verview extile & hains d in part or The contents of this ...20Overview... · S trategic O verview...

37
Strategic Overview on Global Textile & Apparel Supply Chains Dynamics Advisors to the world Textile, Apparel & Fashion Industry ' 2007 ' 2007 The contents of this presentation may not be copied or circulate The contents of this presentation may not be copied or circulate d in part or d in part or entirety without the express written permission of Werner Intern entirety without the express written permission of Werner Intern ational ational

Transcript of verview extile & hains d in part or The contents of this ...20Overview... · S trategic O verview...

Stra

tegi

cO

verv

iew

on

Glo

bal T

extil

e&

App

arel

Supp

ly C

hain

sDy

nam

ics

Adv

isors

to

the

wor

ldTe

xtile

,A

ppar

el&

Fash

ion

Indu

stry

© 2

007

© 2

007

The

cont

ents

of t

his

pres

enta

tion

may

not

be

copi

ed o

r circ

ulat

eTh

e co

nten

ts o

f thi

s pr

esen

tatio

n m

ay n

ot b

e co

pied

or c

ircul

ate d

in p

art o

r d

in p

art o

r en

tiret

y w

ithou

t the

exp

ress

writ

ten

perm

issi

on o

f Wer

ner I

nter

nen

tiret

y w

ithou

t the

exp

ress

writ

ten

perm

issi

on o

f Wer

ner I

nter

n atio

nal

atio

nal

www.wernerinternational.com 2

!W

erne

r is

a m

ana

gem

ent

cons

ultin

g pr

actic

e gl

obal

ly

act

ive

since

193

9, fo

cuse

d ex

clus

ivel

y on

ass

istin

g th

e te

xtile

, ap

pare

l an

d fa

shio

n in

dust

ryin

im

prov

ing

its

per

form

anc

e an

d o

ptim

ising

its a

ctiv

ities

.

!W

erne

ris u

niqu

e, c

omb

inin

g sp

ecia

lised

exp

ertis

e in

all

tech

nica

l a

reas

of

th

e su

pply

ch

ain

with

gl

obal

m

arke

ting

know

-how

and

exc

eptio

nal n

etw

orki

ng.

!W

erne

rop

erat

es

thro

ugho

ut

the

wor

ld

with

an

in

tern

atio

nal

team

of

hi

ghly

sp

ecia

lized

se

nior

co

nsul

tant

san

d r

egio

nal

or n

atio

nal

rep

rese

nta

tives

co

ordi

nate

d

thro

ugh

thre

e op

erat

iona

l of

fices

in

Br

usse

ls, W

ashi

ngto

n an

d Be

ijing

.

Wer

ner I

nter

natio

nal

www.wernerinternational.com 3

TE

CH

NIC

AL A

REA

!Be

nchm

arki

ng fo

r all

man

ufac

turin

g ac

tiviti

es!

Prod

uctiv

ity im

prov

emen

ts &

con

trol

!Pr

oduc

t Dev

elop

men

t man

agem

ent

!To

tal Q

ualit

y m

anag

emen

t!

Man

ufac

turin

g st

anda

rds a

nd c

ontro

l!

Prev

entiv

e m

aint

enan

ce!

Stan

dard

cos

t sys

tem

des

ign

!Su

perv

isor &

ope

rato

r tra

inin

g pr

ogra

m!

Man

agem

ent t

rain

ing

and

deve

lopm

ent

!So

urci

ng s

trate

gy a

nd su

pplie

rs a

ccre

dita

tion

!M

anag

emen

t Inf

orm

atio

n Sy

stem

s!

New

pla

nt st

art-

up

Wer

ner S

ervi

ces

www.wernerinternational.com 4

MA

RK

ET

ING

AN

D S

TR

AT

EG

Y A

RE

A

!M

arke

t int

ellig

ence

and

stra

tegi

c m

arke

t ana

lysis

!A

udit

e be

nchm

arki

ng f

or t

he m

arke

ting,

bra

ndin

g an

d re

taili

ng a

reas

!To

p M

anag

emen

t tra

inin

g!

Partn

ers

sear

ch!

Acq

uisit

ions

e J

oint

Ven

ture

s!

