About a year and a half ago I created a group on LinkedIn called “Global Apparel & Textiles Sourcing” to build a community of sourcing people worldwide on both the Buy and the Supply sides. Over this past weekend the group crossed the 5000 member mark and is now the second largest apparel sourcing group on LinkedIn and closing in on #1.
I was speaking with a garment factory today who is considering being one of the Suppliers in the MFG.com manufacturing marketplace. He said to me that he wanted to know “what could he do if it didn’t work out”. I thought about this for a moment and explained to this Supplier that it is not possible that things “don’t work out” because the purpose of the membership at MFG.com is to provide a Supplier access to the marketplace and drive quality and relevant leads to the Supplier from several sides. It always works out. MFG.com consistently tees up opportunity for Buyers and Suppliers to connect when they need each other most.
Here is what an MFG.com membership provides every Supplier:
If you are a Supplier, think about those four points – what more could any job shop, factory, agent, or other form of Supplier ask for in terms of teeing up the ideal conditions to be found, noticed, and have an ability to take immediate action on the business that most suits its current needs.
MFG.com provides the platform and the Suppliers take action on the business leads they want the most. It’s similar to a trade show only far more economical, far more targeted, and lasts a whole year instead of only a few days.
Calculate the daily expense of a trade show vs. the daily to be one of the exclusive Suppliers on MFG.com and you’ll understand perfectly.
Visit http://www.mfg.com/textiles to plug into the marketplace.
Let’s get right to it. You’re a Supplier of some sort of a Textile product – garments, fabrics, technical textiles, home textiles – doesn’t matter. If you are a Supplier let’s say you fall into one of two camps; a.) A Supplier is who completely booked full for the next 6-9 months and will be again thereafter, or b.) A Supplier that is looking for new business to keep the machines humming.
If you’re that first Supplier, that’s great, keep it up. But if you’re that second kind of Supplier (the one looking for new customers and PO’s, then you have an array of ways to get new leads – and that’s what I want to look at here and now.
How do you get a new client and what does it cost to do it?
Trade show: This lasts anywhere from 3-5 days and costs you in the zone of $5000 to $20,000 and up depending on the show. You have to consider the floor cost, the travel costs, the hotel costs, meals, staff (1or 2 people min), time away from the office – and usually you have to lug your samples to a show. Think about this math – at even only $6000 for a 3 day show that’s $2000 per day – and there is no guarantee you get the business.
Business trip: You could get on a plane and fly from your factory to some city (say Los Angeles or NewYork) to meet with 5-10 clients in a week. This will run you a minimum of $10,000 if you’re 5000 miles away and the there is no guarantee you get the business. If you spend $10,000 for a 5 day business trip this is $2000 per day. If you’re “in-country” already this is still a one-at-a-time effort and costly.
Sales Rep: you could hire a sales rep for $50,000 to $100,000 or more per year to drive new customer leads – this is expensive and is not a 24/7 lead generator.
Then there is the company I work for, MFG.com. Consider the following:
You’re a Supplier anywhere in the world. You set yourself up with an MFG.com Supplier Website. This is essentially a factory profile that is a single page and contains all the details any Buyer would immediately want to know about you. This one-page site is not only available inside the MFG.com marketplace for any relevant Buyer to review, it is also available outside the MFG.com marketplace because this Supplier Website is Search Engine Optimized (SEO). This is a big deal and on it’s own companies that do only this would charge you a small fortune to get your own site ranked high on major search engines. MFG.com gives it to you as a part of the marketplace membership.
Then what? You then set up a short series of saved search filters on your MFG.com account so that you see only the sort of production requests you care about. MFG.com received tens of thousands of RFQs (requests for quotes) into the marketplace each year and your saved search filter delivers right into your hands only those sort of production runs that you say you want to know about.
Stop and think about that for a moment….. you’re going about your day and as the right types of production run requests flow into the marketplace you know about it in real time. It’s in your hand.
What do you do? You run with it – you quote on the business you want, you call the Buyer and introduce yourself – you work the account you didn’t even know about only yesterday.
What else? Intellience on leads. Wouldn’t it be nice if you knew exactly who looked at your website, or you phone book listing, or whatever register you might be listed in? Sure it would. MFG.com delivers this. When someone looks at your MFG.com Website (Supplier profile page), MFG.com tells you exactly who it is.
Question – What would you do if you knew the full contact info of the last 30 people that simply reviewed your profile?
Answer – You might call them back and say “hello, how can we help you?” – that’s what you’d do. You work the account that you didn’t even know about only yesterday.
The point is, MFG.com delivers to you a regular stream of leads that make sense for you each day/week/month as they happen. Leads find you. Leads find you in the form of profile views, phone calls, emails, and actual RFQs for real work from real buyers, really sourcing right now – all for a few bucks a day (instead of a few thousand $$$ a day at a trade show).
Think about this – You use email to communicate. You use bill pay to pay bills. You use the web to consume news. You use a smart phone to work on the go. Think about now using a web-based sourcing platform to get new production leads – harness this power and free yourself up to focus on making things instead of looking for leads.
