Tuesday, April 3, 2012

Day 6, April 3

Today began very early with an 8:00am flight from Shanghai to Hong Kong on Hong Kong airlines.We needed to be on the bus by 5:00am sharp because we have learned that traffic in Shanghai is very unpredictable. Although we were very tired from traveling, when we arrived in Hong Kong we were very excited. A few things we noticed right away being that it is a Special Administrative Region where, being a former British colony, they drive on the opposite side of the road. We were also astonished by the beauty of the city being on the harbor and the view from our hotel.

After arriving at the hotel, we had a half an hour to get ready and head to  Li & Fung headquarters.

At Li & Fung Headquarters we learned about the retailing portion of the company. The different sectors include Convenience Retail Asia Limited, Trinity Limited, Toys Holding Limited.

Trinity is a leading luxury menswear player in greater China. Some of brands they have include Gieves and Hawkes and Cerruti 1888. Menswear is becoming more popular in today’s fashion industry. The three main goals of Trinity are quality, authenticity, and service which are also key points to good retail. 

Circle K and Saint Honore are convenient stores in Asia that are part of Li & Fung limited. We got to visit both of these places that were nearby the headquarters. A popular baked good at Saint Honore Cake shop is the rocky bun. Yum!

After visiting Circle K and the cake shop, we got to hear from the Kohl’s Apparel Group about the production cycle, quality control, and testing.  We found that Li and Fung is extremely thorough in their quality control process.  For example, we got a chance to test our skills on finding defects in various clothing items.

The last part of our time at Li & Fung headquarters we got a tour of the showrooms. The showrooms include home décor, jewelry, apparel, toys, and many more. We even got to see actual buyers and consumers negotiating product supply in the showroom which was also set up as a conference room. This trip overall included aspects of business, retail, and design which was important to see how these three majors interacted with each other.  For example, today related directly to an operations and technology management class taken by many of the students as well as technical design.


We could not thank Kohl’s and Li&Fung enough for all of the opportunities for educational and personal development they have allowed for us through the retailing center.  This trip will truly never be forgotten.


Day 5, April 2

We started our day with a nice drive to Tongxiong city. The scenic drive allowed us to observe the different styles of living throughout the city, suburbs, and rural countryside.

Our first destination was Artwell, a cashmere apparel factory. There we were given a little taste of home - McDonald's! It was extremely generous and accommodating. The full vertical factory began with the raw material (imported from cashmere goats in Mongolia) and ended with packaging the finished garments. Students were impressed with how clean, well lit, and well ventilated the factory was - what great working conditions! Kohl's makes up 12% of Artwell's capacity which equates to 400,000 units per year. This could be expanding since Artwell is doubling the size of its manufacturing capacity within the next month. One great surprise was seeing Burberry sweaters being produced!



After the Artwell factory, we boarded the bus and headed to another factory, Shinsun (Jiaxing Pengchao) Garment Co., LTD. We were greeted by the CEO of Operations, Benjamin, explaining that it was the company's job to make Kohl's look like heroes. Benjamin was part of the family that owned the factory, which we found was very common in China. Family ties are extremely important and Shinsun had relationships with fabric mills that were over 30 years old. We learned about the entire process from fabric and material selection to final quality inspection. The students were able to see first-hand how Kohl's and Li & Fung work with suppliers to produce high quality goods at a great value in a short time period. We are all very excited to see the products from the lines in Kohl's stores within the next few months.

Today was a great way for all of our majors, from Design to Marketing, to see real world applications of what we have learned in the classroom. We saw the importance of quality control and we could see the respect the suppliers had for Kohl's throughout the various aspects of the day. Our factory tours gave us a new perspective and we could not have been able to see this without Kohl's great partnership with Li & Fung and its suppliers. The students were definitely looking forward to the tours today and our expectations were, once again, surpassed from an educational, social, and cultural point of view. Thank you so much Kohl's! It was a day we will not soon forget!

Monday, April 2, 2012

Day 4

April 1st 2012—

We started out the day at 9:00am. Our first destination was The Humble Administrator’s Garden located in the Jiangsu Province in the South of China. It was initially a private garden of a former government servant, Wang Xianchen. Built in 1509 during the Ming Dynasty, the garden was built to simply enjoy life. A pagoda was located in the center of the garden. Each one of its corner resembled one of the four seasons. As most of the other attractions we’ve seen on our trip, many of the tourists were from other parts of China.  There was even a large group of small school children that appeared to be visiting on a field trip.  We were surprised to see them there on a Sunday when typically there is no school.  However, many Shanghai families will be celebrating an important Chinese holiday tomorrow and many children attended school today to compensate for this time



Our next stop was the Suzhou No. 1 Silk Factory Co., LTD.  After a quick lunch, we were given a tour of the factory and were taught about the extensive process of silk production.  One of the first things we learned was how to distinguish between real silk and a blend of polyester and silk.  The three techniques we learned included burning and breathing on the fabric. When silk is burned, it produces a white smoke and smells like burning hair. Polyester, on the other hand, produces black smoke and causes the fabric to curl.   Silk is known for keeping you warm in the winter and cool in the summer and this can be demonstrated by breathing through the fabric onto the skin underneath.  If your breath feels cool in the summer and warm in the winter, you know you’re dealing with real silk.  The worker giving us the tour believed silk cured many ailments such as arthritis and asthma.



