STEPHANIE ECKART TAYLOR WIESE JENNIFER WILLIAMS
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1 EGYPT STEPHANIE ECKART TAYLOR WIESE JENNIFER WILLIAMS
2 EGYPT CAIRO SPHINX
3 EQYPT FACTS GDP- $192.6 billion in 2008 Population-81,527,172 Language- Arabic $2.4 billion worth of merchandise is exported to the US a year. The apparel/textile industry accounts for 25% of jobs in Egypt. Cotton exports makes up about 25% of the countries exports At one time (1980 s) Egypt held about 80% of the cotton market share.
4 BACKGROUND INFORMATION Egypt has nearly 2000 years of history. Most populated county in Africa. Egypt is located on the North Eastern border of Africa Surrounded by: Mediterranean Sea to the North Sudan to the South Libya to the West Israel, Jordan, and Saudi Arabia to it s East
5 IMPORT PRODUCT PROPOSAL TO THE U.S. Americans used approx. 76lbs of cotton per capita in Cotton accounts for 64% of all fibers used in apparel in the United States. Egyptian cotton is mostly found in Home Furnishings (bed sheets and linens) The United States uses a lot of cotton. Egyptian cotton only comes from Egypt.
6 MAPS OF EGYPT
7 EGYPTIAN ECONOMY Top Import from US ~ corn Top Export to US ~Natural Gas Cotton industry was developed in the 1810 s. Quickly industrialized the country and brought the credit system to Cairo. Most of the Egyptian population live as close to the Nile River as possible. These regions are the most urbanized and is where the jobs are. Reported a 5.8% economic growth for the first quarter of 2010.
8 TARGET MARKET DEMOGRAPHICS years old White collar workers Own a home Own a car College educated Single or Married May or may not have children Income: Willing to invest in quality garments for their wardrobe Goes out to dinner 3 + times a month PSYCHOGRAPHICS Has a busy social life Attends business meetings Likes to Travel
9 EGYPTIAN COTTON IMPORT OUR PRODUCT: MEN S DRESS SHIRTS
10 EGYPTIAN COTTON IMPORT ALMATEX TEXTILE COMPANY The mill produces 100% pure combed cotton yarns in the English count 30 to 80s, single and twisted (TFO). Almatex produces shirts, sheets, home fabrics and special needs fabrics. VERTICAL MANUFACTURER
11 DIRECT COMPETITION NORDSTROM $95.00 Tonal herringbone textures a spread-collar dress shirt cut from Egyptian cotton woven in Italy. French-front button placket. Chest pocket. Mitered barrel cuffs. Double back pleats. Slightly curved shirttail hem. Egyptian cotton; machine wash. By John W. Nordstrom ; imported. Men's Furnishings.
12 EGYPTIAN COTTON IMPORT MEN S BUTTON-UP SHIRTS OUR GARMENT $75.00 Egyptian cotton twill elevates a French-front dress shirt designed with a straight collar and mitered single-button barrel cuffs. Front button closure. Removable collar stays. Chest pocket. Split-yoke construction. Double back pleats. Slim fit Egyptian cotton; machine wash
13 COST BREAK DOWN First cost= $15.00 Duties- 3%/kg Wholesale- $30.90 Retail- $75.00 Markup of: 44.10
14 IMPORT STRATEGIES IMPORT STRATEGIES IMPORTING The best way to import Egyptian cotton into the United States would be through sea shipments. The best relationships needed to make the import a success would be through the Qualified Industrial Zones Agreement (QIZ) We will ship these garments through the Alexandria, Egypt seaport, & plan to sell these garments in Nordstrom s headquarters in Seattle, Washington, USA
15 TARIFFS I Woven fabrics of cotton, containing 85%+ by weight of cotton, weighing not more than 200g/m dyed (cont): Plain weave, weighing 100+ g/m certified hand-loomed fabrics o o HARMONIZED TARIFF SCHEDULE Rates of Duty: General=3% Special= Free ANTI-DUMPING WTO Anti-Dumping Agreement: an imported product sold in Egypt for less than the exporting country s selling price and/or under the total cost If dumping threatens the Egyptian domestic industry(ies) anti-dumping measures would be implemented by the Egyptian government
16 TARIFFS II SUSIDIES AND COUNTERVAILING SAFEGUARDS WTO Subsidies and Countervailing Measures Agreement: any financial contribution provided by an importing country s government &/or any public body providings benefits to the party receiving subsidies WTO Safeguards Agreement: temporarily restricts imported products that threatens the Egyptian industry(ies) Safeguards are implemented by the Egyptian government If subsidies causes threat to Egyptian industry(ies), countervailing duties would be implemented by Egyptian government
17 TRADE AGREEMENTS AND QUOTAS Signed in 1994 Qualified Industrial Zones Agreement (QIZ) Allows qualifying products, manufactured by qualifying companies, operating out of designated Egyptian locations, with the Israeli content of 11.7%, duty-free entry into the United States 2005: 7 designated industrial zones, with 397 qualified companies Today: 15 designated industrial zones, with 700 qualified companies Egypt signed a Trade and Investment Framework (TIFA) Signed in the 1990s Expands trade and investment by facilitating the exchange of goods and services to promote a longterm commitment between the United States and Egypt Success of both the QIZ and TIFA gives hope for a Fair Trade Agreement FTA between the United States and Egypt in the near future
18 THANK YOU STEPHANIE ECKART TAYLOR WIESE JENNIFER WILLIAMS
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