A large European sports retail chain had made plans to establish its own brands in its portfolio. The interim manager was hired for the following work packages in particular:
- Sourcing suitable products and production partners in Asia
- Training employees in technical implementation and product development
- Support in communication with Asian producers
Initial situation: lack of experience in international sourcing of private labels
The client did not have any private labels in its clothing portfolio at the time of the interim mandate. There were also no direct contacts with producers, neither in Europe nor in Asia. The company also lacked its own production development. The new management team hoped that the introduction of private labels would result in higher sales margins. As numerous companies in Asia specialize in sportswear, product and producer sourcing in Asia made sense.
However, the client's purchasing department lacked the prerequisites for successful cooperation with producers in Asia. In addition, the purchasing team had no experience in international sourcing from producers. The company had previously only worked with domestic agents or trading houses.
Identification and auditing of production partners in Asia
The interim manager had extensive market knowledge and contacts in the textile industry in Asia. She was therefore able to quickly identify suitable suppliers in the Asian region. She was also responsible for auditing the production facilities. As part of the interim mandate, she also took on the qualitative assessment of ongoing production and negotiated prices.
Enabling the client to cooperate internationally
One of the challenges of the sourcing project was to enable the client's product developers and purchasers to cooperate internationally. For example, the interim manager taught those involved what information a foreign producer needed and in what form. This covered the entire process - from technical support in the creative process and quality-oriented product development to feasibility and the cost-to-design process.
At the same time, she sensitized her client's employees to intercultural management, for example by explaining the expectations of an Asian producer. She also trained the employees in direct communication with the suppliers.
Successful private label production established in Thailand
At the suggestion of the interim manager, suitable suppliers in Thailand were commissioned to produce the private labels. Within a few months, three own brands for fitness, skiing and golf were successfully launched. After a year of support (two collections), the employees in the purchasing department are able to develop collections independently and implement them with the Asian suppliers.
Own brands make a significant contribution to profitability
The own brands give the company more freedom in marketing and a certain degree of independence from external brands. One of the three brands has become a great success and contributes significantly to the company's improved sales.
