fashion ?. $ $ fast fashion chic and stylish with a reasonable price
TRANSCRIPT
FASHIONFASHION ??
$ $
Fast Fashion
Chic and stylish
—with a reasonable price
Issues Facing CeeCee
--- --- byby 5Wings5Wings
Background
Issue Prioritization
Analysis & Recommendation
Conclusion
AGENDAAGENDA
Part Ⅰ
Background
Market overview—Fast Fashion
Background
Short product life cycle
Mimic the newest design
Fast Supply chain
Efficient IT
system
Market overview—Fast Fashion
Background
Fast Fashion
SPA Model1990 1996 2002 2008
Market Value ($billion)
CeeCee overview
Background
AIMFocusing on up to the minute fashion styles for women at affordable prices.
Leading edge of current trend and style of its own
Reliant on a good outsourced distributor
Reliant on its sophisticated IT system
Limited numbers of each design in order to create an air of exclusivity
CeeCee overview
Background
Great Growth PotentialSome operation issues
International expansion
Part Ⅱ
Issues Prioritization
1. Distributor’s strike
2. IT failure
3. Expansion into jewellery range
4. Celebrity marketing
5. Ethical issues
Issues prioritization
Part Ⅲ
Analysis &
Recommendation
Issue 1
Distributor’s Distributor’s StrikeStrike
Supply chain
Distributor’s strikeDistributor’s strike
Design
Marketing & Sales
Distribution & StorageProduction
Current status
Distributor’s strike
Shops
Distribution Center
EITLost profit
€189,228,553.7
Lost customer loyalty
Distributor’s strike
How to minimize the losses?
Methods Advantages DisadvantagesMaintain
current distributor
Set up own distribution
team
Employ other
distributors
• Continue enjoying high efficiency
• Maintain long term cooperation
• Quick recovery• Diversified risk
• Easy to control• High utilization
•Large expenses•Time-consuming
• Difficulty to cooperate• High cost
• Risk of similar collapse• Difficult to recover
immediately
Distributor’s strike
How to improve distribution?
• Help current distributor recover
• Outsource to other distributors
• Help current distributor recover
• Outsource to other distributors
Resolve current
collapse
• Diversify distribution channels• Cooperate with more distributors• Set up its own distribution team
• Diversify distribution channels• Cooperate with more distributors• Set up its own distribution team
Optimize logistics structure
Issue 2
IT FailureIT Failure
IT failure
Current status
Significant Discrepancy
Receipt problem
IT failure
€20,000 difference
Methods Total lossPercentage recovered
Additional charges
Net amount recovered
Which way to collect payments?
CeeCee’s overstretched staffs
6,000,000Outside agency
14 per customer 5% success fee
60% 2,720,000
2,700,0006,000,000Finance
departmentNone45%
IT failure
What causes this IT failure?
Programing error
3 months before
detection
Inefficient internal control
Stricter error detection
More frequent internal audit
Timely internal control
IT failure
How to improve internal control?
IT failure
Current outsourcing policy
IT system
CeeCee’s IT staff
Outsourced IT company
High Risk
Low Cost
IT failure
How much work to be outsourced?
Core design work
Some update work
In-house OutsourceClear segregation
of duties
Issue 3
Expansion into Expansion into Jewellery RangeJewellery Range
Current status
Invest or not？
Recession resistant
Low threshold
Synergy
Expansion of jewellery range
Whether to expand into jewellery range？
Expansion of jewellery range
NPV: € 239,266
-25, 000. 00-20, 000. 00-15, 000. 00-10, 000. 00-5, 000. 00
-5, 000. 00
10, 000. 0015, 000. 0020, 000. 0025, 000. 0030, 000. 00
0 1 2 3 4 5
I ncremental Cash Fl ow
Expansion of jewellery range
Whether to expand into jewellery range？
Jewellery
Current products
Lack of experience
Erosion effects
Low turnover
Reject
Expansion of jewellery range
Whether to expand into jewellery range？
Unsatisfied profit
Expansion of jewellery range
Comparison of key statistics
Expansion of jewellery range
Comparison of key statistics
Shop expansion
Issue 4
CelebrityCelebrityMarketingMarketing
Celebrity marketing
Whether to use the celebrity ？
Celebrity marketing
Diversify marketing methods
Shop advertising
Celebrity
Direct media
Designer
On-line
Issue 5
Ethical IssuesEthical Issues
Ethic issues
Current status
REPUTATION CONFIDENCEMORALE
What to do?
Ethic issues
•Negotiation•Audit•Cooperation with labor union
Supplier Management
• Negotiation• Audit• Cooperation
with local labor union Supplier
What to do?
Ethic issues
• Recruitment• Training• Sound
working condition
• Energy saving• Environment
friendly material
• recycle
• Laundry test• Chemical test• R&D — healthy
fabrics
• Negotiation• Audit• Cooperation
with local labor union Supplier
Environment Employee
Product
Part Ⅳ
Conclusion
Conclusion
Short term• Minimize losses
• distributor strike• IT failure
• Reject proposals• jewellery
expansion• celebrity marketing
Long term• Improve outsourcing policies
• distribution• IT system
• Expand • Shop range
• Diversify• marketing methods
• Enhance CSR
Conclusion
High End
Fast Delivery
Fair Price
THANK YOU!
By 5 Wings Justin Li
Nancy Yuan
Maggie Xu
Elena Zhong
Angela He
