TEXTILE INTERNATIONAL ENTERPRISES

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Marketing in the United States December 5 , 2008
TEXTILE INTERNATIONAL ENTERPRISES Rick Schneider
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THE UNITED STATES MARKET Overview Your
Customer Techno-buzz Marketing Guide
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Overview

• The Market
• Import export trends
• Fabric vs. Packaged garments
• Key notes

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Apparel Sales in the USADollar sales in Billions
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2007 US Textile ImportsTextiles - Apparel
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Four key notes in 2007

• China volume up 15 value up 19
• Vietnam volume up 31 value up 32
• Taiwan textiles exports stable apparel down
• Bangladesh

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Your Customers

• Brands
• Private label manufacturers
• Discounters
• Big Box
• Catalogues and Media
• Traditional Retailers
• Self Branded retailers
• Other markets

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Brands

• Nike
• Mountain Hardwear
• Ralph Lauren Polo
• Calvin Klein
• Haggar
• Liz Claiborne
• Alfred Dunner
• Wrangler - VF Corporation

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Private Label Manufacturers

• Mast
• Kellwood
• Lanier Group
• Swiss Garment
• Li Fung
• Jeno Newman
• Louis Raphael

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Discounters

• Walmart
• K-mart
• Costco
• Target

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Big Box

• Dicks Sporting Goods
• Sports Authority
• Great Outdoors Provision
• Cabelas
• Bass Pro shop

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Catalogues and Media

• Lands End
• LL Bean
• Eddie Bauer
• Paul Fredericks
• QVC Television

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Traditional Retailers

• Federated Macys
• Belks
• Bloomingdales
• Nordstroms
• JC Penney

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Self Branded Retailers

• Banana Republic
• Zara (Spain)
• Chicos
• Eddie Bauer
• Victoria Secret
• Talbots
• REI
• Benetton (Italy)
• JA Bank
• nk
• Tristan America
• J Crew
• J Jill
• Liz Claiborne Stores
• Mango

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A U.S. Competitors Matrix
Style
Price
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Other Markets

• Uniforms
• Industrial and medical apparel
• Technical apparel
• Home and Hospitality textiles
• Automotive textiles

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Techno-buzz

• A Nanotex story
• Sustainability
• What's out there - opportunities

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A Nanotex story

• A brief on what Nanotex is doing to successfully
  promote a group of chemistries and a Brand

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A nanometer is one-billionth of a meter, which is
the width of about 3 5 atoms.
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What is Nanotechnology?
Size
Technology development at the nano-scale
(1-100nm).
The ability to control or manipulate the ordered
assembly of components at the nanometer scale.
Ordered Assembly
Novel Properties
The size and smart assembly of the nanoscale
architecture creates novel properties.
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Nano-Tex Technology
One Method Cross-linking

• Versatile, compatible with many substrates
• Provides repellency

However, this method is not durably bound to the
fiber. And the excess chemistry can negatively
affect hand quality.
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Nano-Tex Technology
The Nano-Tex Method Smart Assembly

• Fluoropolymer is designed to attach itself to
  the fiber
• Less chemistry is used, so natural hand is
  unaffected
• Performance is permanent

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Consumers are looking for enhancements in
everyday apparelenhancements that help them
maintain their personal style.
Understanding Consumer Motivations for Enhanced
Clothing
Consumers are looking for solutions that create
a seamless wardrobeone that can help them
transition from work to play to evening.
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Penetration of Enhanced Apparel
Over half (54) of respondents are very/somewhat
likely to purchase everyday clothing with
performance characteristics in the next 6 months
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Penetration of Enhanced Apparel
Wrinkle Resistance 70 Spill/Stain Resistance
27 Fade Control 20 Perspiration
Absorption 8 Odor Control 6

• Penetration of performance-enhanced clothing has
  been led by wrinkle-resistance
• Indicative of growth potential for new
  enhancements which offer appearance or
  convenience benefits

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Consumers seek ways to eliminate the negatives in
clothing care and wear

• Longer lasting (stain-free, fade resistant)
• Easy to care for (spill resistant)
• Enhances their appearance (wrinkle-free, static
  resistant)
• Enhances their comfort (moisture management,
  stretch)
• Enhances their confidence (odor resistance)
• As long as they dont have to compromise on fit,
  style, or comfort

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How Big is theEnhanced Apparel Category?
Source NPD
-ex ? Nanotechnology ? Products ? Testing ?
Market ? Education
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Repels Releases Stains
SPILL RESISTANCE 1st Line of Defense Allows
Spills to Wipe Off Easily STAIN REMOVAL 2nd Line
of Defense Ground In Stains Wash Out Easily
Giving Longer Life to Your Garments COMFORT Retai
ns Natural Hand Feel for Ultimate
Comfort DURABILITY Meets Exceeds 30 Home
Laundry Performance
Nano-Tex ? Nanotechnology ? Products ? Testing ?
Market ? Education
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And Resist Spills can be PFOA-Free

• Nano-Tex offers the highest performing PFOA-free
  product available
• Undetectable PFOA utilizing the most sensitive
  and selective detection capability available
• Same specification as our current Resists Spills
  technology
• No impact on fabrics natural characteristics
  (look, hand, breathability, drape)
• Independent 3rd party testing validation
• Brand reputation
• WW service and support

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Coolest Comfort
COOLNESS Pulls Moisture Away From Skin to
Evaporate Fast COMFORT Retains Natural Hand Feel
for Ultimate Comfort BREATHABILITY Smart
Chemistry Allows Fabric to Breathe
Naturally DURABILITY Meets Exceeds 30 Home
Laundry Performance
Nano-Tex ? Nanotechnology ? Products ? Testing ?
Market ? Education
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Resists Static
STATIC RESISTANCE Dissipates Static Charges to
Eliminate Cling DURABILITY Meets Exceeds 30
Home Laundry Performance COMFORT Retains Natural
Hand Feel for Ultimate Comfort BREATHABILITY Smar
t Chemistry Allows Fabric to Breathe Naturally
Nan ex ? Nanotechnology ? Products ? Testing
? Market ? Education
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Peter Drucker..

