Sean Coxall President of Supply Chain Solutions, Branded Business
Digitalization Update
Sean Coxall 2
LF Digital Platform
Better Entry Point for Partners
Materials
Design Production
Vendor Platform
Materials Platform
Easier Materials Sourcing
Work “Closer to Needlepoint”
Production Platform
3D Design Platform
Quicker Design Iterations
Sean Coxall 3
Better Entry Point for Partners
Materials
Design Production
Vendor Platform
Materials Platform
Easier Materials Sourcing
Work “Closer to Needlepoint”
Production Platform
3D Design Platform
Quicker Design Iterations
Sean Coxall 4
Materials Marketplace
Sean Coxall 5
Materials Marketplace
An online materials portal that allows merchandisers and
vendors to search for innovative new fabrics
Fully curated collections
Detailed specifications enable right quality to be chosen, and
time saving on inquiry
Each mill has an individual showroom to curate and present new
collections, with comprehensive mill profiles showcasing
production capabilities
Sean Coxall 6
Materials Marketplace
Pilot Launch Marketplace
Pilot Startedo Fabrico Trendso Searcho Collections
4X suppliers7.5X itemso Fabric & Trimso Trendso Advance searcho Private collectionso 3D ready fabric
13X suppliers25X itemso Buy & sello Consolidateo Track & analyze
Mar 2018Internal process tests
LIVE
Oct 2018Go live with external business partners
Apr 2019On-line transactionsBuy & sell materials
Sean Coxall 7
“Materials marketplace enables seamless, reliable, and curated collaboration”
2 3From ANALOG To DIGITAL
Weeks Hours
• Converting physical to digital assets and increasing costing benchmark robustness
• Deepen relationships with mills and trim suppliers• Facilitate more efficient collaboration between
customers, vendors, and LF
The global fabric export market is worth more than $280bn, $7bn of which is sourced through LF…the opportunities for a digital fabric marketplace in Asia is about $157bn (Asia is ~55% of global market)
Materials Platform
Sean Coxall 8
Better Entry Point for Partners
Materials
Design Production
Vendor Platform
Materials Platform
Easier Materials Sourcing
Work “Closer to Needlepoint”
Production Platform
3D Design Platform
Quicker Design Iterations
Sean Coxall 9
Digital Design Centre of Excellence
Digital Design Centre of
Excellence (CoE)
• Aggregate 3D design tools
• Aggregate 3D design expertise
• Technology and geography agnostic
• Standardised processes, ability to scale
• Estimated 50% reduction in sample effort and costs
Sean Coxall 10
Team Formed
1.5X
3.5X
5X
3D Team Evolution
Sep 2017
Jan 2018
Mar 2018
Dec 2018
Sean Coxall 11
Simplifying the process for supply chain partnersAn
alog
Dig
ital
Design Concept
Proto Sample 1
Proto Sample 2
Salesman Sample
Fitting Sample 1
Fitting Sample 2
Size Set Sample
Pre-Production Sample
Bulk Approval
Like?
Style Drop
Right First Time Physical Sample
Style Change Iterations
Bulk Approval
Design Concept
Like?
=
Yes Yes
No No
Sean Coxall 12
3D Virtual Design
10X 40X 4X 3XResulting in operational improvements of digital product development time savings
More customers
Increase in total number of styles
Faster in 3D design hours
Increase in weekly output per designer
Sean Coxall 13
Key Tool: Exclusive Digital PlatformExclusive digital interface to host a single source of truth Review new inspiration and access a digital archive
1W3146 1W3262 1W3315 1W3560
SIMONS
Select from a library of styles and fabrics curated based on market trends and customer brand identities
Easily export developments and past libraries to excel or PDF format for reporting and analysis
Sean Coxall 14
Virtual Visual Merchandising
“Digital stores” allow customers to see the range “on the shelves”
Sean Coxall 15
Multi-Category Brand
• Multi-category brand with US$5bn+ Revenue
• Brand new customer – able to “get in the door” by providing pure digital services for all categories and brand lines
• Resolved customer pain point of trying to build internal digital PD capabilities
• Following up with new speed sourcing model through Supply Chain Solutions
Case Study
Sean Coxall 16
Lifestyle Brand
• Lifestyle brand with US$1bn+ Revenue
• Created new digital collections for e-com applications that were faster and more responsive to market demands
• Digital assets allowed customer to speed up traditional process of product image uploads
• Increased our sourcing business volume with customer by 15%
Case Study
$69.90Slim Plaid Dress Shirt
$69.90Slim Easy Care Shirt
$59.90Slim Striped Button Down Shirt
MEN’S SHIRTS
Sean Coxall 17
European Retailer
• European retailer with multi-billion revenue
• Used predictive analytics-driven insights on end-consumer preferences to identify best-selling styles and create new digital collection for instantaneous buy
• Speed to market (from 18 to 13 weeks)• Typical calendar: 18 weeks• Ready-to-buy digital collection within
2 weeks• 13 weeks from kick-off meeting to
in-store delivery
Case Study
Sean Coxall 18
Footwear
• Virtual sampling service to more than 25 global brands in the past 2 years
• Created over 2000 styles
• Leadtime reduction from sketch to sales sample by over 40%
2D Sketch Digital Sample
e-Com application
Case Study
Sean Coxall 19
• Aggregate 3D design tools and expertise• Technology and geography agnostic• Standardised processes, ability to scale• Estimated 50% reduction in sample effort and costs
2-4 1
From ANALOG To DIGITAL
Weeks Day
“Centre of Excellence aggregating technology and geographically agnostic resources to achieve maximum speed and quality of output”
Digital Design Platform
We simplify the product development process for our supply chain partners
Sean Coxall 20
Trend Engine
Trend Engine Project (TEP)
TEP scrapes data from various e-Commerce sites and social media platforms.
