News Tag: apparel
Practical recommendation to establish successful business relationships with Canadian buyers – webinar

The CUTIS project in partnership with the Canada-Ukraine Chamber of Commerce and the Canada Export Promotion Office (TFO Canada) held a webinar with the participation of Maria Guzman, TFO Canada apparel market expert and CUTIS projects consultant.

The main objective is to provide comprehensive and practical guidance on the requirements for the sale of clothing in Canada and to facilitate the process of finding partners in this market for Ukrainian companies.

The following questions were discussed during the webinar:

  • Features of the Canadian clothing market
  • Recent fashion trends in the market
  • How to interact with potential buyers
  • How to successfully build a business relationship
  • How to present your product successfully
  • How to calculate export prices and negotiate with Bayer
  • How to calculate the cost of logistics
  • Basic requirements for product labelling

Part 1 video 

Part 2 video 

You can download Maria’s presentation via the link.

You can download the webinar Summary via the link.

Rules of origin for apparel and footwear under the CUFTA – video

In order to obtain preferential access to the Canadian market under the Canada-Ukraine Free Trade Agreement (CUFTA), the product must be of Ukrainian origin.

The rules of origin impact on:

  • Import duty rates
  • Tariff quotas
  • Export trade statistics

It is essential to know that a declaration of origin of the goods is the only document Ukrainian producer needs to confirm the origin.

What does this mean for Ukrainian business?

Ukrainian companies don’t have to receive any additional certificates. The origin information shall be indicated on an invoice or any other document containing the description of the goods. Therefore, it means reducing financial and time costs for customs clearance of export products.

You can find out more about rules of origin for Ukrainian apparel and footwear goods under the CUFTA from Olexandra Brovko, CUTIS Senior Expert on Trade and Investment.

To free download the manual – I CAN Export: Rules of origin under the Canada-Ukraine Free Trade Agreement. Guidelines for Exporters (in Ukrainian), please follow the link.

Ukrainian women entrepreneurs in Paris – a new chapter of the SHEforSHE mentorship program

With the support of the CUTIS project, three Ukrainian women entrepreneurs Olesya Timoshyk (TimiTex), Eugenia Lukash (Evgakids) and Kateryna Volkova (Sasha) participated in the largest French textile and apparel exhibition, which took place in Paris from February 10 to 13. That was part of the CUTIS SHEforSHE mentorship program aiming to support the development of women’s businesses in Ukraine and promote their products in foreign markets.

One other Ukrainian company, Jenadin, a knitwear manufacturer, participated in the exhibition catwalk.

The mentor of the SHEforSHE program is Maria Terekhova from Trade House New Fashion Zone, who already has successful experience in promoting Ukrainian apparel in foreign markets.

“For us, as a company that is just planning to enter international markets, participating in such exhibitions is a necessary and very important step. It is an opportunity, at the least, to feel the needs of the market and the requirements for manufacturers, and, at the most, to find new customers”, Olesya Tymoshyk from Chernihiv said.

For Eugenia Lukash (Kherson), founder of Evgakids online children’s clothing store, a trip to Paris also became the first experience of participating in an international apparel exhibition.

‘We are very grateful to the CUTIS project for this opportunity. The Apparel Sourcing Paris is so impressive. We are proud that our first international exhibition is the biggest garment sourcing show in Europe with more than 600 exhibitors from all over the world,’ Eugenia Lukash noted.

According to Kateryna Volkova from Slavutych, who produces children dresses under Sasha trademark, participation in the Apparel Sourcing Paris was a great opportunity to expand to new markets, establish contacts with new partners and present new products.

Jenadin’s participation in the catwalk has become a real highlight of the event. The Ukrainian knitwear producer was highly appreciated by the Parisian public. This success is significant for the producer given the fact that it was the first time for Jenadin to demonstrate its models at such a top international fashion show.

‘I’m very happy that we could present our collection, and also represent Ukrainian manufacturers at the Apparel Sourcing Paris. I want to thank the CUTIS project for giving us this opportunity and unbelievable experience,’ Jenadin CEO Nadiia Koziarivska said.

Maria Terekhova gave a presentation at the Apparel Sourcing Paris regarding benefits that international partners may have working with Ukrainian apparel companies. Maria made a brief overview of the Ukrainian apparel market and spoke about the specifics of searching a business partner in Ukraine.

“Events such as the Apparel Sourcing Paris exhibition are a great opportunity to present Ukraine as an interesting partner for private label production and fruitful cooperation with international retailers. During the event, we got acquainted with African and Latin American buyers. It’s a whole new negotiation experience for us”, Maria mentioned.

