presentation

November 5th, 2013
8am - 1pm
Colombia: The Next Sourcing Destination
Sylvia Reyes,
Apparel and Textiles Sourcing Director, PROCOLOMBIA USA, The
Colombian Government Trade Bureau
COLOMBIA:
TEXTILE
AND
APPAREL
INDUSTRY
What’s going on in the world? Key factors & trends
Wages in Chinese factories have quintupled in the past ten years, shifting sourcing options
near the American market.
NEW SUPPLY CHAIN OPTIONS
Made in China is giving away to Made in Colombia, Guatemala, El Salvador, Nicaragua or
Honduras.
NEAR SHORE OPTIONS
Despite the weakness of the United States economy, demand for garments is on the upswing
in selected market segments.
NICHE MARKETS
New challenges and models of replenishment and product cycle in the supply chain.
VALUE EQUATION
Increasing demand from retailers, new channels, new niches, Multi-channel.
Sources: Analysis by Brands and Retailers at SPESA, AAPN, AAFA Forums, Procolombia, CEO Advisors
1. Knowledge & experience with U.S. market(s)
East
-
Actively listens to brands.
Factories are familiar with customer
requirements.
Vendors stay on top of trends & deliver
innovation
COLOMBIA
100
YEARS OF EXPERIENCE
FULL COLLECTION, FULL
PACKAGE, AND PRIVATE LABEL
WIDE RANGE OF PRODUCTS
CATEGORIES for the fashion
industry
-
West
The gap is closing, West is getting more
efficient on deliver innovation and customer
requirements and service
EXPANDING THE TEXTILE BASE
VIA INNOVATION
Functional Active wear and
Sportswear, and denim fabrics
Un derwear Extra support
Shapewear /Cosmetotextiles
Textiles out of Pet
The industry has developed innovative solutions
Functional
Active wear
and
Sportswear
Functional
denim fabrics
Underwear
with extra
support
Shapewear
with
Cosmetotextiles
Textiles made out
of PET and
reused scraps:
2. Vertical & Available
West
- It is definitely expanding, especially in performance
fabrics.
- It is strong in a narrow category of textiles
- Basic Knits (mostly cottons) are comparable in the
West;
- Regional packaging and trims in the West are
improving/ flexible
COLOMBIA VERTICALLY INTEGRATED INDUSTY
East
- Greater number of textile inputs.
- Everything can be made in Asia.
- East better on complex garments
- East more accommodating & flexible due
abundance of mills and (CM) factories
R&D
Texturizi
ng mil
Spinning
Mill
Knitting
Dye House
Packaging
Finishing
Cut and
Saw
Designing
COLOMBIA
Available /multichannel
Outer
Swimwear
Uniforms
wear
Jeanswear
Shapewear
Hosiery
Footwear
Leather
Products
Jewelry and
accesories
Sport Wear
3. Speed
-
East:
Samples are quicker than west
East tends to over-commit to fill
capacities. – Can cause production
delays (freight vrs production)
West:
-
Pre-production and sampling product development
requires efficiency
Delivery lead-time is shorter than East
Flexible production and fast reaction product lines
COLOMBIA
Minimum quantities can be adjusted to customer’s needs depending on each company’s
policies
Quick response to replenishment orders,
Short lead times, from 45 to 60 days compared to China’s that are around 120 and 150
days.( 2/5 days for sampling)
Colombia can produce orders of 500 units or 5000 to meet specific needs, with NO higher
costs, high commitment and quality
4. Transit – Logistics
-
-
East:
China has built strong logistics infrastructure,
challenge in internal logistics
East, with all their volume has built an
infrastructure to move product inland, however, onthe-water transit times are still too long.
-
West:
Western Transit times are definitely faster due to
proximity of U.S. market.
West has a mature logistics model and set of processes.
Challenge lies with moving inland from factory to the
port, days on-the-water is quick.
COLOMB IA
Over 700 weekly direct international flights.
More than 4.900 weekly domestic flights.
Less than 6 hours to the main capital cities in Latin America
3 hours from Miami air/ 3 days via boat.
