WHAT WORKED Phil Zwibel In Partnership with: Workshop Delivered - - PowerPoint PPT Presentation
WHAT WORKED Phil Zwibel In Partnership with: Workshop Delivered by: Project Executed by: 1 Why show at MAGIC in Las Vegas The best CANADIAN buyers A great cross section of US Buyers The best of the international shoe buyers In
Workshop Delivered by: Project Executed by:
In Partnership with:
WHAT WORKED
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Phil Zwibel
Why show at MAGIC in Las Vegas
In Toronto it’s only Canadians, and most of your target buyers (the wholesalers) are Selling
The Trade Shows by the numbers
Number of Buyers Show 1 65 Countries Korea,Thailand,Philippines,UK Mexico,India HIGHLIGHTS Bruno Magli, Ardene,Magnum, Timberland, L’equipeur Numbers of Buyers Show 2 35 Countries Australia, Argentina,UK, India,Panama. HIGHLIGHTS Mezlan,Totes,Hell Bunny, Propet
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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international buyers.
WRITTEN APPROVAL FROM YOUR BUYER.
How to Introduce your products and your company Samples Sizes Shoe Marking, shoe box marking and carton marking Export packing/Pallets. Anti mold, Silica packets Standard Documentation required for Canada, Summary Instructions on your commercial invoice/Packing list Invoice description for footwear Canada Customs Invoice Certificate of Origin Incoterms Documents required by Indonesia for export THE RULES The Product Calendar for Canada
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% 7
Footwear EXPORTS to CANADA
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A 31% INCREASE OVER 4 YEARS, 8% ANNUALLY
$- $20,000,000 $40,000,000 $60,000,000 $80,000,000 $100,000,000 $120,000,000 $140,000,000 2014 2015 2016 2017 2018
What I will show:
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From a small town in DENMARK to the world’s best shoes. 10
AN EXAMPLE of WHY EXPORT and WHY CANADA
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❑Founded in 1963, in Bedebro Denmark. ❑A NEW UNIQUE Concept ❑1978 a decision was made to EXPORT/sell
Scandinavia.
An Unlikely Combination
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From one shoe
13 ❑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, $1.6 BILLION in global sales.
What’s the Lesson?
14 ❑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.
OTHER “LOCAL” INTERNATIONAL BRANDS
FRANCE GERMANY ENGLAND CANADA MEXICO USA
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A BRAND DEVELOPED WITHIN THE TPSA without compromise
AUTHENTIC
“The human foot is a masterpiece of engineering and a work of art”. Leonardo da Vinci A thin, flexible sole that allows the feet to feel the ground, move naturally and frees the 200,000 nerves in the foot to connect to the earth and to the brain. A ‘zero-drop' sole, one without a heel lift, allows the feet to distribute weight naturally, not forcing unnatural alignment throughout the rest of the body, especially the pelvis and lower back. A wide toe box that allows the feet to spread naturally freeing the 33 joints making it comfortable to wear all day.
THE BAREFOOT MATRIX
UGLY DRESSY BEAUTIFUL CASUAL
IT CAN BE DONE IT MUST BE DONE
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CANADA From 1985 to 1995 and Now
22 1985 169 Shoe Factories 37% of Domestic market
GOVERNMENT PROTECTION 1995 ONWARDS +/- 5 SHOE FACTORIES Less than 5% of market
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
100 200 300 400
1950 1985 2013
NUMBER of FACTORIES
$0 $50,000,000 $100,000,000 $150,000,000 $200,000,000 1950 1985 2013
Imports
+18% or about 5 % per year
WHY NOW? 24
$- $100,000,000 $200,000,000 $300,000,000 $400,000,000 $500,000,000 $600,000,000 $700,000,000 $800,000,000 $900,000,000 $1,000,000,000 2011 2012 2013 2014 2015
Footwear Imports
WHY NOW?
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$- $1,000,000,000 $2,000,000,000 $3,000,000,000 $4,000,000,000 $5,000,000,000 $6,000,000,000
2011 2012 2013 2014 2015 2016 2017
Footwear Exports
+33% over 6 years, almost 7% per year
How much did your business grow in the last 5 years?
WHY NOW?
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WHY TPSA?
