UNIVERSITY OF ECONOMICS HO CHI MINH CITY International School of Business ------------------------------ SOLUTIONS TO EVALUATE TRAINING PROGRAM FOR SALE DEPARTMENT IN GOLDEN SUMMER FASHION COMPANY MASTER OF BUSINESS ADMINISTRATION Tran Lan Thanh – Mbus 5. Nguyen Thi Nguyet Que Ho Chi Minh City – Year 2017 LUAN VAN CHAT LUONG download : add luanvanchat@agmail.com Contents CHAPTER 1 PROBLEM IDENTIFICATION. Background of problem. Justified Problem existence.
Justified Problem important. 17 CHAPTER 2 ALTERNATIVE ANALYSIS. 27 CHAPTER 3 ACTION PLAN. 29 CHAPTER 4 SUPPORTING INFORMATION.
38 2 LUAN VAN CHAT LUONG download : add luanvanchat@agmail.com CHAPTER 1 PROBLEM IDENTIFICATION 1. Company background Golden Summer Fashion limited company (GSF) is established in 2003, specializes in retail market. Golden Summer Fashion company is the authorized distributor of over 15 brands like bag, shoes in Vietnam market. In 2003, Golden Summer Fashion company brand Furla bag from Italy to Vietnam, this is the first step of this retail company in growing path.
In 2007, GSF took the next step to bring Goex shoes from Italy to Vietnam. 2014 witnessed strong growth of GSF when they opened ShooZ – multiple brand stores with over 13 brands. In present, GSF own 26 stores over Vietnam with 3 brands: Furla, Geox and group brand ShooZ. For each brand, GSF focus on different potential customer.
While Furla bag and Geox shoes aim to customer in class B with price around 10million for bags and 5 million for shoes, ShooZ aim to lower income but trendy customers with price around 1 to 3 million. Name and address: Vietnamese full name: Công ty TNHH Thời Trang Hạ Vàng English name: Golden Summer Fashion Company Address: Website: giaybiettho.vn Staff: around 300 employees GSF has to face with a lot of competitors in retail sector like Hoang Phuc international company, Maison Company, ACFC. As GSF, all retailer in fashion sector in Vietnam do not focus on just one segment of consumers, they diversifies the product line to aim to premium and casual as well. 3 LUAN VAN CHAT LUONG download : add luanvanchat@agmail.com Asia Pacific footwear retail market Vietnam is one of Asia Pacific countries – the attractive retail market, especially footwear retail market.
Dự báo thị trường giày dép thế giới giai đoạn 2011 - 20181 said that total sales world’s footwear industry in 2011 reached $185.211 million, in 2012 reaches $188.360 million and is expected to reach $211. Asia Pacific accounted for the largest proportion and forecast continued standing leadership position in revenue from now to 2018. In terms of geographical regions, Dự báo thị trường giày dép thế giới giai đoạn 2011 - 20182 suggested that Asia Pacific accounted for the largest share on the world footwear market with annual growth rates expected in the period from 2011 to $ 78.360 million and forecast to reach about $90. 4 LUAN VAN CHAT LUONG download : add luanvanchat@agmail.com Vietnam retail market Vietnam is at 11th spot in the Global Retail Development Index (GRDI) ranking from Vietnam Retail Market Ranked 11th by AT Kearney3 and has been among top 30 fastest emerging global retail market since 2008.
Besides that, Vietnam has low market saturation and has highest GDP growth in Southeast Asian countries in the GRDI. GDP growth (annual %)4 from World Bank showed that Vietnam GDP has grown 5.2% annually since 2013 and has reach 1684. 5 LUAN VAN CHAT LUONG download : add luanvanchat@agmail.com VietNam GDP In decade from, vietNam has intersting retail growth with over 3% growth from 2008 to 2013 and more than 6% for the next 5 years. Vietnam retail will become potentail market to invest in this time.
Forecast for Vietnam’s retail sales growth from 2008 to 2018, by volume5 Besides, Ryan6- CEO Nielsen Vietnam said that consumers have ability to self-eliance in purchasing since the explosion of the middle class is increasing strongly in Asia in general and in Vietnam in particular. In 2020, the middle class in Vietnam will triple the current number and reach 33 million people. The family in Vietnam is not much more extended family and the young generations are independently sooner. This trend brings the result that people will purchase for themselves rather than for family as the years ago.
Information above shows that Vietnam is the attractive retails market with rising consumer demand in retail, especially in footwear market. Vietnam GDP has been rising gradually in this decade and this country is in top 30 fastest emerging global retail market since 6 LUAN VAN CHAT LUONG download : add luanvanchat@agmail. With favorable external conditions, GSF has great chance in retail market and in particularly in footwear market. The changes in Vietnam family structure and customer behavior will brings the result that the young generation will have more chance to make decision by themselves more.
Therefore, ShooZ – multiple brand of GSF will have more favorable conditions since ShooZ focus on young and native generation. Vietnam seem to be fertile land for retail sectors. However, it brings to GSF both opportunities and threats. Opportunities GSF- one of fashion retail companies in Vietnam – potential market has a lot of opportunities.
