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Advantages and disadvantages of using an overseas agent

A sales agent acts on your behalf in the overseas market by introducing you to customers who you supply and invoice direct. They are paid a commission for any sales they make ranging between 2.5 per cent and 15 per cent. The key benefit of using an overseas sales agent is that you get the advantage of their extensive knowledge of the target market.

While there are clear benefits, agency relationships can also have downsides.

Advantages of using an overseas agent

You avoid the recruitment, training and payroll costs of using your own employees to enter an overseas market.

An agent should be well placed to identify and exploit opportunities.

Your agent should already have solid relationships with potential buyers - it might take you some time to build up your own contacts.

Using an agent allows you to maintain more control over matters such as final price and brand image - compared with the other intermediary option of using a distributor.

Disadvantages of using an overseas agent

You remain responsible for shipping and other trade-related logistics - although your agent should be able to help.

You need to specify in an agent's contract if you need them to credit check your customers for you.

Arrangements must be made to allow access to your sales ledger as part of the commission payments process.

After-sales service can be difficult when selling through an intermediary.

You may lose some control over marketing and brand image, compared with entering the market yourself.

Read more about finding and contracting with overseas agents and distributors.

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Advantages and disadvantages of using an overseas agent

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Skip to main content Advantages and disadvantages of using an overseas agent A sales agent acts on your behalf in the overseas market by introducing you to customers who you supply and invoice direct. They are paid a commission for any sales they make ranging between 2.5 per cent and 15 per cent.

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There was the October 2017 relaunch of its local Vogue edition - which has since taken a visual direction that seemingly prioritizes artistic freedom over commerce - in addition to being the native land of the founder behind luxury e-tail giant Farfetch. Add to that, the export of some of the modelling industry's most in-demand faces. Plus, local manufacturers dealing with demand from luxury apparel houses the world over. In short - the ingredients allowing Portugal to be integrated into the global fashion conversation, in an unprecedented manner.

Nonetheless, in what appears to be a coming ofage process, the country's local fashion designers are yet to join the ranks of their more esteemed Europe-based counterparts. Amidst it all, is Eduarda Abbondanza. She founded Lisbon's fashion week - which goes by the name of "Moda Lisboa" - in the year 1991. The bi-annual fashion event wrapped its 50th edition in the first quarter of this year. Over the course of more than two decades, the fashion week's founder has witnessed the rise of now-Victoria's Secret Angel Sara Sampaio, the Cabral brothers, the Sampaio twins and current face of Paco Rabanne's Pure xs fragrance Francisco Henriques.

Brazil's São Paulo Fashion Week has successfully implemented the strategy of placing Brazil-born model powerhouses on its runways, asa means to garner credibility in an international fashion context. A strategy, Abbondanza is alltoo familiar with. "These models, with their (international) social media following, are great communication tools for Portuguese designers. It's not always easy to get the big-name Portuguese models to return, due to their complicated schedules. That doesn't mean they do not return however. The models develop a special relationship with Moda Lisboa, plus they enjoy spending time with family and friends while in town. So whenever they have the opportunity they come back to Lisbon - where they started their career.

According to the Moda Lisboa founder, it isn't a lack of creativity withholding Portugal's designers from being celebrated in ways similar to fashion week headliners from London, Paris and Milan. Greater investment in communications however, is what Abbondanza believes will elevate the international profile of local fashion creatives. "The Portuguese market is very small, therefore it is essential that local brands build strong communication strategies focused on foreign markets. This will create further opportunities for growth, and allows them to showcase and sell their designs abroad." Miguel Vieira is amongst the Portuguese names which have recently started targeting key international markets in a more aggressive manner. Vieira has become a regular on the Milan fashion week calendar over the past couple of seasons. His peer, Patrick de Pádua, recently showcased his latest collection in Germany, as part of a stint at Berlin fashion week.

In the meantime, longtime Moda Lisboa media partner Vogue Portugal has also been doing its part in making the world take notice of the country's fashion cred. It's not until a recent change in art direction however, that the magazine's creative efforts are met with rave reviews from the international fashion community. One of the magazine's three April 2018 covers - featuring a nude portrait of models Fernando Cabral and Alba Galocha shot by photographer Branislav Simoncik - enjoyed a viral moment on social media. A remarkable feat in today's publishing environment, when not relying on celebrity power or shock value.

"The new path of Vogue Portugal points to a more minimalist way, yet not less bold nor less profound in its printed language. Covers are now much cleaner, and we have only one cover line conveying the main message," Sofia Lucas says. Lucas is the Editor-in-chief of Vogue Portugal and acts as the CEO and co-founder of Lighthouse Publishing - the company which publishes GQ and Vogue in the Portuguese market. The Vogue editor further comments, "What the local industry needs to (re)discover is its origin - the wealth of its traditional fashion legacy. The world, as well as most Portuguese, have no idea what this legacy is. It is with this in mind that Vogue Portugal is developing a special project to be announced shortly. I am convinced that the latter will be a benchmark in the Portuguese fashion industry at large."

