The Strategic Position of NEXT Plc
The factor’s discount incorporates a credit risk premium (based on the likelihood of collecting the receivable), administrative fees, commissions, and interest charges. (Kumar, 2006)
Typically, apparel firms enter factoring arrangements because alternative (and cheaper) sources of credit aren’t available. Without factoring, these vendors would not have the cash to operate fully and thus would be unable to deliver goods in sufficient quantities to the retailers. The result, retailers would face meaningful stock-outs, which would have a negative impact on revenues in an already weak environment.
Competitive Strategy Analysis
NEXT has one of the most successful private-label businesses among its peers. While NEXT launched several fashion apparel brands in 2004 and 2005, poor customer response has led to a focus on more basic apparel styles since 2006. The company’s private-label apparel collections include Apostrophe, Canyon River Blues, Classic Elements, Covington, Structure (a brand acquired from Limited Brands Inc. in September 2003), and Lands’ End. Even NEXT and its US partner Sears are leveraging fashion to reach new customers. In 2010, Sears launched a new brand targeting younger customers called Lands’ End Canvas, which is available online and in 24 Lands’ End Canvas shops within Sears’ stores.
接下来有一个在同行中最成功的私人标签的企业。而在2004和2005推出了几款时尚服饰品牌，客户反应不佳，导致在更基本的服装款式的焦点从2006。公司的自有品牌服装藏品包括撇号，河峡谷蓝调，经典的元素，科文顿，结构（从Limited Brands Inc.在九月得到2003个品牌），和土地结束。甚至下一个和它的美国伙伴西尔斯利用时尚达到新的客户。2010，西尔斯公司推出一个新品牌，针对年轻客户称为土地结束画布，这是可在网上和24土地结束画布的商店在西尔斯商店。