Thursday, 7 March 2013
New Look set to open in China
Source: Mintel 04-03-2013
New Look, the high street fashion chain, has announced plans to open its first store in China, despite currently preparing to refinance its £1bn of net debt.
The value-fashion group’s new chief executive, Anders Kristiansen, stated that the group hoped to open its first store in China by Spring 2014. Prior to joining New Look in January 2013, Kristiansen has spent the last ten years working in retail in China, leading to the announcement that, under his leadership, New Look will enter China alone, rather than through a joint venture as it had previously planned.
New Look is currently eyeing tier-one Chinese cities, including Beijing and Shanghai for the location of the initial store. The group plans to then roll out between five and ten more stores
Tuesday, 5 March 2013
Day to Day - New Look
Fast Fashion Model
New Look's fast fashion operating model is centred around the delivery of our core brand pillars, obsessive customer focus, emphasis on in-house design, daily product ordering, fast product development, manufacture and delivery and strategic long-term supplier partnerships.
Fashion Forward
- Higher risk – hits and misses
- Low volume
Crest of a Wave
- Lower risk-trend taking hold
- Quickly react to momentum with significant volume
- Requires fast and flexible supply chain
Fashion Follower
- Low excitement
- Risk that momentum has passed
- Week volume demand
In-house design
New Look's design team has grown from a team of seven in-house designers as at 27 March 2004 to a team of over 30 designers as at 26 March 2011.
Strength in supply chain
New Look has a well-established supplier base, with relationships developed during the course of the last 40 years, including strategic partnerships with suppliers based in China, Taiwan and Turkey. This supplier base facilitates speed of product development, manufacture and delivery to stores, whilst avoiding the risks associated with the ownership of factories. For example, New Look is able to take delivery in the UK of trend items from China within five to six weeks of placing an order, or as quickly as two to three weeks from countries such as Turkey and Romania.
We also have the ability to produce and deliver to stores some of our simpler products (such as t-shirts with slogans printed on them) within a 24-hour period in order to capitalise on newsworthy events. However, it is not just about having everything produced as fast as possible; it's about being proactive ahead of season with low commitment levels and having the flexibility in season to react rapidly to changing trends.
We also have the ability to produce and deliver to stores some of our simpler products (such as t-shirts with slogans printed on them) within a 24-hour period in order to capitalise on newsworthy events. However, it is not just about having everything produced as fast as possible; it's about being proactive ahead of season with low commitment levels and having the flexibility in season to react rapidly to changing trends.
Obsessive customer focus
We are committed to listening and responding to our customers. This requires internal co-ordination and a single, shared view of the customer. We therefore relocated our core buying, merchandising, design and marketing teams from split sites to one office near Oxford Circus, London. As well as providing access to one of the world's fashion capitals, this move has made it easier for almost 250 people to work together to deliver the fashion our customer wants.
Our customers drive every aspect of our business
We have a dedicated in-house Customer Insight unit focused on sourcing customer information using traditional methods such as quantitative and qualitative market research, activity-based panels and focus groups. We also spend time listening to our customers all over the world. We talk to them in the stores, in groups and one-on-one. We also have over 1.6 million facebook fans who we regularly listen to, as well as our very own customer run TV channel on YouTube where we post regular video content to help inspire our customers. It is this obsessive focus on our customers that means we can keep delivering new ideas, new looks and new reasons to keep coming back.
Our customers drive every aspect of our business
We have a dedicated in-house Customer Insight unit focused on sourcing customer information using traditional methods such as quantitative and qualitative market research, activity-based panels and focus groups. We also spend time listening to our customers all over the world. We talk to them in the stores, in groups and one-on-one. We also have over 1.6 million facebook fans who we regularly listen to, as well as our very own customer run TV channel on YouTube where we post regular video content to help inspire our customers. It is this obsessive focus on our customers that means we can keep delivering new ideas, new looks and new reasons to keep coming back.
Over the last year:
- Launched our Customer Dashboard to track New Look performance across brand, market and channel to help educate and inform management actions
- Extended our insights coverage to support decisions across our growing range of online channels – expanding from traditional ecom to include M-comm and our full multi-channel offering
- Undertook two seasonal price benchmarking studies across the business, ensuring New Look maintains its competitive price position
- Launched a quality feedback programme to enable staff to feedback regularly on the quality and fit of our New Look products
- Interviewed over 30,000 customers and conducted over 40 focus groups with high street shoppers to ensure we are continually learning how to improve our business and give our customers what they really want
UK Market Leaders
The UK clothing market was worth £33.8 billion in 2011, with women's clothing, footwear and accessories accounting for 57% of this*. 43% of women bought womenswear from New Look in the last year – that's 10.5 million individuals**. In the under 35 years of age segment of the women's clothing and accessories market, New Look is the largest retailer in the UK by value. We also have leading market value shares in several UK womenswear categories, including women's dresses. New Look is also the largest retailer for UK teenwear by value (revenue), with a 11.6% market share***.
