Colombian Presentation The Canadian Apparel Market A Guide for Potential Colombian Apparel Exporters Prepared By 1

1Colombian Presentation

The Canadian Apparel Market

A Guide for Potential

Colombian Apparel Exporters

Prepared By


Purpose of today's presentation

Introduction

¨ Describe what a Colombian apparel supplier has to do in order to enter and be competitive in the Canadian apparel market

¨ Introduce Trendex North America

¨ Review the history of Colombian apparel exports to Canada

¨ Overview the Canadian retail apparel market

¨ Identify potential opportunities for Colombian apparel manufacturers in Canada

Colombian Presentation 3

An apparel marketing intelligence and consulting company focusing on the Canadian and Mexican apparel markets.

As an industry specialist Trendex offers companies unique value added insights based on both working with apparel retailers and suppliers and its continuous propriety research information services.

www.trendexna.com

Trendex North America


Source: Statistics Canada/ CIA Fact Book

What is Canada?

Canada World Rank

Colombia World Rank

Population (000) 34,568 #37 45,370 #29

Yearly Pop Growth Rate 0.78 #136 1.13 #104

GDP (U.S.$Trillions 2012) $1.4 #14 $0.5 #29

GDP Per Capita (U.S.$2012) $41,500 #27 $10,700 #112

Retail Apparel Sales (US$Mill) $27,420 - $9,600 -

Apparel Sales per Person (US$) $793 - $211 -


Source: Statistics Canada

Largest ProvincesOntario 13,472,000Quebec 8,028,000British Columbia4,606,000Alberta 3,847,000

Largest Metropolitan MarketsToronto 5,839,000Montreal 3,909,000Vancouver 2,420,000Calgary 1,265,000Ottawa 1,259,900Edmonton 1,196,340

What is Canada?


CANADIAN TOTAL APPAREL IMPORTS($ Millions)


$7,001$7,465

$7,874$8,429 $8,260 $8,231

$9,043

2005 2006 2007 2008 2009 2010 2011 2012

2012/2011Change

+0.8%$9,118

Canadian Apparel Importing Patterns


0.8%

37.5%

10.9% 10.1% 7.7% 5.9% 5.8%4.4%

-7.3%-10.8%


Cambodia BangladeshHondurasTotal Imports

ChinaVietnam India

Imports of Apparel Into CanadaJanuary – December 2012

Percent Change

Pakistan

14.6%

MexicoTurkeyUSA



$4,279

$1,011

$592 $536 $398 $322 $288 $241 $197 $119

China Bangladesh UnitedStates

Cambodia Vietnam Mexico India Indonesia Italy Pakistan

IMPORTS OF APPAREL INTO CANADAJanuary – December 2012

($ Millions)





Largest Latin America Apparel Exports to Canada2012 C$ (000)

Country Amount% Change 2012/2011

Mexico $322,307 +4.5%

Honduras $84,625 +7.7%

El Salvador $37,635 +49.2%

Guatamala $34,001 -7.9%

Peru $29,703 +13.3%

Nicaragua $26,102 +51.7%

Haiti $24,380 +36.5%

Dominican Republic

$19,548 +24.2%

Colombia $9,295 +16.1%

Costa Rica $5,914 -3.8%


Colombia’s Apparel Exports to CanadaCanadian Dollars (000)


$7,991$7,010 $7,194

$8,005

$9,295

2008 2009 2010 2011 2012


% Change2012/2011+16.1%


45.1%

38.0%

16.8%

0.2%

Distribution of Exports


Hosiery/Workwear/All Other

Women’s/Girl’s

Men’s/Boy’s

Colombia’s Apparel Exports to Canada2012 Canadian Dollars (000)

Children’s



Colombia’s Apparel Exports to CanadaCanadian Dollars (000)

