Origin Africa: Certification, Overhead or Enhancement · $5.000 $10.000 $15.000 $20.000 $25.000 $30.000 2011 2012 2013 2014 2015 China & Hong Kong Bangladesh Viet Nam Italy India

Origin Africa: Certification, Overhead or Enhancement

International Apparel Federation

Matthijs Crietee, Secretary General

| [email protected] | www.iafnet.com

96

97

98

99

100

101

102

C O N S U M E R C O N F I D E N C E I N D E XAvg of Jan 2014 – Aug 2017 = 100

China US OECD - Europe

SOURCE: OECD

What’s driving sourcing and supply chain trends in the apparel industry in 2017?

Technology

Constraints

Market needs

Organisation of the supply chain

Drivers Explained

• Constraint: the world is running out of cheap countries

• Constraint: Price instrument is overused

• Technology: Improving productivity

• Technology: Making supply chain more effective

• Market: Wants omnichannel, available, functional, cool

• Market: Growth outside of US and EU

• Market: Growing pressure to be really accountable for workingconditions in supply chain increases

Technology is enabling change

• Accelerating the use of technology in the industry. Particularly the use of computing power:• to digitalise the product development and sales processes,

• to involve consumers in design through co-creation, to enhance their shopping experience.

• to feed data from own retail directly to design and product development and to use of ‘big data’ to improve forecasting

• To improve the supply of information to consumers about the product and the production process






Global trade and consumption trends

•Asia/emerging economies on the rise as market and as importer

$-

$50.000

$100.000

$150.000

$200.000

$250.000

$300.000

China USA Germany United Kingdom India Italy France Russia Brazil Canada

B I G G E S T A P PA R E L M A R K E T S I N R E TA I L S A L E P R I C E I N U S $ M I L L I O N

2011 2012 2013 2014 2015 2016

SOURCE: EUROMONITOR

$480.431

$299.517

$298.272

$92.408

$72.359 $52.590

M A R K E T S I Z E I N R E TA I L S A L E S P R I C E I N U S $ M I L L I O N

Asia Pacific Western Europe North America Middle East and Africa Latin America Eastern Europe

SOURCE: EUROSTAT


0

1

2

3

4

5

6

7

8

2000 2010 2015 2016 2020

GD

P g

row

th a

nn

ual

per

cen

tage

ch

ange

Year

Real GDP growth (annual percentage change)

Advanced economies

Emerging market anddeveloping economies

World

Source: IMF

Asia’s exports of clothing in billions of US dollars. Source: ITC


02468

1012141618

Value in2009

Value in2010

Value in2011

Value in2012

Value in2013

Asia's exports of clothing in Billions of US dollars

To the ASEAN

To the Brics


•shift from China to Vietnam, Cambodia, Bangladesh but China still by far themain exporter of apparel in the world.

78%

3%

2%

16%

1%

Import USA from the world

Asia

Europe

Africa

Latin America and Caribbean

Overig

35%

27%

30%

8%

Asia export to the world

Europe

USA + Latin America and Caribbean

Asia

Other

60%

35%

4% 1%

EU-28 import from the world

Asia Europe Africa Other

G L O B A L A P PA R E L T R A D E F L O W S I N 2 0 1 6

(BASED ON VALUE)

SOURCE: INTRACEN

$-

$5.000

$10.000

$15.000

$20.000

$25.000

$30.000

2011 2012 2013 2014 2015

China & Hong Kong Bangladesh Viet Nam Italy India Turkey Spain Indonesia Cambodia Pakistan

