1) Inventory Clearance

Process has been identified where every 2 weeks inventory from stores and dc will be look at
as a whole and in the sales meeting marketing, sales and supply chain will look at high stock
level shoes and recommend actions to be taken (to be approved by Prajna). Currently process
of collating data is manual but we have gotten IT to work on a report where the data can be
collected from the system. Amrit will run this process for the first few times and will hand
over to supply chain once the process is regularly running.
First set of initiatives has been defined and approved by Prajna and are underway these are:

S/N PROGRAM FTW APPAREL

1 Fast moving running pairs such as ark, stingray and decra 3 (previous seasons) we have
excess stock 12-16K so to move them quicker we will offer extra margin (5-10)% if they buy
in volume over the next few months. We will aim to get 30% of these sales in cash
(aggressive) 28000
WS Slow moving (other category 2013) stock fustal soccer basketball. We will offer similar
program as above with extra discount after cash. We will evaluate this program after a
2 month to see the success and decide whether to fine tune this program. 15200
WS very slow 2012 soccer and futsal like giori flakes etc offfer to cash buyers at 70%
discount. We have Jane also looking at trying to selll these to export buyers (target price
USD 6) and Henny looking at stock lot buyers with target price of 80-90K as well. We will
see what we can generate by end of the month. If not we will offer to WS buyers at the
3 70% discount for cash 12500
Cusotmized have offered and closed approx 6000 pairs of the olders season running pairs
4 to instansi buyers (confirmed for Sept) 6000
Offered carrefourhigh stock items of soccer and futsal (old seasons and slow moving) at a
5 120-140 K price. Still awiaitng their feedback 10000
Markdown slow moving high stock MM / Retail from previous seasons. Markdowns are
about the 15-30% range. Signage for little sales corners to be made in modern market
6 stors 53500
MM bazaars being organized for the next few month 3 confirmed and a few more in
7 discussions
Retail Bazaars being organized for the next few monhts 4 have been confirmed and
8 another 2 are under negotiation
MM 2013 slow moving apparel straight disount of 20% across all modern market. We will
9 monitor the sell thru after a month and see if there has been a succces 20,000
Try and sell old seasons (2013 and below) slow moving apparel in DC to stock lot buyers
10 (still waiting for approval) 25,000
Total 125200 45,000

OTHER PROGRAMS we are looking into to

1 ABOUT 1.5 2013 and before apparel in DC. Will pass to henny to try and sell to stock buyers
SLOW MOVING 2013 WS stock (BB, FUTSAL, SOCCER) and running will be given access to
2 customized to sell
3 WS old lifestyle and sandals to be sold either by henny or retail bazaar
4 Customized given more access to execess fast moving running stock from previous seasons
2) Bags
Line plan
We have looked at the market and talked to a few stores to see what are the most popular
selling bag categories and have decided to focus on 7 types of categories. These are :
1) Backpacks (including foldable back packs)
2) Shoe bags
3) Messenger Bags
4) Gym Bags
5) Duffle Bags
6) Shopper Bags
Here are some examples of what we have collected.
BAGS CATEGORY IMAGE BRAND PRICE CRP REMARKS

Manhattan Style very popular for hipster boy in Jakarta mostly

1,399,000
Portage for commuting

Interesting point on the opening design. A

Converse 299,000
messenger bag doesn't always have to be flap.

MESSENGER BAG
Good usage of compartments (1 for latop,1 for
Case Logic 1,250,000
phone and other accessories etc)

Fast moving due to the fabric which are mostly

Lee Cooper 599,000 denim and canvas. They provide sling bag in
standard styling, with two straps.

The best seller item from Reebok, available in 3

GYM BAG Reebok 399,000 colors. For unisex, buyer prefer all-blue combo. It's
water resistant

It has reflective logo, though it's small. Compare to duffl e

bag in H&M, it's cheaper but nicer in detail. They use PU
DUFFLE BAG Forever 21 319,000
as tassel and strap holder that make it looks elegant for
women
 A wash kit bag in more feminine design. Basically it's just
Forever 21 219,000 covered with cotton and transparant plastic. We can
make a better version in cheaper price

TOILETRIES BAG

More unisex design, it has dettachable mirror.

