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TRANSCRIPT
Stra
tegi
cO
verv
iew
on
Glo
bal T
extil
e&
App
arel
Supp
ly C
hain
sDy
nam
ics
Adv
isors
to
the
wor
ldTe
xtile
,A
ppar
el&
Fash
ion
Indu
stry
© 2
007
© 2
007
The
cont
ents
of t
his
pres
enta
tion
may
not
be
copi
ed o
r circ
ulat
eTh
e co
nten
ts o
f thi
s pr
esen
tatio
n m
ay n
ot b
e co
pied
or c
ircul
ate d
in p
art o
r d
in p
art o
r en
tiret
y w
ithou
t the
exp
ress
writ
ten
perm
issi
on o
f Wer
ner I
nter
nen
tiret
y w
ithou
t the
exp
ress
writ
ten
perm
issi
on o
f Wer
ner I
nter
n atio
nal
atio
nal
www.wernerinternational.com 2
!W
erne
r is
a m
ana
gem
ent
cons
ultin
g pr
actic
e gl
obal
ly
act
ive
since
193
9, fo
cuse
d ex
clus
ivel
y on
ass
istin
g th
e te
xtile
, ap
pare
l an
d fa
shio
n in
dust
ryin
im
prov
ing
its
per
form
anc
e an
d o
ptim
ising
its a
ctiv
ities
.
!W
erne
ris u
niqu
e, c
omb
inin
g sp
ecia
lised
exp
ertis
e in
all
tech
nica
l a
reas
of
th
e su
pply
ch
ain
with
gl
obal
m
arke
ting
know
-how
and
exc
eptio
nal n
etw
orki
ng.
!W
erne
rop
erat
es
thro
ugho
ut
the
wor
ld
with
an
in
tern
atio
nal
team
of
hi
ghly
sp
ecia
lized
se
nior
co
nsul
tant
san
d r
egio
nal
or n
atio
nal
rep
rese
nta
tives
co
ordi
nate
d
thro
ugh
thre
e op
erat
iona
l of
fices
in
Br
usse
ls, W
ashi
ngto
n an
d Be
ijing
.
Wer
ner I
nter
natio
nal
www.wernerinternational.com 3
TE
CH
NIC
AL A
REA
!Be
nchm
arki
ng fo
r all
man
ufac
turin
g ac
tiviti
es!
Prod
uctiv
ity im
prov
emen
ts &
con
trol
!Pr
oduc
t Dev
elop
men
t man
agem
ent
!To
tal Q
ualit
y m
anag
emen
t!
Man
ufac
turin
g st
anda
rds a
nd c
ontro
l!
Prev
entiv
e m
aint
enan
ce!
Stan
dard
cos
t sys
tem
des
ign
!Su
perv
isor &
ope
rato
r tra
inin
g pr
ogra
m!
Man
agem
ent t
rain
ing
and
deve
lopm
ent
!So
urci
ng s
trate
gy a
nd su
pplie
rs a
ccre
dita
tion
!M
anag
emen
t Inf
orm
atio
n Sy
stem
s!
New
pla
nt st
art-
up
Wer
ner S
ervi
ces
www.wernerinternational.com 4
MA
RK
ET
ING
AN
D S
TR
AT
EG
Y A
RE
A
!M
arke
t int
ellig
ence
and
stra
tegi
c m
arke
t ana
lysis
!A
udit
e be
nchm
arki
ng f
or t
he m
arke
ting,
bra
ndin
g an
d re
taili
ng a
reas
!To
p M
anag
emen
t tra
inin
g!
Partn
ers
sear
ch!
Acq
uisit
ions
e J
oint
Ven
ture
s!
Stra
tegi
c Bu
sines
s Pl
anni
ng!
Deve
lopm
ent o
f Glo
bal s
ourc
ing
stra
tegi
es!
Mar
ketin
g St
rate
gies
!M
erch
andi
sing
man
agem
ent
!Re
tail
man
agem
ent
!Br
and
deve
lopm
ent
Wer
ner S
ervi
ces
www.wernerinternational.com 5
Som
e C
usto
mer
s�!
Ove
r 65
year
sof
con
sulti
ng in
text
ile/a
ppar
el/f
ashi
on in
dust
ry!