As much as media support and marketing efforts matter, no growth shall occur if none of the aforementioned leads to a financial transaction. Online retail entity Farfetch, founded by Portuguese entrepreneur José Neves could act as a key patron of Portuguese talent in terms of commerce. "As a global marketplace we endeavor to create an environment where all the best local and international fashion brands can be leveraged and celebrated globally," Candice Fragis says, Buying and Merchandising Director of the online shopping hub which brings an international network of boutiques and fashion brands to its shoppers. The company recently launched a Shop the world section on the Farfetch website, highlighting designers from parts of the world which the masses may not necessarily associate with fashion. Korea, Australia and Japan are amidst countries spotlighted. Portugal however, appears to be MIA from the list. At least for now. Per Farfetch's Buying and Merchandising Director, "We have recently launched a 'Shop the world' curated set for both men and women, featuring key pieces from top performing brands by country. This will continue to evolve based on our collective global supply with a view to inspire and educate our customer about the breadth of our supply. That is, globally, as well as locally."

Based in Milan, I write about fashion and lifestyle-related topics, with a soft spot for Made in Italy and emerging markets. I kicked off my career at the age of 19, con...

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Is Portugal the Next Fashion Capital of the World?

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There was the October 2017 relaunch of its local Vogue edition - which has since taken a visual direction that seemingly prioritizes artistic freedom over commerce - in addition to being the native land of the founder behind luxury e-tail giant Farfetch. Add to that, the export of some of the modelling industry's most in-demand faces.

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by Apparel Resources

07-April-2018 | 10 mins read

With many ups and downs in apparel export data, policy changes but with no proper execution, besides getting deprived of any Government support, the Indian apparel exporters are struggling. Similar is the situation of their overseas clients also who are already under pressure due to various other reasons. Even yet, in this scenario, to a large extent, there is positivity at the end of both exporters as well as buyers. What are the factors that have kept these buyers and exporters charged-up, how they are coping with challenges, and how they are sure of further growth... During IIGF, Team Apparel Resources met some interesting and different level of buyers (having reasonable sourcing from India or having thrust on the same despite less sourcing, and others who are just coming to India) and exporters, trying to find out how they are coping with current situation, especially at their sourcing end, with an update on their further developments regarding India... To conclude their views, there is no magic stick and one has to consistently improve upon one's own strength.

Some of the companies are now exploring India due to various reasons as they are facing challenges in their existing sourcing destinations, their customers are pushing them for Indian products... Among them is Alessandro Lenzi, Administrator of Lebiz s.r.l., who was on his first visit to India and was eyeing to particularly explore factories for intimate apparels. Alessandro shared that despite the economic crisis in Italy, his company is optimistic about further growth. "This is the best time to explore new growth opportunities and to come back strongly post crisis, as early as possible," said Alessandro .

With 26 stores in Bologna, Lebiz s.r.l., Italy's customers are in favour of Indian products and goods. "India is a hub which we can't ignore anymore. We are initially planning to source 20,000 pieces per collection from here annually and will have nearly 4 to 5 collections. Some of the manufacturers are in touch with me. As of now we are exploring more prints," said Alessandro. Some of the other new buyers exploring India include Fawzi Alnahdi, CEO, Nama Arabia Apparels Co. Ltd., Saudi Arabia ('Blooming' label). His company is working primarily out of China but now they are impressed enough with Indian manufacturers to rethink options. "95 per cent of our products, including underwear and outerwear, are mostly out of China, but now we would like to start working with casual womenswear that would appeal to women in Saudi Arabia," said Fawzi.

Some buyers shared that still they are working hard to ensure timely delivery from Indian exporters and are insisting to focus more on product development. Rayes Gimenez, Manager, Kuini Creation, Spain and Jaime Barba of 360 Streetwear, both are retailers and also wholesalers from Spain and are positive about their growth in coming months. By sourcing a variety of garments, both companies are willing to explore different kinds of fabric-based garments from India. "Still few of our vendors in India need to work on their delivery schedule," they added.

"I see India as my biggest sourcing destination. Till a year ago, I was selling in my two shops in Athens and also in some retail stores which were interested in the type of garments I design and get them manufactured from India. But now my company, Mykonos, is going global and I have turned as a wholesaler, looking to pick-up more samples to show to the potential clients. I am looking for fresh collections and hope to make new contacts with Indian exporters that will support my growth plans." - Ada Kamara, Mykonos, Greece

Siba International, which is an importer company from Denmark, famous in garments as well as home furnishing and works with chain stores, is expecting 4-5 per cent growth this year. "Business is not very good, but we are focused on improving through new designs and patterns. Any exporter who can offer innovative patterns is welcome to work with us," said Sarabjit Singh E.E., Manager of the company. Sourcing from India for the last 15 years, Twinset S.P.A., from Italy has complete faith in the design potential of the country. The company is represented by Preeti Walia in India. Twinset has 80 stores in Italy and is working in high-end products that could fetch FOB of even US $ 100, but the average FOB would be around US $ 20. "India is very important for the buying strategy of the company, as 70% of products are sourced from the country, while the remaining 30% of basic/core lines are sourced from China. Hand embroidery is at the core of most of the products sourced from India," said Preeti.

