South Pacific ApparelCorporate Profile

South Pacific Apparel’s Australian headquarters is located within the heart of Sydney’s fashion district, Alexandria. The state of the art premises features a dedicated customer service call centre, showroom, administrative offices and a design studio. Also located within Alexandria is its Australian distribution centre that enables orders to be fulfilled and dispatched within 24hrs upon receipt.

Across the Pacific, the company boasts offices and a distribution centre in Auckland. In place across Australia and New Zealand are dedicated national sales and merchandising teams.

LOC

ATI

ON

Australian Headquarters

New Zealand Offices and Distribution Centre

South Pacific Apparel’s extensive IT infrastructure and ordering systems combined with its designated warehouse and dispatch centre allows its Clients to benefit from size and scalability.

Additional processes include:

• EDI• VMI• DTS• Full electronic barcode scanning• Pressing and steam tunnel• Flat pack and hanging delivery• Overnight delivery across Australia

For quality assurance and testing, Qualspec International services are enlisted and provide thorough pre-production in-line visits, final random inspections and textile testing.P

RO

CE

SS

ES

& Q

UA

LITY

CO

NTR

OL

In July 2005, South Pacific Apparel signed a license agreement with Perry Ellis International, (NASDAQ:PERY), one of the leading apparel companies in the USA. Perry Ellis International offers a major portfolio of highly recognised brands, some of which were established over 100 years ago. The Perry Ellis International brand portfolio includes:

AxisCubaveraFarahGrand Slam Jantzen John HenryManhattanMondo Di MarcoNatural IssueNike SwimOriginal PenguinPerry EllisPGA TOURPINGPro PlayerSavaneThe Havanera Co.Tricots St. Raphael

The new licensee agreement in place with Perry Ellis International allows South Pacific Apparel to continue to manufacture and distribute Savane and Farah apparel while also providing its customers the benefits of this new global alliance.

INTE

RN

ATI

ON

AL

BR

AN

D P

OR

TFO

LIO

Farah first started production in Australia, under the company name Farah Australia, in 1971 and word spread quickly about its “Famous Farah Fit”. As demand grew, Farah moved into larger premises and also set up offices and a distribution centre in Auckland to cater for its ever growing New Zealand market.

In September 2004, Farah Australia and its New Zealand division were purchased by Paul Box and Andy Williams, previously from Tropical Sportswear International, which saw the launch of South Pacific Apparel.

Today, South Pacific Apparel is a dynamic company upholding traditional values, providing what the customer wants, when they want it. The company’s investment in new IT resources has sped up crucial business processes delivering a faster, more accurate and precise fulfilment.

In addition, its management are also continuing to search the global marketplace for new fabrics and production facilities that can place its products amongst the world’s best for quality and value. The net result of this investment has been a considerable increase in customer satisfaction.

HIS

TOR

Y

Print advertisement from the 1970s

South Pacific Apparel offers a comprehensive (core essentials) stock service range year round for Farah and Savane in addition to its seasonal indent offerings for each of these brands.

Farah offers what independent testing groups have referred to as the “Best Value in Pants” today. The Farah brand consists of products ranging from Wrinkle Free Cotton Casuals to Micro Fibre/Wool Blend Dress trousers that boast superior quality of fabrics and workmanship.

PR

OD

UC

TS &

CU

STO

ME

RS

Source: RagTrader, 29 July 2005

Savane is designed to appeal to the value shopper, across all age groups. The brand features up-to-date styling that today’s consumer craves in a performance packed garment that looks and feels good. From being the first to introduce wrinkle free pants under the Savane label in the 1980’s to the recent launch of FREEDOM (Savane pants that invisibly expand up to 11/2" at the waist), the brand prides itself on being at the forefront for providing new product innovations.

South Pacific Apparel is also equipped to provide companies with a range of corporate apparel solutions and also has the experience to produce clothing for retailers under their own labels. Customers for private label apparel have included Target, Country Road, David Jones, Lowes and New Zealand retailers Hallensteins and Barkers.

In-house design staff at Perry Ellis International’s headquarters use advanced computer-aided design and fabric technologies to ensure a proper fit and outstanding performance on all garments produced.

