1. No category

The Canadian
Apparel Market
A Guide for
Potential
Colombian Apparel
Exporters
Prepared By
Colombian Presentation
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Introduction
Purpose of today's presentation
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 Canada
Describe what a Colombian apparel supplier
has to do in order to enter and be competitive
in the Canadian apparel market
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Trendex North America
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
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What is Canada?
Canada
World
Rank
Colombia
World
Rank
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
-
$793
-
$211
-
Population (000)
Apparel Sales per Person (US$)
Source: Statistics Canada/ CIA Fact Book
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What is Canada?
Largest Provinces
Ontario
13,472,000
Quebec
8,028,000
British Columbia4,606,000
Alberta
3,847,000
Largest Metropolitan Markets
Toronto
5,839,000
Montreal
3,909,000
Vancouver
2,420,000
Calgary
1,265,000
Ottawa
1,259,900
Edmonton
1,196,340
Source: Statistics Canada
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Canadian Apparel Importing Patterns
CANADIAN TOTAL APPAREL IMPORTS
($ Millions)
$7,001
2005
$7,465
$8,429 $8,260 $8,231
$7,874
2006
2007
2008
2009
2010
Source: Statistics Canada
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$9,043 $9,118
2011
2012
2012/2011
Change
+0.8%
Canadian Apparel Importing Patterns
Imports of Apparel Into Canada
January – December 2012
Percent Change
37.5%
14.6%
10.9%
10.1%
7.7%
0.8%
5.9%
5.8%
4.4%
-7.3%
Total
Imports
USA
Vietnam Pakistan Cambodia Honduras Turkey Bangladesh Mexico China
Source: Statistics Canada
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-10.8%
India
Canadian Apparel Importing Patterns
IMPORTS OF APPAREL INTO CANADA
January – December 2012
($ Millions)
$4,279
$1,011
$592
China
Bangladesh
United
States
$536
Cambodia
$398
$322
Vietnam
Mexico
Source: Statistics Canada
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$288
India
$241
Indonesia
$197
Italy
$119
Pakistan
Canadian Apparel Importing Patterns
Largest Latin America Apparel Exports to Canada
2012 C$ (000)
Amount
% Change
2012/2011
Mexico
$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%
Country
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Canadian Apparel Importing Patterns
Colombia’s Apparel Exports to Canada
Canadian Dollars (000)
% Change
$9,295
$7,991
2008
$8,005
$7,010
$7,194
2009
2010
Source: Statistics Canada
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2011
2012
2012/2011
+16.1%
Canadian Apparel Importing Patterns
Colombia’s Apparel Exports to Canada
2012 Canadian Dollars (000)
Distribution of Exports
Hosiery/
Workwear/
All Other
0.2% Children’s
Men’s/Boy’s
16.8%
45.1%
38.0%
Women’s/Girl’s
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Canadian Apparel Importing Patterns
Colombia’s Apparel Exports to Canada
Canadian Dollars (000)
2008
2009
2010
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%
Segment
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Canadian Apparel Importing Patterns
Largest Latin America Apparel Exporters to Canada
2012 Dollars (Millions)
Men
Women
Juvenile
All Other
Country
Sales
Country
Sales
Country
Sales
Country
Sales
Mexico
$194
Mexico
$62
$0.6
Mexico
$65
Honduras
$56
Honduras
$15
El
Salvador
Honduras
$12
Haiti
$22
Guatemala
$11
$12
El Salvador
$18
Peru
$9
Nicaragua
$17
El Salvador
$6
Dominican
Republic
$14
Nicaragua
$5
Colombia
$3.7
Guatemala
$13
$3
Peru
$12
Dominican
Republic
Colombia
$4.2
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Guatemala $0.5
Mexico
$0.4
El
Salvador
Honduras
$0.2
Peru
$8
Colombia
$0.2
Nicaragua
$3
Peru
$0.1
Nicaragua
$0.1
Dominican $2
Republic
Dominican $0.1
Republic
13
Costa
Rica
$2
Colombia
$1.4
Brazil
$0.8
Canadian Apparel Importing Patterns
Colombia APPAREL BALANCE OF TRADE WITH
CANADA
Thousands of Dollars
$9,295
$8,005
$7,991
$7,010
Total Exports
$7,193
Total Imports
$1,449
$177
$139
2008
2009
Source:
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$561
$314
2010
2011
2012
Canadian Apparel Suppliers
What can be said about Canadian Apparel Manufacturers?
