Enhancing the export competitiveness of the T&C sector The Global Textiles and Clothing Programme (GTEX) and the Middle East and Northern Africa Programme (MENATEX) in Egypt, Jordan, Morocco and Tunisia
Overview 2 4 year programme from: 2018 2021 MENATEX GTEX
Results Framework 3
Added Economic Value GTEX Theory of Change Capturing the value in apparel GVCs 4 Capturing more value by providing additional services to buyers and retailers R&D Post-sales & Retail Services Design Marketing & Branding Sourcing & Logistics: Compliance Logistics & Distribution Production Reduce costs increase productivity Services Production incl. social & environmental sustainability Services
Prices in Euro Per KG EU import price development for clothing products 5 Import Prices in EU for Clothing from 1990-2017 (Euro/Kg) 19 18 17 17.1 17.2 17.3 17.1 18.3 17.4 16.9 18.2 17.3 17.2 16 16.3 15.8 15.6 15.8 15 14 14.3 14.0 14.0 14.4 13 12.7 13.1 13.1 13.0 13.5 13,1 12 1990 1997 1998 1999 2000 2001 2002 2003 2004 2005a 2005b 2006 2007 2008 2009 2010 2011 2012 2013 2104 2015 2016 2017 Years Source: Textile Outlook International Prices of Clothing Linear (Prices of Clothing) L'érosion monétaire calculée à partir des indices d'inflation: http://mon-convertisseur.fr
Prices in Euro Per Piece 6 EU import price development for men s trousers Import Prices in EU for Men's Trousers from 1990-2017 (Euros/piece) 9 8.5 8 7.5 7 6.5 6 5.5 5 8.5 8.5 8.3 7.8 7.9 7.7 7.4 7.1 6.8 6.8 6.7 6.7 6.3 6.3 6.2 6.0 5.9 5.8 5.6 5.6 5.5 1990 1994 2000 2001 2002 2003 2004 2005a 2005b 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 5.1 Years Source: Textile Outlook International Prices of Men's Trousers L'érosion monétaire calculée à partir des indices d'inflation: http://mon-convertisseur.fr
Prices in Euro Per Piece EU import price development for women blouses 7 Import Prices in EU for Women's Blouses from 1990-2017 (Euros/piece) 6.8 6.3 6.3 5.8 5.3 4.8 4.3 3.8 5.6 5.7 5.3 5.2 5.1 5.1 5.0 5.0 4.7 4.7 4.6 4.5 4.5 4.4 4.4 4.3 4.3 4.3 4.1 4.1 1990 1994 2000 2001 2002 2003 2004 2005a 2005b 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 Years 3.9 Source: Textile Outlook International Prices of Women's Blouses (Category 7) L'érosion monétaire calculée à partir des indices d'inflation http://mon-convertisseur.fr
8 EU import price development for denim trousers 9.5 Prices of men's denim trousers 2005-2017 (Euros/piece) 9 8.85 8.5 8.57 8.57 8.22 8 7.82 7.91 7.5 7 7.36 7.06 6.5 6.57 6 2005 2010 2012 2013 2014 2015 2016 2017 Source: Textile Outlook International L'érosion monétaire calculée à partir des indices d'inflation: http://mon-convertisseur.fr
US$/sme US Import Price Developments 1983-2017 9 US Imports of T&C 2.5 2.4 2.41 2.35 2.4 2.31 2.33 2.3 2.2 2.2 2.23 2.18 2.14 2.1 2 1.9 1.8 1.89 1.83 1.77 1.75 1.79 1.81 1.85 1.74 1.88 1.8 1.77 1.7 1.65 1.68 1.67 1.63 1.6 1.5 198319891994 1995 1996 1997 19981999 2000 2001 2002 20032004 2005 2006 2007 2008 20092010 2013 2014 201520162017 Source: Textile Outlook International; OTEXA 1.05
US$/SME 10 US Clothing Import Price Developments 1983-2017 US Import Prices for Clothing 3.7 3.65 3.57 3.5 3.3 3.12 3.18 3.17 3.15 3.25 3.24 3.21 3.19 3.13 3.1 2.96 3 2.96 2.9 2.89 2.7 2.5 1990 2000 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 Source: Textile Outlook International; OTEXA 2.51
Price - US $ Per Piece 11 US Unit Price Development MB Cotton Trousers Unit Price Development - Selected US Categories 6.9 6.8 6.6 6.7 6.9 6.3 6.8 6.5 6.4 6.6 6.6 6.5 6.6 6.4 6.2 6.1 6.1 6.1 6.1 5.8 5.8 5.9 5.7 5.3 4.8 1997 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 4.85 Source: Textile Outlook International; OTEXA 347 M/B Cotton Trousers
Prices in US$ per piece 12 US Unit Price Development WG MMF Trousers 5.2 5.14 5.13 5.1 5 4.94 5 4.9 4.87 4.8 4.79 4.7 4.6 4.6 4.5 4.4 4.33 4.3 2005 2010 2013 2014 2015 2016 2017 Source: Textile Outlook International; OTEXA 648 WG MMF Trousers
Added Economic Value GTEX Theory of Change Capturing the value in apparel GVCs 13 Capturing more value by providing additional services to buyers and retailers R&D Post-sales & Retail Services Design Marketing & Branding Sourcing & Logistics: Compliance Logistics & Distribution Production Reduce costs increase productivity Services Production incl. social & environmental sustainability Services
