As the world continues to wrestle with the ongoing impact of the global financial downturn, over 400 senior executives from more than 20 countries representing all sectors of the apparel industry supply chain met together at the end of March in Hong Kong for the fifth edition of Prime Source Forum.
Welcoming delegates to the fifth edition of this annual meeting, APLF Michael Duck, Director of the organisers, APLF Ltd commented: “This year’s Forum will inevitably focus on the effect the world financial crisis has had on this multi-million dollar industry and the steps it is taking as part of the worldwide drive to make manufacturing and retailing more sustainable.”
“We are also delighted to welcome many new faces this year in addition to the many regular attendees confirming that the Forum is now established as a must-attend event for the industry’s movers and shakers from all over the world.”
Demonstrating the pivotal role that the Forum plays in bringing apparel industry experts together, more than some 70 panellists, each a specialist is his or her expertise, participated in PSF 2010 discussed the challenges and opportunities facing the industry while the day prior to the actual Forum two Workshops addressed two major operational issues – Sustainability and the increasingly important role that technology is playing for both manufacturers and retailers.
Nancy Nord, US Commissioner of Product Safety, making the opening address at the
Workshops said: “I think it’s very appropriate to be talking about safety as we kick-off this conference,” stated Nancy A. Nord, Commissioner, the US Consumer Product Safety Commission. “At the end of the day, all of us here in this room wants to sell the goods and services we make at a profit and you’re not going to be able to do this if your business has to sustain the cost of a product recall, product liability suit or the business reputational damage that comes with the public knowing you make an unsafe product, so safety really is at the core of any discussion about sustainability.”
Nancy Nord, US Commissioner of Product Safety
Andrew Y. Wu, Group Director of LVMH China opened the Forum the following day with a Keynote address in which he offered valuable insights on future markets and highlighted current consumer trends in China in his presentation “Cultural Understanding of China in Rapid Transformation - Beyond Luxury Consumption".
Andrew Y. Wu, Group Director of LVMH China
This was followed by seven sessions each one dealing with one of the major issues confronting the global apparel industry. (See Appendix for the full programme). These included the comments of Janet Fox, SVP, Director of Sourcing of JCPenney and Chairman of USAITA, who stated that despite the threat of protectionism, it was unlikely there will be any sudden changes in trade polices affecting the textile and apparel trade between the US and Asia and in particular China. “I don’t think the US consumer is ready to pay higher prices for apparel and textiles made in China that tighter trade polices could mean” said Ms Fox.
Janet Fox, SVP, Director of Sourcing of JCPenney and Chairman of USAITA
Henri Mura, Executive Chairman VIPTEHUI Group, told the audience that on-line retailing was an effective way of reaching increasingly sophisticated consumers. He noted the many opportunities online purchasing had presented for young mainland companies to build their own brand names due to the absence of available US and European brands in China.
Henri Mura, Executive Chairman VIPTEHUI Group
“There are a rapidly increasing number of consumers that choose to purchase goods, such as apparel, via the Internet rather than through traditional brick-and-mortar retail.” Mura told the audience. In addressing the question as to when global consumer levels of purchasing would return to the levels experienced prior to the global financial downturn. Mr. David Dodwell, CEO Strategic Access, a well known trade and political analyst in Hong Kong, commented that it was necessary for household consumption to increase before consumer markets returned to pre-financial downturn levels.
Mr. David Dodwell, CEO Strategic Access
Cost-effective innovation was another topic that attracted the interest of delegates. Joachim Hensch of Hugo Boss suggested creating “hot spots” to inspire designers' creativity. Concurring, Roger Lee, COO of TAL focused on ways to inspire staff to learn new skills and develop creativity.
Roger Lee, COO of TAL
Mr. Douglas Tong HSU, Chairman & CEO, Far Eastern Group stated: “While domestic consumption in China is increasing, local demand does not currently equate with the level of imports into the country.”
Mr. Douglas Tong HSU, Chairman & CEO, Far Eastern Group
The event closed with an innovation for Prime Source Forum, a Debate .The motion before the “House” suggested that: “China will soon no longer be the first choice for sourcing apparel”.
Following a lively, often controversial and sometimes humorous debate, the motion was almost unanimously rejected. The principal 2010 Forum sponsor CRYSTALLIZED™ - Swarovski Elements, the product brand for the world’s finest loose cut crystals was joined by Avery Dennison, Checkpoint, Dassault, DyStar, KEE Zipper, Lawson, Lectra and several other sponsoring organisations .
The 400 plus participating companies included such well know brands as adidas, Ann Taylor, AWI, Bossini, Crystal Group, Fountain Set, H&M, Jockey Intl, Jones International, Li & Fung, New Balance, Nike, Pacific Brands, Polo Ralph Lauren, Target, VF and YGM.
The 6th edition of Prime Source Forum, the definitive meeting place for the global apparel industry will be held in Hong Kong 30 March – 1 April, 2011.
