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CASE STUDIES


In Inexmoda we have a lot of stories and case studies that we want to tell you about.
People and companies that transformed their lives and businesses to be
more competitive, productive and sustainable over time.

¡Know their story and learn from them!

Consultancy

Strategic Brand Assessment

An example of transformation

A room with a wooden roof, walls decorated with clouds-landscapes-birds-suns-colors, a table to paint, and a ball pit is a very attractive place for a child. But if it also smells sweet and sounds like adult music, but played by children, it can more or less become paradise. These are the new Polito stores.

It wasn’t always that way, however. Five years ago, Polito’s future was not very encouraging. The brand was in the memory of many, associated with quality, but consumers had become unaccustomed to seeing it. It was sold in international markets, chain stores, and a few of its own stores.

It was one more brand in the CI Conindex portfolio, an international marketer born in the 1990s, focused on apparel and full package, where Polito arrived almost by accident.

The brand was born in 1979, but by the nineties, its owners fell into crisis, and in 1998 CI Conindex–with the intention of helping them–included it in its portfolio, would sell the products, and would give royalties to its former creators.

However, everything began to change in the textile-clothing business. The dollar fell below $2,000 COP, multiple trade agreements entered into force, and quality was no longer enough to compete. The arrival of Chinese products at very low prices shook the market and unsettled what had worked well for years. That moment meant the end for many garment makers.

Conindex was not immune to the crisis. At that time, 70% of their sales were concentrated in Mexico and Venezuela, and neither of the two markets offered favorable prospects. With the entrance of Asian and Peruvian products, competing in the Mexican market was complex, and Venezuela was beginning to close due to the country’s political situation.

New business model

With the help of Inexmoda they worked on innovation, on the implementation of the short series strategy, and on modification of their portfolio. With these they managed to renew the brand, dropped reliance on apparel and full package, and entered into a business model that demands greater speed in terms of design, production, and marketing cycles, but that has allowed them to become a new option in the children’s clothing market.

“Today, Polito is our most important business unit. Five years ago it was full package and maquila. Today we develop one hundred percent with Polito and dedicate all our efforts to innovation, brand development, and demand-based production”, says Natalia Zabala.

If five years ago the future was not promising for Polito, today it is. The sales figures, its growth, a highly-committed team, and the projects in which they work, make it possible to believe that it will remain and grow. While there is a large number of families that still buy their children clothing outside the country, there is a large segment that does not, seeking design, quality, and good prices which Polito is able to offer them.

Main reasons for its transformation

  • Transform or disappear
  • Implementation of short series strategy: more references and more variety. A portfolio with fashion collections and worlds that always remain:”Politos&quot”, Graphics, Essentials, Accessories, Pajamas, Beachwear, Footwear, and Accessories
  • A mature brand with experience, and associated with quality
  • Strategic decision: understand what is happening with consumer and market, in order to permanently produce garments
  • Higher rotation

Karibik, example of transformation

Although in Colombia the model of short series is only being incorporated, there are already some brands that have integrated these changes. Karibik, a chain of women’s clothing stores, is a good example of how it is possible to change the paradigm.

Karibik is a medium brand that opted to commit to this model and has since achieved an interesting growth in a short time. Inexmoda, within its training and advisory programs of short series and demand-driven supply chain, has accompanied its transformation process.

Achievements

Shops

2013: Five physical and one online

2014: Opening of three stores in Bogotá

2016: 14 physical and one online

Goal to 2020: 32 physical stores and one online

Sales increase

2012 – 2013: 112%

2014 – 2015: 58%

Goal to 2020: multiply sales by 5 (compared to 2015)

Inventory rotation

2013: 333 days

2015: 101 days

Goal: 69 days

 

Collections One per week: four per month and each collection has 18 references.

Main reasons for its transformation

  • Implementation of short series strategy: more references in small batches and more variety
  • Maturity of the brand: differentiated concept
  • Strategic decision: change from selling a product to selling a concept
  • Higher rotation

 

Improvements in organizational processes can make the difference between staying or disappearing in a business that is constantly evolving.

Expofaro ensures its future

Answering the question “What else can we offer our client?” Expofaro, a company with a great track record of experience in the Colombian textile industry, was part of the consultancies in Strategic Brand Review of Inexmoda. They realized they had all the development, knowledge, and potential to venture to create their own brand: Neim.

According to Luis Javier Rodríguez, vice president of operations, after being major producers, after several crises and unlearning to learn, they came to the conclusion that they did not want to be the biggest, but the best.

With flexibility, full value, and sustainability as pillars that move the company, they implemented a change in their business model and decided to create a future for the company. Neim is imbued with a young and timeless DNA that has become Expofaro’s passion.

“Inexmoda was a great support for us; together we created the project of the new brand from start to finish,” says Luis Javier Rodríguez, vice president of operations of Expofaro.

Achievements

  • They created and implemented the essence and DNA of their own brand: Neim.
  • They restructured their business model by understanding market dynamics.
  • The knowledge they had throughout the productive chain was made profitable.
  • They went from selling a product to structuring a business model.
  • After structuring their business model, they went from producing 25,000 daily units to 7,000 daily units, rewarding flexibility and not quantity.
  • Their customers look for less volume but more added value.

Karibik

Expofaro S.A.S

FORMAL PRODUCTIVE CHAINS

More and more companies recognize the importance of staying current in the market–that is why Inexmoda helps to empower them. In Formal Productive Chains, we make alliances with governmental entities so that entrepreneurs of the sector can grow.

Comercializadora Legmoda SAS was one of the companies that was part of the project in 2016, provider of the anchor company, Grupo Uribe. They managed to implement the Lean System, reduce their rework by 88%, and become an S.A.S. (Simplified Joint Stock Company).

