International Apparel Federation
Source Africa, April 12th, 2013, Capetown
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International Apparel Federation
• A brief introduction of IAF• World trade in clothing• Example EU, sourcing in Africa, regionalsourcing
• Developments in e‐commerce• Opportunities!
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Building Bridges in the Fashion Chain
International Apparel Federation
A Brief Introduction to the IAF
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The Dream of our Founders
• founded in 1976 in Williamsburg (USA)• a non‐political platform for the world apparel industry• promote the common business interests and encourage best practice and support for apparel manufacturers worldwide
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IAF’s Mission Statement
IAF intends to develop business contacts which foster dialogue and knowledge exchange between individuals active in the world fashion value chain
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IAF wants to maximize the positive effectsits members can obtain from
global cooperation
IAF Membership
• National Apparel Associations– 43 countries– representing > 200.000 companies– > 20 million workers
• Corporate Members• Associate Members• Educational Institutes
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IAF’s Membership
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• Australia• Bangladesh• Brazil• China incl. Hong Kong • Chinese Taipei• Colombia• Europe (27 countries)• India• Korea
• Mexico• Pakistan• Peru• South Africa• Sri Lanka• Turkey• USA• Vietnam
Key areas
IAF’s activities concentrate on• market information• global responsibility• innovation and research• health and safety• IAF committees (technical, education, global responsibility and cultural)
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IAF World Fashion Convention• Since 1984 the World Fashion
Convention annually attracts high level executives from companies in the fashion chain.
• Past venues: Athens, Amsterdam, Bali, Barcelona, Berlin, Bruges, Cancun, Florence, Hong Kong, Istanbul, Maastricht, Milan, New Dehli, Oporto, Riviera Nayarit, San Francisco, Singapore, Sun City, Taipei, Thessaloniki, Vancouver, Washington
• Next conference:Shanghai
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Textiles Intelligence www.textilesintelligence.com
World's 15 leading clothing exporters, 2011
Source: Textile Outlook International from WTO data
ChinaEU27
Hong KongBangladesh
IndiaTurkey
VietnamIndonesia
USAMexico
MalaysiaThailandPakistan
Sri LankaCambodia
0 50 100 150
US$ bn
Rising stars between 2005 and 2011• Bangladesh (up by 19% per annum)• Vietnam (up by 19% per annum)• China (up by 13% per annum)• Malaysia (up by 11% per annum)• Cambodia (up by 11% per annum)
Losers between 2005 and 2011• Mexico (down by 7% per annum)• Hong Kong (down by 2% per annum)• USA (up by only 1% per annum)
Textiles Intelligence www.textilesintelligence.com
World's 15 leading clothing importers, 2011
Source: Textile Outlook International from WTO data
EU27USA
JapanHong Kong
CanadaRussia
SwitzerlandSouth Korea
AustraliaChina
TurkeyUAE
NorwaySaudi Arabia
Mexico
0 50 100 150 200
US$ bn
Collectively, the EU, the USA and Japan accounted for 72% of world clothingimports
Growth markets between 2005 and 2011• Russia (up by 42% per annum)• Turkey (up by 27% per annum)• China (up by 16% per annum)• South Korea (up by 13% per annum)• UAE (up by 13% per annum)
Imports and exports of clothing for Sub Sahara Africa in US$ millions (source WTO)
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0
1000
2000
3000
4000
5000
6000
2003 2007 2011
Clothing exports
Clothing imports
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Latest WTO index of trade volume
World clothing market(2012, retailvalue in US$ thousands, Euromonitor)
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0.0
200,000.0
400,000.0
600,000.0
800,000.0
1,000,000.0
1,200,000.0
1,400,000.0
2007 2008 2009 2010 2011 2012
Western Europe
North America
Middle East and Africa
Latin America
Asia Pacific
World clothing market(2012, retail value in US$ billions, Euromonitor)
0
50
100
150
200
250
300
350
400
450
500
2008 2009 2010 2011 2012
Asia/PacificLatin AmericaMiddle East/AfricaNorth AmericaWestern Europe
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Textiles Intelligence www.textilesintelligence.com
USA and EU: growth in clothing importvolume and price, Jan-Jun 2012
Sources: Euratex; US official statistics
EU USA-20
-10
0
10
20
7.73.7
-12.5
-4.2
(%)
Price Volume
EU
Volume
Price
Volume
Price
USA
Jan-Jun 2012
Forecast retail value growth(2012 = 100, Euromonitor)
90
100
110
120
130
140
150
160
2012 2013 2014 2015 2016 2017
ChinaIndiaBrazilUSAGermanyUKFranceItaly
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Market size clothing(2012, retail value in € billion, Euromonitor)
0
10
20
30
40
50
60
2008 2009 2010 2011 2012
GermanyUKItalyFranceSpain
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Developments at present
• 2nd phase ‘post MFA’ sourcing has started• Consumer wants transparency andassurances, companies take responsibility, sustainability is becoming a marketing tool.
• New markets take off• Buying online takes off• Innovation is back• Polarisation between mass and unique
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Imports into EU of clothing in 1000s €s (source: Eurostat)
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0
50,000
100,000
150,000
200,000
250,000
300,000
350,000
400,000
Ethiopia Kenya Lesotho Madagascar Mauritius South Africa
2010
2012
Comparison share of imports into the EU, position of China (ca € 30 billion) vs selected
African Countries (Source Eurostat)
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2012
Ethiopia
Kenya
Lesotho
Madagascar
Mauritius
South Africa
China
Expected impact on production (in addition to existing trends)
Impact on textile production clothing production
NAFTA - 5 % - 8 %
China + 12 % + 31 %
India + 1 % + 5 %
Turkey - 23 % - 33 %
North Africa - 9 % - 16 %
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Source: prof. G. Gerrefi
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Source: prof. G. Gerrefi
Trends in share of imports of knitted garmentsinto the EU (2010‐2011‐2012) Source: Eurostat
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Series1
Series2
Series3
0
10
20
30
40
50
60
70
ChinaBangladesh
TunesieRoemenie
Turkije
Trends in share of imports of woven garmentsinto the EU (2010‐2011‐2012) Source: Eurostat
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Series1
Series2
Series3
0
10
20
30
40
50
60
70
ChinaBangladesh
TunesieRoemenie
Turkije
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Internet sales clothing Europe
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Average web orderin Euro’s
0
20
40
60
80
100
120
140
Euro's
Euro's
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Internet sales clothing in Europe
• 20 – 50% of retail sales will be done electronicallyin 2020
• B2B eCommerce is estimated to be ten times bigger than B2C eCommerce
• eCommerce is a new management discipline justlike finance (1500)
• mass‐Production (1900) and marketing(1960) once were…
• everybody is reinventing the wheel while the market is hypercompetitive
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Opportunities!
• 2nd phase, post MFA reshuffles the sourcingmap. Compared to existing quantities, volume looking for new production locations is large
• Sustainability as a marketing tool• Growing importance of niches in mature markets• Growing share of internet sales change the way the supply chain works
• More trade flows, larger share of Intra Africantrade
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Building Bridges in the Fashion Chain
International Apparel Federation
www.iafnet.com
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