Perry Gaellis Case

In Fiscal year 2010, Perry Ellis had over 90% in men sportswear and swim wear with $754 million in total revenue. Perry Ellis finally expanded their women business including Laundry, Rafaella and C&C to 29 percent of PEI’s total retail sales for the Fiscal year 2015 and the total revenues of the whole company is $890 million.
Rafaella is target to women from aged 30 to 55 and an entry-level price point in career and casual styles, the products are classified into three size ranges: Missy, Petite and Plus. The Missy sizes are traditional sized clothing, whereas the Petite are for small sizes and Plus sizes are for larger framed ladies. The Career lines are designed with Core basics, fashion related separates and replenishment items with
Since 1982, they sourced manufacturer from China, Vietnam, Cambodia or even Qatar through their agent in Hong Kong. Rafaella would block booked a bulk volume of fabrics, zippers, linings or belts in running qualities in key colors, such as black, charcoal, navy and brown. The huge ordered commitment could make the best negotiation on prices and constant supplies. The non-exclusive Hong Kong buying office would responsible for sourcing suppliers and manufacturer, coordinated with production process, monitored the workmanship, provided technical support, fitting instruction and quality control to ensure an on-time delivery schedule. The same buying agent in Hong Kong had continued the service contract with Rafaella after acquisition by Cerberbus. In 2008, Rafaella had stopped the service contract with the Hong Kong office but took over the office and employees as their subsidiary in Hong Kong. Rafaella then stopped bulk ordered fabrics and trims to avoid excess inventory. They continued to purchase their garments from factories in China, Vietnam, Indonesia and also in the Middle East. They would source fabric for their manufacturers which remained them with a constant quality supplies and competitive pricing. Since they had used many manufacturer, fabric suppliers and agents for several years, they had established an excellent relationship with them in high quality performance, facilitated an ultimate price control and reliable product supply. The Hong Kong office had a very good quality control on the raw materials and merchandises to meet with customer’s specifications. Fabrics would be inspected upon receipt and prior to production in factories. This rigorous quality control resulted in low return rate on defective merchandise after goods were distributed to end