The document discusses ways to improve the profitability of Ted Baker's production process for its Flowtii skirt. It analyzes Ted Baker's business model and product mix. It then examines the planning, sourcing, making, delivery, and inventory processes for the Flowtii skirt. It recommends creating longer lead times and an EXW delivery method to build stronger supplier relationships and increase negotiating power. It also suggests addressing fit issues from previous seasons to prevent objections and increase profitability.

1. TED BAKER, PROFITABILITY AND THE SCOR MODEL
by Vandell Stretton
14039377
FBM Level 5
!1

2. INDEX
!2
0.0 Executive Summary
1.0 Ted Baker Introduction
1.1 Pricing
1.2 Product Mix
1.3 Core Consumer
1.4 Competitors
1.5 Physical Stores
1.6 Store Format
1.7 Operating Profit
1.8 Intangible Asset Increase
1.9 Current Trading
2.0 Ted Baker Space Allocation and Product Mix
2.1 Menswear
2.2 Womenswear
3.0 The Flowtii Skirt
3.1 Illustration
3.2 Fit photo
3.3 Sketch Sheet
3.4 Sampling Spec
3.5 Costing Sheet
3.6 E-Mail Conversation
3.7 Ted Baker Store Visit
3.8 Assumed Current Critical Path
4.0 Improved Planning Proposition
4.1 Luxury Consumer Desirability
4.2 Exclusivity, Originality and Competitor Comparison
4.3 Previous Season Feedback
4.4 Fastenings and Zip Tate
5.0 Improves Sourcing Proposition
5.1 Lead Time
5.2 Fabric Printing and Sourcing
5.3 Far-Shore Sourcing
5.4 Near-Shore Sourcing
5.5 Processes, Services and Raw Materials
6.0 Improved Making Proposition
6.1 Fabric Printing
6.2 Fabrics and Layplans
7.0 Improved Delivery and Transportation Proposition
7.1 Free on Board
7.2 EX Works
8.0 Improved inventory solutions proposition
8.1 Single Stock View
9.0 References
10.0 Image Bank
11.0 Bibliography
Page Number
3.
4-5.
6.
7.
8.
9.
10.
11.
12-13.
14.
15.
16.
17.
18.
19.
20.

3. 0.0 Executive Summary
This report analyses and suggests improvements to increase profitability of the luxury British retailer Ted
Bakers current method of garment production whilst focusing on one particular line the FLOWTII skirt. The main
consideration when producing a garment for a luxury brand is exclusivity and quality as outlined by
(Okonkwo, 2007) these concepts must be applied to every aspect of the critical path to ensure maximum
profitability and sell through of the garment.
Considering issues and feedback from previous seasons regarding the fit of the garment alterations should
be made to prevent further objections and increase gross profit of the garment, this includes creating a
different fastening and reducing the amount of available sizes. Considering creating a stronger relationship
with suppliers through creating longer lead times and using an EXW delivery method will ultimately allow for a
higher level of trust with suppliers and increase Ted Bakers negotiating power.
!3

4. 1.0 Ted Baker Introduction
1.1 Pricing
In regards to pricing strategy Ted Baker positions itself between the end of the high street and entry level
luxury market.
1.2 Product Mix
Ted Baker is a British lifestyle brand stocking clothing, accessories, homeware and beauty for men and
women by mixing trend led ideas with its own unique design concept.
1.3 Core Consumer
The core consumer for Ted Baker is AB Men and Women aged 25-35.
1.4 Competitors
Competitors for Ted Baker include Diesel, French Connection, G-Star, House of Fraser, Hugo Boss, Karen
Millen, Massimo Dutti, Paul Smith, Ralph Lauren, Zara, L.K. Bennet and AllSaints.
1.5 Physical Stores
With more than 350 stores and concessions worldwide in a total of 24 countries stores are typically around
2,500-4,500sq ft whilst concessions hold around 800q ft. Stores are mainly situated in prime town centre
and shopping mall locations or often in boutique areas in towns to cater to its target consumer.
1.6 Store Format
Stores follow a boutique like format using furnishings you would commonly find in a home.
(Verdict-Retail.com)
1.7 Operating Profit
Previously operating under the name of ‘No Ordinary Designer Label PLC’ a private company from
05/09/1990 until 30/06/1997. ‘Ted Baker PLC’ is now the GUO (Global Ultimate Owner) of the group with
an operating revenue of 387,564 thousand GBP. With an operating profit of 48,771 thousand GBP for the
tax year of 2015 this is an increase of just under 10,000 GBP from the previous year. (FAME Database,
Figure 2.)
1.8 Intangible Asset Increase
Interestingly Ted Baker PLC in 2015 doubled their intangible assets to 12,855 thousand GBP intangible
assets are often “…an asset that is not physical in nature. Corporate intellectual property (items such as
patents, trademarks, copyrights, business methodologies), goodwill and brand recognition are all common
intangible assets in todays marketplace.” (investopedia.com) This is an intelligent move for Ted Baker as
Daum, Jurgen H. suggests that the phenomena of diminishing returns known from traditional businesses with
tangible assets is converted into the phenomena of
increasing returns with intangible assets and
creates and communicates a more attractive story
to investors.
1.9 Current Trading
With British brand appeal Ted Baker has seen a
strong growth in retail sales overseas in North
America and Asia where sales growth in Europe is
at its lowest. Ted Baker has continued the
impressive performance seen in its 2014/15
financial year into 2015/16, with growth across
both retail and wholesale firmly in double digit
territory (see fig 1)
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Figure 1.. information collated from Verdict-Retail.com accessed online 8/2/16

