Bulletin III - 2015

Cotton USA
 

COURTING THE MEXICAN APPAREL CONSUMER

Key Insights

Cotton Incorporated

 
 

Mexican consumers share a love for clothes shopping and a willingness to indulge their desire for new clothes.

Consumers show significant receptivity to traditional media sources influencing their ideas for apparel.

National retail stores deliver a shopping experience preferred by consumers who show favor for international brands.

Shoppers look for and purchase cotton clothing to satisfy their need for quality, comfort, and durability.

 

Economic and demographic factors have converged to propel Mexico’s financial growth and attract new commercial pursuits within the country. According to The Economist, Mexico may be one of the ten biggest economies in the next decade. Projections also indicate that Mexico may outpace Brazil to become the largest economy in Latin America within the next 15 years¹. Mexico’s steady economic growth, youthful population, and striving middle class, estimated between 30% to 74% of the population, are defining economic traits that can help make this prediction a reality.

 

Recent inroads into the Mexican apparel market by foreign retailers such as American Eagle, Gap, and H&M reflect significant movements to garner consumer brand awareness and loyalty in this expanding apparel market.

 
     

Cotton Incorporated’s Mexican Consumer Survey, a study of shoppers in Mexico City, exposes a confident consumer base that enjoys clothes shopping, favors quality apparel, and has distinct preferences, influences, and expectations.

 

APPAREL SHOPPING AND INFLUENCES

 

Three out of four Mexican consumers say they either love or enjoy shopping for clothing and also say that they shop for clothes once a month or more. Similar to their counterparts around the world, Mexican women are significantly more likely than men to love or enjoy clothes shopping, shop for clothes once per month or more often, and adopt style changes more quickly. As socio-economic level (SEL) increases, fondness for clothes shopping, frequency, and fashion‐forwardness rise.

 

Conversely, these consumer shopping behaviors decrease as age increases.

 

While clothes shopping affinity and frequency are high among Mexican consumers, few are quick to adopt the latest trends. In fact, only 35% of consumers describe themselves as fashion-forward. Given that the majority of shoppers do not consider themselves to be fashion-forward, a retail strategy that includes a strong clothing basics offering may help optimize sales. At the same time, the success of fast-fashion retailers like Zara, in recent years, points to a market that may be yearning for more fashionable offerings.

 

In Mexico, consumers are most likely to draw inspiration for their clothing purchases from traditional media sources.

 
 
 
 

Shoppers say that television and magazines are most influential on their thoughts about clothing. In contrast, consumers in Brazil, Colombia, and the U.S. are more likely to get clothing inspiration from people they know and styles they see in retail stores. In this consumer landscape, retailers and brands may enjoy a more favorable direct link to their target markets through conventional media. Significantly, new media exposure is growing strongly among Mexicans. Some projections indicate that over 50% of Mexico’s population will be internet users by 2020 and consumers’ positive reception of social media has led retailers to engage consumers via social network avenues such as Facebook².

 

P13. Sources of clothing ideas

 

 

QUALITY TAKES PRECEDENCE

 

Regardless of demographics, quality (95%), comfort (95%), and fit (94%) top the list of primary factors in Mexican consumers’ decisions to purchase apparel. Shoppers indicate that price is a secondary consideration when shopping for clothing, which differs from Brazil, Colombia, and the U.S. where price remains a primary factor. Only 13% of Mexicans say they always or usually buy clothes on sale, indicating that they do not seek sales as often as other global consumers. While Mexicans are not as price-conscious as shoppers in other countries, apparel price increases could still impact the quantity of clothing that consumers are willing to purchase. Mexican shoppers show a tendency to buy fewer items rather than purchase items they consider of lesser quality³.

 

P30. Average consumers pay for the following items (measured in Mexican Pesos)

 
 
 
 

CONSUMER SHOPPING LOYALTY

 

A large segment of Mexican consumers (61%) favor domestic clothing stores (e.g., Liverpool, Aldo Conti, and Suburbia, etc.) and an equal number (61%) say that their favorite clothing brands (e.g., Zara, Sasha and Polo, etc.) are international. Although some domestic clothing brands such as Oggi Jeans and Aldo Conti rank high among consumers, international brands are preferred among women, youth, SEL AB, and consumers who mostly shop at specialty stores. Allegiance to national stores may be influenced by a sense of cultural connection and international brand preferences may be due to consumer interest in global fashion trends³.

