expand - DKSH.com

One-on-onecategory and we have values and principlesthat are non-negotiable to us. We tell potentialemployees that if they truly want to cometo a company that’s growing, that can make adifference, that believes in them, then this isa company where they can work. We offer avery compelling story, and it’s not just aboutwhat you’ll learn; our values are very importantto us, we expect our people to live up toour values. For instance we have one day ayear where all our employees go and work inthe communities in which we operate. Wewant you to come here and we want you tofeel as though you can make a difference. Wehave a Red Tape Foundation that looks afterpast employees and retirees if they need anyhelp; so it’s a fully integrated story we bring.We call it Profits with Principles.Can you tell us more about those principles?We contribute to the communities in whichwe operate. For example, one of the thingswe focus on is HIV/AIDS education. And westill spend a lot of money on education,workers rights, freedom of association. Settingup the sourcing guidelines was a big investmentfor us. We wanted workers to feelthey had a degree of fairness in how they weretreated and where they worked. More recentlywe’ve been focusing on sustainability. Ifyou look at our jeans today, the care labelswill say wash in cold water, line dry, and donateyour jeans back to charity when you’vefinished with them. We’re making a lot morestatements, and we think it’s good for thecommunity, it’s good for business and it’sgood for our employees, because they feel asthough they’re making a difference as well.You mentioned Levi’s direct outlets. Is thispart of the strategy going forward? It varies.For instance in the USA, predominantly ourbusiness is through the wholesale channel.That’s not going to change. We also have anumber of stores in the USA – flagship stores– which really know how to set the consumerexperience. When you go into an emergingmarket, such as China or India where there isno wholesale channel, you have to build ityourself. There we predominantly use a franchiseemodel. We control that retail experience,but it’s a franchisee model.DKSH has been the sole franchisee of Levi’s apparel in Thailand for over 20 years and today operates 146 pointsof sale. In October 2010, DKSH opened the first ever Levi’s boutique in Cambodia.What are some of the challenges distributingthrough so many different partnershipsin the USA? You’ve got to make sure that youunderstand who their consumers are. If yougo into a Penny’s store, or you go into one ofour own stores, you’ll find very differentproducts sold. That’s how we assort ourproduct, based on who the consumers are.We’ve become a better wholesaler becausewe understand how retailers think and operate;so we’ve been able to bring that learningfrom our retail stores, talk the same language,talk the same profit returns to ourwholesale customers, and they really appre-DKSH’s magazine for Market Expansion Services 25