5. !5
Balance sheet
31/01/2015 25/01/2014 26/01/2013 28/01/2012 29/01/2011 30/01/2010
th GBP th GBP th GBP th GBP th GBP th GBP
12 months 12 months 12 months 12 months 12 months 12 months
Cons. Cons. Cons. Cons. Cons. Cons.
Unqualified Unqualified Unqualified Unqualified Unqualified Unqualified
IFRS IFRS IFRS IFRS IFRS IFRS
Fixed Assets
Tangible Assets 51,804 45,083 45,412 35,680 28,368 25,508
Land & Buildings 36,209 30,114 31,658 22,997 19,042 17,559
Freehold Land
Leasehold Land 36,209 30,114 31,658 22,997 19,042 17,559
Fixtures & Fittings 12,121
Plant & Vehicles 7 9 2 10 15 31
Plant
Vehicles 7 9 2 10 15 31
Other Fixed Assets 15,588 2,839 13,752 12,673 9,311 7,918
Intangible Assets 12,855 6,080 983 968 997 634
Investments 7,410 6,038 5,890 4,607 3,592 2,611
Fixed Assets 72,069 57,201 52,285 41,255 32,957 28,753
Current Assets
Stock & W.I.P. 111,114 80,432 67,673 51,872 42,492 33,450
Stock 6,780 5,736 4,027 2,547 2,174 2,072
W.I.P. 1,406 922 935 760 805 750
Finished Goods 102,928 73,774 62,711 48,565 39,513 30,628
Trade Debtors 25,823 23,105 19,529 19,744 18,182 14,436
Bank & Deposits 7,380 28,521 9,823 8,560 13,536 13,698
Other Current Assets 11,729 11,688 14,595 10,843 9,488 5,262
Group Loans (asset) 679 286
Directors Loans (asset)
Other Debtors
Prepayments 11,050 11,688 14,595 10,843 9,202 5,262
Deferred Taxation
Investments 3,547 663 769 818 102 541
Current Assets 159,593 144,409 112,389 91,837 83,800 67,387
Current Liabilities
Trade Creditors -32,241 -22,049 -22,097 -15,910 -18,888 -10,392
Short Term Loans & Overdrafts -26,204 -37,282 -19,862 -6,790
Bank Overdrafts -26,204 -37,282 -19,862 -6,790
Group Loans (short t.)
Director Loans (short t.)
Hire Purch. & Leas. (short t.)
Hire Purchase (short t.)
Leasing (short t.)
Other Short Term Loans
Total Other Current Liabilities -32,643 -30,215 -23,325 -23,787 -20,298 -18,202
Corporation Tax -7,202 -3,857 -4,360 -3,353 -3,761 -3,511
Dividends
Accruals & Def. Inc. (short t.) -20,316 -16,901 -13,111 -15,260 -13,385 -11,471
Social Securities & V.A.T. -4,489 -6,339 -5,585 -4,111 -2,697 -2,916
Other Current Liabilities -636 -3,118 -269 -1,063 -455 -304
Current Liabilities -91,088 -89,546 -65,284 -46,487 -39,186 -28,594
Net Current Assets (Working Capital) 68,505 54,863 47,105 45,350 44,614 38,793
Net Tangible Assets (Liab.) 127,719 105,984 98,407 85,637 76,574 66,912
Working Capital needs 104,696 81,488 65,105 55,706 41,786 37,494
Total Assets 231,662 201,610 164,674 133,092 116,757 96,140
Total Assets less Cur. Liab. 140,574 112,064 99,390 86,605 77,571 67,546
Long Term Liabilities
Long Term Debt
Group Loans (long t.)
Director Loans (long t.)
Hire Purch. & Leas. (long t.)
Hire Purchase (long t.)
Leasing (long t.)
Preference Shares
Other Long Term Loans
Total Other Long Term Liab.
Accruals & Def. Inc. (long t.)
Other Long Term Liab.
Provisions for Other Liab. -497 -1,420 -1,547 -1,316
Deferred Tax -497 -1,420 -1,547 -1,316
Other Provisions
Pension Liabilities
Balance sheet Minorities 85
Long Term Liabilities -497 -1,420 -1,547 -1,231
Net assets 140,574 112,064 98,893 85,185 76,024 66,315
Shareholders Funds
Issued Capital 2,196 2,194 2,160 2,160 2,160 2,160
Ordinary Shares
Preference Shares
Other Shares
Total Reserves 138,378 109,870 96,733 83,025 73,864 64,155
Share Premium Account 9,331 9,139 9,137 9,137 9,137 9,137
Revaluation Reserves
Profit (Loss) Account 127,967 105,561 87,209 74,056 64,639 54,906
Other Reserves 1,080 -4,830 387 -168 88 112
Shareholders Funds 140,574 112,064 98,893 85,185 76,024 66,315
Figure 2.. information collated from FAME Database accessed online 8/2/16