Stra

tegi

c Bu

sines

s Pl

anni

ng!

Deve

lopm

ent o

f Glo

bal s

ourc

ing

stra

tegi

es!

Mar

ketin

g St

rate

gies

!M

erch

andi

sing

man

agem

ent

!Re

tail

man

agem

ent

!Br

and

deve

lopm

ent

Wer

ner S

ervi

ces

www.wernerinternational.com 5

Som

e C

usto

mer

s�!

Ove

r 65

year

sof

con

sulti

ng in

text

ile/a

ppar

el/f

ashi

on in

dust

ry!

Ove

r 5,0

00as

signm

ents

car

ried

out

!Pr

esen

ce in

mor

e th

an 6

5 co

untri

es

www.wernerinternational.com 6

"P

ersp

ecti

ve 1

:

A g

loba

l in

dust

ry m

atu

re f

or

grow

th o

uts

ide

trad

itio

nal

w

este

rn m

arke

ts

www.wernerinternational.com 7

"Si

nce

2005

, th

e w

orld

te

xtile

an

d ap

pare

l in

dust

ry

has

acce

lera

ted

in

its

com

plex

tra

nsfo

rmat

ion

"A

ne

w

wor

ld

of

com

petit

ors

(but

al

so

cons

umer

s) h

as e

nter

ed t

he g

loba

l m

arke

t w

ith t

heir

impr

essiv

e ca

pabi

litie

s an

d w

ill t

o gr

owth

"By

20

10

Chi

nais

expe

cted

to

re

pres

ent

40/4

5%of

glo

bal t

rade

, Ind

ia 1

7/20

%

Pers

pect

ive

-1

www.wernerinternational.com 8

"De

spite

its

im

pres

sive

grow

th

trend

,C

hina

�s r

ising

cos

ts a

nd p

erce

ived

risk

s ar

e cr

eatin

g re

leva

nt

oppo

rtuni

ties

for

othe

r low

cos

t cou

ntrie

s"

Indi

ais

rapi

dly

expa

ndin

g its

rol

e w

ith a

n he

avy

wea

ve o

f new

cap

acity

bui

ld-u

p in

ve

rtica

l int

egra

tion

"Pa

kist

an,

Viet

nam

, C

ambo

dia

and

Bang

lade

shar

e le

vera

ging

on

thei

r lo

w

man

ufac

turin

g co

sts

and

build

ing

up m

ore

text

ile c

apac

ity

Pers

pect

ive

-1

www.wernerinternational.com 9

"Eg

ypt

is cu

rrent

ly l

ooki

ng a

t te

xtile

s w

ith n

ew

emph

asis

"Tu

rkey

is

beco

min

g a

criti

cal

regi

onal

pla

yer,

clos

ely

conn

ecte

d to

Ita

ly,

repo

sitio

ning

an

d cr

eatin

g a

num

ber o

f new

regi

onal

bra

nd p

laye

rs(T

urqu

ality

)"

East

ern

Euro

pean

cou

ntrie

s, d

ue t

o th

eir

grow

ing

cost

s ar

e ra

pidl

y re

focu

sing

and

repo

sitio

ning

on

high

er m

arke

t seg

men

ts"

Sout

h an

d C

entra

l A

mer

ica

mai

ntai

n a

rele

vant

fo

cus

on te

xtile

"Ita

ly s

tilld

efen

ds it

s ro

le in

the

luxu

ry s

egm

ents

Pers

pect

ive

-1

www.wernerinternational.com

10

Impo

rts P

enet

ratio

n in

Wes

tern

Mar

kets

199319941995199619971998199920002001200220032004200520062007200820092010

40%

50%

60%

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80%

90%

GERMANY

USA

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IMPO

RT

PEN

ETR

ATIO

N T

EXTI

LES

& C

LOTH

ING

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11

Mat

ure

USA

App

arel

Mar

ket

051015202530 1989

1991

1993

199519

97

1999

2001

2003

2005

2007

2009

Billion SME

Dom

estic

Impo

rts

www.wernerinternational.com

12

Mat

ure

EUA

ppar

el M

arke

t

Cons

umpt

ion

of C

loth

ing

EU-1

5

020406080100

120

1990199119921993199419951996199719981999200020012002200320042005200620072008200920102011