More than 20 different airlines operating in Colombia
Strategic to expand to Latin America/ export platform
4. Transit – Logistics
Traffic Times Maritime
Origin
Destination (City)
US (Los Angeles)
China
(Shangh
ai)
Colombia
(Atlantic
coast)
115
economyName
Rank
Documents
to export
(number)
East Asia & Pacific
..
6
21
923
South Asia
..
8
32
1.603
Latin America & Caribbean
..
6
17
1.268
Time to export
(days)
Cost to export (US$ per
container)
15 days
100
Middle East & North Africa
..
6
19
1.083
US (Miami)
25 days
155
Hong Kong SAR, China
2
4
5
575
Thailand
20
5
14
585
United States
22
4
6
1.090
Taiwan, China
23
6
10
655
32 days
128
CONT 20 ‘
(US/TON)
Indonesia
37
4
17
644
Dominican Republic
46
6
8
1.040
14 days (Connection at ColonPanama)
49
Philippines
53
7
15
585
China
68
8
21
580
US (Port
Everglades)
3 days
37
Vietnam
74
6
21
610
El Salvador
80
8
14
980
US (New York)
7 days
Nicaragua
81
5
21
1.140
Honduras
90
6
12
1.342
Colombia
91
5
14
2.255
Puerto Rico (U.S.)
96
6
15
1.300
Guatemala
117
9
17
1.307
Cambodia
118
9
22
755
Bangladesh
119
6
25
1.025
India
127
9
16
1.120
Destination
(City)
Lead Time
US (Los Angeles)
US (Los Ángeles)
Colombia
(Pacific
coast)
20 days (Connection at
Long Beach – Estados
Unidos)
CONT 20‘
(US/TON)
US (Long Beach)
US (Newark)
Origin
Lead Time
Trading Across Borders
40
16 days (Connection at ColonPanama)
54
US (Port
Everglades)
7 days (Connection at
Cartagena-Colombia)
45
US (New York)
10 days (Connection at
Cartagena-Colombia)
49
Source: PROEXPORT 2012
5. Cost
-
East:
Low(er) wages
Labor productivity rising/ reingeneering.
Cost & reliability of Power is a big problem in the East. East
has power shortages
Labor productivity (PPP) Estimates: GDP (PPP) per
person employed per hour, US$ (Updated: MAY 2012)
India
4,47
Indonesia
4,64
Philippines
5,08
Thailand
7,11
China Mainland
7,27
Peru
West:
- Western Hemisphere has production efficiencies
- The cost of power is rising but Possible new sources
of power.
Compensation levels (US$)
Total hourly compensation in manufacturing (wages + supplementary benefits), US$
9,73
Brazil
12,56
Colombia
13,19
Mexico
16,00
Chile
17,18
Malaysia
19,70
Argentina
22,41
Korea
26,30
Taiwan
38,62
Hong Kong
41,49
Singapore
45,77
USA
55,52
-
10,00
20,00
30,00
40,00
50,00
Source: © IMD WORLD COMPETITIVENESS ONLINE 1995 - 2012
60,00
Source: EIU Economist Intelligence Unit 2013 calculation.
U
P
D
A
T
E
FREE TRADE AGREEMENTS AND
PREFERENCE TRADE SYSTEMS
Enforced
Signed
In negotiation
All
Colombia’s 11 free trade
agreements (FTA), with 48
countries, allow the country to
have preferential access to over
1,500 million consumers
Source: Colombian Ministry of Commerce, Industry and
Tourism. 2012
6. Ease of Doing Business
-
East:
It is more flexible.
Knowing your “cultures” it makes it
easier to do business.
West:
West has more rules.
Communications and meeting deadlines
challenges.
- Western Hemisphere can handle smaller lot
sizes, willing to make exceptions.
THINK COLOMBIA
Colombia is a growing economy
Colombia is a long standing democracy providing
important stable business incentives
Colombia is a strategic and logical NEAR SHORING
destination for USA
Colombia is a natural GATEWAY for companies with interests
in the region
6. Ease of Doing Business
Starting a business
economyName
Rank
Procedures
(number)
Time (days)
Cost (% of income per
capita)
Paid-in Min. Capital
(% of income per
capita)
Ea s t As i a & Pa ci fi c
..
7
36
22.4
13.4
South As i a
..
7
19
21.6
17.8
Mi ddl e Ea s t & North Afri ca
..
