EXPORT TO CANADA APPAREL WORKSHOP Trade and Private Sector Assistance (TPSA) Bandung-Solo- May 2017 In Partnership with: Workshop Delivered by: Project Executed by:
Agenda Day 1 Morning 8:00 - 8:30 am Registration 8:30 - 9:00 am Opening Remarks 9:00 - 9:30 am The Canadian Market 9:30 - 9:45 am Q & A 9:45 - 10:15 am Trend Following 10:15 - 10:30 am Q & A 10:30 - 11:00 am COFFEE BREAK 11:00 - 11:30 am Labeling Requirements 11:30 - 11:45 am Q & A 11:45 - 12:15 am Incoterms 12:15 - 12:30 am Q & A 12:30 - 2:00 pm LUNCH
Agenda Day 1 Afternoon 2:00 - 2:30 pm Export price list Preparation 2:30 – 2:45 pm Q & A 2:45 – 3:15 pm Digital presence 3:15 – 3:30 pm Q & A 3:30 - 4:00 pm COFFEE BREAK 4:00 – 4:30 pm Line Sheet 4:30 – 4:45 pm Q & A
Agenda Day 2 9:00 - 10:00 am Negotiation Skills 10:00 – 10:15 am Q & A 10:15 – 10:45 am Packaging 10:45 -11:00 am Q & A 11:00 - 11:30 am COFFEE BREAK 11:30 – 12:00 am Logistics 12:00 – 12:15 am Q & A 12:15 – 1:00 pm Gender and Environmental Considerations 1:00 – 2:30 pm LUNCH
9:00 – 9:30 am Canadian Apparel Market Overview
Contents • The Canadian Market • The Canadian Apparel Market • Apparel Market Trends
The Canadian Market
35.8 9.98 Canadian Million people Million Sq.Km Dollar
Canadian Cultural Diversity
Canada USA Market Integration
Canada USA Market Integration
Total Canadian Trade
Main Trading Blocks 2015
Top Country Suppliers Source: Canadian International Development Platform
Canadian Trade with Indonesia Source: Canadian International Development Platform
Canadian Imports from Indonesia by Product Source: Statistics Canada
The Canadian Apparel Market
Canadian Apparel Trade (imports & exports) Source: Canadian International Development Platform
Canadian Apparel-Top Suppliers (country supplier market share %) Source: Canadian International Development Platform
Canadian Apparel Market Sales by Market Segments Source: Trendex – Canadian Retail Apparel Market
Canadian Women Apparel Market Source: Trendex – Canadian Retail Apparel Market
Canadian Men Apparel Market Source: Trendex – Canadian Retail Apparel Market
Apparel Market Trends
Canadian Apparel MarketTrends Source: Trendex – Canadian Retail Apparel Market
Source: Trendex – Canadian Retail Apparel Market
Source: Trendex – Canadian Retail Apparel Market
Source: Trendex – Canadian Retail Apparel Market
9:45 – 10:15 amTrend Following
10:30 - 11:00 am COFFEE BREAK
11:00 – 11:30 am Labeling Requirements
11:45 – 12:15 am Incoterms
Terms of Apparel Export Business: FOB – Free on Board CFR – Cost and Freight C&F – Clearing and Forwarding CIF – Cost Insurance and Freight CM – Cost of Manufacturing CMT – Cost of Manufacturing and Trim FCL – Full Container Load. L/C – Letter of Credit DAT – Delivery and Terminal. DAP – Delivery and Port. FOA – Free on Air DDU – Delivery Duty Unpaid. POD – Port of Discharge. POD – Proof of Delivery. POL – Port of Landing. POL – Port of Loading. ETA – Estimate Time of Arrival. ETD – Estimate Time of Departure. GSP – Generalized System of Preferences. CO – Country of Origin GOH – Garments on Hanger. DDP – Delivery Duty Paid.