6. 2.0 Ted Baker Space Allocation and Product Mix
2.1 Womenswear
Womenswear holds 52.6% of the overall lines for TedBaker on TedBaker.com where as this may vary from
store to store this would imply that there is almost an even gender split for the brand. Women holds a great
significance to the accessories department in particular bags and purses that hold collectively 10.2% of the
overall product mix. Within the clothing department dresses, coats and tops holds the most lines and the
highest average price per line, suggesting this is an area that Ted Baker uses to maximise profit.
2.2 Mens
Menswear holds a greater significance toward clothing lines with 23.9% of lines in this department instead of
accessories when compared to womenswear, with tops, suits and shirts holding the majority of lines and
space allocation suggesting these are the stronger performing departments for Ted Baker.
!6
Figure 3.. information collated from TedBaker.com accessed online 8/2/16

7. 3.0 The Flowtii Skirt
3.1 Illustration of Flowtii Skirt
3.2 Fit Photo of Flowtii Skirt
!7
Figure 5.. Illustration of FLOWTII skirt supplied by Alexandria Chemney for Ted Baker
Figure 4.. Illustration of FLOWTII skirt supplied by Alexandria Chemney for Ted
Baker

8. 3.3 Sketch Sheet
3.4 Sampling Spec
!8
Figure 6.. Sketch of FLOWTII skirt supplied by Alexandria Chemney for Ted Baker
SAMPLING SPEC
STYLE NAME FLOWTII - NUDE COMPOSITION POLY SATIN
SEASON SS14 WEIGHT
RANGE MAINLINE LINING
SUPPLIER FATIN DESIGNER RACHEL
SUPPLIER CONTACT ELLEN GARMENT TECH GILL
PRINT/EMBELLISHMENT PC KATE
PROTO 2ND PROTO SMS REVISED FIT PP REFERENCE APPROVAL
DATE:
TOL +/- SPEC SAMPLE SPEC SAMPLE SPEC SAMPLE SPEC SAMPLE SPEC SAMPLE SPEC SAMPLE SPEC
SPEC - SIZE
A5 Skirt Length @ CF/ CB 1 55.5 / 55.5 55.5 55.5 55.5 -0.5 55.5 55.5
D2 Waist Width 0.5 36.0 / 36.0 36.0 36.0 36.0 -0.5 36.0 36.0
D3 Waistband Depth 0.5 3.8 / 3.8 3.8 3.8 3.8 / 3.8 3.8
E2
Top Hip @ 10cm from waist edge at side seam
0.5 46.0
/ 46.0 46.0 46.0 46.0 / 46.0 46.0
E3
Low Hip @ 20cm from waist edge at side seam - Lining
0.5
60.0 60.0 60.0 60.0 60.0 60.0 60.0
E4 Low Hip along seam ORGNAZA LAYER 0.5
52.0 57.0 57.0 57.0 57.0 57.0 57.0
F1 Fullest Hip @ 27cm from waist edge - Lining 0.5 67.0 67.0 67.0 67.0 67.0 67.0 67.0
F2 Hem Width Curved 0.5 103.0 +0.5 103.0 103.0 103.0 103.0 +1 103.0 103.0
M2 Pocket Opening/ width 0.3 14.0 -0.5 14.0 14.0 14.0 14.0 / 14.0 14.0
P1 Finished Zip tape length 1 21.5 / 21.5 21.5 21.5 21.5 / 21.5 21.5
Supplier Comments:
Date:
1. All internal seams to be french seamed or bound
2. Pocket bags to be bagged out or bound
3. Skirt lining to be attached to outer with chain stitch
Figure 6.. Sampling Spec of FLOWTII skirt supplied by Alexandria Chemney for Ted Baker