8
23
29.8
72.3
La ti n Ameri ca & Ca ri bbea n
..
9
53
33.7
3.7
Hong Kong SAR, Chi na
6
3
3
1.9
0.0
Puerto Ri co (U.S.)
12
6
6
0.9
0.0
Uni ted Sta tes
13
6
6
1.4
0.0
Ta i wa n, Chi na
16
3
10
2.4
0.0
Col ombi a
61
8
13
7.3
0.0
Tha i l a nd
85
4
29
6.7
0.0
Ba ngl a des h
95
7
19
25.1
0.0
Vi etna m
108
10
34
8.7
0.0
Ni ca ra gua
131
8
39
100.6
0.0
Domi ni ca n Republ i c
137
7
19
17.3
49.3
El Sa l va dor
139
8
17
46.7
2.9
Chi na
151
13
33
2.1
85.7
Hondura s
155
13
14
45.9
15.7
Phi l i ppi nes
161
16
36
18.1
4.8
I ndones i a
166
9
47
22.7
42.0
Gua tema l a
172
12
40
48.1
20.9
I ndi a
173
12
27
49.8
140.1
Ca mbodi a
175
9
85
100.5
28.5
Source: Doing Business 2012
Note: It measures the procedures, time and cost for a small to medium-size limited liability company to start up and operate formally. comparable
across 185 economies,
7. SOCIAL COMPLIANCE
East: Compliance, pollution & labor challenges vrs a WEST more progressive
.
Colombia
has
the
Social Responsability Index 2012
second best social
responsibility index
in Latinamerica,
and a higher position
than countries as
Italy, Israel or France
LABOR POLICIES
Hiring of single mothers: inclusion
of kindergartens for their kinds
ENVIRONMENTAL
RESPONSIBILITY
No child labor
Use of ozone instead of water
for finishing processes for jeans
wear
Minimum legal wage for every
worker in the whole chain
Reuse of wastewater thorough
automated plants
Quality
CERTIFICATIONS
The challenge for near shore sourcing- Western
Hemisphere as the option
Competitivity and for Western Hemisphere Vendors will depend on:
• Speed to market
• Leaner inventories required in retail
• Replenishment program shifts
• Faster fashion deliveries fast fashion of the whole supply chain
• Preproduction efficencies PLM
• Challenges in Western sampling turnaround
TEXTILE AND APPAREL
INDUSTRY IN COLOMBIA
Apparel
Textiles, Fiber and
apparel trims
Leather and leather
accessories
Around 3000 companies
 630 exporting to the US
TEXTILE AND APPAREL INDUSTRY’S GENERAL INFORMATION
Production by Regions
The main important regions where textile production takes place are in Bogotá, Antioquia and Atlántico with
91.5% of total gross sales. Apparel and clothing production take place in Antioquia, Bogota and Valle
mainly
Textile
The main regions in Colombia where textile production takes
place are Bogotá with 45.2% of total textile production, Antioquia
with 41.6% and Atlántico with 4.7%. Bogotá and Antioquia
accounted for 86.8% of the total production
Apparel
The main regions where apparel production facilities are located
are Antioquia with 56.5% of total apparel and clothing production,
Bogotá with 23.7% and Valle with 9.0%
Barranquilla
Bucaramanga
Medellín
Bogotá
Cali
Pereira
Ibagué
Apparel
Around 2000 companies
Jeanswear: 34
Activewear: 40
Uniforms: 37
Swimwear: 35
Underwear & Shapewear: 68
Casualwear: 31
Textiles, Fiber and
apparel trims
COLOMBIA HAS WORLD CLASS FACILITIES-MILLS
WOVEN MILLS:
Offering all types of :
denim weights
Constructions
dye finishes
Coated blends with poly,
T-400 and stretch
KNIT MILLS
Offering all types of Knits :
Jersey, Interlock, Pique, Ribs,
Fleece,
Terry, Jacqard, Mesh
weights, dye finishes
blends with poly, Modal, Rayon
Stretch.
Leather and leather
accesories
COLOMBIA’S APPAREL AND TEXTILES EXPORTS DYNAMIC
Colombia’s apparel, textiles and accessories*
exports to the United States 2010 – 2013
US$ million
Colombia´s apparel and textiles exports
to the United States grew 10.7% in 2013.
