the U.S apparel market

WHY Focus on the U.S Market?

U.S GDP U.S Unemployment U.S Textile &

Apparel Imports

- Over 315 million consumers

- Imports approximately $75-90 billion of apparel and $22.7 billion of footwear goods

annually

- Annual Apparel sales of over $195 billion and footwear sales of approximately $54

billion

Top Apparel Suppliers to USA Market

Rank Country Million $ Million $ Growth

Year Ending 2013 Year Ending 2014

World Total 79,797,338,000 81,780,000 1,982,662

China 29,783,092 29,793,603 10,511

Vietnam 8,126,284 9,268,703 1,142,419

Bangladesh 4,947,540 4,834,111 -113,429

Indonesia 4,975,247 4,832,717 -142,530

Honduras 2,497,663 2,582,425 84,762

Cambodia 2,555,412 2,478,751 -76,661

Mexico 3,681,518 3,732,348 50,830

India 3,211,631 3,400,8989 197,358

El Salvador 1,859,433 1,903,851 44,418

Pakistan 1,859,433 1,459,541 -16,553

U.S Apparel 2014 imports is

$81,780,000

U.S World Apparel

imports by % market

share year ending

World $ 24,164,070,929

$25,309,623,363 100.0%

China $ 16,629,453,534 $16,678,206,549 68.8%

Vietnam $ 2,870,149,517 $ 3,523,475,074 17.3%

Italy $ 1,315,304,213 $ 1,427,564,755 5.4%

Indonesia $ 1,150,552,031 $ 1.218,764,693 4.8%

Mexico $ 483,170,635 $ 446,111,584 2.0%

India $ 286,384,938 $ 336,549,28 1.2%

Dominican

Republic $ 232,089,626 $ 255,399,581 1.0%

Brazil $ 196,679,273 $203,458,647 0.8%

Spain $ 184,741,525 $ 211,787,314 0.8%

Thailand $ 106,143,506 $ 109,430,911 0.4%

U.S Import Footwear by

Country

The Time is NOW

AGOA Free Trade

Agreement

Elimination of Duty or Tariff’s for apparel products

entering the U.S offering huge savings for importers.

Provision allowing 3rd Country fabric to be used and still

qualifying for Duty Free Status. This allows factories to use

any fabric from any country with no restrictions.

There are two great advantages of the AGOA

Free Trade Agreement with the U.S

Most Free trade agreements are limited by yarn forward rules and must purchase

yarns of fabrics produced in USA or in the territory of the agreement. These are

often more expensive than fabric produced elsewhere in the world.

1 2

Examples of Free Trade

agreements and 3rd

country fabric inclusion

Agreement 3rd Country provision availability

AGOA yes

NAFTA No

DR-CAFTA No

Korea No

Peru No

Colombia No

Singapore No

Haiti Yes except for Men’s cotton t-shirts

QIZ Yes except 10.5% of cost must be from Israel

CBTA No

Advantages of

Duty Free

Product Duty rate FOB cost Duty

Cotton Knit top 16.5% $ 4.00 $ 0.66

Synthetic Knit top 32.0% $ 4.00 $ 1.28

Cotton Men's trouser 15.9% $ 8.00 $ 1.27

Synthetic Men's Trouser 28.2% $ 8.00 $ 2.26

Cotton Men's overcoat 15.9% $ 15.00 $ 2.39

Synthetic Men's overcoat 28.2% $ 15.00 $ 4.23

Sampling of major U.S

branded Wholesalers

is the largest

sourcing event in

North America!

SOURCING at MAGIC is Where Fashion Starts, providing

the entire supply chain with

-Apparel Contract Manufacturers

-Footwear Contract MFGs and footwear materials and

components.

-Original Design Manufacturers

-Fabric & Trim Suppliers

-Print Design Studios

-Service and Technology solutions providers with a

unique opportunity to connect with thousands of

branded wholesalers, private label importers and top

multi-unit retailers.

Seize the

opportunity

China – Although China is still the most efficient

country for production, there are a number of issues that

are causing U.S. buyers to diversify their sourcing.

-High labor costs and continuing to rise -Shortage of labor in many of the tradition production areas

-RMB currency appreciated against USD by 35% in the last 5 years -Emergence of a very strong domestic market

-Rising cost of electricity, environmental issues and new safety laws -Government promoting higher added value

Exhibitors With 1100+ companies from 40+ countries,

SOURCING at MAGIC provides the ultimate

international business platform

Attendees/Buyers Thousands of sourcing specific buyers attend sourcing at magic. Each attendee registration is thoroughly reviewed and the appropriate credentials confirmed

