Wednesday, 19 March 2014

KCQ (Veeko)



I have start with this question. "What is KCQ?". I was confused.
Then I look through the assessment guide. KCQs are what you see as striking, interesting, confusing,
challenging or important to you.

I  had a look through my company annual report in 2013. I found that 31st march, 2013,
the company recorded a turnover HK$1,408,624,000 (2012: HK$1,279,537,000), presenting an increase of 10.1% .

Looking at the cosmetics business in 2013. The amount of turnover was HK$832,798,000
 (2012: HK$687,410,000), presenting an increase of 21.2%. Then I looked at the fashion business,
 in 2013 the amount of turnover was HK$575,826,000 (2012: HK$592,127,00), which presented a decrease of 2.8%.
According to that, the cosmetics business had make profit but the fashion business had lose profit.

My question is "Why the fashion business had lose its profit?"
In 2013, the gross profit margin of fashion business decreased from 67.5% of last year to 64.6%,
presenting 2.9% decreased.
The reasons are:

  • the rise in wages of the production workforce
  • competition 
  • high production cost
  • the group strengthened its effort on promotion
  • provided customers the discounts
I think the company will need to review and continue develop with practical strategies in the future.




Link to Annual report:
http://www.irasia.com/listco/hk/veeko/annual/index.htm



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8 comments:

  1. Anna19 March 2014 at 21:21

    Hi Arunrot,
    I was reading why your company had loss of 2.9% and I read the reasons why...maybe another missed reason is the use of technology...these days there's so much merchandise being sold on eBay, Amazon and other sites...so perhaps the company needs to have as part of their strategy plan is to keep up with the latest selling technology trends.

    In my opinion, a company can do as many sales as they want but if they don't keep up with the modern trend of the business world, they will lose out so I think they could conduct research into the trend. In this age, globalization with technology is so huge and it's diffusion is outstanding.

    By the way, love your theme background of your company, I think it's groovy!

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    Replies
    1. Unknown21 March 2014 at 02:11

      Thank you for your comment ;))
      yes, i am agreed with you that another reason would be Technology. I found that the products on ebay are cheaper then in the retail shop. It is also more convince for the customers to shop online.

      My idea is maybe the company should crate the online shopping web-site!!!

      Delete
  2. Jenna 20 March 2014 at 20:08

    I agree with Anna! Business - especially in the retail market need to be able to evolve with the trends of shopping online and what customers are doing these days. I recently watched something where alot of well known high end fashion designers were in debt. This i believe is because they like to have there clothing in high end fashion department stores and unfortunatley alot of people don't shop in department stores like David Jones anymore. People prefer to shop online or at BigW where prices are cheaper. :)

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    Replies
    1. Unknown21 March 2014 at 02:49

      Thank you Jenna
      i think shopping online is a great idea because the company can expand to the worldwide.

      Delete
    2. Anna25 March 2014 at 15:10

      Hi Arunrot,
      Thanks for replying to my comment.

      Hi Jenna,
      Yeah, I agree with you too, I have seen Myer selling exact brands that is sold in Target and Big W, but for a higher price and I was wondering why?! I then discovered from my mum-in-law who is a teacher but she took a break from teaching afew years back and worked in Myer, she was telling me how Myer really looks after it's staff with continuous training and their prices are high so that their trained employees get their just wages....she's back into teaching now.

      This made me realise that maybe it's time we customers not demand sales all the time since employees who are highly skilled don't get their just wages and in the end...Australian businesses close because of the cheaper international market!

      Which also made me think that the poor businesses are caught between a hard place and a rock!

      I wouldn't like it if I was denied my just wages...I'm sure no one will....maybe businesses can probably create a culture via advertising about something like....'don't deny your fellow Australians their just wages, shop for quality just price products'. (Something like that) advertising something like this on television would be more effective I reckon. Last thing we need here in Australia is for more Australian companies to close down and re locate their bases overseas. Just hearing the news about Ford closing in Victoria, Target in Geelong, and now Qantas...apart from other smaller companies that has already closed...leading to unemployment is astonishing.

      Delete
  3. Unknown21 March 2014 at 20:45

    I can understand what Anna and Jenna's point. But actully that is ur kind of group people's opinion and choose. i also can find there are huge number of consumers go to the big shopping center do their purchasing. Because what? lots of reason like the fashion goods quality they can touch, or they are enjoy the atmosphere when they shopping in the shopping center.
    So what's my opinion is the turnover decreasing should by variety reasons. It could be new fashion trend, technology or something else, but we need the marketing research to find out the ture result based on ur specific firm.
    :)

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    Replies
    1. Anna25 March 2014 at 15:26

      Hi Le,
      Thanks for your reply, however, what do you mean by 'ur kind of group people's opinion and choose.'? This sentence sounds discriminating since ''we'' are female!? (correct me if I'm wrong)

      My comment is solely based on observation from reading that is all. And I am aware of the various reasons why customers shop in different retail companies, there's alot of shops that do try their best to attract and to retain their customers. I like Target because of their classy formal clothes and variety of shoes, I like Myer because of variety and quality value of women's bags and range of perfume. Apart from the reasons you suggested some customers buy certain products because its a favourite, some shop solely of egos sake, while others shop because it's cheap and that is all they can afford.

      Delete
  4. Unknown22 March 2014 at 04:54

    from what i read on your company i am agree with Anna Towan because you company had loss the profit 2.9% which is not a good sign for your company.i think youe company have to do more marketing research and produces something new. also advertising is very important too.also now a day so many ways to shop u should try to sell online not just in departstore as you know now a day people so lazy to go out to check they are just browsing online. anyway this is just my opinion hope its very helpfull for u
    Good luck
    Willy

    ReplyDelete

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