialty Chains2012 Stores*Foreign Owned
  36. 36. Colombian PresentationMen Women Juvenile UnisexMark’s 384Moores 119Tip Top 99Randy River 39International Clothiers 32Jack & Jones 31Ernest 27George Richards 23Mr. Big & Tall 19Reitman’s 362Suzy Shier 190La Senza 185Northern Reflections 160Penningtons 152Smart Set 150Garage 147Rickis 142La Vie En Rose 128Children’s Place 85Gymboree 39Bonnie Togs 37Clement 30Carters/Osh Kosh 28Souris Mini 28OK Kids 24Siblings 23Le Chateau 241Stiches 136Bluenotes 125Warehouse One 113Bootlegger 93Mexx 91Danier Leather 89Urban Planet 8836Canadian Retail Apparel MarketLargest Apparel Specialty Chains2012 Stores
  37. 37. Colombian Presentation% of Dollar SalesMerchandise Category 2008 2009 2010 2011 2012Mens Outerwear 12.2% 12.9% 14.3% 14.4% 13.9%Mens Suits, Sport Coats 9.2% 8.9% 8.6% 9.4% 9.2%Mens Pants and Tops 55.3% 54.4% 53.3% 52.8% 54.3%Mens Underwear,Sleepwear & Socks 8.3% 8.3% 8.1% 7.2% 7.5%Other Mens Clothing 5.7% 5.9% 6.1% 5.8% 5.6%Mens Accessories 9.3% 9.6% 9.6% 10.4% 9.5%100% 100% 100% 100% 100%Source: Statistics Canada37Canadian Retail Apparel MarketCanadian Men’s Apparel SalesRetail Dollar Sales
  38. 38. Colombian Presentation% of Dollar SalesMerchandise Category 2008 2009 2010 2011 2012Womens Outerwear 10.5% 8.8% 9.1% 10.3% 10.5%Womens Dresses & Suits 7.5% 8.1% 7.6% 7.3% 7.6%Womens Skirts, Pants & Tops 56.8% 57.5% 57.2% 57.0% 55.2%Womens Hosiery 2.8% 2.7% 2.5% 2.5% 2.5%Womens Lingerie 10.9% 11.1% 11.2% 10.4% 9.9%Other Womens Clothing 3.3% 3.7% 4.3% 4.5% 5.1%Womens Accessories 8.2% 8.1% 8.1% 8.0% 9.2%100% 100% 100% 100% 100%Source: Statistics CanadaCanadian Retail Apparel MarketCanadian Women’s Apparel SalesRetail Dollar Sales38
  39. 39. Colombian PresentationCanadian Apparel Retailer ProfileDepartment StoreSales (2011) C$4.3 BillionStores 118 Department Stores48 Sears Home Stores269 Sears Dealer Stores11 Outlet StoresHeadquartered Tornoto, Ontario(416) 362-1711www.sears.caStrengths Women’s Intimate Apparel,Women’s Plus and Petitesizes, Men’s Workwear,Private Label brandsNational Brand/PrivateLabel Apparel Ratio45%/55%Private Labels Nevada, Jessica, ArnoldPalmer, Kenise, Mac & Jac,ProtocolPossibility of Sourcingfrom Colombia30% - 40%Sears Canada39
  40. 40. Colombian PresentationCanadian Apparel Retailer ProfileDepartment StoreSales (2011) C$3.2 BillionStores 90Headquartered Toronto, Ontario(905) 792-4400www.hbc.comStrengths Men’s SuitsBrand SelectionPrivate LabelsJoint Venture with TopShop/Top ManNationalBrand/Private LabelApparel Ratio90%/10%Private Labels Hudson North, Black &Brown, Hudson BaySignaturePossibility of Sourcingfrom Colombia20% - 25%The Bay40
  41. 41. Colombian PresentationCanadian Apparel Retailer ProfileDiscount StoreSales (2011) U.S.$22.4 BillionStores 209 Walmart Supercenters170 Walmart StoresHeadquartered Toronto, Ontario(905) 821-2111www.walmartcanada.caStrengths Apparel basicsChildrenswearLow price perceptionNational Brand/PrivateLabel Apparel Ratio10%/90%Private Labels George, g21, Athletic WorksPossibility of Sourcingfrom Colombia10% - 15%Walmart Canada41