Our last visit of the day was to the Water Tower which consisted of six famous towers above six rivers. It became famous after a young artist did an oil painting of the location.  A famous individual in the U.S. purchased the painting at an art exhibition, and the location was later featured in several movies such as Mission Impossible 3. The Water Tower is known as the Venice of the East due to its similar appearance. Various shops selling jewelry, food, and souvenirs line the water on both sides. Many of these shops are owned by families who live in apartments above them.



We returned to the hotel early and were given the opportunity to explore around the Langham Hotel, a very young and social area where many known retailers, such as Louis Vuitton, Apple, and Cartier dominated the area. This was such an amazing experience. Thank you Kohl’s for providing us such a great opportunity.

Saturday, March 31, 2012

Day 3, March 31st

March 31st began at 5:15 AM for the students as we checked out from the Peninsula Hotel in Beijing. We grabbed our five star boxed breakfasts and headed to the train station with our fearless leader Julia Potter. It was interesting to note the beauty of the train station as it was built in 2008, and was yet another structure for the world to see for the Olympic Games in Beijing. As we traveled south on the bullet train at speeds over 300 km, we saw China’s “country side” accompanied with clusters of high rise buildings in the background. In the Li & Fung presentation later in the day, it was noted that one of their challenges within the company is a labor shortage in the big cities. The fresh construction we saw passing through the countryside on the bullet train further supports the growth that is occurring outside the metropolitan cities. On our way to the Li & Fung Shanghai Campus, our tour guide Mac shared that Shanghai is the “New York in China” and their Financial Center is coincidentally referred to as Manhattan.


Upon arrival at the Li & Fung Shanghai Campus, a Cantonese style lunch was served recognizing the Fung brothers’ Cantonese heritage. After lunch, we heard from Joseph Huo, the General Manager of Finance and Accounting for LF. Mr. Huo highlighted the challenges that LF is facing in the sourcing world. First, the concern of cost of labor and materials will continue. They are also concerned with labor shifts in Southern China and the coastal cities. This shift is from an increased demand for white collar workers. Factories are moving inland as supported from what we saw in the countryside of China on the bullet train. There is also a concern of power shortages in Chinese factories. The students witnessed this energy consciousness after dinner tonight when the light show of Shanghai skyline was shut off after 8:30 PM.

After Joseph Huo’s presentation, we were introduced to part of Kohl’s exclusive merchant team at the LF office. Their dedication to Kohl’s and their quality standards was clearly evident. They really strive to interpret each product to fit the quality and price standard that the Kohl’s customer expects. After the LF Kohl’s team presentation, the students toured the campus and product showrooms.



Due to Shanghai traffic, the students had the opportunity to see the vibrant, sensory overload city with countless photos of gleaming and unique skyscrapers. The young, fashion forward citizens were very easy to spot throughout the city.

The day ended with an absolutely lovely meal at the posh “M on the Bund” overlooking the Yangtze River and Shanghai skyline. Just when we thought the day could not get any better, we entered the Langham Hotel. This was all made possible through Kohl’s. Thank you for an incredible welcome to Shanghai.

Day 2, March 30th

Today we went to some very historic places in Beijing. Our first spot was Tiananmen Square. Our tour guide, Julia, pointed out many visitors from rural areas of the country who have been waiting their whole
lives to visit because it is considered a "place of celebration and happiness,” contrary to the beliefs of many Americans. We then proceeded to the entrance of the Forbidden City where we took a group picture with Chairman Mao’s portrait in the background.

The Forbidden City was incredible and much bigger than we could have ever imagined. Each courtyard, garden, and living corridor was more intricately designed and painstakingly restored than the next. It seemed to go on forever, as we learned about the dynastic emperors of China, and all the hard work that went into creating this amazing place. It was truly astounding.

After our traditional Chinese lunch, we took a rickshaw ride through the Hutong district, which is a historic residential area of the city. We were also lucky to see a courtyard home and the family that lives there. This ride truly immersed us in Chinese culture, as we were caught in traffic jams with entertaining drivers and street noise in the background.

Our next activity was the Temple of Heaven, where Emperors used to pray for good harvest. It was a beautiful sight and we all enjoyed the circular "Echo Wall,” where one could clap and we could hear the echo three times.

We then went to dinner and the Pearl Market, where we did some great bargaining and bought gifts for our friends and family. Each purchase was an experience, as we haggled prices down and rejoiced in our successes in obtaining “the best price possible.”

Our last stop of the day was an Acrobats Show, where the President of Kazakhstan was also in attendance. It was spectacular, especially the finale which featured six motorcycle riders looping around in a spherical metal cage. Each time one of them joined, they would yell "Hai!" and the audience would react in fright. Something all of us will never forget.

Overall, we are as exhausted as we've ever been in our lives, but we could not have asked for a better reason to be. Thank you so much to Kohl's and Li&Fung for allowing us to experience this incredible journey. We have formed great friendships and learned so much about this amazing country.