When a Buyer is looking for a Supplier they’re no longer pulling out a book – they’re going the Google and they’re not finding you. They are finding the Suppliers on MFG.com – so start using the at-your-fingertips technology that MFG.com sets in your lap and start selecting your leads instead of looking for them.
Check out http://www.mfg.com/textiles and get plugged in.
posted by tony forcucci
Bangladesh apparel exports have hit a record up 41% for 2010/2011 to $.4.4 billion supported in large part by exports to CHINA - Yes China, the same country that is trying to figure out way to pump up their own apparel manufacturing base.
Other regional countries to be on the look out for more growth include:
Vietnam
Cambodia
Thailand
Malaysia
Indonesia
posted by tony forcucci
We just crossed 3000 members on LinkedIn.com for the Apparel and Textiles Sourcing Group over the 4th of July weekend. This group has remained private (not open to public/google) on purpose and is filled with top quality Buyers & Suppliers worldwide. Nice to be part of such a high caliber group of those in the business.
The best Apparel Sourcing Show in America is in NYC next month. See you there. Here’s the link for access : http://www.apparelsourcingshow.com/ABU1
For two to three decades apparel brands have been seeking production sources in China. China is still no doubt a net net heavy exporter of finished apparel but this is changing. If you have a long term, established relationship with a supplier in China it is likely that you’re in great shape because you’ve got what so many seek – a reliable and trusted production source.
But two things are happening – 1. some production is starting to work its way from China to other Asian countries namely Vietnam, Cambodia, Indonesia, and over into Bangladesh, and 2. there is a resurgence of sorts for “made in America” because the cost differential is no longer as daunting as it once was.
There are a few key reasons for this:
1. Time. Some brands and buyers do not want to wait 90 to 120 days to get their goods from China. It takes typically 30 days for materials, 30 days for cut & sew, 30 days on a boat, and then 2 to 2 weeks in customs.
2. Price. China labor rates and overall costs of production are rising.
These two factors mean that for some brands/buyers is makes more sense to produce closer to home. Another advantage of producing in America is an easier go at quality control. A 2 to 3 hour plan ride to inspect production is doable vs. a long haul flight and a week in Asia. Bloomberg had a story on this very subject just yesterday.
It will be interesting to see who this will affect a general resurgence and those factories that are still in America in poised to take advantage of this trend and expand. If you are an American based Apparel facility and want to secure more production business, visit MFG.com and get access to a world of Buyers sourcing right now.
posted by tony forcucci
The Global Apparel and Textiles Sourcing group, a private group of Sourcing pros worldwide, just cross 2000 members over the weekend. Solid.
The Apparel and Textiles Sourcing division of MFG.com and Messe Frankfurt USA have agreed to get together to unite the worlds of online and offline sourcing. In the picture here are David Audrain from Messe Frankfurt USA and Tony Forcucci from MFG.com mugging for the camera moments after signing the alliance agreement. You can see the full press release here.
Visit the Apparel Sourcing platform of MFG.com Open for sourcing 24/7/365
Visit the Messe Frankfurt USA shows:
Texworld USA, July 19 – 21, 2011 (New York City)
Home Textiles Sourcing Expo, July 19 – 21, 2011 (New York City)
International Apparel Sourcing Show, July 19 – 21, 2011 (New York City)
Why would a Buyer source in Asia versus Europe or Latin America or vice versa? There are reasons why some production goes to one part of the world instead of another.
China has been on the receiving end of orders from both Europe and North America for years and years. Europe has been going to Turkey as it’s local offshore Supplier and the Americans have been going to Mexico and Latin America as their local offshore Supplier. But there are also big shifts going on all over the world.
Order Size and the rise of the non-China Asia:
The bigger orders in terms of volume and low price continue to go to Asia but more and more the most competitive quotes are coming from Suppliers in places such as VietNam, Cambodia, Malaysia, Indonesia, and Bangladesh. China still exports a huge volume no doubt, and the numbers bear this out – but the numbers also show that China is not as “cheap” as it used to be and now Buyers are looking to get even more competitive by moving production into other nearby countries. The Chinese are even opening up factories in places like Vietnam to keep the business pipeline in hand.
Countries such as Turkey and those in Latin America are perfect for sourcing those mid-size production orders where the Buyer is willing to pay a little bit more per piece in exchange for the fact that the orders are not massive or the fact that the source country is closer perhaps to the Buyer thereby shortening the time to market and delivery expense.
That’s all is before we take into account country agreements, quotas, and overall sourcing trends such as the “re-shoring” that we see going on in the USA. Additionally Buyers are not looking to increase the number of Suppliers they have but rather to consolidate their Suppliers into a more manageable network of production.
Bringing production home in the USA
The whole reason Brands and Buyers went overseas for production was to lower the price. The customers were demanding lower prices and so the brands had to produce for lower costs. There has been a shift in the mindset of some consumers in this area as well. We’re seeing this in the USA in some cases where the consumer is mindful of the fact that it will cost more to produce “Made in America”. Not in all cases but consumers today are more in-tune with geo-politics than ever and have stronger opinions about where their products are made. Brands would love to produce closer to home and I suspect we’ll see more production in the USA as consumers consume less but consume higher value goods. That’s sets a good condition for domestic production to happen more and more.
