Arpita & Jatin

8/2/2019 Arpita & Jatin

1/28

Presented By:

Arpita Khandelwal, Jatin Agrawal M.F.Tech.-II (2011-13)

Assignment 2

Apparel Marketing & Manufacturing


2/28

Introduction

Next plc is a British retailer marketing clothing, footwear,accessories and home products with its headquarters in Enderby,Leicestershire, England.

The company has over 550 stores throughout the UK and the

Republic of Ireland, and 50 franchise branches in Europe, Asia andthe Middle East. It is listed on the London Stock Exchange and is aconstituent of the FTSE 100 Index.

2


3/28

ABOUTPrincipal Activities

Next is a UK based fashion retailer offering exciting, beautifully designed,excellent quality clothing, footwear, accessories and home products.

Next distributes through three main channels:

Next Retail

Next Directory

Next International

In the UK total clothing market we are the second largest UK retailer by salesvalue ()

Next Retail

525 stores in the UK and Ireland

292,000 transactions per day in store (average)

Next Directory

Direct mail and transactional website

2.94 million active customers

77% of orders placed directly on line

3


4/28

ABOUTNext International

160 overseas franchise stores in 27 countries: Armenia, Bahrain, Bulgaria,Cyprus, Egypt, Gibraltar, Greece, Hong Kong, Iceland, India, Indonesia, Japan,Jordan, Kuwait, Lebanon, Libya, Malta, Oman, Pakistan, Qatar, Romania, Russia,Saudi Arabia, Thailand, Turkey, Ukraine and United Arab Emirates

25 Next overseas stores in 7 countries: China, Czech Republic, Denmark,Germany, Hungary, Slovak Republic and Sweden

Developing website capacity outside the UK delivering to more than 30

countriesNext Distribution

Warehousing and distribution division

Other Group Businesses include:

Ventura

Provides customer services management to third party clients wishing to

outsource their customer contact administration and fulfilment activities 4 UK call centres and 1 wholly owned call centre in India

Next Sourcing

Designs, sources and buys Next branded products

Lipsy

younger female fashion brand

Trades from 27 stores in the UK, wholesale, concessions and through its ownwebsite.4


5/28

TIMELINE 1864

J Hepworth & Son, Gentleman's Tailors is established in Leeds, England.

1981

Hepworth buys the chain of Kendalls rainwear shops to develop a womenswear groupof stores called Next.

1982The first Next womenswear store opens on 12th February. There are 70 Next storesaround the UK by the end of July.

1984

Next for Men launches in August. By December there are 52 menswear stores.The first mini department store in Edinburgh opens incorporating womenswear,

menswear, shoes and a caf.

1985

Debut of Next's first home interiors range.First department store with womenswear, menswear and interiors opens in RegentStreet, London.

5


6/28

1985

Debut of Next's first home interiors range. First department store with womens wear,menswear and interiors opens in Regent Street, London.

1986

Parent company, J Hepworth & Son changes its name to Next plc. The group acquiresGrattan plc (mail order company).

1987

Launch of Next childrens wear.

1988

Launch of Next Directory the brand's innovative new concept in home shopping.David Jones appointed Chief Executive of Next plc.

1991

Sale of Grattan to Otto Versand .

TIMELINE

6


7/28

1993

Next announces its brand strategy of "One Brand; Two Ways of Shopping", bringingtogether the common ranges across both retail and home shopping formats.

1994

Next's 300th store opens. The brand is now trading in 16 countries worldwide.

1999

Launch of shopping on the internet from the Next Directory at www.next.co.uk Thisextends Next's business strategy to "One Brand; Threeways of shopping".

2000Next day delivery introduced as standard for orders placed before 5pm with the NextDirectory.

TIMELINE

7


8/28

2001

Launch of Next Flowers Simon Wolfson appointed Chief Executive.

2003

Next opens new larger format stores in Nottingham, Birmingham, Dudley andNewcastle Gateshead together with a large Home store at Glasgow Braehead.

2005

Next Home launches its Wedding List Service.

2006

John Barton appointed Chairman. Launch of www.nextelectric.co.uk

2007

Next celebrates its 25 year jubilee. Launch of Next's luxury Signature collection

.

TIMELINE

8


9/28

2008

Next acquires younger women's fashion brand, Lipsy

2009

Next extends its home shopping facility to the USA and over 30 other countriesworldwide through Nextdirect.com Debut of Next's on-trend Runway and Miss N

womens wearcollections.Next named British High Street Retailer of the Year.

2010

Next confirmed as Official Clothing and Homeware Supplier to the London 2012Olympic Games and Paralympic Games.

TIMELINE

9


10/28

BOARD OF DIRECTORS

Chairman of the board

John Barton

Executive Directors

Lord Wolfson Of Aspley

Guise, Chief Executive Christos Angelides,Group Product Director

David Keens, GroupFinance Director

Andrew Varley, GroupProperty Director

Independent Non-Executive Directors

Johnathan Dawson,

Senior IndependentNon-Executive A,N &R.

