FASHION EXPORT TIPS | DEAN WORLD CARGO
BY BRUCE HAINES, MANAGING DIRECTOR
In a recent discussion about Australian fashion and lifestyle brands, and the seeming rise in their attempts to sell offshore, it occurred to us that it is a rather transactional based approach which is probably varied, inconsistent and expensive.
In an attempt to help out emerging brands in particular we are looking at working in conjunction with Industry and Government to put some structure behind their efforts for overall gains by interested parties.
By bundling logistic services at the product source (this could be in Australia or China if your product is made there), and achieving delivery harmonisation at the destination, this would get a better result than going it alone on a transactional basis.
Achieving a smoother flow of goods to overseas customers, many of whom may be in common areas (i.e. cities, malls, retail spaces), would reduce cost and increase service levels.
Australian Fashion brands are now being recognised internationally and it seems the time is right to take advantage of the originality and quality of the design talent in this country. In discussion with Australian Fashion Council they recognise the need for a co-ordinated approach to exporting and providing an end-to-end solution for fashion and lifestyle exporters, particularly in the small to medium sector. It seems for many reasons that a move from a transactional base to collaborative approach will be beneficial to export success.
Working with industry peers, industry groups and the right logistic partner could see you make significant gains across the exporting spectrum.
Its very exciting to obtain an overseas order and be able to start down the journey above but it's equally important to check the rationale of why you are doing it, so as to give yourself the best chance of success.
We have developed a check list of things to look out for and it begins way before you actually make any shipment:
Be aware of your production costings
Before you set your selling prices, have you considered the various trading terms customers might require (EXW, FOB, FIS, CFR, etc)?
This will usually depend on buyers choice, usually Air or Sea FCL/LCL.
This is often overlooked as the appearance of your goods at store level is vital in making the best consumer impression.
Will your goods require any additional preparation prior to delivery (price tags, security tags, etc)?
THIRD PARTY LOGISTICS
You may need to use the services of a 3PL at destination to achieve some of the above, including returns.
You will need to provide documentation in line with your trading terms. This is usually a commercial invoice in the agreed currency, a packing list, and a certificate of origin.
There are various options such as Letter of Credit, Cash Against Documents, Open Account, etc.
So assuming it is full steam ahead your next step is to find a logistics partner who understands the industry and the supply chain required. Breaking it down, the criteria for consideration falls into the following categories:
COMMON GOALS, MARKETS AND CLIENTS
It is an advantage that your provider has these to leverage from and provide:
BUNDLING - logistic services at origin (e.g. Australia, China) for greater efficiency.
OPTIMISING - logistics chain for export procedures, packing and shipping.
INCREASING - efficiency with all export/import documents, VAT, Duty and local customs.
DELIVERY - harmonisation via central distribution hubs;
To meet delivery windows and promotions.
To ensure quality standards on packaging and presentation to clients including garment on hanger.
To handle returns and claims.
TOTAL VISIBILITY - for increased efficiency and reduction of costs.
A STRONG LOGISTIC BASE
of distribution hubs in key consumer markets is essential.
Ensure all 3PL facilities can hold stock for fulfilment, cross dock, labelling, garment on hanger and provide customs and duty advice in each market.
A STRONG LOGISTICAL NETWORK
is essential, such as the ones listed below:
North America / 23 locations
Europe / 194 locations
Middle East /14 locations
Asia / 31 locations
Direct Connections to all major ports for full containers (FCL) or smaller shipments (LCL)
EASE OF DOING BUSINESS
look for a provider who has these qualities and skills:
World class fiscal and business environment
Experienced in handling Government regulations, duty and taxes
Invoicing and payment options governing FOB,CIF ,FIS and FCA terms.
We take care of all language difficulties.
OMNI CHANNEL B2B AND B2C OPTIONS
Strong connectivity to all continents in key locations for fashion and apparel.
All sales channels can be fulfilled efficiently.
US hubs for easy access to all States.
Netherlands Hub for access to all integrator hubs and National Postal networks including Germany and France.
London Hub for all UK deliveries B2B and B2C connectivity to European cities.
Hong Kong fashion centre for global distribution and cross border China B2C.
Join our Tigers E STORE in China with direct connections to the China e-commerce market via WeChat.
CONTROL TOWER MANAGEMENT
You need to know where your orders are at all times.
Control the entire process from order placement to ultimate delivery and all steps in between. All you need to do is give us your orders and we take care of the rest.
Our systems can interface with all parties giving full visibility to shipment and stock status at all times.
WANT TO KNOW MORE ?
DeanTigers have been providing logistic support to Australian fashion retailers and wholesalers for 35 years and fully understand the nuances of this industry.
They would be more than happy to talk with you on any aspect of the above as they fully appreciate the opportunity Australian fashion labels have to export their products.
JOIN US !
APRIL AFTERNOON SESSION: EXPORT & LOGISTICS | MELBOURNE
Join Dean World Cargo for an AFC Afternoon Session in April.
Further details will be released soon!