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Going Global: Meeting the Demands of an International Industry

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US consumers bought $370 billion worth of clothes and shoes in 2007. Americans purchased 20 billion garments and 2.4 billion pairs of shoes in 2007. ... – PowerPoint PPT presentation

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Title: Going Global: Meeting the Demands of an International Industry


1
Going GlobalMeeting the Demands of an
International Industry
  • March 21, 2009
  • Nate Herman
  • American Apparel Footwear Association

2
What is AAFA?
3
About AAFA
  • The American Apparel Footwear Association is
    the national trade association representing
    apparel, footwear and other sewn products
    companies, and their suppliers which compete in
    the global market.
  • We accomplish our mission through
  • Education
  • Advocacy

4
Advocacy
  • We all use lobbyists

5
Check Your Tags
  • Consumers care most about
  • Brand
  • Price
  • Style
  • Geography is typically an afterthought, if a
    thought at all

6
The Global Marketplace
  • The apparel and footwear industry is truly global
  • 95 of the worlds consumers live outside the
    United States
  • We buy everywhere and sell everywhere
  • The global marketplace requires that we be
    competitive to survive

7
Two Years Ago
  • US consumers bought 370 billion worth of clothes
    and shoes in 2007.
  • Americans purchased 20 billion garments and 2.4
    billion pairs of shoes in 2007.
  • That means that every man, woman, and child in
    the United States, on average, spent over 1,200
    each on 67 new garments and 8 pairs of shoes in
    2007.

8
Today
  • Comparable Store Sales Jan. 2009 VS. Jan. 2008
  • Macys Down 4.5 percent
  • Target Down 3.3 percent
  • American Eagle Outfitters Down 22.0 percent
  • Gap Down 18.0 percent
  • Old Navy Down 34.0 percent
  • Abercrombie Fitch Down 20.0 percent
  • DSW Down 7.2 percent
  • Saks Fifth Avenue Down 23.7 percent

9
Remaining Competitive
  • Responding to competitive pressure, the apparel
    and footwear industry moved production from the
    U.S. to the developing world
  • The apparel and footwear industry has been on the
    move since the 1970s

10
US Apparel Imports
  • 50 of U.S. market in 1991
  • 97 of U.S. market today

11
US Footwear Imports
  • 53 of U.S. market in 1978
  • 99 of U.S. market today

12
Fashion Sense is Business Sense
  • Manufacturers became brands
  • Shifted focus to design, quality, marketing and
    managing the supply chain
  • Brands became retailers
  • Now able to control the supply chain and brand
    image

13
Innovation in the Supply Chain
  • Product Lifecycle Management
  • New Technology
  • Radio Frequency Identification (RFID)
  • Better Design Quality
  • Improved Fabrics
  • Better Construction
  • Perfect Fit
  • Getting the right product to the right market
  • at the right time.

14
Overall Retail Prices Have Risen
  • 30 percent in the last 11 years

15
Apparel Footwear Prices Have Fallen
16
What Does That Mean?
  • Americans spend less to buy more clothes shoes

17
Educating the Future
  • Fashion designers cant do it alone
  • The apparel and footwear industry needs support
    along the entire supply chain
  • Sourcing Skills
  • Product Safety Knowledge
  • Logistics Experience
  • Understanding Government
  • Social Environmental Compliance
  • Overseas Marketing Understanding
  • Technological Prowess
  • Understanding Financing

18
The Future of Education
  • Dramatic shift to international focus
  • Incorporation of business strategies
  • New language skill requirements
  • More experiential learning opportunities
  • Technology training mandates

19
Lifelong Learning
  • When we were in school
  • Things change
  • New Technological Developments
  • New Social Environmental Issues
  • New Government Regulations
  • New Materials and Resources
  • New Buyers/New Suppliers
  • AAFA helps keep members informed about new trends
    and issues

20
Member Education
  • International Product Safety
    Restricted Substances
  • International Sourcing Logistics
  • Sustainability Turning Responsibilities into
    Opportunity

21
Conclusion
  • The U.S. apparel and footwear industry is
    extremely competitive because
  • Effective supply chain management
  • Openness to change to help the bottom line
  • But we must work hard and play smart to remain
    competitive

22
Conclusion
  • Clothes make the man.
  • Naked people have little or no influence in
    society. Mark Twain
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