Segment 2008 2009 2010 2011 2012% Change 2012/2008

Men’s $3,454 $2,641 $3,113 $3,262 $4,190 +70.7%

Women’s $2,611 $2,879 $2,570 $2,964 $3,700 +41.7%

Childrens $380 $223 $188 $216 $20 -95.0%

All Other $1,546 $1,267 $1,322 $1,563 $1,386 -10.4%



Largest Latin America Apparel Exporters to Canada2012 Dollars (Millions)

Country Sales

Mexico $194

Honduras $56

Haiti $22

El Salvador $18

Nicaragua $17

Dominican Republic

$14

Guatemala $13

Peru $12

Colombia $4.2

Country Sales

Mexico $62

Honduras $15

Guatemala $11

Peru $9

El Salvador $6

Nicaragua $5

Colombia $3.7

Dominican Republic

$3

Country Sales

El Salvador

$0.6

Guatemala $0.5

Mexico $0.4

Honduras $0.2

Colombia $0.2

Peru $0.1

Nicaragua $0.1

Dominican Republic

$0.1

Country Sales

Mexico $65

Honduras $12

El Salvador

$12

Peru $8

Nicaragua $3

Dominican Republic

$2

Costa Rica

$2

Colombia $1.4

Brazil $0.8

Men Women Juvenile All Other


$9,295

$7,991

$7,010 $7,193$8,005

$1,449

$314$561$139$177

2008 2009 2010 2011 2012

Total Exports

Total Imports

Colombia APPAREL BALANCE OF TRADE WITH CANADA

Thousands of Dollars

Source:



What can be said about Canadian Apparel Manufacturers?

• The number of manufacturers and their sales have

decreased by 35% - 45% over the past ten years

Canadian Apparel Suppliers


Canadian Apparel Manufacturing SalesSeasonally Adjusted (Millions of Dollars)

$3,610

$2,646

$2,213 $2,296 $2,246$1,933

2007 2008 2009 2010 2011 2012

% Change (N.A) (-27.2%) (-16.4%) (+3.8%) (-2.2%) (-13.9%)Previous Year



What can be said about Canadian Apparel Manufacturers?

• The number of manufacturers and their sales have

decreased by 35% - 45% over the past ten years

• Have changed from manufacturers to suppliers

• Are focusing increasingly on exporting with mixed

success

• Have become more marketing oriented

• Are totally dependent on the U.S. market, as they have

been unable to develop consistent sales in other

markets



$917 $1,005 $1,001

$1,103 $1,245 $1,249

$1,104$1,447

$1,764$2,004

$954

$1,175

$2,208$1,982 $1,651

$1,305

2005 2006 2007 2008 2009 2010 2011 2012

Total Exports

United StatesExports

U.S. Share (89%) (88%)(91%) (85%)

TOTAL CANADIAN APPAREL EXPORTS($ Millions)


(83%) (81%) (80%) (80%)



Canadian Apparel SuppliersLargest Canadian Apparel Suppliers

2012Company Products Channel Country

Gildan Underwear Discount U.S./Canada

Peerless Men’s Suits/sportcoats

Department U.S.

Nygard Women’s coordinates Dept/Spec/Disc Canada/U.S.

Levi Strauss Canada Jeans/casual pants Dept/Spec/Disc Canada

Point Zero Sportswear Dept/Disc U.S.

Roots Sportwear/activewear Dept/Spec Canada/U.S.

Hanesbrand Canada Lingerie/underwear Dept/Spec/Disc Canada

Warnaco Canada Jeans/lingerie Dept/Spec/Disc Canada

Fruit of the Loom Canada

Lingerie/underwear Discount Canada

Canadian Goose Outerwear Dept/Spec Canada/Developed Countries

Western Glove Jeans/outerwear Dept/Spec Canada/U.S.

Stanfield Underwear Dept/Disc Canada/U.S.