• The number of manufacturers and their sales have
decreased by 35% - 45% over the past ten years
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Canadian Apparel Suppliers
Canadian Apparel Manufacturing Sales
Seasonally Adjusted (Millions of Dollars)
$3,610
$2,646
$2,213
$2,296
$2,246
$1,933
2007 2008 2009 2010 2011 2012
% Change
(N.A) (-27.2%) (-16.4%) (+3.8%) (-2.2%) (-13.9%)
Previous Year
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Canadian Apparel Suppliers
What can be said about Canadian Apparel Manufacturers?
• The number of manufacturers and their sales have
decreased by 35% - 45% over the past ten years
• Have changed from manufacturers to suppliers
• Are focusing increasingly on exporting with mixed
success
• Have become more marketing oriented
• Are totally dependent on the U.S. market, as they have
been unable to develop consistent sales in other
markets
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Canadian Apparel Suppliers
TOTAL CANADIAN APPAREL EXPORTS
($ Millions)
Total Exports $2,208 $1,982
$1,651
United States
$1,305
Exports $2,004 $1,764
$1,103 $1,175 $1,245 $1,249
$1,447
2005
U.S. Share
2006
$1,104
2007
2008
(91%) (89%) (88%)
2009
(85%) (83%)
Source: Statistics Canada
Colombian Presentation
$917
18
$954
2010
(81%)
$1,005 $1,001
2011
2012
(80%) (80%)
Canadian Apparel Suppliers
Largest Canadian Apparel Suppliers
2012
Company
Products
Channel
Country
Gildan
Underwear
Discount
U.S./Canada
Peerless
Men’s
Suits/sportcoats
Department
U.S.
Nygard
Women’s coordinates
Dept/Spec/Disc
Canada/U.S.
Levi Strauss Canada
Jeans/casual pants
Dept/Spec/Disc
Canada
Point Zero
Sportswear
Dept/Disc
U.S.
Roots
Sportwear/activewear
Dept/Spec
Canada/U.S.
Hanesbrand Canada
Lingerie/underwear
Dept/Spec/Disc
Canada
Warnaco Canada
Jeans/lingerie
Dept/Spec/Disc
Canada
Fruit of the Loom
Canada
Lingerie/underwear
Discount
Canada
Canadian Goose
Outerwear
Dept/Spec
Canada/Developed Countries
Western Glove
Jeans/outerwear
Dept/Spec
Canada/U.S.
Stanfield
Underwear
Dept/Disc
Canada/U.S.
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Canadian Apparel Suppliers
Canadian Domestic Apparel Manufacturing Base
Merchandise Category
Example
Fur coats
Many small suppliers
Winter outerwear
Canadian Goose
Mid priced suits and sport coats
Peerless
Mid and better priced dress slacks
Ballin
Women’s mid priced coordinates
Nygard
Women’s mid/better priced women’s
lingerie
Adorable/Arianne
Women’s tights/pantyhose
Doris Hosiery
Men’s underwear
Stanfield
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Nafta Overview
NAFTA MARKET OVERVIEW
2012
Population (Millions)
GDP (U.S$Trillions)
314
$15.7
115
35
United
States
Colombian Presentation
Canada
United
States
Mexico
21
$1.4
$1.8
Canada
Mexico
NAFTA Overview
Total Retail Apparel Market
2012 (US$ Millions)
$203,740
$27,420
United
States
Colombian Presentation
Canada
22
$23,700
Mexico
NAFTA Overview
TOTAL APPAREL MARKET
2012 Dollar Sales
Department Stores
17.5%
29.5%
30.1%
21.8%
Discount Stores
20.7%
28.7%
Apparel Specialty Stores
21.8%
Sporting Goods Stores
3.8%
All Other Outlets
24.2%
6.9%
5.6%
United States
Canada
Colombian Presentation
53.8%
23
10.7%
1.7%
28.8%
Mexico
NAFTA Overview
CANADIAN RETAIL CHANNEL DEFINITIONS
Department
Stores
Sears
Discount
Stores
Walmart
The Bay
Aubiererie
Other
Better Clothing
Other Notable
Clothing Chains
Chains
Stores
Holt Renfrew Femme de Carrier
Costco
Harry Rosen
H&M
Superstore
Mark’s
Target
Laura
Winners
Northern Reflections
Giant Tiger
Reitman’s
Croteau
Simons
Zara
*Store Only
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Sport Chek/Experts
24
MERCADO TOTAL MEXICANO DE
ROPA PARA DAMAS
2012
Posicionamiento del Detallista