According to Olga Shtepa, CUTIS project coordinator, the participation of four Ukrainian companies in the international exhibition in Paris once again confirmed the opinion that Ukrainian companies are fabulous.

‘Businesses are usually established by intuitively searching for potentially profitable market niches and creating products suitable for their founders, but in a very short time, they may grow to the level of a national manufacturer, or even higher. They start planning strategic export activities, creating new jobs and conquering international podiums. Therefore, it is a pleasure to be part of the CUTIS project and the SHEforSHE mentorship program aiming to help grow such businesses and support their efforts to enter the global arena, ‘Olga Shtepa summarized.

CUTIS held an export forum for apparel and footwear manufacturers interested in trade with Canada

The CUTIS project and the Canada-Ukraine chamber of commerce held a practical export forum in Kyiv for Ukrainian companies interested in exporting apparel and footwear to Canada.

During the event, participants had the opportunity to learn more about the Canadian footwear and apparel market, get acquainted with specific features of product promoting in Canada and communicate with Canadian experts who have huge experience in cooperation with Canadian buyers and distributors. The forum brought together about 50 small and medium enterprises.

Adam Barbolet, Senior Trade Commissioner of Embassy of Canada to Ukraine welcomed the guests.

‘Canada has been and remains a reliable partner of Ukraine. The Free Trade Agreement between Canada and Ukraine (CUFTA) came in force in 2017 and has visible results in terms of trade growth between countries. For example, Ukraine has become one of the leaders of apple juice suppliers in Canada.

We are interested in further economic cooperation with Ukraine. We do hope that more and more Ukrainian small and medium-sized enterprises will be able to export their goods to Canada. We want to see these products in the Canadian market, we want to help Ukrainian business to be successful in the Canadian market,’ Adam Barbolet said.

Emma Turos, Executive Director of the Canada-Ukraine Chamber of Commerce in Ukraine and CUTIS project manager spoke about the CUTIS export portal, which will provide relevant information to Canadian and international businesses seeking reliable Ukrainian partners.

Olga Shtepa, CUTIS Project Coordinator, drew the attention of the event participants to the specifics of the Canadian business culture (download the presentation via the link). In particular, Olga Shtepa named 5 essential components for successful exports to Canada:

  • Website in English (native English)
  • Detailed costs and prices information
  • Farewell to stereotypes
  • Getting rid of misconceptions about your product or service
  • Professional presentation of own products/services

Maxim Boroda, CUTIS Senior Trade and Investment Analysis Expert, told about features, trends, and consumer preferences in the Canadian apparel & footwear market.

In 2018, Canadians spent CAD 36 billion on clothing. In particular, CAD 18 billion on women’s clothing and about CAD 11 billion on men’s clothing. By 2023, the total sales of clothing will reach CAD 43 billion, with an average annual growth rate of 3.4%. At the same time, sales of hosiery will increase faster than any other category.

Canadian consumers spent CAD 7.8 billion on shoes, in particular, CAD 3.7 billion on women’s shoes, CAD 3.1 billion on men’s and CAD 1 billion on children’s shoes. By 2023, total footwear sales will reach CAD 9.5 billion.

Sales of man’s footwear will grow faster than other categories. The reason is the increase of men’s interest in fashion trends, especially among young people, as well as the liberalization of the office dress code.

Oleksandra Brovko, CUTIS Senior Trade and Investment Policy Expert, clarified regulatory and labeling requirements for Ukrainian goods in the Canadian market. She drew the attention of the participants to the rules of origin.

Oleksandra Brovko noted that the rules of origin in the CUFTA are based on the so-called North American model, and therefore sometimes different from the rules of origin contained in other free trade agreements between Ukraine and the European and post-Soviet countries.

Zoia Pavlenko, CUTIS Environmental Expert, explained the specifics of voluntary certification of Ukrainian products for the Canadian market and argued why environmentally sustainable production practices are competitive advantages in the Canadian market.

Vira Porovska, CUTIS Gender Expert, illustrated why gender-sensitive marketing is an essential requirement of Canadian consumers.

Apparel and footwear export guides were presented during the second part of the event.

You can download apparel export guide here (in Ukrainian)

You can download footwear export guide here (in Ukrainian)

Participants also had a chance to listen to the presentations of Canadian experts as well as ask questions related to Ukrainian goods prospects in the Canadian market.

TFO Canada consultant Maria Guzman (apparel market) explained how Ukrainian producers should build mutually beneficial relationships with Canadian buyers and shared the success stories of Ukrainian companies participated in CUTIS’s U CAN Export supporting program for small and medium-sized enterprises.

