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COTTON USACOTTON USA’’s Worldwide s Worldwide Supply Chain Marketing Supply Chain Marketing

ResourcesResources

Cotton Council International Cotton Council International

Supply Chain MarketingSupply Chain MarketingWhat are the chances of meeting What are the chances of meeting

the perfect partner?the perfect partner?

Cotton Council InternationalCotton Council International

?? Is a worldwide network of cotton Is a worldwide network of cotton textile professionals textile professionals

?? A nonA non--profit trade associationprofit trade association

?? Dedicated to building demand for Dedicated to building demand for cotton apparel and home textilescotton apparel and home textiles

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CCICCI’’s Strategic Objectivess Strategic Objectives

?? Increase cottonIncrease cotton’’s share of total fibre s share of total fibre usageusage

?? Increase consumer demand for Increase consumer demand for cotton products containing a cotton products containing a minimum of 50% US cottonminimum of 50% US cotton

?? Add value to pure cotton products Add value to pure cotton products through use of COTTON USA Mark through use of COTTON USA Mark and marketing servicesand marketing services

China /Hong Kong

Washington, DC(Headquarters)

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UK Korea

*

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Germany

**

ColombiaCosta Rica BrazilSub-Saharan

Africa

Taiwan

Philippines

ThailandBangladesh Indonesia

JapanTurkey

CCICCI’’s Global Structures Global Structure

The COTTON USA NetworkThe COTTON USA Network

?? CCICCI’’s network has ongoing personal s network has ongoing personal contact with the worldcontact with the world’’s leading cotton s leading cotton spinners; weavers; knitters and garment spinners; weavers; knitters and garment and home textile manufacturers giving and home textile manufacturers giving CCI a unique understanding of suppliersCCI a unique understanding of suppliers’’market positionmarket position

?? Similarly, through its efforts to build the Similarly, through its efforts to build the demand for cotton products, CCI has close demand for cotton products, CCI has close contact with leading retailers and brands contact with leading retailers and brands in key consumer marketsin key consumer markets

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Matching Buyers with SellersMatching Buyers with Sellers

Familiarity withFamiliarity withSuppliersSuppliers’’company profile, products company profile, products

and capacityand capacityand and

BuyersBuyers’’requirements and purchase requirements and purchase criteriacriteria

puts CCI in a unique position to match puts CCI in a unique position to match and introduce buyers and sellers and introduce buyers and sellers

based on specific criteria based on specific criteria

The COTTON USA MissionThe COTTON USA MissionTo build alliances To build alliances

between retailers and manufacturersbetween retailers and manufacturersFor COTTON USA Licensees this is through For COTTON USA Licensees this is through introduction to new potential customers and introduction to new potential customers and

generating new business for Licenseesgenerating new business for LicenseesFor retailers & brands this is helping retailers and For retailers & brands this is helping retailers and

brands identify new COTTON USA sourcing brands identify new COTTON USA sourcing opportunities opportunities

??In the end both Buyers and Sellers benefit from In the end both Buyers and Sellers benefit from

COTTON USA inCOTTON USA in--store retail promotions which store retail promotions which increase retail sales of cotton productsincrease retail sales of cotton products

Manufacturers are constantly Manufacturers are constantly looking for new customerslooking for new customers

?? Typically the universe of possible new Typically the universe of possible new customers is large and located globallycustomers is large and located globally

?? Without some kind of introduction it can Without some kind of introduction it can be difficult to meet new potential be difficult to meet new potential customers and get appointmentscustomers and get appointments

?? Generally retailers are reluctant to take Generally retailers are reluctant to take risks with unknown companies and with a risks with unknown companies and with a limited staff they donlimited staff they don’’t have time to t have time to review every new company that contacts review every new company that contacts them.them.

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Retailer SourcingRetailer Sourcing

Retailers have:Retailers have:

?? Current SuppliersCurrent Suppliers?? A quest for new suppliers which maintain A quest for new suppliers which maintain

quality at a more competitive pricequality at a more competitive price?? A constant stream of A constant stream of ‘‘cold callerscold callers’’, ,

companies contacting them without companies contacting them without invitationinvitation

?? Difficulty identifying the Difficulty identifying the ‘‘rest of the worldrest of the world’’they do not knowthey do not know

COTTON USACOTTON USA’’s s Supply Chain MarketingSupply Chain Marketing

YourYour Resource to reach Resource to reach New Potential CustomersNew Potential Customers

?? CCICCI’’s network is a rich source of s network is a rich source of intelligence on the supply chain to intelligence on the supply chain to retailers and brandsretailers and brands

?? Ongoing contact with companies and CCIOngoing contact with companies and CCI’’s s licensing program ensures companies licensing program ensures companies maintain established standardsmaintain established standards