Ingreso Familiar
Alto
Palacio de Hierro
Liverpool
Sears
Zara
The Bay
Ilusion
Vicky Form
Martí
Suburbia
Andrea
Medio
Bershka
C&A
Sears Canadá
Avon
Coppel
Price Shoes
Comercial Mexicana
Wal-Mart Soriana
Bodega Aurrerá
Bajo
Más
Joven
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Media
Edad Media
25
Más
Viejo
NAFTA Overview
TOTAL APPAREL MARKET
2012 Dollar Sales
Largest Retailers
United States
Canada
Mexico
Walmart 8.0%
Walmart 10.1%
Suburbia 10.6%
J.C. Penney 7.6%
Sears 9.5%
Coppel 5.7%
Target 5.9%
The Bay 8.1%
Liverpool 5.6%
Kohl’s 3.0%
Mark’s 5.8%
Walmart 4.8%
Sears 2.8%
Winners 4.3%
Zara 3.2%
Macy’s 2.7%
Reitmans 3.8%
Sears 3.0%
T.J. Maxx 2.5%
Old Navy 3.6%
Bodega Aurrera 2.7%
Kmart 1.8%
H&M 3.3%
Soriana 1.4%
Nordstrom 1.7%
Gap 3.1%
C&A 1.3%
The Gap 1.3%
Moores 2.5%
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NAFTA Overview
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 market
• Has fewer channels of distribution
• Has a higher degree of retail concentration
• Has more promotional activity
• Has a higher percentage of independent apparel
retailers (especially in Quebec)
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Canadian Retail Apparel Market
CANADIAN TOTAL APPAREL MARKET
2012 Estimated Canadian Retail Dollar Sales
(C$Millions)
$27,422
$15,232
$8,700
Total
Market
Colombian Presentation
Women
Men
28
$1,503
$1,321
Girls
Boys
$666
Infants
Canadian Retail Apparel Market
TOTAL CANADIAN APPAREL MARKET
Retail Dollar Sales
January - December
Department Stores
18.0%
17.9%
17.7%
17.5%
Apparel Specialty Stores
50.6%
51.2%
52.7%
53.8%
Discount Stores
23.1%
22.4%
22.1%
21.8%
Sporting Goods Stores
All Other Outlets
2.7%
5.6%
2.9%
5.6%
3.2%
4.3%
3.6%
3.3%
2009
2010
2011
2012
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Canadian Retail Apparel Market
Canadian Apparel Market
2012 Retail Dollar Share
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%
100%
100%
100%
100%
Total
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Canadian Retail Apparel Market
TOTAL CANADIAN APPAREL MARKET
January - December 2012
Retail Dollar Sales
Retail Concentration
Top Ten
Retailers
54%
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Largest Ten Retailers
Walmart
Sears (Total)
The Bay
Mark’s
Winners
Reitman’s
Old Navy
H&M
Gap
Moores
All Other
Retailers
46%
31
10.1%
9.5%
8.1%
5.8%
4.3%
3.8%
3.6%
3.3%
3.1%
2.5%
Canadian Retail Apparel Market
Canada’s Largest Apparel Retailers
2012 Retail Sales
Men
Colombian Presentation
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
32
Canadian Retail Apparel Market
Income
CANADIAN WOMEN’S APPAREL MARKET
2012
High
Holt Renfrew
Banana Republic
Costco
The Gap
H&M
Average
Independent Retailers
Laura
The Bay
Winners
Mark’s
Mexx
Le Chateau
Sears
Reitmans
Dynamite
Superstore
Old Navy
Penningtons
Walmart
Garage
Aeropostale
Low
Young
Average
Age
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Older
Canadian Retail Apparel Market
Income
CANADIAN MEN’S APPAREL MARKET
2012
High
Harry Rosen
Holt Renfrew
Banana Republic
Sport Chek
Tip Top
American Eagle The Gap
Winners
Average
Costco
Eddie Bauer
The Bay
Moores
Mark’s
Le Chateau
Sears Retail
Old Navy
Superstore
Zellers
Walmart
Low
Young
Average
Age
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Older
Canadian Retail Apparel Market
Largest Apparel Specialty Chains
2012 Stores
Retailer
Stores
Mark’s
Reitmans
Le Chateau
Suzy Shier
La Senza*
Northern Reflection*
Penningtons
Smart Set
Garage
Rickis*
Stiches
La Vie En Rose
Moores*
Addition Elle
Jacob
Tip Top
Mexx*
384
362
241
190
185
160
152
150
147
142
136
128
118
116
102
99
91
*Foreign Owned
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Canadian Retail Apparel Market