Sea to
389,000 Made of Cordura fabric and probably this is water
Summit
resistant.

Built with laptop and some other compartments, this bag

Reebok 599,000 is water resistant. From the style and function point of
view, it's more to casual performance backpack

BACKPACK

Under the same roof as Eiger, Bodypack is a local brand.

Their price is affordable with excellent quality. Detailed
Bodypack 610,000 457,500
compartments are built it, for laptop, documents, pen,
phone,etc.

A very simple design that can be remake by us. It's

H&M 349,000 just a jersey bag with PU binding and strap. But
most girl buy this bag

SHOPPER BAG

A very simple form of tote bag/shopper bag. But a

Pull n Bear 299,000 graphic/print will give higher value. Must be very
cheap in production, this style is easier to sell

Must have for travellers or backpackers. Made of

FOLDABLE Sea to
399,000 lightweight material Cordura, waterproof with roll top
BACKPACK Summit
closure and fully tape sealed construction.

Modern design with holed decotape for

SHOEBAG Nike 175,000 ventilation rather than using mesh. Make it look
more stylish with graphic print on it.

We have been to several stores / brands to find the best selling types and bought samples.
These have been given to the design team who are currently designing a line plan to collect
combine the best of the features.
On the factory side, Meiyana and Ms Lian are trying to find out what are the machines needed
to work
S/N Action PIC Date
1 Team to come up with initial line plan Product 19/9/2014
2 Come up with initial requirements for Meiyana and Ms Lian 19/9/2014
requirements of machinery and labor
productivity
3 Interviewed some bag designer candidates. Vicca and Amrit On going
Have one good potential willing to come on
board, need to decide direction and timing
Next steps
1 Look at what we would need to set up factory Amrit, Meiyana (with
input from Dame)
2 Work out costing of material for proposed Meiyana
lineplan and estimate high level labor costs
3 Work out points of distribution (where do we Amrit
sell) and compare to production and factory
set up costs
4 Build business plan Amrit

3) Apparel
We analyzed the current organizational structure to see what were the weaknesses and
people gaps required to take the business to the next level. We found the following gaps need
to be filled
1) Apparel creative director – someone who can decide the line direction, inspire
designers and help build more commercially viable and defined apparel.
Additionally this person has to have some exposure on the factory side to be able to
be clear about the manufacturing limitations (if any) and ensure that whatever is
designed needs to be easily commercialized.
2) Head designer – Need a more senior designer (like Gagas for footwear) to be able to
take the designs to the next level especially in terms of fitting and size grading
3) Factory director – Need a person to handle the commercial side of the factory to
improve productivity, processes, day to day management and run the factory like a
stand alone business unit (ie without needing funding and a positive pnl)
4) Head of development / Fitting and Grading – this person needs to work on putting
together pieces of development and especially work on the fitting and size grading
on the factory side
5) Procurement – need a dedicated procurement person (currently handled) by Lia to
ensure that best prices are gotten from suppliers as well as material arriving of good
quality and on time
Proposed org structure for BERCA apparel

Proposed org strcture for HSC

Line plan and direction
In order to define a direction, line structure and unique characteristics of our line product and
marketing have to work together.
S/N Task Date PIC
1 Marketing to do some focus groups with The next month Nick
customers to see what is that our target
customers really want out of apparel
1 Identify 3-5 target aspirational brands will In process (to be Vicca / Amrit /
study line structures to see how applicable futher refined with Meiyana / Nick
they are to our business and Indonesia Marketing)
Look at key customer groups (what do they
do in sports mode non sports mode)
Performance
Addidas
Reebok
VPL
Cassal
Nike
Lulu Lemon
Rapha
Lifestyle
Converse
Cotton on
Cotton Inc
Uniqlo
Colorbox
3 second
GAP
2 Investigate lines structured further and Mid October Vicca / Amrit (Input
narrow down to 1 brand for performance from marketing and
and lifestyle and build a line structure sales
3 Build merchandising plan with targeted cost End October Vicca
structure, prices and volumes
4 Source for fabrics to complement lineplan Ongoing Devi
5 Go out into market look at 10-15 brands End October Vicca + Designers
looks for unique characteristics e.g. bar
tagging, hidden zippers, inner stitching,
contrast stitching find 5-10 characteristics
you want to incorporate into your line for
the next few seasons
6 Define combination of characteristics you November 15th Amrit / Vicca / input
want to use and keep a few for each season, from sales channels
For performance identify technologies and marketing
7 Design FW15
Other actions required
S/N Action PIC Date
1 Start recruiting for positions that need to be Amrit
filled
2 Design FW15 with more consumer input from Amrit, Vicca, Meiyana
marketing as well as a more defined direction
and line plan structure
3 Start figuring out other points of distribution to Amrit + sales channels
take on a more full and complete apparel line
plan

