Just Group has joined domestic fashion retailers in driving the search for new manufacturing destinations, as price pressures in China continue to challenge the sector.
As reported on www.ragtrader.com.au, the fashion group released a 36-page report detailing significant changes across its Portmans, Peter Alexander, Smiggle, Jay Jays, Jacqui E, Just Jeans and Portmans brands last month. In an exclusive interview with Channel Nine’s Ross Greenwood, supplied in full to Ragtrader, freshly appointed chief executive Mark McInnes revealed further details about changes to its sourcing department.
“We have more of our merchants sourcing in China, Bangladesh, Cambodia and Vietnam, buying the best product at the highest quality at the lowest price,” McInnes said. “There’s plenty of opportunities to get better product, better sourcing, better supply lines and better cost of delivering that product to Australia.
“We’ve appointed seperate product teams for all [seven] brands to ensure we are always first with new product.” The move is part of a broader strategy to combat tough retail conditions through tighter inventory control.
“You have to make sure your inventory is clear as you come out of a winter season into a summer season,” McInnes said. “I think the worst thing you can do is [have] an excess of inventory hangover and we’ve taken action within our group to make sure we’ve cleaned that up by the end of this winter.”
McInnes said sourcing domestic suppliers was not a focus for the group.
“By and large in the retail area, the manufacturing bases are in China or emerging markets, because the wages are lower and you can get better product at lower prices with high volume sourcing.”
For more on the group’s 36-page strategy, head to www.ragtrader.com.au.
Just Group
