Get caught up on the latest industry news 4

Ash City's Chris Clark outlines essentials for

tapping into this lucrative niche market 8

Imprint Canada's showcases the newest

wearable fashions, advertising specialty items,

supplies and equipment 22

We highlight Statistics Canada's Consumer Price

Index data and large retailer sales fi gures 46

WHAT'S INSIDE

Direct to Garment Printing vs. Submilation: An In-Depth ComparisonBy Jimmy Lamb, Sawgrass Technologies

Domestic Manufacturing: Strengths, Weaknesses & SustainabilityPart fi ve in a six-part seriesBy Adriano Aldini, Imprint CanadaWhich is better for digital apparel printing, direct-to-garment

(DTG) or sublimation? It all depends on what your needs are as both systems are capable of producing vibrant graphics quickly, easily and inexpensively, yet there are signifi cant diff erences between the two.

Perhaps the most signifi cant is that DTG is for cotton fabrics and whereas sublimation only works with poly-ester. (Both will work with blends, though the images may not have the same level of colour vibrancy.)

In addition to fabric type, there are some diff erences in image colour as well. Universally speaking, due to the size and concentration of colouration particles, dyes (sublimation) are more vibrant than pigments (DTG), thus sublimation will deliver a more vibrant image. Th is gives sublimation the abil-ity to produce high defi nition (HD) designs at a higher level of quality than DTG. Technically speaking, pigments (DTG) do have better resistance to intense and extended exposure to sunlight (known as UV fastness) than dyes (sublimation), however that generally does not come into play with apparel.

In fact, when it comes apparel, a far greater concern is image breakdown during laundering. Sublimation will not fade when washed, whereas DTG inks will.

But there is a lot more to consider than simply the type of fabric and colour clarity, as factors such as production costs, printing speeds, equipment costs and ROI need to be carefully considered. To get a better understanding of the diff erences, let’s take an in-depth look at how the systems work and how they compare.

In our fi ft h and penultimate instalment of our six part article series examining

the topic of direct overseas sourcing,

our focus shift s homeland as we look at

manufacturing in Canada.

For this article, we spoke with

domestic manufacturers - on the con-

dition of anonymity - to gauge, fi rst-

hand, their thoughts about strengths,

weaknesses and misconceptions, as well

sustainability in the domestic manufac-

turing landscape.

Advantages of domestic productionIn the March/April 2013 edition of

Imprint Canada, we highlighted the benefi ts sourcing locally; the manufacturers we spoke

to for this instalment gave us their take on the biggest advantages of domestic production.

A Tristan Communications Ltd. Publication Volume 20, Issue 5

IMPRINT CANADATHE MARKETING AND INFORMATION SOURCE FOR IMPRINTABLE PRODUCTS

www.fersten.com

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The Picasso of Deals?Back in the late eighties, I decided to read a hyped

bestseller entitled Trump: Th e Art Of Th e Deal, by bil-

lionaire Donald Trump. I recall being impressed by

his confi dence and chutzpa in his endeavors of build-

ing the Trump Organization from his apartment and

background of working with his father in developing

middle-class rental housing. Th e book includes a typ-

ical week in Trump's life as he made deals which would

change Manhattan's skyline.

Th e manner in which Donald Trump structured and

achieved the deals he did has been a been a source

of inspiration for me for the past 20 years. Th e deals

themselves could not have been made if there was

nothing other than complete respect and honesty on

both Trump's side and his adversaries.

Th e one key understanding of Trump's approach to his

successes was how he actually liked handling complex-

ity. What his competitors may have seen as obstacles to

making a deal were viewed to be great opportunities

for him. Th e more complex the deal, he noted, the

fewer competitors would be interested.

While his persona has developed into being one of

total and absolute confi dence, the book portrayed

someone who - in the day - always went into every

deal looking at what could possibly go wrong. "Protect

the downside and the upside would take care of itself."

Th e books message was clear when it came to describ-

ing the approach to any deal - every deal must have

a fallback position. Th e deal maker must sacrifi ce

personal preferences to ensure a profi table outcome.

I didn't realize it at the

time of reading but the

book was an "ABC" of

the managerial skills

required to guide a

person while making

any deal. Th inking big,

maximizing options

and using leverage

are all exemplifi ed in

Trump's chronicling

of some of his biggest

deals.

And yet the most

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ings was the most

genuine of all: Never

back out of a deal once

you have given your

word.

SEPTEMBER/OCTOBER 2013Follow us: twitter.com/imprint_canada

TM

GEO-KNIGHT

DK-20A

1 SOURCING DIRECT: DOMESTIC PRODUCTION

1 DIRECT TO GARMENT PRINTING VS. SUBLIMATION CONTINUED PG 10 & 14

4 INDUSTRY NEWS CONTINUED PG 6

8 GEARING UP FOR TAILGATING

18 COMPANY PROFILE: BIG KAHUNA SPORT CO.46 BY THE NUMBERS

22 WEARABLES SHOWCASE

38 AD SPECIALTY SHOWCASE

42 SUPPLIES & EQUIPMENT SHOWCASE

Imprint Canada is published six times per year by Tristan

Communications Ltd. Th e contents of this publication may

not be reproduced either in part or in whole without the

consent of the copyright owner. Th e views expressed in this

publication are not necessarily those of the publisher. Request

for missing issues are not accepted aft er three months from the

date of publication.

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IMPRINT CANADA

PUBLISHER Tony Muccilli : tony@imprintcanada.com

PRODUCTION MANAGEMENTAdriano Aldini : news@imprintcanada.com

MARKETING COORDINATORSteve Silva: feedback@imprintcanada.com

OFFICE ADMINISTRATORMaria Natale: shows@imprintcanada.com

GENERAL INQUIRIESfeedback@imprintcanada.com, (905)856-2600

ADVERTISING SALESTony Muccilli (Toronto)

Tel: (905) 856-2600 Fax: (905) 856-2667

September/October 2013 - Volume 20, Number 5

IMPRINT CANADA

| September/October 20134 IMPRINT CANADA

Industry News

Industry News, Continued on Page 6

Ash City announces the launch of its new 2014 collection Appoints new sales representative for Southern Alberta and South Eastern BC territory

Ash City is pleased to announce the release of its 2014 collection. With over 100 new styles, the new collection encompasses the latest design elements with innovative performance and technology.