Apparel and leather goods were the
most dynamic sectors in 2013:
325.0
321.9
320.0
315.0
310.2
310.0
sales rose 12.4% from
US$210.3 million in 2012 to US$236.5
million in 2013.
• Apparel
305.0
301.5
300.0
295.0
290.7
290.0
285.0
280.0
• Leather goods exports grew 7.5%
from US$46.9 million in 2012 to
US$50.4 million in 2013.
275.0
2010
2011
2012
2013
* Including textile, clothing, leather, footwear, leather goods and jewelry and costume jewelry.
Sources: DANE, MINCIT, Proexport
.
FTA’S OUTCOME – APPAREL, TEXTILES AND ACCESSORIES
Apparel and textiles was the second sector with the largest number of new exporting firms
after the FTA. 209 companies exported their products for the first time due to the agreement
with the U.S.
Colombia exported 44 new apparel and textiles products after the FTA´s entry into force.
The new products exported to the United States include: Handkerchiefs, Knitted Knee
pads, between others.
Also, Colombia exported innovative products like: Shaping and But-lifting jeans, bulletproof
jackets, anitmining suits, bulletproof apparel, underwear for gay segment, special occasion
children's dresses
Source: DANE, MINCIT, Proexport
Apparel exports diversity to US 2002-2012
Apparel: Knit and woven exports 2002-2013
US$ millions
In 2013 Apparel exports
were 57% woven and 43%
knits
What COLOMBIA offers
100 years of experience
VERSATILITY &
EXPERIENCE
DENIM
KNITS
ACTIVE WEAR
UNIFORMS
INTIMATES/ SHAPEWEAR
HOSIERY
SWIMWEAR
CHILDRENSWEAR
TEXTILES
TRIMS
Around 2000 companies within the industry in categories
including:
Jeanswear
Activewear
Uniforms
Vertically Integrated Industry
R&D
R&D
FIBERS
YARN
TEXTILES
& TRIMS
DESIGN
MANUF.
Integration amongst all participantes in the value chain allow a more efficent and
productive process giving our clientes versatily, reaction time, quickturns
and product development with quality and design
LOGISTICS
Categories: Jeanswear
ACTIVE SUPPLY INCLUDES:
Cundinamarc
a
Antioquía
•
•
•
•
•
•
•
CI Jeans
Exporfaro
El Globo
CI Full Packague
Confort Jeans
Sport World
Sodinco
•
•
•
•
Broxxo
Bxs Generation
CI Draxy
Sebatiano
Triangulo del
café
Valle
•
•
•
•
•
•
•
•
•
•
•
Antonio Lozano
Equilibrium
Anpez
Amkor
Cheviotto
Omce leven
Stage
CI Ruiz Argote
Gaad Jeans
CI Hidalgo Monje
Denim factory
•
•
•
•
•
•
•
Top Blue Jeans
Two life
USD Jeans
Chameleon
Todo Jeans
Creaciones Bon Jovi
Centro Colombiano de
la Confección
• Studio 4
• Ureux
Atlántico
• Priamo
• Dismoda
• Industrias Xahio
DYING HOUSES – WASHES – OZONE FOR FIINISHES- LASER
TECHNOLOGY
Categories: Sports & Activewear
ACTIVE SUPPLY INCLUDES:
Cundinamarc
a
Antioquía
•Lindalana
•Creytex
•Promarcas
•Vestimundo
•Codintex (IAS)
•Alfatex
•Balalaika
•Tizziana
•Industrias Suarez
• Zerie
•Enjoy
•Safety
•Confecciones Olas
•Nativos
•
•
•
•
Studio Intimo
Textilia
Pat Primo
Toptex
Valle
•Peñatex
•MGM
•Supertex
•Spataro Napoli
•CI Moda Colombiana
Triangulo del
café
•Ambrosia
•Centro Colombiano de la
confección
•Studio 4
Tolima
•Grupo Calidad
•Grupo Carolina
•Confecciones Cathy
PERFORMANCE FABRICS- BREATHEABLE- ANTIBACTERIALSUNPROTECTIVE
Categories: Uniforms
ACTIVE SUPPLY INCLUDES:
Antioquía
Cundinamarca
•Confecciones
Colombia
•Iblu
•Texcauca
•Vestimundo
