FASHION ?

$ $

Fast Fashion Chic and stylish with a reasonable price

Issues Facing CeeCee --- by 5Wings

Background Issue Prioritization Analysis & Recommendation Conclusion AGENDA

Part Background

Market overviewFast Fashion Background Short product life cycle Mimic the newest design Fast Supply chain Efficient IT system

Market overviewFast Fashion Background Fast Fashion SPA Model Market Value ($billion)

CeeCee overview Background AIM Focusing on up to the minute fashion styles for women at affordable prices. Leading edge of current trend and style of its own Reliant on a good outsourced distributor Reliant on its sophisticated IT system Limited numbers of each design in order to create an air of exclusivity

CeeCee overview Background Great Growth Potential Some operation issues International expansion

Part Issues Prioritization

1. Distributors strike 2. IT failure 3. Expansion into jewellery range 4. Celebrity marketing 5. Ethical issues Issues prioritization

Part Analysis & Recommendation

Issue 1 Distributors Strike Strike

Supply chain Distributors strike Design Marketing & Sales Distribution & Storage Production

Current status Distributors strike Shops Distribution Center EIT Lost profit189,228,553.7 Lost customer loyalty

Distributors strike How to minimize the losses? MethodsAdvantagesDisadvantages Maintain current distributor Set up own distribution team Employ other distributors Continue enjoying high efficiency Maintain long term cooperation Quick recovery Diversified risk Easy to control High utilization Large expenses Time-consuming Difficulty to cooperate High cost Risk of similar collapse Difficult to recover immediately

Distributors strike How to improve distribution? Help current distributor recover Outsource to other distributors Help current distributor recover Outsource to other distributors Resolve current collapse Diversify distribution channels Cooperate with more distributors Set up its own distribution team Diversify distribution channels Cooperate with more distributors Set up its own distribution team Optimize logistics structure

Issue 2 IT Failure

IT failure Current status Significant Discrepancy Website sales Cash received Receipt problem

IT failure 20,000 difference MethodsTotal loss Percentage recovered Additional charges Net amount recovered Which way to collect payments? CeeCees overstretched staffs 6,000,000 Outside agency 14 per customer 5% success fee 60% 2,720,000 2,700,000 6,000,000 Finance department None 45%

IT failure What causes this IT failure? Programing error 3 months before detection Inefficient internal control

Stricter error detection More frequent internal audit Timely internal control IT failure How to improve internal control?

IT failure Current outsourcing policy IT system CeeCees IT staff Outsourced IT company High Risk Low Cost

IT failure How much work to be outsourced? Core design work Some update work In-houseOutsource Clear segregation of duties

Issue 3 Expansion into Expansion into Jewellery Range Jewellery Range

Current status Invest or not Recession resistant Low threshold Synergy Expansion of jewellery range

Whether to expand into jewellery range Expansion of jewellery range NPV: 239,266

Expansion of jewellery range Whether to expand into jewellery range Jewellery Current products

Lack of experience Erosion effects Low turnover Reject Expansion of jewellery range Whether to expand into jewellery range Unsatisfied profit

Expansion of jewellery range Comparison of key statistics

Expansion of jewellery range Comparison of key statistics

Shop expansion

Issue 4 Celebrity CelebrityMarketing

Celebrity marketing Whether to use the celebrity

Celebrity marketing Diversify marketing methods Shop advertising Celebrity Direct media Designer On-line

Issue 5 Ethical Issues

Ethic issues Current status REPUTATION CONFIDENCE MORALE

What to do? Ethic issues Negotiation Audit Cooperation with labor union Supplier Management Negotiation Audit Cooperation with local labor union Supplier

What to do? Ethic issues Recruitment Training Sound working condition Energy saving Environment friendly material recycle Laundry test Chemical test R&D healthy fabrics Negotiation Audit Cooperation with local labor union Supplier Environmen t Employee Product

Part Conclusion

Conclusion Short term Minimize losses distributor strike IT failure Reject proposals jewellery expansion celebrity marketing Long term Improve outsourcing policies distribution IT system Expand Shop range Diversify marketing methods Enhance CSR

Conclusion High End Fast Delivery Fair Price

THANK YOU! By 5 Wings Justin Li Nancy Yuan Maggie Xu Elena Zhong Angela He