"� e new 2014 collection by Ash City e� ectively covers multiple price points to meet speci� c industry markets, while accommodating di� erent industry needs," said Elson Yeung, Product Line Manager, Ash City. "� e executive and on-trend looks are achieved by our retail-inspired North End® Sport and North End Sport® Blue lines, while North End® and Extreme® focus on elevating the day-to-day look with functional elements and practicality. � e new catalog is dedicated in featuring solutions for all the industry uses and the layering concept, from the base to outerwear, to provide customers with a variety of options that are both design-driven and comfortable."

� e 2014 Ash City styles are also accompanied by the latest developments in technology: UTK warm.logik™ with Heat Re� ect Technology, Quick Dry performance and Snag Protection Plus+. � rough research using unique lab testing methods, UTK warm.logik™ with Heat Re� ect Technology provides a higher level of thermal comfort and warmth without the bulk, for increased ease of movement. Quick Dry performance takes moisture wicking to the next level, by pulling moisture at an accelerated rate away from the body up to the surface, making it easier and faster to dry, while Snag Protection Plus + o� ers greater protection against snags, by utilizing heavier fabrics that are sturdier

and provide a more structured drape.To download the latest Ash City catalog, please visit:

http://www.ashcity.com.

New Dedicated Sales RepresentativeAsh City is proud to announce the appointment of Brent

Neal as Dedicated Sales Representative for the Southern Alberta and South Eastern BC territory. Brent's role will be responsible for building solid relationships with distribu-tors, supporting and growing sales, and acting as the point of contact for customers in these areas.

Brent comes to Ash City with solid apparel industry experience in Sales, where he most recently worked as a Sales Executive at Fashion Biz in Alberta. He has also excelled in other sales roles at both Accolade Reaction Promotion Group and Grand & Toy.

"Brent de� nitely compliments our Dedicated Sales Team at Ash City, and we are delighted to have him on board," said Craig Ryan, VP of Canadian Sales, Ash City. "His unique experience within the industry, from both a sales and distributor perspective, adds great value to our com-pany and customers."

"I am absolutely thrilled to take the next step in my career with an industry leader," said Brent Neal. "Ash City truly understands the meaning of delivering exceptional customer service, and by partnering with their key custom-ers, I am looking forward to generating more growth and success for an already outstanding company."

Canada Sportswear announces the launch of their CSW Rewards program, commencing September 1st, 2013. 

� is program was designed to celebrate the start of the company's 60th anniversary having been a proud supplier of quality wearables since 1954.

� is program is  to thank its valued customers for their support over the years. Visit www.canadasportswear.com for regular updates and other exciting initiatives.

Please ask your sales rep. or call Canada Sportswear's customer service department for further details.

Canada Sportswear launches CSW Rewards program

Gildan Activewear announces record results for a � scal quarter

Gildan Activewear Inc. (GIL; TSX and NYSE) announced its results for its third � scal quarter ended June 30, 2013. Earnings were a record for a � scal quarter, and were at the top end of the guidance range which Gildan Activewear had most recently updated on May 2, 2013. � e Company also further narrowed its earnings guidance for the full � scal year, and recon� rmed its full year guidance for net sales revenues.

Third Quarter ResultsNet earnings were $115.8 million (all � gures U.S.) or

$0.94 per share on a diluted basis for the quarter , compared with net earnings of $78.6 million or $0.64 per share for the third quarter last year.

Net sales in the third quarter amounted to $614.3 mil-lion, up 2.3 per cent from $600.2 million in the third quar-ter of � scal 2012.

Net sales for the Printwear segment amounted to $433.0 million, down 3.6 per cent from the same period last year. In spite of capacity constraints, unit sales volumes increased by 4.1 per cent.

Net sales for Branded Apparel were $181.4 million, up 20.1 per cent from the third quarter of last year. � e growth in sales for the Branded Apparel segment was due to the impact of new Gildan® branded underwear and activewear programs for retail customers, increased sales to global athletic and lifestyle brands, and slightly higher sock sales compared to the third quarter of last year.

Year-To-Date Sales and EarningsNet sales revenues for the � rst nine months of � scal

Redwood Classics Apparel Welcomes Simpson Agencies | BrandShakers as New Sales Representative for South Western Ontario

Redwood Classics Apparel is happy to welcome Simpson Agencies | BrandShakers to its growing team of sales representatives throughout Ontario.

� anks to the agreement, all of the province’s geograph-ical areas will now have Redwood Classics' representation.

A multi-line agency in the Promotional and Incentive marketplace, Simpson Agencies | BrandShakers has repre-sented premium and established brands in the business.

For more than a decade, this savvy team has worked with suppliers like Adidas group, Gemline, Faro,

Victorinox Swiss Army, Sundog Eyewear and Chocolate Chocolate.

"We are so excited about this partnership,” says Kathy Cheng, Director of Sales and Marketing at Redwood Classics. “Simpson Agencies | BrandShakers is the best of the best; we’re con� dent in their ability to grow our brand and develop lasting relationships in this region.”

� e showroom, located at 5205 Harvester Road, Unit 3B, Burlington ON L7L 6B5, will include samples and a lending library.

2013 amounted to $1,558.1million, up 12.4 per cent from � scal 2012. � e increase in net sales versus � scal 2012 was due to the acquisition of Anvil, organic growth in Printwear unit sales volumes, and growth in sales of Gildan® branded activewear and underwear to retail customers. � ese factors were partially o� set by lower net selling prices for Printwear and lower sales of socks.