H.P.K. Gayathrika, Fashion Designer and Dashmani Pilapitiya, Head of Design/Merchandising & Planning, ANATIONZ, Sri Lanka were exploring options of design input, as they are keen to introduce their menswear label ANATIONZ to the Indian consumer and also want to launch a womenswear line on similar lines with prime focus on linen.

Tapping the untapped markets is one of the difficult yet best tool for the garment exporters. Russia is also such a market that is under the target of many Indian exporters. Valery Sidorenkov, Chief Production Officer and Quality Assurance, Modis, Moscow shared that currently he is working with 6 exporters in India. He strongly felt that there are ample opportunities for Indian exporters in Russia. "We are sourcing good volume of womenswear, menswear and kidswear from India. Though currently our market is not good but it is huge and we are hopeful for a growth of nearly 15 per cent in the current year," stated Valery.

"In my opinion, garment exporters should have their proper data and start analysing where they exactly are. There are some key areas like quality which are still very much undermined and have vast potential to make a company profitable. The cost of quality I have seen is on an average ranging between 12 and 15 per cent. And if exporters bring it down even by 3 per cent, that will be a good jump in exporters' profitability. Strong quality management system and data assessment system will help to analyze the route cause and bring down issues like extra procurement of material, amount of manpower invested on check, rechecks, reworks, so proper data would be the starting point." - Manoj Singh, Head, Business Development Asia, Impactt Global Solutions, Delhi

Company like the Continuum shared concern about the viability of India given the pressure on prices. "Every buyer is asking for sustainability along with all of the other traditional requirements, including PD, yet no one is willing to shell out anything extra," bemoaned Gurmeet Bhatia, Compliance and Supply Chain Manager of the company. His views were seconded by many. Adding to the thought, Naveen Sehgal of RV International felt that the Government did not have a true picture of the situation and urged to put the facts more strongly.

Amit Mudris, Head of Sourcing & Merchandising Sourcing, United Colors of Benetton (Benetton Asia Pacific Limited (India Branch) too explored new vendors. He shared, "It will be good if a platform like IIGF has more manufacturers from south India and that too in knitted garments so that we can explore them easily. For us compliance fulfilment by an exporter is a must."

Rania Trading, Gurgaon is working as an authorised agency for UK companies Poundstretcher, the Pet Hut, Pound Store. It is mainly into home furnishing products and is now exploring garment also. Udit Gupta, Assistant Merchandiser of the company shared, "We are planning to start with kidswear and will proceed accordingly." As the clients of Rania Trading are very price-conscious, it is challenging for the company to find good quality products with reasonable price, but it is somehow managing with its field expertise.

May 30, 2019 | 2 hours ago | Business

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What makes India the preferred sourcing destination for international buyers | Apparel Resources

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by Apparel Resources 07-April-2018 | 10 mins read With many ups and downs in apparel export data, policy changes but with no proper execution, besides getting deprived of any Government support, the Indian apparel exporters are struggling. Similar is the situation of their overseas clients also who are already under pressure due to various other reasons.

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Holi Studios, Cambodia

A shift is happening in garment-manufacturing. For British brands and retailers, China is still by far the biggest player when it comes to sourcing apparel in large volumes - but it is becoming more expensive, and its position at the top is not as secure as it once was.

A survey by Barclays and research agency Conlumino shows that 28% of British retailers are considering changing their sourcing countries following the UK's vote to leave the European Union. There are myriad other factors driving changes to the sourcing map, such as the demand for faster fulfilment, ethical and legal considerations after incidents including the Rana Plaza disaster in Bangladesh, and political turmoil in locations such as Turkey.

Some smaller sourcing markets stand to profit from these changes. Vietnam has been a top-five sourcing market for the US for some time, but is now becoming increasingly important for the UK. Cambodia, Morocco, Pakistan and Myanmar are also developing quickly. Opportunities in Africa are on many a retailer's radar and, although the Barclays research suggests EU countries may fall out of favour with British retailers, Portugal is enjoying a resurgence.

China is still the most established sourcing market for the UK. Data compiled by the UK Fashion and Textiles Association (UKFT) shows that the total value of garments imported from China to the UK was just shy of £4bn in 2015, up 13.2% since 2010. In second place was Bangladesh, at £1.8bn.

"Currently, no other market can compete with China for comprehensiveness of its product offering, technical capabilities and integration of the textile value chain," says Peter Rinnebach, senior manager at consultancy Kurt Salmon. But he adds: "China is not a low-cost sourcing country any more."

UKFT chief executive Adam Mansell takes up this point: "When it comes to sourcing apparel, the key cost is labour. One of the reasons China is slowing down is that labour costs have gone up considerably."

This is where countries such as Cambodia could step in, says Mansell. The average wage for a garment factory worker in Cambodia was $140 (£105) per month in January 2016, compared with China's range of 1,000 yuan ($150/£112.50) in poorer provinces to 2,190 yuan ($327/£245.25) in Shanghai. Moreover, Cambodia's unemployment rates are higher.

"In Cambodia, there are an awful lot of people looking for jobs, and it is more straightforward to set up factories there," Mansell says. The value of goods imported from Cambodia rose 302% between 2010 and 2015, from £161m to £646m. Vietnam, which, like Cambodia, has labour and fixed-cost advantages over China, has also enjoyed growth - from £226m in 2010 to £435m in 2015.