It’s the same for Europe
Turkey is the big destination but Buyers in Europe today are more and more sourcing in Poland, Romania, Hungary, and other areas of Eastern Europe. These countries are on the move, reasonably affordable, reasonably close (certain closer than Asia), and still young enough to be able to offer solutions to European buyers that they might not be able to get by going farther away for production.
Buyers demand more service:
Apparel production is serious business and both Buyers and Suppliers want to develop relationships with the other that can last, that can provide profitable business for both, and that are flexible and adaptive when needed. A clear trend (which is moving beyond trend and into mainstay) is more Buyers asking their factories to provide design and concepting services therby putting a portion of the creativity of the lines in the hands of the Supplier. Those factories that can provide value-added services such as presenting new washes, new treatments, and new design ideas will win the favor of their clientele – one stop shopping for production as it were.
Quick turn-around:
Buyers are also needing quicker turnarounds in production and lower production volumes at each time around. There is today too much risk at times in ordering tens of thousands of units only to hold the units in a warehouse. Better in some case to order 4 times at 1/4th the quantity each time perhaps to mitigate the risk. Sourcing volume picks up but risks go down.
Compliance issues:
Another big area is compliance. Buyers are not only demanding compliance in terms of quality of production standards but also in social areas. Inspection services have seemingly popped up worldwide and organizations such as WRAP can offer virtual blanket comfort that your factory is socially compliant. Some bigger brands simply will not even do business with a factory unless the factory can demonstrate that it is socially compliant. If you’re a factory and you’re not covered in this area you’re denying yourself new business.
Net-net
The world of sourcing is shifting into a new area in part due to global economic issues and the fluid needs of the buyers. Preferred countries change, reasons for going to one place instead of another change, consumer sentiment and demands change. Commodity prices have gone through the roof. There is a list of things to keep up with as long as your arm. The one constant in the whole world of sourcing is the need for Buyers and Suppliers to be able to efficiently collaborate with each other. For that you can use MFG.com which operates a global marketplace that allows Buyers to source production wherever they like and allows Suppliers to connect to fresh customer leads and grow their production base in a time where it can be difficult to find that next piece of production business.
posted by tony forcucci
>>> Oley – I love the name but what exactly is WeConnectFashion and who in the big world of fashion are you connecting to whom?
Thanks Tony, we love the WeConnectFashion name too. Good question.
We connect buyers and sellers of finished fashion merchandise with each other and with industry service providers. Specifically apparel and accessories brands, retailers, wholesalers, and industry service providers.
That’s the “whom” we connect. We also connect the industry with marketplace intelligence. Helping fashion companies succeed with business networking, market research & fashion industry know-how, is the bigger view of what we do.
WeConnectFashion launched online in 1998 with a fashion industry database to help apparel, textile, and accessories businesses find and promote themselves to each other. We offered advice on how the industry works, along with info about the fashion marketplace, such as trade show venues, trends, and statistical research for companies to assess opportunities in the market, all of which we still do.
Over the years, we found that the industry relies on us for the stuff I desperately needed as a “Young Designer,” which is how I got my start in the fashion industry. Sales & marketing help is the biggie, one that WeConnectFashion works hard to excel at daily.
Here’s how: WeConnectFashion aligns clients with the “right” buyer contacts and sales reps candidates for their products. We also offer ways for fashion companies to promote themselves with continual presence in front of relevant buyers year-round without breaking the bank. We provide suggestions on what trade shows to participate in, with connect tools that help to guarantee ROI for exhibitors. Our how-to guides cover topics like how to get press, with contact lists of editors and bloggers. Other issues: where can I sell my excess inventory? What’s the deal with factors and who are they? You get the picture!
From what we hear from our Retail visitors, they have similar sales and marketing pains, only they are looking to source products and services that offer competitive advantage. For merchandising: finding the right brands, relevant marketplace events and services, like forecasting companies to stay on-trend, or bags/wrap that offer a point of distinction, to fixturing basics like hangers. They too are looking for more efficient, cost-effective ways to have a perpetual eye on the marketplace.
Product development requests are another hot topic. “Help, I need….”, handbag closures, a low minimum fabric supplier, ribbon, buttons, a factory, fill-in-the-blank… We help our clients find finished component parts suppliers. We also connect them with companies that offer services, like MFG.com to get their lines sampled and produced.
It’s remarkable how many retailers and brands ask us seemingly industry 101 questions. The reality is we all start in the fashion industry someplace and need connections as well as advice, wether we are new to the industry or old-timers looking to break into a new market or distribution channel.
>>> If only one thing, what is the one thing you want the world to know about WCF?
WeConnectFashion is a fashion industry marketing and sourcing network for retailers, brands, wholesalers, and service providers.
If your business buys or sells finished fashion merchandise or provides marketplace services to those that do, WeConnectFashion is the place to connect with trade partners and to access information related to succeeding in the fashion industry.
>>> Where are you based?
Our headquarters is in NJ. We have an office in New York. However, our team works remotely, which makes for a dynamic environment, where everyone is relaxed enough to be wildly productive.
