Phil Zwibel 43 Years of experience Retail Buyer of all categories. VP and GM of BATA Canada. Won product development awards and management awards Opened offices in Korea, Taiwan and China Pioneer importer from Italy, Spain, France, Greece, Korea and China. Produced 1.2 million pairs of shoes in CANADA, imported 3.5 million pairs The Footwear expert for Our version of Pro- Export. Starting sales from 6 Colombian shoe factories to Canada 2
Over 90% of consumption is either Chinese made or subcontracted to one of its satellite countries: Viet-Nam, Cambodia. 4
Winter for 5 months (BOOTS) EAGER for Summer so SANDALS are a big business! Imports comprise over 95% of the market. China and its satellites represent about 90%. 1985, 169 factories, 43 million pr. Imports were 63 % of the market Despite years of industry protection through duties, import restrictions…….. There are just a few, mostly small scale factories focused on BOOTS, Waterproof, and Industrial. THEY ALL ARE BASED ON THE GLOBAL MARKET AND EXPORT They are SPECIALIZED and BRANDED. 5
This 1/3 of the market is approached by local distributors. (Larger enterprises can consider hiring direct agents or setting up a local company.) The main question is: where do your shoes fit into our market? Distributors have several lines they sell, have local agents across a very big country, and show at the regional shoe shows. Our F/W show season starts in January and runs to March. The S/S season starts in July and runs to August. 7
What are the negatives associated with Chinese production? What characteristics of Chinese production are NOT suited to CANADA? What characteristics of our market are WELL suited to Colombian products? What are the positives associated with Colombian production? 8
18% duty Even the biggest buyers are 2 or 3 levels away from the actual maker. 0% duty Benefits to Canadians: Additional margin opportunity Cost savings Lower Landed costs True one to one relationship. Benefits to Canadians Cost savings Long term relationship with the ACTUAL maker CHINA and others COLOMBIA 9
Absence of confidentiality and exclusiveness Large scale production requirements, high MOQs TRULY EXCLUSIVE Benefits to Canadians: Differentiation, margin opportunities for all parties Small to medium scale production, suited to our market size. Benefits to Canadians: Reduced inventory, investment, and RISK. CHINA and others COLOMBIA 10
LONG lead times Long Transit Times Ongoing problems of on-time product development SHORT lead times Benefits to Canadians Buy and sell closer to the season Financing cost savings Short Transit times Benefits to Canadaians Buy and sell closer to the season Financing cost savings Opposite season timing and local market sales means collections are ready EARLY and market tested!! China and others COLOMBIA 11
12 o The Latino consumer is fashion driven and plugged into the global fashion world. o You make your own collection to suit this demanding consumer. Expanding your consumer base will improve your collections and business. o Same day Reponses o Ship Through Pacific or Atlantic o A little over one week transit times. o So, we can be smaller, faster, more reactive and with NO DUTY. o You have PRO-EXPORT, and me.
Low minimums, direct connection, exclusive High minimums, multi layer Non exclusive Colombia Other (far east) 13 COST$40 Duty$0 Freight$0.40 Misc$0.40 Landed$40.80 Wholesale (33%)$61.20 Retail (58%)$145.00 Explosion3.6 Lead time30 -45 days Transit time9 days Additional Sales40-60% Cost$40 Duty$7.12 Freight$1.00 Misc$0.50 Landed$48.62 Wholesale$72.93 Retail$175.00 Explosion4.4 Lead time90-120 days Transit time30-45 days
ASK FOR ADVICEALWAYS ASK IF IN DOUBT 1. Respond daily 2. Respond even if it means asking for patience 3. COMMIT to EXPORTS 4. Total Quality Control 5. Modern Technology 6. Have all of your tool-kit 7. Pro-active market research 8. Pro-active product development. 9.Shorten your lead time. 10. RESPOND 14
Email, skype, English Business cards with international codes Line list, pictures, sizes, materials, colors Swatches Understand the INCOTERMS Understanding the forms website 15
16 Canada: French is an official language, bilingual packaging and labeling Customs tariff (NIL) Packaging and labeling Import documentation for Canada Measurement system: Canada = metric Sizes can be EU.
17 Pro forma invoice or order confirmation to generate letter of credit or deposit Local freight representative of the buyer. Commercial invoice Certificate of origin (Form A) Packing list Inspection certificates, if required Export permits, if required PRO-EXPORT CAN HELP !!!!
18 China and the International brands will continue to enter Colombia at an ever increasing pace. You have a well developed shoe industry, NOW, use it before it goes away like Canadas did. SPECILAIZE AND BUILD YOUR BRAND. You can buy any shoe at any price. You have some competitive advantages NOW and you should make the effort NOW. Use the opportunity to improve your business by selling to CANADA, and ELSEWHERE…….