Following the release of USFIA Sourcing Trends & Outlook 2016, our annual report of trade data and trends, we immediately headed to SOURCING at MAGIC in Las Vegas, the largest apparel and sourcing show in the country, to get a look at what’s available around the world and what sourcing execs are thinking about their businesses.
With over 40 countries represented at the February show, there was truly something for every type of sourcing strategy and budget. The big question: what should that strategy be, and how do you make intelligent decisions on issues like sourcing locations, social responsibility, and e-commerce? USFIA hosted a seminar featuring three experts on the topic: Pam Hunter, VP of Sourcing at JCPenney (and USFIA Board Member); Angela Chan, SVP & Chief Sourcing Officer at DestinationXL; and Joseph McConnell, Partner at Cavan Consulting Group, who has worked with brands like Eileen Fisher.
USFIA President Julia K. Hughes introduces Angela Chan of DestinationXL, Pam Hunter of JCPenney, and Joe McConnell of Cavan Consulting Group (Credit: Christina Anderson/USFIA)
With a soft market, opening of production around the world, and a strong USD, there are new sourcing destinations for companies to consider. China will always be a key player, but there are new opportunities especially in the TPP region—though, as Pam Hunter of JCPenney explained, if you haven’t already started thinking about how to incorporate TPP into your strategy and met with the experts, you’re late to the game. (However, USFIA can help with our variety of resources!) Angela Chan of DestinationXL said Vietnam is a great destination regardless of the potential duty savings, due to quality product and competitive prices; the duty savings that could come from TPP are “just gravy,” she said.
Wherever you source, the speakers agreed it’s important for companies to be deliberate about sourcing decisions—not transactional—and pay attention to new challenges, like increases in labor costs as well as ensuring ethical sourcing operations, which is no longer optional. Companies must take a stand, and maintain a zero-tolerance policy for factories that don’t comply with your expectations or standards. All three speakers noted that it’s important to investigate your factories personally, and take a “trust but verify” stance—and, showing up to your factories unannounced and forming personal relationships with factory owners only helps.
Finally, the speakers touched on e-commerce and the rise of omni-channel retail. “The customer expects it to be seamless,” said Pam Hunter, and there are a host of issues companies must consider before jumping in, including language and currency barriers, inventory, packaging, and how to interchange between retail channels so the customer receives their product quickly and seamlessly.
You can download the USFIA and JCPenney presentations here.
After, we dove into the details of the TPP with Bill Jackson, Acting Assistant U.S. Trade Representative for Textiles, who provided an update on the agreement and explained several key opportunities for brands and retailers. Companies looking to save some money will especially want to look at textile travel goods and bags, dresses, skirts, and anoraks, as well as the dress shirt program in Vietnam and Malaysia. You can download the USTR presentation here.
When we weren’t learning from the seminars, we got a chance to visit with exhibitors, including USFIA’s Sourcing Supporter, ProColombia, who brought vendors showcasing everything from denim and leather goods, to men’s and women’s tailored clothing, to lingerie, swimwear, hosiery, and more. We got to meet a few of the exhibitors, including Lafayette Sports, which has 72 years of experience in high-tech polyester fabrics for everything from performance wear to fashion, uniforms, and home products. The vertically integrated operation provides one-stop shopping—not to mention peace of mind about quality and social responsibility. We enjoyed getting a look at their fabrics—and testing them out to see just how they wick away water!
Lafayette's vertically integrated performance wear (Credit: Christina Anderson/USFIA)
Other standout vendors included Articur Genuine Leather, a family-owned business with beautiful products, and Grupo Acrilan, known for quality cotton shirts made of their own fabrics.
Acrilan's colorful cotton shirts (Credit: Christina Anderson/USFIA)
If you missed this season of MAGIC, save the date to join us in Las Vegas from August 14-17, 2016!