Merchandise Category Example

Fur coats Many small suppliers

Winter outerwear Canadian Goose

Mid priced suits and sport coats Peerless

Mid and better priced dress slacks Ballin

Women’s mid priced coordinates Nygard

Women’s mid/better priced women’s lingerie

Adorable/Arianne

Women’s tights/pantyhose Doris Hosiery

Men’s underwear Stanfield

Canadian Domestic Apparel Manufacturing Base



314

35

115

UnitedStates

Canada Mexico

$15.7

$1.4 $1.8

UnitedStates

Canada Mexico

NAFTA MARKET OVERVIEW2012

Population (Millions) GDP (U.S$Trillions)

Nafta Overview


$203,740

$27,420 $23,700

UnitedStates

Canada Mexico

NAFTA Overview

Total Retail Apparel Market2012 (US$ Millions)


TOTAL APPAREL MARKET 2012 Dollar Sales

29.5%

20.7%

21.8%

3.8%

24.2%

17.5%

21.8%

53.8%

6.9%5.6%

30.1%

28.7%

10.7%1.7%

28.8%

United States Canada Mexico

Discount Stores

Sporting Goods Stores

Department Stores

Apparel Specialty Stores

All Other Outlets

NAFTA Overview


CANADIAN RETAIL CHANNEL DEFINITIONS

DepartmentStores

DiscountStores

Better ClothingChains

Other Clothing Chains

Other NotableStores

Sears

The Bay

Walmart

Aubiererie

Superstore

Target

Winners

Giant Tiger

Croteau

Holt Renfrew

Harry Rosen

Femme de Carrier

H&M

Mark’s

Laura

Northern Reflections

Reitman’s

Simons

Zara

Costco

Sport Chek/Experts

*Store Only

NAFTA Overview


MásJoven

MásViejoEdad Media

Ingreso Familiar

MERCADO TOTAL MEXICANO DEROPA PARA DAMAS

2012Posicionamiento del Detallista

Bajo

Alto

Medio

Wal-Mart

Bershka

C&A

Liverpool

Suburbia

Sears

Coppel

Palacio de Hierro

Zara

Media

The Bay

Soriana

Comercial Mexicana

Bodega Aurrerá

Avon

Andrea

Ilusion

Price Shoes

Vicky FormMartí

Sears Canadá


TOTAL APPAREL MARKET 2012 Dollar Sales

Largest Retailers

NAFTA Overview

Canada

Walmart 10.1%

Sears 9.5%

The Bay 8.1%

Mark’s 5.8%

Winners 4.3%

Reitmans 3.8%

Old Navy 3.6%

H&M 3.3%

Gap 3.1%

Moores 2.5%

United States

Walmart 8.0%

J.C. Penney 7.6%

Target 5.9%

Kohl’s 3.0%

Sears 2.8%

Macy’s 2.7%

T.J. Maxx 2.5%

Kmart 1.8%

Nordstrom 1.7%

The Gap 1.3%

Mexico

Suburbia 10.6%

Coppel 5.7%

Liverpool 5.6%

Walmart 4.8%

Zara 3.2%

Sears 3.0%

Bodega Aurrera 2.7%

Soriana 1.4%

C&A 1.3%


How is Canadian apparel retailing different from American apparel retailing?

Compared to the United States, Canda:

• Has sales disproportionately smaller at the better end

of the market

• Has fewer channels of distribution

• Has a higher degree of retail concentration

• Has more promotional activity

• Has a higher percentage of independent apparel

retailers (especially in Quebec)