Regular upgrades in computer technology are implemented, which assist with:

• Enhancing design capabilities• Communication with global suppliers and customers on a

real-time basis• A faster reaction to competitors’ new product developments• Meeting changes in customer needs

On going research at Perry Ellis International’s textile testing and research labs also ensure a strict level of quality control on all its brands that are manufactured for its worldwide licensees.

DE

SIG

N E

XP

ER

TIS

E &

AD

VA

NC

ED

TE

CH

NO

LOG

Y

FREEDOM is an innovation from Savane that utilises a combination of fabric and tailoring technology to allow the waistband to give up to 11/2" at the waist,

yet return 100% to its original shape throughout the life of the garment

In the USA, creative advertisements for the Perry Ellis International brand portfolio, including Perry Ellis, are placed in the leading consumer and trade publications and on billboards.

This year the Perry Ellis brand celebrates its 25th anniversary. To commemorate this milestone, a special 20-page advertising section has been produced. Published in US magazines, Details and W, the advertisements feature men from film, music, TV, sports and business.

South Pacific Apparel’s affiliation with Perry Ellis International provides the opportunity to access such advertising material for the brands it licenses in Australia and New Zealand.

Clients are also supported with marketing efforts provided at the point of purchase. Upon request, POS materials are specially designed and produced to be suitable for each Clients’ retail environment.

MA

RK

ETI

NG

& A

DV

ER

TIS

ING

The most comfortable pants you’ll ever wear

Ask us why

hassle free pantsLITTLE OR NO IRONING

POS material

Synergy between company departments is crucial in order for customers to get what they want, when they want it. Perry Ellis International prides itself on the following evolution process that South Pacific Apparel has adopted as part of its workflow.

01 Designers travel the globe to research the latest styles and trends. They illustrate

their concepts using computer-aided design technology (CADs). CADs improve speed by

eliminating the need for sewn prototypes prior to customer approval. 02 Sales department

conducts seasonal line preview with accounts. Product picks are made including styles,

patterns and colors. 03 Pattern picks are sent to design department. Line lists and style

numbers are created. 04 Sourcing and design departments meet to review design concepts

and determine what product is technically feasible and what pricing is acceptable for the

customer. Sourcing attends design review sessions along with sales and merchandising teams

to finalise the actual product lines. Sourcing costs and determines a vendor for a particular

program. Sourcing works with the social compliance department to determine if the proposed

manufacturer is compliant and eligible to produce garments for a particular customer. Sourcing

finalises pricing of the line and presents the pricing to the sales division.

05 Sales determines the final selling price to the customer and helps set the PEI margins.

Sales and Planning departments review business ladder plans and make revisions.

WO

RK

FLO

W

06 Sales and Marketing analyse business opportunities and develop diversified marketing

strategies, including media plans and visual concepts, to build brand awareness.

07 Agreement with customer is finalised, make up orders are turned into the Purchasing

agent. 08 Sourcing places a production order. Sourcing informs design where to send the

product package for the initial development stage. 09 Design support team creates PDM

packages for the overseas supplier that include all specifications for the garments.

10 Purchasing department directs overseas suppliers in the construction of fabrics,

purchasing of trims, and creation of hang tags. They manage suppliers so that suppliers

ship on original requested ship dates. 11 Manufacturer creates preproduction samples

for garment testing and approval by Technical Design and Quality Assurance departments.

Recommended care instructions are created for each order. Manufacturer produces order.

12 Logistics department determines cheapest and fastest mode of transportation. Shipment

is delivered to one of PEI’s distribution centers. 13 Quality Assurance department performs

random audit on all orders received. 14 Distribution center ships customer’s order.

15 CUSTOMER RECEIVES ORDER.

South Pacific Apparel Pty Ltd

AUSTRALIA

PO Box 615Alexandria NSW 2015

Phone: 1800 652 044Fax: 02 9519 5107

NEW ZEALAND

Unit 3Asquith Business Centre118 Asquith Avenue Mt Albert

Phone (09) 815 2763Fax: (09) 815 2186