Holi Studios, Cambodia

Africa - in particular Ethiopia - is also gaining in popularity. Menswear supplier Bagir recently moved its production from China, Romania and Burma to wholly or part-owned sites in Egypt, Vietnam and Ethiopia. Chief executive Eran Itzhak explains that Ethiopia has a duty free route to the European Union and US, as well as competitive labour and other fixed costs (see box below). The International Apparel Federation is working closely with the Ethiopians to develop a sustainable manufacturing base and its website states: "The government is truly investing in the industry and a number of large companies such as H&M, [US brand house] PVH and [Indian textile manufacturer] Arvind are making a long term commitment to Ethiopia".

Near-shoring

Closer to home, UK brands and retailers increasingly favour factories in Portugal and Morocco, where there is good infrastructure and faster delivery.

"More [brands] appear to be sourcing near-shore than before, primarily because of the speed of delivery, working closer to the seasons and prices going up in the Far East," observes Buzz Carter, event director for near-shore sourcing show Fashion SVP.

"In the 1960s, Morocco was the 'Sewing Room' for European brands," says Mohamed Tazi, managing director of the Moroccan Textile Association. "Then they went to China and Turkey, but now many are coming back. One reason is the nearness of Morocco to Europe, and the high quality and flexibility our manufacturers offer." The Maroc In Mode trade show - taking place on 19-20 October - aims to emphasise this closeness and encourage European brands to source their garments in Morocco.

Maroc In Mode

Portugal has always had a significant manufacturing industry. "It is very competitively priced, the quality is high and factories there have speed of turnaround and ability to work with some of the last-minute changes retailers and brands are looking for," says Mansell. "They understand the British business mentality." Brands and retailers are also turning to some of these countries because they carry a lower risk. For example, fashion businesses can be reasonably confident that factories in Portugal complete due diligence in setting up any ethical strategies.

However, Kosten Metreweli, chief marketing officer at Segura, which offers compliant software for sourcing, warns that situations can change quickly: "Look at Turkey, with a reputation for high capacity and quality, yet now beset with political issues. When selecting new geographies, brands need to be prepared to be very agile with their sourcing approach, and understand where potential supply chain vulnerabilities exist."

Rinnebach points out that political instability is also affecting how brands view Bangladesh: "The political situation remains a risk, especially after the terrorist attack on the restaurant in the Gulshan district of Dhakka this summer. Another risk is the worker-safety situation. A lot of initiatives are under way, hopefully showing positive effects, but another Rana Plaza-type incident could force brands to question their strategies of further strengthening Bangladesh sourcing."

Itzhak says political stability and security are important for two reasons. First, you need to worry about the personal security of your local employees, experts that are coming to support production and customers who visit the factory. Second, instability can damage productivity. "This is why we are not operating in countries like Bangladesh," he explains.

Itzhak has five criteria for choosing new production sites:

1. Do you have a financial interest in the factory, whether it be an investment, joint venture or, ideally, full ownership or control?

2. Are there duty free routes to the markets you serve?

3. Does the country have competitive labour, energy, transportation and other fixed costs?

4. Can you access raw materials locally to create an efficient vertical operation and shorten the lead time?

5. Do the factories specialise in the type of garment you want to produce?

Despite the potential benefits of sourcing beyond China and Bangladesh, up-and coming source nations such as Portugal, Cambodia and Ethiopia have a long way to go before they can compete on scale and efficiency (see box below).

Ben Keisner, sales director at courier business Freight Brokers, says many of its fashion clients are reviewing their supply chains, but have not committed to any big changes: "A lot has to happen before people make a switch. China is still miles ahead in terms of quality control and ease of transportation."

Yet, while China's dominance remains unchallenged, the tide is turning. In five years' time, the sourcing map could look very different from today.
Case studies: Your views on where to source from now Ethiopia
Three years ago, sourcing from Ethiopia sounded like a dream. But there is huge pressure on prices and you need to compete - and the labour costs in traditional textile countries such as China, Vietnam and Bangladesh are going up. Ethiopia provides a duty free route to our markets, and has competitive labour and other fixed costs. We could also buy 50% of our facility, so we're controlling the production.

The first challenge is transportation. One of its major disadvantages is that Ethiopia has no seaport. Goods travel by land to Djibouti's port, which takes two days. A railway line to Djibouti is under construction, which will decrease transportation costs by at least 40%, but in the meantime it is still expensive. We have mitigated the risk by signing an agreement with the biggest mill in the country, so we're not dependent on raw materials from outside Ethiopia.

There is also the lack of textile tradition and knowledge. We are the first ones to export tailored garments from Ethiopia. It's like being the first man on the moon. We had to relocate our general manager from China to Ethiopia to oversee the production and we're recruiting experienced managers from Sri Lanka and Bangladesh to run the line.