NAFTA Overview

Colombian Presentation

$15,232

$8,700

$1,503 $1,321 $666

TotalMarket

Women Men Girls Boys Infants

CANADIAN TOTAL APPAREL MARKET2012 Estimated Canadian Retail Dollar Sales

(C$Millions)$27,422

Canadian Retail Apparel Market

28


TOTAL CANADIAN APPAREL MARKET Retail Dollar Sales

January - December

18.0%

50.6%

23.1%

2.7%5.6%

17.9%

51.2%

22.4%

2.9%5.6%

17.7%

52.7%

22.1%

3.2%4.3%

17.5%

53.8%

21.8%

3.6%3.3%

2009 2010 2011 2012

Discount Stores


Department Stores


All Other Outlets



Total

Men

Women

Juvenile

Department Stores

17.5%

18.0%

18.5%

13.8%

Discount Stores

21.8%

18.7%

19.0%

40.4%

Apparel Specialty Chains

48.1%

47.8%

50.4%

31.7%

Independent Specialty Stores

5.7%

4.3%

6.0%

4.1%

Sporting Goods/Pro Shops

3.6%

5.1%

2.2%

3.0%

All Other Outlets

3.5%

6.1%

3.9%

6.2%

Total

100%

100%

100%

100%

Canadian Apparel Market2012 Retail Dollar Share



TOTAL CANADIAN APPAREL MARKETJanuary - December 2012

Retail Dollar Sales

Retail ConcentrationRetail Concentration Largest Ten RetailersLargest Ten Retailers

Top Ten Retailers All Other

Retailers

WalmartSears (Total)The BayMark’sWinnersReitman’sOld NavyH&MGapMoores

46%54%

10.1%9.5%8.1%5.8%4.3%3.8%3.6%3.3%3.1%2.5%



Men

Women

Juvenile

Mark’s

Sears

Walmart

Sears

Walmart

Zellers

The Bay

The Bay

Sears

Walmart

Winners

Children’s Place

Moores

Reitmans

Winners

Zellers

H&M

Old Navy

Winners

La Senza

Superstore

Canada’s Largest Apparel Retailers 2012 Retail Sales



Young Older

IncomeCANADIAN WOMEN’S APPAREL MARKET

2012

Low

Average

Average

High

WinnersThe Gap

Old Navy

H&M

Walmart

Sears

Superstore

Mark’s

The Bay

Age

Penningtons

Aeropostale

Independent Retailers

Holt Renfrew

Reitmans

CostcoBanana Republic

Laura

Le Chateau

Garage

Dynamite


Mexx


Young Older

IncomeCANADIAN MEN’S APPAREL MARKET

2012

Low

Average

Average

High

WinnersThe Gap

Old Navy

Sport Chek

Walmart

Sears Retail

Superstore

Mark’s

The Bay

Age

Costco

American Eagle

Harry RosenHolt Renfrew

Moores

Zellers

Tip TopBanana Republic

Eddie Bauer

Le Chateau



Retailer

StoresMark’sReitmansLe ChateauSuzy ShierLa Senza*Northern Reflection*PenningtonsSmart SetGarageRickis*StichesLa Vie En RoseMoores*Addition ElleJacobTip TopMexx*

3843622411901851601521501471421361281181161029991


Largest Apparel Specialty Chains2012 Stores

*Foreign Owned


Men

Women

Juvenile

Unisex

Mark’s 384Moores 119Tip Top 99Randy River 39International Clothiers 32Jack & Jones 31Ernest 27George Richards 23Mr. Big & Tall 19

Reitman’s 362Suzy Shier 190La Senza 185Northern Reflections 160Penningtons 152Smart Set 150Garage 147Rickis 142La Vie En Rose 128

Children’s Place 85Gymboree 39Bonnie Togs 37Clement 30Carters/Osh Kosh 28Souris Mini 28OK Kids 24Siblings 23

Le Chateau 241Stiches 136Bluenotes 125Warehouse One 113Bootlegger 93Mexx 91Danier Leather 89Urban Planet 88


