Sourcing

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Sourcing Strategies for a New World Market
February 18, 2009
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• Sourcing Strategy in 2009
• Heading Into Uncharted Waters

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• The Big Issues

• THE ECONOMY
• CONSUMER CONFIDENCE
• PRICE
• PREDICTABILITY

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• U.S. Economic Situation Increases Pressure to
  Supply More Value to the Consumer
• At the Same Time, Global Financial Crisis
  Increases Pressure on Vendors

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• What Will
• Be the Impact of
• President Obama?

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Top 2009 Issues

• China
• Trade Remedy Cases
• Free Trade Agreements
• Compliance and New Regulations

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China
1 source for U.S. imports 1 source for
apparel imports 1 source for home furnishing
imports
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Major Trade Issues
CHINA Dumping Countervailing Duty Cases Currency
Manipulation Product-Specific Safeguard WTO Cases
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New for 2009

• Monitoring
• Apparel Imports
• from China

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U.S. Apparel Imports from China
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China
Apparel Average Unit Value 2008 2.94 2006
2.85 2005 2.57
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Compliance Issues
Customs Security Consumer Product Safety
Commission Lacey Act
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U.S. Free Trade Agreements Preference Programs
Cumulation Links CAFTA and NAFTA
Korea?
CAFTA (2006)
Panama?
Peru (2009)
Colombia?
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Todays U.S. Sourcing Patterns
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U.S. Apparel Imports
More than 71 Billion From More Than 100
Countries
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Top Apparel Suppliers
Rank Country Market Share
Growth Duty-Free 1 China
34.3 -3.0 - 2 Vietnam
6.7 19.9 - 3 Bangladesh
6.3 6.2 - 4 Honduras
5.8 8.8 93 5 Indonesia
4.8 3.2 - 6 Mexico
4.5 -14.4 83 7 Cambodia
3.9 2.5 - 8 India
3.8 1.7 - 9 El Salvador
3.6 3.2 82 10 Pakistan
3.0 -0.3 -
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Top Apparel Suppliers
Rank Country Market Share
Growth Duty-Free 11 Thailand
2.1 -6.1 - 12 Philippines
1.7 -15.5 - 13 Sri Lanka
1.6 -7.2 - 14 Dominican
Rep. 1.5 -5.9 92 15
Guatemala 1.5 -9.2
54 16 Nicaragua 1.4 15.8
59 17 Hong Kong 1.1 -27.9
- 18 Taiwan 1.0 -19.3
- 19 Malaysia 1.0 1.2
- 20 Jordan 1.0 -8.8 99
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Apparel Unit Value for Top SuppliersYear Ending
November 2008
World 3.15 China 2.94 Vietnam
3.42 Bangladesh 2.40 Honduras
1.96 Indonesia 3.66
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U.S. Apparel Import Unit Values 2004-2008
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Speakers

• Janet Fox
• Vice President, Director of Sourcing
• JC Penney Corporation
• Paula Zusi
• EVP/Chief Supply Chain Officer
• Ann Taylor Stores Corporation
• Joop de Voest
• Apparel Value Chain Leader
• Southern Africa and West Africa Trade Hubs

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Janet Fox

• Vice President, Director of Sourcing
• JC Penney Corporation
• Responsible for international and U.S. based
  sourcing of all Private Brand merchandise for JC
  Penney

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Paula Zusi

• Executive Vice President/
• Chief Supply Chain Officer
• Ann Taylor Stores Corporation
• Responsible for sourcing, manufacturing,
  logistics and distribution activities for Ann
  Taylor

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Joop de Voest

• Apparel Value Chain Leader
• Southern Africa and West Africa Trade Hubs
• Expert on sourcing, market research and
  investment in Sub-Saharan Africa

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Thank You
Contact Info
Julia K. Hughes 202-783-0720 E-mail
j.hughes_at_ids-quota.com