India Pakistan Apparel Retailing Operations Roadmap
India Pakistan Apparel Retailing Operations Roadmap
Strategy Roadmap for Orange
Overview
This paper discusses the operational issues of a possible apparel retailing chain that operates in India and Pakistan and is looking to expand beyond.
Operations
Orange had a very successful Eid season in Bombay, but less so in Pakistan. There are several issues on our plate that need to be addressed:
Open the restaurant and hair salon in Defence Z-block. These are important since they will generate revenue, buzz and traffic for the Z-block shop. One or both of these could be very successful and possibly be more profitable on a square-foot basis than the retail shops. However, they will both require substantial capital injections.
Improve our marketing efforts in Pakistan to raise awareness of the Orange brand in Pakistan. Many potential buyers are simply unaware of the existence, location and content of our stores.
Improve our merchandising efforts in Pakistan, in the light of lessons learned in Karachi and Lahore. We need to fix problems with wrong sizes, inadequate variety and too-slow turnover of garments on the shelf. Better interaction with Bombay manufacturing is very important.
Work on our operational processes which are very basic right now. The IT systems are not connected, there is no stock-count or inventory control process, nationwide financial reporting is not in place
Reconfigure and train the sales force. In Karachi the sales force need to be replaced. In all Pakistan stores, the sales force needs to be trained and have specific assignments. A process for tagging and stock-take needs to be implemented.
Improve planning with Design and Production. We need to create a 12-month outline plan which shows a schedule of which garments will be produced, shipped and displayed on which dates. We also need to schedule our annual sales.
Outlook
The Bombay stores have gained a lot of traction in 2007. Based on a size of 2000 sq ft. for Red Village and 1000 sq. ft for Beachview, sales rose as follows:
Store
Jan 2007 Sales per sq. ft. /day
Aug 2007 Sales per sq. ft. /day
Red Village
Beachview
Karachi
Clearly, Orange has struck a chord with