$175.000

$180.000

$185.000

$190.000

$195.000

$200.000

$205.000

$210.000

Country 2011 2012 2013 2014 2015

China & Hong Kong $178.278 $182.326 $199.451 $207.214 $192.498

Bangladesh $ 19.214 $ 19.788 $ 23.500 $ 24.583 $ 26.602

Viet Nam $ 13.149 $ 14.442 $ 17.148 $ 20.174 $ 23.462

Italy $ 23.272 $ 22.165 $ 23.739 $ 25.195 $ 21.249

India $ 14.671 $ 13.927 $ 15.542 $ 17.742 $ 18.254

Turkey $ 13.947 $ 14.289 $ 15.393 $ 16.667 $ 15.120

Spain $ 9.628 $ 9.983 $ 11.591 $ 12.530 $ 11.756

Indonesia $ 8.045 $ 7.523 $ 7.692 $ 7.669 $ 7.593

Cambodia $ 3.994 $ 4.294 $ 5.025 $ 5.338 $ 5.937

Pakistan $ 4.549 $ 4.213 $ 4.548 $ 4.991 $ 5.023

1 0 B I G G E S T A P PA R E L E X P O R T E R S I N U S $ M I L L I O NSOURCE: WTO

0

5000

10000

15000

20000

25000

30000

2011 2012 2013 2014 2015

S I X FA S T E S T G R O W I N G A P PA R E L E X P O R T E R S B Y P E R C E N TA G E I N U S $ M I L L I O N

Bangladesh Viet Nam India Cambodia Poland Jordan

SOURCE: WTO

€ -

€ 2.000.000.000

€ 4.000.000.000

€ 6.000.000.000

€ 8.000.000.000

€ 10.000.000.000

€ 12.000.000.000

€ 14.000.000.000

M A J O R K N I T W E A R E X P O R T E R S T O E U - 2 8

Jan.-Dec. 2000 Jan.-Dec. 2010 Jan.-Dec. 2016

SOURCE: EUROSTAT

€ -

€ 2.000.000.000

€ 4.000.000.000

€ 6.000.000.000

€ 8.000.000.000

€ 10.000.000.000

€ 12.000.000.000

€ 14.000.000.000

€ 16.000.000.000

M A J O R W O V E N A P PA R E L E X P O R T E R S T O E U - 2 8

Jan.-Dec. 2000 Jan.-Dec. 2010 Jan.-Dec. 2016

SOURCE: EUROSTAT


• Need for flexibility, fast(er) fashion andcustom made products leading tosourcing closerby?

China-Asia Textile Forum, Shanghai, March 13, 2017

€ 23.968.759.643

€ 27.199.905.671

€ 33.355.893.068

€ 15.062.387.415

€ 33.358.637.553

€ 43.784.352.307

2000

2010

2016

TOTAL DISTRIBUTION BETWEEN FAR AWAY AND CLOSE BY SOURCING OF THE EU-15 FROM THE 45 BIGGEST SUPPLYING COUNTRIES

(PER HS CHAPTER)

Close by Far away

SOURCE: EUROSTAT


•Investments are taking place in Africa, coming from US, India, China andTurkey. In some cases, export is rising, but no substantial position as exportingpower yet.

$-

$100.000.000

$200.000.000

$300.000.000

$400.000.000

$500.000.000

$600.000.000

$700.000.000

$800.000.000

$900.000.000

$1.000.000.000

Mauritius Madagascar South Africa Lesotho Kenya

2000 2010 2015

T O P 5 S U B S A H A R A N A P PA R E L E X P O R T E R S T O T H E W O R L D I N U S $

SOURCE: INTRACEN

# 6 - 9 S U B S A H A R A N A P PA R E L E X P O R T E R S T O T H E W O R L D I N U S $

*No data available of 2015

SOURCE: INTRACEN

$-

$20.000.000

$40.000.000

$60.000.000

$80.000.000

$100.000.000

$120.000.000

Ethiopia Tanzania Mozambique Swaziland*

2000 2010 2015

Country 2000 2010 2015

Mauritius $ 947.577.344 $ 657.987.773 $ 762.050.619

Madagascar $ 308.584.192 $ 347.730.706 $ 414.576.295

South Africa $ 218.143.244 $ 424.887.046 $ 410.803.356

Lesotho $ 161.000.000 $ 182.572.215 $ 300.309.908

Kenya $ 8.766.964 $ 189.000.000 $ 282.947.880

Ethiopia $ 228.320 $ 12.171.287 $ 77.937.381

Tanzania $ 2.976.073 $ 11.654.355 $ 21.899.637

Mozambique $ 6.207.610 $ 607.107 $ 1.223.206

Swaziland** $ 124.014.400 $ 49.205.730

$-

$100.000.000

$200.000.000

$300.000.000

$400.000.000

$500.000.000

$600.000.000

$700.000.000

$800.000.000

$900.000.000

$1.000.000.000

Mauritius Madagascar South Africa Lesotho Kenya Ethiopia Tanzania Mozambique Swaziland*

2000 2010 2015

S U B S A H A R A N A P PA R E L E X P O R T E R S T O T H E W O R L D I N U S $

*No data available of 2000 **No data available of 2015

SOURCE: INTRACEN

What’s driving sourcing and supply chain trends in the apparel industry in 2017?

Technology

Constraints

Market needs

Improve, not move

Digitisation is the new frontier

New markets, complex markets

Opportunities, also for Africa

From a supplier’s point of view, knowing these trends, what to do?

• Improve productivity

• Compete on speed and supply chain efficiency, invest in flexibility and in communication, add services

• Develop new products, invest in upstream knowledge

• Develop more environmentally sustainable ways to produce and to source

• Diversify markets

From an association’s or government’sperspective, to gain a place in current apparelsupply chains, requires different skill sets. It is recommended to set up knowledge transfer programs on, among other subjects:

• Lean manufacturing, factory organisation, efficiency, reduction of waste, automation.

• Upstream knowledge, chemistry, recycling, product development.

• Software, supply chain organisation, mass customisation, flexibilityenabling techniques.

• Retail, merchandising knowledge


Building Bridges in the Fashion Chain

International Apparel Federation

www.iafnet.com


Documents

Origin Africa: Certification, Overhead or Enhancement · $5.000 $10.000 $15.000 $20.000 $25.000 $30.000 2011 2012 2013 2014 2015 China & Hong Kong Bangladesh Viet Nam Italy India