E-marketplaces in the Textile an

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					E-marketplaces in the Textile and
Leather Sector
By Letizia Gallacci and Giovanni Luca Atena

The International Scene
Recent reports regarding the global performance of the leather
and textiles industry sector indicate soft demand and stagnated
consumption, resulting in zero growth.
It is not surprising then that a decline in export activity for
leather and textiles has occurred.
A closer look at 2001/2002 export figures show a greater
reduction in the export of leather products than for textiles and
clothing.
Markets hardest hit were the USA and Japan, reporting a
decrease in export activity of 10%.
On a more positive note, the first half of 2004 is expected to see
better results.


eBusiness in the Textile Industry
So, do e-marketplaces provide the most benefit to buyer and sellers in ‘tough economic times’
eliminating the need for ‘expensive’ intermediaries?

Well, according to eMarket Services, 45 e-marketplaces are now active in the Leather and Textile
sectors. This number is not especially high considering the volumes of leather and textiles traded
globally, but e-marketplaces specific to Leather and Textiles are increasing, as is the volumes being
traded within them.


                   Growth in the Number of Textile and Leather
                                 E-marketplaces

       50                                                            46
                                                           45
       45                                          41
       40                                37
       35
                                                                               45
       30                       25
                       22
       25
       20
              13                                                       E-marketplaces in
       15
                                                                       the Textile and
       10                                                              Leather Industry*
        5
        0
            jun-01 oct-01 feb-02 jun-02 oct-02 feb-03 jun-03 oct-03


        Source: ICE - eMarket Services Italia

Italy is the world’s second largest producer of textiles (6.5%) and the third largest producer of clothing
(5.3%).

At the premium ‘high-end’, 10 Italian companies control approximately 20% of the world market with an
income of approximately 6 Million Euros.

It follows then that Italy has the highest number e-marketplaces dedicated to Leather and Textiles
products (in terms of headquarters and sales offices).



Report by eMarket Services                         1/8                          www.emarketservices.com
                               Geographic Location of E-marketplaces
                                   in Textile and Leather Industry

                                                       Africa
                             North America
                                                        2%           Asia
                                  24%
                                                                     26%


                        Latin America                                    Australia &
                              3%                                          Oceania
                                                                            5%
                                                 Europe
                                                  40%




Global Focus                                                        E-marketplaces in Europe
The focus of the majority of Leather and Textiles e-
                                                                    (headquarters and
marketplaces is worldwide (68%) where transactions involve
                                                                    sales offices)
various countries. Of these, many (33%) focus more on a
                                                                    Italy                 13
particular geographical area or region, usually coinciding with
the country where the e-marketplace has its head office. In the     Spain                  9
leather and textiles sectors it is common for sellers from a
particular country to offer locally produced products on a global   Uk                     4
scale.
This is the case for e-marketplaces in Italy, Spain and certain     Germany                4
Eastern European countries.
                                                                    Romania                2
In addition, there are a large number of e-marketplaces with        France                 2
sellers operating in Asian countries, such as China, Taiwan,
Pakistan or India. These areas are becoming increasingly            Portugal               2
competitive in the sector due to low labour costs.
                                                                    Poland                 2
18% of Leather and Textiles e-marketplaces have a
                                                                    Belgium                1
geographical focus on a single country, 10% focus on the USA,
and 6% on Europe with this focus centred primarily in Italy and     Bulgary                1
Spain.
                                                                    Hungary                1

                                                                    Netherlands            1




Report by eMarket Services                         2/8                         www.emarketservices.com
                                     Geographic focus



                                   focus on
                                    Europe                Global focus
                                      6%                      35%
                 focus on USA
                     10%



                   focus on a
                     country                              Global focus
                      18%                                 +preferential
                                                            country
                                                              33%




Trading Function, Buyers & Sellers and Products with the
highest rates of transaction
Leather and Textile products are more suited to online sales than others. This is confirmed by widespread
research on B2C (business to consumer) electronic commerce, where the
clothing/accessories/handbags/footwear sector is identified as one of the most attractive for online
purchases by end users.

Trading functions
As with most web sites that sell directly to end-consumers, products that are bought and sold in B2B e-
marketplaces are frequently presented in a virtual window, as if in a shop. They are usually associated
with an online catalogue, and a shopping cart tool through which orders can be placed directly is offered.

Trading tools are selected to cope with the peculiarity of the Leather and Textile sector and its traded
products. The Product catalogue is a key trading tool because it affords a high level of flexibility to meet
the buyers’ requirements. Individual companies are able to present their unique product offerings (style,
fabric, price and so on).

Another online trading tool commonly used is the proposal and request system (RFX –Request for
Proposal, Bid, and Quotation). This is a flexible and useful tool. A company can make an offer or a
request according to its particular need (such as unsold warehouse stock) and wait for a reply. The
auction and reverse auction tools are used less.




