From USA-ITA OFF THE CUFF May 2012 (Volume 3, Issue 5)
By Matt Boyce, Online Marketing Specialist for TigerTrade, and Bhavna Lal, Director of Business Development for TigerTrade
Note: This article is adapted from two blog posts that originally appeared on the TigerTrade blog.
In mid-April, TigerTrade had a whirlwind few weeks in Vietnam and Indonesia to talk to suppliers about new business opportunities.
After speaking at two apparel and textile events in Vietnam we are happy to report that there is a lot of excitement in the industry–and with reason: as sourcing directors look for more options outside of China, Vietnam is poised to take full advantage.
The seminars focused on new opportunities for suppliers to grow their business online and internationally with the help of TigerTrade and our partners, SOURCING at MAGIC, VITAS, and AGTEK. Viet Nam’s apparel and textiles industries are strong. Here are some of the signals that point to the health of these industries:
- U.S. textiles and apparel imports total over $100 billion annually.
- Nearly half of all U.S. buyers plan to increase their sourcing budget in 2012.
- 86% of companies plan to decrease their sourcing in China within the next five years.
- Viet Nam’s apparel exports have recently been growing more than 10% year over year.
We were thrilled to be invited to speak at the AGTEK seminar in Ho Chi Minh City, Vietnam in April. We spoke alongside Jocelyn Tran of MAST Global/Limited Brands who discussed suppliers’ need for tight production and ‘Just in Time’ manufacturing in Vietnam to become more competitive in the global market and get a stronger foothold in international supply chains. Tran also called for more government investment to improve factory production machinery and broaden the skill sets of Vietnamese workers.
In Hanoi, we hosted a seminar for suppliers in conjunction with our partners at MAGIC and VITAS. We discussed the need for manufacturers to become more active online. As more US and international buyers seek out new sourcing opportunities, it is important for suppliers to market their business through internet platforms. TigerTrade’s platform connects businesses in Southeast Asia to buyers looking to source in the region. Also in Hanoi, Jessie Zhang from MAGIC discussed the opportunities manufacturers have to connect with buyers at international trade shows like Sourcing at MAGIC which will host an ASEAN pavilion this year. Ms. Dzung, the Vice Chairman of VITAS announced that their organization will sponsor 10 booths for Vietnamese suppliers at the pavilion.
Also in April, TigerTrade hosted a seminar in our offices in Jakarta along with our partners SOURCING at MAGIC, APRISINDO, and the Indonesian Ministry of Trade. We were joined at the event by many apparel, textiles, and footwear suppliers, there to foster local business connections and learn about new industry trends.
TigerTrade's Bhavna Lal speaks to the seminar attendees in Jakarta. (Photo courtesy of TigerTrade)
TigerTrade’s Apparel Industry Expert, Ronald Santana, officiated the seminar and Pak Binsar, chairman of APRISINDO, Indonesia’s footwear association, opened the event. The attendees ranged from large manufacturing companies to smaller companies newer to exporting. After Pak Binsar’s welcoming remarks, TigerTrade spoke about new industry trends and online marketing methods for suppliers. Here are some key points from TigerTrade’s presentation:
- Apparel and textiles sourcing is shifting away from China.
- 86% of sourcing directors plan to decrease sourcing in China in the next five years.
- Apparel sourcing in Indonesia has been growing at a rate near 14% in recent years.
- Shift away from cotton product sourcing (cotton prices reached an all-time high in 2011).
- Shift toward man-made fibers.
Jessie Zhang of SOURCING at MAGIC presented the benefits of marketing products to buyers at international trade shows. MAGIC is a pivotal trade show held twice annually in Las Vegas. This August, the show will feature the ASEAN pavilion, hosting products from countries like Indonesia.
Pak Ruswal from Indonesia’s Ministry of Trade closed the event and announced that they would fund and support Indonesian manufacturers travelling to Las Vegas in August for SOURCING at MAGIC.
TigerTrade is an active and proud member of USA-ITA. TigerTrade is an online trusted partner network for global trade helping to support sourcing professionals connect to qualified manufacturers in Southeast Asia. TigerTrade works in the apparel, textiles, footwear, furniture, and home decor industries and is headquartered in New York City with regional offices in Vietnam, Thailand and Indonesia.