Largest Apparel Specialty Chains
2012 Stores
Men
Women
Juvenile
Unisex
Mark’s 384
Moores 119
Tip Top 99
Randy 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
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Canadian Retail Apparel Market
Canadian Men’s Apparel Sales
Retail Dollar Sales
% of Dollar Sales
Merchandise Category
2008
2009
2010
2011
2012
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
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Canadian Retail Apparel Market
Canadian Women’s Apparel Sales
Retail Dollar Sales
% of Dollar Sales
Merchandise Category
2008
2009
2010
2011
2012
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
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Canadian Apparel Retailer Profile
Department Store
Colombian Presentation
Sears Canada
39
Sales (2011)
C$4.3 Billion
Stores
118 Department Stores
48 Sears Home Stores
269 Sears Dealer Stores
11 Outlet Stores
Headquartered
Tornoto, Ontario
(416) 362-1711
www.sears.ca
Strengths
Women’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%
Canadian Apparel Retailer Profile
Department Store
Colombian Presentation
The Bay
40
Sales (2011)
C$3.2 Billion
Stores
90
Headquartered
Toronto, Ontario
(905) 792-4400
www.hbc.com
Strengths
Men’s Suits
Brand Selection
Private Labels
Joint 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%
Canadian Apparel Retailer Profile
Discount Store
Colombian Presentation
Walmart Canada
41
Sales (2011)
U.S.$22.4 Billion
Stores
209 Walmart Supercenters
170 Walmart Stores
Headquartered
Toronto, Ontario
(905) 821-2111
www.walmartcanada.ca
Strengths
Apparel basics
Childrenswear
Low price perception
National Brand/Private
Label Apparel Ratio
10%/90%
Private Labels
George, g21, Athletic Works
Possibility of Sourcing
from Colombia
10% - 15%
Canadian Apparel Retailer Profile
Reitman’s Canada
Apparel Specialty Store
Montreal Quebec
www.reitmans.ca
Sales (2012) C$1.1 Billion
Stores Total 959 Stores
Stores
Colombian Presentation
42
Banner
Type
363
Reitman’s
Women’s
167
Pennington’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%
Canadian Apparel Retailer Profile
Mark’s
Apparel Specialty Store
Colombian Presentation
43
Sales (2011)
C$1.02 Billion
Stores
386
Headquartered
Calgary, Alberta
(403) 255-9220
www.marks.com
Strengths
Men’s Causalwear,
Men’s Workwear,
Scrubs/healthcare apparel,
Work/safety footwear,
Product Innovation
National 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%
Canadian Apparel Retailer Profile
Apparel Specialty Store
Colombian Presentation
Simons
44
Sales (2011)
C$750 Million
Stores
8
Headquartered
Quebec City, Quebec
(418) 692-3630
www.simons.ca
Strengths
Casual Wear
Private label
18 – 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%
Canadian Apparel Retailer Profile
Apparel Specialty Store
Colombian Presentation
La Vie En Rose
45
Sales (2011)
C$400 Million
Stores
La Vie En Rose 91
La Vie En Rose Aqua 23
La Vie En Rose Outlets 40
Headquartered
Montreal, Quebec
(514) 256-9446
www.lavieenrose.com
Strengths
Private Label Lingerie
Swimwear
National
Brand/Private
Label Apparel
Ratio
5%/95%
Private Labels
La Vie En Rose
Possibility of
Sourcing from
Colombia
20% - 25%
Canadian Apparel Retailer Profile
Apparel Specialty Store
Colombian Presentation
Groupe Bikini Village Inc
46
Sales (2011)
C$44 Million
Stores
52
Headquartered
Ste-Julie Quebec
(450) 449-1310
www.bikinivillage.com
Strengths
Swimwear (largest
swimwear specialty
chain), Beachwear
National
Brand/Private Label
Apparel Ratio
85%/15%
Private Labels
Bikini Lounge
Possibility of
Sourcing from
Colombia
10% - 15%
Canadian Apparel Retailer Profile
Sporting Goods Store
Colombian Presentation
FGL Sports Ltd.
