A Guide for Potential Colombian Apparel Exporters Prepared By 1 2 Purpose of todays presentation Introduction Describe what a Colombian apparel supplier has to do in order to enter and be competitive in the ID: 211709
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Slide1
The Canadian Apparel Market
A Guide for Potential
Colombian Apparel ExportersPrepared By
1Slide2
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 CanadaSlide3
3
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.com
Trendex North AmericaSlide4
S
ource: 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
-
$211
-Slide5
S
ource: Statistics Canada
Largest Provinces
Ontario 13,472,000Quebec 8,028,000British Columbia4,606,000Alberta 3,847,000
Largest Metropolitan MarketsToronto 5,839,000Montreal 3,909,000
Vancouver 2,420,000
Calgary 1,265,000
Ottawa 1,259,900
Edmonton 1,196,340
What is Canada?
5Slide6
6
CANADIAN TOTAL APPAREL IMPORTS
($ Millions)Source: Statistics Canada
2012/2011Change
+0.8%
$
9,118
Canadian Apparel
Importing
PatternsSlide7
7
Source: Statistics Canada
Cambodia
Bangladesh
Honduras
Total Imports
China
Vietnam
India
Imports of Apparel Into Canada
January –
December
2012
Percent Change
Pakistan
14.6%
Mexico
Turkey
USA
Canadian Apparel
Importing
PatternsSlide8
8
IMPORTS OF APPAREL INTO CANADA
January – December 2012($ Millions)Source: Statistics Canada
Canadian Apparel
Importing
PatternsSlide9
Canadian Apparel
Importing
PatternsLargest Latin America Apparel Exports to Canada2012 C$ (000)Country
Amount
% Change 2012/2011Mexico
$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%
Dominican Republic
$19,548
+24.2%
Colombia
$9,295
+16.1%
Costa Rica
$5,914
-3.8%
9Slide10
10
Colombia’s Apparel Exports to Canada
Canadian Dollars (000)Source: Statistics Canada
Canadian Apparel
Importing
Patterns
%
Change
2012/2011
+16.1%Slide11
Canadian Apparel Importing Patterns
Hosiery/
Workwear/All OtherWomen’s/Girl’sMen’s/Boy’sColombia’s Apparel Exports to Canada2012 Canadian Dollars (000)Children’s11Slide12
Canadian Apparel
Importing
PatternsColombia’s Apparel Exports to CanadaCanadian Dollars (000)
Segment2008
20092010
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%
12Slide13
Canadian Apparel
Importing
PatternsLargest Latin America Apparel Exporters to Canada2012 Dollars (Millions)13Country
SalesMexico
$194Honduras
$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$12El Salvador$12
Peru$8Nicaragua$3Dominican Republic$2
Costa Rica$2Colombia$1.4Brazil$0.8Men
WomenJuvenileAll OtherSlide14
14
Total
ExportsTotal Imports
Colombia APPAREL BALANCE OF TRADE WITH CANADA
Thousands of Dollars
Source:
Canadian Apparel
Importing
PatternsSlide15
15
What can be said about Canadian Apparel Manufacturers?
The number of manufacturers and their sales have decreased by 35% - 45% over the past ten yearsCanadian Apparel SuppliersSlide16
16
Canadian Apparel Manufacturing Sales
Seasonally Adjusted (Millions of Dollars)% Change (N.A) (-27.2%) (-16.4%) (+3.8%) (-2.2%) (-13.9%)Previous Year
Canadian Apparel SuppliersSlide17
17
What can be said about Canadian Apparel Manufacturers?