  42. 42. Colombian PresentationCanadian Apparel Retailer ProfileApparel Specialty Store Reitman’s CanadaMontreal Quebecwww.reitmans.caSales (2012) C$1.1 BillionStores Total 959 StoresStores Banner Type363 Reitman’s Women’s167 Pennington’s Women’s PlusSize163 Addition Elle Women’s PlusSize68 RW & Co. Unisex152 Smart Set YoungerWomen76 Thyme MaternityNational Brand/Private Label Ratio0%/100%Possibility of Sourcingfrom Colombia5% - 10%42
  43. 43. Colombian PresentationCanadian Apparel Retailer ProfileApparel Specialty StoreSales (2011) C$1.02 BillionStores 386Headquartered Calgary, Alberta(403) 255-9220www.marks.comStrengths Men’s Causalwear,Men’s Workwear,Scrubs/healthcare apparel,Work/safety footwear,Product InnovationNational Brand/PrivateLabel Apparel Ratio10%/90%Private Labels Denver Hays, Wind River,Clothes That Work, Dakota,Mountain Gear, Work ProPossibility of Sourcingfrom Colombia15% - 20%Mark’s43
  44. 44. Colombian PresentationCanadian Apparel Retailer ProfileApparel Specialty StoreSales (2011) C$750 MillionStores 8Headquartered Quebec City, Quebec(418) 692-3630www.simons.caStrengths Casual WearPrivate label18 – 29 year old segmentNationalBrand/Private LabelApparel Ratio10%/90%Private Labels Simons, Contemporaine,Guepiere, Le31, LingerietwikPossibility of Sourcingfrom Colombia10% - 15%Simons44
  45. 45. Colombian PresentationCanadian Apparel Retailer ProfileApparel Specialty StoreSales (2011) C$400 MillionStores La Vie En Rose 91La Vie En Rose Aqua 23La Vie En Rose Outlets 40Headquartered Montreal, Quebec(514) 256-9446www.lavieenrose.comStrengths Private Label LingerieSwimwearNationalBrand/PrivateLabel ApparelRatio5%/95%Private Labels La Vie En RosePossibility ofSourcing fromColombia20% - 25%La Vie En Rose45
  46. 46. Colombian PresentationCanadian Apparel Retailer ProfileApparel Specialty StoreSales (2011) C$44 MillionStores 52Headquartered Ste-Julie Quebec(450) 449-1310www.bikinivillage.comStrengths Swimwear (largestswimwear specialtychain), BeachwearNationalBrand/Private LabelApparel Ratio85%/15%Private Labels Bikini LoungePossibility ofSourcing fromColombia10% - 15%Groupe Bikini Village Inc46
  47. 47. Colombian PresentationCanadian Apparel Retailer ProfileSporting Goods StoreSales (2011) C$1.55 BillionStores Total 534Athlete’s World 48Atmosphere 62Sport Chek 165Sport Mart 41Sports Experts 71The Tech Shop 3National Sports 18Intersports 47Head-quarteredCalgary, Alberta(403) 717-1400www.fglsports.comStrengths Number of Stores Largest seller ofsports apparelNationalBrand/Private LabelApparelRatio85%/15%PrivateLabelsFireflyPossibility ofSourcingfromColombia10% - 15%FGL Sports Ltd.47
  48. 48. Colombian PresentationCanadian Apparel Retailer EnvironmentCompared to the U.S. apparel retailers Canadianapparel retailers:• Have chains with a fewer number of stores• Are less dependent on their POS data fordecision making purposes• Have not been able to build their private labelsinto true private label brands• Are not leveraging social media for marketing• Have either no loyalty programs or the onesthey have do not effect a consumers shoppingbehavior• Charge higher prices/have greater margins48
  49. 49. Colombian PresentationCanadian Apparel Retailer EnvironmentWhy are prices higher in Canada than U.S.?• Protectionist policies between Canada and othercountries and between Provinces• Less advantageous economies of scale• Higher transportation costs• Bilingual packaging requirements• Higher mall rents• Higher labor costs for retail workers• Less competition49