Sales (2011)
C$1.55 Billion
Stores
Total 534
Athlete’s World 48
Atmosphere 62
Sport Chek 165
Sport Mart 41
Sports Experts 71
The Tech Shop 3
National Sports 18
Intersports 47
Headquartered
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%
47
Canadian Apparel Retailer Environment
Compared to the U.S. apparel retailers Canadian
apparel retailers:
• Have chains with a fewer number of stores
• Are less dependent on their POS data for
decision making purposes
• Have not been able to build their private labels
into true private label brands
• Are not leveraging social media for marketing
• Have either no loyalty programs or the ones
they have do not effect a consumers shopping
behavior
• Charge higher prices/have greater margins
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Canadian Apparel Retailer Environment
Why are prices higher in Canada than U.S.?
• Protectionist policies between Canada and other
countries and between Provinces
• Less advantageous economies of scale
• Higher transportation costs
• Bilingual packaging requirements
• Higher mall rents
• Higher labor costs for retail workers
• Less competition
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Trend’s in Canadian Apparel Retailing
• Increasing presence of international
retailers
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Trends in Canadian Apparel Retailing
A. Increasing Presence of International Retailers
American
European
Abercrombie & Fitch Gymboree
Oakely
Aeropostale
Hollister
Old Navy
American Apparel
Hot Topic
Pink
American Eagle
J.Crew
Talbots
Ann Taylor
Jones New York
The Gap
Jack & Jones
Anthropoligie
Juicy Couture
Tommy Bahama
Lacoste
Banana Republic
Justice
Tommy Hilfiger
Mango
BCBG MaxAzria
La Senza
Tory Burch
Olsen Europe
Bebe
Lucky Brand Jeans True Religion
Brooks Brothers
Maurices
Urban Behavior
Carters
Mexx
Urban Outfitters
Children’s Place
Michael Kors
Victoria Secret
Top Shop
David’s Bridal Shop
Moores
7 For All Mankind
Zara
Eileen Fisher
Motherhood
Forever 21
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Benetton
Escada
H&M
Scotch & Soda
Steilmann
U.S. Retailers in Canada
2013
Colombian Presentation
2014
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Trend’s in Canadian Apparel Retailing
• Increasing presence of international retailers
• Declining share of department stores and
independent specialty retailers
• Increasing share of private label apparel brands
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Trend’s in Canadian Apparel Retailing
Private Label Growth
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Trend’s in Canadian Apparel Retailing
Increasing Share of Private Label Brands
Canadian Retail Apparel Market
2012 Dollars
Private Label’s Market Share
Canadian Total Retail Apparel
Market
Dollar Share
Private
Labels
National
Brands
54.8%
55.9%
56.4%
52.2%
52.6%
47.8%
47.4%
45.2%
44.1%
43.6%
2011
2012
2008
Colombian Presentation
2009
2010
47.3%
Men
55
66.2%
Women
49.5%
Juvenile
Trend’s in Canadian Apparel Retailing
• Increasing presence of international retailers
• Declining share of department stores and
independent specialty retailers
• Increasing share of private label apparels
• Emergence of new apparel sectors
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Trend’s in Canadian Apparel Retailing
Canadian Apparel Market
Distribution of Retail Sales
Apparel Segment
6%
2%
Luxury
Better
8%
6%
67%
Middle
60%
2%
Fast Fashion
5%
23%
Mass
21%
2009
Colombian Presentation
2013(E)
57
Source: Trendex
Trend’s in Canadian Apparel Retailing
• Increasing presence of international retailers
• Declining share of department stores and
independent specialty retailers
• Increasing share of private label apparels
• Emergence of new apparel sectors
• “Fast Fashion” effecting all facets of the market
