Charles & Keith
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Introduction
From manning their parents shoe stall to creating their own designs, and now signing off 20% of their stakes to Louis Vuitton, Charles and Keiths growth has been exponential.
Much of their success has been attributed to their in-depth understanding of the market and their effective operations in retail and as an international brand.
Retail Operations
Before opening, inventory is checked and the store is dusted and made clean. The displays are prepared to show different designs, color variations, matching accessories and price. The size that is regularly displayed is 7, which is the average Asian womans foot size. During peak hours, a backroom man is in charge of taking out sizes for front men who entertain multiple customers. During off-peak, one to one system is implemented.
Daily reports are sent out to headquarters, which are then analyzed and used as basis for restocking and price valuation.
International Operations
With 190 stores across 27 countries, Retail Operations Executives were assigned to ensure proper brand development across regions. Various challenges such as communication amidst cultural differences, major supply chain coordination, and quality checks were addressed. Every month, 30 calls inquiring franchise opportunities would be deliberately put on hold to test their persistence.
Initially, the siblings were very overworked with multiple tasks of stocking inventory, designing shoes, and manning the cashier. Designers and manufacturers were not linked and the supply chain process had no visibility. Work was inefficient and repetitive. They then decided to strategize, divide tasks and create clear work goals. Marketing became the role of Charles and design by Keith. They decided to focus on turning the Supply Chain process, retain staff, optimize workflow, and deliver superb quality through Six Sigma and Kaizen.
Best Practice Adaptation
Their business model is linked to that of the automotive industry. High productivity levels were observed after the implementation of Japanese assembly lines and other manufacturing operational procedures.
In contrast with Charles and Keith, 50 manufacturing plants with very effective assembly lines are stationed in Malaysia and China. Directly purchasing raw materials from the source ensure quality, eliminating a lot of middlemen. Their efficiency has allowed Keiths team of 70 designers to come up and release 20 new items weekly, which entails 750 new shoe designs out in the market yearly. This also includes 300 new bags and accessories designs, which are further customized to fit their respective markets.
It creates an effort to match products with additional accessories to create a “full look.” When a customer buys a car, there are insurance and maintenance packages. In Charles and Keith, customers buy shoes with a matching bag