Billion EURO

Imports

Domestic

www.wernerinternational.com

13

"W

hile

T&

A

cons

umpt

ion

in W

este

rn m

arke

ts

grow

s m

oder

atel

y,

impo

rts

have

al

mos

t re

ache

d 85

-90%

of to

tal c

onsu

mpt

ion

"W

e m

ust n

ow fa

ce th

e im

pact

of t

he c

apac

ity

bubb

lebu

ilt in

ant

icip

atio

n of

mar

ket o

peni

ng

and

quot

a re

mov

al a

nd c

reat

ing

a de

flatio

nary

en

viro

nmen

t"

How

ever

, th

e tim

e ga

p be

twee

n th

e po

sitiv

e an

d ne

gativ

e ef

fect

s of

lib

eral

izatio

n is

too

ofte

n dr

ivin

g us

to fo

rget

abo

ut th

e re

al m

issio

nof

trad

e lib

eral

izatio

n

Pers

pect

ive

-1

www.wernerinternational.com

14

Per C

apita

Con

sum

ptio

n

PE

R C

AP

ITA

TEX

TIL

E C

ON

SU

MP

TIO

N

6.8

17.7

218.

54.

55.5

42.

8

05

1015

2025

GLO

BA

L A

VE

RA

GE

DEV

ELO

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D C

OU

NTR

IES

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ERA

GE

US

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OU

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IES

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ERA

GE

CH

INA

PA

KIS

TA

N

IND

IA

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per

pers

on

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15

Wor

ld C

onsu

mpt

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Gro

wth

WOR

LD T

EXTI

LE &

APP

AREL

TRA

DE

010

020

030

040

050

060

070

080

090

0

1980

1982

1984

1986

1988

1990

1992

1994

1996

1998

2000

2002

2004

2006

2008

2010

2012

2014

BN US$

380

BN

$

800

BN

$?

www.wernerinternational.com

16

The

futu

re g

loba

l mar

ket f

or te

xtile

and

ap

pare

l is

expe

cted

to w

itnes

s a

rele

vant

ex

pans

ion

than

ks to

:"

Con

sum

ptio

n gr

owth

in n

ew m

arke

ts"

Glo

bal e

xpan

sion

of M

oder

n re

tail

spac

e

"Ea

ster

n Eu

rope

and

ex

Russ

ian

bloc

k"

Turk

ey a

nd M

iddl

e Ea

st"

Sout

h Ea

st A

sia

"In

dia

"C

hina

"So

uth

Am

eric

aNew

Mar

kets

www.wernerinternational.com

17

Reta

il Ex

pans

ion

Acr

oss

Euro

peN

ew r

etai

l su

rfac

e 2

00

6-2

00

8 -

IND

EX

www.wernerinternational.com

18

"C

omm

oditi

es B

ubbl

e"

Hege

mon

ic r

ole

of I

ndia

& C

hina

w

ith th

eir i

nteg

rate

d su

pply

cha

ins

"N

eed

for

diffe

rent

iatio

n to

sus

tain

pr

emiu

m p

rodu

cers

(Ita

ly �

turk

ey)

"C

ontin

uous

fig

ht

for

com

mod

ity

mar

kets

and

cos

t lea

ders

hip

"Bo

om o

f air/

sea

ship

men

ts

Reca

pG

loba

l Ind

ustry

www.wernerinternational.com

19

"P

ersp

ecti

ve 2

:

New

ly s

hap

ed g

loba

l su

pply

an

d va

lue

chai

ns

www.wernerinternational.com

20

MEG

A R

ETA

ILER

SW

AL

MART,

CARREFO

UR �

QU

ICK

FA

SH

ION

R

ETA

ILER

SZ

AR

A,

H&

M�

MEG

AB

RA

ND

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LEVI�S,

WALT

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NEY,

JON

ES,

DKN

Y

NIC

HE

BR

AN

DS

Zeg

na,

Faco

nnab

le,

Max

Mar

a

LU

XU

RY

BR

AN

DS

Gucc

i,Ysl

,Pr

ada,

Arm

ani,

PRL

WESTERN

FASH

ION

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ES

SO

UR

CIN

G &

MER

CH

AN

DIS

ING

NETW

OR

KS

(Li &

Fung)

