ls industry study on fh|folded&hung
DESCRIPTION
Retail clothing industry study with FH|Folded*Hung in focus.TRANSCRIPT
Ateneo De Manila UniversityJohn Gokongwei School of Management
Leadership & Strategy Industry Analysis
Retail Industry
FH | folded&hung
Cheng, Jezelle C.Lazatin, Raphaela Kercee
Molaer, Micaela Fe D.Panopio, Lee L.
Santiago, Dan Nico Templo, Iris G.
Uy, Arvy Brian M.Young, Joanna Clarisse O.
THE RESEARCH
Methodology
• Industry study for Folded and Hung
• Using first hand interviews, documents from the company and direct observation of some management and business procedures
• Internal and external environments of the firm
Significance of Research Findings
• A basic necessity --- clothing• better understanding of the overall business structure
• internal and external business• and the business strategies• analyze key points for the success of the business
• recommend sound changes• GOAL: enhance its current business and management strategies, boost its efficiency and most importantly maximize its profit.
THE FIRM
AND ITS INTERNAL ENVIRONMENT
Background History• Established 1998 at the heart of Greenhills
Shopping Arcade by Dr. Ronald Pineda• Now under Adenip Incorporated, a 100% Filipino
owned company• F&H | Folded and Hung caters to males and
females, 18 to 35, belonging to upper class socio-economic status
• Head office is located at Barangay Sta. Cruz, Quezon Avenue, Quezon City, Philippines
• Currently, it has forty-four branches and ten franchises nationwide, and an online store
• Total Assets in 2009 amounted to 43,589,083.00, and revenues amounting to 389,213,919.93
Ownership & Management Profile
*Dr. Ronald Pineda, Mr. Feliciano Pineda II, Mr. JR Pineda and Ms. Claudette Pineda are siblings, stockholders of Adenip Inc., and altogether manage the brand name F and H | folded and hung.
Vision
To be a globally recognized fashion brand in 2014
Mission• We commit to build a lifetime customer relationship
by providing them with the best fashionable products, affordable prices and excellent customer service.
• We commit to provide our employees with competitive compensation, personal and professional growth and a dynamic and healthy working environment.
• We commit to provide our stockholders with good returns on investment.
• We commit to build a productive and lifetime business relationships with our suppliers and corporate alliances.
• We commit to provide support to the community in their continuous social and environmental developments.
ValuesTEAMWORK “One family, one goal”
INTEGRITY“Our name is our guarantee”
“Your business, our business”
MALASAKIT
Treat the company as your own. Deep concern towards the organization translated into concrete and effective
actions that will yield mutual benefit to employee and the
company.
EXCELLENCE “To be the BEST”
Marketing & Sales Management
• Market: upper and middle class
• Distribution: primary and secondary– Primary: Mall of Asia, TriNoma, The Block
– Secondary: Isetan and Tutuban
Advertisements
• Billboards, poster• Sponsorships• Fashion shows• Sales promotion
– As low as 70% discount (twice a year)
– Surplus products from seasonal end
Human Resources Management
• Sales Staff– 18 to 25 years old– College experience– 5’3” (female); 5’7” (male)– Pleasing personality, good taste in
fashion and must be stylish and fashionable
Human Resources Management
• Office Staff– Late 30s– 4th year degree in college– Fashion Retail Management (a plus to
the management)
Human Resources Management
Recruitment and Selection
1. Screenings2. Interview3. Selection process (for
manager)4. Submission of
requirements5. Orientation6. Good to go!
Financial Management
Company Net Sales Total AssetsF&H Php 339.2
millionPhp 43.6 milion
Bayo Php 350.6 million
Php 180.1 million
People R People Php 666.3 million
Php 213.9 million
Financial Management
• Current ratio= 1.057: 1
• Acid test ratio= 0.059:1
• Return on Assets= 17.09%
THE INDUSTRY
& ITS COMPETITIVE ENVIRONMENT
Industry definition
Folded and hung, along with Kamiseta, Bayo and People are People belongs to the retail fashion industry.
Retail fashion industry is generally limited to garments and accessories that address what is in and what is not, what the consumers will patronize and what they would just ignore.
Background history
• Kamiseta launched its first store in 1992, and from then, many stores were opened in the different key cities in the Philippines and in some foreign countries.
• As of September 2008, the company has a total of 64 stores in the Philippines and in other countries such as Indonesia, Malaysia, USA (Guam), Dubai and Bahrain.
• endorsed by foreign actresses and supermodels
Background history• Bayo opened its first mall branch at
Robinson’s Galleria in 1992. It was in 2001 when Bayo started to offer franchises.
• Bayo, as of July 2009, has 58 retail outlets – 18 of them franchises and the rest company-owned – nationwide.
• Bayo’s success in the fashion industry is partly because of its aggressive brand promotion through fashion events and chic adverstising campaigns.
• Bayo expresses its full pride in being Filipino. Like Folded & Hung, Bayo sticked with Filipina models.
Background history• People Are People sells products with different brands under its
name such as Bittersweet, Stitch, Fortune Cookie and Sewn with Love for apparel, and Syrup for shoes.
• The company buys products from these brands and sells them under the larger and more popular brand name that is People Are People.
• People Are People can be considered as a classy and more expensive tiangge that is situated inside shopping malls with fixed price.
