An opportunity for Colombian Shoe Makers.
© Phil Zwibel
All rights reserved
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Phil Zwibel
 43 Years of experience
 Retail Buyer of all categories.
 VP and GM of BATA Canada.
 Won product development awards and
management awards
 Opened offices in Korea, Taiwan and China
 Pioneer importer from Italy, Spain, France,
Greece, Korea and China.
 Produced 1.2 million pairs of shoes in CANADA,
imported 3.5 million pairs
 The Footwear “expert” for Our version of ProExport.
 Starting sales from 6 Colombian shoe factories to
Canada

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Statistic
CANADA
Population
34,000,000
Area
9,984,000
GDP/$ Billion
1.7
GDP/ Per capita
$50,436
Growth 5 yrs
5.80%
FOOTWEAR
CANADA
Production
8,000,000
Imports/Prs.
164,000,000
Imports/Prd’n
2050%
Imports /$
2,089,000,000
Prices
$
12.72
Exports/Prs.
12,000,000
Exports/$
$224,000,000
Prices
$18.00
Consumption
160,000,000
PER CAPITA
4.7
COLOMBIA
46,000,000
1,142,000
0.328
$7,132
24%
COLOMBIA
53,000,000
64,000,000
121%
477,000,000
$
7.45
2,000,000
$ 34,000,000
$15.00
115,000,000
2.5
+ Colombia
135%
+Canada
874%
518%
707%
414%
+Colombia
663%
+ Canada
256%
438%
171%
600%
659%
120%
139%
188%
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Over 90% of
consumption is either
Chinese made or
subcontracted to one
of it’s satellite
countries: Viet-Nam,
Cambodia.
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Winter for 5 months (BOOTS)
 EAGER for Summer so SANDALS are a big
business!
 Imports comprise over 95% of the market.
 China and it’s satellites represent about 90%.
 1985, 169 factories, 43 million pr.
 Imports were 63 % of the market
 Despite years of industry protection through
duties, import restrictions……..
 There are just a few, mostly small scale
factories focused on BOOTS, Waterproof, and
Industrial. THEY ALL ARE BASED ON THE GLOBAL
MARKET AND EXPORT
 They are SPECIALIZED and BRANDED.

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 53%
Ladies, 38% Men’s, 9% Children’s
 Department
stores: 12%
 Discount stores: 18%
 Clothing Stores:10%
 Sporting Goods: 12 %
 CHAIN SHOE STORES: 26%
 Misc: 4%
 INDEPENDENT SHOE STORES: 18%
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 This
1/3 of the market is approached by local
distributors.
 (Larger enterprises can consider hiring direct
agents or setting up a local company.)
 The main question is:
where do your shoes fit into our market?
 Distributors have several lines they sell, have
local agents across a very big country, and
show at the regional shoe shows.
 Our F/W show season starts in January and
runs to March. The S/S season starts in July
and runs to August.
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 What
are the negatives associated with
Chinese production?
 What characteristics of Chinese production
are NOT suited to CANADA?
 What characteristics of our market are WELL
suited to Colombian products?
 What are the positives associated with
Colombian production?
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CHINA and others
 18%
duty
COLOMBIA
 0%
duty
Benefits to Canadians:
 Even
the biggest
buyers are 2 or 3
levels away from
the actual maker.

Additional margin opportunity

Cost savings

Lower Landed costs
 True
one to one
relationship.

Benefits to Canadian’s

Cost savings

Long term relationship with
the ACTUAL maker
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COLOMBIA
CHINA and others
 Absence
of
confidentiality and
exclusiveness
Large scale production
requirements, high
MOQ’s

 TRULY
EXCLUSIVE

Benefits to Canadian’s:

Differentiation, margin
opportunities for all parties

Small to medium scale
production, suited to
our market size.

Benefits to Canadians:

Reduced inventory ,
investment, and RISK.
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COLOMBIA
China and others

LONG lead times


Benefits to Canadian’s
Buy and sell closer to the season
Financing cost savings

Short Transit times



Long Transit Times




Ongoing problems of
on-time product
development
SHORT lead times

Benefits to Canadaian’s
Buy and sell closer to the season
Financing cost savings
Opposite season timing
and local market sales
means collections are
ready EARLY and
market tested!!
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oThe Latino consumer is fashion driven
and “plugged into” the global fashion
world.
oYou make your own collection to suit
this demanding consumer. Expanding
your consumer base will improve your
collections and business.
oSame day Reponses
oShip Through Pacific or Atlantic
oA little over one week transit times.
oSo, we can be smaller, faster, more
reactive and with NO DUTY.
oYou have PRO-EXPORT, and me.
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
Colombia

Other (far east)
COST
$40
Cost
$40
Duty
$0
Duty
$7.12
Freight
$0.40
Freight
$1.00
Misc
$0.40
Misc
$0.50
Landed
$40.80
Landed
$48.62
Wholesale (33%)
$61.20
Wholesale
$72.93
Retail (58%)
$145.00
Retail
$175.00
Explosion
3.6
Explosion
4.4
Lead time
30 -45 days
Lead time
90-120 days
Transit time
30-45 days
Transit time
9 days
Additional Sales
40-60%
Low minimums, direct
connection, exclusive
High minimums, multi layer
Non exclusive
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1. Respond daily
 2. Respond even if it
means asking for
patience
 3. COMMIT to
EXPORTS
 4. Total Quality
Control
 5. Modern Technology

ASK FOR ADVICE
6. Have all of your
“tool-kit”
 7. Pro-active market
research
 8. Pro-active product
development.
 9.Shorten your lead
time.
 10. RESPOND

ALWAYS ASK IF IN DOUBT
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 Email,
skype, English
 Business cards with international codes
 Line list, pictures, sizes, materials, colors
 Swatches
 Understand the INCOTERMS
 Understanding the forms
 website
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Canada: French is an official language,
bilingual packaging and labeling
Customs tariff (NIL)
Packaging and labeling
Import documentation for Canada
Measurement system: Canada = metric
Sizes can be EU.
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Pro forma invoice or order confirmation
to generate letter of credit or deposit
Local freight representative of the buyer.
Commercial invoice
Certificate of origin (Form A)
Packing list
Inspection certificates, if required
Export permits, if required
PRO-EXPORT CAN HELP !!!!
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China and the International brands will continue
to enter Colombia at an ever increasing pace.
You have a well developed shoe industry, NOW,
use it before it goes away like Canada’s did.
SPECILAIZE AND BUILD YOUR BRAND.
You can buy any shoe at any price.
You have some competitive advantages NOW and
you should make the effort NOW.
Use the opportunity to improve your business by
selling to CANADA, and ELSEWHERE…….
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19
USE
Both here and in Canada.
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