>>> What kind of reach does WCF have globally. How many people are using WCF?
Last month WeConnectFashion had 68,000 visitors that came from 160+ countries. Our global traffic is up 24% this month from last month. The top 15 countries/territories where our visitors come from, in descending order, are: USA, UK, Canada, India, Australia, Italy, France, Germany, Mexico, China, Philippines, Netherlands, Spain, Hong Kong, Brazil.
>>> How would you describe the customer that is using WCF and what is the value they get from WCF that they cannot get anywhere else?
WeConnectFashion has an international following. We’ve evolved into source that has great appeal to small and mid-sized fashion businesses, especially those in the better to high-end market. We are proud to say they are our primary customers.
WeConnectFashion tracks a large swath of fashion industry business types and marketplace information across all markets in a searchable database. This gets insane, and is probably the reason we are the only one in the industry that does. Plus we’ve been working at connecting the industry for a long time, so we’ve developed a lot of wonderful relationships, which helps with everything we do.
Ours is a huge fragmented industry of inter-related businesses. WeConnectFashion offers a single entry point for the industry professionals to connect with the various types of products and services their businesses demand. WeConnectFashion provides an efficient cost-effective platform to be seen, to find, and to connect with relevant trade partners, marketplace intelligence, and industry know-how.
Oley diCenso is the CEO and Founder of WeConnectFashion.com
posted by tony forcucci
Last week I wrote a piece on cotton prices going up, why this is, four ideas you can put in place to mitigate this, and asked if it was rational.
Earlier today I sat in on a fantastic seminar at MAGIC in Las Vegas that featured two guest speakers one of which is perhaps one of the world’s leading experts on Cotton, Mr. Mark Messura, Sr. VP Global Supply Chain Marketing for Cotton Inc. and Peter McGrath of MgGrath International.
I was happy to hear their take on the price of Cotton and the insight they offered to the packed house and I’d like to share with you what I heard today on this topic confirming and adding to what I wrote last week,
10 years ago cotton was pricing at about $.43/lb and today it is around $2.13/lb
Why did this happen?
1. The Fundamental Balance has Tightened. Mill consumption recovered faster than farmers’ ability to grow cotton. Prices went up. Cotton harvests are in the Fall and it takes a year to replenish and about 2-3 years to balance out.
2. China continues to be a huge consumer of cotton and has to go to market to buy it. Mills are buying.
3. Exportable crops are sold out. India didn’t release full capacity and took their cotton off the market. Brasil in the Southern hemisphere is coming to market but is too small to make a dent in market quotes. 33% of 2012 crop already sold and it hasn’t even been planted yet.
4. Price volatility remains high making it hard for mills to commit at times.
On the Supply side:
Production should increase in 2011/2012 but this new cotton will not come to market until Fall of 2011. China is hoarding cotton frantically. Cotton futures (ICE futures) show the price coming down over the next two years from about $1.89/lb in 2011 to perhaps around $.96 in 2013, but we’re not going to see the prices of 10 years ago. Also – government policy in the USA has been pushing ethanol which has warped the price of corn. Farmers in many instances have also been forced to choose between growing corn or cotton.
On the Demand side:
Emerging economies (BRICS) driving demand plus recovery in industrial markets plus consumers spending less on clothes due to higher prices.
The reality is that clothing and anything made with cotton will simply cost more. Here’s an article from CNBC hitting this very subject.
So what can Brands/Buyers do ?
Offensive cost optimization such as add seeing if polyester can be added in some percentage to their lines if possible. Reduce the amount of cotton used until prices fall back a little.
Find a new Supplier of your cut & sewn goods that could have better pricing on cotton from having larger sources that bought in the past at a better price.
Regardless of what strategy you think is best for you to handle this challenge, you can discover new suppliers and source your production on MFG.com by clicking here.
posted by tony forcucci
Cotton prices have skyrocketed over the past year and a half and have more than doubled in the past 12 months. Let’s look at three key questions
1. Why is this and what affect has it had (and is it having) on the price of your clothes?
2. What can makers of cotton based products do to handle this?
3. Is it rational? Some people believe cotton has been irrationally over-inflated in price and are looking at shorting.
The Why
According to this article in Textiles Intelligence… “the main cause is a massive hike in the price of raw cotton. In the 18 months between March 2009 and the end of September 2010 this rose by 127%, from 51 cents/lb to almost 116 cents/lb. Cotton is in short supply because farmers cut back on plantings when cotton prices were low. Also, cotton usage is rising in response to strong retail demand growth in China and India. And a further blow to cotton prices has been struck by the devastating floods in Pakistan.”
Pakistan is a major producer of cotton but growth has been tricky and cotton is a complicated crop to tend to. Flooding in the region and other bad weather affecting crops in China and Australia certainly put a dent in the price and it hit demand (driving prices up). Buyers of raw cotton have to scramble to other regions in the world such as in India (which is growing in it’s cotton production) and then we have the classic example of supply and demand dictating prices.
Four ideas to manage the situation if you make cotton clothing.
Is it Rational?