Net earnings in the � rst nine months of � scal 2013 were $223.4 million or U.S. $1.82 per share on a diluted basis, compared to $59.4 million or U.S. $0.49 per share in the � rst nine months of � scal 2012.

Kobe Sportswear introduces new SUB360 sublimation program

For 2014, Kobe Sportswear is introducing a new sublimation pro-gram that delivers quality sublimation apparel.

Premium stock designs with a variety of colour variations are avail-able through this program. Simply choose a design, provide logos/names/numbers in vector format and the streamlined order processing will immediately begin production aµ er con� rmation.   

For more details, please contact your local Kobe Sportswear repre-sentative or visit www.kobesportswear.com

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IMPRINT CANADA

Industry News

Features:

UV LED unit

Up to 1,440×1,200 dpi

3 different ink sets for hardor flexible substrates

Max. print size: Width: 11.8”Length: 16.5”

Media Thickness: 5.9”

Automatic Table Height Adjustment

Automatic ink circulation systemprevents pigment sedimentation

Simultaneous white ink under or overprintthat does not slow down the printing speed

Print on: Plastics Glass Metals Wood

Rubber Leather

Biz Collection appoints new sales executive for western Canadian territoryBiz Collection is very pleased to announce the appointment

of Kyle Doherty as its Sales Executive for the Alberta territory

that also includes North Eastern B.C. and the East Kootenays.

Doherty brings to the growing brand, eight years of out-

side and inside sales responsibilities in a similar industry

and enjoyed a previous successful sales career in retail

electronics. His outgoing personality coupled with his “go

the extra mile” business philosophy has Biz Collection very

excited to have Kyle servicing its valued distributors from

his base in Edmonton.

Doherty may be reached at tel: 587-938-3249 (FBIZ)

and by email at kyle@fashionbiz.ca.

Westhall Apparel announces new location, new personnel and a renewed commitment

Westhall Apparel has recently moved to a new loca-

tion to better support their clients with a new "One-Source, One-Price" solution. Everything from design to execution

and warehousing is under one roof for improved effi cien-

cies and streamlined turnaround.

Th e new facility of approximately 20,000 square feet

houses the latest decorating techniques to meet the growing

demand for unique styles. Th e facility boasts decorating

capacity for laser cutting to multi-panel screen printing

to high-speed embroidery and more.

Apart from the strong in-house sales and design team,

Westhall has recently appointed some key people in

Customer Service.

Th eir new Customer Service Manager, Edward Del

Rosario, comes with years of experience having previ-

ously worked for Russell Athletic, T. Litzen Sports and

more recently at R.J. McCarthy (R J M Athletics). Del

Rosario's deep knowledge of athletic wear and decorated

apparel is a defi nite asset to the company as he will be

working closely with the National Sales Manager, Dennis

Goodwin and President Gabe Palumbo in implementing

new products and programs to help Westhall continue

their growth trajectory.

Also joining Westhall's customer service team is Patricia

DeRooy, a seasoned sales professional with over 15 years

of industry experience. DeRooy gained her experience and

knowledge at Umbro Canada where she was responsible

for National and Key Accounts.

"Patricia brings a dynamic personality, work ethic and

commitment to excellence to our customer service depart-

ment and will be a valuable asset to the ever-growing

team at Westhall," said Goodwin.

American Apparel, Inc. (NYSE MKT: APP)

announced results for its second quarter. Financial

highlights include:

Dov Charney, Chairman and CEO of American Apparel,

Inc. stated: "We are pleased with the continued strong sales

performance in all three business channels, particularly in

light of the sales we believe we lost as a result of the supply

chain issues we faced this quarter. While the transition to

a new distribution center and other supply chain initia-

tives negatively impacted the quarter, we are committed

to making the necessary investments to reduce costs and

improve our operating effi ciency over the longer-term."

Net sales increased 9 per cent versus the same period

last year to $162.2 million on a 7 per cent increase in com-

parable store sales in the retail and online business and a

16 per cent increase in net sales in the wholesale business.

Gross profi ts for the quarter were $83.9 million, up 6%

per cent from $79.0 million. Gross margins equaled 51.7

per cent, down 1.2 per cent from the same period last year.

Th e decrease in the gross margin was primarily due to

stronger growth in wholesale business, which has lower

margins than the retail and online channels, and transi-

tion costs associated with the supply chain improvement

eff orts as discussed above.

Below are increases for the quarterly periods ended June

30, 2013 and as compared to the corresponding quarter

of the prior year: 

 

Polyconcept adds two key senior

management members

Trotec Canada Acquires Engraver's Express 

Polyconcept North America (PCNA) has

announced that Willem van Walt Meijer has joined

Polyconcept to lead the newly-created Polyconcept

International Markets Division, while Marc L. Brown

assumes the role of the company's Interim Global Chief

Information Offi cer. 

Prior to joining Polyconcept, van Walt Meijer served as

CEO of industry supplier Mid Ocean Brands and earlier

in his career was responsible for opening and building

new businesses on the ground for the multinational

consumer good leader, Unilever. 

Michael Bernstein, Polyconcept Chairman and CEO,

noted, "I'm honored to have Willem join the company as

he is a real professional and fi ts well with our team and

culture.  At the same time I want to recognize Richard

Lariby, who will take on the senior sales responsibility

for the new division, as he’s successfully pioneered this

opportunity for the group."

Brown is joining Polyconcept following a successful

career as Chief Information Offi cer for both Heinz North

America and Del Monte Foods.  He will be responsible for

ensuring that Polyconcept's global IT platform supports

the long-term strategic initiatives being implemented by

the senior leadership team. 

Says Bernstein, "We're very lucky to have someone of

Marc's caliber join our team.  Marc is unique in that he

brings a perfect combination of business understanding

along with global IT solution experience that will be

critical to our longer term success."