•Delmyp
•Candilejas
•Margie
•Textilia
•Miguel Caballero
•Colombian Uniforms
•Modacorp
•Toptex
•Gadol
•Barreros
•Fss
•Cidma
•Inducon
•Cadugi
•Rainco
Valle
•Confecciones Meicy
Triangulo del
café
•Incoco
•Kosta Azul
•Dansa Internacional
•Louis Barton
•Salgari
Tolima
•Grupo Calidad
•Grupo Carolina
•El Bunde
•Monarca
•Roott & Co
Atlántico
•Barranquilla
Industrial
•Abugal
•Dismoda
•Dolka
•Confecciones El
Industrial
•Vestimenta
•Industrias Xahio
Categories: Swimwear
ACTIVE SUPPLY INCLUDES:
Antioquía
•Bra style
•Prodinter
•Krispeta
•Kibys
•Productora Dance
•Garotas
•Margarita R lencera
•Altextil
•Balalaika
•Escotex
•Irgus
•Co Kazara
•alternativa de moda
•Trayecto intima
•Maly bay
•Silvia de la peña
•Ellipse
Cundinamarca
•Kelinda
•Prointimo
Valle
•Comercializadora Move
•MGM
•WL Green
•Industrias Integradas
•Nativa
Triangulo del
café
•Centro Colombiano de la
Confección
•Studio 4
•Ambrosia
•Risare
•Tropical Beach
•ColorSport
•Riotextil
TOP OF THE LINE DESIGN – DIVERSITY OF MATERIALS - PRINTS
Categories: Shapewear
Antioquía
•
•
•
•
•
•
•
•
•
•
•
•
•
•
•
•
•
•
•
•
•
•
•
•
•
•
•
•
•
•
•
•
Balalaika,
Multimoda Andina
Framutex
Pantiexport
Productora de Moda JDE
Soprotex
Ellipse
BraStyle
Grupo inversor Logistico
First trade
Kibys
Sex interior
Inversiones Dicoex
Suratex
Fabrica de brassieres haby s.a
Coexmoda
Vestimundo
Productora de textiles
Prismapiel
Lemur 700
Promarcas
Ci lingerie export sas
Confecciones bravas
Trayecto intimo
C.i formas intimas
Grupo carvacaro s.a
Margarita R Lenceria
Silvia de la Peña
Marlstone historia de amor
Morarbe
Coferintex
Prendacol
ACTIVE SUPPLY INCLUDES:
Cundinamarca
•
•
•
•
•
•
•
•
•
•
•
•
•
•
•
•
•
•
•
•
•
•
•
•
C.i caricia s.a.
Yurika
Volupte
Alianza intima
Confecciones chantall
Pettacci
Consorcio corsetero ltda
Lady marcel
Consorcio de confecciones
Dugotex
Creaciones mas bella
Pintos
Formfit de colombia
Creaciones oma
Intimagge ltda
Intimoda
Luvet ltda
Margie
Mirielle intime
Licsy (conmedias)
Sher france - cher
Artexa
Simona
Lazur
Valle
•
•
•
•
•
Exportadora Alfa
Marcaro
ndustrias Integradas
MGM
Manufacturas Model
Triangulo del café
•
•
•
Centro Colombiano de la
Confeccion
Studio 4
Ambrosia
Categories: Ready to Wear
ACTIVE SUPPLY INCLUDES:
Antioquía
•Colecciones Básicas
•Sultex
•Creaciones Monteblanco
•Dinámica Textil
•Colors
•Comercializadora Mapa
•Sport Wolrd
•Diverco
•Figuras Informales
•Yoko
•Tennis
•Dantex
Cundinamarca
•Jean Pascal Ltda - Amore
•Ragged
•Coditex
•Fuera de Serie - Valmark /
Isajhon
•Hersam S.A / Candilejas
•Barreros
•Clasicos de la Elite
•Cidma
•Arturo Calle
Valle
•Anpez
•Aritex
•BLG Moda
•Golan Zocher
•Denim Factory
•Petri
•Confecciones Nova
•WL Green
•Nexxos
•Quest
•Stage
•United
•Confecciones Riguez
Triangulo del
café
•Color Siete
•Diseños Sharo
•Casa del Bordado
Atlantico
•Dismoda
•Barranquilla Industrial
•Zocca
•José Escaf
•Industrias Xahio
•Distribuidora Moran
•Priamo
HIGH QUALITY NEEDLE WORK – NOVELTY FABRICS AND
Sustainability
FIBERS and FILAMENTS made out of 100%
recycled PET bottles
FIBERS:
1.100% polyester yarns
2.Poly/cotton (jeans, pants, shirts, home
fabrics)
FILAMENTS
Outerwear, Underwear, Sports, Home,
Automotive
Use of ozone instead of water for finishing