*Source: Kantar Worldpanel 52 w/e 19th Feb 2012
** Source: Kantar Worldpanel, females aged 12+ years excluding Northern Ireland, Womenswear includes Women's Outer/Sports, Nightwear Underwear, Hosiery, Footwear & Accessories, 52 w/e 19th Feb 2012
***Source: Kantar Worldpanel 52 w/e 19th Feb 20
International
New Look has gained significant experience in operating in markets outside the UK in the last few years through bricks and clicks, and has established a clear and rigorous route to market selection. Our goal is to become a truly international retailer, establishing a significant footprint in all of our existing and new own-store markets and building a successful franchise model that is truly integrated within the Group business.
Our International business now represents an increasingly substantial part of the Group – with the New Look brand reaching 80 directly managed stores in Western Europe (Eire, France, Belgium, Netherlands) and 103 partnership stores across 14 markets by end of FY12 and the Mim brand in France and Belgium reaching 316 stores.
New Look International
Looking to the year ahead, we will continue to focus upon growing our existing own-store businesses in France, Belgium, Netherlands and RoI either organically or via acquisition, alongside the development of potential new markets. Our goal remains to ensure all our international businesses follow a clear and credible path of sustainable profitability.
Looking to the year ahead, we will continue to focus upon growing our existing own-store businesses in France, Belgium, Netherlands and RoI either organically or via acquisition, alongside the development of potential new markets. Our goal remains to ensure all our international businesses follow a clear and credible path of sustainable profitability.
Mim
The Mim stores offer a product range and brand proposition that is distinct from that of the New Look brand. Whilst also operating in the value fashion segment, Mim's offer is targeted at a younger (<30 years old) and more value-conscious female customer.
The Mim stores offer a product range and brand proposition that is distinct from that of the New Look brand. Whilst also operating in the value fashion segment, Mim's offer is targeted at a younger (<30 years old) and more value-conscious female customer.
As at end of FY12 Mim has 320 stores dotted throughout France and Belgium. In addition to the openings of owned stores, Mim has also successfully launched affiliate stores in and now has 20 since the first opening in 2011. Mim also has an e-commerce website at www.mim.fr that launched successfully in September 2009.
The New Look International and Mim businesses will focus on driving profitability through the times of subdued consumer demand to ensure a strong base from which future growth can be built as markets recover.
New Look Franchise
New Look has developed a successful franchise business model, that today trades from 103 stores in 14 markets. Going forward, the franchise business will continue to drive scale through its existing partners and markets and is also planning to build on its successful experience and expertise to date to enter a small number of markets with very significant medium to long term potential – in particular China. We operate a rigorous franchise partner selection process, working only with those partners with proven track records who are able to provide access to talent, real estate and local market knowledge.
New Look has developed a successful franchise business model, that today trades from 103 stores in 14 markets. Going forward, the franchise business will continue to drive scale through its existing partners and markets and is also planning to build on its successful experience and expertise to date to enter a small number of markets with very significant medium to long term potential – in particular China. We operate a rigorous franchise partner selection process, working only with those partners with proven track records who are able to provide access to talent, real estate and local market knowledge.
Multi-channel
Our online presence continues to grow with the launch of new initiatives in 2011 including: Click and Collect, Order in Store with home delivery, and a specific mobile site with web optimised functionality for smart phones. We also introduce Euros as a tender type to meet the increasing demand of the international customer.
We launched online brands offering in excess of 110 third party brands from up and coming to more established brands across womens, mens, teens and kids. Our Facebook page continues to go from strength to strength and now has over 1.6 million fans, driven by successful initiatives including Star Style competition and Kelly Brook's appearance at the Edinburgh store opening. In February 2012 alone we had a record week gaining over 100,000 new fans with the New Look page being recommended on Discover Facebook, their new initiative.
We launched online brands offering in excess of 110 third party brands from up and coming to more established brands across womens, mens, teens and kids. Our Facebook page continues to go from strength to strength and now has over 1.6 million fans, driven by successful initiatives including Star Style competition and Kelly Brook's appearance at the Edinburgh store opening. In February 2012 alone we had a record week gaining over 100,000 new fans with the New Look page being recommended on Discover Facebook, their new initiative.
New Look Brand Pillars
The New Look brand is uniquely defined by the following three pillars:- Fashion excitement
- Value
- Newness
NEW LOOK HISTORY
(from website)
New Look has come a long way since its first store in Taunton in 1969, founded by Tom Singh. In the UK we had 14.5 million consumers shopping with us in the last year. While we now have over 1,100 stores worldwide, in the UK and Republic of Ireland, Europe, the Middle East, Singapore, Egypt, Poland, Serbia, Indonesia, Montenegro, Croatia, Morocco, Romania, Ukraine, Malta and Russia.
Our brand is about delivering fashion excitement, newness and value. So we translate the latest trends from the catwalk, celebrities and the streets as fast as we can, providing our customers with fashion that is bang on trend - and great value to boot. We regularly win awards for our clothing and footwear and are today the number 1 womenswear and accessories retailer by value in the UK, amongst the Under 35s, with 10.5% market share*.
New Look isn't just for the girls either - we are gaining market share in menswear. Our online business also continues to grow, with customers visiting New Look whenever and wherever it suits them - making us one of the most visited fashion websites in the UK. We care about how we operate and are committed to ethical trading and animal welfare. We limit our impact on the planet by reducing the waste we send to landfill and using less energy.
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