Digitalizing the Fashion Supply Chain. Modtissimo Workshop: How to increase business as a garment manufacturer by using digital tools

Transcription

1 Digitalizing the Fashion Supply Chain Modtissimo 2018 Workshop: How to increase business as a garment manufacturer by using digital tools v14

2 Agenda Why the traditional way is obsolete Digital sales tools Traditional vs. Digital Benefits of digital sales tools Detailed Overview Foursource Evaluation

3 Why the traditional way is obsolete Traditional sales channel Traditional, inefficient search process Costs Personal Relationships Trade Fairs Trade Associations Recommendations Agents Cold and random sales approach Little knowledge about brands and their needs Often dependent on intermediaries Low trust, highly fragmented, lack of standards Relatively high costs for traditional sales tools for a relatively low success rate Tradeshows: Agents, buying offices, trading houses increase product cost up to 25%

4 Digital sales tools Platforms: Alibaba, Sqetch, Europages, Foursource Social Media: Facebook, Twitter Digital Sales Tools Digital sales tools Website Marketing Google AdWords / SEO LinkedIn

5 Efforts (cost & time) low high medium Traditional vs. Digital Trade Shows Referral of network Agency and intermediates Digital Sales Tools traditional digital low medium Effectiveness high

6 Benefits of digital sales tools What are the possible benefits of digital sales tools? Creating Trust Showing Expertise Showing Capabilities Attract Customers Be Visible Targeted on high potential leads Be profitable

7 Platforms - Alibaba Product Marketplace Company Listing Pros Cons Annual fee as a supplier/manufacturer is 2,999$ Free member plan limits many features such as product posting, verification icons, and priority ranking* Global platform Receive quotation requests from buyers Full Range (Shoes, Trims, Fabrics, Accessories, Apparel) Direct communication through platform No buyer profiles available No standardized profile information Compliance not verified Biased manufacturer ranking Sharing information with other manufacturers *

8 Platforms - Europages Company Listing Pros Cons Free member plan limits visibility, as company will only be listed in one language. Premium Membership plan cost 3600 annually. Global platform Full Range Low monthly membership fee No buyer profiles available No standardized profile information No verified compliance information Very fragmented Limited exposure / highly depending on language

9 Platforms Sqetch Manufacturer Listing Pros Cons Unlimited search access and in depth manufacturer profiles only available with Premium subscription plan annually. Paid membership plan starts with 499 annually Receive quotation requests from buyers Direct communication through platform Mainly Europe Non standardized supplier profiles No buyer profiles No verified compliance information Sharing information with other manufacturers

10 Social Media Facebook Social Media and networking service Facebook advertisement is used for business Suitable for consumer goods and branding Hard to target the needs of a professional buyer Mainly for private use Facebook advertising costs on average about 0,23 (Cost per Click)* Set your own budget Depending on: o Ad objective o Audience o Ad quality o Your industry *

11 Google AdWords / SEO SEO (Organic) Google AdWords Google AdWords is an advertising service by google that allows your company to appear on relevant search results You set your own budget and decide how much you want to pay Costs depend on industry, ad objective and quantity SEO = Search engine optimization SEO helps your website list at the top of the organic results* Very expensive, as somebody needs to be hired to create content (FTE or freelance) *

12 Website A website and online presence strategy allows you to market your business online and to establish credibility Low costs when basic technical knowledge is available (Jimdo, Wix)

13 Marketing s are being sent to potential and existing customers The most popular tool being used is Mailchimp marketing is cheap, but not effective

14 LinkedIn LinkedIn is a business focused social networking site Create visibility in a business oriented environment Company profiles are not ideal to show full expertise and capabilities Option to built a business related network Free - but premium tools, such as direct messaging needs to be paid 51, per month depending on membership scheme (monthly and annual scheme available)

15 About Foursource Foursource is the world s largest sourcing network for the apparel industry The Global network of textile professionals Detailed and verified company profiles Unique search, matching and filter functions Digital supplier showroom and quotation requests

16 How you can present your company in a professional way towards buyers

17 Evaluation Digital Tools Marketing Google AdWords / SEO Website Social Media A. Creating Trust 10% 30% 80% 20% B. Showing Expertise 10% 20% 60% 20% C. Showing Capabilities 20% 20% 60% 20% D. Be Visible 10% 40% 40% 40% E. Attract Customers 0% 40% 30% 10% F. Targeted on high potential leads 10% 20% 40% 10% G. Be profitable 90% 20% 80% 20%

18 Evaluation Digital Tools other Platforms LinkedIn A. Creating Trust 90% 60% 60% B. Showing Expertise 100% 80% 20% C. Showing Capabilities 90% 60% 20% D. Be Visible 80% 50% 40% E. Attract Customers 80% 60% 40% F. Targeted on high potential leads 90% 50% 30% G. Be profitable 90% 60% 40%

19 Conclusion There is no way around digitization today. It is important to be well informed about the different options and to make the right decision for your company. Doing nothing is certainly not the right decision.

20 THANK YOU.

21 CONTACT PHILIPP GRÜNTKER VP Sales FOURSOURCE Group GmbH Source better. Digital. FOURSOURCE Group GmbH Torstr Berlin Germany

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