 

Only two-thirds of Mexican consumers say they cross-shop at different retailers for clothing. This figure pales in comparison to the 94% of U.S. consumers who divide their shopping time among channels. Based on these findings, Mexican shoppers may be more store-loyal than U.S. consumers.

 

 

TOP 10 Favorite Clothing Stores

 
 
 

P17. In general, what is your favorite brand of clothing?

 
 
 
 
 
 
 

APPAREL PURCHASES DRIVEN BY DESIRE

 

Although most Mexicans tend to buy clothing basics, they are purchasing apparel more out of desire than need. More than half of Mexican consumers said they purchased new T-shirts (54%), jeans (52%), and dress shirts (52%) for desire-based reasons like they wanted new ones and wanted new styles. In contrast, U.S. consumers spend more based on needing new clothes due to fit or durability issues. Cotton clothing staples such as socks, underwear, T-shirts, dress shirts, and jeans account for the majority of Mexican consumer’s wardrobes. On average, consumers say they spend about $886 (11,243 pesos) on clothing for themselves and others annually.

 

P7. How often do you shop for clothing for yourself?

 
 

 

CLOTHING FIBER MATTERS

 

Preference for cotton apparel is high among all demographic segments. The majority of Mexican consumers (75%) prefer clothing made of cotton (algodón). Among the list of qualities that shoppers use to describe cotton, comfortable, good quality, and durable rank the highest. These qualities are the same factors that consumers say influence their decision to purchase. Given that 9 out of 10 consumers associate cotton with quality, it is not surprising that 68% say they would pay more to keep cotton in the clothing they buy. As the middle class continues to seek ways to enhance their lifestyle, they may seek apparel that best reflects their status. This growing consumer force will continue to seek out cotton apparel and the stores and brands that will help meet their needs for quality clothing.

 

P33. Percent saying the following attributes very or somewhat describe apparel made from cotton

 
 

About the Research

 

Cotton Incorporated’s Mexico Consumer Survey was conducted through telephone interviews among 900 consumers living in Mexico City. Respondents were male and female, ages 15-50, in socioeconomic groups AB, C+, and C, and shopped for most of their clothing at supermarket, department, or specialty stores. Research was conducted in the fall of 2012 by Ipsos.

 

External Sources: The Economist, Mexico Today1, Euromonitor International2 y McKinsey & Company³

 

 

Links

 

1. http://www.economist.com/news/special-report/ 21566782-cheaper-china-and-credit-and-oilabout- start-flowing-mexico-becoming

 

2. http://mexicotoday.org/article/booming-middle-class-secret-mexico%E2%80%99s-conomicgrowth

 

3. http://cottonusa.files.cms-plus.com/Sourcing/ FileDownloads/Esteban%20Bowles%20presentation %20Sourcing%20Fair%20Bogota%202012%

2005% 2002%2012.pdf o http://bit.ly/Wrfxov

 

4. http://www.euromonitor.com/apparel-specialist-retailers-in- mexico/report

 

5. https://www.mckinseyquarterly.com/Retail ConsumerGoods/SectorsRegions/Understanding Mexicos evolving consumers 3005

 
 
 
 
 
 
 
 
     
 

Plant:

920 Milliken Road
Spartanburg, SC

Phone:

(864) 503 1169

Web Site:

www.milliken.com

 

Contact name/number:

Brenda Burris Drake
Vice President Marketing, Specialty Fabrics Division    

E-Mail: brenda.burris-drake@milliken.com

 

Mr. Bob Mazur
Senior Account Manager

E-Mail: bob.mazur@milliken.com

 

List of Senior Management:

Mr. Jeffrey Price, President, Specialty Fabrics Division

 

History of Company:

150 years as a textile, flooring and chemical manufacturer

Products:

Wide range of performance textiles for clothing, shirting, uniforms, light industrials, and other protective clothing.

 

Also manufacturer of industrial mats, flooring solutions, and chemicals.

 
   
   
   
 
 
 
 
 

Plant:

2201 MoCaro Drive
Statesville, NC 28677

Phone:

(704) 878 6645

Fax:

(704) 873 6139

Web Site:

www.mocaro.com

 

Contact name/number:

Mr. Rick Landau
Vice President
E-Mail: sales@mocaro.com

 

List of Senior Management:

Mr. Lawrence Frank, CEO
Mr. Rick Landau, Vice President

 

History of Company:

After 43 years in the South American textile market, managing Open End spinning, circular knitting of every kind, dyeing and finishing with the finest mostly European equipment, in June 2014, Larry Frank decided to essentially leave Venezuela and begin a second life in his native USA, bringing his family to North Carolina. He searched for the right business, similar to what he was leaving behind. One way or another, his investigations led him to Mocaro. After carefully examining the location, installation and analyzing the growth possibilities, he purchased Mocaro and began the slow yet constant recuperation of Mocaro and its assets.

