By: Emily Wiley

New Look Background

A value high street fashion retailer that prides itself on always giving the customer a new experience with surprisingly low prices and more “look what I just found” moments

1000 stores nation wide, in the UK, Ireland, Europe, the Middle East, Singapore, Russia, and Poland

Committed to ethical trading and animal welfare

Serve over 120 markets worldwide, including e-commerce

Suppliers

Sourcing strategy based on the UK/Europe, China, Southeast Asia, and the Indian sub-continent

Suppliers categorized into 3 groups First category: these suppliers are dedicated to

manufacturing New Look’s products and are responsible for manufacturing in house designs (China, Turkey, and Bangladesh)

Second Category: suppliers that New Look works directly with in the country of origin, sometimes supported by local agents

Third Category: suppliers where New Look works with the supplier’s design team to develop products to complement its own in house designs (2/3 of all products designed in house)

Jersey

Countries Sourced From: Bangladesh UK China

Jersey: Cons of Sourcing

Bangladesh: Protests over costs and conditions Factories are producing the maximum amount, and while retailers

are reaping the benefits, the workers are not receiving any party of it

Riots in addition to protests will start to increase due to 122 of 825 factories not paying their employees on time

Slower lead times UK

British Manufacturing on its last legs, too expensive to source in the UK

Cheaper to source out of the country than in the country Less people employed in UK for manufacturing, therefore harder to

find a company to source from China

Different quality standards Promote and produce knock-offs of designer goods, and sell them

to western (unknowing) retailers Longer lead times

Jersey: Pros of Sourcing

Bangladesh One of the cheapest due to low wages cost Manufacturing is moving to Bangladesh, becoming a greater

provider to the UK high street New Look believes in Ethical Trading, as in taking care of the

employees that produce their products and ensuring they live a decent life style

UK Supporting home country’s economy Providing jobs and security to more people Quicker lead times

China Number one manufacturer of apparel and textile industry Cheaper sourcing Well developed manufacturing industry Good reputation for quality Are willing to work with retailers because they are eager for

western business

Eveningwear

Countries sourced from: China Romania India

Eveningwear: Cons of Sourcing China

Different quality standards Promote and produce knock-offs of designer goods, and sell them

to western (unknowing) retailers Longer lead times Language barrier

Romania Harder to recruit trained staff due to job openings in the west after

Romania’s EU entry Currency value is going up, which will eventually cause production

to be more expensive Industry still developing

India Long lead time High reliance on roads, only half of which are actually paved,

making deliveries much harder Time zone differences make communication much more difficult

Eveningwear: Pros of sourcing China

Number one manufacturer of apparel and textile industry Cheaper sourcing Well developed manufacturing industry Good reputation for quality Are willing to work with retailers because they are eager for western

business Romania

Two day delivery time by truck No duty or quota on deliveries No customs control between Romania and Britain, therefore quicker lead

times Easy travel

India High productivity levels Competing with china, making the price lower Growth of IT industry, making India more capable of catering to the needs

of customers Thousands of talented employees available, all willing to take and compete

for the job, bringing modern technology and innovative ideas to the table Cheaper cost

Lead Time

Critical Path for lead times Sample development Place cloth order Finalize garment order Manufacture Shipping Customs Total: 16 weeks

Will be similar for India, due to the competition between India and China for the biggest manufacturing industry

Longer for Romania, due to travel difficulties Shorter for UK, because of the lack of customs

and closer shipping

Costs of Garment Compared to Retail Wholesale price is half of the retail

price Varies per company Jersey’s MSRP is cheaper than

evening wear Cheaper to buy in bulk, therefore

creating cheaper retail prices

References

http://www.drapersonline.com/sourcing-at-risk-in-bangladesh/5004040.article

http://news.bbc.co.uk/1/hi/business/1861801.stm

http://clothesource.blogspot.com/2009/01/could-romania-be-europes-next-apparel.html

http://www.chinasourcingblog.org/2010/01/china-and-india-a-comparison-i.html

http://manufacturingsourcing.com/outsourcing-to-india/