Welcome to Webinar of FashionNet.Org - The Fashion Market of Canada July 6, 2021 | 10:30 am EST - Portugal Exporta
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Welcome to Webinar of FashionNet.Org The Fashion Market of Canada July 6, 2021 | 10:30 am EST
Your Hosts
Mark Boloten Jan Brabers Melvin Yee
Co-Founder Co-Founder Retail Consultant
FashionNet / FashionNet
Boloten Sales Agency
2
In this webinar you will learn:
▪ State of the Market
▪ Private Label Market
▪ The Growth of Apparel E-Commerce
▪ Wholesale Structure in Canada
▪ How to Enter the Canadian Fashion Market
▪ Next steps to success
3
Canada
● Population - 38 million
● Population in urban centres - 82%
● Population living within 150 km of the US border - 90%
● Land mass - 9,900 million square KM
● Similar Market to the US
● Diverse customer base spanning from the European
flavour of Quebec to the Outdoor Passion for the West
Coast
4
Post Covid
▪ Re-opening
▪ Positive vibe/vision
▪ Focus on fall/winter
▪ Sorting out stock issue
▪ New brands/suppliers
5
Fashion Retail Professional
Retail Merchandising
Design & Product Development
Global Sourcing
Private Label Consulting
Melvin
Retail Consultant
6
Private Label Market
in Canada
7
CANADIAN MARKET PLACE
■ Private label in Canada is a very strong business with major retailers such as Walmart, Hudson’s
Bay, Mark’s Work Warehouse and Simons
■ There are also successful direct to consumer brands such as Lululemon, Roots, Joe Fresh and
Frank and Oak
■ Canada is home to some major brands who could be potential clients for Portuguese production -
Peace Collective, Tkees, Reigning Champ, Muttonhead
■ Canadians have a greater ‘European' influence with respect to style and taste, which is more
sophisticated.
■ With the global pandemic, it is a reset button for a lot of Canadian retailers and they will not be
quick to return pre pandemic business strategies/models. This will be difficult for Asian
production because Canadian retailers will be looking for better business opportunities to build
their assortments.
8
PRIVATE LABEL DEPARTMENTS SET UP
■ There are 3 groups set up in the private label dept:
○ Design - create the vision, design apparel styles, select fabric quality and colour palette,
○ Global Sourcing - manage all aspects of production and supply chain
○ Buying - select product from design and quantify, manage the daily retail business and
marketing, create the overall business model
■ Design and Global Sourcing work hand in hand but the decision making will vary company to
company. Buying rarely get involved in the selection of vendors or factories in a private brand
setting and would be the least likely group to approach.
■ Depending on what your selling, you can pitch Global Sourcing your production capabilities or
from a product point of view, you can pitch Design department your products.
■ Design usually have final decisions on all products.
9
WHAT ARE YOU SELLING?
■ A product or production ?
○ If you are selling a product, what are the key selling points of the product -
exclusive fabric qualities, unique product construction, specialized garment
finishing.
○ If you are selling production, what are your selling opportunities - short
production times, small minimums, superior production quality
construction.
■ When selling production, have a library of fabrications that you work with to give
the customer an idea of what they can develop with you. Also have styles you have
done for other customers.
10PRODUCT DIFFERENTIATION
■ Products can no longer be just “products”. Your product needs to tell “a story” to entice the
customer. Focus on what makes your product special:
○ Fabrications - pima, Egyptian, Portugese flannel
○ Finish - antimicrobial, moisture wicking, UV protection
○ Make - high SPI , hand stitch finish, styling details
○ Embellishment - in house printing, embroidery, beading
■ Sustainability is a popular trend and has been for many years prior to COVID but has come to the
forefront during the lockdown. Ethical sourcing and sustainable products are important to the
Canadian consumer and are key selling points to retailers.
■ Consider using OEKO-TEX approved suppliers and take advantage of labelling opportunities and
certifications.
11QUESTIONS TO ASK YOURSELF
■ Research potential client online and review their current assortment online and
see if your product would be a fit for their assortment
■ CONSIDERATIONS
○ Styles - Can you execute the styles that they are showing?
○ Fabrication - Can you source similar fabrication qualities?
