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
Mimic the
newest
design
Fast
Supply
chain
Efficient
IT
system
Short
product
life cycle
Background
 Market overview—Fast Fashion
Market Value ($billion)
Fast Fashion
1990
1996
SPA Model
2002
2008
Background
 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.
Reliant on its sophisticated IT system
Limited numbers of each design in order to
create an air of exclusivity
Background
 CeeCee overview
Some operation issues
Great Growth Potential
International expansion
Background
Part Ⅱ
Issues Prioritization
Issues prioritization
1.
2.
3.
4.
5.
Distributor’s strike
IT failure
Expansion into jewellery range
Celebrity marketing
Ethical issues
Part Ⅲ
Analysis
&
Recommendation
Issue 1
Distributor’s
Strike
 Supply chain
Production
Distribution & Storage
Design
Marketing & Sales
Distributor’s strike
 Current status
Distribution Center
Lost profit
€189,228,553.7
Lost customer
loyalty
Shops
Distributor’s strike
 How to minimize the losses?
Methods
Advantages
Disadvantages
Maintain
current
distributor
Employ
other
distributors
Set up own
distribution
team
• Continue enjoying high
efficiency
• Maintain long term
cooperation
• Risk of similar collapse
• Difficult to recover
immediately
• Quick recovery
• Diversified risk
• Difficulty to cooperate
• High cost
• Easy to control
• High utilization
• Large expenses
• Time-consuming
Distributor’s strike
 How to improve distribution?
Resolve
current
collapse
• Help current distributor recover
Optimize
logistics
structure
• Diversify distribution channels
• Cooperate with more distributors
• Set up its own distribution team
• Outsource to other distributors
Distributor’s strike
Issue 2
IT Failure
 Current status
Significant
Discrepancy
Website
sales
Cash
received
Receipt
problem
IT failure
 Which way to collect payments?
Methods
Total loss
Percentage
recovered
Additional
charges
Net amount
recovered
Outside
agency
6,000,000
60%
14 per customer
5% success fee
2,720,000
Finance
department
6,000,000
45%
CeeCee’s overstretched staffs
None
2,700,000
€20,000 difference
IT failure
 What causes this IT failure?
Programing
error
3 months
before
detection
Inefficient
internal
control
IT failure
 How to improve internal control?
Timely
internal
control
Stricter
error detection
More frequent
internal audit
IT failure
 Current outsourcing policy
CeeCee’s
IT staff
High
Risk
IT
system
Low
Outsourced
Cost
IT company
IT failure
 How much work to be outsourced?
In-house
Clear
segregation
of duties
Core
design work
Outsource
Some
update work
IT failure
Issue 3
Expansion into
Jewellery Range
 Current status
Recession
resistant
Invest
or not？
Low
threshold
Synergy
Expansion of jewellery range
 Whether to expand into jewellery range？
NPV: € 239,266
Incremental Cash Flow
30,000.00
25,000.00
20,000.00
15,000.00
10,000.00
5,000.00
-5,000.00
-10,000.00
-15,000.00
-20,000.00
-25,000.00
0
1
2
3
4
5
Expansion of jewellery range
 Whether to expand into jewellery range？
Current products
Jewellery
Expansion of jewellery range
 Whether to expand into jewellery range？
Erosion
effects
Low
turnover
Reject
Unsatisfied
profit
Lack of
experience
Expansion of jewellery range
 Comparison of key statistics
Expansion of jewellery range
 Comparison of key statistics
Expansion of jewellery range
Shop expansion
Issue 4
Celebrity
Marketing
 Whether to use the celebrity ？
Celebrity marketing
 Diversify marketing methods
Shop
advertising
Celebrity
Direct media
Designer
On-line
Celebrity marketing
Issue 5
Ethical Issues
 Current status
REPUTATION
MORALE
CONFIDENCE
Ethic issues
 What to do?
• Negotiation
• Audit
• Cooperation with
Supplier
labor union
• Negotiation
• Audit
• Cooperation
with local
labor union
Supplier
Management
Ethic issues
 What to do?
• Negotiation
• Audit
• Cooperation
with local
labor union
• Laundry test
• Chemical test
• R&D — healthy
fabrics
Supplier
Environment
• Energy saving
• Environment
friendly
material
• recycle
Product
Employee
• Recruitment
• Training
• Sound
working
condition
Ethic issues
Part Ⅳ
Conclusion
 Conclusion
Long term
Short term
• Minimize losses
• distributor strike
• IT failure
• Reject proposals
• jewellery expansion
• celebrity marketing
• Improve outsourcing policies
• distribution
• IT system
• Expand
• Shop range
• Diversify
• marketing methods
• Enhance CSR
 Conclusion
Fast
Delivery
High
End
Fair
Price
Fashion is Affordable
THANK YOU!
 By
5 Wings
Justin Li
Nancy Yuan
Maggie Xu
Elena Zhong
Angela He