The Benefits to the Participants An improved understanding of ALL - - PowerPoint PPT Presentation

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The Benefits to the Participants An improved understanding of ALL - - PowerPoint PPT Presentation

Oct 11, 2022 183 likes •567 views

Workshop for SMEs on Exporting Footwear Products to Canada WHY EXPORT? WHY EXPORT TO CANADA ? Phil Zwibel Trans Luxury Hotel, Bandung, 3 April 2017 Mercantile Athletic Club, Jakarta, 10 April 2017 In Partnership with: Workshop Delivered by:

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Workshop Delivered by: Project Executed by:

In Partnership with:

WHY EXPORT? WHY

EXPORT TO CANADA ?

1

Phil Zwibel

Workshop for SMEs on Exporting Footwear Products to Canada

Trans Luxury Hotel, Bandung, 3 April 2017 Mercantile Athletic Club, Jakarta, 10 April 2017

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The Benefits to the Participants

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 An improved understanding of ALL

international sales

 A Manual of how to fulfill export and

import requirements

 Constructive Collection Critique advice  Competitive Analysis of your product.  EXPOSURE TO THE OUTSIDE WORLD

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Footwear EXPORTS to CANADA

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Canadian Imports 2011-15 Waterproof Footwear 19267% Plastic footwear 206% Leather footwear 154% Textile Footwear 414% Footwear Nes 67% Sub-total 225%

$110,000,000 footwear export sales to Canada

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Distribution differences

Retail Sales U.S. CANADA Department Stores 18.4% 9.5% Discount Stores 17.2% 17.1% Shoe and Specialty Stores 29.2% 45.5% Sporting Goods Stores 12.1% 14.1% All Others* 23.2% 13.8% Includes www and outlets 100% 100% 4

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The Rules

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  • 1. ALWAYS ANSWER EMAILS THE SAME OR THE NEXT DAY.
  • 2. FOB PORT is the most standard and convenient for

international buyers.

  • 3. ALWAYS, REPEAT … ALWAYS CHECK THE FITTING AND GET

WRITTEN APPROVAL FROM YOUR BUYER.

  • 4. Your buyer may supply special packing, labels instructions.
  • 5. WHEN IN DOUBT, ASK YOUR BUYER
  • 6. ALWAYS ANSWER EMAILS THE SAME OR THE NEXT DAY
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What I will show:

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1.It Can be done 2.It Must be done 3.What’s important 4.WHY CANADA?

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From a small town in DENMARK to the world’s best shoes. 7

AN EXAMPLE of WHY EXPORT and WHY CANADA

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An example

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Founded in 1963, in Bedebro Denmark. A NEW UNIQUE Concept 1978 a decision was made to EXPORT/sell

  • utside of

Scandinavia.

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An Unlikely Combination

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From one shoe

10 1978 a deal is made with BATA/CANADA/USA Despite several setbacks, by 1982 (4 years), 1 million pr were sold. Now, 4000 stores globally, $1.4 BILLION in global sales.

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What’s the Lesson?

11 A small shoe factory can become a global success. STAY COMMITTED UNIQUE, WORLD CLASS PRODUCT IS REQUIRED Canada is good place to start. It’s 95% of the same work you’re already doing Private label can be a route to your own brand You NEED a local partner.

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OTHER “LOCAL” INTERNATIONAL BRANDS

FRANCE GERMANY ENGLAND CANADA MEXICO USA

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IT CAN BE DONE IT MUST BE DONE

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CANADA From 1985 to 1995 and Now

14 1985 169 Shoe Factories 37% of Domestic market

GOVERNMENT PROTECTION 1995 ONWARDS +/- 5 SHOE FACTORIES Less than 5% of market

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THE FACTS FROM CANADA

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$0 $10,000,000 $20,000,000 $30,000,000 $40,000,000 $50,000,000 1950 1985 2013

DOMESTIC PRODUCTION

50 100 150 200 250 300 350 1950 1985 2013

NUMBER of FACTORIES

$0 $20,000,000 $40,000,000 $60,000,000 $80,000,000 $100,000,000 $120,000,000 $140,000,000 $160,000,000 $180,000,000 1950 1985 2013

Imports

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INDONESIAN EXPORTS

Did your business DOUBLE in the last 5 years?

0% 200% 400% 600% 800% 1000%

Rubber Footwear Leather Footwear Footwear exports

GROWTH OF FOOTWEAR EXPORTS

WHY NOW?

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PLUS the Smuggling !!! 0% 100% 200% 300% 400% 500% 600% 700%

Rubber Footwear Plastic Footwear Leather Footwear Textile Footwear Uppers

5 YEAR GROWTH IN FOOTWEAR IMPORTS How much did your business grow in the last 5 years?

WHY NOW?

