Guest Speaker: Jason Prescott
Jason Prescott founded JP Communications INC in 2005 and rapidly established TopTenWholesale.com and Manufacturer.com as the largest US-based B2B global trade network for manufacturers, retailers, department stores, discounters, importers, wholesalers, buyers and brands. A decade later, in 2016, he established the Apparel Textile Sourcing trade show platform with the China Chamber of Commerce for Import & Export of Textile & Apparel to connect the global B2B network of over 2 million with manufacturers around the globe via in-person events. By 2020, the ATS brand has created the fastest-growing trade shows in the industry producing annual events in Miami, Toronto, Montreal, Berlin and virtually.
Jason is active in search marketing models and technology and provides consulting and seminars in around the world for organizations looking to invest in the USA market. He is the author of two best-selling books, Wholesale 101 and Retail 101, published by McGraw Hill as well as articles on business and technology appearing in B2B Online, Omma, IMediaConnection, CEO Magazine, Entrepreneur Online, and been cited in Inc Magazine, Business Week and Forbes Online.
Moderator: Kendall Keough
Kendall Keough is a recent graduate from the University of Delaware (UD) with a Master of Science in Fashion & Apparel Studies. She also graduated from the UD with a Bachelor’s Science in Fashion Merchandising & Honors in 2019. Kendall was a recipient of the 2018 YMA Fashion Scholarship Fund national case study competition. While studying at UD, she also held several leadership positions, including serving as the President of the Synergy Fashion Group between 2018 and 2019. Kendall is the author of several recent papers addressing the U.S. textile and apparel industry and related trade issues, including: Explore the export performance of textiles and apparel “Made in the USA”: A firm-level analysis. (Journal of the Textile Institute, 2020); US-Kenya trade deal – Here’s what the apparel industry wants (Just-Style, 2020); ‘Made in the USA’ textiles and apparel – Key production and export trends (Just-Style, 2020).
Kendall: What has motivated you to get involved in the apparel business, especially running the Apparel Textile Sourcing Trade (ATS) Shows, which has grown into one of the most popular and influential sourcing events today?
Jason: We started our company in 2005 w/ our flagship product – www.TopTenWholesale.com – which is a search engine for wholesale suppliers and products. In 2010 we acquired www.manufacturer.com – a sourcing platform to find global producers and manufacturers. It would be fair to say that never in our wildest imagination did we think we would be producing some of the world’s top sourcing trade fairs in the apparel and textile industry. I’d like to say it was a natural evolution but to be frank the opportunity came up over a cup of tea with a very good friend of mine, Mr. Chen Zhirong – Director for the China Chamber of Commerce for Import & Export of Textiles (CCCT) – in Dec 2015. What started from a cup of tea wound up growing into a trade show company that now produces events 4 cities, 3 countries and 2 continents (Miami, Toronto, Montreal, Berlin).
More than 200 of the world’s top producers of apparel, textiles, accessories, footwear, and personal protective equipment will exhibit virtually at Apparel Textile Sourcing trade shows this fall. Attendance is always free and the interactive event also specializes in seminars, sessions, workshops and panels from experts in the industries of sourcing, fashion, design and retail.
Kendall: COVID-19 is the single biggest challenge facing the textile and apparel industry today. From your observation, how has COVID-19 affected textile and apparel companies’ sourcing practices? What will be the medium to the long-term impact of COVID on textile and apparel sourcing?
Jason: The fallout from the pandemic – particularly in the textile and apparel industry – and how it impacts sourcing, has had such a far-reaching magnitude that it’s still very challenging to figure out how sourcing practices will be impacted. Over the long term, there is no question that this pandemic will speed up near-sourcing, on-shoring, digitization, and real-time production. The interim has resulted in massive layoffs, geo-political uncertainty and a turbulent political atmosphere that has rattled the cages of just about every sourcing director. The industry has seen purchase orders defaulted on, behavior in the supply chain that should not be tolerated, and a general lack of accountability. I also have no question that as we continue to emerge out of the pandemic there will be an advanced focus much more on the global revolution of sustainability, fair labor practices, plus a far-keener eye on the eco-systems in which the textile industry lives and breathes.
Kendall: There have been more heated debates on the future of China as an apparel sourcing base for US fashion companies, especially given the escalating U.S.-China trade war and the COVID-19. What is your view?
Jason: It should be noted that more than a billion dollars of trade in the textile sector in China was lost in export shipments to the USA during the first half of 2019 – primarily due to the trade war. The pandemic has since crippled exports of textile and apparel – in not just China – but also in every sourcing region on the planet. While many media outlets and others talk about the demise of China as a producer for textile and apparel that is just not the case. The Chinese have built an infrastructure, invested billions of dollars in the best technology, and have mastered the art of production over the last 3+ decades. We must not also forget that much of this infrastructure was built with trillions of dollars by the world’s leading brands, retailers, and governments. To bail on that would not be prudent. The Chinese are extremely adaptive and there is no question they have taken the time during the pandemic – and I should also note that they have emerged quicker than anyone else from the pandemic – to invest much more in technology, made-to-order, customization, and enhances on sustainable practices by utilizing more renewables.
Kendall: Many studies suggest that fashion companies continue to actively look for China’s alternatives. Do we have a “Next China” yet– Vietnam, Bangladesh, India, Ethiopia, or somewhere else?
Jason: No we do not have a next China yet. The production in many regions that have competent supply chains – like Vietnam – are full and at over-capacity. It should further be noted that a large portion in places like Vietnam are owned in partnerships thru the Chinese. Simply stated, many of the other regions such as Bangladesh, India, and the AGOA regions lack infrastructure and the decades of experience that the Chinese have.
Kendall: Some predict that near sourcing rather than global sourcing will become ever more popular as fashion companies are prioritizing speed to market and building a shorter supply chain. Why or why not do you think the shift to near sourcing or reshoring is happening?
Jason: This is correct. On-demand production, near-sourcing, and the evolution of digitization will of course lead to increased manufacturing domestically. Neither of these options are yet a solution for the high-volume production which is at the heart of the industry. I will agree that the continued emergence of micro-brands, and continually evolving shifts in consumer behavior which generally has resulted in ‘disloyalty’ to brands is another factor that makes on-shoring or near-shoring more attractive.
Kendall: Building a more sustainable and socially responsible textile and apparel supply chain is also growing in importance. From interacting with fashion brands and retailers, can you provide us with some updates in this area, such as companies’ best practices, issues they are working on, or the key challenges that remain?
Jason: The circularity of the industry encompassing the producer, the brand, logistics, and the consumer will continue to evolve in their social responsibilities and awareness of sustainable practices engaged in by the brand. There are great organizations out there like WRAP, TESTEX and Better Buying who are growing and have a much larger voice than what they have had in the past. Post-pandemic, I believe we will see social responsibility as one of the top priorities with so many millions of people displaces from COVID-19.
Kendall: For our students interested in pursuing a career in the textile and apparel industry, especially related to sourcing, do you have any suggestions?
Jason: The top suggestion I can offer is to pursue experience as you are actively engaged in your studies. One of the key elements I can advise of is to take the time and learn culture over language. Having a cultural understanding of the key regions where sourcing occurs will catapult your career and bring significant relationships to the table that you never thought you would have had before. Also, attend trade shows! Walking thru international apparel trade shows – like The Apparel Textile Sourcing – will help you immerse yourself with numerous different nationalities and personalities that you would otherwise never have the chance to meet. Jump on any opportunity you can to go abroad. Especially to regions in Asia and Latin America. Most importantly never forget that your credibility in life is everything and maintain the highest pedigree of integrity as possible.