MAR­KET UP­DATE

The Ware­house Group from New Zealand Opens Sourc­ing Of­fice in In­dia

Perfect Sourcing - - Front Page -

The first phrase that comes to mind when you en­ter the well planned and highly se­cure area of Ae­roc­ity, where New Zealand-based The Ware­house Group (TWG) has re­cently opened its Sourc­ing of­fice is… ‘Wow! They are here in In­dia and it is def­i­nitely good news for sup­pli­ers’.

So far, the Group has been mainly sourc­ing out of only China and Bangladesh, but they have now de­cided to ex­pand op­er­a­tions in South East Asia through this of­fice.

Team Per­fect Sourc­ing got the chance to meet ta­nia Benyon, ceo - GSS; nick tuck, EGM - Di­rect Sourc­ing and anika passi, coun­try Man­ager -twhouse Sourc­ing pvt Ltd.

While in­ter­act­ing with our team, they clar­i­fied that even though a ma­jor chunk of busi­ness is done through China and Bangladesh, In­dia re­mains a very im­por­tant sup­ply base and ranks num­ber 3 in terms of sourc­ing.

“For many years we were sourc­ing mainly home tex­tiles from In­dia. We now plan to ex­plore cat­e­gories like baby wear, in­ner­wear, value-added wom­enswear and com­plete Home Dé­cor from re­gions like Delhi, Ban­ga­lore, Coim­bat­ore, Tirupur and Pa­ni­pat in In­dia” said Nick Tuck.

Asked about the main ob­jec­tive of set­ting up an of­fice in In­dia, nick replied, “We have found that we have to be faster on our feet if we have to serve fast fash­ion. Also, we need to have di­rect phys­i­cal pres­ence, as, this way, we can give speedy ser­vice, widen our prod­uct pro­file and get prod­ucts faster on our shelves in NZ.”

“We feel that In­dia is re­source­ful in terms of skilled peo­ple and good fac­to­ries that can of­fer both qual­ity and in­no­va­tion ,” rea­soned Ta­nia. The of­fice in In­dia will look af­ter sourc­ing from In­dia, Pak­istan, Bangladesh, Sri Lanka, In­done­sia and Myan­mar.

As of Jan­uary 2017, The Ware­house em­ployed over 12,000 peo­ple in New Zealand. With head­quar­ters in North Shore, Auck­land NZ, the com­pany’s store net­work com­prises 92 The Ware­house stores, 69 Ware­house Stationery stores, 77 Noel Leem­ing stores, and 12 Tor­pedo7 stores, as well as on­line busi­ness.

It is also in­volved in the prop­erty, in­vest­ment, and whole­sale busi­nesses. “We have a big share of the mar­ket and we have in-house De­sign team . In NZ, the mar­ket is quite strong for us in ap­par­els and we have seen good growth,” in­formed Ta­nia.

The prod­uct range avail­able at stores in­cludes kids, ladies and men’s wear along with fo­cus on seg­ments like sleep, sports, ac­tive, street and swimwear, and a com­plete range in home dé­cor. “We are ex­pe­ri­enc­ing good growth in ath­leisure and street wear and right now, we are buy­ing them from Bangladesh and China,” added Nick.

Ta­nia also ex­plained that the of­fice in In­dia was also part of its strat­egy be­cause busi­ness

The price range of the prod­uct at any store starts from NZ$ 2-3 and goes up de­pend­ing on the prod­uct. “As far as the qual­ity is con­cerned, we usu­ally give com­pre­hen­sive tech spec­i­fi­ca­tions to all our ven­dors which spec­ify de­tails on what yarn, fab­ric and ac­ces­sory has to be used Anika Passi, Coun­try Man­ager, The Ware­house

from di­rect sourc­ing has helped the com­pany in bring­ing in­no­va­tive prod­ucts to the mar­ket and at­tain su­perla­tive qual­ity within the de­sired time frame.

At most of the stores of The Ware­house one can find prod­ucts that have good de­sign ap­peal and are af­ford­able as well. “Every time a con­sumer buys from them, they should feel that they are get­ting value for money,” as­serted Nick.

How­ever, the group is very par­tic­u­lar about sourc­ing prod­ucts only from those com­pa­nies who can pro­duce in the most eth­i­cal man­ner. “We strongly be­lieve in sus­tain­abil­ity and com­pli­ance and have been fol­low­ing it to the core in all our pro­grams and prod­ucts,” added Ta­nia. “SA 8000, Wrap Cer­ti­fi­ca­tion and sim­i­lar norms are what we look for in a sup­plier be­fore get­ting as­so­ci­ated,” said Anika.