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$125,368,000 $350,130,000

2010 2015

FOOTWEAR IMPORTS

280% increase over 5 years

How much did your business grow in the last 5 years?

WHY NOW?

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IT CAN BE DONE IT MUST BE DONE IMPORTS +280% in 5 years WHAT’S IMPORTANT

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What’s important about your PRODUCT

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Sales, are you a maker or a seller?

  • Sales are sales
  • Domestic sales are close
  • Export sales are far away.
  • ALL EXPORT Sales have the

same requirements

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Any shoe at any PRICE?

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Any shoe at any PRICE?

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WHILE PRICE IS IMPORTANT, Your product must be UNIQUE of the best quality Offering shorter lead times Lower production minimums WORLD CLASS SERVICE

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NILUH DJELANTIK

  • ORIGINAL and PERSONALIZED
  • STRONG, COMFORTABLE AND BEAUTIFUL
  • high-profile clients
  • Made by a SHOE-LOVER herself
  • NILUH works with a TEAM of 30 WORKERS, sells in

20 COUNTRIES

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My COSTING/PRICING Experience

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  • PRICES MUST BE BASED ON
  • REAL COSTS
  • AND, THE DESIRE TO SELL
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PRICING DIFFERENCES

Description Domestic sale Export sale Production cost $15 $15 Marketing $1.50 $0 Commissions $2.00 $0 Markup $2 $1 Price $21/$23 $16 GST $2 $0

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DOMESTIC EXPORT Selling Price $23 $16 Plus FOB $0.50 $0.50 FOB $23.50 $16.50 Canadian $ (1.33) $31.25 $21.95 Ocean Freight $1 $1 Duty (18%) $5.62 $3.95 Insurance/Misc (1%) $0.31 $0.22 LANDED COST $38.18 $27.12 Importers markup (40%) $53.45 $38 Retail markup (2.5) $135 $95 EXPLOSION ALMOST 6X

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HOW every $1 becomes $6

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The Natural Evolution of Producers

1.

Contractor for small companies. Some sales of your

  • wn label. (NOT BRAND)

2.

Your own label is growing, contracting for bigger companies and real brands

3.

Contracting for national and international brands, Your label is now a BRAND, and you are exporting.

4.

Making 100% of your own brand.

5.

MARKETING YOUR BRAND GLOBALLY.

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The Product

  • You sell your product in a competitive market.
  • You must have a compelling, unique product,

no matter where you are.

  • Your export customers will improve your

product.

  • Compete with your product, design, speed,

service, NOT PRICE 29

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The best things about EXPORTS

  • CASH PAYMENT
  • BIG(ger) ORDERS
  • INTERNATIONAL NAME
  • IMPROVED PRODUCT
  • COUNTER ATTACK Against IMPORTS

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IT CAN BE DONE IT MUST BE DONE IMPORTS +280% in 5 years

WHAT’s IMPORTANT

The 7 P’s

WHY CANADA 31

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Why Canada?

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COUNTRY POPULATION CONSUMPTION Per person

INDONESIA 248,000,000 540,000,000 2 European Union 500,000,000 2,100,000,000 4 United States 315,000,000 2,300,000,000 7 CANADA 35,000,000 160,000,000 5

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ADVANTAGES

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 THIS PROJECT  SANDALS  YOUR OFF SEASON, IS CANADA’S HIGH SEASON  95% imported  45% of market is Specialty stores  Small scale factories/small scale market  2 cities account for 90% of purchases  VERY OFTEN IS THE DOOR TO THE US MARKET

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IT CAN BE DONE IT MUST BE DONE

IMPORTS +280% in 5 years

WHAT’s IMPORTANT

The 7 P’s

WHY CANADA 34

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The Review

35 Always be selling if you always want to be producing

Identify and Satisfy

Do you have the customer you want?, if not, change what you’re doing and selling

Remember and use the 80/20 rule. EVERYDAY SANDALS NEED BUCKLES OR THEY WONT FIT WELL Be BOLD, and INNOVATIVE

ACT NOW

Answer all emails the same day

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FOR FURTHER INFORMATION, PLEASE CONTACT THE PROJECT OFFICE IN JAKARTA, INDONESIA: CANADA-INDONESIA TRADE AND PRIVATE SECTOR ASSISTANCE PROJECT (TPSA) CANADA CENTRE, WORLD TRADE CENTRE 5, 15TH FLOOR

  • JL. JEND. SUDIRMAN KAV 29-31 JAKARTA 12190, INDONESIA

PHONE +62 21 5296 0376, 5296 0389 FAX +62 21 5296 0389