People tend to panic at times and that can also lead to irrational pricing but if you look at the graphic at the top of this piece, you’ll see that Cotton has been high in the past as well as in the early nineties and then came back down over the next 10 years.
If you take a look at the chart on this page it shows cottons has risen almost 4x that of gold and the case could be made that cotton is simply overpriced by a longshot and will come down. There’s no doubt that the factors of high demand for cotton products coupled with China’s consumption of cotton and add in a buzz in the world about how cotton is going up up up, maybe we simply end up with a self fulfilling prophecy that pushes the price of cotton too high compared to what it should be based on real supply and demand.
We’ll find out in the next 1-2 years but in the meantime I expect that consumers will be holding on to their jeans a little while longer than they used to and retailers will be closely watching how many units they buy. Better to sell out than get stuck with dead and perishable inventory.
posted by tony forcucci
Is everything made in China? Hardly. In fact even China is losing some of it’s manufacturing base to countries like Vietnam and Cambodia. The real story that many fail to see is that for all of the services in the USA, there still is a vast manufacturing base in America across a variety of industries, but the reason we don’t always sense this is because much of what is manufactured in the USA is of a much higher price point.
There is a good op-ed piece on this in the Boston Globe this week talking about how the things we make in the USA tend to not be the cheapo things you see on the shelves at a big box retailers. Instead they tend to be much farther up the food chain with products that take more brains to make instead of human brute force.
The same can be seen in the apparel business as well. You can make very nice premium jeans in Los Angeles – they are pricer than what you would typically produce in Asia, but they are as nice or nicer and the goods are closer to your US customers (less delivery time and inventory build up).
That’s not to say there is still not an enormous about of product coming in from China and greater Asia, its just that the rumors of US manufacturing being kaput are not true. Not only is there a lot of product made in the USA, I think that more people on the Buying side have a renewed vigor and pride for going back to making things in the USA while also searching for reliable production sources closer to home in the USA rather than going overseas. This is not only good news but it is important. China will eventually become a supplier mostly to the Chinese (a lot of people are going to need a lot of things) and the USA is a going to reclaim some manufacturing ground as it is now.
Did you know that the USA is the 10th largest apparel exporter in the world? That’s not such an easy club to get into without substantial manufacturing volume so take the “news” all manufacturing going overseas with a grain of salt.
posted by tony forcucci
….and you see that MFG.com is now right there on page one and climbing up the charts…. 
We’ve been seeing the trend from US based Buyers in the sourcing world to look for ways to shorten their lead times from factory to doorstep and this had led to more US sourcing people to seek sources closer to home be they in the USA or in Latin America. This week Apparelnews.net reported that imports to the US from Central America are on the rise.
This is good news for both Central America and those Buyers in the USA that have the convenient option of sourcing “local” as opposed to hauling in containers from Asia that take 90-120 days to arrive from PO to doorstep. According to the article, Nicaragua, El Salvador, and Guatelmala all are beneficiaries of this movement.
Met up in NYC at Tex World Jan 2011 with the jet setting and formidable Yin Yin of WRAP… Every factory in the world that wants business from the better brands should get WRAP certified.
1. John, what is Metro Custom Dyeing?
>>> A custom dyeing facility that provides specialty and small production dyeing services to the designers and manufactures in NYC.
2. You have access to many Buyers in the NYC area, how do you service them? What sets you apart from any others?
>>> We provide top tier customer service, quality dyeing, and free messenger service to our customers. Additionally, we make our plethora of resources communal among the fashion community. What separates us from other dyers, is that although we recognize that we have an uncommon skill that is in high demand, we still keep customer service and consistency on the forefront. After all, we are a service company.
3. New York Magazine listed you as the best Custom Dye house in the NYC area, how long did it take you to build this business?
>>> 13 years
4. How would you describe the old school garment district of yesterday compared with what’s going in the business today?
>>> It is really the same as it was 30 years ago, with the exception that it has downsized significantly. That is sad, but it is true. Now that does not mean that there is not plenty of commerce still here, the opportunities are abundant to the innovators, it is just a global market these days and materials are being produced elsewhere for much less money.
5. What’s next for you and your business?
>>> I am selling laces. My dyeing business will serve as the catalyst between an amazing 100 year old lace manufacturer and the intimate apparel, ladies wear and lingerie manufacturers. The synergy is there, my dyeing company services the design departments of the world’s leading apparel manufacturers.
Thanks John – have a great year.
posted by tony forcucci
In 2011 I would like to showcase the Suppliers, Partners and Buyers on MFG.com and think the best shape for that to take is a five question interview format where I ask five questions to the MFG.com member and we get their responses.
I am kicking of the series with an interview with Umapathy P. from Brahmos Tex in India.
1. Umapathy, What advantages do you have as an Indian based factory?
>>> Two main things.They are availability of raw materials and skilled labour in one house.During recent times,we can clearly see that,there is a huge demand for cotton from competition countries like China,Bangladesh and Vietnam etc. But India has never faced such a scarcity of raw materials in its apparel production history. Of course there was a price rise for the raw materials,mainly because of the international demand for cotton and other raw materials.But no Indian Apparel manufacturer has suffered a major setback due to non-availability of raw materials.