If you are considering setting up production in Ethiopia, you need equity and your own managers. It is not because the locals are not talented - they just don't have the experience and they need training. Five years from now, it will be a different conversation.
Eran Itzhak, chief executive of menswear supplier Bagir Portugal
We work with Portugal on some of our products including towelling robes and swimwear. We find it easier to source more premium textiles and fibres from within Europe, and the consistency of product and the workmanship is excellent. We work with smaller quantities and the lead times can be more flexible than sourcing from the East. There is less emphasis on filling containers to gain good freight rates, and there are no duty rates to take into account. We can solve any issues quickly and we have the ability to take on repeats within season, although Portuguese factories do suffer from production capacity constraints in the peak season like any other country.

We find that development can be facilitated quickly and the mills and factories have a better understanding of the European market trends to bring ideas and concepts to us. We believe, as do many of our customers, that consumers consider "Made in Portugal" in the label to be a stamp of quality and understand the more premium nature and limited production that lies behind its creation.

The flip side of all this is undoubtedly price, as the worker rates are significantly higher than in the East, and garment production generally requires a large amount of labour input in cutting, sewing and checking. To give an example, for an embellished swim garment, the price difference can be more than twice what it would be if we sourced from Asia. As margin and price are such an important driver for many of our customers, there are only a selection who feel that Portugal is a viable option for them.
Tristan Haddow, chief executive of brand supplier Haddow Group Cambodia
Cambodia is actually very structured for a south-east Asian country. It has a lot of laws in place to protect both the employer and employee, and it is making headway with a living wage. It is taking a while, but [working conditions] are improving. It is also pretty fast and efficient; a lot of the main factories are run by people who used to work in China. People still associate Cambodia with fast fashion, but they do everything from fast fashion to luxury, and a lot of footwear, so there are a lot of different opportunities. There is a really good skills base.

One pitfall is that it is more expensive from a delivery perspective. They do have great logistics - quite fast - but it is much more expensive than shipping from India. I think because the infrastructure for shipping out to Europe is new, there are only a few international companies who really do it. And Cambodian factories have been focused on mass quantities, so they are very open to the bigger retailers, but for the medium-sized retailers it can be difficult to find out who is running what, where and how.
Leah Rodrigues, founder of Cambodian training and production centre Holi Studios

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Holi Studios, Cambodia A shift is happening in garment-manufacturing. For British brands and retailers, China is still by far the biggest player when it comes to sourcing apparel in large volumes - but it is becoming more expensive, and its position at the top is not as secure as it once was.

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It is a fair assumption that sourcing closer to a market will usually shorten delivery times. But before considering where, or indeed whether, to source closer to home, brands must first consider their company's objectives.

"The most important place to start is for fast fashion brands to have a good understanding of their own company ethos and what they're looking for, and then to find suppliers that match those needs rather than looking for a specific geographic location," Ilishio Lovejoy, a key account manager at the UK-based Ethical Fashion Forum, told just-style.

Lovejoy continues: "Sourcing close to home can certainly make it easier for brands to build and maintain positive working relationships with suppliers, as well as being environmentally friendly and having community growth advantages when working with local suppliers and partners."

However, she stresses that fast fashion brands should consider using suppliers in a number of countries. "In today's global market place, solely operating in a localised area is extremely rare as brands will more likely than not have a globalised customer base," she says.

The account manager also warns that "successful supplier relationships are also dependant on both parties being committed to transparent communications; sourcing close to home doesn't necessarily equate to positive working relationships."

And she adds that "building strong relationships in order to thoroughly understand a supplier's goals and ethics is the best way for fast fashion brands to ensure that their supply chain is having a positive social or environmental impact."

Lovejoy observes that a growing number of brands are looking to work with such suppliers, in particular by connecting with them online. "Accessing these suppliers is getting easier and easier," she says.

One way in which brands can do this is through Source Expo, an online networking event that connects buyers with suppliers and manufacturers, organised by the Ethical Fashion Forum. The event is made up of 12 one-hour sessions, each designed around a specific buying theme, such as luxury fabrics or natural fibres, and buyers can log into the sessions that interest them and connect with new potential suppliers.

Portuguese potential

For European brands, an effective near-market sourcing location is Portugal, which has lower wages than many northern European countries and excellent and close transport links for fast fashion brands.

Paulo Vaz, general director of the ATP (Associação Têxtil e Vestuário de Portugal), says that Portugal offers a range of benefits, including products of a high quality, flexibility and quick response.

"The Portuguese textile and clothing industry has know-how, including in product development, which is recognised by its partners," he says. "Portugal is often seen as a reliable partner where one can find innovative solutions, with design and high quality standards, rather than just a supplier."

He explains that this know-how has been established through the country's professional schools and universities specialising in textiles and clothing, as well as technological centres. Vaz adds that Portugal is also a convenient geographical location. "It has proximity in terms of geography and of culture to its main destination markets, such as Europe and North America," he says.

Around 89% of the Portuguese textile and clothing industry is concentrated in the districts of Braga, Porto and Aveiro in the northwest of the country, within a 30km to 50km radius, and 30 to 40 minutes' drive from Porto airport. Vaz says that within this region there are manufacturers and service providers across the entire textile and clothing supply chain, which he says represents a further advantage for brands looking to source from Portugal.