IMPORTS UP +/- 5 % per year EXPORTS UP +/- 7% per year
IT CAN BE DONE IT MUST BE DONE
IMPORTS UP 5% PER YEAR
WHAT’S IMPORTANT
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What’s important about your PRODUCT
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WANT TO BUY
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What’s important about your PRODUCT
Any shoe at any PRICE?
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PRICE IS ONLY 1 COMPONENT
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ONLY 100% PERFECT QUALITY IS ACCEPTABLE
The 4 Components of COSTING Raw material Global Prices Labour Wages/Benefits What about efficiency? Overhead Lexus or Kia? Profit
My COSTING/PRICING Experience
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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 PPN $2 $0
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DOMESTIC EXPORT Selling Price $23 $16 Plus FOB $0.50 $0.50 FOB $23.50 $16.50 Canadian $ (1.34) $31.50 $22.10 Ocean Freight $1 $1 Duty (18%) $5.67 $3.98 Insurance/Misc (1%) $0.32 $0.22 LANDED COST $38.49 $27.30 Importers markup (40%) $64.15 $45.50 Retail markup (2.8) $180 $127 EXPLOSION ALMOST 6X
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HOW every $1 becomes $6
The Natural Evolution of Producers #1
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Own label Local brands Big BRANDS
The Contractor
The Natural Evolution of Producers #2
OWN BRAND Local Brands Building BRAND BIG BRANDS AND OWN BRAND OWN BRAND
The MARKETING MODEL
The best things about EXPORTS AND THE TPSA
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IT CAN BE DONE IT MUST BE DONE IMPORTS up 5% per year WHAT’s IMPORTANT Marketing and the RULES
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RESULTS MATTER
CHOOSE YOUR IDEAL CLIENT
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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
ALWAYS BE SELLING, ALWAYS BE LISTENING
no matter where you are.
product.
service, NOT PRICE 41
THE RESULTS
FACTORY “A”. TOTAL BUSINESS DOUBLED IN THE LAST YEARS AND THEY WANT TO CONTINUE TO SHOW IN LAS VEGAS FACTORY “B”. INITIATED A TOTAL QUALITY CONTROL INITIATIVE RESULTING IN MUCH IMPROVED EFFICIENCY, WORKER SATISFACTION. THEY ALSO DEVELOPED WATERPROOF LEATHER BOOT, AS WELL AS VERY COOL STREET FASHION. AND THEY WANT TO CONTINUE TO SHOW IN THE U.S. MARKET.
THE RESULTS
FACTORY “C”. DOUBLED PRODUCTION CAPACITY SINCE THE TPSA STARTED. BRAND GROWTH IS UP 20% FROM 2017 TO
TO MONTH. “ADAPT TO MARKET NEEDS NOT OUR PERSONAL PREFERENCES.”
THE RESULTS
FROM 45 SHOES FACTORIES, 5 WERE SELECTED, CONFORMING TO THE 80/20 RULE SUCCESS BY ANY DEFINITION IS PROPORTIONAL TO HARD WORK AND
COOPERATION
IT CAN BE DONE IT MUST BE DONE
IMPORTS UP 5% PER YEAR
WHAT’s IMPORTANT
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RESULTS MATTER Marketing and the RULES HARD WORK=RESULTS
THE RESULTS
A NICHE BRAND EXCLUSIVE DISTRIBUTION CLASSIC STYLING
THE RESULTS
A NICHE BRAND EXCLUSIVE DISTRIBUTION FEATURE RICH
THE RESULTS
A NICHE BRAND EXCLUSIVE DISTRIBUTION FEATURE RICH
The Review
4 9 THIS IS A MARKETING WORLD THE MATRIX AND THE IDEAL CLIENT FREQUENCY AND REACH WOM “ADAPT TO THE MARKET”
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The Review
50 THE DOUBLE APOCALYPSE AUTHENTICITY FAIR TRADE SUSTAINABLITY 80/20 AND THE BLACK SWAN ACTIVE LISTENING
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The Review
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IS NOT BETTER
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The Review
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FASTER IS BETTER NICHE IS BETTER SPECIAL IS BETTER CUSTOM IS BETTER
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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
PHONE +62 21 5296 0376, 5296 0389 FAX +62 21 5296 0389