Second, skilled labour at a economical wage. The quality of the output apparel is far better compared to neighboring countries. The main reason is skilled labour and digital connectivity of India.When ever there is a new apparel production technology introduced in US or Europe,it hardly takes few days to reach India.As all the major international textile technology companies have their offices in Indian cities like Tirupur,Coimbatore and Ludhiana. It is very important for a supplier country to be technologically upgraded in this ever changing fashion industry.
2. Why should Buyers in the USA or Europe work with India? Are there any special country to country treaties that make it an economically smart thing to do?
>>> Before a year or two,Bangladesh and Vietnam were having a slight advantage in manufacturing cost.But even during those period, quality of the Indian apparels were of high compared to the neighbor countries. But after the cotton availability crisis in the international market,India has grown very strong in both quality and competitiveness in price. And the labour pool is very huge compared to other countries.And even the buyers from US and Europe are swiftly starting to recognize that India will be the top destination for apparel sourcing very soon.Already,factories in India are flooded with orders from US and Europe. So, it’s wise for international buyers to start a business relationship as soon as possible with Indian suppliers which suits their requirements. So that,they don’t waste time in future by searching for right suppliers.
3. What are Brahmos Tex’s specializations?
>>> Brahmos Tex is an knitwear factory with complete facility to manufacture high end Tees,women’s tops,cardigans,kid’s wear etc. We normally take small to medium minimums to cater our buyers who expects exceptional quality and quick turn around time.Our production is generally based on fabric materials like 100% cotton,cotton/viscose,100% viscose,burnout styles,polyester,Tencel,modal,bamboo etc. We also work on garments with original swarovski crystals and other speciality accessories. We also have an sourcing department within Brahmos Tex for sourcing denims and woven apparels for our buyers from US and Europe. For more details about Brahmos Tex,please mail to umapathy@brahmostex.com .
4. What is the perfect kind of order to source in India in terms of category and perhaps size of order?
>>> In fact,India is one among the very few countries which can cater to all small,medium and large buyers. There are factories of all scales.And recently India has grown in to a strong contender for Apparel production,mainly due to huge workforce.
5. Where does India compare against other potential source countries such as Bangladesh or Vietnam?
>>> It’s very clear now that India is in a better position in both raw material and skilled labour availability. So no buyers from both US and Europe wants their products to get delayed due to unexpected developments during production. But if you see recently in Bangladesh, there was a huge strike among labors for wage rise. Bangladesh also depends on import of cotton. Similarly in China,there is a very huge domestic demand for cotton. So China is becoming less dependent on export revenue. And Pakistan was recently hit by floods. Which made cotton availability scarce. So finally,these recent developments made India in to a favorite destination for lot of buyers from US and Europe.
Thank you Umapathy. You can see Brahmos Tex’s Supplier profile by clicking here.
END
Not three days into the new year and we just hit 1700 members in the Global Apparel and Textiles Sourcing Group I put together last year on LinkedIn.com. Nice start to the year. Tight group.
Welcome to 2011. Let’s rock this year uniting the best brands in the world with the best factories in the world all on MFG.com. Let’s set the mood for the year right here and right now with this:
With Barcelona’s one and only Frans Baviera in Hong Kong October 2010 at the IAF World Congress.
I came across this story in the BBC about how the Chinese are beating the Italians at their own game of Made in Italy. In Italy the “Made in Italy” name, label, phrase, whatever you want to call it, it a BIG deal. The Italian cling to this a the one remaining jewel they have in the world of competing with the world.
Then we have the city of Prato located near Florence where there is a small (big?) community of Chinese workers making clothes in Italy and selling the products as “Made in Italy” because they in fact are. The Italians aren’t too happy about it because the Chinese can now produce at a very high level of quality compared to years past and still do it at far more competitive prices than the Italian.
Click here for the article.
posted by tony forcucci
We’re over in Hong Kong this week at the International Apparel Federation’s World Apparel Convention where Mitch Free from MFG.com joined two other panelists on the topic of “Fashion in the Digital Age”. It was an insightful look at the resources that are today available to those in the apparel business from ideation to sourcing to delivery to social media. Here are a couple of images from the event.
posted by tony forcucci
MFG.com has published their insider’s guide to apparel sourcing which is pretty much everything you need to know on how to use MFG.com as a Buyer and have access to an amazing set of online tools to source apparel production.
If you want it click here and then just send it to your printer.
Just wrapped up a very informative face to face meeting in Istanbul with two key players in the Turkish clothing scene. Turkish tea included. More on this to come.
Spent a week with the team at the MFG.com Paris office. Here are some candid shots of the team.
Check out the team here
posted by tonyforcucci
RFQ 571230: Nice $99,000 award today on MFG.com from a FRENCH Apparel brand for 10k hoodies to a SHANGHAI apparel factory. $99,000. One order. Get it???
Working in MFG.com Paris office this week with the European team
Just finished giving a fresh update to the SourcingThreads blog. Check it out at http://sourcingthreads.wordpress.com
Often enough Apparel factories or Apparel Sourcing companies ask us what is the difference in using MFG.com or going to a trade show or using the phone book etc… Let’s go back 20 years…. A factory had a few basic ways to get business.