9. 3.5 Costing Sheet
!9
Figure 7. Costing Sheet of FLOWTII skirt supplied by Alexandria Chemney for
FATINTEXTILE&FASHION(H.K.)LTD.
ESTIMATEDCOSTING
SUPPLIER:FATINDATE20/Sep/12
SEASON:AW13Update:06/Mar/13
ATTN:KateHenningSTYLENAME:FLOWTII(TB1002)FROM:NgHongChun/George/Ellen
Style(image)FabricCompositionWovenorKnit
FabricPrice
permetre
Garment
Rating
FabricPrice
pergarment
CMPrice
Estimate
TrimCost
Other
(Plsstateextracosts)
SummationAdministrationFee
EstimatedGarmentFOB
HKPrice(Baseonover
1000pcs)
LeadTime
BulkcostMain--T400-RYDheavierpolytwilloilpaintedfloralprint---
100%polyester
Woven
US$7.001.65US$11.55US$10.70US$2.90US$3.00US$36.69US$3.7US$40.4
100daysonce
priceconfirmed
anddockets
receipt,andfabric
arriveourfactory.
Trimfabric:waistbandlining-stretchblossomjacquardUS$4.400.15US$0.66fabrictestcharge
Lining1:OrganzaMLDR2184100%polyesterUS$2.002.02US$4.04paperpatterncharge
Lining2:97%polyester3%elastaneplainUS$2.401.00US$2.40transportationcharge
AcetatetafettaUS$1.600.37US$0.59terminalhandingcharge
EdicatemetalzipUS$0.821.03US$0.84CFScharge
loadingcharge
documentsfee
Thefabricbulkminquantityis2000m.…
SMScostMain--SMK-22340stretchpolytwilloilpaintedfloralprint
100%polyester
Woven
US$12.551.65US$20.71US$13.80US$3.00US$3.00US$51.54US$5.2US$56.7
100daysonce
priceconfirmed
anddockets
receipt,andfabric
arriveourfactory.Trimfabric:waistbandlining-stretchblossomjacquardUS$4.400.15US$0.66fabrictestcharge
Lining1:75Dpolycdc100%polyesterUS$2.401.1US$2.64paperpatterncharge
Lining2:OrganzaMLDR2184100%polyesterUS$2.001.95US$3.90transportationcharge
Lining3:97%polyester3%elastaneplainUS$2.401.00US$2.40terminalhandingcharge
AcetatetafettaUS$1.600.37US$0.59CFScharge
EdicatemetalzipUS$0.821.03US$0.84loadingcharge
documentsfee
Mainfabricwidthisnotenoughforbiggersizesforbulk.
Thefabricbulkminquantityis2000m.…
ProtocostMain--RH117stretchheavypolysatinplaincolor
97%polyester3%elastane
Woven
US$3.401.48US$5.03US$13.80US$3.00US$3.00US$36.31US$3.6US$39.9
100daysonce
priceconfirmed
anddockets
receipt,andfabric
arriveourfactory.Trimfabric:waistbandlining-stretchpolyesterprintUS$4.000.16US$0.64fabrictestcharge
Lining1:75Dpolycdc100%polyesterUS$2.401.3US$3.12paperpatterncharge
Lining2:OrganzaMLDR2184100%polyesterUS$2.001.82US$3.64transportationcharge
Lining3:97%polyester3%elastaneplainUS$2.401.10US$2.64terminalhandingcharge
AcetatetafettaUS$1.600.37US$0.59CFScharge
EdicatemetalzipUS$0.821.03US$0.84loadingcharge
documentsfee
Thefabricbulkminquantityis1000mpercolor.…
PROTOCOST-fabrication3Main--Fatin:ZF01165/K22-V/P/F62210K:66%R29%N5%SP,60"US$8.001.66US$13.28US$9.30US$6.00US$3.00US$37.78US$3.8US$41.6110daysonce
dockets
receiptfabrictestcharge
lining-stretchpolysatinheattransferprintedUS$4.001.45US$5.80paperpatterncharge
US$0.401.00US$0.40transportationcharge
terminalhandingcharge
CFScharge
loadingcharge
documentsfee
…
PROTOCOST-fabrication2Main--Fortex,milankit/390,100%cotton,51-1/2"US$14.901.83US$27.27US$9.30US$6.00US$3.00US$51.77US$5.2US$56.960daysonce
dockets
receiptand
fabricarrive
fabrictestcharge
1

