LOCAL NOT ALWAYS FEASIBLE
Production moved out of Canada
International sourcing can be especially challenging for apparel designers, manufacturers and retailers. “There’s always a boat or a customs problem you have to deal with,” said Jan Stimpson, chief executive of White House Design Company in Vancouver.
Stimpson, who introduced her Sympli fashion line in 2001, has reached the $20 million revenue mark, establishing a presence in 800 boutiques across Canada and the U.S. Now, her sights are set on Europe, among other markets.
Like many Canadians in the apparel trade, Stimpson does her best to keep her production close to home, but has had to source fabrics from Korea and India because the Canadian mill she used went out of business. “Mills in Canada are few and far between these days,” she added.
On the production side, Stimpson’s business model is to have workers produce garments from a home base. “They are so thankful to be able to take care of their children and elders. We have managed to continue doing it. But it is an ongoing challenge,” she said.
Stimpson’s one advantage is her experience working with international suppliers early in her career. She ran a fabric store, where she sourced silks from China, cotton from India and the U.S., and novelty fabric from Italy.
Navigating international waters is particularly difficult for industry newcomers, said Bob Kirke, executive director of the Canadian Apparel Federation in Ottawa. Small businesses, including designers, manufacturers and retailers, represent 70 per cent of the apparel industry in Canada, according to the federation.
Canadian businesses are inclined to want to source locally. But that isn’t always feasible, Kirke said. “Small companies especially might prefer to do production locally but the resources simply aren’t there anymore. The companies that are available want bigger volume orders than startups can provide.”
The data is also discouraging when it comes to talent. For example, the number of production workers in apparel in Canada has dwindled from 100,000 to 30,000, Kirke said. “Many of those who are left are approaching retirement and it’s incredibly hard to recruit young people. With the loss of production jobs, businesses have had to import to accommodate that.”
Michael Friedmann, of Kaleidoscope Apparel, has been outsourcing production for years for various fashion lines he carries. “Even companies that started out producing domestically, like Roots and Lululemon, don’t do much anymore. The good news is it’s easier than ever now even if you’re a small company sourcing offshore. Technology has done that,” he added
“We have freer trade in apparel globally than ever before,” Kirke confirmed. “The actual scope of moving things around the world is much easier than it was 20 years ago. Until the early 2000s, businesses were highly restricted in terms of where they could source from and the quantities.”
Working with international suppliers, whether for raw materials or production, requires a knowledge of duties, payment, banking relationships, record keeping, regulatory requirements, and production. “There is no way to get around them,” Kirke said. “That’s why it is imperative you find credible agents and factories to deal with. You need to go with a plan and get good partners and establish stable relationships. Don’t chase new contractors because they can produce something a few cents cheaper. Choose the right one to start with and stay with them if the relationship is working.”
Stimpson has worked with the same broker partner for more than four decades. “We just built good, safe relationships with them. For me it’s fabulous because someone can run over to Korea and see the quality and avoid translation miscommunications. That’s vital,” she said.
When Katherine Robison cofounded Joe-Ella Fashions in Toronto five years ago, the company sourced textiles from China and production from the Philippines for their line of upscale girls’ formal wear fashions. “These dresses simply couldn’t be produced in Canada at a reasonable price,” she explained. “I chose the Philippines because of the quality of the workmanship, the accurate fit, attention to detail and the fact they speak very good English.”
Robison has learned the ins and outs of sourcing internationally, such as the importance of paying on time and building responsible payment relationships. “That helps to build trust when you are working with a supplier half a world away.”
She also goes to China with an agent twice a year to hand-pick fabrics. The agent keeps tabs on pricing, availability of stock and shipping to the production facility.
Robison also recommends you ensure the factory you work with has an export licence. “When you are first doing business with a supplier that should be one of the first questions you should ask. Otherwise it could cost you.”
Suppliers also need as much information as possible, especially when starting out, she said. “Put together a package that includes your first sketch and technical sketches with specifications and dimensions for pricing. Once you get the pricing, you can agree to move to the sampling stage.”
To ease shipping, she advises paying the fees and getting tracking labels that include your pickup and ship to addresses when using third party shipping. “Somebody starting out who doesn’t want to pay for shipping can easily get into problems getting their samples. If you don’t use a third party provider, ask the factory to charge the costs to you.” Also include all testing certification forms with shipments to make the customs process easier.
Robison stresses the importance of due diligence before and after production. “Make sure you visit the factory. That’s very important because you can make sure the company has the proper people, equipment and are who they say they are.”
Adila Cokar of Source My Garment Consulting in Toronto said that practice is essential for any apparel business owner.
“Try to get to know them. By that I don’t just mean certifications. Where do their families live? How do they treat their employees? How do they interact with others? What are their values? I’ve left a Fair Trade certified facility because the owner was talking disrespectfully to the staff. Often people don’t take the time to understand the human side of the businesses they deal with.”
The good news is it’s easier than ever now even if you’re a small company sourcing offshore.
GLOBAL NETWORKING
For the first time, apparel business owners in Canada will have a unique opportunity to learn more about industry sourcing. The Apparel Textile Sourcing Canada (ATSC) Show, being held Aug. 22 to 24 at the International Centre in Toronto, will bring more than 200 apparel and textile manufacturers from around the world, including China, India, Bangladesh, Mexico, the U.S., Honduras, Peru and more.
The show provides an unprecedented platform for small businesses, retailers, manufacturers and designers across Canada to make global industry connections; and gain new insights, as well as up-to-date information needed to more easily and effectively navigate through the sourcing process, the organizers said. Industry leaders will be on hand to discuss topics such as global ethical manufacturing, social compliance, entering the U.S. market and lead time optimization, among others.