Trotec Canada, a division of Trodat Marking Canada is pleased to announce that it has acquired the business of

Engraver’s Express Inc., Grav-Tech Canada Inc. and

Stenlagraph Inc.Engraver’s Express will continue to provide quality products

and services from the existing sales and warehouse branches in

Langley, BC; Calgary, AB; Mississauga, ON; and Montreal, QC.

"Th e acquisition of the Engraver’s Express group of compan-

ies is a tremendous acquisition for Trotec Canada, enabling

us to further strengthen our position in the Canadian market. 

Building on the success of Engraver’s Express and combining

their business with the brand leading Trotec lasers will enable

us to off er a comprehensive and extended range of products

for the benefi t of all our customers," said Deborah Smith,

President of Trodat Marking Canada and Trotec Canada.

Smith added, "We are also very pleased to bring to Trotec

Canada, the experience of all the Engraver’s Express employees. 

Coupled with Trotec Canada’s existing sales, marketing and

technical expertise, we will have an extremely talented, capable,

professional and committed team."

American Apparel Inc. reports second quarter fi nancial results

Comparable Store Sales 6% 14%

Comparable Online Sales 18% 28%

Comparable Retail & Online 7% 16%

Wholesale Net Sales 16% 10%

Total Net Sales 9% 13%

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News

With football season in full swing, tailgaters across the

country are breaking out their coolers, grills and tents, in

celebration of professional and collegiate football games.

According to a Nationwide survey, an estimated 50 mil-

lion tailgaters exist in the USA, while up to $12 billion is

spent on tailgating activities each year.

Th e promotional product industry is no stranger to

incorporating tailgating-related items into their cata-

logues, and many customers oft entimes request their

branded logos on apparel as a way to heighten brand rec-

ognition and awareness during the season. It’s evident that

tailgating is a popular activity, but timing is key in pur-

suing promotional apparel or business-related accessories

to these events. Finding opportunities during this time is

optimal as football events are underway.

Are you one of those distributors that has jumped on the

bandwagon or are you still sitting on the sidelines?

Determining which promotional pieces work best with

your collection of products is defi nitely the fi rst step, as

there are various examples of clothing and accessories

ideal for the occasion:

1. Team-coloured base layer optionsTh ere’s no better way to show pride for the team you’re

cheering for than by sporting their colours in either a

T-shirt or polo. Tailgaters might don a comfortable base

layer piece underneath their jersey or wear the piece as a

standalone item in warmer conditions. Tailgaters can show

their support by sporting shades of Gold, Purple, Forest

Green or Burgundy, as an example. Apparel that includes

UV protection, moisture wicking properties and anti-

microbial can provide the ultimate level of comfort and

performance, while shielding against the sun’s rays.

2. Athletic pantsAthletic bottoms are sure to be

top of mind when participating in

sporting activities, especially those

that are versatile enough to be

worn on their own or paired with

a matching jacket/polo. Your cus-

tomers may be specifi cally looking

for track pants that stand the test of

time, while featuring an elasticized

waistband for added comfort.

3. Lightweight jacketsWhen the temperature starts dropping, an additional

layer such as a lightweight jacket, may be necessary for pro-

tection from

the elements.

Options such

as an adjustable

roll-away hood,

f u l l y - s e a m

sealed water-

proof shell, and adjustable shockcords at hood will keep

anyone less focused on Mother Nature, and more on the

game. Team-coloured jackets are also a great way to main-

tain the team spirit, while staying both dry and on-trend.

4. AccessoriesAccessories, such as bags, are perfect for tailgating

events, especially when carrying around drinks or other

football paraphernalia. Fans of the game

are not just there for a good time,

but most likely there for a long

time, so they will need to be

prepared with a bag that con-

tains diff erent compartments,

pockets and comfortable han-

dles, for the ultimate conven-

ience while on-the-go.

For chilly weather, tailgaters

oft en bring along blankets while

participating in the festivities. You’ll want your

customer to have the option of branding their logo on a

quick cover-up option when temperatures dip.

Once you have selected your tailgating-related items,

you need to start thinking of ways to educate your cus-

tomers on how to utilize them for their programs. Th ere

are plenty of creative avenues for selling tailgating-related

apparel and accessories, and here are just a few:

1. Find companies/clients that are interested in

marketing their products/services at tailgating events. Many companies are starting to set up tents or mini mar-

keting booths at various games. Th is is an opportune time

for the company to provide logo’d accessories or apparel as

giveaways to fans to promote their products or services.

2. Uniform programs at stadiums. As more organizations strive to enhance their appearance

and style, the use of complementary garments continues to

surface as a major trend amongst sport stadiums. Individuals

working at the stadium may

have diff erent job dut-

ies (ie. ticket collectors,

concession stand rep-

resentatives, etc.) and

ordering complement-

ary pieces appeals to

those who have

their staff wear

uniforms, either

outdoors or inside the sta-

dium. Whether interested in having staff wear a polo or

jacket, great suppliers can off er designs with comple-

menting colours and styling, but carry enough unique

characteristics to stand out from the crowd.

3. Companies hosting employee appreciation or

team building events. As more companies strive to off er innovative

incentives to valued employees, bringing them along

to a game is not as far-fetched as it seems. Rewarding

a group of employees who have hit their sales tar-

gets with tickets to a college or professional foot-

ball game, as an example, may spark up the idea of

branding apparel for all employees to wear, with the

company name or logo. Not only will employees feel

appreciated, but this is yet another avenue to pro-

mote the company brand to a large audience.

Gearing Up For Tailgating? Don’t Forget Your Promo Gear!By: Chris Clark, Ash City

Chris Clark is the Vice President of Sales, Eastern USA, for Ash City, which provides customizable promotional apparel for cor-porate and casual markets. The company, an industry leader in quality, design and innovation, staff s over 500 employees worldwide, including Canada, the United States, Malaysia and Bangladesh. Ash City

manufactures and distributes apparel under brands North End®

, North End Sport

® , North End Sport

® Blue, Extreme, Core365

™ , Il Migliore and Ash City.