10. 3.6 E-Mail Conversation with Alexandria Chemney at Ted Baker
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Figure 8, Chemney, A Flowtii Skirt E-Mail to Vandell Stretton , 2/2/15
Vandell Stretton <vandell@live.co.uk> Tue, Feb 2, 2016 at 12:02 PM
To: Alexandria Chemney <alexandriac@btinternet.com>
Hi Alex,
Thank you so much, I really appreciate that it is going to be a massive help. I have a few questions below if
you could answer them for me:
Where was the inspiration taken from for the print?
Floral oil paintings
Was any trips taken to find inspiration for the print, was this costly?
I don’t think so probably not
How does the garment change season to season?
Only changes slightly with the print, we try and focus on the colours and keeping them on trend.
Was there a competitive shop before designs were considered?
Yeah we always keep an eye on places like L.K. Bennet, Ralph Lauren Polo, AllSaints, Reiss, Paul Smith, Zara
What was considered when choosing the final design?
I’m not sure but we always look for commerciality and to stand out.
How many of these skirts were manufactured?
I don’t have access to figures like that
Why did you choose this particular supplier?
It’s the one we’ve always used for this skirt.
Did they meet their deadlines?
I assume so or we wouldn’t still be using them
Was the final garment true in all aspects to the sample you received?
Yeah, theres nothing in the notes saying otherwise
Was the fabric printed in the same factory as it was assembled?
No, i’m not sure where it was printed
Any general comments from fit sessions?
The length of the skirt has gone up and down as seasons have gone by
What is the return rate like?
I don’t have access to that either.
Any QA issues?
Nothing major a few bleeding issues of the print
What are the reasons for returns?
I don’t have access to that, i’d suggest trying in store…
Do these go into sale? If so how much are they reduced by?
50% is usually the maximum something will be reduced by but that’s usually really slow sellers
What’s the sell through of this garment or in general?
We aim for 80% before going into sale

11. 3.7 Store visit
!11
Is the [flowtii] skirt a strong seller each season?
It kind of depends on the print, sometimes it’s a bit too colourful and outlandish
Is that in your store or company wide?
It isn’t a weekly company best seller these prints usually sell better for graduations and summer weddings
and things like that.
Has there been any faulty returns?
Not that I can recall.
Is there any common customer objections?
With all our fitted skirts we have the issue of it being too large on the waist but then too tight on the hips
on a few women but it’s generally a shape that flatters everyone and the gold zip being too much of a
contrast to the fabric.
How long has this been in store?
I think it was here before Christmas.
Why did you decide to merchandise it on a side rail?
It sits with rest of this collection better.
How many have you sold this week?
I don’t think we’ve sold any.
Have you ever had to recall this or any similar printed garments?
Not that I can remember.
How many do you have in stock?
23 altogether
Figure 9 Arnold, K Conversation with Vandell Stretton , 5/2/15

12. 3.8 Assumed Current Critical Path
Below is an assumed current critical path for the Flowtii Ted Baker skirt. This has been created through the
study of texts from Jackson and Shaw, Goworek and professional documents supplied by Alexandria
Chemney at Ted Baker.
No. Activity Proposed
Date:
Actual
Date:
Deviation:
1 Success of similar lines considered 1/6/15
2 Inspirational trips and competitive shopping undertaken 3/6/15
3 Initial designs made (sketches) 6/6/15
4 Final design chosen and designed in CAD 8/6/15
5 Garment specification created 10/6/15
6 Garment pattern created or altered from original 12/6/15
7 Toile created in unprinted fabric 14/6/15
8 Graphic designers create floral prints for fabric 16/6/15
9 Floral prints approval 18/6/15
10 Liase with textile designers 20/6/15
11 Sample of printed fabrics ordered 28/6/15
12 Order zips, garment care labels, Ted Baker branded neck labels and swing
tickets
5/7/15
13 Printed fabric samples received 6/7/15
14 Lab dips and print strike offs on all fabrics sent for approval 8/7/15
15 Fabric package test 10/7/15
16 Fabrics and zips approved 14/7/15
17 Toile created in all fabrics 15/7/15
18 Adjustments made to fit sample and garment pattern 17/6/15
19 Approve fit sample 18/6/15
!12
Time and Action Critical Planner
Style Name: Flowtii Order Quantity: 1000 Season: SS16 Delivery Date:
5/2/16
Fabric Detail: Main--T400-RYD heavier poly
twill oil painted floral print --- 100%polyester
Trim fabric: waistband lining - stretch blossom
jacquard
Lining 1: Organza MLDR2184 100%polyester
Lining 2: 97% polyester 3%elastane plain
Acetate taffettà
Edicate Metal Zip
Product Detail: Printed Flowtii Skirt
Destination Port: London Shipment Port: Shenzhen China Buyer Country: United
Kingtom
PLAN SOURCE MAKE DELIVER