The number of manufacturers and their sales have decreased by 35% - 45% over the past ten yearsHave changed from manufacturers to suppliersAre focusing increasingly on exporting with mixed successHave become more marketing orientedAre totally dependent on the U.S. market, as they have been unable to develop consistent sales in other markets
Canadian Apparel SuppliersSlide18
18
Total Exports
United StatesExportsU.S. Share
(89%)
(88%)
(91%)
(85%)
TOTAL CANADIAN APPAREL EXPORTS
($
Millions)
Source: Statistics Canada
(83%)
(81%)
(
80%)
(80%)
Canadian Apparel
SuppliersSlide19
Canadian Apparel Suppliers
Largest Canadian Apparel Suppliers
2012Company
ProductsChannel
CountryGildanUnderwear
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.
19Slide20
Merchandise Category
Example
Fur coatsMany small suppliersWinter outerwearCanadian GooseMid priced suits and sport coatsPeerlessMid and better priced dress slacksBallinWomen’s mid priced coordinatesNygard
Women’s mid/better priced women’s lingerie
Adorable/ArianneWomen’s tights/pantyhoseDoris Hosiery
Men’s underwear
Stanfield
Canadian Domestic Apparel Manufacturing
B
ase
Canadian Apparel Suppliers
20Slide21
21
NAFTA MARKET OVERVIEW
2012Population (Millions)
GDP (U.S$Trillions)
Nafta OverviewSlide22
NAFTA Overview
Total Retail Apparel Market
2012 (US$ Millions)22Slide23
23
TOTAL
APPAREL MARKET 2012 Dollar SalesDiscount Stores
Sporting Goods Stores
Department Stores
Apparel Specialty Stores
All Other Outlets
NAFTA OverviewSlide24
24
CANADIAN RETAIL
CHANNEL DEFINITIONSDepartmentStoresDiscountStores
Better ClothingChains
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 OverviewSlide25
Más
Jov
en Más
Viejo
Edad 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 CanadáSlide26
TOTAL
APPAREL
MARKET 2012 Dollar SalesLargest RetailersNAFTA Overview
26
CanadaWalmart 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%Slide27
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 marketHas fewer channels of distributionHas a higher degree of retail concentrationHas more promotional activityHas a higher percentage of independent apparel retailers (especially in Quebec)27
NAFTA OverviewSlide28
CANADIAN TOTAL APPAREL MARKET
2012
Estimated Canadian Retail Dollar Sales (C$Millions)$27,422Canadian Retail
Apparel Market
28Slide29
29
TOTAL CANADIAN APPAREL MARKET
Retail Dollar SalesJanuary - DecemberDiscount Stores
Sporting Goods Stores
Department Stores
Apparel Specialty Stores
All Other Outlets
Canadian Retail Apparel
MarketSlide30
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 Market2012 Retail Dollar Share
30
Canadian Retail Apparel MarketSlide31
31
TOTAL CANADIAN APPAREL MARKET
January - December 2012Retail Dollar SalesRetail Concentration
Largest 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%
Canadian Retail Apparel
MarketSlide32
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
Canadian Retail Apparel
MarketSlide33
Young
Older
IncomeCANADIAN WOMEN’S APPAREL MARKET2012
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
Canadian Retail Apparel
Market
MexxSlide34
Young
Older
IncomeCANADIAN MEN’S APPAREL MARKET2012
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
Canadian Retail Apparel
MarketSlide35
Retailer StoresMark’sReitmansLe ChateauSuzy ShierLa Senza*Northern Reflection*PenningtonsSmart Set
GarageRickis*
StichesLa Vie En RoseMoores*
Addition Elle
Jacob
Tip Top
Mexx*
384
362
241
190
185
160
152
150
147
142
136
128
118
116
102
99
91
35
Canadian Retail Apparel
Market
Largest Apparel Specialty Chains
2012 Stores
*Foreign OwnedSlide36
Men
Women Juvenile Unisex
Mark’s 384Moores 119
Tip Top 99Randy 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
Canadian Retail Apparel
Market
Largest Apparel Specialty Chains
2012 StoresSlide37