1. Hire a sales rep
2. Exhibit at a trade show
3. Take out an ad in the phone book or some other directory.
In all instances the factory or agent has to spend some money and very often that spend came with either no results or results that were hard to track.
And you couldn’t after all tell the tradeshow people to give you a free booth and if all went well you’d pay for it. Likewise, you couldn’t tell the Yellow Pages to give you a free ad for 6 months and then let’s see how it goes. If you want business, you make a decision on where to spend and you move.
With a sales rep you had big outlay of capital (salary, benefits etc..) and maybe it worked out maybe it didn’t. And if you went the 100% commission route, you really didn’t get their full attention on the program.
Now let’s jump back into 2010 – what are your choices? What’s different? – The internet became mainstream. People and business today to almost everything by leveraging the power of the internet.
So what do you do today in 2010? A trade show? Not bad, it could work, but expect to lay out several thousands of dollars for 3 or 4 days of seeing who happens to walk by – plus hotel and airfare… and don’t forget to lug your samples with you.
Yellow Pages – really? How do you track this? Who’s there today anyway? Business today is online. Connections are online.
Salesreps? Cool but expensive and perhaps unreliable.
Now you see why MFG.com is such an interesting company. MFG.com was created 10 years ago seeing exactly where the world was going, seeing how business would harness the web to connect with people in industry.
In short, MFG.com is a ‘lead machine” for factories.
It’s THE place on the internet where a factory can, from anywhere in the world tap into a marketplace of Buyers that are sourcing production of something right now. And the beauty of it is that those factories that are in the MFG.com marketplace don’t just get 3 or 4 days there like a trade show, but rather a full year of very well matched Requests for Quotes for the type of production they do.
So if you are a factory or a sourcing company looking for new production business, your choices are to hire people, exhibit at a trade show, advertise somewhere somehow, or use MFG.com and have nicely matched business sent to your inbox for your take action on regularly. Where is the DUH button?
There is a price to pay for each door you take, the question you have to answer is where is the best VALUE for the money you will spend. If you spend $2000 a day at a trade show will it be worth it?
Four days at a trade show will run you at least $8000 – that’s $2000 per day and maybe you’ll get the order.
365 days at MFG.com will typically run you less that 4 days at a trade show but it comes with measurable results, far more buyers, far more tracking, an online presence, and a potentially significant return. The VALUE on MFG.com is quite high for those that use it.
So call the trade show people and ask them to give you the booth for free and tell them that if it works out then you can pay them. Then call the Advertising people and ask them to give you the ads for free and if it works out then you can pay them.
And when you need to fly to the trade show, ask the airline if you can fly there and if you get some business you’ll be happy to pay for the plane ticket….
But when that doesn’t work, check out http://www.mfg.com/textiles get an account and started quoting on actual business from wherever you happen to be – you can even quote while sitting around at the trade show
posted by tony forcucci
Heading up to NYC for the apparel sourcing show and a few appointments.
First off let me say that China as a Supplier to the world is still huge and will continue to still be huge but things are changing. The cost of labor in China is going up and factories are looking at other countries to put a stake in the ground to be competitive on the world scene. The Huffington Post recently did a story on why the END of cheap Chinese labor is near. The gave 11 reasons some of which I’ll highlight here:
1. Recent suicides of overworked employees has shone a bright light
2. China state owned media speaking out
3. Hyundai offering higher wages in Beijing factory after a strike shut down the plant.
4. A strike at a Honda plant resulted in a 24 to 32 percent increase in wages at the factory level
5. Social networks are allowing Chinese workers to communicate.
6. Minimum wages in Beijing going up
7. The one child policy is resulting in a shortage in labor force for the classic supply/demand equation.
When it comes to the apparel industry this also is an issue, just look at this article from Apparel Magazine recently that lays out that Apparel and Textiles are heading out of China.
According to Textiles Intelligence, the world’s leading exporters of clothing in 2008 were:
1. China
2. The EU 27
3. Hong Kong
4. Turkey
5. India
6. Bangladesh
7. Vietnam
8. Indonesia
9. Mexico
10. USA
11. Thailand
12. Pakistan
13. Tunisia
14. Cambodia
15. Malaysia
Those 15 regions comprise 87% of all clothing exports on the planet. That’s where you go if you want clothing made. And as new regions grow, CSR will become even more important to both the Buyer and Factory. The best way to handle this issue is to make sure your Supplier is WRAP certified.
posted by tony forcucci
…. Was updating a few things today for http://www.mfg.com/textiles on Twitter and I decided to follow the AAPN (The American Apparel Producers Network) but we were blocked. Wow – we’ve made it!
The Street.com picked up the story on the MFG.com/textiles new look and feel.