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Trends in Canadian Apparel Retailing
Growing Importance of Fast Fashion
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Trends in Canadian Apparel Retailing
Fast Fashion/Supply Chain
Canadian Fast Fashion Retailers
Total
Atlantic
Quebec
Ontario
Praries
British
Columbia
Forever 21
25
-
5
12
4
4
H&M
61
2
14
30
8
5
Zara
19
-
7
7
3
2
Retailers
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Trend’s in Canadian Apparel Retailing
H&M Canada
Total Revenue C$ (Millions)
$424
$383
$364
$298
$247
2012
2011
2010
Total Sales
+10.0%
Stores
61
Sales Per Store $6,956
(000)
+5.2%
58
$6,488
+19.6%
55
$6,494
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61
2009
+20.3%
52
$5,737
2008
+22.4%
43
$5,766
Trend’s in Canadian Apparel Retailing
• Increasing presence of international retailers
• Declining share of department stores and
independent specialty retailers
• Increasing share of private label apparels
• Emergence of new apparel sectors
• “Fast Fashion” effecting all facets of the market
• Small but increasing share for internet retailing
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Trend’s in Canadian Apparel Retailing
E-Commerce Sales of Apparel/
Accessories
E-Commerce Sales of
Footwear
2011 US$ Billions
2011 US$ Billions
$34.2
$7.8
$1.1
$0.37
Canada
Colombian Presentation
U.S.
Canada
63
U.S.
Canadian Consumer Apparel Behavior
What can be said about a Canadian consumers apaprel
purchasing 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
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Canadian Market Entry Plan
Phases
I.
Research the market / Identify a niche
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65
Canadian Market Entry Plan
Identify a possible niche in terms of
•
Products
•
Price Points
•
Styling
•
Fabrications
• Retail Channels / Retailers
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Canadian Market Entry Plan
Canadian Women’s Lingerie Market
2012
Largest Retailers
Estimated Sales
(Millions)
Retailer
Stores
Walmart
379
Sears
118
27.2%
La Senza
159
91
28.2%
La Vie En
Rose
The Bay
90
Penningtons
167
Addition Elle
163
Jacob
123
Lilliane
Lingerie
32
Costco
82
Channels
$1,500
Dept
Stores
Discount
Stores
Apparel
Specialty
Stores
142
39.7%
All
Others
Units
Colombian Presentation
4.9%
Dollars
67
Canadian Market Entry Plan
Women’s Jean Market
2012
Estimated Sales (000)
$990,100
Channels
Dept
Stores
Discount
Stores
Apparel
Specialty
Stores
All
Others
26,600
Units
Colombian Presentation
13.8%
20.4%
62.4%
3.4%
Dollars
68
Largest Retailers
Retailer
Stores
Walmart
379
Sears
118
Mark’s
386
The Bay
90
Penningtons
167
Reitman’s
361
Winners
222
Old Navy
65
Bootlegger
95
Garage
147
CANADIAN WOMEN'S JEANS MARKET
January - December 2012
Retailer Positioning
Average Price
High
Levi 1850
Bootlegger
American
Eagle
The Gap
Le Chateau
Holt Renfrew
The Bay
Sears Retail
Dynamite
Average
Old Navy
Garage
Stitches
Mexx
Pennington’s
Bluenotes
Wal-Mart
Northern
Reflections
Mark's
Winners
Costco
Low
20
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41
Average Age
69
62
Canadian Market Entry Plan
Men’s Jean Market
2012
Estimated Sales (000)
$696,260
Colombian Presentation
Retailer
Stores
Walmart
379
Sears
118
Dept
Stores
15.4%
Mark’s
386
Discount
Stores
29.9%
The Bay
90
American
Eagle
94
Winners
222
Old Navy
65
Costco
82
Bluenotes
125
Bootlegger
95
Apparel
Specialty
Stores
All
Others
22,930
Units
Channels
Largest Retailers
50.0%
4.7%
Dollars
70
CANADIAN MEN'S JEANS MARKET
January - December 2012
Retailer Positioning
Average Price
High
Holt Renfrew
Harry Rosen
Levi 1850
The Bay
Bootlegger
American
Eagle
Levi's Only Stores
The Gap
Mark's
Winners
Average
Sears Retail
Old Navy
Sears Catalog
Bluenotes
Stitches
Wal-Mart
Costco
Low
19
Colombian Presentation
39
Average Age
71
59
Canadian Market Entry Plan
Men’s Swimsuit Market
2012