% of Dollar Sales
Merchandise Category
20082009201020112012
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%
Source: Statistics
Canada
37
Canadian Retail Apparel
Market
Canadian Men’s Apparel Sales
Retail Dollar SalesSlide38
% of Dollar Sales
Merchandise Category
20082009201020112012
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%
Source: Statistics
Canada
Canadian Retail Apparel
Market
Canadian Women’s Apparel Sales
Retail Dollar Sales
38Slide39
Canadian Apparel Retailer Profile
Department Store
Sales (2011)C$4.3 BillionStores118 Department Stores48 Sears Home Stores269 Sears Dealer Stores11 Outlet Stores
HeadquarteredTornoto, Ontario (416) 362-1711
www.sears.caStrengthsWomen’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
39Slide40
Canadian Apparel Retailer Profile
Department Store
Sales (2011)C$3.2 BillionStores90HeadquarteredToronto, Ontario
(905) 792-4400www.hbc.comStrengths
Men’s SuitsBrand SelectionPrivate LabelsJoint Venture with Top Shop/Top Man
National Brand/Private Label Apparel Ratio
90%/10%
Private Labels
Hudson
North, Black & Brown, Hudson Bay Signature
Possibility
of Sourcing from Colombia
20% - 25%
The Bay
40Slide41
Canadian Apparel Retailer Profile
Discount Store
Sales (2011)U.S.$22.4 BillionStores209 Walmart Supercenters170 Walmart StoresHeadquartered
Toronto, Ontario(905) 821-2111www.walmartcanada.ca
StrengthsApparel basicsChildrenswearLow
price perception
National Brand/Private Label Apparel Ratio
10%/90%
Private Labels
George, g21, Athletic Works
Possibility
of Sourcing from Colombia
10% - 15%
Walmart Canada
41Slide42
Canadian Apparel Retailer Profile
Apparel Specialty Store
Reitman’s CanadaMontreal Quebecwww.reitmans.caSales (2012) C$1.1 BillionStores Total 959 StoresStoresBannerType363
Reitman’sWomen’s
167Pennington’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%
Possibility of Sourcing from Colombia
5% - 10%
42Slide43
Canadian Apparel Retailer Profile
Apparel Specialty Store
Sales (2011)C$1.02 BillionStores386HeadquarteredCalgary, Alberta
(403) 255-9220www.marks.comStrengths
Men’s Causalwear, Men’s Workwear, Scrubs/healthcare apparel, Work/safety footwear, Product InnovationNational Brand/Private Label Apparel Ratio
10%/90%
Private Labels
Denver Hays, Wind River, Clothes That
Work, Dakota, Mountain Gear, Work Pro
Possibility
of Sourcing from Colombia
15% - 20%
Mark’s
43Slide44
Canadian Apparel Retailer Profile
Apparel Specialty Store
Sales (2011)C$750 MillionStores8HeadquarteredQuebec City, Quebec(418) 692-3630
www.simons.caStrengths
Casual WearPrivate label18 – 29 year old segment
National Brand/Private Label Apparel Ratio
10%/90%
Private Labels
Simons, Contemporaine, Guepiere, Le31,
Lingerie twik
Possibility
of Sourcing from Colombia
10% - 15%
Simons
44Slide45
Canadian Apparel Retailer Profile
Apparel Specialty Store
Sales (2011)C$400 MillionStoresLa Vie En Rose 91La Vie En Rose Aqua 23La Vie En Rose Outlets 40HeadquarteredMontreal, Quebec
(514) 256-9446www.lavieenrose.comStrengths
Private Label LingerieSwimwear
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
45Slide46
Canadian Apparel Retailer Profile
Apparel Specialty Store
Sales (2011)C$44 MillionStores52HeadquarteredSte-Julie Quebec
(450) 449-1310www.bikinivillage.comStrengths
Swimwear (largest swimwear specialty chain), BeachwearNational Brand/Private Label Apparel Ratio
85%/15%
Private Labels
Bikini Lounge
Possibility
of Sourcing from Colombia
10% - 15%
Groupe Bikini Village Inc
46Slide47
Canadian Apparel Retailer Profile
Sporting Goods Store
Sales (2011)C$1.55 BillionStoresTotal 534Athlete’s World 48Atmosphere 62
Sport Chek 165Sport Mart 41Sports Experts 71The Tech Shop 3
National Sports 18Intersports 47Head-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.
