International Apparel Federationcottonafrica.com/documents/ACTIF PowerBreakfast/Session 2... ·...

International Apparel Federation

Source Africa, April 12th, 2013, Capetown

| [email protected] | www.iafnet.com


• A brief introduction of IAF• World trade in clothing• Example EU, sourcing in Africa, regionalsourcing

• Developments in e‐commerce• Opportunities!


Building Bridges in the Fashion Chain


A Brief Introduction to the IAF


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


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



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


IAF’s Membership


• 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)


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


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)


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)


0

1000

2000

3000

4000

5000

6000

2003 2007 2011

Clothing exports

Clothing imports


Latest WTO index of trade volume

World clothing market(2012, retailvalue in US$ thousands, Euromonitor)


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



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


Market size clothing(2012, retail value in € billion, Euromonitor)

0

10

20

30

40

50

60

2008 2009 2010 2011 2012

GermanyUKItalyFranceSpain


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


Imports into EU of clothing in 1000s €s (source: Eurostat)


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)


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 %


Source: prof. G. Gerrefi

Trends in share of imports of knitted garmentsinto the EU (2010‐2011‐2012) Source: Eurostat


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


Series1

Series2

Series3

0

10

20

30

40

50

60

70

ChinaBangladesh

TunesieRoemenie

Turkije

Internet sales clothing Europe


Average web orderin Euro’s

0

20

40

60

80

100

120

140

Euro's

Euro's


Return ordersin %

0

5

10

15

20

25

percentage

percentage


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


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


Building Bridges in the Fashion Chain


www.iafnet.com


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