TFO Canada consultant Phil Zwibel (footwear market) brought into focus the typical mistakes Ukrainian manufacturers make entering foreign markets, including Canada. The logistics issues, misunderstanding of market specifics and unwillingness to update a product to the needs of local consumers are the main challenges Ukrainian companies need to overcome.

Lviv entrepreneurs learned about new opportunities for exporting apparel and footwear to Canada

The CUTIS project, the Canada-Ukraine chamber of commerce in cooperation with Ukrlegprom association, Lviv Business School and West Ukrainian Fashion Industry Cluster held a practical seminar in Lviv for Ukrainian companies interested in exporting apparel and footwear to Canada.

During the seminar, participants had the opportunity to learn more about the Canadian footwear and apparel market, as well as to get acquainted with specific features of product promoting in Canada.

The event brought together about 30 companies specializing in women’s, men’s and children’s clothing, as well as women’s, men’s, sports and children’s footwear.

Yuriy Samets, Chairman of the Board of the Western Ukrainian Fashion Industry Cluster and Tetiana Izovit, President of Ukrlegprom association, welcomed the guests.

Emma Turos, Executive Director of the Canada-Ukraine Chamber of Commerce in Ukraine and CUTIS project manager spoke about the CUTIS export portal, which will provide relevant information to Canadian and international businesses seeking reliable potential Ukrainian partners.

Olga Shtepa, CUTIS Project Coordinator, drew the attention of the event participants to the specifics of the Canadian business culture (download the presentation via the link). In particular, Olga Shtepa named 5 essential components for successful exports to Canada:

  • Website in English (native English)
  • Detailed information on costs and prices
  • Farewell to stereotypes
  • Getting rid of misconceptions about your product or service
  • Professional presentation of own products/services

Maxim Boroda, CUTIS Senior Trade and Investment Analysis Expert, told about features, trends, and consumer preferences in the Canadian apparel & footwear market.

It’s an interesting fact, in 2018, Canadian consumers spent CAD 7.8 billion on shoes, in particular, CAD 3.7 billion on women’s shoes, CAD 3.1 billion on men’s and CAD 1 billion on children’s shoes. In 2018, shoe sales in the Canadian market have increased by 3.7% in value.

During the same period, Canadians spent CAD 36 billion on clothing, in particular, CAD 18 billion on women’s clothing and about CAD 11 billion on men’s clothing. Consequently, the women’s clothing market in Canada is almost twice the size of the men’s market.

Maxim Boroda also presented practical export guides to Canada for apparel and footwear producers.

Vira Porovska, CUTIS Gender Expert, illustrated why gender-sensitive marketing is an essential requirement of Canadian consumers.

Oleksandra Brovko, CUTIS Senior Trade and Investment Policy Expert, clarified regulatory and labeling requirements for Ukrainian goods in the Canadian market.

Zoia Pavlenko, CUTIS Environmental Expert, explained the specifics of voluntary certification of Ukrainian products for the Canadian market and argued why environmentally sustainable production practices are competitive advantages in the Canadian market.

Borys Didai, KaDar Shoe Factory (Lutsk) export manager, told about the company’s entry into the Canadian market and the challenges facing Ukrainian manufacturers in this market. You can read the full KaDar success story via the link.

Ukrainian clothing manufacturers have every reason to succeed in Canada – fashion industry expert

The CUTIS project and the Canada-Ukraine Chamber of Commerce, under the CUTIS apparel trade mission, organized a visit to Ukraine by a representative of the Canadian fashion industry who is interested in finding reliable clothing manufacturers.

Sonali Nayak, Fashion Priests president, met with representatives of five Ukrainian companies participating in U CAN Export CUTIS support program for small and medium enterprises. They are:

Fashion Priests is a relatively new company with ambitious plans. It operates in several markets (including Canada, the USA, and India), and is constantly expanding purchasing geography.

Thanks to the Conference Board of Canada and TFO Canada, Sonali Nayak also visited Indonesia with a buyers’ trade mission. ‘Ukrainian companies are more ready to enter the Canadian market, the samples and models presented by Ukrainian manufacturers may be interesting for Canadian buyers,’ she said.

‘During the mission, I had the opportunity to meet with representatives of five Ukrainian companies (from the sports swimwear and leggings producer to the outwear factory) who made a positive impression on me.

Interesting models, modern equipment, high technology, good quality fabrics, creative teams are the components of Ukrainian clothing producers’ potential success in foreign markets,’ Sonali Nayak mentioned.

‘I definitely see the prospects for further cooperation. We have to harmonize, for example, size guides, because in Ukraine and Canada they are different, to choose the optimal styles and fabrics. I hope that the Fashion Priests specialists will visit the selected Ukrainian enterprises once again in the spring and will discuss all the details as well as made trial orders’, Fashion Priests president explained. 