47Slide48
Canadian Apparel Retailer Environment
Compared to the U.S. apparel retailers Canadian apparel retailers:
Have chains with a fewer number of storesAre less dependent on their POS data for decision making purposesHave not been able to build their private labels into true private label brandsAre not leveraging social media for marketingHave either no loyalty programs or the ones they have do not effect a consumers shopping behaviorCharge higher prices/have greater margins 48Slide49
Canadian Apparel Retailer Environment
Why are prices higher in Canada than U.S.?
Protectionist policies between Canada and other countries and between ProvincesLess advantageous economies of scaleHigher transportation costsBilingual packaging requirementsHigher mall rentsHigher labor costs for retail workersLess competition49Slide50
50
Trend’s in
Canadian Apparel RetailingIncreasing presence of international retailersSlide51
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
51Slide52
U.S. Retailers in Canada
52
2013
2014Slide53
53
Increasing presence of international retailers
Declining share of department stores and independent specialty retailersIncreasing share of private label
apparel brands
Trend’s in Canadian Apparel RetailingSlide54
54
Private Label Growth
Trend’s in Canadian Apparel RetailingSlide55
Canadian
Total Retail Apparel Market
Dollar Share
Private Labels
National Brands
Canadian
Retail Apparel Market
2012
Dollars
Private Label’s Market Share
Men
Women
Juvenile
55
Increasing Share of Private Label Brands
Trend’s in
Canadian
Apparel RetailingSlide56
56
Increasing presence of international retailers
Declining share of department stores and independent specialty retailersIncreasing share of private label apparels
Emergence of new apparel sectors
Trend’s in Canadian
Apparel RetailingSlide57
Mass
Middle
Luxury
Apparel Segment
Canadian
Apparel Market
Distribution of Retail Sales
57
Better
Fast Fashion
Source:
Trendex
Trend’s in
Canadian
Apparel RetailingSlide58
58
Increasing presence of international retailers
Declining share of department stores and independent specialty retailersIncreasing share of private label apparels
Emergence of new apparel sectors
“Fast Fashion” effecting all facets of the market
Trend’s in
Canadian
Apparel RetailingSlide59
59
Trends in Canadian Apparel Retailing
Growing Importance of Fast FashionSlide60
Retailers
Total
AtlanticQuebecOntarioPrariesBritish ColumbiaForever 2125-5
1244
H&M61
2
14
30
8
5
Zara
19
-
7
7
3
2
Fast Fashion/Supply Chain
Canadian Fast Fashion Retailers
60
Trends in Canadian Apparel RetailingSlide61
H&M Canada
Total 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)
61
Trend’s in
Canadian
Apparel RetailingSlide62
62
Increasing presence of international retailers
Declining share of department stores and independent specialty retailersIncreasing share of private label apparels
Emergence of new apparel sectors
“Fast Fashion” effecting all facets of the market
Small but increasing share for internet retailing
Trend’s in
Canadian
Apparel RetailingSlide63
$34.2
$7.8
E-Commerce Sales of Apparel/
Accessories
2011 US$ Billions
E-Commerce Sales of Footwear
2011 US$ Billions
63
Trend’s in
Canadian
Apparel RetailingSlide64
64
Canadian Consumer Apparel Behavior
What can be said about a Canadian consumers apaprel purchasing behavior:Price SensitiveDriven by promotional activityLooks for valueNot loyal to any retailerCross channel shopperIs not concerned with the country of originShops in the U.S., affected increasingly by U.S. apparel trends/mediaSlide65
65
Canadian Market
Entry PlanPhases
Research the market / Identify a nicheSlide66
66
Identify a possible niche in terms of
Products
Price
Points
Styling
Fabrications
Retail
Channels / Retailers
Canadian Market