4) Accessories
No work has been done on this to date. Channels, Product and Marketing need to sit
together and figure out what other accessories are required and then source either from other
brands to fill out retail stores or design and outsource manufacturing. Plan to have this
meeting sometime in the end of September

5) League and Nike promotion to OpCo’s

First week of October there is a meeting of all OPCO hr managers. BRG has been given a
chance to present at this meeting and will announce the following programs to all OPCO
companies
1) Special offers on old (2013 and before) stock which we need to clear
2) New her shoes such as Volans 2, Kumo, Zip Run and Ultra-grip
3) Nike promotion of 15% off at BRG stores for all CCM employees
6) LEGAS
Estimated
No Category Main Material Sample Prices Factory Brand Images Design Comment
FOB
Syn. Semi PU Backing Non woven 214,900 (Conservative & out of date design, very poor
Single Mesh (standard Mesh) finishing & detail, commercial color combination, bad
shape).
Linnning - Merry Mesh
214,900 & Mojokerto -
1 Running 2nd process Printing Emboss + MICA Emboss
Rp 69,307 Eagle 254,900 (Quite update design, color combination, midsole
254,900 Jawa Timur
color w/ quite a lot application in detail but still poor in
Bottom : IP + Rubbersole (Solid Black - Coumpound
finishing and carftsmanship quality, not bad shape )
Scrape /Recycle rubber)

PVC Syn Backing Polytisi All designes below 199,900 are cheaper looks & out of date
Single Mesh (standard Mesh) design w/ very poor quality and finishing but quite a lot of
169,900;179,90 Eagle, detail and application,
Linnning - Merry Mesh Mojokerto -
2 Running 0;185,900;189,9 Rp 60,182 Spotec,
2nd process Printing Emboss + MICA Emboss
Jawa Timur
00;199,900 Power
Power with 199,9000 is quite nice and good looking shoe
Bottom : Midsole Die Cut EVA + Rubbersole (Solid -
for that price
Coumpound Scrape/Recycle rubber)

PVC Syn Backing Polytisi / Meriskin PVC PU 1.0 MM 249,000-269,000 (designs are basic lifestyle, some of them
Precise, quite good looking w/ nicer material usage such as
12/10/6 Oz Canvas / Cotton Twill-Drill 249,900;
Tomkins, syhntetic w/ leather feel but quality finishing, shape are
Suede Leather (Bad Quality) 259,900; Bekasi/ poor)
Homyped
3 Life Style 269,900; Bandung Rp 69,307
Linnning - Merry Mesh , Piero, 295,000 & 299,900 (nice looking design with good
295,000; Jawa Barat
2nd process : Woven Label + Printing Emboss
North combination material & color, good detail and finishing but
299,800
Star somehow the shape isn't good looking yet. Especially for
Bottom : IP + Rubbersole Or TPR Outsole Piero has good quality)
150,000-179,000 (not bad looking designs and some of
6/10 Oz Canvas - Drill-Cotton - Denim Mesh them has good design, but they copying the design from
Semi PU (PVC - Non Woven Backing ) 150,000; another brand, poor quality, shape and detail. Except
North Nortstar Slip On shoe is nicer looking, material combo and
Linnning - 6 Oz Canvas - Drill/Cotton Mesh 179,900; Import -
4 Life Style Star / finishing)
189,900; China
2nd process : Woven Label + simple Emboss+Printing Power
199,900 189,900-199,900 (not bad designs but looks cheap in
Bottom : TPR outsole - CMP quality, shape and finishing)