Tag: Education

FASH455 Exclusive Interview with Jason Prescott, CEO of Apparel Textile Sourcing Trade Shows

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).

Interview highlights

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.

-END-

Textile and Apparel as an Academic Discipline

This video is a joint effort by faculty in the textile and apparel (T&A) programs across the country, hoping to inspire critical thinking on the future of the T&A academic discipline and help others know better about what we are doing in terms of teaching and scholarships.

This video, produced by the Economist, highlights the changing nature of the fashion industry driven by material science and data science.

How to Save “Made in NYC”: Sewing Skill or New Technology?

The video is a recorded panel discussion hosted by the Texworld USA in July 2015 on the topic of apparel “Made in NYC”. Most panelists have years of experiences working in NYC as a fashion designer, including:

  • Eric Johnson, Director, Fashion & Arts Teams Center for Economic Transformation, NYC Economic Development Corporation
  • Erin Kent, Manager of Programs at The Council of Fashion Designers of America (CFDA)
  • Michelle Feinberg, NY Embroidery Studio
  • (The event was moderated by Arthur Friedman, Senior Editor, Textiles and Trade, WWD)

According to the panelists:

  • “Made in NYC” have a bright future in two niche markets: sample production for fashion designers and high-quality craftsmanship clothing. As one panelist put it “Designer needs to have tangible garment to show to the buyer”. However, there is no mention about “Made in NYC” serving the mass market in the discussion.
  • Two factors are regarded as critical to the survival of “Made in NYC”: training more professions with sewing skills and investing/upgrading equipment and technologies.
  • In support of the development of the local apparel manufacturing sector, several initiatives funded by the city government and private sources have been launched, including NYC Fashion Production Fund (provide financial support to young fashion designers), Fashion Manufacturing Initiative (support purchasing equipment and skill training) and Design Entrepreneurs NYC (equip fashion designers with the skills they need to successfully run a fashion label, including marketing, operations, and financial management).

However, the future of “Made in NYC” is not without major challenges:

  • One panelist lament that “fashion schools do not teach students much on how to make things”. However, another truth is college students today face a high opportunity cost of spending times on practicing sewing skills. This is particularly the case when most fashion jobs available for college graduates in the U.S. are business or merchandising focused. The constant upgrading of technology and manufacturing equipment in the fashion industry further raise the question as to whether learning traditional sewing skills is a worthwhile investment.
  • The brand image of “Made in NYC” overall is still less prestigious than “Made in Italy” and “Made in France” in the eyes of consumers.
  • Fashion designers in NCY heavily rely on imported fabrics (including those imported from Europe) today. Some questions can be asked: what is the meaning of clothing “Made in NYC” in the 21st century global economy? Should NCY promote the development of local textile manufacturing? If so, how to make it happen? Or should fashion designers in NCY support lower tariff rate and removal of trade barriers on imported fabrics?

Background (adapted from the New York City Economic Development Corporation)

New York City’s fashion industry employs 180,000 people, accounting for 6% of the city’s workforce and generating $10.9 billion in total wages, with tax revenues of $2 billion. An estimated 900 fashion companies are headquartered in the city, and in 2012, there were 13,800 fashion establishments here. Home to more than 75 major fashion trade shows plus thousands of showrooms, New York City attracts hundreds of thousands of visitors each year.

Apparel Industry is Not All about Labor Cost

While most discussions on improving corporate social responsibility practices in the apparel industry still focus on conventional solutions like higher labor standards and more effective monitoring programs, a recent Boston Consulting Group report suggests supply chain innovation also has its role to play.

One key argument of the report is: Although cost still matters in apparel sourcing, lower-cost can be achieved through means other than seeking cheap labor. For example:

1

Engendering end-to-end supply chain efficiency through managing raw materials. Apparel companies may work with their suppliers further down the supply chain to optimize fabric selection, which usually account for as much as 60-70 percent of the total cost of a finished garment (v.s. 30-40 percent of labor cost). Some apparel companies have started to use fewer yarns and weight classes so as to reduce fabric count and lower down sourcing cost. Some other companies are realizing significant cost reduction by timing orders so as to level the load over the course of the year. [Note: looks like Uniqlo’s model]