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GN-PR 006 42400 ImprintCanada July 2.indd 1 13-06-11 08:48

IMPRINT CANADA

News

New

For the most part, a DTG printer uses a horizontally moving inkjet print head to apply an image directly onto the surface of a garment which is mounted on a platen that gradually feeds the garment through the machine below the print head. Special quick-drying inks designed specif-ically for the fabric being printed, typically 100% cotton, are used in the process. It should be noted that digital printing inks are engineered to bond with specifi c surface materials. (Th ere is no ink that works on all surfaces.)

Unlike screenprinting, the ink colours are applied continuously in a single plane, rather than sequentially

in layers. Th ough the inks dry when applied, they will need to be cured through the use of some form of post-printing heat apparatus such as a heat press or garment dryer. Digital garment inks contain “binders” which are adhesive additives that will help bond the ink to the fab-ric. Th e heat activates the binders such that the image is “fi xated” to the fabric and will not wash off when laun-dered. Fixation also helps to preserve the colour over an extended period of time.

In comparison, sublimation is a digital dye process used for applying graphic and photographic images to

polymer and polyester surfaces. Inks such as those used by the DTG process apply colour to the surface whereas sublimation dye penetrates the surface to recolour from the inside out. Th us, the chemistry of the two processes is quite diff erent, with sublimation relying on molecular bonding while DTG relies on surface adhesion.

Th e sublimation process utilizes an inkjet printer equipped with sublimation dyes to print an image onto sublimation transfer paper. Th e printed transfer paper is then applied to the blank substrate using a heat press.

Th e combination of heat and pressure cause the sub-limation ink to convert into a gas and at the same time, the polymers of the substrate to open up to receive the gas. (A bit of an over-simplifi cation, but this is a basic outline for our purposes.)

Aft er the heat application is completed (aft er about 1 minute), the transfer paper is removed and discarded. When the product cools down, the sublimation dye is encapsulated within the surface (instead of on top). Th e result is a high resolution, permanent colouration that won’t peel or crack. And in the case of apparel, sublima-tion will not fade, even aft er multiple washings. (Note: Sublimation dye does not contain binders as they are not needed for the process.)

Obviously the limitation of sublimation is that it only works on polymer-based surfaces, which in the case of apparel means some form of polyester. But with the sur-ging demand for poly-performance apparel, sublimation is the ideal process for the product.

Both methods utilize inkjet print heads to produce a printed image or graphic. In the case of DTG, the printer is either built from the ground up for the specifi c purpose of surface printing, or created by modifying an existing printer system. With sublimation, off -the-shelf offi ce style printers are used for desktop printing (up to 13” x 19” fi elds) and industrial printers are used for larger formats.

COLOURSBoth printer systems create image colour by mixing

base colours (CMYK - Cyan, Magenta, Yellow, Black) following recipes created by the graphics soft ware. Unlike screen printing and embroidery, which used pre-coloured decoration materials (ink and thread, respectively), digital printing allows you to create thousands of custom colour combinations without being limited by stations or needles.

Sublimation printers come in 4, 6 and 8 colour models which refers to the number of base colours available for mixing, not the number of colours that can be output. More base colours give you the ability to create more precise colour detail, such as realistic facial skin tones when dealing with photographs. DTG printers are 4 col-our units which are fi ne for most graphical applications, especially apparel. As well, the majority of sublimation shops also use a 4 colour system.

With all digital printing, there is a challenge to deliver consistent colour results on the fi nal product. Both DTG and sublimation rely on digital artwork created with stan-dard soft ware programs such as CorelDRAW, Photoshop and Illustrator, but it takes a further level of enhancement to properly deliver accurate colour output at the print head - which is something referred to as colour management.

Th e purpose of colour management is to maintain colour accuracy as an image moves from creation to completion through a chain of electronic devices such as monitors and printers, each of which has a diff erent method of creating and delivering colours.

DTG relies on RIP (raster image processor) programs which may not be included in the equipment purchase

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for managing colour. Sublimation systems rely on custom printer drivers, colour palettes, and profi les which are usually provided by the manufacturer.

Colour management only deals with getting the right colour information to the printer, it does not guarantee that the correct colour will appear on the garment itself. Digital inks are transparent such that when applied to a coloured surface, the colours of the background can aff ect the colours of the image. As a result, white is the best surface colour to print on for both systems as coloured surfaces may not yield the same results.

Screen Printers combat this issue by applying a base coat of white ink onto the surface of any coloured garment such that the image itself is actually being applied to a white background instead of a coloured one. Some DTG printers also have the capability of applying white ink onto a coloured garment prior to overlaying it with the inks that create the image. Th is white layer assures that the image’s colours will not be altered by the colour of the garment.

Th e second aspect of white ink is that it gives you the ability to apply the colour white within an image when it’s printed on a coloured garment. Because there is no combination of col-ours in the CYMK ink set that can create the colour white, graphics programs typical-ly leave any white areas in a design “open” under the assump-tion that they will be applied to a white surface.

In that situation, the fabric colour fi lls in the open area and creates the needed white. But if the same image was applied to a blue shirt, the supposed white areas would now be blue, which might not be ideal. By applying a base layer of white ink prior to print-ing the image, the open areas of a design will appear white in the fi nal design.

Th is sounds easy enough, but in actuality its quite complex. Th e only way to print the colour white is to engineer a specifi c ink for the purpose that is applied independently of the base colours of the printer. With a white ink system, a command is sent to the printer telling it to apply the white ink (from an independent cartridge) when required. Th is of course requires that the printer be designed specifi cally to support white ink.

White ink for digital printing has to be thick enough to create a decent base, yet thin enough to get through the ink jet nozzle. In addition, it has to cure quickly so that the other inks can be applied on top of it without any quality issues. Furthermore, soft ware must be incor-porated to interpret the colour and send the appropriate responses as necessary to apply the white ink.