Largest Apparel Specialty Chains2012 Stores


% of Dollar Sales

Merchandise Category 2008 2009 2010 2011 2012

Men's Outerwear 12.2% 12.9% 14.3% 14.4% 13.9%

Men's Suits, Sport Coats 9.2% 8.9% 8.6% 9.4% 9.2%

Men's Pants and Tops 55.3% 54.4% 53.3% 52.8% 54.3%

Men's Underwear, Sleepwear & Socks 8.3% 8.3% 8.1% 7.2% 7.5%

Other Men's Clothing 5.7% 5.9% 6.1% 5.8% 5.6%

Men's Accessories 9.3% 9.6% 9.6% 10.4% 9.5%

100% 100% 100% 100% 100%



Canadian Men’s Apparel SalesRetail Dollar Sales


% of Dollar Sales

Merchandise Category 2008 2009 2010 2011 2012

Women's Outerwear 10.5% 8.8% 9.1% 10.3% 10.5%

Women's Dresses & Suits 7.5% 8.1% 7.6% 7.3% 7.6%

Women's Skirts, Pants & Tops 56.8% 57.5% 57.2% 57.0% 55.2%

Women's Hosiery 2.8% 2.7% 2.5% 2.5% 2.5%

Women's Lingerie 10.9% 11.1% 11.2% 10.4% 9.9%

Other Women's Clothing 3.3% 3.7% 4.3% 4.5% 5.1%

Women's Accessories 8.2% 8.1% 8.1% 8.0% 9.2%

100% 100% 100% 100% 100%



Canadian Women’s Apparel SalesRetail Dollar Sales


Canadian Apparel Retailer Profile

Department StoreSales (2011) C$4.3 Billion

Stores 118 Department Stores48 Sears Home Stores269 Sears Dealer Stores11 Outlet Stores

Headquartered Tornoto, Ontario (416) 362-1711www.sears.ca

Strengths Women’s Intimate Apparel, Women’s Plus and Petite sizes, Men’s Workwear, Private Label brands

National Brand/Private Label Apparel Ratio

45%/55%

Private Labels Nevada, Jessica, Arnold Palmer, Kenise, Mac & Jac, Protocol

Possibility of Sourcing from Colombia

30% - 40%

Sears Canada



Department StoreSales (2011) C$3.2 Billion

Stores 90

Headquartered Toronto, Ontario(905) 792-4400www.hbc.com

Strengths Men’s SuitsBrand SelectionPrivate LabelsJoint Venture with Top Shop/Top Man


90%/10%

Private Labels Hudson North, Black & Brown, Hudson Bay Signature


20% - 25%

The Bay

http://www.hbc.com/



Discount StoreSales (2011) U.S.$22.4 Billion

Stores 209 Walmart Supercenters170 Walmart Stores

Headquartered Toronto, Ontario(905) 821-2111www.walmartcanada.ca

Strengths Apparel basicsChildrenswearLow price perception


10%/90%

Private Labels George, g21, Athletic Works


10% - 15%

Walmart Canada

http://www.walmartcanada.ca/



Apparel Specialty Store Reitman’s CanadaMontreal Quebecwww.reitmans.caSales (2012) C$1.1 BillionStores Total 959 Stores

Stores Banner Type

363 Reitman’s Women’s

167 Pennington’s Women’s Plus Size

163 Addition Elle Women’s Plus Size

68 RW & Co. Unisex

152 Smart Set Younger Women

76 Thyme Maternity

National Brand/Private Label Ratio

0%/100%


5% - 10%

http://www.reitmans.ca/



Apparel Specialty StoreSales (2011) C$1.02 Billion

Stores 386

Headquartered Calgary, Alberta(403) 255-9220www.marks.com

Strengths Men’s Causalwear, Men’s Workwear, Scrubs/healthcare apparel, Work/safety footwear, Product Innovation


10%/90%

Private Labels Denver Hays, Wind River, Clothes That Work, Dakota, Mountain Gear, Work Pro