Examples include Playvest, based in Braga, a manufacturer of sportswear, outerwear, underwear, maternity clothes, nursing lingerie and shapewear; and the Calvelex Group, based in Lustosa, near Porto, which specialises in high-quality women's apparel. Its main products are jackets, trousers, skirts, shorts, blouses and dresses.

FTAs offer the best US options

Meanwhile, where American fast fashion companies are looking to source their production closer to home, experts agree that the current best options are countries involved in free trade agreements (FTAs) with the US, due to lower import and export tariffs.

"The US has a very integrated supply chain with its DR-CAFTA [Dominican Republic-Central America Free Trade Agreement] and NAFTA [North American Free Trade Agreement] partners," says Eliza Levy, manager of public relations and grassroots at the National Council of Textile Organizations (NCTO).

"Any time there is an FTA in place, costs [for apparel production and export] are reduced. If brands and retailers are trying to maximise cost benefits in domestic markets, there is no question that the Western Hemisphere would be optimum. Almost every country is under an FTA and is in close proximity to the [American] market."

David Sasso, vice president of international sales at US-based Buhler Quality Yarns, stresses that Mexico and Central America, as well as Colombia and Peru, are important sources for large-scale fast fashion companies, as they have sufficient skilled labour to handle orders from large clients.

"If fast fashion brands want to source nearby for US markets, they'll have to find the companies that are set up for their kind of production. Zara, for example, has a presence in Colombia already, where there are a couple cut-and-sew manufacturers that do good work for them," he explains.

He adds that Brazil has a good domestic infrastructure for textile production, and with the country's economy doing poorly, "many spindles are under-used" and open to new investors.

But according to the US Fashion Industry Association's (USFIA) 2015 Fashion Industry Benchmarking Study, fashion companies do not take advantage of American FTAs. Thirty companies, ranging from major global brands and retailers to importers and small wholesalers, participated in the study.

"The top FTAs and preference programmes among respondents [to the study] - CAFTA-DR, NAFTA, and the US-Jordan FTA - are utilised by more than 50% of respondents...However, all other agreements and preference programmes have utilisation rates of 30% or lower, if they are utilised at all," the study reported.

It also says the planned Trans-Pacific Partnership (TPP) trade deal has huge potential to create new trade opportunities: 72% of respondents of the study indicated they would source more textiles and apparel from TPP partners once a deal had been implemented - it would cover Peru and Mexico.

The study also shows that 39% of survey participants expect to increase sourcing value or volume from the US in the next two years. China has seen its clothing and textile production costs rise, which has motivated brands to begin re-examining the US as a sourcing destination.

The NCTO's Levy says the US increasingly manufactures high quality goods efficiently and at competitive prices. Despite higher environmental standards, workplace safety standards and higher tax burdens, she maintains, "it is becoming financially more viable to source from the US."

Sasso agrees, saying he has noticed that fast fashion companies are more frequently choosing to manufacture in areas such as Los Angeles and the West Coast.

"You have pockets of opportunities in the US, but it's not everywhere; LA is the place to go. They do a lot of garment dying and creative things that can respond quickly to changes in the industry," he explains. Apparel such as knitwear, T-shirts and polo shirts seem to be the main products of this region, he adds.
Click on the following links to read other articles in this management briefing: With additional reporting by Mandy Kovacs.

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Fast fashion: Options for sourcing closer to market

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It is a fair assumption that sourcing closer to a market will usually shorten delivery times. But before considering where, or indeed whether, to source closer to home, brands must first consider their company's objectives. related to Apparel, Manufacturing, Sourcing,

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Drapers Article on Personal Shopping Website Comparisons

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Drapers Article on Personal Shopping Website Comparisons

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Digital personal styling services are often feted as the next frontier for ecommerce. Several big names are making strides in the sector, and innovation and investment are particularly focused on the menswear market.

In October, menswear styling service Thread announced $22m (£16.7m) in additional funding from a series B funding round, taking its total investment to more than $40m (£30.4m).

Meanwhile, styling service Stitch Fix, which boasts more than 3 million customers in the US, and in February 2018 was valued at $2bn (£1.52bn), is set to expand into the UK this year. For the year to 28 July 2018, it reported a 26% year-on-year increase in net sales to $1.2bn (£910m).

"We're going to continue to see the curation and styling services becoming a lot more mainstream," says Samantha Dover, senior retail analyst at research agency Mintel. "Men tend to feel less confident in making those purchasing decisions. They have always been more willing to uptake personal stylists. They want that guidance and they are more likely to say they want that service."

"A typical male stereotype might be around convenience and ease," agrees Bhavesh Unadkat, principal consultant in retail customer engagement at research firm Capgemini. "Therefore, if someone can proactively make recommendations and make it easy and convenient and affordable, there is already a massive play there. In retail generally, there is a constant drive for new business models, new ways to do things and ways to grab the share of wallet."

As certain names grow, more and more small players are popping up across the market - offering their own take on digital personal styling and seeking to take a bite out of the market.

However, the sector is far from an easy win, as proved by the recent demise of The Chapar, which fell into administration earlier this month. As recently as 2017 the business raised £1.3m in a crowdfunding round, seeking further investment of £500,000 after buying rival Enclothed in July 2018.