Ove
r 5,0
00as
signm
ents
car
ried
out
!Pr
esen
ce in
mor
e th
an 6
5 co
untri
es
www.wernerinternational.com 6
"P
ersp
ecti
ve 1
:
A g
loba
l in
dust
ry m
atu
re f
or
grow
th o
uts
ide
trad
itio
nal
w
este
rn m
arke
ts
www.wernerinternational.com 7
"Si
nce
2005
, th
e w
orld
te
xtile
an
d ap
pare
l in
dust
ry
has
acce
lera
ted
in
its
com
plex
tra
nsfo
rmat
ion
"A
ne
w
wor
ld
of
com
petit
ors
(but
al
so
cons
umer
s) h
as e
nter
ed t
he g
loba
l m
arke
t w
ith t
heir
impr
essiv
e ca
pabi
litie
s an
d w
ill t
o gr
owth
"By
20
10
Chi
nais
expe
cted
to
re
pres
ent
40/4
5%of
glo
bal t
rade
, Ind
ia 1
7/20
%
Pers
pect
ive
-1
www.wernerinternational.com 8
"De
spite
its
im
pres
sive
grow
th
trend
,C
hina
�s r
ising
cos
ts a
nd p
erce
ived
risk
s ar
e cr
eatin
g re
leva
nt
oppo
rtuni
ties
for
othe
r low
cos
t cou
ntrie
s"
Indi
ais
rapi
dly
expa
ndin
g its
rol
e w
ith a
n he
avy
wea
ve o
f new
cap
acity
bui
ld-u
p in
ve
rtica
l int
egra
tion
"Pa
kist
an,
Viet
nam
, C
ambo
dia
and
Bang
lade
shar
e le
vera
ging
on
thei
r lo
w
man
ufac
turin
g co
sts
and
build
ing
up m
ore
text
ile c
apac
ity
Pers
pect
ive
-1
www.wernerinternational.com 9
"Eg
ypt
is cu
rrent
ly l
ooki
ng a
t te
xtile
s w
ith n
ew
emph
asis
"Tu
rkey
is
beco
min
g a
criti
cal
regi
onal
pla
yer,
clos
ely
conn
ecte
d to
Ita
ly,
repo
sitio
ning
an
d cr
eatin
g a
num
ber o
f new
regi
onal
bra
nd p
laye
rs(T
urqu
ality
)"
East
ern
Euro
pean
cou
ntrie
s, d
ue t
o th
eir
grow
ing
cost
s ar
e ra
pidl
y re
focu
sing
and
repo
sitio
ning
on
high
er m
arke
t seg
men
ts"
Sout
h an
d C
entra
l A
mer
ica
mai
ntai
n a
rele
vant
fo
cus
on te
xtile
"Ita
ly s
tilld
efen
ds it
s ro
le in
the
luxu
ry s
egm
ents
Pers
pect
ive
-1
www.wernerinternational.com
10
Impo
rts P
enet
ratio
n in
Wes
tern
Mar
kets
199319941995199619971998199920002001200220032004200520062007200820092010
40%
50%
60%
70%
80%
90%
GERMANY
USA
CANADA
IMPO
RT
PEN
ETR
ATIO
N T
EXTI
LES
& C
LOTH
ING
www.wernerinternational.com
11
Mat
ure
USA
App
arel
Mar
ket
051015202530 1989
1991
1993
199519
97
1999
2001
2003
2005
2007
2009
Billion SME
Dom
estic
Impo
rts
www.wernerinternational.com
12
Mat
ure
EUA
ppar
el M
arke
t
Cons
umpt
ion
of C
loth
ing
EU-1
5
020406080100
120
1990199119921993199419951996199719981999200020012002200320042005200620072008200920102011
Billion EURO
Imports
Domestic
www.wernerinternational.com
13
"W
hile
T&
A
cons
umpt
ion
in W
este
rn m
arke
ts
grow
s m
oder
atel
y,
impo
rts
have
al
mos
t re
ache
d 85
-90%
of to
tal c
onsu
mpt
ion
"W
e m
ust n
ow fa
ce th
e im
pact
of t
he c
apac
ity
bubb
lebu
ilt in
ant
icip
atio
n of
mar
ket o
peni
ng
and
quot
a re
mov
al a
nd c
reat
ing
a de
flatio
nary
en
viro
nmen
t"
How
ever
, th
e tim
e ga
p be
twee
n th
e po
sitiv
e an
d ne
gativ
e ef
fect
s of
lib
eral
izatio
n is
too
ofte
n dr
ivin
g us
to fo
rget
abo
ut th
e re
al m
issio
nof
trad
e lib
eral
izatio
n
Pers
pect
ive
-1
www.wernerinternational.com
14
Per C
apita
Con
sum
ptio
n
PE
R C
AP
ITA
TEX
TIL
E C
ON
SU
MP
TIO
N
6.8
17.7
218.
