Ceecee Case Study Analysis
CeeCee Case Study Analysis
School of Business & Humanities
Institute of Technology Blanchardstown
Dublin 15
Bachelor of Business Studies
Strategic Marketing Management
04/03/2011
1. INTIAL OBSERVATIONS
* Fashion Industry * The fashion retail industry has grown rapidly. It is reported in the case study that sales revenue in the European clothing market has increased by almost 20% over the last decade. * There has been substantial price deflation caused by the increasing market share of value retailers and the reduction of production costs as manufacturing is moved to cheaper wage countries such as Asia * Increasingly competitive markets as large grocery supermarket retailers are now offering non food products including clothing. (e.g. Tesco’s F&F fashion line) * Current trend in the industry is the introduction of online shopping
* Innovative Business Model * The company’s business model uses product exclusiveness to encourage recurring customer visits and impulse spending. * CeeCee utilises a fast fashion concept * CeeCee prices its clothes in a competitive way in each of the countries in which it competes, instead of using the cost plus principle. * The company has established a long term working relationship with its suppliers
* Extreme IT Reliance * CeeCee invests heavily in IT systems. * The company uses advanced technology to allow its Just in Time (JIT) fast retail model to work. * The company uses a fully integrated IT system known as CCIPL to manage inventory, productions and logistics. An IT system known as CCF is also used to control and manage company accounts. * All shop managers uses a handheld Personal Digital Assistant (PDA) to review sales data and amend orders, an upgrade which costs the company over €40 million. * The company has also invested over €10 million in the launch of a website which will offer online shopping to its customers.
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School of Business & Humanities
Institute of Technology Blanchardstown
Dublin 15
Bachelor of Business Studies
Strategic Marketing Management
04/03/2011
1. INTIAL OBSERVATIONS
* Fashion Industry * The fashion retail industry has grown rapidly. It is reported in the case study that sales revenue in the European clothing market has increased by almost 20% over the last decade. * There has been substantial price deflation caused by the increasing market share of value retailers and the reduction of production costs as manufacturing is moved to cheaper wage countries such as Asia * Increasingly competitive markets as large grocery supermarket retailers are now offering non food products including clothing. (e.g. Tesco’s F&F fashion line) * Current trend in the industry is the introduction of online shopping
* Innovative Business Model * The company’s business model uses product exclusiveness to encourage recurring customer visits and impulse spending. * CeeCee utilises a fast fashion concept * CeeCee prices its clothes in a competitive way in each of the countries in which it competes, instead of using the cost plus principle. * The company has established a long term working relationship with its suppliers
* Extreme IT Reliance * CeeCee invests heavily in IT systems. * The company uses advanced technology to allow its Just in Time (JIT) fast retail model to work. * The company uses a fully integrated IT system known as CCIPL to manage inventory, productions and logistics. An IT system known as CCF is also used to control and manage company accounts. * All shop managers uses a handheld Personal Digital Assistant (PDA) to review sales data and amend orders, an upgrade which costs the company over €40 million. * The company has also invested over €10 million in the launch of a website which will offer online shopping to its customers.
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