As Drapers set about testing the various styling services offered across menswear and womenswear, several things became clear. Styling retailers must be able to match the services and efficiencies that come as standard elsewhere in the ecommerce space - such as easy and efficient delivery and returns, and ease of communication - otherwise their unique selling point is rendered obsolete. Too many of the styling retailers we tested fail to do this.

Out of five retailers tested, only one - Thread - was able to offer an acceptable level of overall customer experience and speed. In fact, at the time of writing, Thread was the only retailer that had successfully completed my order and return process. The basic foundations of good internet retailing were lacking elsewhere: slow delivery times, lack of delivery and returns options and lack of communication, as well as hidden deposits and fees were just some of the areas in which the other retailers crumbled.

Additionally, many of the styling services catered to a very specific look or style, which would not necessarily appeal to all. It defeats the purpose a little if customers have to shop around to find a styling service that suits their style.

Many of the sites seemed to be founded on good ideas, but the execution was, at times, shockingly bad. For services claiming to take some of the hassle out of shopping, many were more hassle than help.

Drapers tested five services to discover the helpful tools and hindrances that appear most often in the emerging segment.
Thread
Menswear styling site Thread is by far the most smooth and efficient styling service tested.

The design of the site is crisp, clear and easy to navigate, and I click through to a simple styling questionnaire with ease. The questions are very straightforward and easy to understand as they is image led.

For those less confident in their own style, this is very helpful. It is easy to pick outfits I like rather than try to describe a personal style, which is the method used by some other services, including Style Lyrical.

I am matched with a personal stylist in seconds, shown her name and picture, and receive a welcome email within minutes. This feels very personal and is impressively quick.

Thread offers a series of outfit ideas on the website and I can pick and choose which products to buy. The suggestions themselves are good, if a little safe, but chime well in relation to the preferences I outlined in the styling quiz.

Thread works with payment provided Klarna to offer a "buy now, pay later" option. Once it is set up, it is easy and quick to use, and is clearly visible at checkout. I get free delivery on orders worth more than £50, as well as next-day delivery if ordered are placed before 3pm - by far the fastest delivery of all services trialled. Returns are also free, and were quick to be processed.

Thread is the only friction-free shopping experience I have. An impressive product range and strong styling is matched with good service and a practical, functional website. It is the only website tested that holds its own against the ecommerce functionality of other big-name fashion retailers.
(This review was undertaken before Thread's rebranding and expansion of its offer, which launched on 5 March)
Endource

Womenswear site Endource sells a curated selection of brands that gain a buzz on social media and in the press. The site operates as an etailer, but offers the option to have a stylist add to your order available at checkout.

Pleasantly designed with a modern and minimalist aesthetic, Endource's selection is smartly arranged and offers well-curated style edits. These include a "Most Endourced" pick of items featured in magazines and on Instagram, as well as more specific stylised edits, such as an "Urban Explorer" collection.

The range is good, and presents large numbers of products from brands such as Arket, & Other Stories, The Fold and Warehouse, bringing these retailers offers together - being able to browse and order in one place is a bonus.

To access the styling service, I order three products and tick a box when proceeding through checkout. I am told that a stylist will add some additional products to my box before delivery to complement the pieces I have chosen.

I do not pay up front for my box, and a £6.99 shipping fee is reasonable, considering I am ordering from numerous separate retailers. The website clearly states that I only pay for what I keep, and I will only pay once I have completed any returns from the order.

Unfortunately, the experience goes downhill when I place my order. I receive no confirmation email and no updates - so I begin to question whether or not my order was processed correctly - and the box takes 15 days to arrive. The delay is very frustrating, and it would have been far easier, and quicker, for me to order directly from the retailers.

Following the publication of this review, Endource confirm that an order confirmation was sent. However, the email was removed by my system's spam filter - explaining why I never received the communication.

Following this point however, communication improves rapidly. When my box is dispatched I receive an email telling me what will be arriving, including a personal note from the stylist that explains her picks and offers tips as to how to style my new items. The styled items are very good, and co-ordinate very well both with my personal sense of style and the items I ordered. When they arrive, they are beautifully presented, and the only reason I do not keep more of the pieces is because I already own similar items.

I have five days to return my parcel - a quick turnaround - but the returns label is attached, and the process is very easy and quick.

I later receive an email offering to ship separately an item that I ordered but went out of stock, and am able to converse directly on email with customer services, who are swift to respond to my queries and update me on delivery details.

Given the sophistication of the site and ease of my initial interactions, I had high hopes for Endource. However, despite a generally positive experience, the slow delivery times and difficulties around initial communication would deter me from ordering again.

Dappad

The concept behind Dappad is very appealing. Describing itself as a menswear "Scandinavian capsule wardrobe service", theoretically it could tap into the booming popularity of Scandi style. Unfortunately, the practicalities of the service make it difficult and confusing to use.

I begin with a picture-led style quiz that asks a comprehensive number of questions on day and work style, and colour and fit preferences. However, the images are very low quality, and the design of the site feels in general dated and amateurish.

There is the option to be contacted by a stylist, which is a nice touch for those who want a more curated approach.