• Every single pressing social and global issue is
  a business opportunity

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Sustainability and Business

• Sustainability must be
• Good for people
• Good for the environment
• And good for profits
• If its not, it is not sustainable..
• Dr. Claus Pederson Director of Sustainability ,
  Novozymes

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Janet Bealer Rodie, Textile World
Going Green Beyond Marketing Hype Marketers of
environmentally responsible products must be able
to substantiate their claims in a way that
consumers can understand.
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The Consumers Perspective on Sustainability

• Core customer a believer who will look to buy
  GREEN to do the right thing , the classic early
  adopter
• Mid-level - not green unless a benefit is proven
  or demonstrated, a skeptical purchaser
• Periphery price and value is the driver , this
  is the largest consumer block
• A study by The Hartman Group

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Jürg Rupp, Executive EditorTextile World

• Man-Made Fibers New Attitude
• Increased energy and raw material costs,
  heightened environmental awareness are
  challenging the man-made fiber industry to
  explore new opportunities.
• The overarching subject ,sustainability, with the
  focus on cradle-to-grave products.
• Sustainability is one of the key issues in the
  production of fibers and fabrics. The most
  important parameters for the future are    
  fiber production     yarn and fabric
  production     dyeing, printing and finishing
      conversion to end product    
  transportation     product use and maintenance
  and     recycling, incineration or disposal
• Ecology And Economy In Textile Finishing
• Water and energy usage reductions by the
  textile dyeing and finishing sector can help
  reduce global carbon dioxide emissions.

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Sustainability

• The biggest conversation at Friedrichshafen
• Presented at Texworld and Premier Vision
• Walmart is into it
• Nike ,Cotton Inc ,BASF, JCP ..major
  corporations have executives dedicated to the
  concept and implementation. Do you ?

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Technologies and Opportunities

• A fast growing business is in Interactive
  apparel NPD predicts it will be a Billion dollar
  business by 2010

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Opportunities

• Insect repellant fabrics not new but in need of
  vast development and improvement
• Narkonteks of Turkey has brought to market an
  Oekotex and World Health Organization approved
  productits more then just for the outdoorsman

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Opportunities

• Dupont Tychem BR vapor , liquid , HAZMAT
  protection
• Certified by US NFPA for chemical , bio and
  radiation protection

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Opportunities

• Recycled product Billabong a large player in
  the Surfwear market won the Environmental Product
  of the year for a recycled short collection
• Billabong makes these environmentally-friendly
  surf shorts from recycled textiles and plastic
  bottles it's ....

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Opportunities

• Water resistance and wicking breathability
• There is demand for the product in a single layer
  form , it is theoretically out there in woven's
  however , none of the technologies withstand
  long term performance and testing
• Active sports , uniform, career apparel and
  casualwear

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Opportunities

• Micro capsules to deliver medical treatment
• Hohenstiener is developing technology to assist
  in the transfer of drugs from apparel for skin
  treatment

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Opportunities

• UV protection
• Wicking breathability
• Odor control
• Anti bacterial
• Freshness BASF Purista
• Repellency
• combinations

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Marketing Guide

• Big picture
• The Organization
• Marketing
• Collection
• Trade shows
• Details

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The Big Picture

• Thinking globallyacting locally.
• A saying used by many , but generally attributed
  to David Brower founder of Friends of the Earth
• This is a road worn concept typically used by
  Global companies trying to Export , it is real
  for anyone who wants to grow internationally

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The Organization to sell the USA

• Management commitment
• A dedicated support person - details
• An Export sales manager (visits 4-6 times year)
• An agent(s) agency sales person in the USA
• Regional coverage
• A focused approach
• Design support
• Technical support

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The Marketing

• Know your customer
• Know your competition
• What differentiates you
• Branding and advertising
• Public relations

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The Collection

• Focused on clear themes
• Seasonally correct
• Marketing support on each theme
• Organized in terms understood by the customer
• Backed by samples
• A Fashion or technical perspective , the why

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Trade Shows

• There are no great fabric or textile trade shows
  in the US however, other trade shows can be
  used.
• MAGIC
• Outdoor retailer
• ISPO and Friedrichshafen
• Texworld / Premier vision
• Tech-textil
• PGA Show

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Sourcing Factors

• Flexibility
• Network to garment making - Internal or external
  make it smooth
• Sourcing factors
• Time/Service/Cost/Quality/Risk/Ethics

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Details

• Simplified sample and hanger process
• A clear pricing strategy especially important
  with multiple finishes
• A commitment to seasonal pricing
• Marketing and organizational information ,
  ideally tied to a Professional web site
• Flexibility in payment terms

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Thank you

• QA