MC : Team 1 by S.K. Samarasinghe

2.1. Why we are not winning

savinikusalka — 2024-03-20 06:23:48 UTC

Lack of verticality (DS)
Lack of duty free (DS)
Lack of strategic partnerships with our supplier base (DS) (DR- Mainly for SL region)
- Building supply chain is the driving force to make SL successful.(DR)
1. How can we build verticality in SL and/or SAARC region to offer duty free to UK/Europe. Have we explored the SL/India FTA to access India market ?( although it has limited quota) Do we know the provisions for swim/activewear?(DR)
2. What are our fabric options for synthetic warp knit, weft knit and synthetic woven in SL and India? How much of work have we done? What is our progress with customers on this front?(DR)
3. Can we have strategic partnerships with mills in SL and/or India to give us capacity? (commercial agreement only OR commercial agreement backed by investment)(DR)
High cost to serve(DS) (DR- Digitalization of CI processes for low cost and accuracy)
- Flexing the fixed costs (DS)
- Option of double shifting the plants (DS)
- Structuring the factories/sections product wise (SL)
Productivity levels not reaching optimum levels(DS) (DR- Drive lean phase 3 with proper focus, not just lip service)
Lack of Investment towards FP and autonomation / New tech (DS) (DR – How can we improve EPH of woven category through automation. There is a whole heap of ready-made automations available with China. MAS Active, MAS Kreeda and MAS MC Build has worked on some. Can we select and implement fast eg. In the next 2 months to impact S3 ?).
Commercializing innovation and newness (DS)
Focus value streams and structure based on strategy defined for where do we play ( Swim , Swim plus etc ) – Currently strategy is not clear (DS)
Lack of beyond Fob solutions (DS) (DR – including R&R models with collaborative investment on RM to shorten LT)
Transform the business mindset from sales oriented to marketing ( Rather than going after what the customer offers , reach out to new markets and opportunities based on market intel and research and study of consumer behavior etc). (DS/BP) (DR – Build people capability and/or attract talent who can ‘negotiate at peer level with customers’)
increase the market share with existing C1 customers (BP)
Manufacturing process to appeal to environmentally conscious consumers. (BP)
Manage a global supply chain and efficiently optimize logistics.(BP)

1.1.1. SWIM - Which is our core

thathsaraniv — 2024-03-20 06:25:23 UTC

What product range / Segments do we play in ?

performance
Lifestyle
Fashion .

For each where in the pyramid do we play – Discount , value , mid market , Premium , affordable luxury , luxury? (DS)
Core /value /high /medium depends on the cost structure we intend to have (VA)
Where Aqua wants to be in 3 years and why that is the target? (VA)

1.1.2 SWIM+

thathsaraniv — 2024-03-20 06:31:38 UTC

1.2.1 What product range / Segments do we play in ? (DS)

leggins
Outdoor
Sports bras
Water shorts / bicycle shorts
Etc
For each where in the pyramid do we play – Discount , value , mid market , Premium , affordable luxury , luxury?
What's the best category split we should look at and should we have the same approach as swim? (ex: core/value/high/medium) (VA)

1.1.3 VN DIRECT BUSINESS (DS)

thathsaraniv — 2024-03-20 06:36:31 UTC

1. Access to the Asian and Australian markets

2. Duty free access to all regions except USA

3. Presence of a Activewear hub out of VN and potential business growth opportunity

1.1 PRODUCT/SEGMENT

thathsaraniv — 2024-03-20 06:51:30 UTC

1.1.1 Swim – Which is our core (DS)

1.1.2 Swim plus – Diversification and seasonality (DS/DR)

1.1.3 VN Direct business – Identified separately as we are targeting different markets / customers with different duty free access from VN (DS)

1.2 Manufacturing and geographical footprint (customer needs) ??? (DS)

thathsaraniv — 2024-03-20 06:55:57 UTC

1.2.1 SL – 40% (DR- Expertise and cost would be the only advantage for SL, but as Linea Aqua, we must become lean to get there!!!. Other clusters have plants at CPH around 5/-) (DS)

1.2.2 Jordan / BD / USA near shore 20% (DS)

i.(DR - Jordan, Kenya and near shore are duty free to USA. Is Kenya an option?.

ii. Do we want to set up near shore? Haiti is struggling.

iii. BD is only due to low cost, despite many other disadvantages. Can we get capacity from Intimates?)

2.2. How do we win? - SWIM (NW)

savinikusalka — 2024-03-20 08:27:04 UTC

Performance
- Competition swim – Should we continue our efforts to win this category as an entry point to Chinese market ?
Life Style
Fashion
Toray - New Chinese Customer

2.3. How Do We Win? - SWIM+

savinikusalka — 2024-03-20 08:31:08 UTC

Legging business – As this is the biggest potion of lifestyle category and a year round business, focusing on this as a separate business unit with lean structure will help to become more price competitive to attract business. ( Onboarding big players in the market) (NW)

1.2.2 Why do we need Swim plus ?

savinikusalka — 2024-03-21 10:41:36 UTC

Swim seasonality ( 6-7 months of the year demand) (DS)
- Disproportionate market sizes between Northern and Southern hemispheres (DR)
Available capability (DS).
Potential growth opportunities for the business with limited Swim opportunities (DS)
- Swim vs athleasure segment growth - Consumer buying patterns swim vs active/athleasure. (SP)
- Product usage and versatility/capsule wardrobe concept. (SP)
- Emerging brands and brand growth rates (SP)
- Country wide market share and growth rates(SP)
- Manufacturing timelines and challenges in swim growth at Aqua (SP)

savinikusalka — 2024-03-21 11:02:53 UTC

1.2.3 VN 40% (DS)

Why do we need VN Direct business?

1. Duty free access to all regions except USA (DS) (DR - UK/Europe, China, ASEAN, Aussie/NZ, Canada, Japan, Korea and India. Mostly based fabric forward except AU/NZ. We have done most of our homework and found sufficient fabric bases in VN and continuing to expand that sourcing effort).

2. Access to the Asian and Australian markets (DS) (DR - not only Asia and Australia, but entire world except USA is also duty free from VN. However, the labor cost is very high and therefore, making cost is higher than SL. However, we should leverage duty benefit with customers to get better FOB for VN region)

3. Presence of a Activewear hub out of VN and potential business growth opportunity (DS) (DR- Need to find a second location in VN with better labor availability)