I can choose a maximum value of either £500 or £1,000 for the box. Initially, I am told I will need to pay a £20 deposit before I receive my first box - and then I will only pay for the items that I keep.

Once I sign up for my box, I discover that I do not pay the deposit on the site. Instead I pay via bank transfer, the details of which are emailed to me. I am reluctant to share my details with the site after an indirect and complex route to payment.

I am also now informed, for the first time, that I will automatically be charged half the value of my first box as an additional fee. Although this will be refunded if I return items, I will be charged before receiving my box, which is annoying. The wording on this feels deliberately obscure - "we reserve 50% of the value". I feel deceived by the fact that I was not informed of this substantial charge sooner.

I email customer services for more information on this charge and it is explained that the fee is a result of some customers not paying in the past. Given the restrictive nature of the payment methods and the general lack of sophistication on the site, I do not feel comfortable parting with my money and do not proceed with my order.

Style Lyrical

Premium womenswear service Style Lyrical provides a comprehensive and impressively personal styling offer.

It offers a personal phone consultation, free shipping and collection, style guides and follow-up consultations, as well as a bespoke membership offer - customers are able to get boxes delivered as frequently as they want.

I have to apply for membership: I provide details on my style, the brands that I wear and what I want from a "Style Box", and select my budget.

The application is easy to complete and is clearly geared to a more sartorially engaged customer than some of the style tools targeting men - it asks why I wear certain label and what how I would describe my aesthetic.

The range of brands on offer is impressive. The quirky selection of feminine and desirable labels including Stine Goya, Wyse London and Becksöndergaard - the kind of hidden gems that the sophisticated shopper would want in their wardrobe.

The website is sophisticated and very easy to navigate - it has a pleasingly minimalist and chic design, and offers up a reassuring number of reviews and testimonials.

On top of the cost of items, there is also a £29.99 "Stylist Fee" for each box, which seems like a high charge considering most of the services tested do not charge for styling. Although this is disappointing, the comparatively advanced role of the stylist here goes some way to explain it.

Despite great promise from the service, at the time of writing - more than a week after filling in my details and style preferences - I have had no further contact from Style Lyrical and assume that I have been turned down for membership. Once again, a lack of communication is hugely frustrating. This should be a basic for businesses claiming to offer a high level of personal service.

Lookiero

When setting up my style profile at womenswear styling service Lookiero, the questions are simple and image led, which makes the process easy to navigate.

The styles offered as part of the styling quiz are quite limited and are unlikely to appeal to a wide variety of shoppers. The overall feel is quite mumsy, but I am able to leave comments for my stylist to help them pick items based on my needs.

It is not immediately obvious what brands Lookiero could send me, so it is difficult to gauge whether or not the products will fit my style. Brands are listed in the FAQs, but it takes some hunting to find them, which is frustrating.

A deposit of £10 is charged on each order. This is deducted from the cost of any items I keep, but if I return everything, I am not refunded the fee. This seems reasonable, and I would be happy to pay. For my first box I am offered a free trial, which is a nice touch. Lookiero also gives 25% off the cost of the order if you keep all items.

I am able to pick the exact day I want my items to arrive, but, disappointingly, the soonest I can book is in 12 days. Nevertheless, when I order I am immediately emailed a confirmation, and receive updates as I wait for my items.

Before the order is dispatched I am told I will have five days to select and return my items, which seems like a short turnaround, but returns are pre-paid, and I will be able to use a drop-off returns point, which makes the process much easier.

The clarity of Lookiero is impressive, and I am aware of exactly what to expect in terms of service. Despite slow delivery, the rest of the ecommerce offer matches the high expectations for online retailers and I feel confident in its offer.

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Digital personal styling services are often feted as the next frontier for ecommerce. Several big names are making strides in the sector, and innovation and investment are particularly focused on the menswear market. In October, menswear styling service Thread announced $22m (£16.7m) in additional funding from a series B funding round, taking its total investment to more than $40m (£30.4m).

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Step one:
APPLY FOR MEMBERSHIP

Apply for your membership. We will check we can send you the types of clothes you're looking for.

Step two:
YOUR STYLE CONSULTATION

Fill out your Style Profile and then consult with your stylist on the phone to discuss your needs and preferences.

Step three:
RECEIVE YOUR BOX

Take 4 days to try on your clothes. Decide what you love, then return what you don't with our free shipping service.

"I was very pleased with the handpicked outfit ideas - the beautiful and classic pieces are perfect for busy women. The style box was gorgeously presented and it felt like a massive treat."

- Oonagh Brennan, Fashion Director, Red Magazine.

The styling fee for your three outfits is £29.99 per Style Box. This includes:

You choose when and how often you would like your Style Box - we are not a subscription service.

We style you as and when you would like us to. Some customers like to receive a Style Box every few months. Others like to receive a box once a year.

You choose what works for you.

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Sign up to our newsletter to stay up to date.

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Style Lyrical | Personal Styling For Women

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Apply for your membership. We will check we can send you the types of clothes you're looking for. Fill out your Style Profile and then consult with your stylist on the phone to discuss your needs and preferences. Take 4 days to try on your clothes.