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Case Study: Garco10 to enter New Zealand

5 slides 1. About Garco10 - Capacity: 6 millions of products covering men's shirts, pants, jackets, tops, bottoms, ladies wear and other products - 80% of the products are being exported to all over the world including Germany, Japan, United Kingdom, Canada, and America (Contract Manufacturing). - In domestic markets, the company sells their own brand names such as Gate, May10, Garco 10 etc. - High level of quality which is in compliance with ISO 9000 2. Country analysis 2.1 Social - Population: 4.3m (126th) - Age structure: 15-64: 66.4%; 0-14: 20.4%; over 65: 13.3% (Median age: 37 yrs old) - Urbanization: almost 90% of the population lives in cities - Lifestyle: casual, easy-going 2.2 Politics - Government: Parliament Democracy and a Commonwealth realm - Political stability: 3rd globally (IDM World Competitiveness Yearbook) 2.3 Economy - Industrialized, free market economy - GDP: 117.8b (2010, 63rd); PPP: $27,700 (2010, 51st) - Export-oriented (agriculture, advanced manufacturing, tourism) vulnerable to recession - Tariffs: reduced substantially, average weighted tariff rate is around 2.2% (WTO, 2009), the highest tariff rate levied on textiles, clothing and footwear - The Asian- Australia- New Zealand Free Trade Agreement (AANZFTA): tariffs are gradually reduced and eliminated by 2020 - Taxation: corporate tax rate is 30% of taxable income; capital gain tax is applied; repatriation of profits can generally undertaken at any time 2.4 Technology - Excellent communication systems

- Mobile: 4.7m (2009) - Internet user: 3.4m (80% of the population) 3. Market analysis - Apparel Industry is classified includes: Cut and Sewn Textile Product Manufacturing; Clothing Manufacturing (According to Australian and New Zealand Standard Industrial Classification) - Leading manufacturers use home-grown fine wool and other natural fabrics in their garments - Global brands: Icebreaker, Pumpkin Patch, Bendon, Macpac, Moontide, Orca, Snowy Peak/Untouched World (niche markets: sports and outdoor-wear, baby and childrens clothing) - Apparel industry is comprised of 77.1% small firms (1-9 employees), 20.9% mediumsize firms (10-49 employees), 1.7% large firms (50-99 employees), 0.8% very large firms (over 100 employees) 4. Challenges ahead - Tariffs - Natural fabrics - Competition with other members of AANZFTA 5. Information sources - Garco10 ( - CIA Factbook ( - IDM World Competitiveness Yearbook, International Institute for Management Development (IMD) ( - Tariffs in New Zealand, New Zealand International Institute of Economic Research (NZIER) ( - Taxation Guide, Australian Trade Commission ( - Industry Profile for Apparel Industry 2010, Apparel and Textile Industry Training Organization (