Th is is accomplished by a two-pronged approach. Th e fi rst is that the white ink itself must be engin-eered to be quick curing. Th e second is that a special chemical called a pre-treatment is typically added to the surface of the shirt before printing. When the white ink contacts the pre-treated area, the curing time is accelerated such that the production proceeds uninterrupted (no need to stop and wait for drying to occur). Plus the pre-treatment helps to ensure that the white ink bonds properly to the fabric itself.

Early white ink systems developed a reputation for clogging and drying out in the print heads, which in turn led to costly repairs. New advances in technology have greatly improved the process, and for the most part, if you fully understand how your system works and follow the instructions provided by the manufac-turer you shouldn’t experience signifi cant problems.

In reality, white ink is not needed on every job, and

thus not all DTG printers off er it. But before you insist on having white ink capabilities, make sure you bal-ance your desire against your need. White ink does have challenges, one of which is the artwork which has to be prepared diff erently to accommodate white ink, so know what you are getting into, especially since it typically raises the price tag in addition to the level of production complexity.

What about white ink for sublimation? Not avail-able. Th ere are some alternative methods such as all-over sublimation where you apply an image that completely covers the surface of a shirt. You start with a white shirt and then recolour it while adding graphics all in one step (per side). It of course requires a wide format printer and heat press, but this is gain-ing in popularity. But, even without white ink you can successfully sublimate light-coloured apparel.

Whereas DTG has an advantage over sublimation in terms of printing on coloured surfaces, sublimation

takes the cake when it comes to the range of products that can be decorated, plus the level of image quality that can be produced on those items. Sublimation-ready merchan-dise includes plaques, awards, promotional products, photo panels, memorial products, signage, mugs, fl ip-fl ops, kooz-ies, fl ags, tiles, cell phone cov-ers, laptop sleeves, stadium seats, acrylics, pet products,

etc. One machine can produce hundreds of products.In terms of printing costs, DTG ink costs average

$0.005 square inch (excluding white ink). Sublimation ink and paper costs come in well under $0.01 square inch. Th us an 8x10 image would be around $0.40 with DTG and $0.56 with sublimation (based on a Ricoh 3110 printer).

In regards to production output, sublimation is faster providing an average throughput of 6,560 square inches per hour whereas DTG averages 5,360 square inches per hour.

In actuality both systems are pretty close in terms of operation costs and output, where the real diff er-ence comes into play is in equipment costs.

DTG printers start at around $16,000 and rise steeply from there. In contrast, an entry level desk-top sublimation system starts about $550 and tops out around $2500. Both systems require a heat press, which adds another $1000 or so to the startup cost. Some DTG systems actually require a more sophis-ticated heat source such as a dryer, which can add several thousand to the price tag.

Is one system better than the other? It really comes down to your needs. Take the time to calculate the ROI for each, which goes well beyond equipment costs, as you also want to take into consideration versatility – which process will give you the widest range of decoration services and product options based on the needs of your business, as this is what will generate the most business in the long run.

Be diverse, be creative and be profi table!

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Lead TimesTh e logistics of overseas supply chain management

can be complex, requiring long lead times between design and delivery, not to mention added cash fl ow pressures as distributors typically are required to pay for products and have to wait months before they can be sold and delivered to end buyers.

Domestic manufacturing boasts much more rapid lead times with respect to overseas production. In approximately the same time frame that it takes simply to ship goods from overseas, Canadian manufacturers can design, develop, and produce the same products.

Th is is especially important for distributors that focus on Corporate Fulfi llment Programs. If inventory is out of stock, overseas replenishment can take up to several months, compared to its domestic counterparts that can restock in a fraction of that time.

FlexibilityDomestic manufacturing, by its very nature, also

benefi ts from added fl exibility with respect to custom-ization and minimum order requirements. Manufacturers based in Canada are able to develop and off er cus-tom programs, usual-ly at a fraction of the quantities required overseas. Th is benefi ts the buyer greatly, espe-cially from an inven-tory standpoint.

Instead of having to order thousands of units of one SKU or product, distributors can fulfi ll orders con-sisting of low minimums and/or a wide product range without having to tie up critical cash fl ow or worry about inventory management issues.

Th e fl exible model that domestic manufacturers can off er also helps provide buyers with the competitive advantage of being able to keep up with customers' rapid and ever-changing demands and trends.

Control / Transparency Quality control has always been a critical factor in pro-

duction, but the tragic events that occurred in Bangladesh have shined an even brighter spotlight on the importance of Corporate Social Responsibility.

Distributors have more control when they source locally. With a manufacturing facility based in the same country or province, buyers can see exactly what they are getting and the conditions with which they are being produced. Th e same cannot always be said of overseas production.

While socially-conscious product fulfi llment is not a requirement for all programs, the demand from consum-ers for these products continues to grow. With tragedies like the aforementioned Bangladesh factory collapse, a gradual shift in purchasing attitudes is occurring as the new generation of consumers are becoming more con-scious of where the products they purchase are coming from and how their decisions impact their communities, the environment and the economy.

Distributors who source ethically-produced goods are giving themselves a strategic advantage, especially among discerning clients.

Disadvantages of domestic production

Higher Production CostsTh e overwhelming disadvantage communicated to us

by all manufacturers we spoke with was the same one: that domestic producers are required to deal with much higher production costs. Th ese costs come in a variety of forms - from labour to taxes to levies.

Canada - being a developed, fi rst-world nation - prides itself on its strict, leading labour policies which ensure ethical, safe, fair conditions for workers; employed fac-tory personnel in this country are paid well and given labour benefi ts deserved to them.

Th ese labour policies and ethical standards come at a cost however, for which manufacturers are strictly held accountable for. In some instances, labour cost for a Canadian worker per day can equate to several week's pay for an off shore factory worker.

