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What We Do
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Contributing to Business Innovation and Value Enhancement for Diverse Clients

Looxent provides clients with practical and implementable solutions, driving fundamental change that leads to significant improvements in business value. Through this approach, Looxent positions itself as the most trusted partner for clients, consistently proving its reliability and commitment.

Retail & WholesaleOptimizing Value in the Apparel Retail Business


The apparel retail industry requires a comprehensive blend of capabilities, including brand management, design proficiency, omnichannel distribution, accurate demand forecasting, and a robust sourcing base. While a trending brand can temporarily mask operational inefficiencies, a decline in sales can rapidly expose underlying issues, creating a challenging recovery environment. Incremental improvements in operational capabilities and management systems are essential but often hampered by the industry’s inherent challenges, such as seasonal product launches and extensive store networks.

Our client, a domestic success story, had previously achieved notable growth in China but faced deteriorating performance in the region. Looxent partnered with the client to identify the root causes of underperformance, analyze competitor strategies, and implement key initiatives to drive turnaround and sustainable growth.

The Dual Focus: Online Expansion and Offline Store Management

Retail success hinges on effective management of both online platforms and physical stores. While online channels are increasingly vital and warrant continued investment, offline store operations remain critical for maintaining brand presence.

Looxent conducted in-depth analyses, including brand- and store-specific SSSG (Same Store Sales Growth) and contribution margin performance. Benchmarking competitor practices and evaluating internal processes revealed gaps in store performance management and SSSG optimization. We designed a structured approach to address these issues.

In China’s vast and geographically dispersed market, store opening and closure processes were inadequately monitored. To resolve this, we established a centralized system at headquarters to monitor store profitability and evaluate closure candidates. For store openings, we incorporated performance trends from nearby and competitor stores into approval workflows.

To identify the root causes of declining sales, Looxent surveyed store managers across all brands, focusing on product assortment, pricing, display, promotions, and salesforce capabilities. The findings highlighted the need for adjustments in basic style mix, pricing strategies, staff incentive programs, and CRM systems. Specifically, we redefined VIP customer segmentation using RFM (Recency, Frequency, Monetary) analysis and implemented best practices from competitor promotions to enhance customer engagement.

Comprehensive Cost Analysis and Savings Realization

Beyond material costs, significant expenses in retail include rent, advertising, depreciation, packaging, and labor. Each category was analyzed in detail to identify cost-saving opportunities.

  • Rent Management: Lease agreements, often long-term, were systematically reviewed. We established a proactive lease management process to anticipate expirations, evaluate renegotiation opportunities, and develop negotiation strategies.
  • Advertising Optimization: A standardized quotation format was introduced to enable integrated purchasing across brands and simplify cost comparisons.
  • Depreciation: Store interiors and fixtures were analyzed by location and classified by economic efficiency, with scalable interior design options identified for cost reduction.
  • Packaging Costs: Specifications were adjusted based on competitive benchmarking, and the potential for outsourcing to specialized MRO (Maintenance, Repair, and Operations) providers was assessed.

Key Outcomes and Strategic Advancements

Looxent executed several initiatives, including store opening and closure management, store performance optimization, and reductions in packaging and depreciation costs. These efforts resulted in double-digit cost savings across expense categories and established robust management systems tailored to the client’s needs.

Operating in a vast market like China with limited IT infrastructure and human resources, the client has now redefined its core retail management processes and achieved significant cost efficiencies. By integrating customer and store manager feedback into product planning, implementing systematic management processes, and optimizing cost structures, the client is poised for stable and sustainable sales growth.



LOOXENT

A  21F. Parc.1 Tower2, 108, Yeoui-daero, Yeongdeungpo-gu, Seoul, Korea 07335

T  02-546-8222      F  02-546-8226      E  service@looxent.com 

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© 2024 LOOXENT. ALL RIGHTS RESERVED.


LOOXENT

A  21F. Parc.1 Tower2, 108, Yeoui-daero, Yeongdeungpo-gu, Seoul, Korea 07335

T  02-546-8222      F  02-546-8226

E  service@looxent.com 

© 2024 LOOXENT. ALL RIGHTS RESERVED.