 

New machinery was purchased to put the mill up to world class standards. New computers and new cutting edge administrative and production software was installed so Mocaro could offer its current and its new customers the best customer service and up-to-date production information available.

 
   
   
   

Our 170,000 foot modern production facility has all of our processes under one roof. That means we maintain control of your fabrics at each and every production point. Your goods will never leave our plant from the minute it is received until it is shipped

 

A new sales organization was formed and integrated into the daily management of the company, something Mocaro never had developed. In short, we have injected a new life into our company, complete with the fresh excitement of building a company dedicated to customer service. This goal has been explained and installed in each of our employees. We truly are the new Mocaro.

 

Products:

Woven and knitted fabrics, up to a width of 82 inches.

 

• Anti-microbial
• Moisture Management - Water Repellent
• Mointure Management - Water Resistant
• Moisture Management - Wicking
• Flame Retardant (FR)
• Ultraviolet Protection (UPF or UV)
• Soil Release Finish
• Hydrophilic Finish

 

We have an installed capacity of 500,000 lbs/week, all dyed in our pressure jets of various sizes. Surely we can assign one or more jets to your lot size requirements, always assuring proper color management and repeatability between loads

 
 
 
 

Plant:

PO BOX 1787
Gastonia, NC 28053

Phone:

(704) 874 5000

Fax:

(704) 874 5176

Email:

sales@parkdalemills.com

Web Site:

www.parkdalemills.com

 

Contact name/number:

Mr. Charles Heilig
President

Phone:

(704) 874-5000

Fax:

(704) 874-5176

E-Mail:

cheilig@parkdalemills.com

 

Mr. Dan Morrison
Vice President Sales & Major Accounts

Phone:

(704) 874 5000 Ext. 5135

Fax:

(704) 874 5176

E-Mail:

dmorrison@parkdalemills.com

 

List of Senior Management:

Mr. W. Duke Kimbrell, Chairman of the Board
Mr. Anderson D. Warlick, Vice Chairman & CEO
Ms. Charles S. Heilig, President

 

History of Company:

Parkdale is proud to be one of the top sales yarn spinners in the world! We are the single largest consumer of USA grown cotton; using in excess of 25,000 bales of cotton each week. We have twenty seven manufacturing facilities in the US, one in Mexico, and one in Colombia. With speed to market extremely critical in today's challenging environment, we have added distribution centers strategically located in Honduras, El Salvador, and the Dominican Republic to support our customers. Reinvesting in the latest technologies is a backbone of our rich history.

 

Parkdale was founded in 1916 and remains committed to being an industry leader. As an industry leader we constantly investing in the latest technologies. Parkdale recently invested over $60 million USD in a 100% cotton Open End facility that has been referenced as the most efficient spinning plant in the World. Today we are currently investing over $90 million USD in a cotton / polyester blend facility that will be equally impressive and have extensive flexibility.

 

These investments demonstrate our commitment in the latest technologies to keep our customers competitive in the global market.

 
   
   
   

Parkdale manufactures fine yarns using open end spinning, ring spinning, air jet and vortex spinning technologies for the knit, woven, hosiery, and industrial end uses. We produce 100% cotton, 100% polyester, cotton / polyester blends, heather blends, and tri-blend yarns. We have expanded to include many specialty fibers such as rayon, modal, acrylics, and FR rated fibers as well. We produce organic cotton and RPET polyester yarns as well and are certified by Oregon Tilth to meet the GOTS requirements. In open end yarns we offer a style spun "soft OE" yarn. Slub yarns in open end spinning and ring spinning as well as the latest negative slub effect in ring spinning.

 

In Colombia, Parkdale operates an open end spinning and ring spun facility in the Rio Negro area. This facility opened in 2005 and has quickly gained an excellent reputation for supplying quality spun yarns. We have the ability to offer 100% cotton on open end spinning, 100% combed cotton on ring spinning, and a variety of specialty yarns as well. These include cotton heathers, slubs and negative slubs, and other novelty yarns as well. With the importance of speed to market, specialty development, and quality being key to our industry, Parkdale is excited about the opportunity to meet your needs.