15% - 20%

Mark’s

http://www.marks.com/



Apparel Specialty StoreSales (2011) C$750 Million

Stores 8

Headquartered Quebec City, Quebec(418) 692-3630www.simons.ca

Strengths Casual WearPrivate label18 – 29 year old segment


10%/90%

Private Labels Simons, Contemporaine, Guepiere, Le31, Lingerie twik


10% - 15%

Simons

http://www.simons.ca/




Stores La Vie En Rose 91La Vie En Rose Aqua 23La Vie En Rose Outlets 40

Headquartered Montreal, Quebec(514) 256-9446www.lavieenrose.com

Strengths Private Label LingerieSwimwear


5%/95%

Private Labels La Vie En Rose


20% - 25%

La Vie En Rose

http://www.lavieenrose.com/




Stores 52

Headquartered Ste-Julie Quebec(450) 449-1310www.bikinivillage.com

Strengths Swimwear (largest swimwear specialty chain), Beachwear


85%/15%

Private Labels Bikini Lounge


10% - 15%

Groupe Bikini Village Inc

http://www.bikinivillage.com/



Sporting Goods StoreSales (2011) C$1.55 Billion

Stores Total 534Athlete’s World 48Atmosphere 62Sport Chek 165Sport Mart 41

Sports Experts 71The Tech Shop 3National Sports 18Intersports 47

Head-quartered

Calgary, Alberta(403) 717-1400

www.fglsports.com

Strengths Number of Stores Largest seller of sports apparel


85%/15%

Private Labels

Firefly


10% - 15%

FGL Sports Ltd.

http://www.fglsports.com/


Canadian Apparel Retailer EnvironmentCompared to the U.S. apparel retailers Canadian apparel retailers:

• Have chains with a fewer number of stores

• Are less dependent on their POS data for

decision making purposes

• Have not been able to build their private labels

into true private label brands

• Are not leveraging social media for marketing

• Have either no loyalty programs or the ones

they have do not effect a consumers shopping

behavior

• Charge higher prices/have greater margins


Canadian Apparel Retailer Environment

Why are prices higher in Canada than U.S.?

• Protectionist policies between Canada and other

countries and between Provinces

• Less advantageous economies of scale

• Higher transportation costs

• Bilingual packaging requirements

• Higher mall rents

• Higher labor costs for retail workers

• Less competition


Trend’s in Canadian Apparel Retailing

• Increasing presence of international retailers


American European

Trends in Canadian Apparel Retailing

Abercrombie & Fitch

Aeropostale

American Apparel

American Eagle

Ann Taylor

Anthropoligie

Banana Republic

BCBG MaxAzria

Bebe

Brooks Brothers

Carters

Children’s Place

David’s Bridal Shop

Eileen Fisher

Forever 21

Oakely

Old Navy

Pink

Talbots

The Gap

Tommy Bahama

Tommy Hilfiger

Tory Burch

True Religion

Urban Behavior

Urban Outfitters

Victoria Secret

7 For All Mankind

Benetton

Escada

H&M

Jack & Jones

Lacoste

Mango

Olsen Europe

Scotch & Soda

Steilmann

Top Shop

Zara

A. Increasing Presence of International Retailers

Gymboree

Hollister

Hot Topic

J.Crew

Jones New York

Juicy Couture

Justice

La Senza

Lucky Brand Jeans

Maurices

Mexx

Michael Kors

Moores

Motherhood

51


U.S. Retailers in Canada

52

2013 2014



• Declining share of department stores and independent specialty retailers

• Increasing share of private label apparel brands



Private Label Growth



43.6%47.8% 47.4% 45.2% 44.1%

56.4%55.9%54.8%52.6%52.2%

2008 2009 2010 2011 2012

Canadian Total Retail Apparel Market

Dollar Share

Private Labels

National Brands

Canadian Retail Apparel Market2012 Dollars

Private Label’s Market Share

47.3%66.2%

49.5%

Men Women Juvenile

55

Increasing Share of Private Label Brands





• Increasing share of private label apparels• Emergence of new apparel sectors



2009 2013(E)

