New Look and the Trend Range From China

NEW LOOK ADVICE REPORT
By (Student's Name)
Course
Professor
University
City and State
Date
Table of ContentsIntroduction3Problem Statement3What are the risks of currently sourcing their 'Trend' range from the Far East?4What alternative countries could be used and why? (Propose two countries)5What are the challenges of the proposed countries/ what compromises may need to be made?5Make a final recommendation to your manager regarding whether you think sourcing should be reduced from China.6Conclusion7
Introduction
New Look is a United Kingdom (U.K.) fashion retailer founded in 1969. The enterprise sources its products from a mix of global and local factories, with a significant portion of its products being sourced from factories based in China. This has allowed New Look (fast fashion) to offer a wide range of products at competitive prices, but it also means that it has longer lead times than competitors like Boohoo (ultra-fast fashion), who source from local U.K. factories. According to Camargo et al. (2020), the success of companies in the fast-paced fashion industry depends on their ability to produce on-trend garments with shorter lead times. The market demands new styles at an increasingly rapid rate, and companies must adapt to these trends to stay ahead of the competition (Anguelov, 2021, p. 42-43). In order to achieve this, companies need to focus on reducing lead times in their production processes, which can be achieved through efficient supply chain management, effective communication with suppliers and customers, and adopting new technologies. According to Bhardwaj and Fairhurst (2010), failure to meet customer demands promptly can result in lost sales and decreased market share, making the ability to produce on-trend garments with shorter lead times a critical factor in the success of fashion companies.
Problem Statement
New Look struggles to keep up with competitors like Boohoo in the fast-paced fashion industry. The company's reliance on factories based in China has resulted in longer lead times than Boohoo, which sources from local U.K. factories. Thus, it has disadvantaged New Look in responding to changing fashion trends and meeting customer demands. In order to achieve and remain competitive, New Look needs to find alternative countries to source its 'Trend' range and reduce its reliance on factories based in China. The company needs to produce on-trend garments with shorter lead times to meet customer demands and stay ahead of the competition. The following are the report's objectives:
* To find alternate nations from which New Look may get its 'Trend' line.
* To assess the possible advantages and dangers of sourcing from various nations, consider political stability, labor regulations, production costs, and transportation expenses.
* To offer advice on New Look's 'Trend' range's best sourcing approach to increase market responsiveness, satisfy consumer demand, and boost the company's competitiveness in the fast-paced fashion sector.
What are the risks of currently sourcing their 'Trend' range from the Far East?
Several risks are associated with sourcing products from China, especially in the current economic climate. Some Western fashion brands are considering changing their dependence on factories in China because of supply chain breakdown, rising costs of doing business, and working conditions concerns (Taplin, 2014, p. 251). It should be reiterated that the COVID-19 pandemic has led to supply chain disruptions and delays in shipping and production, which can impact the timely delivery of goods. Furthermore, the ongoing US-China trade war has increased tariffs on imported goods, which can drive up costs for companies. Mango and Dr. Martens have recently cut or signaled their intention to shift manufacturing out of China or Southeast Asia (Alim & Telling, 2023, n.p). Although still in its early stages, the paradigm shift from mass textile manufacturing in China signifies the problem of extended timescales in outsourcing from jurisdictions that ultimately came to dominate supply chains of textile products (Kumar et al., 2011, p. 365). According to the U.S. Department of State (2021), the move is driven by a stricter regulatory framework initiated within the U.S. and Europe to address workforce abuses, as evidenced by widespread alleged employment of forced labor in cotton-producing areas of Xinjiang, China.
What alternative countries could be used and why? (Propose two countries)
As a production strategy, near-sourcing involves relocating manufacturing operations to countries closer to the target market. The approach offers some benefits to companies, including shorter lead times and lower transportation costs (Alim & Telling, 2023). However, the decision of which country to relocate to is an important one and requires careful consideration. The alternatives are Turkey and U.K., currently preferred destinatio...