○ Price - Can you reach their wholesale pricing?
i. Usually private label demands a markup from 60% to 70%. Calculate
30%-40% of their retail prices as a guideline
12HIDDEN FACTORS / COSTS CONSIDERATIONS
■ Multiple samples. Doing private label involves many samples.
■ Factory and social compliance. Must meet company and industry standards and
provide the proper documentation.
■ EDI set up/ compliant. Be able to receive order information electronically.
■ Packaging requirements. Must be able to pack to customer’s standards. The
bigger the client, their requirements will be higher.
■ Communication. You will need dedicated person to be able to respond to all
correspondence in a timely manner.
13HOW TO PREPARE FOR YOUR FIRST APPOINTMENT?
■ Company Synopsis to briefly introduce your company - KISS
○ Company History - how long in business, number of employees, location
○ Product line up with photos
○ Production capacity
○ Production timelines
○ Production Specialties
○ Current customers
○ Photos of production facilities
○ Marketing assets
■ It is a reminder of who you are and what you can do for them.
14HOW TO PREPARE FOR YOUR FIRST APPOINTMENT?
■ Samples. Your samples must be impeccable. This is your calling card and could lead to sales.
○ Consider style and colour for presentation and who is the customer.
○ Relevant samples for the customer ie: Men’s styles for Men’s customer not a women’s
style that can be adapted.
○ Samples showing factory capabilities or specialties
○ Consider how you going to tell “your story” to the customer. Edit the sample overview
because too many samples become overwhelming.
■ Fabrications. Have all fabrications that you use and the colour cards.
15HOW TO PREPARE FOR YOUR FIRST APPOINTMENT?
■ Pricing. Be ready with a realistic costing in the initial meeting on key samples to give customer
an idea of cost with the caveat that it will change based on their specifications.
○ Discuss their procedure on how to do private label business (as discussed in hidden
factors) such as samples, packaging requirements and marketing incentives as this will
impact the cost
○ Request a tech pack to cost and make a sample. This will give all the details with garment
specification and packing instructions.
■ Follow up. Be accurate and timely in quoting prices and sending samples to maintain their
interest.
○ Be prepared to be able to get samples and prices back to the customer within a two
weeks latest.
○ Communication is key.
16Apparel
E-Commerce
17E-Commerce Data
18Growth in E-commerce
2019 2020
April 3,8% 11,4%
June 5,6% 10%
September 5,8% 11,1%
October 6,7% 13,6%
19Key Figures
2.9bn 18.6bn
CAD 78% CAD
Monthly Retail E-Commerce Shares of online purchases via Sales Revenue from Mobile
Sales Value in Canada Computer in Canada Devices in Canada in 2019
20E-Commerce
▪ Most webshop - major department stores
▪ Mono brand shops
▪ SSENSE
▪ The Bay - Marketplace
21E-Commerce Setup
▪ Distributor
▪ 3PL
▪ Drop shipping
▪ Marketing needed
When having warehouse in Canada, you can ship to US tax free when under 800$
22Wholesale
Structure
in Canada
23Wholesale Structure ▪ Agency > 12-15% ▪ Distributor > whs-35% ▪ B2B platform ▪ Directly to major retailers
Import Requirements ▪ CETA ▪ Bi-langual labelling ▪ CA number
Breaking into the Canadian Fashion Market
How to enter the Canadian Fashion Market
1) Find a like-minded partner with a customer base that relates to your customer base
2) Decide which business practice works best for your needs, agents per territory or distribution partner
to cover the Country
3) Along with FashionNet negotiate a fair deal keeping in mind that both parties are becoming partners
for a long standing partnership
4) Establish the sales and delivery windows and arrange for samples to be supplied
5) Provide all marketing assets along with a full description of how your brand would like to receive
orders and payments
6) Along with FashionNet set sales goals and budgets for the upcoming seasons
27Next Steps to Success
FashionNet’s Services:
▪ Market Research
▪ Right Partners
▪ Communication
▪ Work in Partnership
28_Thank You!_
Mark Boloten | Jan Brabers
Melvin Yee
FashionNet.org
myeeyyz@gmail.com
jan@fashionnet.org
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