  50. 50. Colombian Presentation 50Trend’s in Canadian Apparel Retailing• Increasing presence of internationalretailers
  51. 51. Colombian PresentationAmerican EuropeanTrends in Canadian Apparel RetailingAbercrombie & FitchAeropostaleAmerican ApparelAmerican EagleAnn TaylorAnthropoligieBanana RepublicBCBG MaxAzriaBebeBrooks BrothersCartersChildren’s PlaceDavid’s Bridal ShopEileen FisherForever 21OakelyOld NavyPinkTalbotsThe GapTommy BahamaTommy HilfigerTory BurchTrue ReligionUrban BehaviorUrban OutfittersVictoria Secret7 For All MankindBenettonEscadaH&MJack & JonesLacosteMangoOlsen EuropeScotch & SodaSteilmannTop ShopZaraA. Increasing Presence of International RetailersGymboreeHollisterHot TopicJ.CrewJones New YorkJuicy CoutureJusticeLa SenzaLucky Brand JeansMauricesMexxMichael KorsMooresMotherhood51
  52. 52. Colombian PresentationU.S. Retailers in Canada522013 2014
  53. 53. Colombian Presentation 53• Increasing presence of international retailers• Declining share of department stores andindependent specialty retailers• Increasing share of private label apparel brandsTrend’s in Canadian Apparel Retailing
  54. 54. Colombian Presentation 54Private Label GrowthTrend’s in Canadian Apparel Retailing
  55. 55. Colombian Presentation43.6%47.8% 47.4% 45.2% 44.1%56.4%55.9%54.8%52.6%52.2%2008 2009 2010 2011 2012Canadian Total Retail ApparelMarketDollar SharePrivateLabelsNationalBrandsCanadian Retail Apparel Market2012 DollarsPrivate Label’s Market Share47.3%66.2%49.5%Men Women Juvenile55Increasing Share of Private Label BrandsTrend’s in Canadian Apparel Retailing
  56. 56. Colombian Presentation 56• Increasing presence of international retailers• Declining share of department stores andindependent specialty retailers• Increasing share of private label apparels• Emergence of new apparel sectorsTrend’s in Canadian Apparel Retailing
  57. 57. Colombian Presentation23% 21%2% 5%67% 60%2% 6%6% 8%2009 2013(E)MassMiddleLuxuryApparel SegmentCanadian Apparel MarketDistribution of Retail Sales57BetterFast FashionSource: TrendexTrend’s in Canadian Apparel Retailing
  58. 58. Colombian Presentation 58• Increasing presence of international retailers• Declining share of department stores andindependent specialty retailers• Increasing share of private label apparels• Emergence of new apparel sectors• “Fast Fashion” effecting all facets of the marketTrend’s in Canadian Apparel Retailing
  59. 59. Colombian Presentation 59Trends in Canadian Apparel RetailingGrowing Importance of Fast Fashion
  60. 60. Colombian PresentationRetailers Total Atlantic Quebec Ontario PrariesBritishColumbiaForever 21 25 - 5 12 4 4H&M 61 2 14 30 8 5Zara 19 - 7 7 3 2Fast Fashion/Supply ChainCanadian Fast Fashion Retailers60Trends in Canadian Apparel Retailing
  61. 61. Colombian Presentation$424$383 $364$298$2472012 2011 2010 2009 2008H&M CanadaTotal Revenue C$ (Millions)Total Sales +10.0% +5.2% +19.6% +20.3% +22.4%Stores 61 58 55 52 43Sales Per Store $6,956 $6,488 $6,494 $5,737 $5,766(000)61Trend’s in Canadian Apparel Retailing
  62. 62. Colombian Presentation 62• Increasing presence of international retailers• Declining share of department stores andindependent specialty retailers• Increasing share of private label apparels• Emergence of new apparel sectors• “Fast Fashion” effecting all facets of the market• Small but increasing share for internet retailingTrend’s in Canadian Apparel Retailing
