1 / 29

U.S. Sourcing Perspective Today April 27, 2011

U.S. Sourcing Perspective Today April 27, 2011. Big Issues Today. Outlook for the Global Economy Consumer Confidence Rising Costs Cotton. Outlook for U.S. Economy.

raiden
Download Presentation

U.S. Sourcing Perspective Today April 27, 2011

An Image/Link below is provided (as is) to download presentation Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author. Content is provided to you AS IS for your information and personal use only. Download presentation by click this link. While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server. During download, if you can't get a presentation, the file might be deleted by the publisher.

E N D

Presentation Transcript

  1. U.S. Sourcing Perspective Today April 27, 2011

  2. Big Issues Today • Outlook for the Global Economy • Consumer Confidence • Rising Costs • Cotton

  3. Outlook for U.S. Economy More recently, however, we have seen increased evidence that a self-sustaining recovery in consumer and business spending may be taking hold. … a more rapid pace of economic recovery in 2011 than we saw last year. Ben Bernanke, Chairman of the Board of Governors of the Federal Reserve System, February 3, 2011

  4. Outlook for U.S. Textile Industry Report from the NCTO Annual Meeting U.S. textile executives, operating in a recovery and expansion mode for the first time in a while, are looking for ways to consolidate their gains without losing profit margin to historically high cotton prices and market share to pending trade agreements. WWD April 19, 2011

  5. Outlook for U.S. Textile Industry Report from the NCTO Annual Meeting Last year, would anybody have guessed that cotton prices would have tripled, polyester would have been up by more than 30 percent and importers would begin to seriously double China and turn back to the Western Hemisphere and that we would actually run into capacity issues for some of our products? David Hastings, President CEO of Mount Vernon Mills, outgoing NCTO Chairman, April 19, 2011

  6. U.S. Retail Outlook Strong customer service, innovative marketing and original, differentiated product are the keys to success, and department stores, a sector that recently has shown signs of increased differentiation, understand that. Citi Broadlines Analyst, Deb Weinswig WWD April 7, 2011

  7. U.S. Retail Outlook Clothing is something that is more price elastic, so that if your spending power is squeezed by food and energy prices, and on top of that you see clothing prices go up, then you…wait on buying clothing and hope for more reasonable prices in the future. WWD April 17, 2011

  8. Consumer Confidence Seventy-four percent of Americans believe higher prices could curb their spending in the months ahead, and 53 percent see spring merchandise prices as inflated, according to a Deloitte survey released Wednesday. It’s currently up only a few percentage points, but inflation on most apparel is expected to be up 10 to 15 percent for fall due to higher raw material and labor costs. Higher energy costs, higher medical costs, unemployment levels and job concerns — and political unrest in Africa, the Middle East and Asia — are further driving down the will to spend. WWD April 14, 2011

  9. Consumer Confidence

  10. Rising Costs According to a AlixPartners study, apparel inflation is averaging 17.4 percent for most retailers, with some seeing increases as high as 30 percent. WWD April 18, 2011

  11. Rising Costs

  12. Obama Administration Trade Agenda • National Export Initiative • Free Trade Agreements • Colombia • Panama • Korea • Trans-Pacific Partnership Negotiations

  13. U.S. Apparel Imports More than $70 Billion From More Than 100 Countries

  14. Top Apparel Suppliers Year Ending January 31, 2011

  15. Top Apparel Suppliers Year Ending January 31, 2011

  16. Major Apparel Suppliers China Remains Top Supplier But Opportunities Remain for Western Hemisphere Producers

  17. Peru U.S. Imports of $ 679 million Ranks Twenty-fourth for Apparel

  18. U.S. Imports from Peru 1992-2010

  19. U.S. 2010 Peru Imports, by benefit

  20. Top U.S. Imports from Peru Year Ending February 28, 2011

  21. HTS No. 6105.10.00.10 Men’s Knit Cotton Shirts Year Ending February 28, 2011

  22. HTS No. 6110.20.20.79 Women’s or Girls’ Knit Other Cotton Pullovers Year Ending February 28, 2011

  23. HTS No. 6109.10.00.12 Men’s Knit Cotton Other T-Shirts, except Underwear Year Ending February 28, 2011

  24. U.S. Exports to Peru 2007-2010

  25. Global Supply Chain Product Development Global Logistics Global Logistics Production Production QA & Tech QA & Tech Compliance

  26. Sourcing Outlook Garment Costs Material is about 40 percent of the overall costs, trims add one-third to the price of the garment, and then labor and finishing and transportation become more impactful as they go up. David Bassuk, global retail practice, AlixPartners

  27. Sourcing Outlook • Multi country sourcing for maximum flexibility • Strong supplier partnerships • Social compliance • Quality product at a value price

  28. Thank you Contact Info: Julia K. Hughes +1 202 419 0444 jhughes@usaita.com

More Related