First of all, Vietnam market attract a lot of department store operator as Parkson, Aeon Mall, Vincom, Lotte, Takashimaya.They open many ranges shopping central from South to North of Vietnam and provide space for many brands in general and fashion brands in particular. GFS do not meet too much challenges to find the location to open new store with reasonable cost. Because of having many stores as food and beverage, fashion, coffee shop, entertainment space, shopping center always have their own traffic. Revenue in shopping centre, GSF has advantage to driving customers to their stores.
Secondly, from information above Vietnam become potential market for retail with increasing in middle class customers. Through forecast of retail sale, GSF has good chance in this sector with retail sale volume growth increase every year. Threats Vietnam market open good chance for GFS and brings threats also. Potential market for retailer attracts a lot of investors who are competitors of GSF.
If Vietnam market brings favorable to GSF, it also share this chance for all members in this sectors. 7 LUAN VAN CHAT LUONG download : add luanvanchat@agmail.com Competitors Retail market in Vietnam has great growth number and is rising every year. There are a lot of investors join in this market to share. One of competitor of GSF could be mentioned is Hoang Phuc International Company.
Hoang Phuc has reputation as distributors of a lot of international brand which aim to young people as ShooZ. With the same potential customers Hoang Phuc is the direct competitor of ShooZ – multi brands stores of GSF. Compare to ShooZ, Hoang Phúc has established for longer time and has reputation in fashion for youth in Vietnam. Hoang Phuc distributes a lot of famous international brands as Skechers, Kappa, Dr.
Hoang Phuc become well-known brand name in youth who are trendy and fashionable. ShooZ also has their own strength in this fight. If Hoang Phuc distributes brands with famous with cool design ShooZ bring to Vietnam fashionable brand with special technology. For example, light weight technology or supporting for feet brands… GSF in general and ShooZ in particular have good opportunities in potential market for retails market as Vietnam, they also have to face with a lot of threats from competitors.
Background of problem Problem Symptoms Golden Summer Fashion company has developed rapidly, especially when they decided to open multi brand ShooZ. In more than one year, from the end of 2014, ShooZ has 18 stores in Vietnam and will has 22 stores in the end of 2015. With over 12brands aim to youth Vietnamese people who love fashion and trendy clothes but do not have too much choice in authentic affordable shoes. Beside Geox and Furla, two big brands in the world and became Vietnam for a long time, ShooZ seem to be a young men in this sector.
Although ShooZ has great development, it cannot 8 LUAN VAN CHAT LUONG download : add luanvanchat@agmail.com reach the target of sale revenue. In 2015, ShooZ witnessed increase of sale through but this was not steady growth. ShooZ never can reach 100% the expected sale through number. Sell through number of some brands in ShooZ has fluctuated.
100 90 80 70 60 50 40 30 20 10 0 Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Target of ShooZ from January 2015 to May 2016 Potential problem We have to 2 interviews with Assistant of CEO and Operation Manager of ShooZ. Assistant of CEO- Hoàng Thị Tình worked for this company around 8 years and she used to be a Human Resource Senior for a long time in Golden Summer Fashion Company. Because of her responsibility and workload, she can know clearly about symptoms and cause in HaVang. The reason Operation Manager of ShooZ – Nguyen Ngoc Huong become the 2nd respondent cause she is the sale manager of ShooZ brand and know all difficulties in this brand.
This thesis will explore on sale department and more specific is in ShooZ brand therefore, they are the best respondents for 2 first interview. After interview both of them, there are some common points between. There are many reason which makes ShooZ brand cannot reach the target. The first reason is all brands under ShooZ are still new in Viet Nam market.
As the first time come into Viet Nam, these brands need time to educate customers about the unique of these brand. Compare to HoangPhuc multiband 9 LUAN VAN CHAT LUONG download : add luanvanchat@agmail.com stores, ShooZ is the new comers and have to face with a lot challenge. The second reason that people cannot realize which brands will be under ShooZ multi brand stores. One of the most important reason can be mention that the sale staff do not understand what they are selling.
That is the reason why some products have fluctuated sell through number. Lack of adequate information about brand what makes the product in ShooZ become unique compare to another product, sale staff is not equipped enough to know and to provide information to customer. ShooZ always has new staff in sale department. However, this turnover rate in ShooZ is not high compare to retail segment.
Both of them do not think problem become target is too high to reach. As the operation manager said all of target of fashion retail in Vietnam is based on traffic of central mall, operation cost… Besides that, when they have new stores the target is always low to encourage staff. The interview from Assistant of CEO showed that training process in company has some problem inside. General in Geox, Furla and ShooZ in particular, there are no official material to show to new staff and updated for the old one.
Especially, ShooZ which has a lot of brands under, training seem too important to staff to provide to customers what they are selling. In fashion segment, concept, key messages and product will change quickly at least 2 times for one year, it required people working in update new knowledge every season. GSF do not has official training material for staff and seasonal training as well. According to Assistant of CEO, training process in GSF do not has clearly timeline, it seem to be an arbitrary training program.
There no right process for training program. There are no evaluation for input and output therefore the training team cannot collect the result of training. The method of training is still not suitable and there no clearly about coaching and training. For more details, if manager visit shop and recognize any mistake, urgent training will be organized without evaluate if this is individual mistake.
Assistant of CEO believes in that one people cannot reflect all a team.