Domestic manufacturers are also subject to strict gov-ernance from various levels of government, consumer groups, as well as business groups and associations.

Biggest misconception about domestic manufacturing

Cost Comparison Th e main disadvantage of domestic production also

turns out to be the most common misconception, which is that domestically made products are much more expensive than their off shore counterparts.

When taking into consideration the risk of hidden costs associated with bring-ing a product to the Canadian marketplace (which we outlined in the fi rst instalment of this article series) the real price gap is minimal, and in some cases, even on par.

Futhermore, the cost of domestically manu-factured goods are not always compared “apples to apples” with comparable products off shore.

In the promotional products industry, when orders are time sensitive and quantities are normally not too high, domestic produc-tion can be better suited, especially when customization and personalization is needed. When factors such as these are taken into account - and time lines are costed in - domestic pricing is comparable (and at times are even cheaper) than product sourced directly off shore.

Changes in the domestic production landscapeOver the past decade, manufacturing in Canada - in

Ontario, especially - has experienced a notable exodus. Companies shift ing production overseas has resulted in a disappearance of manufacturing jobs and with them, the necessary skills that manufacturers require form workers.

Affi liate businesses that traditionally have supported and collaborated with Canadian manufacturers have either scaled down operations or closed shop altogether, leaving domestic suppliers with the choice to either pull out of markets or increase exposure in a dwindling manufacturing trade.

Relative to the fi nancial burdens that taxes, levies, policy adherance and labour costs that domestic pro-ducers must face, margins have dwindled in some cases almost to the point that dollars are simply being traded to keep factories running and Canadians employed.

Th is brings into question the long term sustainability of Canadian manufacturing, which is an ever-critical socioeconomic issue for all Canadians. Increasingly, manufacturers have communicated to us that it is not just whether a domestic producer wants to continue manufacturing on Canadian soil, but rather how profi t-able it will be to do so.

With higher production costs juxtaposed against ever-increasing pressure from the market to provide the lowest priced item, the paradox that domestic manufacturers face is an increasingly challenging one. Part six of this series will be published in the November/December 2013

edition of Imprint Canada Magazine.

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For the past 15 years, Big Kahuna

Sports Company has been building

on it's reputation as Canada's premier

institutional team dealer, servicing the

needs of athletes, institutions, colleges, universi-

ties, schools, organizations and corporations all

across Canada.

The company was founded in 1998 by Gord

Querin, who - after almost a decade of working

in sales for a

competitor -

decided it was

time leverage

the valuable

relationships

he had worked

diligently to

cultivate and

venture off on

his own.

"We started

with no money," says Querin.

"I had built some loyalties up and was able

to do a little bit of business for my clients and

things gradually grew from there." Grow they

certainly did, as Big Kahuna now boasts eight

offices across the country (including two retail

locations), annual revenues

in the neighbourhood of $20

million, and a client base

that numbers well into the

thousands spanning from

B.C. to Nova Scotia.

In 2006, Big Kahuna

acquired an existing busi-

ness to help fuel their growth

into the Alberta market.

"It's been a gradual growth

cycle for us," notes Querin,

explaining that during the

decade and a half that the

company has been in oper-

ation, year over year growth

has averaged approximately

20 per cent.

The vast majority of the company's business

lies in servicing the lucrative niche that is the

institutional team market; this entails providing

coaches, athletic directors, schools, colleges and

sports organizations with everything they need

to run their operations - from uniforms, sideline

apparel, equipment, and pretty much any other

product that has to do with athletics.

An ongoing annual challenge for Big Kahuna

Sports Company lies in funding the company's

ongoing growth. "Since we've always been in

growth mode, we've been undercapitalized since

day one," explains Querin. "Because our busi-

ness is fairly seasonal, the majority of our clients

spend heavily heading into the summer, so we

are busy buying product for the 'Back to School'

season and we deliver such an incredible amount

of product in late August and early September

that cash flow becomes tight."

To address and overcome this challenge, Big

Kahuna has worked out agreements with their

suppliers to address the seasonality of their core

business, as well as diligently managing cash flow

throughout the year.

Unlike other sectors which are heavily impacted

by recessionary pressures, institutional team

budgets are rarely, if at all, affected by economic

downturns. "Sports and recreation are one of the

only recession-proof mar-

kets," notes Querin. "Our

clients still have to field a

team and kids still need to

play sports. If their budgets

do get cut, they find ways to

raise funds to keep spending

what they have in the past."

Currently, 5 per cent of

the company's business is

generated from servicing

the corporate marketplace,

however this is one of the

areas that Big Kahuna is

strategizing to focus on.

Querin explains that the

company's current infra-

structure features 25 sales

reps across Canada servicing teams and institu-

tions, and is now the process of creating a dedi-

cated corporate promotional division.

When asked how Big Kahuna makes its mark in

the industry, Querin doesn't hesitate for a moment

to point to his team. He explains that the company

has always had the best people in the business

working for them - from sales, marketing and all

throughout the company.

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"Anytime we have the opportunity to add a valuable member to our team, we

jump at the chance," he says. "We just surpassed the 50 employee mark and they

are our number one strength. It's all about our people."

The personnel at Big Kahuna are relationship-driven who have worked very

hard to earn loyalty with their clients - very much like Querin himself. Loyalty

for Big Kahuna means doing exactly what you say your are going to do, delivering

on time and dealing with mistakes right away.

Just recently in fact, Querin recalls a situation where a large client of theirs

brought in quite a bit of product to be decorated that they had purchased else-

where. The product bled when it was printed and it needed to be replaced; Big

Kahuna took care of at their own cost without hesitation. "We could have told

them that it wasn't our product, but we replaced it because that relationship we

have is the dearest thing to us; without it, our business is not solid."

Querin attests that mistakes happen; at Big Kahuna however, errors are seen

as perfect opportunities to show clients what kind of company they are and to

reinforce core values of integrity, loyalty and respect.

