eric gunther fm article

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We are entering a period of real innovation in both the apparel industry and financing of the market. Leaders on all sides of the table are making decisions on how to best grow their brands and companies in an increasingly vertical and digital world. Opportunities that have evolved do not fit the same exact mold of the past, exchanging power back and forth from brand, buyer, and consumer. Buying and selling in the fashion world has emerged from a peri- od of difficulty we saw when the economy pumped our brakes. Sales have picked up, new brands have emerged, and niche tradeshows including Capsule and Agenda have seen tremendous growth. The latest exciting news is the union of several shows under Modern Assembly, and the highly anticipated launch of Lib- erty Fairs. I am proud to participate in the first Liberty Fairs show in Vegas. Impactful technology is rapidly changing the way purchase orders are considered and written. Amazing new companies such as NuORDER are gaining increasing traction in the way buyers view collections and write their final orders digitally. Finding comfort with this process is critical for funding groups engaging the whole- sale business. As purchase orders change into a digital format and goods are even shipped directly to the consumer from wholesaler on the direction of online retailers, the financiers and sellers are collaborating on how to follow the paper trail efficiently. With increased globalization and the help of technology, interna- tional and domestic factory suppliers are easier to discover than ever. The vast majority of transactions are being done on open payment terms or other payment guarantees as competition is creating flexibility. American brands and the “heritage” market are in high demand. A small renaissance of manufacturing in the US is answering to both global and domestic demand for our branded goods. Supporting this financially is both economically and morally important. It re- quires an additional layer of knowledge to help with exporting in our country where we are so accustomed to importing. The financial industry itself is also seeing some big changes. New contenders with increasingly knowledgeable teams are rising to the surface supporting both buyer and seller for growth. The struggles noted affecting the clothing industry can be seen as an incredible opportunity for any of these financial directions. A few lenders, funding partners, and investors have increasing interest with big appetites to take on risk with the new markets in the fash- ion world. Equity investments in the business have shown signs of f m FINANCING FASHION Funding Change And Growth BY ERIC GUNTHER, VICE PRESIDENT OF BUSINESS DEVELOPMENT, BIBBY FINANCIAL SERVICES increasing interest for online companies who mix wholesale and vertical retail margins through inventory avoiding showroom-style brick and mortar shops. Mergers and acquisitions are increasingly sensible for not only larger but also smaller brands as well. There is also a rising layer of safety when bringing outsiders into your business who truly understand the industry as a whole. These funding groups and financiers are currently competing to bring in the most knowledgeable employees and consultants with the most effective ties to the apparel industry. As a result, increas- ing options are helping to offer more than ever before for whole- salers and retailers. Some traditional financial products are finding flexibility with cer- tain lenders. Meanwhile, new emerging products are finding a niche within fashion. Taking or sharing the risk to approve more retailers and boutiques for factored payment terms is the needed cornerstone to a more advanced supply chain funding strategy. Along with an increasing global market, giving these payment terms to factor international retailers or distributors is also an es- sential part of growing brands today. Embracing ecommerce and flash sales is often demanding of inventory, and obtaining aggres- sive approval ratings allows for more available capital for inventory to seize these sales avenues. Newer short-term lending solutions based on previous selling histories, which provide operating capital, are also proving to be a highly successful solution. These same loans or advances are also incredible for funding inventory or manufacturing processes involving multiple suppliers often considered “work in progress” that were previously hard to fund. Today’s market continues to refine itself. New sales channels with complicated terms present challenges. Meanwhile, solutions are being created and at the same time buyers and factory suppliers are learning to comply with lender requirements the brands need to fund their orders. Credit for buyers has tightened, but new financial players are emerging with open arms. As new selling are- nas present themselves, and technology helps create more busi- ness, new solutions will rise to match on the horizon. Eric Gunther Vice President of Business Development Bibby Financial Services Holdings 469 7 th Avenue, 2 nd Floor New York, NY 10018 Tel: 646-315-3684 [email protected] www.bibbyusa.com F M As Seen In FashionMANNUSCRIPT