US Apparel Buyers Sourcing Practices USFIA Member Service 14 Source:
Environmental sustainability and the Circular Economy - Where Brands are and Critical Areas for SMEs 1 How important is improving environmental sustainability or circularity in your business decision-making? (please select) Very Quite A little Not at all 21 2 1 1. Input (often energy) efficiency to reduce CO2 emissions 2. Waste reduction, re-use, recycling 3. Water 4. Chemical input reduction (including dyes) is of significant concern 5. Traceability 0ZDHC Zéro rejet de produits chimiques dangereux
Brand Name Sourcing Countries Environmental Priority Standards H&M Tunisia, Morocco By 2020 use 100% sustainably sourced cotton for its products. By 2030 use 100% recycled or other sustainably sourced materials in products. Hugo Boss Egypt Zero Discharge of Hazardous Chemicals (ZDHC) by 1 January 2020. Until 2020: 50% of sustainable cotton used in products Until 2025: 80% of sustainable cotton used in products Levi s Egypt, Tunisia Use 100 percent sustainable cotton Zero Discharge of Hazardous Chemicals (ZDHC) by 1 January 2020. GAP Inc. (Banana Republic,Old Navy, Intermix, Weddington Way, and Athleta) PVH ( Calvin Klein, Tommy Hilfiger, Heritage Brands) Egypt, Tunisia, Jordan Tunisia, Egypt, Morocco, Jordan Zero Discharge of Hazardous Chemicals (ZDHC) in supply chain by 1 January 2020 Eliminate use of fibers derived from wood from ancient and endangered forests By 2021 use 100 % of cotton sourced from sustainable sources Zero Discharge of Hazardous Chemicals (ZDHC) by 1 January 2020 By 2020 use 100 percent more sustainably sourced cotton through the Better Cotton Initiative VF Corporation (Wrangler, Lee, Jordan, Egypt, Tunisia By 2025 All cotton purchased by VF that is not from the U.S. or Australia is grown under a cotton growing sustainability scheme By 2025 use 100% PfC-Free outdoor apparel By 2025 50% of nylon and polyester will come from recycled materials
Added Economic Value GTEX Theory of Change Capturing the value in apparel GVCs 17 Capturing more value by providing additional services to buyers and retailers R&D Post-sales & Retail Services Design Marketing & Branding Sourcing & Logistics: Compliance Logistics & Distribution Production Reduce costs increase productivity Services Production incl. social & environmental sustainability Services
Long-term strategic sector-wide approach and supportive Institutional Ecosystem Sector development strategy, resourced and supported by the public and private sector Institutional support that responds to industry s requirements and is able to change with changing requirements Institutional Eco-system that provides a holistic support structure for enterprises Regional linkages could be the door to new markets 18
Regional component jointly filling the China gap Major apparel suppliers to the European Union in 2017 by market share If China looses 10% of its markets share, who will fill the gap? Myanmar Indonésie 1% 2% Sri Lanka 2% Pakistan 3% Vietnam 4% Cambodge 5% Inde 6% Autres 9% Turkey [PERCENTAGE] Maroc 3% Tunisie 3% Bangladesh 19% Chine 31% Other 9% Myanmar Indonésie 1% 2% Sri Lanka 2% Pakistan 3% Vietnam 4% Cambodge 5% Inde 6% [CATEGORY NAME] 3% Maroc 3% Turkey 12% Market share to gain 3% Bangladesh 19% [CATEGORY NAME] 28%
Evolutions des imports de la UE de T&H pendant Jan June 2018 20
US Apparel Buyers Sourcing Practices USFIA Member Service 21 Source:
SUMMARY Before Design Product dev. Sourcing Sampling Manufacturing Shipping Warehousing Distribution Retailing Supplier s Responsibilities Client s Responsibilities Increasing value Design Product dev. Sourcing Sampling Manufacturing Shipping Warehousing Distribution Retailing Circular Design Social and environnemental sustainability CO2 Reductions Now & Future 22
THANK YOU 23 Matthias Knappe Administrateur principal de programme Fibres, textiles et vêtements International Trade Centre (ITC) www.intracen.org knappe@intracen.org