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Zhejiang Semir Garment Co Ltd Case Solution

Solution Id Length Case Author Case Publisher
1445 414 Words (2 Pages) F. Warren McFarlan, Jie Jiao, Yuren Fang Tsinghua University : TU0039
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The clothing brand Semir mostly targets the younger age bracket and focuses on casual wear. Semir is known as one of the best brands in China and is thus renowned for its affordability. The brand now owns at least 3,000 stores in China (Gentlemen in China, 2016). In the case, the company had started facing high operating costs due to a rise in the price of land, labour, suppliers and raw materials. Also, Semir was facing extreme competition from its competitors as the textile or garment industry was thriving. Semir had outsourced its production and logistics to third-party vendors.

Following questions are answered in this case study solution

  1. What should be the strategy of Semir for assuring the growth? Write an executive note.

Case Analysis for Zhejiang Semir Garment Co Ltd Case Solution

The strategy used by Semir was either to increase their sales price or improve profitability by enhancing the integration of their supply chain along with a hike in the brand image. As Semir is more into designing the product themselves, they must be updated about the trends in fashion and never miss a chance. Semir also needs to focus on online stores to reduce any labor costs as well as the cost of suppliers. Alongside, it also helps the brand to grow rapidly. It must also target more of the adult age group rather than children as that industry is shrinking in size and the niche is not profitable enough.

Also, Semir should base its factories or production units close to the markets where its franchises are located to reduce the logistics cost. It must keep its inventories low and perform a just in time function not according to seasonality but change its designs on display twice a week on average. This strategy will help the consumer search for products and come to the store more often as the designs will be exclusive and people will think of them as being scarce. It must increase its chain stores with the help of information systems and focus on second and third-tier cities.

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