COTTON USA s s Worldwide Supply Chain Marketing Resources. Supply Chain Marketing. Cotton Council International. Cotton Council International
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1 COTTON USA s s Worldwide Supply Chain Marketing Resources Cotton Council International Supply Chain Marketing What are the chances of meeting the perfect partner? Cotton Council International Is a worldwide network of cotton textile professionals A non-profit trade association Dedicated to building demand for cotton apparel and home textiles 1
2 CCI s s Strategic Objectives Increase cotton s s share of total fibre usage Increase consumer demand for cotton products containing a minimum of 50% US cotton Add value to pure cotton products through use of COTTON USA Mark and marketing services CCI s s Global Structure Washington, DC (Headquarters) UK Germany Turkey Korea Japan Taiwan * * * * China / Hong Kong * Philippines Costa Rica Colombia Brazil Sub-Saharan Africa Bangladesh Thailand Indonesia The COTTON USA Network CCI s s network has ongoing personal contact with the world s s leading cotton spinners; weavers; knitters and garment and home textile manufacturers giving CCI a unique understanding of suppliers market position Similarly, through its efforts to build the demand for cotton products, CCI has close contact with leading retailers and brands in key consumer markets 2
3 Matching Buyers with Sellers Familiarity with Suppliers company profile, products and capacity and Buyers requirements requirements and purchase criteria puts CCI in a unique position to match and introduce buyers and sellers based on specific criteria The COTTON USA Mission To build alliances between retailers and manufacturers For COTTON USA Licensees this is through introduction to new potential customers and generating new business for Licensees For retailers & brands this is helping retailers and brands identify new COTTON USA sourcing opportunities In the end both Buyers and Sellers benefit from COTTON USA in-store retail promotions which increase retail sales of cotton products Manufacturers are constantly looking for new customers Typically the universe of possible new customers is large and located globally Without some kind of introduction it can be difficult to meet new potential customers and get appointments Generally retailers are reluctant to take risks with unknown companies and with a limited staff they don t t have time to review every new company that contacts them. 3
4 Retailers have: Retailer Sourcing Current Suppliers A quest for new suppliers which maintain quality at a more competitive price A constant stream of cold callers, companies contacting them without invitation Difficulty identifying the rest of the world they do not know COTTON USA s Supply Chain Marketing Your Resource to reach New Potential Customers CCI s s network is a rich source of intelligence on the supply chain to retailers and brands Ongoing contact with companies and CCI s licensing program ensures companies maintain established standards COTTON USA licensee = A Vetted Supplier COTTON USA Licensee Supply Chain Marketing Support 1) Supply Chain Marketing Database contains details of world s s leading suppliers of yarns, fabrics and finished products 2) Trade Shows provide a referral service and the COTTONWORKS Fabric Library 3) Sourcing Tours to arrange face-to to-face business meetings and personal introduction service to new potential customers 4) Retail consumer promotions in Europe and Asia add to consumer demand for cotton 4
5 1. Supply Chain Marketing Database Contains: Hundreds of quality manufacturers Full contact information Company profile data Capacities / minimums / delivery times Equipment information Social compliance / Certification information 1. Supply Chain Marketing Database Retailers & Brands can identify new potential suppliers by sorting data by: Product category Capacity Minimum order size / colour / style Delivery times / Speed to market Current Export Markets Electronic Order / Shipping Tracking In-house design capability 1 Basic Licensee Information on 5
6 2. Trade Show Cooperation Texworld; Premiere Vision; Intertextile Shanghai and Interstoff Asia Including COTTONWORKS Fabric Library for Retailers and Buyers At Trade Shows: Your Licensed fabrics are shown to interested retailers & brands, Sample request forms from the shows are forwarded directly to Licensee offices Your company contact information is provided to interested retailers & brands You can arrange to meet potential customers at the COTTON USA stand 3. COTTON USA Buyers Sourcing Tours Past Tours have visited Bangladesh; China; India; Mexico; Pakistan; and Turkey Provides extensive new contacts in concentrated trip program Includes: country overview seminars; showroom visits; one-on on- one meetings at private trade fairs; time for follow-up meetings 6
7 European Apparel Buyers Tour to Turkey - May 2004 Seminar with Industry Leaders Showroom Visits Buyers & Sellers Briefed in Advance European Participants in Turkish Buying Tour Artsana SpA (Chicco brand), Italy Benetton Group SpA, Italy CDA Wear Industries, Italy C & A, Belgium El Corte Ingles, Spain Interfashion SpA, Italy Intersport,, France Stefanel SpA, Italy 7
8 Results of Buying Tour to Turkey 1. 90% of the European companies identified new suppliers 2. 90% of all participants made new contacts 3. 90% of the European companies ordered samples 4. 6 Turkish companies have confirmed new sales 5. New orders valued in excess of US$3 million have been placed as a direct result of the Tour Home Textiles Buying Tour to Turkey June 2005 Up to 15 Leading European Buyers Visit to Licensee Showrooms Private Trade Fair One-on on-one one meetings Time for follow-up meetings and visits to manufacturing site 4 Consumer Retail Promotions Serve as final link in supply chain to support cotton consumption Increased demand for cotton products adds to sales for retailers and their suppliers Successful partnerships build longer- term relations between Buyers and Sellers 8
9 4. Retail Consumer Promotions Increase Cotton Awareness and Sales Educate consumers on the advantages of COTTON USA products Newspaper and Radio advertisements draw readers & listeners to retail outlets Stores animated with attractive POS materials In-store events using incentive promotions draw consumers to promotional area Generate increased store traffic and sales Karstadt Retail Promotion Karstadt Warenhaus AG, based in Essen, part of Karstadt Quelle Group Largest European combined department store and mail order retailer Sales = Euro 15.8 billion (2002) 36% market share of German department stores 189 stores, 104,500 employees (2002) Karstadt Retail Promotion 180 Stores Spring 2002, Spring 2003, Spring 2004 towels / bedlinen sets 6 brands COTTON USA Nothing feels like this 9
10 Karstadt Retail Promotion Newspaper advertisements covering major German cities nationwide draw shoppers to their local Karstadt store COTTON USA sales promoters actively sell promotion product in leading stores during six key promotion days Karstadt Retail Promotion One Investment = Results for 11 Turkish Companies YARN / FABRIC MANUFACTURING RETAIL ARSAN GAP KATARTAS MATESA SANKO TOPKAPI BIRLIK / SOLEY KUCUKER NESA TURKUAZ YESIM KARSTADT Karstadt Retail Promotion 10
11 Karstadt Retail Promotion Karstadt Retail Promotion COTTON USA Hang Tags Identify Products throughout the year Retailer Benefits Consumer Promotions increase store foot fall and customer traffic Sales of COTTON USA labelled product increased over 20% in value and volume Promotions generate positive PR and local media exposure for the retailer and its outlets 11
12 Supplier Licensee Benefits Increased sales at retail are passed on to suppliers in future orders Increased loyalty between retailers and suppliers Retailers must stay loyal to COTTON USA licensees to maintain retail promotion support COTTON USA s Supply Chain Marketing Integrated marketing support for manufacturers and retailers Build long term business relations and supply chain partnerships with COTTON USA 12
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