13. 20 Consider factory and lead time 18/6/15
21 Send fabric, trims and garment spec to factory and order prototypes in
different fabrications
20/6/15
22 Prototypes received - BLACK SEAL 1/7/15
23 Review all three prototypes in different fabrications 2/7/15
24 Order sales man sample (SMS) 7/7/15
25 Approve SMS - RED SEAL 14/7/15
26 Photographs of SMS for adverts or website 15/7/15
27 Size set samples arrived 17/7/15
28 Size set samples approved 18/7/15
29 Garment package tests submitted 20/7/15
30 Garment package tests approved 27/7/15
31 All fabrics arrive in factory 29/7/15
32 All zips arrive in factory 29/7/15
33 Fabric cut 31/7/15
34 Pilot run 2/8/15
35 Pre-production meeting 5/8/15
36 Bulk sample sent to buyer 7/8/15
37 Approval of bulk sample - GOLD SEAL 10/8/15
38 Production start date (100 Days) 11/8/15
39 TOP Sample sent to buyer 12/8/15
40 TOP Sample reviewed and approved 13/8/15
41 Production finishes 19/11/15
42 Packaging starts 20/11/15
43 Packaging finishes 21/11/15
44 Buyer quality audit 22/11/15
45 Shipment sample sent to buyer 23/11/15
46 Depart factory 24/11/15
47 Arrive at port 25/11/15
48 Arrive at DC (4-6 Weeks) 5/2/16
49 Merchandised to stores 6/2/16
!13

14. 4.0 Improved Planning Proposition
4.1 Luxury Consumer Desirability
To maximise profitability of the ‘flowtii skirt’ and thus increase the overall turnover for Ted Baker PLC when
designing the line they need to consider “…Luxury consumers need for a wide selection, superior quality
and exclusivity is key in defining their reasoning for spending (Okonkwo, 2007)” to create a more desirable
product for it is current consumers and help reduce the risk of unsold stock and lines sold at discounted
rates.
4.2 Exclusivity, Originality and Competitor Comparison
To attain exclusivity and therefore improve profitability with this line when constructing the range plan Ted
Baker need to consider its own previous designs, competition and original inspiration. From observations as
a stylist for competitor AllSaints it is apparent loyal consumers are no longer happy to spend on similar
designs they have either purchased before or seen in store for the past several seasons as “the luxury
consumer has evolved beyond the ‘head-to-toe designer clad single-brand loyalist’ to a smart and savvy
discerning consumer.” (Okonkwo, 2007) In essence exclusivity means originality and to remain original Ted
Baker need to extensively consider similar competitor lines.
4.3 Previous Season Feedback
As discussed with Kelly in Ted Baker Manchester (figure 9.) a key issue and cause of customer objections with
this garment is the poor fit of the waist band on women with larger hips, and another key issue is the harsh
contrast between the hardware and the feminine print. To overcome these objections and increase
profitability Ted Baker needs to reconsider the fastening of the garment. It suggests that creating a slightly
elasticated waistband with a concealed zip and three hidden buttons will allow lots of room to adjust the
garment around the waist whilst concealing the zip.
4.4 Fastenings and Zip Tape
Currently the zip stand is dyed to match the base fabric (figure 6.) which would be an extra and
unnecessary direct labour cost “Special buttons and fastenings purchased for a specific job, such as horn
buttons or large zips, may be relatively expensive and therefore need careful costing” (Jeffery and Evans,
2011), using a concealed zip will remove this cost.
!14