54.
55.5
42.
8
05
1015
2025
GLO
BA
L A
VE
RA
GE
DEV
ELO
PE
D C
OU
NTR
IES
AV
ERA
GE
US
A
JAP
AN
DE
VELO
PIN
G C
OU
NTR
IES
AV
ERA
GE
CH
INA
PA
KIS
TA
N
IND
IA
Kg
per
pers
on
www.wernerinternational.com
15
Wor
ld C
onsu
mpt
ion
Gro
wth
WOR
LD T
EXTI
LE &
APP
AREL
TRA
DE
010
020
030
040
050
060
070
080
090
0
1980
1982
1984
1986
1988
1990
1992
1994
1996
1998
2000
2002
2004
2006
2008
2010
2012
2014
BN US$
380
BN
$
800
BN
$?
www.wernerinternational.com
16
The
futu
re g
loba
l mar
ket f
or te
xtile
and
ap
pare
l is
expe
cted
to w
itnes
s a
rele
vant
ex
pans
ion
than
ks to
:"
Con
sum
ptio
n gr
owth
in n
ew m
arke
ts"
Glo
bal e
xpan
sion
of M
oder
n re
tail
spac
e
"Ea
ster
n Eu
rope
and
ex
Russ
ian
bloc
k"
Turk
ey a
nd M
iddl
e Ea
st"
Sout
h Ea
st A
sia
"In
dia
"C
hina
"So
uth
Am
eric
aNew
Mar
kets
www.wernerinternational.com
17
Reta
il Ex
pans
ion
Acr
oss
Euro
peN
ew r
etai
l su
rfac
e 2
00
6-2
00
8 -
IND
EX
www.wernerinternational.com
18
"C
omm
oditi
es B
ubbl
e"
Hege
mon
ic r
ole
of I
ndia
& C
hina
w
ith th
eir i
nteg
rate
d su
pply
cha
ins
"N
eed
for
diffe
rent
iatio
n to
sus
tain
pr
emiu
m p
rodu
cers
(Ita
ly �
turk
ey)
"C
ontin
uous
fig
ht
for
com
mod
ity
mar
kets
and
cos
t lea
ders
hip
"Bo
om o
f air/
sea
ship
men
ts
Reca
pG
loba
l Ind
ustry
www.wernerinternational.com
19
"P
ersp
ecti
ve 2
:
New
ly s
hap
ed g
loba
l su
pply
an
d va
lue
chai
ns
www.wernerinternational.com
20
MEG
A R
ETA
ILER
SW
AL
MART,
CARREFO
UR �
QU
ICK
FA
SH
ION
R
ETA
ILER
SZ
AR
A,
H&
M�
MEG
AB
RA
ND
SN
IKE,
LEVI�S,
WALT
DIS
NEY,
JON
ES,
DKN
Y
NIC
HE
BR
AN
DS
Zeg
na,
Faco
nnab
le,
Max
Mar
a
LU
XU
RY
BR
AN
DS
Gucc
i,Ysl
,Pr
ada,
Arm
ani,
PRL
WESTERN
FASH
ION
TEXTIL
ES
SO
UR
CIN
G &
MER
CH
AN
DIS
ING
NETW
OR
KS
(Li &
Fung)
LO
W C
OS
TV
OLU
ME
PA
RTN
ER
S
MARKET C
HAM
PIO
NS
SU
PP
LY
P
LA
TFO
RM
S
CH
AIN
SG
AP,
ESPRIT
, BEN
ETTO
N,
MEXX�
SU
PPL
Y C
HAIN
S
SP
EC
IALTY
D
ED
ICA
TED
MID
CO
ST
P
RO
DU
CE
RS
LO
W C
OS
T
PR
OD
UC
ER
S
REM
OTE
P
RO
XIM
