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Final presentation slideshare

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Final presentation slideshare

  1. 1. By: Emily Wiley
  2. 2. New Look Background A value high street fashion retailer that prides itself on always giving the customer a new experience with surprisingly low prices and more “look what I just found” moments 1000 stores nation wide, in the UK, Ireland, Europe, the Middle East, Singapore, Russia, and Poland Committed to ethical trading and animal welfare Serve over 120 markets worldwide, including e- commerce
  3. 3. Suppliers Sourcing strategy based on the UK/Europe, China, Southeast Asia, and the Indian sub-continent Suppliers categorized into 3 groups  First category: these suppliers are dedicated to manufacturing New Look’s products and are responsible for manufacturing in house designs (China, Turkey, and Bangladesh)  Second Category: suppliers that New Look works directly with in the country of origin, sometimes supported by local agents  Third Category: suppliers where New Look works with the supplier’s design team to develop products to complement its own in house designs (2/3 of all products designed in house)
  4. 4. Jersey Countries Sourced From:  Bangladesh  UK  China
  5. 5. Jersey: Cons of Sourcing Bangladesh:  Protests over costs and conditions  Factories are producing the maximum amount, and while retailers are reaping the benefits, the workers are not receiving any party of it  Riots in addition to protests will start to increase due to 122 of 825 factories not paying their employees on time  Slower lead times UK  British Manufacturing on its last legs, too expensive to source in the UK  Cheaper to source out of the country than in the country  Less people employed in UK for manufacturing, therefore harder to find a company to source from China  Different quality standards  Promote and produce knock-offs of designer goods, and sell them to western (unknowing) retailers  Longer lead times
  6. 6. Jersey: Pros of Sourcing Bangladesh  One of the cheapest due to low wages cost  Manufacturing is moving to Bangladesh, becoming a greater provider to the UK high street  New Look believes in Ethical Trading, as in taking care of the employees that produce their products and ensuring they live a decent life style UK  Supporting home country’s economy  Providing jobs and security to more people  Quicker lead times China  Number one manufacturer of apparel and textile industry  Cheaper sourcing  Well developed manufacturing industry  Good reputation for quality  Are willing to work with retailers because they are eager for western business
  7. 7. Eveningwear Countries sourced from:  China  Romania  India
  8. 8. Eveningwear: Cons ofSourcing China  Different quality standards  Promote and produce knock-offs of designer goods, and sell them to western (unknowing) retailers  Longer lead times  Language barrier Romania  Harder to recruit trained staff due to job openings in the west after Romania’s EU entry  Currency value is going up, which will eventually cause production to be more expensive  Industry still developing India  Long lead time  High reliance on roads, only half of which are actually paved, making deliveries much harder  Time zone differences make communication much more difficult
  9. 9. Eveningwear: Pros ofsourcing China  Number one manufacturer of apparel and textile industry  Cheaper sourcing  Well developed manufacturing industry  Good reputation for quality  Are willing to work with retailers because they are eager for western business Romania  Two day delivery time by truck  No duty or quota on deliveries  No customs control between Romania and Britain, therefore quicker lead times  Easy travel India  High productivity levels  Competing with china, making the price lower  Growth of IT industry, making India more capable of catering to the needs of customers  Thousands of talented employees available, all willing to take and compete for the job, bringing modern technology and innovative ideas to the table  Cheaper cost
  10. 10. Lead Time Critical Path for lead times  Sample development  Place cloth order  Finalize garment order  Manufacture  Shipping  Customs  Total: 16 weeks Will be similar for India, due to the competition between India and China for the biggest manufacturing industry Longer for Romania, due to travel difficulties Shorter for UK, because of the lack of customs and closer shipping
  11. 11. Costs of Garment Compared toRetail Wholesale price is half of the retail price Varies per company Jersey’s MSRP is cheaper than evening wear Cheaper to buy in bulk, therefore creating cheaper retail prices
  12. 12. References http://www.drapersonline.com/sourcing-at-risk-in http://news.bbc.co.uk/1/hi/business/1861801.stm http://clothesource.blogspot.com/2009/01/could- http://www.chinasourcingblog.org/2010/01/china- http://manufacturingsourcing.com/outsourci ng-to-india/

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