15. 5.0 Improved Sourcing Proposition
5.1 Lead Time
With Kelly Arnold suggesting this particular garment was in stores too early (figure 9.) and should be
launched in stores closer to summer and graduation season which runs mid-May to mid-July this idea will
create a feeling of newness in store and create a higher demand for the new and exclusive product and in
turn increase profits. “Some retailers retain classic products within a range for more than one season either in
exactly the same form or by retaining the styling and amending the colour or fabric.” (Goworek, 2007) This
suggests that this line in particular is a classic style as apposed to a fad “Fads tend to be adopted more
by younger customers at the cheaper end of the market, the style’s popularity often being fuelled by media
interest” (Goworek, 2007) Reclassifying this item as a ‘core’ or ‘classic’ line will increase the lead time allowing
for a larger negotiation window on time and price with suppliers, ultimately driving down the cost of
production and transportation whilst creating room for error and delays within the critical path.
5.2 Fabric Printing and Sourcing
With exclusivity being key for luxury retailers success and ”when the same print is available in garment ranges
from two entirely separate retailers this is because they have been selected from the same fabric
manufacturers range.” (Goworek, 2007) it is imperative Ted Baker create an in-house exclusive print, although
this “…sometimes makes it more expensive than a fabric in the supplier’s own range” (Goworek, 2007) The
cost of this will be outweighed the profits from sales and meeting consumer expectations of exclusivity and
eventually improving customer retention. Negotiations should be made with the fabric supplier to have the
fabric tests included into the final cost of the fabric, with special attention to print bleeding tests. This will
reduce costs, reduce the number of actions within the critical path and also create stronger relationships
between the fabric supplier and Ted Baker.
5.3 Far-Shore Sourcing
Currently Ted Baker are producing this particular line at the Fa Tin factory in Shenzhen a major city in the
Guangdong Province of China. With far-shore sourcing “the global sourcing strategy which aims to find and
evaluate suitable manufacturers is a driver to achieving sales targets and increased profit margins” and
many of the benefits of “low labour production costs have enabled retailers to increase profitability whilst
offering a broader product range to the customers” (Jeffery and Evans, 2011) although far-shore sourcing
comes with many disadvantages “As well as cultural differences some of the disadvantages are lengthy
travelling; communication within different time zones; freight and shipping costs; legal and administrative costs
and the risk of of copyright infringements particularly when working with a brand name.” (Jeffery and Evans,
2011.)
This suggests that for Ted Baker to overcome these disadvantages the buying team should focus on
building excellent relationships of trust with suppliers to reduce the risk of copyright infringement which is
paramount when Ted Bakers business model is based around luxury and exclusivity, this is also supported by
the fact “there are also manufacturing techniques and skills which are available only in certain
countries” (Goworek, 2007) suggesting that Ted Baker uses this opportunity to create one of a kind and
exclusive garment.
5.4 Near-Shore Sourcing
With 95% of garments being manufactured outside of the UK in 2005 (Key Note, 2006a) due to the rise of
cheap labour abroad which in turn helps increase profits. Few manufacturing companies are left within the
UK the few that are left are “the companies which are successful in this country compete more on service
than price, offering a fast turnout of products, a design service and/or good quality” (Goworek, 2007)
suggesting that for Ted Baker to use a manufacturing company within the UK it would have lines that require
a fast turn around. Ted Baker is not a fast fashion brand and unless they were missing a key trend sourcing
near shore would not prove profitable for the brand.
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16. 5.5 Processes, Services and Raw Materials
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Direct Materials Cost: 51.8% of Total Cost
Main: Floral Print Polyester $11.55 Per Garment
Trim Fabric: Stretch Jacquard $0.66 Per Garment
Lining 1: Organza $4.04 Per Garment
Lining 2: Poly Elastane Blend $2.40 Per garment
Acetate Taffettà $0.59 Per Garment
Educate Metal Zip $0.84 Per Garment
Total $20.09 Per Garment
Care labels
Garment labels
Packaging
Direct Labour Cost: 33.7% of Total Cost
Fabric cutting
Pressing
French seams and binding
Overlocking
Chain Stitch
Pocket Bags Bound
Total: $13.60
Prime Cost:
$33.69
Production Overhead: 7.4% of Total Cost
Fabric test charge
Paper pattern charge
Transportation charge
Terminal handling charge
CFS charge
Loading charge
Documents fee
Total: $3.00
Production Cost:
$36.69
Administration Fee:
$3.70
Total Cost:
$40.40
Profit:
Selling Price: $214
- Manufacture Cost: $40.40
= Profit $173.60

