Company Visit-TAL

In order to be more competitive, TAL has invested a lot into the Research and Development department. For example, the R&D department has invented the Soft TAL technology in 1996. This technology is iron-free and the color is not easy to fade out compared to the traditional materials. The department has invented over 30 technologies and all are very innovative and these technologies

had helped TAL to maintain the leading position.

Q1 Why TAL does not set up as a new brand?

Firstly, the position of TAL is acting as a manufacturer for many years, TAL will keep focusing on producing clothing for different brands instead of retailing its own brand. Besides, TAL is not willing to go one tier down in the supply chain. The most important reason is that there will be conflict between the customers and TAL if TAL becomes the retail brand as they will become direct competitors even though they are not targeting the same group of customers.

Q2 How can shoppers distinguish the products are from TAL or not?

A:It is hard for the general public to define that whether TAL produces the products or not. It is because there are contracts between TAL and its customers (such as Burberry, Brooks brothers, etc.). TAL is not able to show their trademarks on the products, as it will violate the contracts. TAL is mainly focused on producing the products for the retailers and it only need the retailers to distinguish the products. However, sometimes, it is possible to find TAL in the washing label.

Q3. Will other manufacturers affect the image of TAL as TAL does not produce all products for the same brand?

A:Students concerned about the image of TAL will be affected if the brand did not use TAL as the only manufactures when the general public go inside the retail shops and find the quality of the products are not good while TAL does not produce the products.

Firstly, TAL will ensure the products are in good quality when the products are being sent to the retailers. Also, the brands have the responsibilities to check the quality before the products are launched and sent to the retail shops. What is more, the company is more likely to go to the factory to check for the quality instead of visiting the shop for randomly checking.

Q4. How to compete with the online shopping platform such as TaoBao?

A:Although the selling prices in TaoBao are very low, TAL is not targeting in the same market of TaoBao, therefore, it would not be easily affected. Also, TAL is focused on the international premier brands such as Banana Republic. For the online shops like in Taobo, they can offer cheap price.  People can buy the business shirt on Taobo or Burberry such high-ended brand,the difference is the price and quality. The Burberry shirt produced by TAL may be have some of the technology involved(Softal,pucker free). And the primer brand always have contract with TAL which involves the customer loyalty. Therefore,online store will not affect TAL much.

Q5 Why still owes a factory in Hong Kong?

A:It is because there is limited quota for the exportation from China to the western countries, therefore, TAL still owes a factory in Hong Kong in order to deal with the export and import problems.

Q6 Since TAL has invented a lot of new technology, shall it expand the market to the other area like shoes , bags?
A:No. Since TAL has adopted the focus strategy on manufacturing clothing. All of the technology invented byTAL are applied on clothing. It is because the materials of a clothing is different from a bag and shoes.


Q7 How will TAL get balance of the tradeoff of sustainability and profit?

A:Sustainability is always a problem for all company. It should not just relate with manufacturing. Since TAL is one of the largest garment manufacturers worldwide, it should be environmental friendly. TAL has set some attainable targets on reaching their goals. TAL has launched the score tool to evaluate the ratio of  production cost and sustainability. By weighting the importance and impact of the measures, it can help TAL to determine how to allocate the resource in order to balance the tradeoff. TAL has also implemented some environmentally friendly solutions that need to use money which means increase the cost . However, the slight increase in the cost can bring the long-term benefit for TAL. Those policys include waste water treatment and lower the discharge volume,low carbon manufacturing programm, and waste heat recovery .Moreover, TAL has invested in the 3-year plan . Tal has mentioned to reduce TAL GHG footprint intensity by 15% by the end of 2012, with the same or lower on other environmental impacts. And it really succeded. This is the promises.

Q8 Why does TAL diversify the factory in different countries?Will TAL move out of China since the cost is increasing?
A: When TAL plan to set up new factory, we need to consider many cost about it (total cost ). Operating the factories in the worldwide can make sure the materials offering is sufficient whether any other place has some problems.For the question of moving out of China, I think it is not easy to close down a factory. We are now finding the opportunity to open a factory in Africa.

Q9 Who will bear the responsibility of misforecasting?
A: Forecasting is supposed to be done by Product Development Team. And they have paid much effort on the R&D .  It is quite not possible for TAL occur sales misforecasting . On the other hand, quick response can help TAL to overcome these sudden problems. We can even use air to transport which is faster carrier.