ITY
Glo
bal S
uppl
y C
hain
Mod
els
www.wernerinternational.com
21
Glo
bal S
uppl
y C
hain
Mod
els
MEG
A R
ETA
ILER
SW
AL
MART,
CARREFO
UR �
QU
ICK
FA
SH
ION
R
ETA
ILER
SZ
AR
A,
H&
M�
MEG
AB
RA
ND
SN
IKE,
LEVI�S,
WALT
DIS
NEY,
JON
ES,
DKN
Y
NIC
HE
BR
AN
DS
Zeg
na,
Faco
nnab
le,
Max
Mar
a
LU
XU
RY
BR
AN
DS
Gucc
i,Ysl
,Pr
ada,
Arm
ani,
PRL
WESTERN
FASH
ION
TEXTIL
ES
SO
UR
CIN
G &
MER
CH
AN
DIS
ING
NETW
OR
KS
(Li &
Fung)
LO
W C
OS
TV
OLU
ME
PA
RTN
ER
S
MARKET C
HAM
PIO
NS
SU
PP
LY
P
LA
TFO
RM
S
CH
AIN
SG
AP,
ESPRIT
, BEN
ETTO
N,
MEXX�
SU
PPL
Y C
HAIN
S
SP
EC
IALTY
D
ED
ICA
TED
MID
CO
ST
P
RO
DU
CE
RS
LO
W C
OS
T
PR
OD
UC
ER
S
REM
OTE
P
RO
XIM
ITY
orch
estr
ate
mer
chan
dise
www.wernerinternational.com
22
Prod
uctio
n Vo
lum
e:
Trad
ition
al V
SSt
rate
gic
Pre
WTO
Futu
re
80
%
20
%
20
%
80
%
Transactional
Vendors
Relationship
Strategic
Partnerships
www.wernerinternational.com
24
Valu
e ad
ding
to
day
still
m
eans
�b
ette
r�
prod
ucts
(v
alue
=
diffe
rent
iatio
n)
but
incr
easin
gly
mor
e se
rvic
e-ric
h pr
oduc
ts(v
alue
= s
ervi
ce +
inta
ngib
les)
"Lu
xury
seg
men
ts s
till
heav
ily r
ely
on t
he
Euro
pean
te
xtile
su
pply
ch
ain
for
thei
r ex
clus
ivity
and
diff
eren
tiatio
n re
quire
men
ts
"A
ll ot
her
mar
ket
segm
ents
sh
are
quite
sim
ilar �
intri
nsic
� pr
oduc
ts d
iffer
entia
ted
by
thei
r ser
vice
con
tent
Tran
sfor
mat
ion
ofVa
lue
Cha
ins
www.wernerinternational.com
25
Valu
e is
toda
y cr
eate
d le
ss
and
less
on
in
trins
ic q
ualit
y an
d in
crea
singl
y on
inta
ngib
le
prop
ertie
s:
"Di
ffere
ntia
tion
of s
tand
ard
prod
ucts
"Ex
clus
ivity
"Hy
per r
eact
ivity
"In
nova
tive
& C
reat
ive
inte
grat
ion
"Pa
ckag
ing
and
form
ats
"C
usto
miza
tion
Tran
sfor
mat
ion
ofVa
lue
Cha
ins
www.wernerinternational.com
26
"P
ersp
ecti
ve 3
:
Stra
tegi
c sn
apsh
ots
"Sk
ills
& C
ompe
ten
ces
"Ke
y Tr
ends
www.wernerinternational.com
27
1.O
rche
stra
tors
&
Mer
chan
dise
rs2.
Bran
d m
anag
emen
t3.
Inno
vatio
n4.