17. 6.0 Improved Making Proposition
6.1 Fabric Printing
Considering the high quality digital print on this garment is the main selling focus it is also the most costly part
of the entire production. By reducing the amount of colours within the print Ted Baker will be able to reduce
overall cost of the production of fabric and therefore maximise profitability of this line.
6.2 Fabrics and Layplan
Taking into consideration that “The cost of fabric and lining will be the largest component of the direct
material cost. If savings are to be made it is usually in this area.” (Jeffery and Evans, 2011) would suggest Ted
Baker needs to reconsider the pattern pieces and lay plans for this garment to introduce savings and
improve profitability. Taking into consideration the new fastenings and room for a more flexible fit of the
garment, the size range should be reduced to only three different sizes and priority should be made to fitting
the garment to the width of the fabric insuring maximum usage of the fabric with very little wastage, this in turn
will improve profitability of the garment.
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18. 7.0 IMPROVED DELIVERY AND TRANSPORTATION PROPOSITION
7.1 Free on Board
FOB or free on boarding is the current INCOTERM used to describe the delivery method of the Flowtii skirt
for Ted Baker. FOB implies “The seller delivers when the goods pass the ship’s rail at the named port of
shipment. The buyer has to bear costs and risks from that point onwards. The seller has to clear the goods for
export.” (Jeffery and Evans, 2011) FOB is commonly used by most retailers and suppliers as it creates an
almost halfway split between responsibilities for the buyer and supplier and this creates a great advantage
because it reduces risk factors which is of great importance when working with any business model.
7..2 EX Works
EXW or Ex works is term used to describe a delivery method not often used with the import of goods and is
described as “The sellers responsibility ends at the his premises; it represents the minimum responsibility for the
seller. The buyer has to bear all the costs and risks involved in taking the goods from the sellers
premises” (Jeffery and Evans, 2011) Suggesting that the buyer takes full responsibility of any issues or failure
of deliverance would be considered unfavourable and high risk for any business. If a supplier has a great
track history and reputation with a buyer it would be favourable to express this level of trust through creating
an EX Works delivery system. This level of trust would allow more open negotiations and make it easier for the
buyer to force the hand of the supplier into making more buyer favourable deals. In essence to increase
profitability it is essential to create excellent supplier relations.
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19. 8.0 Improved inventory solutions proposition
8.1 Single Stock View
Currently many retailers are opting for a single view of all their available stock that allows customers to be
able to buy a particular garment online and have the order fulfilled by a store. For Ted Baker this would
mean optimised online sales and a better scope of understanding of stock levels although “despite the
benefits of single stock views, says Garbett, retailers are often hampered as much by culture, processes and
staffing as by IT systems that need changing.” (Davis, 2013) this suggests that for Ted Baker to improve it’s
inventory solutions it needs to first have the correct level of staffing and understanding of manual stock
counting.
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20. 9.0 References
Database, Fame. "Fame-Report". Fame Database. N.p., 2016. Web. 3 Feb. 2016.
Evans, Nathalie, and Michael Jeffrey. Costing For The Fashion Industry. Oxford: Berg, 2010. Print.
Goworek, Helen. Fashion Buying. Oxford: Blackwell Pub., 2007. Print.
Investopedia,. "Intangible Asset Definition | Investopedia". N.p., 2003. Web. 7 Feb. 2016.
Jackson, Tim, and David Shaw. Mastering Fashion Buying And Merchandising Management. Basingstoke:
Macmillan, 2001. Print.
Westnedge, Honor. "Company Overview - Verdict Retail - Ted Baker". Verdict-Retail.com. N.p., 2016. Web.
19 Feb. 2016.
10.0 Image bank
Figure 1.. information collated from Verdict-Retail.com accessed online 8/2/16
Figure 2.. information collated from FAME Database accessed online 8/2/16
Figure 3.. information collated from TedBaker.com accessed online 8/2/16
Figure 4.. Illustration of FLOWTII skirt supplied by Alexandria Chemney for Ted Baker
Figure 5.. Illustration of FLOWTII skirt supplied by Alexandria Chemney for Ted Baker
Figure 6.. Sampling Spec of FLOWTII skirt supplied by Alexandria Chemney for Ted Baker
Figure 7. Costing Sheet of FLOWTII skirt supplied by Alexandria Chemney for Ted Baker
Figure 8. Chemney, A Flowtii Skirt E-Mail to Vandell Stretton , 2/2/15
Figure 9 Arnold, K Conversation with Vandell Stretton , 5/2/15
11.0 Bibliography
Carr, Harold, Barbara Latham, and David J Tyler. Carr And Latham's Technology Of Clothing
Manufacture. Oxford: Blackwell Pub., 2008. Print.
Chuter, A. J. Introduction To Clothing Production Management. Oxford [England]: Blackwell Science, 1995.
Print.
Cooklin, Gerry, Steven G Hayes, and John McLoughlin. Introduction To Clothing Manufacture. Oxford:
Blackwell Science Ltd., 2006. Print.
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