  63. 63. Colombian Presentation$1.1Canada U.S.$0.37Canada U.S.$34.2$7.8E-Commerce Sales of Apparel/Accessories2011 US$ BillionsE-Commerce Sales ofFootwear2011 US$ Billions63Trend’s in Canadian Apparel Retailing
  64. 64. Colombian Presentation 64Canadian Consumer Apparel BehaviorWhat can be said about a Canadian consumers apaprelpurchasing 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
  65. 65. Colombian Presentation 65Canadian Market Entry PlanPhasesI. Research the market / Identify a niche
  66. 66. Colombian Presentation 66Identify a possible niche in terms of• Products• Price Points• Styling• Fabrications• Retail Channels / RetailersCanadian Market Entry Plan
  67. 67. Colombian Presentation142$1,500Units DollarsEstimated Sales(Millions)27.2%28.2%39.7%4.9%Retailer StoresWalmart 379Sears 118La Senza 159La Vie EnRose91The Bay 90Penningtons 167Addition Elle 163Jacob 123LillianeLingerie32Costco 82DeptStoresDiscountStoresApparelSpecialtyStoresAllOthersCanadian Women’s Lingerie Market201267Largest RetailersChannelsCanadian Market Entry Plan
  68. 68. Colombian Presentation26,600$990,100Units DollarsEstimated Sales (000)13.8%20.4%62.4%3.4%Retailer StoresWalmart 379Sears 118Mark’s 386The Bay 90Penningtons 167Reitman’s 361Winners 222Old Navy 65Bootlegger 95Garage 147DeptStoresDiscountStoresApparelSpecialtyStoresAllOthersWomen’s Jean Market201268Largest RetailersChannelsCanadian Market Entry Plan
  69. 69. Colombian Presentation 6920 62Average AgeAverage PriceCANADIAN WOMENS JEANS MARKETJanuary - December 2012Retailer PositioningLowAverage41Sears RetailThe BayWal-MartWinnersMarksNorthernReflectionsOld NavyAmericanEagleBluenotesStitchesBootleggerThe GapLevi 1850Holt RenfrewCostcoMexxLe ChateauHighGarageDynamitePennington’s
  70. 70. Colombian Presentation22,930$696,260Units DollarsEstimated Sales (000)15.4%29.9%50.0%4.7%Retailer StoresWalmart 379Sears 118Mark’s 386The Bay 90AmericanEagle94Winners 222Old Navy 65Costco 82Bluenotes 125Bootlegger 95DeptStoresDiscountStoresApparelSpecialtyStoresAllOthersMen’s Jean Market201270Largest RetailersChannelsCanadian Market Entry Plan
  71. 71. Colombian Presentation 7119 59Average AgeAverage PriceCANADIAN MENS JEANS MARKETJanuary - December 2012Retailer PositioningLowAverage39Sears RetailSears CatalogThe BayWal-MartHarry RosenWinnersMarksBluenotesBootleggerThe GapLevi 1850CostcoOld NavyLevis Only StoresStitchesAmericanEagleHigh Holt Renfrew
  72. 72. Colombian Presentation1050$33,000Units DollarsEstimated Sales (000)14.0%18.3%30.0%28.2%9.5%Retailer StoresForzani Group 480Sears 118Walmart 379Winners 222The Bay 90Mark’s 386Mountain Co-op14Roots 115AmericanEagle80Old Navy 65Costco 82Dept StoresDiscountStoresApparelSpecialtyStoresAll OthersMen’s Swimsuit Market201272Largest RetailersChannelsCanadian Market Entry PlanSportingGoodsStores
  73. 73. Colombian Presentation1,980$222Units DollarsEstimated Sales (000)25.6%15.9%43.5%15.0%Retailer StoresSears 118Bikini Village 52Walmart 379The Bay 90Forzani Group 480Penningtons 167La Vie EnRose Aqua23Roots 115Costco 82Winners 222DeptStoresDiscountStoresApparelSpecialtyStoresAllOthersWomen’s Swimsuit Market201273Largest RetailersChannelsCanadian Market Entry Plan
  74. 74. Colombian Presentation53,185$248,380Units DollarsEstimated Sales (000)21.6%46.8%26.3%5.3%Retailer StoresWalmart 379Sears 118Mark’s 386The Bay 90Costco 82Winners 222Giant Tiger 205Simons 8Real CanadianSuperstore111DeptStoresDiscountStoresApparelSpecialtyStoresAllOthersMen’s Underwear Market201274Largest RetailersChannelsCanadian Market Entry Plan
  75. 75. Colombian Presentation 75Canadian Market Entry PlanPhasesI. Research the market / Identify a nicheII. Develop a USP
  76. 76. Colombian Presentation 76Canadian Market Entry PlanFACTCritical to success in the Canadianapparel market is identifying yourcompany’s USP and developing aCanadian marketing planPhase II – Develop a USP
  77. 77. Colombian Presentation 77What is the need that we satisfy? What is ourRaison d’être?What is our core competence? What are wereally good at?Developing a Unique Selling Proposition (USP)What can we legitimately claim to be better atthan anyone else?Canadian Market Entry Plan
  78. 78. Colombian PresentationColombia’s Possible Strategic Advantages as AnApparel 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’sunderwear manufacturing and needleworkcapabilities• Experience in dealing with U.S. apparel retailersIf your company cannot legitimately claim one ormore of these strategic advantages…78Canadian Market Entry Plan
  79. 79. Colombian PresentationCanadian Market Entry PlanSave your MoneyandStay HomeHowever, if your company has demonstrated acompetitive advantage(s) in the U.S. apparelmarket it will almost certainly have the sameadvantage(s) in the Canadian market.79
  80. 80. Colombian PresentationDealing with Canadian ProspectsIf a Branded Manufacturer•Offer exclusivity•Offer marketing support money•Offer to warehouse product in CanadaIf a Private Label Manufacturer•Always quote in U.S. dollars•Emphasize small quantities/speed tomarket/flexibility80Canadian Market Entry PlanIn either case small minimums and speed tomarket will be seen as a competitive advantageAttendance at Canadian Trade Shows is notnecessarily a must
  81. 81. Colombian PresentationTop Canadian Prospects for Colombian ApparelManufacturers(Excludes Foreign Retailers)Product Area Top Second ThirdMen’s Jeans Mark’s The Bay SearsWomen’s Jeans Mark’s Ricki’s BootleggerWomen’s Swimwear Bikini Village La Vie EnRoseReitmansCorpMen’s Swimwear Bikini Village Forzani MountainCoopLingerie La Vie EnRoseLilliane JacobMen’s Underwear Holt Renfrew Simons PriapeWomen’sCasualwearMark’s ReitmansCorpNorthernReflectionsMen’s Casualwear Mark’s Sears The Bay81Canadian Market Entry Plan
  82. 82. Colombian PresentationOptions 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 inSouth AmericaBottom Line: Think Outside the “Box”82Canadian Market Entry Plan
  83. 83. Colombian Presentation 83Bottom LineThe Canada – Colombia Free Trade AgreementOffers Colombian Apparel Manufacturers aunique opportunity to increase its exports.The Colombian government has done itspart, it’s now up to Colombian apparelmanufacturers to take advantage of this newopportunity.
  84. 84. Colombian PresentationTHANK YOUQuestions about Canada or Mexico:Randy Harris,President Trendex North AmericaHarris@trendexna.com84