FOB – Free on Board (named port of shipment) The seller must load the goods on board the vessel nominated by the buyer. Cost and risk are divided when the goods are actually on board of the vessel. The seller must clear the goods for export. The term is applicable for maritime and inland waterway transport only but not for multimodal sea transport in containers. The buyer must instruct the seller the details of the vessel and the port where the goods are to be loaded, and there is no reference to, or provision for, the use of a carrier or forwarder. This term has been greatly misused over the last three decades ever since Incoterms 1980 explained that FCA should be used for container shipments. It means the seller pays for transportation of goods to the port of shipment, loading cost. The buyer pays cost of marine freight transportation, insurance, uploading and transportation cost from the arrival port to destination. The passing of risk occurs when the goods pass the ship’s rail at port of shipments. EXW – Ex Works (named place of delivery) The seller makes the goods available at his/her premises. The buyer is responsible for uploading. This term places the maximum obligation on the buyer and minimum obligations on the seller. The Ex Works term is often used when making an initial quotation for the sale of goods without any costs included. EXW means that a seller has the goods ready for collection at his premises (works, factory, warehouse, plant) on the date agreed upon. The buyer pays all transportation costs and also bears the risks for bringing the goods to their final destination. The seller does not load the goods on collecting vehicles and doesn’t clear them for export. If the seller does load the goods, he does so at buyer’s risk and cost. If parties wish seller to be responsible for the loading of the goods on departure and to bear the risk and all costs of such loading, this must be made clear by adding explicit wording to this effect in the contract of sale.. DDP – Delivered Duty Paid (named place of destination) Seller is responsible for delivering the goods to the named place in the country of the buyer, and pays all costs in bringing the goods to the destination including import duties and taxes. The seller is not responsible for unloading. This term is often used in place of the non- Incoterm “Free In Store (FIS)”. This term places the maximum obligations on the seller and minimum obligations on the buyer. It’s called “DDP”. CIF – Cost, Insurance and Freight (named port of destination) Exactly the same as CFR except that the seller must in addition procure and pay for the insurance. Maritime transport only.
12:30 – 2:00 pm LUNCH
2:00 - 2:30 pm Export price list Preparation
Everyone knows the traditional maxim for setting prices in the fashion industry: double the cost for the wholesale price, and multiply the wholesale price by 2.0 to 2.5 for the retail price. However, for new brands, this exercise can be frustrating because its difficult to get good cost estimates early in the process. That’s why for new brands we recommend working backwards. Instead of starting with target cost, start with target retail pric e. It’s easier, faster, and will help you make better decisions. Let’s say you wanted start a line of casual button - up shirts, similar to a $125 BOSS shirt from Nordstrom’s. To get the estimate d cost, we divide $125 by 2.5 ( retail mark-up ) for the estimated wholesale price of $50, and then divide $50 by 2 (wholesale mark-up ) to arrive at the estimated target cost of $25, inclusive of import duties and logistics costs.
MARKUP MULTIPLIER EXPORT TO CANADA REVISED Sales through a broker to retail Item Calc. $ Retail Price $50.00 Retailers markup 3.03 $33.50 = Price to retailer $16.50 Trader markup 1 $0.00 = Price to Trader $16.50 Minimum Producers markup 1.2 $2.75 = Maximum cost $13.75
What Influences a Rating out Retailer? of 10 Excellent profit margin 8.6 Exclusivity in my area 8.2 Previous sales success 8.1 Availability 8.1 Cost 8.0 Design 7.9 Supplier's reputation 7.9 Good suggested retail price point 7.8
2:30 – 3:00 pm Digital presence
3:30 - 4:00 pm COFFEE BREAK
4:00 – 4:30 pm Line Sheet
9:00 – 10:00 amNegotiations Skills
• Be punctual for meetings and appointments, as promptness is valued. • If you do give a gift when you arrive or when you are leaving, make it a modest one. A lavish gift, though accepted, would be frowned upon. • Don't be boastful, and don't overstate your product or service's capabilities. You could implicate your company in a legal situation. • Toolbox: • Business cards • Email address • Website • Videos • Testimonials • Price List • Respond to email same day.
10:15 – 10:45 am Packaging
Recommend
More recommend
