DHL has launched a new Fashion Centre of Excellence near Shanghai offering integrated end-to-endlogistics services for high-fashion and luxury goods in China, especially for European and US
exporters.DHL Global Forwarding, the air and ocean freight division of DHL, has invested €4.3 millionin the 10,500 sqm facility, in Jiuting, located on the outskirts of Shanghai, to meet the need ofthe fashion industry in terms of speed, security and safety.
The centre, spread over three floors, combines DHL’s value-added services and a teamdedicated to high-fashion and luxury to manage the entire fashion supply chain from source origincountries in Europe and the USA to safe arrival at retailers across mainland China. It targetshigh-fashion retailers with a wide range of different products from ready-to-wear and leather goodsto jewellery and watches, fragrances, cosmetics and accessories.
A unique feature of the facility is a ground-floor buffer zone that can be quicklyreconfigured to cope with the massive seasonal influxes peculiar to the high fashion industry.Value-added services include sorting and picking, labelling, stitching and knitting, visual qualitycontrol, re-packing, non-merchandise and sales order management as well as reverse logistics.
Dedicated experts will design and manage solutions for import, safe storage and delivery allover China through DHL’s infrastructure and network capabilities. Last mile services includedelivery and unpacking in-store by DHL employees who are also trained to stock shelves and racks.The entire process is visible on DHL Global Forwarding’s integrated IT system.
Kelvin Leung, CEO, DHL Global Forwarding Asia Pacific, said: “China’s fashion industry hastripled in market size in the last 10 years. In 2012 alone, the luxury goods market grew 6 per centwith Chinese consumers, now the number one buyers of luxury goods and globally responsible for 25per cent of total sales. There is immense opportunity here for us to support the logistics needsand challenges of our customers and in turn, cater to burgeoning consumer demand. This FashionCentre of Excellence is not just a milestone for DHL but a timely response to the growingrequirements for first-rate logistic solutions for the high fashion industry in China.”
DHL said it has over 50 years’ experience in the secured handling of fashion and luxurygoods all around the globe. Steve Huang, CEO, DHL Global Forwarding China, said: “DHL surveyed overa dozen of the world’s leading luxury fashion brands in China and has created a facility with asuite of services that we believe exceeds their expectations. In addition to comprising both bondedand non-bonded facilities, the DHL Fashion Centre of Excellence has state of the art anti-theft andanti-counterfeiting security such as anti-pilfer crates, cages, IT and surveillance systems anddedicated operations and security management teams.”
According to research by McKinsey, China’s luxury goods market will be worth RMB 180 billion(€22.5 billion) by 2015. As a result of anticipated growth, DHL Global Forwarding is currentlyevaluating the development of DHL Fashion Centres of Excellence elsewhere in China. Between 2006and 2011, it launched a series of similar fashion centres in India, Hong Kong, Pakistan, Sri Lanka,Vietnam, Bangladesh and Cambodia.
In 2011, DHL Global Forwarding restructured its consumer business launching retail as aseparate division. This has become one of the company’s fastest-evolving new business sectors asglobal retailers and manufacturers have redesigned their supply chains in response to themulti-channel purchasing options that customers prefer.
Mark Lau, Global Sector Head Retail, DHL Global Forwarding, concluded: “The high fashionindustry’s three priorities are speed, because of the seasonality of their products, security,because of their high value, and safe handling at all stages because these are goods that areeasily spoiled. The challenge – and opportunity for DHL – is providing all three cost-effectivelyin China where demand is soaring.”
