Padini’s Financial Ratio

2 February 2017

Question (a) Company’s Background History Padini Holdings Berhad began as a backend operation in Malaysia’s clothing and accessories industry. It has entered the new millennium as a major force in Malaysia’s multibillion textiles and garments industry. It is now a brand leader involved in the manufacturing, distribution and retail of its own fashion labels through 190 freestanding stores and in-house outlets. Besides operating in Malaysia, they have also carried the Made-in-Malaysia stamp abroad proudly.Its products were being exported to Singapore, Thailand, Brunei and West Asia now.

The company is headquartered at Selangor Darul Ehsan, Mayalsia. Due to its vast amount of export in products, Padini is often mistaken as a European brand rather than a local brand despite its almost 40-year history in Malaysia. It is founded in 1971 by the group’s managing director Yong Pang Chuan as the Hwayo Garments Manufacturers Company. It entered the retail industry in 1975 with the flagship brand called Padini.This breakthrough came when Yong realised that taking his company to the next level would require a strong brand identity, hence, the brand name Padini. In 1991, Home Stores Sdn Bhd was launched to hold all the companies involved in the Group’s retail, wholesale and manufacturing businesses. It was subsequently renamed to the present Padini Holdings a year later.

Padini’s Financial Ratio Essay Example

In 1995, Padini Holdings Sdn Bhd was converted to a public company limited by shares and adopted the name, Padini Holdings Berhad and soon listed on the Second Board of the then Kuala Lumpur Stock Exchange.Next, in the year 2000, the establishment of Padini Dot Com Sdn Bhd was witnessed to provide electronic business services and solutions for the group. Padini Holdings was transferred to the Main Board of the KLCI Bursa Malaysia in 2005. Vision Padini’s vision is to be the market leader in the retail industry. Padini is committed to achieve this goal through creative, discipline and hard work. Recently, Padini Holdings is consolidating its operations in order to be more efficient. Besides maintaining its affordability,Padini promises to maintain their high standard of quality in terms of design and products.

They are also striving to expand their business on a regional basis. Padini Holdings relies on a few main factors to drive awareness of the nine brands it owns. These factors are storing presence and always giving the customer a reason to walk into the stores by having a variety of new clothes every week, a warm atmosphere in its outlets, friendly yet efficient customer services and etcetera. With over 200 free-standing stores and in-house outlet nationwide, Padini’s brands are present in every major shopping mall.Some of the group’s stronger brands have identities that have made them automatic destinations for shoppers looking for particular styles. Padini’s Products and Brands Padini is an integrated operation which controls its products (clothing and accessories) from the concept stage to manufacturing, merchandising and image marketing. Each brand represents a fashion philosophy and each philosophy covers a comprehensive scale of products aimed at a targeted range of consumers.

Brand image is strongly backed up by real value in terms of quality, functionality and price.Padini addresses fashionable consumers of both genders and all ages through nine distinct brands which are Padini, Padini Authentics, PDI, P ; Co, Seed, Miki, Vincci, Vincci+ and Vincci Accessories. All these brands include products like apparels and accessories for ladies such as hand bags, shoes, belts and others. Its services include customer care, retail distribution and e-retail. Padini focuses on the fast changing tastes of consumers on clothing and accessories. They will always have something new, which is their main attractive force in this industry. Business StrategyOne of the reasons why Padini is such a success in the clothing and accessories industry is due to the fact that it applies the correct and precise business strategy for this age.

One of them would be having frequent sales offers. Sales generate customers and it is the main attractive magnet to why consumers would enter a certain store or outlet. During sales, the group releases stockpiles of more affordable and yet good quality merchandise that is further discounted. This strategy will attract more customers into spending, but the difference would be spending with quality and affordability.Adding to that, the introduction of the Padini Concept store in 1997 has contributed to a significant boost to the group’s brand identity and the brand presence of its labels. The large 16 standalone multi-brand stores have paid off not only in reducing rental and operational costs, but they have become must-see destinations for shoppers. During the downturn, the group focused on its bargain-friendly Brands Outlet stores.

Introduced in 2007, Brands Outlet features Padini designs, but with more affordable fabrics and lower-cost production resulting in rock-bottom prices.The Brands Outlet stores have been a growth driver for the Padini group, contributing around RM54. 6 million in sales of the brand’s own products. Overall, the Brand Outlet stores contributed 10% of the group’s FY2010 total sales revenue. Question (b) Ratio analysis is very important to analyze the success, failure, and progress of the business. Ratio Analysis enables the business manager to compare its performance with the previous performance and the average performance of businesses in the same industry.

How to cite Padini’s Financial Ratio essay

Choose cite format:
Padini's Financial Ratio. (2017, Feb 11). Retrieved July 29, 2021, from https://newyorkessays.com/essay-padinis-financial-ratio/
A limited
time offer!
Save Time On Research and Writing. Hire a Professional to Get Your 100% Plagiarism Free Paper