Thanks to the Canada-Ukraine Free Trade Agreement, Ukrainian clothing is imported to Canada without paying import duties (18% on average). This is an additional plus for business partnership with Ukrainian manufacturers.

Maria Guzman, CUTIS Canadian expert and TFO Canada consultant, advises Ukrainian manufacturers to pay additional attention to details such as size matching, curves, seam size, etc. Ignoring such things can lead to Canadian buyers refusing to make an order, even if they generally like the style and clothing model, Maria Guzman concluded.

CUTIS represented Ukrainian apparel manufacturers at Canada’s leading clothing and textiles exhibition

From August 19 to 21, the products of nine Ukrainian apparel manufacturers were presented at the Apparel Textile Sourcing Canada, the biggest international sourcing event focused on the Canadian and North American Apparel, Textile, and Fashion sectors.

In Toronto, CUTIS experts and the Canadian TFO expert invited by the project will present Ukrainian companies’ samples that are part of the export support program U CAN Export:

Ukrainian apparel products were presented at ATSC for the second time. Last year, five Ukrainian brands participated in the ATSC fashion show.

Apparel Textile Sourcing Canada is the great option to meet thousands of apparel & fabric buyers, sourcing directors, designers, merchandisers, retail chains, department stores, and more from Canada, the USA, and the world.

In total, more than 500 manufacturers from more than 30 countries participated in the exhibition in Toronto.

After Toronto, the exhibition will take place in September in Europe and then in Miami, the USA.

ATSC features three days of sourcing, free seminars, and panels, fashion shows, networking, and inspiration.

The Canada-Ukraine Trade and Investment Support (CUTIS) project is a 5-year (2016-2021) Canadian development assistance initiative designed to increase exports from Ukraine to Canada and investment from Canada to Ukraine. The project funded by the Canadian Government through the Global Affairs Canada and implemented by the Conference Board of Canada in partnership with the Canada-Ukraine Chamber of Commerce.

Apparel is one of the priority areas for the project. CUTIS implements U CAN EXPORT Support Program in five priority sectors: clothing, footwear, furniture, confectionery, and IT services.

Ukrainian clothing aroused great interest among Canadian buyers and retailers – CUTIS Apparel Mission

From 1 to 7 August, seven Ukrainian clothing manufacturers, selected by experts from TFO Canada, visited Canada in the framework of the Apparel Mission, organized by the CUTIS project. Canadian experts gave preference to women-owned companies and companies implemented environmental standards. The mission was held in two Canadian cities – Toronto and Montreal.

During the mission, Ukrainian apparel companies had several business meetings with leading European clothing suppliers on the Canadian market. Business negotiations with Canadian retailers were also arranged. Besides, Ukrainian business had a chance to meet with Canadian apparel brands representatives.

The following companies participated:

Ukrainian products have sparked keen interest from Canadian buyers and retailers. The Canadian business highly commended the quality, interesting portfolios, and attractive prices of Ukrainian clothing.

According to Olga Shtepa, CUTIS project coordinator, thanks to the Canada-Ukraine Free Trade Agreement (CUFTA) and the abolition of import duties, Ukrainian clothing has 18% advantage on the Canadian market compared to imports from such powerful global players as, for instance, China. Therefore, Ukrainian clothing can and should be presented and successfully sold on the Canadian market.

‘The interest of the Canadian companies in the Ukrainian apparel is very high, several participants of the mission received trial orders. Now everything depends on the Ukrainian manufacturers, their ability to use the opportunity to develop cooperation with Canadians and expand exports to the extremely promising Canadian market,’ Olga Shtepa said.

The Canada-Ukraine Trade and Investment Support (CUTIS) project is a 5-year (2016-2021) Canadian development assistance initiative designed to increase exports from Ukraine to Canada and investment from Canada to Ukraine. The project funded by the Canadian Government through the Global Affairs Canada and implemented by the Conference Board of Canada in partnership with the Canada-Ukraine Chamber of Commerce.

Apparel is one of the priority areas for the project. CUTIS implements U CAN EXPORT Support Program in five priority sectors: clothing, footwear, furniture, confectionery, and IT services.

In August 2018, with the assistance of the project, eight Ukrainian apparel manufacturers took part in the international exhibition Apparel Textile Sourcing Canada, which united more than 500 apparel manufacturers from more than 20 countries.

In July 2019, Ukraine House Toronto official opening guests enjoyed the Fashion Show of six famous Ukrainian apparel companies. RITO and Andre Tan companies, which participate in CUTIS export support program U CAN Export, also took part in the show and presented their latest collections.