processes for jeans wear
Reuse of wastewater thorough automated
plants
Waterless
Recycled denim
Water treatment plant
Elimination of hazardous chemicals
World Class Facilities & Innovation
Latest technology to optimize processes like:
•Laser technology for denim finishes
•Ozone for vintage finishes
•Production of yarn from polyester granule
•Nanotechnology and Biotechnology as a tool for innovation
•in the textile production
Lazer, ozone, garmentdye, resins, etc
EDI capabiltiy or data transmission compatible with customer
Sampling line
Hybrid manufacturing
Customized collection: customer expectations and needs:
pridcut, price range, delivery
FOREIGN
INVESTMENT
THAT
STRENGTHENS
OUR INDUSTRY
Free trade
agreements and
preference trade
systems
0% Tariffs for textile &
apparel exports to
American and
European markets
Source: Proexport
0%
MADE IN
COLOMBIA
EXPORT
PLATFORM
0%
0%
MAKE COLOMBIA
YOUR SOURCING
DESTINATION, WE
ARE HERE TO
HELP!
ABOUT
PROCOLOMBIA
Procolombia is Colombia’s entity in charge of the
promotion of International Tourism, Foreign Direct
Investment, and non-traditional exports
EXPORTS
INVESTMENT
TOURISM
Procolombia’s network:
28 offices around the world and 8 offices in Colombia
REPRESENTATIVES
IN THE US
PROCOLOMBIA COLOMBIA SERVICES
FOR US IMPORTERS
1. Information
Services
Business
2.
matchmaking
Services
•Forums and seminars on doing
business with Colombia
•Contact information of
Colombian certified suppliers in
every sector
•Customs and logistics
information
•Contact with other support
companies and entities in the
US
•Agenda in Colombia for US
buyers
•US Buyers mission to Colombia’s
specialized Trade Shows
•Business Match Making Forums
in the US
•Appointments with Colombian
suppliers visiting the US
•Buyers visit to Colombia’s
Pavilions in major US’s Trade
Shows
3. Follow up &
Support Services
•Tailor made services according to
your business needs
•Results oriented account
management
•Follow up to business leads with
Colombian counterparts
•Head office in Miami & Branch
office in NY and representatives
through out the country
•No charges for your company &
100% Confidential
Main Vendors at texworld
Main Vendors at texworld
EXPERIENCE COLOMBIA’S VERTICAL
INTEGRATED TEXTILE INDUSTRY
KNOWN
FOR ITS FLEXIBILITY, CREATIVITY
AND
HIGH QUALITY AT TEXWORLD 2015
Colombia’s top suppliers will be
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innovative techniques, groundbreaking
fabrics, and trendsetting designs.
July 21 - 23
Javits Convention Center
655 West 34th Street
What is next? 2015
TOP Buyers missions with Vendors at
•Colombiamoda july 28-30, Medellin-Apparel Textiles, Trims & Full package
•IFLS juy 28, Bogota, Leather accessories & Shoes
• Magic Las Vegas, Aug 17, Full package and brands
Curve, Accessories – aug2-4 NY
• Swim vendors in Swim Show Miami jul 17 and Swim Collective LA Aug
•Vendor showrooms denim/knits NY/ sportswear LA/ uniforms Ny, Dallas
MAKE IT A REALITY!
Come see if for yourself!!!
Do not miss out on the opportunity to
do business with an industry that
adapts to your needs.
FOR MORE INFO
CONTACT
Sylvia Reyes
Apparel and Textiles Director - USA
[email protected]
Tel.: (212) 9229114
www.procolombia.co