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W C

OS

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S

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PIO

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OD

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S

REM

OTE

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RO

XIM

ITY

Glo

bal S

uppl

y C

hain

Mod

els

www.wernerinternational.com

21

Glo

bal S

uppl

y C

hain

Mod

els

MEG

A R

ETA

ILER

SW

AL

MART,

CARREFO

UR �

QU

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SH

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ETA

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SZ

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AB

RA

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NEY,

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BR

AN

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le,

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LU

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BR

AN

DS

Gucc

i,Ysl

,Pr

ada,

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ani,

PRL

WESTERN

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TEXTIL

ES

SO

UR

CIN

G &

MER

CH

AN

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NETW

OR

KS

(Li &

Fung)

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W C

OS

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ME

PA

RTN

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S

MARKET C

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PIO

NS

SU

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S

CH

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ETTO

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HAIN

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IALTY

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ED

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TED

MID

CO

ST

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DU

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RS

LO

W C

OS

T

PR

OD

UC

ER

S

REM

OTE

P

RO

XIM

ITY

orch

estr

ate

mer

chan

dise

www.wernerinternational.com

22

Prod

uctio

n Vo

lum

e:

Trad

ition

al V

SSt

rate

gic

Pre

WTO

Futu

re

80

%

20

%

20

%

80

%

Transactional

Vendors

Relationship

Strategic

Partnerships

www.wernerinternational.com

23

Labo

ur C

ost C

ompa

rison

www.wernerinternational.com

24

Valu

e ad

ding

to

day

still

m

eans

�b

ette

r�

prod

ucts

(v

alue

=

diffe

rent

iatio

n)

but

incr

easin

gly

mor

e se

rvic

e-ric

h pr

oduc

ts(v

alue

= s

ervi

ce +

inta

ngib

les)

"Lu

xury

seg

men

ts s

till

heav

ily r

ely

on t

he

Euro

pean

te

xtile

su

pply

ch

ain

for

thei

r ex

clus

ivity

and

diff

eren

tiatio

n re

quire

men

ts

"A

ll ot

her

mar

ket

segm

ents

sh

are

quite

sim

ilar �

intri

nsic

� pr

oduc

ts d

iffer

entia

ted

by

thei

r ser

vice

con

tent

Tran

sfor

mat

ion

ofVa

lue

Cha

ins

www.wernerinternational.com

25

Valu

e is

toda

y cr

eate

d le

ss

and

less

on

in

trins

ic q

ualit

y an

d in

crea

singl

y on

inta

ngib

le

prop

ertie

s:

"Di

ffere

ntia

tion

of s

tand

ard

prod

ucts

"Ex

clus

ivity

"Hy

per r

eact

ivity

"In

nova

tive

& C

reat

ive

inte

grat

ion

"Pa

ckag

ing

and

form

ats

"C

usto

miza

tion

Tran

sfor

mat

ion

ofVa

lue

Cha

ins

www.wernerinternational.com

26

"P

ersp

ecti

ve 3

:

Stra

tegi

c sn

apsh

ots

"Sk

ills

& C

ompe

ten

ces

"Ke

y Tr

ends

www.wernerinternational.com

27

1.O

rche

stra

tors

&

Mer

chan

dise

rs2.

Bran

d m

anag

emen

t3.

Inno

vatio

n4.

Cha

ract

eriza

tion

and

diffe

rent

iatio

n an

d of

st

anda

rds

-Tim

e to

mar

ket

Stra

tegi

c Sn

apsh

ots:

Sk

ills

& C

ompe

tenc

es fo

r Suc

cess

www.wernerinternational.com

28

Supp

ly C

hai

n O

rch

estr

ator

sC

apab

ility

to

orch

estr

ate

frag

men

ted

and

disp

erse

tex

tile

su

pply

ch

ain

s le

vera

ging

on

in

telli

gen

ce,

unde

rsta

ndi

ng,

tech

nol

ogy

and

orga

niz

atio

nal p

ract

ices

Mer

chan

dise

rsC

apab

ility

to

crea

te �

con

sist

ency

�ac

ross

ra

nges

dev

elop

ed a

nd p

rodu

ced

acro

ss t

he

glob

e �

leve

ragi

ng

on

clea

r ra

nge

ar

chit

ectu

re

Stra

tegi

c Sn

apsh

ots

1:

Orc

hest

rato

rs a

nd M

erch

andi

sers

www.wernerinternational.com

29

Ret

ail b

ran

dsG

row

ing

in

im

port

ance

to

cr

eate

di

ffer

enti

atio

n, lo

yalt

y an

d pr

emiu

ms

B2

B b

ran

din

gIn

a

glob

al

wor

ld

of

opti

ons,

la

rge

reta

ilers

and

bra

nds

are

loo

sin

g pr

odu

ct

know

-how

an

d re

ly m

ore

and

mor

e on

B

2B b

ran

ds

Stra

tegi

c Sn

apsh

ots

2:

Re

tail

and

B2B

Bran

ding

www.wernerinternational.com

30

Inn

ovat

ion

Th

e gl

obal

mar

ket

is e

ager

fo

r in

nov

atio

n:

new

pr

odu

cts,

n

ew

inte

grat

ed

syst

ems,

new

app

licat

ion

Stra

tegi

c Sn

apsh

ots

3: In

nova

tion

www.wernerinternational.com

31

The

glob

al

indu

stry

de

sper

atel

y n

eeds

fa

st

and

effe

ctiv

e di

ffer

enti

atio

n

and

char

acte

riza

tion

of

sta

nda

rd p

rodu

cts:

addi

ng

valu

e to

st

anda

rd

prod

ucts

at

th

e la

test

st

age

poss

ible

+ N

ew n

eed

for

�fas

t�an

d cu

stom

will

soo

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boom

wit

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tern

et �

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mod

el c

han

ging

th

e in

dust

ry

Stra

tegi

c Sn

apsh

ots

4:

Diffe

rent

iatio

n &

Cha

ract

eriza

tion

www.wernerinternational.com

32

1.N

o M

ore

Seas

ons

2.Ex

tern

al fa

ctor

s to

ra

pidl

y ch

ange

sc

enar

ios

3.C

usto

miza

tion

& th

e W

eb

Stra

tegi

c Sn

apsh

ots:

Ke

y Tr

ends

www.wernerinternational.com

33

"G

loba

l War

min

g"

Mul

ti se

ason

al a

ppar

el"

Fast

Fas

hion

con

tinua

l re

new

al (M

ake

old

�sea

sona

l thi

nkin

g�ob

sole

te)

Stra

tegi

c Sn

apsh

ots:

N

o M

ore

Seas

ons

www.wernerinternational.com

34

"Ex

chan

ge ra

tes

$, E

uro,

Yua

n,

Rupe

e�"

Petro

l and

dire

ct im

pact

of M

MF

& A

ir tra

nspo

rt�"

Polit

ical

situ

atio

n�

�ca

n ch

ange

glo

bal l

ands

cape

an

d su

pply

cha

ins

in a

few

mon

ths

Stra

tegi

c Sn

apsh

ots:

Ex

tern

al F

acto

rs

www.wernerinternational.com

35

"In

tern

et s

ales

rapi

dly

grow

ing

(US

and

north

Eur

ope)

"Fo

cus

on s

peci

fic p

rodu

ct

cate

gorie

s"

Will

be

a re

leva

nt c

hann

el fo

r ap

pare

l sal

es"

Exam

ple:

ww

w.N

IKEi

D.co

m

Stra

tegi

c Sn

apsh

ots:

C

usto

miza

tion

& th

e W

eb

www.wernerinternational.com

36

It is

goin

g to

be

a ch

alle

ngin

g gl

obal

mar

ket f

ull o

f thr

eats

bu

t also

full

of in

cred

ible

op

portu

nitie

s

It is

goin

g to

be

a ta

lent

in

tens

ive

mar

ket w

here

tale

nt

will

be

key

succ

ess

fact

or

Fina

l Mes

sage

www.wernerinternational.com

37

Than

k Yo

u!

ww

w.w

erne

rinte

rnat

iona

l.com