2

Building an integrated supply chain. As cited in the report, to balance sourcing cost and speed to market, one major apparel retailer builds 15 to 20 percent of the season’s styles and pre-positions about two-thirds of its raw material before the season (both in-house and from production partners). During the season, the company analyzes sales, staying in constant communication with its stores and with the design team. It resupplies items that are selling well through accelerated production and delivery, usually within three to four days. Designers then create new styles by adapting the best sellers using the pre-positioned material. [Note: looks like Zara’s model]

Innovating ways of production. The report suggests that bonding and gluing technologies (i.e. use bonded adhesive films and processes such as ultrasonic heating and high-frequency radiation to fuse together layers of fabric) can produce an entire small garment in 30 to 40 percent less time than conventional cut-and-sew. Digital technologies such as digital prototyping of textile designs can also significantly help apparel makers reduce waste and boost efficiency in pattern making. The potential application of 3D printing may further allow apparel makers to produce smaller batches, and possibly even allow for made-to-order production of individually designed and sized garments. This would not only allow companies to match the market’s growing need for speed, but also reduce the costs of retail inventory surpluses and associated price reductions.

Two additional thinking based on the report:

First, much attention has been given to the changing business environment of the apparel industry, such as rising labor cost in Asia, shifting market growth towards emerging economies and more sophisticated consumers’ demand in the era of omni-channel retailing. But what if the nature of the apparel industry is also changing: if one day labor cost is no longer a key factor in deciding where to produce and apparel production itself is no longer labor-intensive at all? Although automation of apparel production was not achieved in the 20st century, it may not be something totally impossible in the 21st century. We need to have bold thinking here.

Second, while the apparel industry is innovating its business model (i.e. the way to produce, the way to deliver products and the way to serve its customers), T&A educational programs also need to embrace innovative thinking. For example: are traditional course offerings sufficient enough (or still relevant) to prepare students’ job readiness in the 21st century? How to proactively respond to the changing nature of the apparel industry which has started to adopt more and more new technologies? What if we redefine the meaning of “T&A” majors and redesign the model of preparing the workforce for the apparel industry? (just like the question: for wearable technology, shall IT companies make apparel or apparel companies make IT products?)

Study Suggests Positive Social Impact of the Garment Sector on the Lives of Bangladesh Women

While our case study 1 focused on the problem of corporate social responsibility practices in the Bangladesh garment sector, a recent study based on examining 1,395 households in 60 Bangladeshi villages in 2009 suggests that the growth of the garment sector has resulted in positive impacts on the lives of Bangladeshi women.

Specifically, the study finds that:

1) Girls exposed to the garment sector delay early marriage and childbirth at early ages (12-18). Many studies have suggested the negative welfare implications of early marriage and childbirth.

2) Girls exposed to the garment sector gain extra years of education. According to the study, on average, one additional year of working in the garment sector statistically will lead to a 0.48 years of education for girls. The authors further suggest that increased demand for skills in garment factories was one of the main driving forces behind such a positive correlation.

As argued by the authors, in developing countries such as Bangladesh, social policies such as education are often tied to trade policy and industrial policy.

However, one another interesting finding is that the average wage level of respondents working in the garment sector was almost 22% lower than those working in the non-garment sector in Bangladesh.

So, based on our case study and the above research findings, do you have any new thoughts about improving the corporate social responsibility practices in the global apparel industry? Do you think Western retailers shall stop sourcing apparel from Bangladesh because of the reported problem of factory safety and workers’ working condition? Please feel free to share your views.

1

EU Commission: Skills for Jobs in the EU Textile and Clothing Industry to Evolve

In a recent analysis report, the EU Commission foresees that skills needed by jobs in the EU textile and clothing industry will continue to evolve from 2013 to 2025. Specifically, the report argues that:

First, employment in the EU textile and clothing sector is forecast to decline by 13.4% from 2.5 million in 2013 to 2.1million in 2025. Even with shrinking employment levels, because of the need to replace nearly 1 million workers forecast to retire or leave the sector, about 611,000 job openings are anticipated from 2013 to 2025.

Second, employment in the EU textile and clothing sector is no just declined, but also evolved. From 2013 to 2025, demand for “crafted and related occupations” as well as “plant and machine operators and assemblers” will decline 34% and 13% respectively, whereas job openings for “technician and associated professional occupations” are estimated to grow at a modest rate. Among the estimated 611,000 job openings, 93% will require high or medium level qualifications.