Report by eMarket Services                          3/8                         www.emarketservices.com
Buyers and sellers
Participants in Leather and Textiles e-marketplace transactions tend to be final resellers, representatives,
producers of raw materials, final product manufacturers, and wholesalers who are interested in importing
from a specific geographical area (as in the case of products ‘Made in Italy’).

A minority of users are producers of machinery specific to the textile industry and/or leather processing.


                 Products traded on E-marketplaces
                  in the Textile and Leather Industry

                          textile                                           23

               textile & leather                   9

                        leather                    9

                     machinery            4

     a w ide range of products        2




Products
Not all Leather and Textiles e-marketplace trade in both Leather and Textiles. 23 e-marketplaces focus
on textiles only (49%), 9 on leather only (19%) and 9 cater for both (19%). 4 e-marketplaces trade in
machinery specific to the Leather and Textiles sector (9%). It is also possible to exchange Leather and
Textiles products on 2 horizontal (not exclusive) e-marketplaces (4%).

Textiles
On 44% of e-marketplaces it is possible to trade in all the products within the Textiles sector including
textiles, yarn, thread clothing, knitwear and linen for the house. Other e-marketplaces are more specific
and only buy/sell clothing and fashion wares (39%), while some e-marketplaces focus only on textiles
that can be chosen according to several criteria by customers (finishing, colour, quality).

                   Textile products traded
                    only
                  textiles
                    17%
                                                  all textile
                                                  products
                                                     44%
               only
            apparel &
             fashion
               39%

Leather
E-marketplaces dedicated to the Leather sector are less varied and fall into one of two camps. They are
either focussed only on footwear and its parts (soles, uppers, heels) or on multi-products, where the
goods traded come from the entire leather industry including leather apparel, handbags, footwear,
luggage, and wallets.




Report by eMarket Services                         4/8                           www.emarketservices.com
                                Leather products traded

                                                                           all leather
                                                                           products
                      only                                                     44%
                    footwear
                      56%




At present B2B trading in shoes is particularly successful in Italy and Spain though e-marketplaces
dedicated to shoes are increasing in Asian countries mainly due to low labour costs.
As a general rule Asia is most competitive in low quality products while Italy dominates the high-end
quality products both in leather and in textiles.


Engaging a Leather and Textiles e-marketplace
Most e-marketplaces have clearly defined procedures to be followed by both buyers and sellers.

Registration
Of those Leather and Textiles e-marketplaces we analysed most require registration to enter the trading
area. Only very few allow free access.



                                E-marketplaces which require
                                        registration

                                    no registration        not available
                                       required                data
                                         11%                    4%




                                                      registration
                                                        required
                                                          85%


Services
The services additional to the core trading platform provided by e-marketplaces such as consulting,
logistics management, web solutions, and financing, will vary from marketplace to marketplace.

Access
Regarding pre-qualification or screening, some e-marketplaces will select buyer and seller companies to
ensure the reliability of those companies trading on their platform. Other e-marketplaces avoid any pre-
qualification, as they suppose it can discourage companies from joining the e-marketplace.

For 71% of Leather and Textiles e-marketplaces, companies must pay a fee to use the trading platform
and the related services.

This payment can be as a membership fee or a transaction fee, or both.




Report by eMarket Services                             5/8                               www.emarketservices.com
                         E-marketplaces which require fee or
                              transaction percentage

                                          not available
                                              data
                                              11%

                             no fee
                              18%
                                                                  fee
                                                                  71%



* Please find attached an information sheet containing information relating to e-marketplaces in Leather
and Textiles sector including head-office and sales offices locations and (membership and/or transaction
fee).




Report by eMarket Services                        6/8                        www.emarketservices.com
                                                                                                  Fee
                                                                                                  or
                                                               Head                               Trans
    Name                URL                    Location        Quarter     Sales Offices          %     Reg

1   Apparelbids         www.apperelbids.com    North America   USA         ___                    Yes    Yes

2   AsianProducts       www.asianproducts.co   Asia            Taiwan      ___                    n.d.   Yes
                        m
3   Calzadonet.com      www.calzadonet.com     Europe          Spain       ___                    _      Yes

4   CanalTextil         www.canaltextil.com    Europe          Spain       ___                    _      Yes

5   ClothingBids.com    www.clothingbids.com   North America   Usa         ___                    _      Yes

6   CNTEX - China       www.cntextile.com      Asia            China       ___                    Yes    n.d.
    Textile Network
7   Fabria              www.fabria.com         North America   Usa         ___                    n.d.   Yes

8   FashionUnited.com   www.fashionunited.com Europe           Netherlands _ _ _                  Yes    Yes

9   FashionXchange      www.fashion-x-         Europe          Germany     ___                    Yes    Yes
                        change.com
10 FiberBuys.com        www.fiiberbuys.com     North America   Usa         ___                    Yes    n.d.