Ukrainian clothing manufacturers to meet with Canadian buyers and retailers

From 1 to 7 August, Ukrainian clothing manufacturers, selected by experts from TFO Canada, will visit Canada in the framework of the Apparel Mission, organized by the CUTIS project. Canadian experts gave preference to women-owned companies and companies implemented environmental standards. The mission will be held in two Canadian cities – Toronto and Montreal.

During the mission, Ukrainian apparel companies will have a number of business meetings with leading European clothing suppliers on the Canadian market. Business negotiations with Canadian retailers are also arranged. Besides, Ukrainian business will be a chance to meet with representatives of Canadian apparel brands.

“Being a representative of Ukrainian clothing manufacturers in Canada is an extremely complicated and demanding challenge. It’s not just about finding a reliable partner and concluding a commercial deal, but also about helping to create the image of a Ukrainian supplier on the Canadian market as a reliable partner for producing high-quality European products. This will undoubtedly help to promote Ukrainian goods to Canadian buyers and retailers “, – said Olga Shtepa, CUTIS project coordinator.

The Canada-Ukraine Trade and Investment Support (CUTIS) project is a 5-year (2016-2021) Canadian development assistance initiative designed to increase exports from Ukraine to Canada and investment from Canada to Ukraine. The project funded by the Canadian Government through the Global Affairs Canada and implemented by the Conference Board of Canada in partnership with the Canada-Ukraine Chamber of Commerce.

Apparel is one of the priority areas for the project. CUTIS implements U CAN EXPORT Support Program in five priority sectors: clothing, footwear, furniture, confectionery, and IT services.

In August 2018, with the assistance of the project, eight Ukrainian apparel manufacturers took part in the international exhibition Apparel Textile Sourcing Canada, which united more than 500 apparel manufacturers from more than 20 countries.

In July 2019, Ukraine House Toronto official opening guests enjoyed the Fashion Show of six famous Ukrainian apparel companies. RITO and Andre Tan companies, which participate in CUTIS export support program U CAN Export, also took part in the show and presented their latest collections.

Webinar: benefits of apparel and textile environmental certification for Ukrainian manufactures

The CUTIS project held a webinar «Apparel environmental certification: additional opportunities on the Canadian market». You can watch the video via the link https://bit.ly/2zY1mUN on CUTIS YouTube channel.

It seems that the apparel and textile markets are completely harmless to the environment. In fact, it is not true. It is the second industry in terms of the negative impact on the environment after the oil industry.

Apparel consumers in developed countries pay attention to environmental certification. Responsible consumption is a noticeable trend in developed markets. For example, almost 86% of Canadians are ready to pay more for products that are eco and environmentally friendly.

What environmental labels are used in textile industry and what Canadian consumers pay attention to? According to our analysis, the OEKO-TEX® and GOTS labels have the greatest prospect in the textile industry not only in Canada but also in other countries.

According to Ruslan Shutov, regional manager of OETI Ukraine & MD, the OEKO-TEX® labeling includes analysis of raw materials, intermediate and final products at all stages of the production. Why a manufacturer should be interested in such labeling? Such marking has a high level of recognition among buyers and positively affects the level of brand trust and loyalty. It is also a considerable argument in B2B negotiation (especially for fabric manufacturers).

There are 18 Ukrainian companies with STANDARD 100 OEKO-TEX® certification. In particular, such well-known manufacturers of socks as “Dune-Vesta” (TM Duna) and Premier socks, as well as Novomoskovsk hosiery factory (TM Giulia).

Ksenia Butsa, the founder of organic SMPL underwear, shared the experience of developing small business in the field of organic clothing (yes, we have organic clothes and underwear in Ukraine:). SMPL underwear has more and more consumers on the Ukrainian market. Besides, the company wants to export its products. Right now it has negotiations with a partner from the Czech Republic.

Zoya Pavlenko, environmental expert of the CUTIS project mentioned that environmental labeling is not just additional “paper”. It considers changing or improving all stages of production process. Such an approach not only saves money of the company, but also opens up new opportunities for business in developed markets, including Canada.

Moreover, OEKO-TEX® and GOTS certificates may be benefits for green public procurement and corporate sustainability supply chains.

Taking into consideration that Ukrainian small and medium-sized enterprises (SMEs) may face financial challenges obtaining environmental certification, the CUTIS project proposes to reimburse 50% of certification costs. If you are interested in new opportunities, please contact environmental expert of the CUTIS project Zoya Pavlenko. Tel.:+38 (097) 167-21-07, e-mail: zpavlenko@cutisproject.org.