Cha
ract
eriza
tion
and
diffe
rent
iatio
n an
d of
st
anda
rds
-Tim
e to
mar
ket
Stra
tegi
c Sn
apsh
ots:
Sk
ills
& C
ompe
tenc
es fo
r Suc
cess
www.wernerinternational.com
28
Supp
ly C
hai
n O
rch
estr
ator
sC
apab
ility
to
orch
estr
ate
frag
men
ted
and
disp
erse
tex
tile
su
pply
ch
ain
s le
vera
ging
on
in
telli
gen
ce,
unde
rsta
ndi
ng,
tech
nol
ogy
and
orga
niz
atio
nal p
ract
ices
Mer
chan
dise
rsC
apab
ility
to
crea
te �
con
sist
ency
�ac
ross
ra
nges
dev
elop
ed a
nd p
rodu
ced
acro
ss t
he
glob
e �
leve
ragi
ng
on
clea
r ra
nge
ar
chit
ectu
re
Stra
tegi
c Sn
apsh
ots
1:
Orc
hest
rato
rs a
nd M
erch
andi
sers
www.wernerinternational.com
29
Ret
ail b
ran
dsG
row
ing
in
im
port
ance
to
cr
eate
di
ffer
enti
atio
n, lo
yalt
y an
d pr
emiu
ms
B2
B b
ran
din
gIn
a
glob
al
wor
ld
of
opti
ons,
la
rge
reta
ilers
and
bra
nds
are
loo
sin
g pr
odu
ct
know
-how
an
d re
ly m
ore
and
mor
e on
B
2B b
ran
ds
Stra
tegi
c Sn
apsh
ots
2:
Re
tail
and
B2B
Bran
ding
www.wernerinternational.com
30
Inn
ovat
ion
Th
e gl
obal
mar
ket
is e
ager
fo
r in
nov
atio
n:
new
pr
odu
cts,
n
ew
inte
grat
ed
syst
ems,
new
app
licat
ion
�
Stra
tegi
c Sn
apsh
ots
3: In
nova
tion
www.wernerinternational.com
31
The
glob
al
indu
stry
de
sper
atel
y n
eeds
fa
st
and
effe
ctiv
e di
ffer
enti
atio
n
and
char
acte
riza
tion
of
sta
nda
rd p
rodu
cts:
addi
ng
valu
e to
st
anda
rd
prod
ucts
at
th
e la
test
st
age
poss
ible
+ N
ew n
eed
for
�fas
t�an
d cu
stom
will
soo
n
boom
wit
h in
tern
et �
Zara
mod
el c
han
ging
th
e in
dust
ry
Stra
tegi
c Sn
apsh
ots
4:
Diffe
rent
iatio
n &
Cha
ract
eriza
tion
www.wernerinternational.com
32
1.N
o M
ore
Seas
ons
2.Ex
tern
al fa
ctor
s to
ra
pidl
y ch
ange
sc
enar
ios
3.C
usto
miza
tion
& th
e W
eb
Stra
tegi
c Sn
apsh
ots:
Ke
y Tr
ends
www.wernerinternational.com
33
"G
loba
l War
min
g"
Mul
ti se
ason
al a
ppar
el"
Fast
Fas
hion
con
tinua
l re
new
al (M
ake
old
�sea
sona
l thi
nkin
g�ob
sole
te)
Stra
tegi
c Sn
apsh
ots:
N
o M
ore
Seas
ons
www.wernerinternational.com
34
"Ex
chan
ge ra
tes
$, E
uro,
Yua
n,
Rupe
e�"
Petro
l and
dire
ct im
pact
of M
MF
& A
ir tra
nspo
rt�"
Polit
ical
situ
atio
n�
�ca
n ch
ange
glo
bal l
ands
cape
an
d su
pply
cha
ins
in a
few
mon
ths
Stra
tegi
c Sn
apsh
ots:
Ex
tern
al F
acto
rs
www.wernerinternational.com
35
"In
tern
et s
ales
rapi
dly
grow
ing
(US
and
north
Eur
ope)
"Fo
cus
on s
peci
fic p
rodu
ct
cate
gorie
s"
Will
be
a re
leva
nt c
hann
el fo
r ap
pare
l sal
es"
Exam
ple:
ww
w.N
IKEi
D.co
m
Stra
tegi
c Sn
apsh
ots:
C
usto
miza
tion
& th
e W
eb
www.wernerinternational.com
36
It is
goin
g to
be
a ch
alle
ngin
g gl
obal
mar
ket f
ull o
f thr
eats
bu
t also
full
of in
cred
ible
op
portu
nitie
s
It is
goin
g to
be
a ta
lent
in
tens
ive
mar
ket w
here
tale
nt
will
be
key
succ
ess
fact
or
Fina
l Mes
sage