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Presented By:
Arpita Khandelwal, Jatin Agrawal M.F.Tech.-II (2011-13)
Assignment 2
Apparel Marketing & Manufacturing
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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.
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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
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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
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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.
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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
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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
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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
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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
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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
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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.
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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.
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Customer Profile
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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
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BUYER CHECKLISTS CRITERIA
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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.
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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.
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Working Seasons/Cycle
Seasons
2-Seasons
1-Winter 1-Autumn
2-Seasons
1-Spring 1-Summer
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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
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Nominated Suppliers/Order Bookings
Jaidka
RMX
TCNS
Orient Craft
Texport
Shahi Exports
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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
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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
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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
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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
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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.
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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.
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DELIVERY OF GOODS TO CUSTOMERS
This is done either by ship or by air modes only.
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