Steve Barber Christine Cross Francis Salway

10


11/28

BUSINESS STRATEGIES AND OBJECTIVES

The primary financial objective of the Next group remains the

delivery of sustainable long term growth in earnings per share.Next believes this objective is best achieved by continuation of thefollowing strategies in its operating businesses:

Improving and developing Next product ranges, success in which is reflected intotal sales and like for like sales performance.

Profitably increasing Next Retail and Lipsy selling space. New store appraisalsmust meet demanding financial criteria before the investment is made andsuccess is measured by monitoring achieved sales and profit contributionagainst appraised targets.

Increasing the number of Next Directory customers and their average spend.

Managing gross and net margins by better product sourcing, continuous costcontrol and efficient management of stock levels and working capital.

Maintaining the Group's financial strength through an efficient balance sheet andfinancing structure.

Purchasing and cancelling Next shares when it is earnings enhancing and in theinterests of shareholders generally.

11


12/28

CORPORATE RESPONSIBILITY

For Next, corporate responsibility means addressing key business-related social,

ethical and environmental impacts and ensuring we run our business in a responsible

way. We see corporate responsibility as a key element of how we conduct our

business as we believe it makes good business sense.

12


13/28

Customer Profile

13


14/28

HEADLINES & HIGHLIGHT

Their SuppliersThe products they sold were manufactured in 48 countries :- They have worked with 492 suppliers during the running year

They have carried out 1654 audits at their suppliers factories

Thet have increased their global code of practiced team to 44

Their Customers There are an average of 292,000 transactions per day in their Retail Stores in

the UK and IRELAND.

There are an average of 47,000 transactions per day in Directory

Next has 2.94 million active Directory customers

77% of Directory orders are placed through the internet

14


15/28

BUYER CHECKLISTS CRITERIA

15


16/28

Mode Of Working & Target Prices

Liaison Office as well as Buying is done from Impulse

Product range is apparel and sweaters only as per now

Target prices depends on the category and product for a babies sweater price starts

from 7 pounds and that for old girls is 12 pounds around.

16


17/28

Mode Of Communication

Generally mode of communication is via mails and NEXT has a very systematic

Workbook system, where in the supplier fills the workbook and buyer comments on

the adjacent column for all the samples and further it is being uploaded on NEXT

website.

17


18/28

Working Seasons/Cycle

Seasons

2-Seasons

1-Winter 1-Autumn

2-Seasons

1-Spring 1-Summer

18


19/28

The lead time is 90 days from the day of booking of order

Quantity per style price starts from 30,000

Quantity per color is subjective and generally is equal or in ratio of whole amount of

quantity ordered.

Sampling volumes cost during Product Development is being paid by Vendor.

Types of orders are of both kind namely repeat orders and new orders also.

Working Seasons/Cycle

19


20/28

Nominated Suppliers/Order Bookings

Jaidka

RMX

TCNS

Orient Craft

Texport

Shahi Exports

20


21/28

Compliance Audit/Terms

Category -5

You Stop Your business

Category-4

Freeze your business

Category-3

Give Chance to improve

Category-2

Final Warning to improve

Category-1

Change your business terms

21


22/28

Pre-Production Approval Procedures /

Production Approval Procedures

SilverRoute

Fit,SS,Shipmentby Impulse

GreenRoute

Fit by Buyer

SS,Shipmentafter Impulse

Approval

AmberRoute

Fit and SS byBuyer

Shipment byImpulse

OrangeRoute

Fit by Buyer

SS by Impulse

Shipment byBuyer

RedRoute

Fit,SS,Shipmentby Buyer

22


23/28

Packing Types There are three packings :

And 6 types of cartons :

All are of different sizes,

BDCM Bulk Distribution Carton Metric

S4

S6

S9

Bdcm1

Bdcm2

Bdcm3

Bdcm4

Bdcm5

Bdcm6

23


24/28

Bdcm1(595*295*388 mm) cartons type is most commonly used,+1 separator

No single size packing is no and no mixing as separator is being used.

No carton weight to be more than 15 kgs of weight

Dresses an all are hanger packed , coffin packed that is hanger and flat pack without

any fold and in hanging shipment only hangers are used.

Special tags are only being used for organic garments.

Packing Types

24


25/28

Inspection Procedures

BuyingHouse

Initial Inspection

Next

Warehouse Inspection

Impulse

Inspection at pilot stage

Inspection at factory size set Inspection at Initial, Mid and End Line.

25


26/28

Payment Terms

Product Developments sampling volumes are being paid by VENDOR.

Couriers payments during approval procedure and all expenditure is being bared by

VENDOR.

Documentation during Pre-Shipment/Post-Shipment is being bared sometimes by

VENDOR and BUYER both that vary from buyer to buyer and vendor to vendor.

Ad Samples is bared by BUYER.

Inspection Certificates is SGS certification and only testing and No THIRD PARTY

INSPECTION is being involved.

26


27/28

DELIVERY OF GOODS TO CUSTOMERS

This is done either by ship or by air modes only.

27


28/28

28

Arpita & Jatin

Documents

Transcript of Arpita & Jatin