11 FloorUniverse        www.flooruniverse.com North America    Usa         ___                    Yes    Yes

12 Fobconnect           www.fobconnect.com     North America   Usa         South Africa,China,     _     Yes
                                                                           India,
                                                                           Indonesia,Japan,Korea,
                                                                           Australia,Belgium,Czec
                                                                           hRepublic,
                                                                           France,Germany,Italy,S
                                                                           pain,Poland,Portugal,Tu Yes   Yes
                                                                           rkey,USA
13 HungaroTex           www.hungarotex.com     Europe          Italy       Hungary                 Yes   Yes

14 InfoMat              www.infomat.com        North America   Usa         ___                    Yes    Yes

15 ItalianModa.com      www.italianmoda.com    Europe          Italy       Bulgaria, Romania, Usa Yes    Yes

16 Leather Commerce     www.leathercomau.com Australia &       Australia   ___                    _      Yes
   Australia                                 Oceania
17 Leatherfashionandm www.leatherfashionand Europe             Italy       ___                    Yes    Yes
   ore                more.com
18 Leathernet           www.leathernet.com     Europe          Uk          Usa                    _      _

19 LeatherXchange.co    www.leatherxchange.co Europe           Spain       China,India,Singapore,I Yes   Yes
   m                    m                                                  taly,Russia,Argentina,B
                                                                           razil,Mexico,USA
20 LinkApparel          www.india-apparel.com Asia             India       ___                     Yes   Yes

21 Modainfantil.net     www.modainfantil.net   Europe          Spain       ___                    Yes    _

22 Moddo.com            www.moddo.com          Europe          Spain       Portugal,Brazil,Colombi Yes   Yes
                                                                           a, Peru Mexico,
23 Pagine tessili       www.paginetessili.it   Europe          Italy       ___                    Yes    Yes




    Report by eMarket Services                        7/8                    www.emarketservices.com
24 PakistanTex           www.pakistantex.com    Europe          Italy      Pakistan                Yes    _

25 Paktextile            www.paktextile.net     Asia            Pakistan   ___                     _      _

26 RomTextiles           www.romtextiles.com    Europe          Romania    Italy                   Yes    Yes

27 Sell2italy            www.sell2italy.com     Europe          Italy      ___                     Yes    Yes

28 Shoenet               www.shoenet.org.tw     Asia            Taiwan     ___                     n.d.   Yes

29 Taiwan Textile        ttf.textiles.org.tw    Asia            Taiwan     ___                     n.d.   Yes
   Federation
30 Tanneryandmore        www.tanneryandmore.c Europe            Italy      ___                     Yes    Yes
                         om
31 Textile Network       www.texnett.com        Asia            India      ___                     n.d.   _

32 Textile Web           www.textileweb.com     North America   Usa        Japan, UK, USA          Yes    Yes

33 Textileitaly          www.textileitaly.com   Europe          Italy      ___                     Yes    Yes

34 TexWorld              www.texworld.com       North America   Usa        India                   Yes    Yes

35 TexYard               www.texyard.com        Europe          Uk         China,India,Thailand,   Yes    Yes
                                                                           UK
                                                                           Germany,Turkey,
36 Tractes.com           www.tractes.com        Europe          Spain      ___                     Yes    Yes

37 Tractescalzado.com www.tractescalzado.co Europe              Spain      ___                     Yes    Yes
                      m
38 Tractesjuguete.com www.tractesjuguete.co Europe              Spain      ___                     Yes    Yes
                      m
39 United Raw            www.urms.com           Asia            Taiwan     Japan,Korea,Singapore, Yes     Yes
   Materials Solutions                                                     Usa, Taiwan,Germany
   Inc.
40 US Style              www.usstyle.net        Europe          Italy      ___                     Yes    Yes

41 Vigevano Shoes        www.vigevanoshoes.co Europe            Italy      ___                     Yes    Yes
                         m
42 Woolnet               www.woolnet.co.nz      Australia &     New        ___                     Yes    Yes
                                                Oceania         Zealand
43 World Fashion         www.worldfashionexcha North America    Usa        India                   Yes    Yes
   Exchange              nge.com
44 Wotol                 www.wotol.com          Europe          France     Indonesia,Japan,Malays _       Yes
                                                                           ia,
                                                                           Pakistan,Singapore,Tai
                                                                           wan,Thailand,Poland,US
                                                                           A
45 Yeboss                www.yeboss.com         Asia            China      ___                    Yes     Yes




   Report by eMarket Services                          8/8                   www.emarketservices.com

				
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