 

Products:

  • 100% cotton ring spun yarns, 6/1-40/1 Ne, combed & carded
  • 50/50 & 60/40 cvc ring spun yarns, 12/1-40/1 Ne, combed & carded
  • 100% cotton open-end and soft spun yarns, 6/1-30/1 carded & combed
  • 50/50 & 60/40 cvc open end yarns, 7/1 – 36/1 carded
  • Air Jet yarns, 12/1-40/1 Ne, carded cotton & 100% polyester
  • Heathers, 5/1-30/1 Ne, combed and carded OE & RS
  • Evergreen® yarns, open-end, 5/1-20/1 Ne
  • Organic cotton yarns, 6/1-30/1 Ne, OE & RS
  • Slub Yarns and Tri-blend Yarns
  • Specialty fibers including modal, rayon, acrylic, and many others upon request

 

End Uses:

  • Knitting yarns
  • Weaving yarns
  • Hoisery yarns
  • Industrial Yarns
  • Specialty Yarns
 
 
     
 

Plant:

13800 S. Figueroa Street
Los Angeles, CA 90061

Phone:

(310) 807-4421

Fax:

(310) 515-1333

Web Site: www.swisstexdirect.com

 

Contact name/number:

Michelle Reyes

Phone:

(310) 807-4421

Fax:

(310) 515-1333

E-mail : michelle@swisstexdirect.com

 

List of Senior Management:

Mr. Keith Dartley, President

 

History of Company:

Swisstex Direct, LLC, provides the global apparel manufacturing community with a total fabric solution for circular knitted fabrics. With innovative design and product development combined with the highest quality knitting, dyeing and finishing applications, we provide our customers with beneficial options and flexibility at our Los Angeles and El Salvador facilities.

 

Founded in 2005, Swisstex Direct provides a completely vertical solution with competitive pricing, backed by renowned quality, reliability, quick turn around and responsive customer service. As one of the world's most technologically advanced dye and finishing facilities, the Swisstex group provides a one-stop textile solution.

 

Swisstex firmly believes in the recycling, reuse of all materials possible. You will not find the use of any carriers for polyester dyeing or any resins of Formaldehydes that would be used for shrinkage control. Our commitment to operating a low impact facility leads us to alternative finishing procedures in order to avoid that use of extremely harsh chemicals that are harmful to humans or the environment.

 
   
   
   

At Swisstex, we adhere to a green corporate philosophy, with a full range of earth-friendly production and business practices that reduce waste and save natural resources. We pass the eco-advantage to our clients, in the knowledge that their fabrics were produced to a higher standard of efficiency.

 

We are continuously searching for ways to minimize our environmental footprint. As a result, we consume half the energy in our facility as the typical dyeing facility in the United States – with even greater savings over comparable facilities worldwide – measured in resources consumed per pound of fabric dyed.

 

Swisstex is a bluesign® partner. The basic idea behind the bluesign® standard is to combine aspects of consumer safety, water and air emissions as well as occupational health in a single standard under the general objective of resource productivity. With its practical and solution-oriented approach, the bluesign® standard creates transparency along the whole textile production chain without compromising functionality, quality or design.

 

Products:

  • Knit (jersey, rib, flatback rib, French terry, loop terry, thermal, fleece, interlock, sweater knit, pointelle, pique, mesh, ponti, guaze, jacquard, piece dyed stripes)
  • Basics (cotton, poly/cotton, polyester, cotton/spandex, rayon)
  • Premium Fibers (Supima® Cotton, Micro Modal®)
  • Synthetic Performance Fibers
  • Specialty Applications (wicking, dri-Release®, UV Resistance,
    antimicrobial)
 
 
 
     
 

Plant:

8760 East Franklin Street
P.O. Box 218
Mt. Pleasant, NC 28124

Phone:

(704) 436-6527

Fax:

(704) 436-9461

Web Site: www.tuscarorayarns.com

 

Contact name/number:

Mr. David Roberts
Chief Executive Officer

Phone:

(704) 436-6527

Fax:

(704) 436-9461

E-mail :

droberts@tuscarorayarns.com

 

Mr. Andy Long
Vice President of Sales & Marketing

Phone:

(704) 436-6527

Fax:

(704) 436-9461

E-mail :

along@tuscarorayarns.com

List of Senior Management:

Mr. Martin B. Foil, Chairman Emeritus
Mr. David Roberts, Chief Executive Officer
Mr. Andy Long, Vice President of Sales & Marketing
Mr. Doug Merritt, Vice President of Manufacturing
Mr. Joe McLester, Vice President of Sales Administration
Mr. Phil Absher, Vice President of Human Resources

 

History of Company:

Tuscarora Yarns has been a reliable spun yarn source for the apparel and textile industry since 1899. Over the past 100 years the company has grown to be the largest manufacturer in the United States of cotton heather, mélange, novelty and custom-blended yarns. Both ring spun and open-end equipment are utilized to produce a very eclectic line of spun yarns with unsurpassed quality.

 

In May of 2009, Tuscarora acquired CloverTex, LLC, a producer of premium, ring-spun yarn. The combined companies operate under the Tuscarora name, and the owner of CloverTex, David Roberts, now serves as the COO of Tuscarora.

Tuscarora Yarns' motto is “Spinning the Products of Imagination”. Through the experience of its creative work force and state of the art technology, Tuscarora Yarns strives to transform customers' ideas into profitable realities. Unmatched color creation and matching begin in a unique R&D facility that is set up with a minimanufacturing center, enabling it to develop customer color submits in a matter of minutes. Orders are processed with a just-in-time attitude while maintaining the highest quality standards.

 

Tuscarora Yarns works with a wide range of fibers to produce heathers, sophisticated mélanges, mock twists, solids and other specialty yarns. This list of fibers includes, but is not limited to, cotton, polyester, acrylic, rayon, Modal, Tencel, flax, wool and silk. Many of these can be spun in their 100% form or can be blended with one another.

 
   
   
   

Yarns are offered in carded, semi-combed and “Five Star Brand” fully combed qualities. The general count range is from 4/1 to 40/1 utilizing both ring spun and open-end spinning. Plied yarns are available in the full count range and in both spinning types. Slub yarns and nub yarns are also available. Tuscarora offers package-dyed yarns, air jet spun yarns, and technical fiber yarns through partner companies.

Through Tuscarora's international sales and marketing organization, business can be efficiently handled on a global scale. Tuscarora's bilingual staff has received extensive education in international sales and documentation in preparation for handling all aspects of international trade.

 

Products:

  • 100% Cotton Heather and Melange Yarn, Ring Spun and Open End, 4-40 Ne.
  • Cotton and Polyester Blended Heather Yarns, Ring Spun and Open End, 4-40
    Ne.
  • Cotton and Rayon Blended Heather Yarns including Modal and Tencel, Ring
    Spun and Open End, 4-40 Ne.
  • Cotton and Acrylic Blended Heather Yarns, Ring Spun and Open End, 4-40
    Ne.
  • 100% Polyester Heathers, Ring Spun and Open End, 4-40 Ne.
  • 100% Rayon Heathers, Ring Spun and Open End, 4-40 Ne.
  • Mock Twist Yarns, 100% Cotton, Acrylic, Polyester, Rayon and Blends, Ring
    Spun, 6-30 Ne.
  • Mock Twist for Piece Dye, Natural Cotton/Polyester and natural Cotton/
    Solution
  • Dyed Color, Ring Spun, 6-30 Ne.
  • 100% Solution Dyed Acrylic Sunblock® Yarns, Open End 4-24 Ne.
  • Recycled yarns for multiple end uses.
  • Specialty blends with Flax or Wool, Ring spun.
  • 100% Cotton Solid Color Yarn

Products of Special Interests

  • Original Vintage Streaky Triblend Yarn
  • “Excite” Multi-Colored Sophisticated Melange Yarn
  • Retrospun Heather Yarn
  • “Shantung”, a Polyester/Cotton blend striated natural yarn that becomes a
    colored slub/nub yarn when dyed
  • Recycled Polyester Yarn.
  • ProTura – modified cotton or flax with unique dye capabilities

End Uses:

  • Knit and Woven Apparel
  • Home Fashions
  • Upholstery
  • Industrial Fabrics
 
 
 
 
 
 
Antex Knitting Buhler Quality Yarns Corp.Cap Yarns, Inc.Carolina Cotton Works, Inc. - CCWCentral Textiles/Cotswold IndustriesContempora FabricsFrontier Spinning Mills, Inc.Hamrick Mills, Inc.Keer America CorporationMilliken & CompanyParkdaleSwisstex DirectZagis USA