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Page 1: Eric Gunther FM Article

We are entering a period of real innovation in both the apparel industry and financing of the market. Leaders on all sides of the table are making decisions on how to best grow their brands and companies in an increasingly vertical and digital world. Opportunities that have evolved do not fit the same exact mold

of the past, exchanging power back and forth from brand, buyer, and consumer. Buying and selling in the fashion world has emerged from a peri-od of difficulty we saw when the economy pumped our brakes. Sales have picked up, new brands have emerged, and niche tradeshows including Capsule and Agenda have seen tremendous growth. The latest exciting news is the union of several shows under Modern Assembly, and the highly anticipated launch of Lib-erty Fairs. I am proud to participate in the first Liberty Fairs show in Vegas. Impactful technology is rapidly changing the way purchase orders are considered and written. Amazing new companies such as NuORDER are gaining increasing traction in the way buyers view collections and write their final orders digitally. Finding comfort with this process is critical for funding groups engaging the whole-sale business. As purchase orders change into a digital format and goods are even shipped directly to the consumer from wholesaler on the direction of online retailers, the financiers and sellers are collaborating on how to follow the paper trail efficiently.

With increased globalization and the help of technology, interna-tional and domestic factory suppliers are easier to discover than ever. The vast majority of transactions are being done on open payment terms or other payment guarantees as competition is creating flexibility.

American brands and the “heritage” market are in high demand. A small renaissance of manufacturing in the US is answering to both global and domestic demand for our branded goods. Supporting this financially is both economically and morally important. It re-quires an additional layer of knowledge to help with exporting in our country where we are so accustomed to importing. The financial industry itself is also seeing some big changes. New contenders with increasingly knowledgeable teams are rising to the surface supporting both buyer and seller for growth. The struggles noted affecting the clothing industry can be seen as an incredible opportunity for any of these financial directions. A few lenders, funding partners, and investors have increasing interest with big appetites to take on risk with the new markets in the fash-ion world. Equity investments in the business have shown signs of

fm

FINANCING FASHION

Funding Change And GrowthBY ERIC GUNTHER, VICE PRESIDENT OF BUSINESS DEVELOPMENT, BIBBY FINANCIAL SERVICES

increasing interest for online companies who mix wholesale and vertical retail margins through inventory avoiding showroom-style brick and mortar shops. Mergers and acquisitions are increasingly sensible for not only larger but also smaller brands as well.

There is also a rising layer of safety when bringing outsiders into your business who truly understand the industry as a whole. These funding groups and financiers are currently competing to bring in the most knowledgeable employees and consultants with the most effective ties to the apparel industry. As a result, increas-ing options are helping to offer more than ever before for whole-salers and retailers.

Some traditional financial products are finding flexibility with cer-tain lenders. Meanwhile, new emerging products are finding a niche within fashion. Taking or sharing the risk to approve more retailers and boutiques for factored payment terms is the needed cornerstone to a more advanced supply chain funding strategy.

Along with an increasing global market, giving these payment terms to factor international retailers or distributors is also an es-sential part of growing brands today. Embracing ecommerce and flash sales is often demanding of inventory, and obtaining aggres-sive approval ratings allows for more available capital for inventory to seize these sales avenues.

Newer short-term lending solutions based on previous selling histories, which provide operating capital, are also proving to be a highly successful solution. These same loans or advances are also incredible for funding inventory or manufacturing processes involving multiple suppliers often considered “work in progress” that were previously hard to fund. Today’s market continues to refine itself. New sales channels with complicated terms present challenges. Meanwhile, solutions are being created and at the same time buyers and factory suppliers are learning to comply with lender requirements the brands need to fund their orders. Credit for buyers has tightened, but new financial players are emerging with open arms. As new selling are-nas present themselves, and technology helps create more busi-ness, new solutions will rise to match on the horizon.

Eric GuntherVice President of Business DevelopmentBibby Financial Services Holdings469 7th Avenue, 2nd FloorNew York, NY 10018Tel: [email protected] www.bibbyusa.com

FM

As Seen In FashionMANNUSCRIPT