23% 21%

2% 5%

67% 60%

2% 6%6% 8%

Mass

Middle

LuxuryApparel Segment

Canadian Apparel MarketDistribution of Retail Sales

57

Better

Fast Fashion

Source: Trendex






• “Fast Fashion” effecting all facets of the market




Growing Importance of Fast Fashion


Retailers Total Atlantic Quebec Ontario PrariesBritish

Columbia

Forever 21 25 - 5 12 4 4

H&M 61 2 14 30 8 5

Zara 19 - 7 7 3 2

Fast Fashion/Supply Chain

Canadian Fast Fashion Retailers



$424$383 $364

$298$247

2012 2011 2010 2009 2008

H&M Canada Total Revenue C$ (Millions)

Total Sales +10.0% +5.2% +19.6% +20.3% +22.4%Stores 61 58 55 52 43Sales Per Store $6,956 $6,488 $6,494 $5,737 $5,766 (000)






• “Fast Fashion” effecting all facets of the market

• Small but increasing share for internet retailing



$1.1

Canada U.S.

$0.37

Canada U.S.

$34.2

$7.8

E-Commerce Sales of Apparel/Accessories

2011 US$ Billions

E-Commerce Sales of Footwear

2011 US$ Billions

63



Canadian Consumer Apparel BehaviorWhat can be said about a Canadian consumers apaprel purchasing behavior:

• Price Sensitive

• Driven by promotional activity

• Looks for value

• Not loyal to any retailer

• Cross channel shopper

• Is not concerned with the country of origin

• Shops in the U.S., affected increasingly by U.S.

apparel trends/media


Canadian Market Entry Plan

Phases

I. Research the market / Identify a niche


Identify a possible niche in terms of

• Products

• Price Points

• Styling

• Fabrications

• Retail Channels / Retailers



142

$1,500

Units Dollars

Estimated Sales (Millions)

27.2%

28.2%

39.7%

4.9%

Retailer Stores

Walmart 379

Sears 118

La Senza 159

La Vie En Rose

91

The Bay 90

Penningtons 167

Addition Elle 163

Jacob 123

Lilliane Lingerie

32

Costco 82

Dept Stores

Discount Stores


All Others

Canadian Women’s Lingerie Market2012 Largest Retailers

Channels



26,600

$990,100

Units Dollars

Estimated Sales (000)