COTTON USA licensee = A Vetted SupplierCOTTON USA licensee = A Vetted Supplier

COTTON USA LicenseeCOTTON USA LicenseeSupply Chain Marketing SupportSupply Chain Marketing Support

1)1) Supply Chain Marketing Database contains Supply Chain Marketing Database contains details of worlddetails of world’’s leading suppliers of yarns, s leading suppliers of yarns, fabrics and finished products fabrics and finished products

2)2) Trade Shows provide a referral service and Trade Shows provide a referral service and the COTTONWORKSthe COTTONWORKS®® FFabricabric Library Library

3)3) Sourcing Tours to arrange faceSourcing Tours to arrange face--toto--face face business meetings and personal introduction business meetings and personal introduction service to new potential customersservice to new potential customers

4)4) Retail consumer promotions in Europe and Retail consumer promotions in Europe and Asia add to consumer demand for cottonAsia add to consumer demand for cotton

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1. 1. Supply Chain Marketing DatabaseSupply Chain Marketing Database

Contains: Contains: ?? Hundreds of quality manufacturersHundreds of quality manufacturers?? Full contact informationFull contact information?? Company profile dataCompany profile data

••Capacities / minimums / delivery timesCapacities / minimums / delivery times••Equipment informationEquipment information••Social compliance / Certification Social compliance / Certification

informationinformation

1. 1. Supply Chain Marketing DatabaseSupply Chain Marketing Database

Retailers & Brands can identify new Retailers & Brands can identify new potential suppliers by sorting data by:potential suppliers by sorting data by:

?? Product categoryProduct category?? CapacityCapacity?? Minimum order size / colour / styleMinimum order size / colour / style?? Delivery times / Speed to marketDelivery times / Speed to market?? Current Export MarketsCurrent Export Markets?? Electronic Order / Shipping TrackingElectronic Order / Shipping Tracking?? InIn--house design capabilityhouse design capability

1 Basic Licensee Information on www.cottonusa.org

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2. Trade Show Cooperation2. Trade Show CooperationTexworld; Premiere Vision; Intertextile

Shanghai and Interstoff Asia

Including COTTONWORKS® Fabric Library for Retailers and Buyers

At Trade Shows:At Trade Shows:??Your Licensed fabrics are shown to Your Licensed fabrics are shown to

interested retailers & brands, interested retailers & brands, ??Sample request forms from the shows Sample request forms from the shows

are forwarded directly to Licensee are forwarded directly to Licensee offices offices ??Your company contact information is Your company contact information is

provided to interested retailers & provided to interested retailers & brandsbrands??You can arrange to meet potential You can arrange to meet potential

customers at the COTTON USA standcustomers at the COTTON USA stand

3. COTTON USA 3. COTTON USA BuyersBuyers’’Sourcing ToursSourcing Tours

?? Past Tours have visited Bangladesh; Past Tours have visited Bangladesh; China; India; Mexico; Pakistan; and China; India; Mexico; Pakistan; and TurkeyTurkey

?? Provides extensive new contacts in Provides extensive new contacts in concentrated trip programconcentrated trip program

?? Includes: country overview Includes: country overview seminars; showroom visits; oneseminars; showroom visits; one--onon--one meetings at private trade fairs; one meetings at private trade fairs; time for followtime for follow--up meetingsup meetings

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European Apparel BuyersEuropean Apparel Buyers’’Tour Tour to Turkey to Turkey -- May 2004May 2004

Seminar with Industry Leaders

Showroom Visits

Buyers & Sellers Briefed Buyers & Sellers Briefed in Advancein Advance

European Participants in Turkish European Participants in Turkish Buying TourBuying Tour

?? Artsana SpA (Chicco brand), ItalyArtsana SpA (Chicco brand), Italy?? Benetton Group SpA, ItalyBenetton Group SpA, Italy?? CDA Wear Industries, ItalyCDA Wear Industries, Italy?? C & A, BelgiumC & A, Belgium?? El Corte Ingles, SpainEl Corte Ingles, Spain?? Interfashion SpA, ItalyInterfashion SpA, Italy?? IntersportIntersport, France, France?? Stefanel SpA, ItalyStefanel SpA, Italy

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Results of Buying Tour to TurkeyResults of Buying Tour to Turkey

1.1. 90% of the European companies identified 90% of the European companies identified newnew supplierssuppliers

2.2. 90% of all participants made 90% of all participants made newnew contactscontacts3.3. 90% of the European companies ordered 90% of the European companies ordered

samplessamples4.4. 6 Turkish companies have confirmed new 6 Turkish companies have confirmed new

salessales5.5. New orders valued in excess of New orders valued in excess of

US$3 millionUS$3 million have been placed as a direct have been placed as a direct result of the Tourresult of the Tour

Home Textiles Buying Tour to Home Textiles Buying Tour to Turkey Turkey –– 2020--24 June 200524 June 2005