One of the most rewarding programs that Big Kahuna has recently taken on is

their title sponsorship of the "Athletes Against Bullying" campaign across Canada

which neatly aligns with the company's values and helps youth deal with and

overcome the very important issue of bullying.

"We're a solid culture of people on the same page working very hard with pas-

sion to put a lot of smiles on athlete's faces."

Another element which has contributed to the success of Big Kahuna Sports

Company was their unique approach to market entry. Early on, the company was

able to create a competitive advantage for itself within this niche by partnering

closely with big athletic brands at a time when they were not readily available

at the institutional level.

Big Kahuna was a pioneer in introducing the U.S. model into the

Canadian marketplace. For example, the University of Michigan is an

Adidas partnered school; Big Kahuna brought that concept to Canada

and began marrying these global brands with Canadian institutions and

organizations.

"We are the largest team dealer for Adidas and Under Armour in

Canada," explains Querin, who adds that their strategic partnerships

with these brands has afforded them a competitive advantage merited

by their volume.

Nowadays, these brands have become much more predominant at

the educational and club level, and a lot of that can be attributed to Big

Kahuna's model.

So what's next for Big Kahuna Sports Company?

Gord Querin hints at something big coming down the pipeline that

is part of the company's aggressive, ongoing 12-year plan (which is kept

updated at all times). "We do have something up our sleeve that's very

big that will probably be revealed a year from now, but I can't (divulge

details)," he explains.

Enjoying a competitive advantage is something that Big Kahuna Sport

Company has become accustomed to, and from the early indications of

what the company has coming down the pipeline, it doesn't seem like

that will be changing anytime soon.

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SURVEY OF LARGE CANADIAN RETAILERS & CONSUMER PRICE INDEX

Statistics Canada recently released its commodity sales data by large retailers

for June, as well as its Consumer Price Index (CPI) report for the month of July.

Monthly Sales of Clothing, Accessories &

Footwear down from June 2012 levelsSales of women’s clothing and accessories across all categories in June were

down almost 5 per cent

from the same period last

year, and almost 12 per

cent from May 2013 (see

Figure 1).

Sales of Men’s clothing

and accessories across

all categories were down

almost 3 per cent from

the same period last year,

but up more than 5 per

cent from May 2013 (also

Figure 1).

Footwear sales in May

2013 were up over 13 per

cent from a year ago, before

dropping 16 per cent to

$178.6 million in June 2013.

Th is represented a 3 per cent decline from the same period last year (see Figure 2).

Consumer Price Index up 1.3 per cent in JulyTh e Consumer Price Index (CPI) in Canada - which measures changes in the

price level of a market basket

of consumer goods and servi-

ces purchased by households

- rose 1.3 per cent in the 12

months to July, following a

1.2 per cent increase in June

(see Figure 3).

Th e increase in the CPI in

July was led by transporta-

tion prices, which rose 2.7

per cent on a year-over-year

basis, following a 2.0 per cent

gain in June.

Compared with July last

year, consumers paid 6.1

per cent more for gasoline.

Th is followed a 4.6 per cent

increase in June.

Gasoline prices rose in

all provinces, with Prince

Edward Island (+13.9 per

cent) recording the largest

gain and Saskatchewan

(+2.7 per cent) posting

the smallest increase.

Prices for the purchase

of passenger vehicles

rose 2 per cent in the 12

months to July, matching

the increase in June. In

addition to transporta-

tion, the shelter compon-

ent was a main upward

contributor to the increase

in the CPI in July.

Cost of clothing & footwear rises in CanadaTh e cost of clothing and footwear rose to 1.5 per cent in July 2013, up almost

double from 0.8 per cent in June 2013 (see Figure 4).

During this same

period, the food index

posted its smallest

year-over-year increase

in over three years. Th e

index for health and

personal care was the

only major compon-

ent to record a decline

in July.

Shelter costs rose

1.3 per cent in the 12

months to July, aft er

increasing 1.2 per cent

in June. Compared

with July last year,

natural gas prices and

rent increased, while

mortgage interest cost declined 3.8 per cent.

Food prices rose 0.8 per cent in the 12 months to July, following a 1.2 per cent

uptick in June. Th e July increase was the smallest gain in food prices since June

2010. Th e cost of food purchased from stores rose 0.5 per cent in the 12 months

to July, a smaller increase than in June (+1.3 per cent). Prices for fresh fruit, fresh

vegetables and meat all increased less in July compared with June.

Th e health and personal care component decreased on a year-over-year basis

for the fourth consecutive month in July. Th ese declines followed more than a

decade of price increases. Th e recent declines are mainly attributable to falling

prices for prescribed medicines.

0

100

200

300

Monthly Sales of Footwear

(survey of large Canadian retailers )

($) millions

of dollars

$178.6

million

$212.5

million$184.0

million

Source: Stats Canada

June 2012 May 2013 June 2013

Figure 2

200

300

400

500

600

700

800

900

Monthly Sales of Clothing & Accessories

(survey of large Canadian retailers )

($) millions

of dollars

$682.2

million

$770.2

million$714.4

million

$377

million $344.9

million

$366

million

Source: Stats Canada

June 2012 May 2013

Women’s Clothing and AccessoriesMen’s Clothing and Accessories

June 2013

Figure 1

Consumer Price Index

(Jan 2011 - June 2013)

Source: Stats Canada

2011 2012 20130

1

2

3

4

5

% Change

Figure 3

Consumer Price Index

(June 2013 vs July 2013)

Source: Stats Canada

OVERALL CPI

FOOD

SHELTER

HOUSEHOLDFURISHINGS & EQUIPMENT

CLOTHING & FOOTWEAR

TRANSPORTATION

HEALTH & PERSONAL CARE

RECREATION & EDUCATION

ALCOHOL & TOBACCO

-0.5 0.0 0.5 1.0 1.5 2.0 2.5 3.0

June 2013 July 2013

Figure 4

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