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FASHION ?

FASHION ?. $ $. Fast Fashion. Chic and stylish —with a reasonable price. Issues Facing CeeCee. --- by 5Wings. AGENDA. Background. Issue Prioritization. Analysis & Recommendation. Conclusion. Part Ⅰ Background. Market overview—Fast Fashion. Fast Supply chain.

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FASHION ?

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  1. FASHION ?

  2. $$

  3. Fast Fashion Chic and stylish —with a reasonable price

  4. Issues Facing CeeCee --- by5Wings

  5. AGENDA Background Issue Prioritization Analysis & Recommendation Conclusion

  6. Part ⅠBackground

  7. Market overview—Fast Fashion Fast Supply chain Efficient IT system Mimic the newest design Short product life cycle Background

  8. Market Value ($billion) • Market overview—Fast Fashion Fast Fashion 1996 1990 2002 2008 SPA Model Successful strategy Continuous growth Background

  9. CeeCee overview Leading edge of current trend and style of its own Reliant on a good outsourced distributor AIM Focusing on up to the minute fashion styles for women at affordable prices. Performance Reliant on its sophisticated IT system Limited numbers of each design in order to create an air of exclusivity Background

  10. CeeCee overview Some operation issues Great Growth Potential International expansion Background

  11. Part ⅡIssues Prioritization

  12. Issues prioritization 1. Distributor’s strike 2. IT failure 3. Expansion into jewellery range 4. Celebrity marketing 5. Ethical issues

  13. Part ⅢAnalysis & Recommendation

  14. Issue 1 Distributor’s Strike

  15. Supply chain Production Distribution & Storage 10 to 15 days Design Marketing & Sales Distributor’s strike Distributor’s strike

  16. Current status Distribution Center EIT Lost profit €189,228,553.7 Lost customer loyalty Shops Distributor’s strike

  17. How to minimize the losses? • Continue enjoying high efficiency • Maintain long term cooperation Maintain current distributor • Risk of similar collapse • Difficult to recover immediately • Quick recovery • Diversified risk • Difficulty to cooperate • High cost Employ other distributors • Easy to control • High utilization • Large expenses • Time-consuming Set up own distribution team Distributor’s strike

  18. How to improve distribution? Resolve current collapse • Help current distributor recover • Outsource to other distributors Optimize logistics structure • Diversify distribution channels • Cooperate with more distributors • Set up its own distribution team Distributor’s strike

  19. Issue 2 IT Failure

  20. Current status Significant Discrepancy Receipt problem Website sales Cash received How to collect ? IT failure

  21. Which way to collect payments? Finance department 45% 6,000,000 None Outside agency 14 per customer 5% success fee 60% 2,720,000 6,000,000 2,700,000 CeeCee’s overstretched staffs €20,000 difference IT failure

  22. What causes this IT failure? Programing error Inefficient internal control • Greater • losses 3 months before detection IT failure

  23. How to improve internal control? Stricter error detection Timely internal control More frequent internal audit IT failure

  24. Current outsourcing policy High Risk IT system CeeCee’s IT staff Low Cost Outsourced IT company IT failure

  25. How much work to be outsourced? In-house Outsource Clear segregation of duties Core design work Some update work IT failure

  26. Issue 3 Expansion into Jewellery Range

  27. Low threshold • Current status Recession resistant Synergy Invest or not？ Expansion of jewellery range

  28. Whether to expand into jewellery range？ NPV: € 239,266 Expansion of jewellery range

  29. Whether to expand into jewellery range？ Current products Jewellery Expansion of jewellery range

  30. Whether to expand into jewellery range？ Low turnover Erosion effects Reject Lack of experience Unsatisfied profit Expansion of jewellery range

  31. Comparison of key statistics Expansion of jewellery range

  32. Comparison of key statistics Shop Expansion Expansion of jewellery range

  33. Shop expansion

  34. Issue 4 Celebrity Marketing

  35. Whether to use the celebrity ？ Celebrity marketing

  36. Diversify marketing methods Shop advertising Celebrity Direct media Designer On-line Celebrity marketing

  37. Issue 5 Ethical Issues

  38. Current status MORALE REPUTATION CONFIDENCE Supplier Management Ethic issues

  39. What to do? • Negotiation • Audit • Cooperation with labor union • Negotiation • Audit • Cooperation with local labor union Supplier Supplier Management Ethic issues

  40. What to do? • Laundry test • Chemical test • R&D — healthy fabrics • Negotiation • Audit • Cooperation with local labor union Product Supplier Environment Employee • Energy saving • Environment friendly material • recycle • Recruitment • Training • Sound working condition Ethic issues

  41. Part ⅣConclusion

  42. Conclusion • Long term • Improve outsourcing policies • distribution • IT system • Expand • Shop range • Diversify • marketing methods • Enhance CSR • Short term • Minimize losses • distributor strike • IT failure • Reject proposals • jewellery expansion • celebrity marketing

  43. Conclusion Fast Delivery High End Fair Price Fashion is Affordable

  44. THANK YOU! By 5 Wings Justin Li Nancy Yuan Maggie Xu Elena Zhong Angela He

  45. Q & A

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