MFG.com coverage out of India : http://economictimes.indiatimes.com/infotech/internet/MFGcom-to-add-20-mn-to-global-sales-from-India-in-5-yrs/articleshow/5855183.cms
In Hong Kong for the Prime Source Hong Kong event. The theme of Day One is Sustainability in all aspects of sourcing and use of technology. Specifically the theme covered how those individuals and companies in the full supply chain need to have imagination and openness in how they use and access technology to build sustainable businesses. And speaking of accessibility, the panel(s) hit on the idea that technology HAS to be accessible to the people in their organizations. The third main theme covered how companies implement their business processes via technology. Organizations need to see the future before it gets here – those are the companies and people that will be well positioned. More on all this later….
A few months ago I created a group on Linkedin.com for bring people together that are in the global textiles and apparel sourcing community. I was happy to see today that the group and reached 1000 people today that are all interested in being connected to the business and networking and making the group one of the top 3 in this category on LinkedIn.com. If you think this also might be for you, click here to join.
MFG.COM HOME OFFICE IN ATLANTA : 
Metro Custom Dyeing, a friend of ours at MFG.com was voted best garment dye house in NYC by New York Magazine: http://nymag.com/bestofny/services/2010/garment-dyeing/
Seth Godin has a blog post that talks about the concept of “Sprezzatura” or the Italian word for “being able to do your craft without a lot of visible effort”. It has also been defined as “a certain nonchalance, so as to conceal all art and make whatever one does or says appear to be without effort and almost without any thought about it” I like this idea and I like to think that this is a goal we have for the Buyers and Suppliers on MFG.com in their sourcing activities – that MFG.com offer them a degree of sprezzatura as they take care of their sourcing business. It just works.
posted by tony forcucci
Wattage! Marithé + François Girbaud have a new video sitting front and center on their home page that is very cool and looks at treating jeans and fabrics with light instead of water.
Check it out in full here.
posted by tony forcucci
A few years ago I had a meeting with Christian Audigier when he was still with Von Dutch. We were in Los Angeles in his new back office in this new building that was being renovated. The building was a wide open space with high beam ceilings and the back office, if I remember correctly, had a huge desk, low sofas and a coffee table for looking at samples and reviewing plans and smoking cigarettes. I remember when he left Von Dutch and started pushing Ed Hardy with a little booth over at MAGIC. His business card was a piece of paper cut up to a business card size and he was just starting to push the hype of Ed Hardy. It was new and different but it effectively modeled the licensing concept that made Von Dutch boom – take and only obscure name, license it, and build it into a huge fashion movement, then re-license it all over the place and go to the bank. Brilliant.
Ed Hardy was freaking everywhere to the point of nauseating. And the margins must have been nice as well. One day while I was walking in Miami I saw a girl come out of a clothing store all excited. She yelled ” I just got this Ed Hardy trucker cap at 50% off! I only paid $65!” I’ve always felt that Christian Audigier was smart to do it the way he did it because he did it like Apple – make something the people don’t even know they want and make them want it. For the past several years he churned out loud design after loud design, one with more embellishments than then next – a zillion different products, a nightclub, appearances all over the planet somehow all at the same time. I mean come on…. whether you like the look or not – that’s impressive and everyone I know who looks at it wishes they had done it themselves! But I’ve also always had the impression that the consumers of Ed Hardy product just lapped it up and want to be in the “in” crowd buying whatever comes out next with a tattoo graphic or some angel or a tiger on it.
Now however I am REALLY digging the move Christian Audigier has made with his new line called “the same guy™”. He has stripped 99.9% of the graphics from this new line and is focusing on basics. IMHO this is the best thing he could have done and to me it’s hilarious that now there are all sorts of people who thought they were the bees knees wearing clothing with just an overkill of graphics on them and Christian has left the building to focus on the polar opposite of what was put of before. Marionnettes et maître is all I can think of.
posted by tony forcucci
Very lucky number. Today we hit exactly 888 members on the MFG.com Global Apparel and Textiles Sourcing group on LinkedIn.com.
Apparel is produced in Haiti and the industry has been stepping up to offer help where they can. Several companies are offer support either through outright cash donations or by dedicating a portion of sales toward assistance in Haiti. This article on Apparelnews.net details some of the companies in the scene. MFG.com also has made a donation to the Red Cross to help in a small way. Here is a link to some other links where you can also help.
posted by tony forcucci
Vietnam continues to be a country to keep an eye on from an apparel and textiles production point of view. It is a lower cost country certainly compared to China and many apparel brands are looking at Vietnam as a good place to source their production. The country is acutely aware of .importance of its textiles sector to the overall economy and is trying to get the message out that labor costs rising are limited to only select urban areas of the country. Details can be reviewed in this article.
posted by tony forcucci
CNBC picks up the news on MFG.com Apparel and Textiles Sourcing Marketplace: http://www.cnbc.com/id/34935875
I love business competition and this post has it down to its essence : http://blogmaverick.com/2009/12/09/the-sport-of-business-3/
China To End Subsidies On ‘Famous Brands’ Manufacturing : http://www.textileworld.com/Articles/2010/January/News/China_To_End_Subsidies_On_xFamous_Brandsx_Manufacturing.html
China imports blondes to sell clothes. http://www.thestandard.com.hk/news_detail.asp?pp_cat=21&art_id=92517&sid=26566668&con_type=1&d_str=20091231&sear_year=2009