Through statistical analysis, insights are generated that help validate product selection, product design detail, pricing, and product lifecycle prediction.
Sean Coxall 21
# Social Events / Festivals # Location-inspired # Product Designs# Influencers
Trend Engine – Social SignalsAnalytical aggregation of trends by image recognition AI
Sean Coxall
Market Pulse
22
Trend Engine – Market PulseSide-by-side comparison of identified trends to online SKU items
# Emerging, Trending & Declining Trends # Validated across sources # Deep-dive Enabled
Sean Coxall 23
Trend Engine
More profitable and efficient growth for our supply chain partners
“Quality” orders at larger quantities
Less sampling “guesswork”, less time and effort
Greater product relevance, higher sell throughs for customers
Predictive analytics-driven design insight improves decision making speed and relevance
Sean Coxall 24
Better Entry Point for Partners
Materials
Design Production
Vendor Platform
Materials Platform
Easier Materials Sourcing
Work “Closer to Needlepoint”
Production Platform
3D Design Platform
Quicker Design Iterations
Sean Coxall 25
Production PlatformWe are creating
Production Platforms in four
geographies
• Drive deeper specialisation in production
• “Closer to needlepoint”
• Fewer layers, faster decisions, better communication
• Tracking and Quality tools
Sean Coxall 26
• Supports Production-MR reporting
• Intent to standardize key milestones
• Implementation through 2018
• Mobile app also in development
Making it simpler to track WIP
Tracking Tool Overview
Sean Coxall 27
the way it was… …the way it should be…
End of Line Inspection Tool
A “physical” pilot concluded in 2017, currently developing mobile app, expected to launch by end 2018
Making End of Line Defect Capture Easier
Sean Coxall 28
Remote
Fragmented
and manual
Local
Integrated
collaboration and
data gathering
Production Platforms are about optimizing all production-related work, enabled by technology
• Drive deeper specialisation in production
• “Closer to needlepoint”
• Fewer layers, faster decisions, better communication
• Tracking and Quality tools
From ANALOG To DIGITAL
“Will consolidate information across different businesses providing one integrated platform”
Production Platform
Sean Coxall 29
Better Entry Point for Partners
Materials
Design Production
Vendor Platform
Materials Platform
Easier Materials Sourcing
Work “Closer to Needlepoint”
Production Platform
3D Design Platform
Quicker Design Iterations
Sean Coxall 30
Vendor Platform
Our vendor platform is a holistic vendor service proposition that combines the other three platforms
MaterialsPlatform
DesignPlatform+ Production
Platform+ Vendor Platform=
Sean Coxall 31
A Central Point of Entry to the Vendor Platform
Sean Coxall 32
• Measure against Target IMUs by Category
• A.I. Enabled Smart Costing
• Manage Multiple RFQs
• Easy Cost Benchmarking
Dynamic Costing
Sean Coxall 33
Our vendor platform is a holistic vendor service proposition that combines the other three platforms to deliver value to our customers and supply chain partners
40 13From ANALOG To DIGITAL
Weeks Weeks
• Central entry point for vendors• Value added services and access to information• Digital costing tool• Capacity management tool• Enhanced Vendor Portal
“The fulcrum of our value added services”
Vendor Platform
Sean Coxall 34
LF
Dig
ital P
latform
Margin Increase in speed correlated with 30% reduction in Markdowns
From ANALOG To DIGITAL
Speed
LF Digital Platform
Innovation New, differentiated products and flexible speed models
Sean Coxall 35
• The information contained in this presentation is intended solely for your personal reference. Such information is subject to change without
notice and no representation or warranty express or implied is made as to, and no reliance, should be placed on, the fairness, accuracy,completeness or correctness of the information contained in this presentation. This presentation does not intend to provide, and you may not
rely on this presentation as providing, a complete or comprehensive analysis of the Company�s financial or trading position or prospects.
None of the Company nor any of its respective affiliates, advisors or representatives shall have any liability (in negligence or otherwise)
whatsoever for any loss or damage howsoever arising from any use of this presentation or its contents or otherwise arising in connection withthis presentation.
• This presentation contains projections and forward looking statements that may reflect the Company�s current views with respect to futureevents and financial performance. Readers are cautioned not to place undue reliance on these forward-looking statements which are subject
to various risks and uncertainties and no assurance can be given that actual results will be consistent with these forward-looking statements.
The Company undertakes no obligation to publicly update or revise any forward-looking statements, whether as a result of new information,future events or otherwise.
• This presentation does not constitute an offer or invitation to purchase or subscribe for any securities or financial instruments or the provision
of any investment advice, and no part of it shall form the basis of or be relied upon in connection with any contract, commitment or investmentdecision in relation thereto, nor does this presentation constitute a recommendation regarding the securities or financial instruments of the
Company.
Disclaimer