Estimated Sales (000)
Channels
Dept Stores
$33,000
Sporting
Goods
Stores
All Others
1050
Units
Colombian Presentation
Discount
Stores
Apparel
Specialty
Stores
14.0%
18.3%
30.0%
28.2%
9.5%
Dollars
72
Largest Retailers
Retailer
Stores
Forzani Group
480
Sears
118
Walmart
379
Winners
222
The Bay
90
Mark’s
386
Mountain Coop
14
Roots
115
American
Eagle
80
Old Navy
65
Costco
82
Canadian Market Entry Plan
Women’s Swimsuit Market
2012
Estimated Sales (000)
Channels
Dept
Stores
1,980
Discount
Stores
$222
Units
Colombian Presentation
Apparel
Specialty
Stores
All
Others
25.6%
15.9%
43.5%
15.0%
Dollars
73
Largest Retailers
Retailer
Stores
Sears
118
Bikini Village
52
Walmart
379
The Bay
90
Forzani Group
480
Penningtons
167
La Vie En
Rose Aqua
23
Roots
115
Costco
82
Winners
222
Canadian Market Entry Plan
Men’s Underwear Market
2012
Estimated Sales (000)
Retailer
Stores
Walmart
379
Sears
118
Mark’s
386
The Bay
90
Costco
82
Winners
222
Giant Tiger
205
26.3%
Simons
8
111
5.3%
Real Canadian
Superstore
Channels
$248,380
Dept
Stores
Discount
Stores
Apparel
Specialty
Stores
All
Others
53,185
Units
Colombian Presentation
Largest Retailers
21.6%
46.8%
Dollars
74
Canadian Market Entry Plan
Phases
I.
Research the market / Identify a niche
II. Develop a USP
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75
Canadian Market Entry Plan
Phase II – Develop a USP
FACT
Critical to success in the Canadian
apparel market is identifying your
company’s USP and developing a
Canadian marketing plan
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Canadian Market Entry Plan
Developing a Unique Selling Proposition (USP)
What is the need that we satisfy? What is our
Raison d’être?
What is our core competence? What are we
really good at?
What can we legitimately claim to be better at
than anyone else?
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77
Canadian Market Entry Plan
Colombia’s Possible Strategic Advantages as An
Apparel 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’s
underwear manufacturing and needlework
capabilities
• Experience in dealing with U.S. apparel retailers
If your company cannot legitimately claim one or
more of these strategic advantages…
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78
Canadian Market Entry Plan
Save your Money
and
Stay Home
However, 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.
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79
Canadian Market Entry Plan
Dealing with Canadian Prospects
If a Branded Manufacturer
•Offer exclusivity
•Offer marketing support money
•Offer to warehouse product in Canada
If a Private Label Manufacturer
•Always quote in U.S. dollars
•Emphasize small quantities/speed to
market/flexibility
In either case small minimums and speed to
market will be seen as a competitive advantage
Attendance at Canadian Trade Shows is not
necessarily a must
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Canadian Market Entry Plan
Top Canadian Prospects for Colombian Apparel
Manufacturers
(Excludes Foreign Retailers)
Product Area
Top
Second
Third
Men’s Jeans
Mark’s
The Bay
Sears
Women’s Jeans
Mark’s
Ricki’s
Bootlegger
Women’s Swimwear
Bikini Village
La Vie En
Rose
Reitmans
Corp
Men’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
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Canadian Market Entry Plan
Options 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 in
South America
Bottom Line: Think Outside the “Box”
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82
Bottom Line
The Canada – Colombia Free Trade Agreement
Offers 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.
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83
THANK YOU
Questions about Canada or Mexico:
Randy Harris,
President Trendex North America
Harris@trendexna.com
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