1. 2 part i – key considerations leader in the italian apparel market with 5.29% market share...
TRANSCRIPT
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Part I – Key ConsiderationsPart I – Key Considerations
Leader in the Italian apparel market with 5.29% market share (Jan.-Dec. ’02)
3 buying offices (Hong Kong, New Dehli-India, Dhaka-Bangladesh)
5.619 EFT in Italy
Leader in the Italian apparel market with 5.29% market share (Jan.-Dec. ’02)
3 buying offices (Hong Kong, New Dehli-India, Dhaka-Bangladesh)
5.619 EFT in Italy
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Part II – Foreign Supply SystemPart II – Foreign Supply System
It supports purchasing activities abroad through the following services:
Quality Control (EU area)
Vendor Scouting (EU area)
Import/Export (customs formalities compliance, logistics)
O.B.S. (non EU area)
It supports purchasing activities abroad through the following services:
Quality Control (EU area)
Vendor Scouting (EU area)
Import/Export (customs formalities compliance, logistics)
O.B.S. (non EU area)
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64% of group turnover comes from Oviesse
Oviesse accounts for 93% of Group
purchases from China
64% of group turnover comes from Oviesse
Oviesse accounts for 93% of Group
purchases from China
Part II – Foreign Supply SystemPart II – Foreign Supply System
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Part II – MerchandisePart II – Merchandise
Foreign purchases account for 60% of Oviesse assortments (207 million Euro in 2002).
35% is directly traded with the Supplier.
25% is traded with import agents
Gross margin before mark-downs on Far East goods is 15% higher than that of EU countries
Foreign purchases account for 60% of Oviesse assortments (207 million Euro in 2002).
35% is directly traded with the Supplier.
25% is traded with import agents
Gross margin before mark-downs on Far East goods is 15% higher than that of EU countries
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Part II – Purchase Brake-Down By Source Part II – Purchase Brake-Down By Source ChannelChannel
Importers25%
Importers25%
Italy40%Italy40%
Others6%
Others6%
India +Bangladesh
12%
India +Bangladesh
12%
China +Hong Kong
17%
China +Hong Kong
17%
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Italy40%Italy40%
Others non EU20%
Others non EU20%
India + Bangladesh16%
India + Bangladesh16%
China +Hong Kong
24%
China +Hong Kong
24%
Part II – Purchase Brake-Down By OriginPart II – Purchase Brake-Down By Origin
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Part III – O.B.S.Part III – O.B.S.
It is 100% run by Gruppo Coin
O.B.S. acts like an agent (3.5% commission)
O.B.S.’s headquarters located in Hong Kong since 1994
Liason offices:
Bangladesh since 1996
India since 2001
Amounting to a total of 95 staff members
It is 100% run by Gruppo Coin
O.B.S. acts like an agent (3.5% commission)
O.B.S.’s headquarters located in Hong Kong since 1994
Liason offices:
Bangladesh since 1996
India since 2001
Amounting to a total of 95 staff members
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Part III – O.B.S. ServicePart III – O.B.S. Service
Main services catered by O.B.S.:
Far East sourcing both for garments and fabric producers
Services and assistance for Buyers
Orders follow-up
Quality inspections (through-out and after)
Shipping management (logistics, custom formalities)
Main services catered by O.B.S.:
Far East sourcing both for garments and fabric producers
Services and assistance for Buyers
Orders follow-up
Quality inspections (through-out and after)
Shipping management (logistics, custom formalities)
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Part IV – The Key Factors in Sourcing Part IV – The Key Factors in Sourcing DecisionsDecisions
QualityFabrics and
accessoriesFinishingsStyle
PriceFOBInsurance, Fright,
Duty, Clearance,Dead time
QualityFabrics and
accessoriesFinishingsStyle
PriceFOBInsurance, Fright,
Duty, Clearance,Dead time
ServiceTime to marketTerms of paymentsMerchandise returnsProblem solving
Country RiskCurrencyPolitical instability
ServiceTime to marketTerms of paymentsMerchandise returnsProblem solving
Country RiskCurrencyPolitical instability
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Part IV – QualityPart IV – Quality
Quality is a process
It takes time to be built
It’s the outcome of a long lasting cooperation with the supplier
It is long-term investment
Gruppo Coin is costantly seeking to protect and develop this key factor in different countries but with different expectations from country to country
Quality is a process
It takes time to be built
It’s the outcome of a long lasting cooperation with the supplier
It is long-term investment
Gruppo Coin is costantly seeking to protect and develop this key factor in different countries but with different expectations from country to country
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Part IV – PricePart IV – Price
Price is the prime key factor that encourages the retailer to search for new sources…
…but…
…The search ends only when you find the right balance between all four key factors
Price is the prime key factor that encourages the retailer to search for new sources…
…but…
…The search ends only when you find the right balance between all four key factors
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Part IV – ServicePart IV – Service Service = Flexibility
Reduction of the time span between the finalization of the order and the in-store delivery
Working Capital Reduction
Higher rotations
Flexibility is influenced by: distance, technological development, facilities and others
Service = Flexibility
Reduction of the time span between the finalization of the order and the in-store delivery
Working Capital Reduction
Higher rotations
Flexibility is influenced by: distance, technological development, facilities and others
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Part IV – Country RiskPart IV – Country Risk In sourcing decisions a retailer must deploy its
resources in order to reduce the possible damage that may occur from one single country
Natural desasters (i.e. floods in Bangladesh)
Political instability (i.e. strikes, riots)
Currency volatility
Deseases (i.e. plague in 1994 in China, SARS in 2003 in China)
Change in the economic and trade policy framework
In sourcing decisions a retailer must deploy its resources in order to reduce the possible damage that may occur from one single country
Natural desasters (i.e. floods in Bangladesh)
Political instability (i.e. strikes, riots)
Currency volatility
Deseases (i.e. plague in 1994 in China, SARS in 2003 in China)
Change in the economic and trade policy framework