Business to Business: Textile Industry

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Business to Business Textile Industry

• By Ravinath, Srinivasan, Wu, Zhou

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Participants of the B2B Textile

• Sellers
• Wholesalers
• www.wallace-textiles.com
• www.unitedfabrics.com
• Raw products
• http//www.xsyarn.com/
• http//texprocil.com
• Manufacturers (dye, fiber, cotton..etc)
• http//www.filatex.com/
• http//www.cortyvis.com/
• End products Manufactures
• http//www.ydii.com/
• http//www.brody.co.uk/

• Buyers
• Retailers
• www.macys.com
• www.llbean.com
• End-product manufactures
• http//www.ydii.com/
• http//www.brody.co.uk/
• End-users
• http//www.macys.com
• http//www.sears.com

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MAJOR PLAYERS
Sellers
Buyers
Raw Products
Retailers
End Products Manufacturers
Wholesalers
Manufacturers
Manufacturers
End Users
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Objectives of the B2B Sites

• Most of the sites are exclusively for members to
  reach better tailored information with very rough
  information to non-members
• Also serves as a direct channel to consumers for
  specific end products
• Manufacturer seeking distribution channels
  primarily through wholesale
• Try to increase visibility among the distributor
  and consumer community
• Offer product description with different degree
  of details
• Provide one place to find all information about
  price and compare prices easily
• Eliminating paper work to improve efficiency and
  reduce transaction cost
• Automated processes in a traditionally
  conservative industry

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Challenges

• The manufacturers sites are generally
  rudimentary
• Become more efficient in attracting new customers
• Pay less attention to cycles and seasons and
  provide more promotional mechanisms
• Most of the sites can be reached only through
  search engines, less opportunities to attend
  Trade shows/ Fairs and hence more publicity
• Make the site more public and well-known/renowned
• How to offer differentiated benefits for premium
  customers
• Improve the details and specifics about the
  products
• Possibly automate regular shipping contracts

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Strength and Weakness of Current Website Design

• Good points
• Most sites provide detailed information about the
  products
• Detailed information about the manufacturer,
  location, strength in industry to create
  confidence among buyers
• Provide owners information and contact address
  to improve personal relationship
• Order forms are very user-friendly, customers
  dont need to go through pages and waste times as
  do B2C customers

• Rooms for improvement
• Simplicity of page layout without any advanced
  features
• Plain outlay
• Text blocks
• Color and images design are not professional and
  represent no company image of differentiation
  features
• Too less information to non-members and might
  exclude prospect customers

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Example of simplicity This is the main home page
of a knitwear manufacture to attract buying agent
Example of vulgar design This is the page of a
wholesaler listing addresses of domestic
distributors
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A Good Portal Example www.textileWeb serves as
the hub for all kinds of companies that has
anything and everything to do with textiles. The
site is also very good, user-friendly and
attracts huge site-traffic.
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A Good Wholesale Example www.llbean.com is an
industry intermediary that both reaches the
customers and conduct B2B to get the products in
whole-sale through the web. The sites are
well-designed and information-rich
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Textile B2B Operation Model

• Raw material providers
• Manufacture of wool www.wool.net.au
• Sellers of polyester, nylon, goom, etc.
• www.filatex.com
• Initial design and fabric components
• Wholesalers for fabrics
• www.fabricclub.com
• Sellers of cotton fabric designs
• www.hoffmanfabrics.com
• Manufactures of textile
• www.unitedfabrics.com
• Intermediary distributors www.textileweb.com
• Wholesalers and end users www.llbean.com

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Textile B2B Operation Chart
Sellers of end products
www.wallace-textiles.com
Wholesalers for fabrics/design
www.webindia.com/gga
www.fabricclub.com
Seller of cotton/design fabrics
www.hoffmanfabrics.com
Intermediary hubs
End-users
www.textileweb.com
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Textile Industry Leaders

• Shaw Industries
• Mohawk Industries
• Springs Industries
• Burlington Industries
• WestPoint Stevens
• Unifi
• Interface

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Player Dominance

• Incorporating technology that strengthens their
  strategic position
• We have excellent global resources and growing
  ability to provide consumer-ready products as
  well as fabrics. In addition, we are placing
  strong strategic emphasis on new applications of
  advanced technology.
• George W. Henderson, III, CEO of Burlington
  Industries
• Establish global presence in order to expand
  customer base
• Create complete product ownership by being the
  manufacturer, distributor, and seller

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Reasons for Player Dominance

• Establish partnerships with major commercial
  dealers and retailers to increase market coverage
• Mergers and Acquisition of competitors
• In addition to the Shaw/Queen merger, there was
  further consolidation in the floor covering
  industry.  Additional mergers and acquisitions
  involving approximately 2 billion in revenue
  occurred within our industry during 1998.  These
  acquisitions represent a rapid acceleration in
  the consolidation process.
• www.shawinc.com, CEO
• By strategically positioning itself in the market
• The Company is vertically integrated and is the
  nation's leading manufacturer and marketer of bed
  linens, towels, comforters and other accessories
  that are sold in retail outlets throughout the
  world.
• www.westpointstevens.com
• Has created a brand name due to history of
  company
• With over 186 years of experience, WestPoint
  Stevens is today the nation's largest producer of
  bed and bath fashions sold in retail outlets
  worldwide.
• www.westpointstevens.com

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Value-added in Textile Industry

• Dedicated service
• We take Orders to make your brand
  -- www.ydii.com
• Products are of high quality and competitive
  price
• Since 1946 we have been committed to satisfying
  our customers, 100, with the highest quality
  fabrics, in the latest styles at competitive
  prices --
  www.hoffmanfabrics.com
• Easy ordering for you, quick transportation from
  us
• our friendly, well-trained customer service
  representatives are available between 8A.M. and
  8 P.M., Monday through Fridayno minimum quantity
  requirement for fabrics or vinylscan ship
  lightning-fastship all orders within 24 hours of
  receipt.
  
  
  
  -- www.unitedfabrics.com
  

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Value-added in Textile Industry

• Instant access to the latest information of
  textile industry
• WebIndias customers reap the benefits of a fast
  and reliable internet connection as well as less
  than 24 hour customer response time
  --
  www.webindia.com
• TextileWeb provides reliable, up-to-date
  information to encourage business activity among
  buyers and sellers in the global textile
  marketplace
  --www.TextileWeb.com
• Free membership to the web community
• Active businesses with many big companies

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Reasons for Value-added Service