Third, in terms of specific skills needed by the EU textile and clothing sector based on where the sector might progress towards 2020:

1) Technical production competencies will remain central to recruitment with increased focus on the demand for versatile staffs that can operate across different workstations.

2) Supply chain management, business, sales and marketing skills (including the skills in international trade) are growing in importance. For many EU textile and clothing companies, “trade has taken place of production”.

3) The EU textile and clothing industry is further expecting skills on technology, innovation and sustainability. Leading technology-led areas include mass customization, 3D body measurement, advanced CAD and eCommerce technologies, internet infrastructures for custom-tailored clothing and business-to-consumer eCommerce among retailers.

2

3

1

Re-shoring, Jobs and Globalization–Perspectives from David Cameron

 

  • How to make a success of globalization and ensure our businesses, our peoples and our societies can benefit from the next phases of globalization?
  • What are the opportunities of re-shoring for the West and how to seize them?
  • How to secure sustainable and well-paid jobs and give people pride in using their skills?
  • Is re-shoring going to bring back all the jobs that were off-shored in the first place?
  • What are the factors that are driving re-shoring?
  • Does reshoring mean the West wins and the East loses?
  • Is there a chance for Britain and US to become the “Re-shore Nations”?

If you care about the questions above, please enjoy the speech given by David Cameron, Prime Minister of the United Kingdom at the 2014 World Economic Forum in Davos. The speech is a great supplement to our discussions this week on globalization.

Moving from “Made in China” to “Design in China”

If you still treat China simply as a low-cost apparel manufacturing workshop or linger on those scenes in the documentary China Blue (produced in 2005), the following story may be a “shock” to you.

During my visit this summer to the Shanghai Silk Group, I was very impressed by how quickly this decades-old company has fundamentally changed its business model, moving away from manufacturing in the past to ambitiously engage in apparel design and branding functions as of today. This is what a 21st century China apparel company actually looks like:

1

Above: The Shanghai Silk Group displayed its indigenous brand “Lily” .

2

Above: A designer is working on a 3D model @ the Shanghai Silk Group.  Each year, the design department of the company will launch around 2,000 new product lines with indigenous intellectual property right.

12

Above: Product booklet of the Shanghai Silk Group. 2 issues/ year.

digital

Above: To strengthen the design capability, the company purchased the digital printer which can directly print patterns on silk fabrics.

pattern

Above: Digital printing silk products of the Shanghai Silk Group

91

Above: The pattern making and draping team is equipped with the latest Lectra system

5

Above: To improve efficiency and productivity, the company also uses automatic fabric cutting machine (made in Japan)

10

Above: Computer-controlled knitting and weaving machines (making samples)

Besides the modern equipments & technologies, the emergence of the “design in China” phenomenon is also underpinned by the increasing supply of skilled talents in the country. Fashion design education is booming rapidly in China in recent years and improving in quality as well. Just in Shanghai alone, a dozen colleges are offering fashion design programs nowadays. For example, the Donghua University (the former China Textile University, where I graduated from) enrolls a total 255 fashion design major freshmen in fall 2013.  The enrollment size could be doubled if also counting students enrolled in a dozen other international fashion programs jointly offered by the Donghua University and its partner schools from Japan, UK, France and the United States.

In terms of the curriculum, fashion programs in China typically provide students with more focused training on design and product development compared with the textile & apparel programs in the U.S.. (however, less merchandising and marketing related courses are offered due to the lack of experienced faculty). Thanks to the sponsorship of the local apparel industry and the growing investments made by the university, students are able to learn WITH the industry-standard technologies, ranging from the CAD system, product lifecycle management software, automatic fabric cutting system to 3D body scanner.  Provided with the 21st century perspectives and skills, these future Chinese fashion designers will be globally competitive. (you may click here for pictures of students’ design work displayed at the 2013 Fashion Week hosted by the Donghua University)

Above: Chinese students are taking the draping class.

However, the changing face of China’s apparel industry is neither a surprise nor an exception.  As suggested by Dr. Gary Gereffi at the Duke University, one of the world’s most distinguished scholars studying the governance of global apparel value chain (GVC), the apparel industry in a country will gradually upgrade following the path of CMT (cut-make and trim)–OEM (the original equipment manufacturing)–ODM (the original design manufacturing)–OBM (the original brand name manufacturing).

22

To FASH majors: are you ready to compete with “design in China” ? What would be your advantages and disadvantages, opportunities and threats?

%d bloggers like this: