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Thumbnail image for product with reference number 622-0018-1
Originally published in: 2022
Length: 7 pages
Data source: Generalised experience

Abstract

This is part of a case series. Karthikeyan Murthy, the founder of the HiEnd Fashion company, is contemplating designing innovative supply contracts with his fashion apparel retailers. By being products with a short life cycle, the fashion apparel posed a significant risk of overstocking for the retailers forcing them to limit their order quantities to HiEnd. Karthikeyan believed that by introducing buyback or revenue sharing contracts, he would be able to share their risk and, in turn, encourage them to place higher order quantities resulting in higher profits for him and the retailers. The design parameters of both contracts will determine whether the contracts would be successful or not.

Teaching and learning

This item is suitable for postgraduate and executive education courses.

Time period

The events covered by this case took place in 2021.

Geographical setting

Region:
Asia
Country:
India
Location:
Tamil Nadu

Featured company

HiEnd Fashion
Employees:
201-500
Type:
Self-owned
Industry:
Textile
Other keywords:
Fashion; Regular wear; Premium

Featured protagonist

  • Karthikeyan Murthy (male), Founder

About

Abstract

This is part of a case series. Karthikeyan Murthy, the founder of the HiEnd Fashion company, is contemplating designing innovative supply contracts with his fashion apparel retailers. By being products with a short life cycle, the fashion apparel posed a significant risk of overstocking for the retailers forcing them to limit their order quantities to HiEnd. Karthikeyan believed that by introducing buyback or revenue sharing contracts, he would be able to share their risk and, in turn, encourage them to place higher order quantities resulting in higher profits for him and the retailers. The design parameters of both contracts will determine whether the contracts would be successful or not.

Teaching and learning

This item is suitable for postgraduate and executive education courses.

Settings

Time period

The events covered by this case took place in 2021.

Geographical setting

Region:
Asia
Country:
India
Location:
Tamil Nadu

Featured company

HiEnd Fashion
Employees:
201-500
Type:
Self-owned
Industry:
Textile
Other keywords:
Fashion; Regular wear; Premium

Featured protagonist

  • Karthikeyan Murthy (male), Founder

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