-Sourcing & production managers -importers -designers

-fabric & trim buyers

-Private label retailers -Branded apparel companies -Distributers/wholesalers

Top Branded Manufacturer Attendees

A & H SPORTSWEAR

ALSTYLEAPPAREL & ACTIVEWEAR

AMERICAN APPAREL

BUFFALO JEANS

CHINESE LAUNDRY

GOSSIP GIRL

GUESS

ISAAC MORRIS LTD

JERRY LEIGH

JESSICA SIMPSON

JOHN PAUL RICHARD

JORDACHE

MISS ME

MICHAEL STARS

OUTDOOR CAP COMPANY INC

PERRY ELLIS

PING GOLF

RMLA INC

Top Retailer Attendee

ABERCROMBIE & FITCH

ANN TAYLOR

AMAZON.COM

AMERICAN EAGLE

BEALLS STORE

BLAIR CORP

BLOOMINGDALE’S

CHICOS FASHION INC

COSTCO

DICK’S SPORTING GOODS

DILLARD’S

DISNEY MERCHANDISE

FOOT LOCKER

FOREVER 21

STEVE MADDEN

STRATEGIC PARTNERS INC

SUPERIOR UNIFORM

GROUP/BLADE UNIFORM

TEAMWORK ATHLETIC

APPAREL

WILLIAMSON-DICKIE

HAGGAR

HUGO BOSS

DOCKERS

LEVIS STRAUSS

RALPH LAUREN

ADDIDAS

CHEF WORKS

CINTAS

CHAMPION

SKETCHERS

GAP INC

JCPENNEY

JCREW

KOHLS

LIMITED BRANDS

MGM RESORTS INTL RETAIL

NORDSTROM

PAYLESS SHOE SOURCE

PENDLETON

SAKS FIFTH AVE

SEARS

SHOE CITY

WAL MART

ZAPPOS

Sourcing Resources and

MATCHMAKING Services

Sourcing resources provide onsite Matchmaking

services to attendees by country and product

category Compliance & Regulation information

Information kiosks by key U.S. apparel & textile associations Show Planner is online listing allows buyers to discover your company before, during and after the show by viewing your online profile

Education information on the methodology of doing business in the U.S. Trend analysis and presentation available

Focus area for August 2015:

Wearable Technology

Why SOURCING at MAGIC?

COMPREHENSIVE RESOURCES

From the fabric to the finished product, we connect you to the entire global

supply chain.

CROSS-MARKET APPEAL

Wearable tech is no longer just for athletes—it caters to millennials, jetsetters,

audiophiles, boomers + more. The connected self has arrived.

CONSUMER DEMAND

Shoppers increasingly want their technology to be stylish, functional and

intuitive.

SALES POTENTIAL

IDC reports that in 2014, the worldwide wearable computing market shipped

an estimated 19.2 million units—three times the total from 2013.

ONLY AT MAGIC

More than 6,000 brands are in attendance, opening you up to a world of new

opportunities.

This season, SOURCING at MAGIC explores the most talked-about wearable technology including:

»» App-based accessories »» Smart garments »» Innovative manufacturers

10 Steps to Get to and do Business at Before the Show:

1) Define your objectives for the show

2) 30 second elevator pitch Determine what buyers should know about your company. Clearly state what products/services you offer and Make sure your staff is well prepared.

3) Identify your best prospects 4) Pre-show marketing: Update your website and Create your profile on our online show planner. 5) What to bring:

Samples: 50-100 samples per 10x10 booth, 100 is ideal Order forms, line sheets, marketing materials, pens, calculators, business cards.

At the Show:

6) Engage with Buyers

7) Make sure your booth is well merchandised: Inviting and not cluttered. Clearly show what products/services you offer 8) Determine prospect’s needs and clearly communicate your message

9) Provide marketing materials and take away information

After the Show:

10) Follow up and follow through

In summary SOURCING at MAGIC is where the world’s

leading sourcing companies come.

Exhibiting at SOURCING at MAGIC: Is the easiest, fastest and most cost effective way to enter the U.S. market

The only Sourcing event in North America that provides manufacturers, global designs, fabric, trim & print design studios as well as service providers direct access to the largest concentration of buying power in the United States Apparel and Accessories sourcing and component suppliers have a unique opportunity to connect with over 6,000 branded wholesalers, private label importers and top multi-unit retailers

The largest and most comprehensive Sourcing event in North America, with over 1100 companies participating from over 43 countries, SOURCING at MAGIC is the destination of choice for the international apparel & fabric sourcing industry

In summary

Stores and brands are re-inventing themselves and their products in order to differentiate themselves from the ordinary therefore factories with design teams who can help create will have a better chance Business in the U.S. is picking up and will continue to improve in 2014. Only those factories who

remain "in the minds" of the sourcing directors will be considered as viable as the economic situation changes. Face to face meet with buyers regularly is important. Global reach is the key to ensure sustained growth. With the fluctuation of Chinese currency, ongoing labor problems in China and other regions and ongoing changes in the export environment, companies that rely on China too much will have to diversity.

MAGIC MARKET WEEK - since travel budgets for sourcing have been drastically cut, the sourcing execs are looking for cheaper and easier ways to meet with their existing suppliers and to look at new suppliers. Las Vegas and SOURCING at MAGIC provide them with that opportunity.

#1 reason retailers and buyers come to MAGIC MARKET WEEK is to find new

resources

Why The U.S. Now? Sourcing execs are reducing quantities per style/color to limit their exposure to overstock - any factory that can be very flexible and accept to do very low minimums will open up more doors. Many buyers are placing test orders of several hundreds and then, as

business opens up, this can grow to many thousands or to tens of thousands

See you in Las Vegas!

August 16-19, 2015

Bob Berg

Senior Sales Manager, International

2501 Colorado Ave, suite 280 Santa Monica, CA 90404

T 310.857.7568

E bberg@magiconline.com

Magiconline.com/sourcing-at-magic