Entry PlanSlide67
Estimated Sales (Millions)
Retailer
StoresWalmart379Sears118La Senza159
La Vie En Rose91The Bay
90Penningtons
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
Canadian Market
Entry PlanSlide68
Estimated Sales (000)
Retailer
StoresWalmart379Sears118Mark’s386
The Bay90Penningtons
167Reitman’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
Canadian Market
Entry PlanSlide69
69
20
62Average AgeAverage Price
CANADIAN WOMEN'S
JEANS MARKET
January - December
2012
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’sSlide70
Estimated Sales (000)
Retailer
StoresWalmart379Sears118Mark’s386
The Bay90American Eagle
94Winners
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
Canadian Market
Entry PlanSlide71
71
19
59Average AgeAverage Price
CANADIAN MEN'S
JEANS MARKET
January - December
2012
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 RenfrewSlide72
Estimated Sales (000)
Retailer
StoresForzani Group480Sears118Walmart379
Winners222The Bay
90Mark’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
Canadian Market
Entry Plan
Sporting Goods StoresSlide73
Estimated Sales (000)
Retailer
StoresSears118Bikini Village52Walmart379
The Bay90Forzani Group
480Penningtons
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
Canadian Market
Entry PlanSlide74
Estimated Sales (000)
Retailer
StoresWalmart379Sears118Mark’s386
The Bay90Costco
82Winners
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
Canadian Market
Entry PlanSlide75
75
Canadian Market
Entry PlanPhases
Research the market / Identify a niche
Develop a USPSlide76
76
Canadian Market Entry
PlanFACTCritical to success in the Canadian apparel market is identifying your company’s USP and developing a Canadian marketing plan
Phase II – Develop a USPSlide77
77
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?
Canadian Market
Entry PlanSlide78
Colombia’s Possible Strategic Advantages as An Apparel Supplier to Canada:
Proximity/speed to market (Just In Time Delivery)
Flexible quantities/small runsFree Trade Agreement with CanadaReputation for denim and fashion men’s underwear manufacturing and needlework capabilitiesExperience in dealing with U.S. apparel retailersIf your company cannot legitimately claim one or more of these strategic advantages…78Canadian Market Entry PlanSlide79
Canadian Market
Entry Plan
Save your Money and Stay HomeHowever, 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. 79Slide80
Dealing with Canadian Prospects
If a Branded Manufacturer
Offer exclusivityOffer marketing support moneyOffer to warehouse product in CanadaIf a Private Label ManufacturerAlways quote in U.S. dollarsEmphasize small quantities/speed to market/flexibility80Canadian Market
Entry PlanIn either case small minimums and speed to market will be seen as a competitive advantage
Attendance at Canadian Trade Shows is not necessarily a mustSlide81
Top Canadian Prospects for Colombian Apparel Manufacturers
(Excludes Foreign Retailers)
Product AreaTopSecondThirdMen’s JeansMark’sThe BaySearsWomen’s JeansMark’sRicki’sBootlegger
Women’s SwimwearBikini Village
La Vie En RoseReitmans CorpMen’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
Canadian Market
Entry PlanSlide82
Options for a Colombian Apparel Manufacturer in Canada
Supplier for Canadian retailers direct import programs
Subcontractor for Canadian apparel manufacturersAgent/distributor for Canadian apparel suppliers in South AmericaBottom Line: Think Outside the “Box”82Canadian Market Entry PlanSlide83
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Bottom Line
The Canada – Colombia Free Trade AgreementOffers 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.Slide84
THANK
YOUQuestions about Canada or Mexico:
Randy Harris,President Trendex North AmericaHarris@trendexna.com84