case study ozi native clothing background ozi native clothing is a clothing manufact 372818

Case Study Ozi Native Clothing Background Ozi Native Clothing is a clothing manufacturer based in Melbourne which manufactures clothing and accessory items made from the hides of Australian native animals, including emus, kangaroos and wallabies. The company was established in the late 1980s at the time Australia had started to become a highly popular tourist destination and there was a growing general interest in Australia in many overseas markets. Product History The company manufactures a range of products including women’s and men’s winter coats, women’s skirts, waistcoats, handbags and purses. These products have proved to be very popular with overseas visitors. To date, Andy Scelly, the managing director of Ozi Native Clothing, has distributed these products through a limited range of tourist and souvenir shops in the Melbourne CBD, in close proximity to a number of four and five star hotels in the area. Feedback from these distribution outlets indicates that the great majority of the buyers are upper income tourists from Japan, the USA and South Korea, with a more limited number from other Asian markets. The clothing and accessories do not appear to appeal to British and other European tourists or to New Zealand tourists. Nor does it appear that Australians themselves want to wear Australian native animals. The raw materials are sourced from a variety of suppliers in Victoria, with emu farms supplying the emu skins, and with commercial shooters supplying the kangaroo and wallaby skins via an intermediary. Emu skins are relatively expensive to source, while a plentiful supply of kangaroo and wallaby skins means that supplier prices have historically been fairly low. Accordingly, Andy Scelly has priced the emu products above the other products. The overall mark up is around 50% over and above the company’s variable and fixed costs (including all overheads), and Ozi Native Clothing supplies the retailers with a recommended retail price,…