?? Up to 15 Leading European BuyersUp to 15 Leading European Buyers?? Visit to Licensee ShowroomsVisit to Licensee Showrooms?? Private Trade FairPrivate Trade Fair?? OneOne--onon--one meetingsone meetings?? Time for followTime for follow--up meetings and up meetings and

visits to manufacturing sitevisits to manufacturing site

4 Consumer Retail Promotions4 Consumer Retail Promotions

?? Serve as final link in supply chain to Serve as final link in supply chain to support cotton consumptionsupport cotton consumption

?? Increased demand for cotton Increased demand for cotton products adds to sales for retailers products adds to sales for retailers and their suppliersand their suppliers

?? Successful partnerships build longerSuccessful partnerships build longer--term relations between Buyers and term relations between Buyers and SellersSellers

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4. Retail Consumer Promotions4. Retail Consumer Promotions

Increase Cotton Awareness and SalesIncrease Cotton Awareness and Sales

?? Educate consumers on the advantages of Educate consumers on the advantages of COTTON USA productsCOTTON USA products?? Newspaper and Radio advertisements draw Newspaper and Radio advertisements draw

readers & listeners to retail outletsreaders & listeners to retail outlets?? Stores animated with attractive POS Stores animated with attractive POS

materialsmaterials?? InIn--store events using incentive promotions store events using incentive promotions

draw consumers to promotional areadraw consumers to promotional area?? Generate increased store traffic and salesGenerate increased store traffic and sales

Karstadt Retail PromotionKarstadt Retail Promotion

•• Karstadt Karstadt WarenhausWarenhaus AG, based in AG, based in Essen, part of Karstadt Quelle GroupEssen, part of Karstadt Quelle Group

•• Largest European combined department Largest European combined department store and mail order retailerstore and mail order retailer

•• Sales = Euro 15.8 billion (2002)Sales = Euro 15.8 billion (2002)•• 36% market share of German 36% market share of German

department storesdepartment stores•• 189 stores, 104,500 employees189 stores, 104,500 employees (2002) (2002)

Karstadt Retail PromotionKarstadt Retail Promotion

?? 180 Stores 180 Stores ?? Spring 2002, Spring 2003, Spring Spring 2002, Spring 2003, Spring

20042004?? towels / towels / bedlinenbedlinen setssets

?? 6 brands6 brands?? ‘‘COTTON USA COTTON USA ––

Nothing feels like thisNothing feels like this’’

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Karstadt Retail PromotionKarstadt Retail Promotion

?? Newspaper advertisements covering Newspaper advertisements covering major German cities nationwide draw major German cities nationwide draw shoppers to their local Karstadt storeshoppers to their local Karstadt store

?? COTTON USA sales promoters actively COTTON USA sales promoters actively sell promotion product in leading stores sell promotion product in leading stores

during six key promotion daysduring six key promotion days

Karstadt Retail PromotionKarstadt Retail PromotionOne Investment = Results for 11 Turkish CompaniesOne Investment = Results for 11 Turkish Companies

KARSTADT

GAP

NESA

BIRLIK / SOLEY

KUCUKER

YESIM

KATARTAS

YARN / FABRIC MANUFACTURING RETAIL

MATESA

ARSAN

TOPKAPI

TURKUAZSANKO

Karstadt Retail PromotionKarstadt Retail Promotion

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Karstadt Retail PromotionKarstadt Retail Promotion

Karstadt Retail PromotionKarstadt Retail PromotionCOTTON USACOTTON USA Hang Tags Hang Tags

Identify Identify Products throughout the yearProducts throughout the year

Retailer BenefitsRetailer Benefits

?? Consumer Promotions increase Consumer Promotions increase store foot fall and customer trafficstore foot fall and customer traffic

?? Sales of COTTON USA labelled Sales of COTTON USA labelled product increased over 20% in product increased over 20% in value and volume value and volume

?? Promotions generate positive PR Promotions generate positive PR and local media exposure for the and local media exposure for the retailer and its outletsretailer and its outlets

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Supplier Licensee BenefitsSupplier Licensee Benefits

?? Increased sales at retail are Increased sales at retail are passed on to suppliers in future passed on to suppliers in future ordersorders

?? Increased loyalty between retailers Increased loyalty between retailers and suppliers and suppliers

?? Retailers must stay loyal to Retailers must stay loyal to COTTON USA licensees to maintain COTTON USA licensees to maintain retail promotion support retail promotion support

COTTON USACOTTON USA’’s s Supply Chain MarketingSupply Chain Marketing

?? Integrated marketing support for Integrated marketing support for manufacturers and retailers manufacturers and retailers

?? Build long term business relations Build long term business relations and supply chain partnerships with and supply chain partnerships with

COTTON USA COTTON USA