• does not spend anything on well-known personalities as its endorsers
Major Players and their influence
People are People
Kamiseta Bayo
ResourcesMarket sizeIndustry power or influence
Industry Size
• Market size of 97 million people
• US$2.51 billion in revenues
• Largest employer in the manufacturing sector
• Over 1 million employed
Marketing Practices and Strategies
• latest trends in the runway
• 18 to 35 years old• middle and upper
socio-economic status• recent trends made
them focus on the more sexier and eye-catching looks
• Seasonal product packaging has colourful designs
• laminated paper bags
Marketing Practices and Strategies
• fashion shows• campaigns and
have press releases
• mainly thru billboards
• retail stores in malls and boutiques
Procurement of Materials
• Suppliers of these four companies are locally sourced, the materials of which come from both local and foreign region within Asia Pacific.
Product Development
Production Process
Other Major Players
Human Resource Practices and Strategies
1. Uses jobsDB.com2. Checking of resume
of the applicants3. Given text for
screening4. Managers pick for
employee (job specialization)
5. Final interview6. List of requirements
and referral forms
Human Resource Practices and Strategies
Requirements:• Diploma/ transcripts of
records• Previous employment
certificates• NBI or police clearance• SSS ID or E-1 form• TIN ID or TIN form 1902• Pictures (3pcs. 2x2 and
5pcs 1x1)• Occupational permit (to be
claimed based on work location)
Human Resource Practices and Strategies
Bonuses• Wedding: Php 2,000• Deaths: Php 5,000
– Immediate family (single): father, mother, siblings
– Immediate family (wedded): spouse, children
Human Resource Practices and Strategies
• 18 to 25 years old• 5’2’’ (female); 5’6’’
(male)• Please personality• Knowledge in field works• Hardworking, can
handle pressure• Good interpersonal
attitude• Flexible schedule
Human Resource Practices and Strategies
• Female, preferably single• 19 to 25 years old• 5’2’’ in height• Pleasing personality and
fair complexion• Basic knowledge• Good communicating skills• Eye for details and be able
to multi-task
Human Resource Practices and Strategies
• Audit assistants• Merchandising
assistants• Cashier or staff• Quality controller• Sewer
Growth and Expansion Strategies
KamisetaProduct Introduction: • feature new
products in their websites
• Advertisements, press launches, campaigns, and fashion shows
Market Development
• Stores in popular malls and hangout places
• Offer franchising
Growth and Expansion Strategies
Kamiseta
Growth and Expansion StrategiesIndustry
Innovations
Bayo: produce a clean and classic image
Kamiseta: create cool casual and classic look
Diversification• bags, belts, accessories, shoes and
underwear
Growth and Expansion Strategies
ANDGLOBAL
ENVIRONMENT
THE NATION
AL
Socio-cultural Environment• Change in fashion • Change in lifestyle
• Weather • Age
Socio-cultural Environment
Technological Environment
Barcodes
Computer-aided design (CAD)
• Electronic Data Interchange (EDI)• The Garments and Textile Export Board Network (GTEBNet)
• Electronic Visa Information System (ELVIS)
Technological Environment
Automation
Technological Environment
Product Delivery: Containerized Shipping
Industry Capacity Analysis
• largest employer in the manufacturing sector --- textile and clothing industry
• great increase in foreign direct investment in the past five years
• requires a minimum of 2.5 months stock-to-sale ratio per store
Abilities or Constraints to Meet Demands
• invest in the right things for the business• textile and garments industry in the
Philippines lack the capacity to invest in new manufacturing technology
• lack of locally sourced raw materials for the products
• High cost of labor child labor
Political And Regulatory Environment
• Taxation Laws• Consumer Quality Product
and Safety• Price Act• Employment Laws
– Age Discrimination in Employment Act
– Equal Opportunity Employment Act
– Occupational Safety and Health Act
• Laws on Importing and Exporting Goods– Import Laws– Export Development Act
• Retail Trade Liberalization Act• Safeguards Measure Act
Political And Regulatory Environment
Natural Resource Environment• Wastewater from
polyester manufacturing plants
• Autumn sales in India because of global warming
• Climate forces fashion system to change
Industry Analysis
Industry Life Cycle Analysis
Industry Life Cycle Analysis
Shakeout stage:
• “survival of the fittest”• settle on a “dominant design”
signature look:Folded and Hung sells top quality and globally-competent products that are “stylish/trendy, fun-loving, confident and free-spirited”. The company’s products reflect the lifestyle and personalities of its customers with its hip, stylish and fashionably-designed clothing line and accessories.
Industry Life Cycle Analysis
• Market saturation is nearly complete.
• Industry growth begins to slow.• Weaker competitors go out of business.
• Remaining players get bigger through consolidation.
Porter’s Five Forces
H E L P F U L H A R M F U L
I
N
T
E
R
N
A
L
Highly visible
Strategic locations
Relative cheapness
High quality merchandise
Fresh, youthful vibe
Small differentiation from other
brands
Non-exclusivity
Limited reach
Small range of products
E
X
T
E
R
N
A
L
Exportation
Creation of sub-line of clothing
Diversified target markets
Diminishing market share
Foreign competitors
Key Success Factors
• Product design • Maintenance of quality • Market distribution • Distribution and
promotions • Communication • Human resource
Conclusionand
Recommendations
Conclusion
• most probably never run out of business• change in trends• great potential in terms of income• International trend local market• continues to successfully uphold its
corporate mission in the pursuit of excellence
• globally recognized fashion brand in 2014
Recommendations
• Invest in Research and Technology
• Observe Market Behaviors• Watch-out for Fashion
Trends
• Cosmetic Products• Going Green• Expand into the International
Market
Thank you for listening!
Cheng, Jezelle C.Lazatin, Raphaela Kercee
Molaer, Micaela Fe D.Panopio, Lee L.
Santiago, Dan Nico Templo, Iris G.
Uy, Arvy Brian M.Young, Joanna Clarisse O.