Shar­ing thoughts about con­sumers in gen­eral in NZ, they said the con­sumer buys ap­parel quite of­ten and ap­prox­i­mately the pop­u­la­tion of NZ passes through their stores in a time span of a month. “Our main ad­van­tage is that we have a lot of cat­e­gories to of­fer: ap­parel, non-ap­parel goods, stationery and elec­tronic items, so this cre­ates space for all prod­uct cat­e­gories to fa­cil­i­tate good growth and bal­ance de­mand for all cat­e­gories,” ex­plained Ta­nia.

The group has stores dis­persed all over NZ and one can reach a Ware­house Store within half an hour of travel , any­where in NZ. with an­nual sales of around US$2.98 bil­lion, the com­pany is eye­ing in­dia with a lot of ex­pec­ta­tions and plans to in­crease sourc­ing mul­ti­fold. as of now the com­pany has around 20 team mem­bers in its of­fice in in­dia and on ground in Bangladesh and plans to add more mem­bers to its team in the com­ing year. “This was a good time to en­ter In­dia, in view of the favourable eco­nomic cli­mate, good Gov­er­nance Poli­cies of the cur­rent gov­ern­ment, ease of work­ing as com­pared to ear­lier and more­over, we do our own au­dits and qual­ity checks to en­sure com­plete sat­is­fac­tion,” said Anika. Talk­ing about what the main cri­te­ria for the com­pany are while se­lect­ing its ven­dor base, Ta­nia said, “For us, the top pri­or­ity is pro­duc­tion is an eth­i­cal and com­pli­ant man­ner. We will not place any or­der with a fac­tory that is not safe for peo­ple, as our con­sumers trust us and even if they are not aware, we are highly con­scious about eth­i­cal pro­duc­tion.”

On ar­eas where im­prove­ment is re­quired from sup­pli­ers end Nick said, “In­fra­struc­ture, pro­duc­tiv­ity, ef­fi­ciency and ca­pac­ity is what In­dia needs to work upon, as coun­tries like China and Bangladesh have achieved them all.”

Ever since the com­pany started op­er­a­tions in In­dia, it has seen as­tound­ing growth of around 250 per­cent and ex­pects to grow an­other 200 per­cent in the next 24 months.

She also re­vealed that var­i­ous CSR pro­grams have been im­ple­mented since 2004 and they have achieved sub­stan­tial growth through the same.

The price range of the prod­uct at any store starts from NZ$ 2-3 and goes up de­pend­ing on the prod­uct. “As far as the qual­ity is con­cerned, we usu­ally give com­pre­hen­sive tech spec­i­fi­ca­tions to all our ven­dors which spec­ify de­tails on what yarn, fab­ric and ac­ces­sory has to be used,” said Anika. “Yarn and fab­ric con­sol­i­da­tion has helped us a lot in not only sav­ing time and re­sources but also ac­quir­ing the re­quired prod­uct within the stip­u­lated time,” added Anika. She also dis­closed that for the ap­par­els sourced from the re­gion mainly cot­ton fab­ric is used, how­ever, they are also run­ning spe­cial pro­grams in other fab­rics like denim/ vis­cose/polyester.

“We are as­so­ci­ated many well- known com­pa­nies in In­dia, Pak­istan and Bangladesh and will ex­pand our sourc­ing base to other coun­tries in the re­gion in due course of time. NZ is a very im­por­tant mar­ket, with re­verse sea­son for ven­dors in our re­gion and Ware­house as a brand is in the DNA of every Kiwi, so it is a win -win sit­u­a­tion for both the sides,” said Anika as we wrapped up the in­ter­view with the Ware­house team.

For us, the top pri­or­ity is pro­duc­tion in an eth­i­cal and com­pli­ant man­ner. We will not place any or­der with a fac­tory that is not safe for peo­ple, as our con­sumers trust us and even if they are not aware, we are highly con­scious about eth­i­cal pro­duc­tion.

TA­NIA

“For many years we were sourc­ing mainly home tex­tiles from In­dia. We now plan to ex­plore cat­e­gories like ba­bies’ wear, in­ner­wear, val­ueadded women’s wear and com­plete home dé­cor from re­gions like Delhi, Ban­ga­lore, Coim­bat­ore, Tirupur and Pa­ni­pat.

Nick Tuck

With an­nual sales of around US$2.98 bil­lion, the com­pany is eye­ing In­dia with a lot of ex­pec­ta­tions and plans to in­crease sourc­ing by 30 per­cent

(L-R) Nick Tuck, EGM - Di­rect Sourc­ing, Ta­nia Benyon, CEO, GSS & Anika Passi, Coun­try Man­ager, The Ware­house

Anika Passi, Coun­try Man­ager, The Ware­house

Nick Tuck, EGM - Di­rect Sourc­ing

Ta­nia Benyon, CEO, GSS

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