13.8%

20.4%

62.4%

3.4%

Retailer Stores

Walmart 379

Sears 118

Mark’s 386

The Bay 90

Penningtons 167

Reitman’s 361

Winners 222

Old Navy 65

Bootlegger 95

Garage 147

Dept Stores

Discount Stores

Apparel Specialty StoresAll Others

Women’s Jean Market2012 Largest Retailers

Channels



20 62

Average Age

Average Price

CANADIAN WOMEN'S JEANS MARKETJanuary - December 2012

Retailer Positioning

Low

Average

41

Sears Retail

The Bay

Wal-Mart

Winners

Mark's

NorthernReflections

Old Navy

AmericanEagle

Bluenotes

Stitches

Bootlegger

The Gap

Levi 1850Holt Renfrew

Costco

Mexx

Le Chateau

High

Garage

Dynamite

Pennington’s


22,930

$696,260

Units Dollars


15.4%

29.9%

50.0%

4.7%

Retailer Stores

Walmart 379

Sears 118

Mark’s 386

The Bay 90

American Eagle

94

Winners 222

Old Navy 65

Costco 82

Bluenotes 125

Bootlegger 95

Dept Stores

Discount Stores


Men’s Jean Market2012 Largest Retailers

Channels



19 59Average Age

Average Price

CANADIAN MEN'S JEANS MARKETJanuary - December 2012

Retailer Positioning

Low

Average

39

Sears Retail

Sears Catalog

The Bay

Wal-Mart

Harry Rosen

WinnersMark's

Bluenotes

Bootlegger

The Gap

Levi 1850

Costco

Old Navy

Levi's Only Stores

Stitches

AmericanEagle

High Holt Renfrew


1050

$33,000

Units Dollars


14.0%

18.3%

30.0%

28.2%

9.5%

Retailer Stores

Forzani Group 480

Sears 118

Walmart 379

Winners 222

The Bay 90

Mark’s 386

Mountain Co-op

14

Roots 115

American Eagle

80

Old Navy 65

Costco 82

Dept Stores

Discount Stores


All Others

Men’s Swimsuit Market2012 Largest Retailers

Channels




1,980

$222

Units Dollars


25.6%

15.9%

43.5%

15.0%

Retailer Stores

Sears 118

Bikini Village 52

Walmart 379

The Bay 90

Forzani Group 480

Penningtons 167

La Vie En Rose Aqua

23

Roots 115

Costco 82

Winners 222

Dept Stores

Discount Stores


Women’s Swimsuit Market2012 Largest Retailers

Channels



53,185

$248,380

Units Dollars


21.6%

46.8%

26.3%

5.3%

Retailer Stores

Walmart 379

Sears 118

Mark’s 386

The Bay 90

Costco 82

Winners 222

Giant Tiger 205

Simons 8

Real Canadian Superstore

111

Dept Stores

Discount Stores


Men’s Underwear Market2012 Largest Retailers

Channels




Phases

I. Research the market / Identify a niche

II. Develop a USP



FACT

Critical to success in the Canadian apparel market is identifying your company’s USP and developing a Canadian marketing plan

Phase II – Develop a USP


What is the need that we satisfy? What is our Raison d’être?

What is our core competence? What are we really good at?

Developing a Unique Selling Proposition (USP)

What can we legitimately claim to be better at than anyone else?



Colombia’s Possible Strategic Advantages as An Apparel Supplier to Canada:

• Proximity/speed to market (Just In Time Delivery)

• Flexible quantities/small runs

• Free Trade Agreement with Canada

• Reputation for denim and fashion men’s

underwear manufacturing and needlework

capabilities

• Experience in dealing with U.S. apparel retailers

If your company cannot legitimately claim one or more of these strategic advantages…




Save your Money and

Stay HomeHowever, if your company has demonstrated a competitive advantage(s) in the U.S. apparel market it will almost certainly have the same advantage(s) in the Canadian market.


Dealing with Canadian ProspectsIf a Branded Manufacturer

• Offer exclusivity• Offer marketing support money• Offer to warehouse product in Canada

If a Private Label Manufacturer• Always quote in U.S. dollars• Emphasize small quantities/speed to

market/flexibility


In either case small minimums and speed to market will be seen as a competitive advantage

Attendance at Canadian Trade Shows is not necessarily a must


Top Canadian Prospects for Colombian Apparel Manufacturers

(Excludes Foreign Retailers)Product Area Top Second Third

Men’s Jeans Mark’s The Bay Sears

Women’s Jeans Mark’s Ricki’s Bootlegger

Women’s Swimwear Bikini Village La Vie En Rose

Reitmans Corp

Men’s Swimwear Bikini Village Forzani Mountain Coop

Lingerie La Vie En Rose

Lilliane Jacob

Men’s Underwear Holt Renfrew Simons Priape

Women’s Casualwear

Mark’s Reitmans Corp

Northern Reflections

Men’s Casualwear Mark’s Sears The Bay



Options for a Colombian Apparel Manufacturer in Canada

• Supplier for Canadian retailers direct import programs

• Subcontractor for Canadian apparel manufacturers

• Agent/distributor for Canadian apparel suppliers in

South America

Bottom Line: Think Outside the “Box”



Bottom Line

The Canada – Colombia Free Trade Agreement

Offers Colombian Apparel Manufacturers a unique opportunity to increase its exports.

The Colombian government has done its part, it’s now up to Colombian apparel

manufacturers to take advantage of this new opportunity.


THANK YOUQuestions about Canada or Mexico:

Randy Harris,President Trendex North America

[email protected]

mailto:[email protected]

Documents

Colombian Presentation The Canadian Apparel Market A Guide for Potential Colombian Apparel Exporters Prepared By 1