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OSEI-DURO CLOTHING Ghana, West Africa

OSEI-DURO CLOTHING Ghana, West Africa. With Christopher Rampaul, Robin Poirier, and Maryanne Mathias. THE COMPANY. About the company Mission and Vision. PRODUCTS AND SERVICES. MARKET. Target Market W omen 20-39 Fashion forward Demand I ncreasing demand for ethically made clothing

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OSEI-DURO CLOTHING Ghana, West Africa

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  1. OSEI-DURO CLOTHINGGhana, West Africa With Christopher Rampaul, Robin Poirier, and Maryanne Mathias

  2. THE COMPANY • About the company • Mission and Vision

  3. PRODUCTS AND SERVICES

  4. MARKET • Target Market • Women 20-39 • Fashion forward • Demand • Increasing demand for ethically made clothing • Competition • Large fashion retailers: high and low end • Other like minded designers • Competitive Sustainable Advantage • Diverisified business model

  5. ADVANTAGES OF PRODUCING IN GHANA 2009 GDP was 31.3 B USD Stable environment Factor abundance of prints Inexpensive labour Sustainable clothing that offers compelling story

  6. TARIFFS • Zero tariffs under AGOA “The African Growth and Opportunity Act (AGOA) was signed into law on May 18, 2000 as Title 1 of The Trade and Development Act of 2000. The Act offers tangible incentives for African countries to continue their efforts to open their economies and build free markets” - www.agoa.gov

  7. EXCHANGE RATES • USD to the Ghanian Cedi (GHS) has been quite stable for the last five years. • 1 USD = 1.43 GHS (as of February 1, 2010) • History of volatility and devaluation • Future outlook is for stability or slight devaluation

  8. POLICY CONSTRAINTS • AGOA IV special provision set to expire in 2012 • Quotas imposed (3.5% of all American apparel), 60% of which is currently being utilized

  9. LIMITED DIVERSIFICATION • Restrictions on where fabric is sourced from • Ghana maintains a 16M trade deficit of which 10M is with China. Relies heavily on imports from China • The US makes up 80.9% of the Ghana apparel export market

  10. TRANSPORTATION • Transportation within Ghana is inexpensive and timely • Shipments currently done by air. This is necessary given size and time constraints • Ghana Post and British Airways Cargo – 9 days • Cost - $400/CDN for 150kg (approx. 150 units) • Cost of transportation is relatively high, price elasticity of -2.5

  11. PROBABILITY OF TRADE Where: Factors include: • Quality of governance, Trade regime, Quality of infrastructure, a dummy variable for African nations, a dummy variable for English-speaking AGOA beneficiaries, Trade relationship with EU

  12. INFRASTRUCTURE AND STABILITY • Critical trade infrastructure is weak or non-existent (electricity, telecommunications, procedures and policy) • Corruption at the borders/ports • Access to lending and credit is high • Oil production beginning in 2010.

  13. Q&A

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