Uitic 18th congress session 3 3 steve jesseph presentation

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Improving Profits & Profitability Lessons from the Apparel Industry Steven Jesseph, Chief Operating Officer, ICG Group of Companies 15 November 2013


Global Apparel Industry

ICG

 US$1.2 Trillion in annual revenue worldwide  Most labor-intensive of all industry  Estimate over 300,000,000 workers

 Raw materials of cotton, silk, sheep, goat, wool, synthetic (oil), hemp, linen, leather  Materials come from over 60 countries

 Apparel production (for export) in 50+ countries for “western” markets  Domestic production in virtually all countries

 Highly regulated with trade preferences, quotas and duties


Everyone Wears Clothes

ICG


Fashion

ICG


Apparel is BIG Business

ICG


Modern Harvesting Equipment

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Child Labor in Cotton Fields

ICG


A Real Tannery

ICG


The Public’s View of Tanneries

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Children In Tanneries

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Fountain Set, Guangdong, China

ICG


Would You Drink This Water?

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Global Population Growth

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World Energy Consumption to 2040

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Global Food Demand

ICG

Source: CSIRO, Australia


Global CO2

ICG

Atmospheric Carbon Dioxide Concentration, 1000-2008

390

370

Parts per Million by Volume 350

330

310

290

270

250 1000

1100

1200

1300

1400

1500

1600

1700

Source: NOAA/ESRI; Worldwatch

1800

1900

2000


World Population Growth

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Water-Intensive Crops

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Hemp: A Very Effective Cotton Alternative

Name – Title and Date

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Poisoning Our Air

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Human Cost of Pollution

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Los Angeles, New York City, Chicago

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The Cost of Non-Compliance

ICG

 “We’re not going to Bangladesh”  US Chief Executive Officer

 “We’re leaving Bangladesh”  Multiple US and EU companies after factory fires and collapsed buildings

 “We’re moving our supply chain as close to our customers as we can. The costs of offshore manufacturing are going up too fast.”  “We need suppliers who share our commitment to the environment and good labor practices, and have a meaningful sustainability program.”