Jaime Álvarez, manager of Legmoda SAS, says that they improved their production process, modifying decision-making about personnel and plant structure. Likewise, they implemented process engineering, registered as a brand, and changed their mentality.

Thanks to the project, the company restructured its business model–with quality, short delivery times, and formalization in its processes as their strategy to get new customers.

Some of the achievements made by implementing the knowledge acquired in the program were the following:

Capacity of units produced:

  • Beginning: 6000 units
  • End: 8000 units

*Productivity increased by an average of 33%

Order delivery time:

  • Beginning: 30 days
  • End: 8 days

*Order delivery time decreased by 73%

Number of employees:

  • Beginning: 15 people
  • End: 8 people

*Number of employees decreased by 47%

Average monthly sales:

  • Increased by 80%

Jeyma Confecciones, one of the companies that was part of the Formal Productive Chains project, increased its production capacity, and obtained better financial results, along with the security of continued company strengthening.

John Alexander Torres, organization manager, affirms that–from beginning to end of the program–their efficiency grew by 100% and they are confident of staying on time.

The company was legally formalized, resumed its own brand, restructured its business model to reward quality, shortened delivery times, increased workflow, and implemented improvements in the production process.

Some of the achievements made by implementing the knowledge acquired in the program were the following:

Capacity of units produced:

  • Beginning: 4500 units
  • End: 10,080 units

Order delivery time:

  • Beginning: 30 days
  • End: 8 days

Number of employees:

  • Beginning: 43 people
  • End: 32 people

Average monthly sales:

  • Increased by 44%

A company that reinvented itself to progress

This paisa businessman, who legalized his company on January 15, 2016, joined the program of Formal Productive Chains in 2017 after being nominated by his anchor company Do Jeans Confección SAS.

The history of his company is short: he started with four machines, and little by little, demand forced him to grow by expanding his staff and the number of implements he had. However, as Juan Camilo explains, the knowledge necessary to make his business profitable was missing, so, because of the challenges facing the sector today, he decided to open his eyes and accept that something was not working.

When he began the project, he found the help and push he needed to change things that were not going well within Confecciones Jesem: accumulated losses, profit ignorance, employee payroll that meant headaches, loans, and sales of Juan Camilo’s and his family’s capital to be able to save his dream, his company. “If this year it does not work, I will close it. It is stressful to see losses accumulate and realize the business is not working; I am losing all my savings,” thought the businessman.

In his first class on Change Management, Juan Camilo found the solution: the step his company had to take was to change and learn new work methodologies. “If you believe that education is expensive, practice ignorance,” recalls Jesem’s representative about a phrase spoken by expert Felipe Gómez.  With this he explains that all his mistakes and bankruptcies were due to lack of knowledge.

The transformation

Thanks to the program, Confecciones Jesem became an organization that knows the time of each process, knows its value per minute, decreased its reprocessing by 50%, went from producing 100 units per day to 230, and decreased delivery times from 5 to 4 days.

In addition, before the project, they had 32 employees who produced approximately six thousand garments per month; now 22 members achieve up to a thousand more. Each employee has a salary and benefits, without delays in payroll, leaving profits for the organization’s growth, which for 2018 is projected to have more production capacity and an alliance to export to Canada.

Employees

  • Before: 32 people
  • Afterwards: 22 collaborators

Delivery times

  • Before: 5 days
  • Afterwards: 4 days

Production capacity

  • Before: 5,900 garments a month
  • Afterwards: 7,000 monthly units

An example of evolution and transformation

“It’s as if I was walking around all the time with a blindfold on my eyes and they took it off,” says Germán Ricardo Fierro Bonilla, manager of JK’S Confecciones, of the Inexmoda project in partnership with the Ministry of Commerce, Industry and Tourism, with resources from the European Union, Formal Productive Chains—EPF.

The Ibagué businessman was part of the 2014 EPF, the program that accompanies transformation and seeks to make organizations of the textile-clothing industry more competitive in the market. JK’S Confecciones found this opportunity thanks to its current anchor company, the “Carolina Group”, and from the first session the participants realized the course would take them far.

The company was born 12 years ago when Germán Ricardo and his wife Jenny Valencia, with knowledge and experience as operators of the sector, decided to take out a loan and buy three machines, among them a sewing machine and a serger. The two of them began to work alone in their living room, without knowing very well where they were going.

“We stayed at the same point for two years. We did not regress, but neither did we advance. We already had collaborators, but we basically only made enough to pay them. We did not have a fixed salary, nor an accounting system, and we handled everything empirically,” explains the Manager of JK’S Confecciones.

From the first session of EPF they tried to put everything they learned into practice. By implementing the acquired knowledge they began to realize what they were missing in order to progress and avoid stagnating.

The transformation

Thanks to EPF they rented a locale; work schedules were established; an accountant handled their finances; the 5S guidelines were implemented at each work station; employees were paid fairly, including social benefits; and an occupational therapist was hired to give motivational talks to employees, caring for their well-being and quality of life.

Among the things they learned was to retain the way they became specialized. Before, they made shirts, shorts, boxers…everything their clients asked for. EPF was clear: they had to focus on only one thing in order to produce the highest quality, so they decided to go for what they did best: pullovers. With their business officialized and documents up to date, they were ready to take on big companies like Totto Bogotá and Roott + Co of Ibagué.

Employees

  • Before: 4 people
  • Afterwards: 13 collaborators

Machines

  • Before: 3 machines
  • Afterwards: 18 machines

Delivery times

  • Before: did not have a standard… did not meet deadlines, were delayed up to 15/20 days
  • Afterwards: strict delivery dates twice a week

Monthly sales

  • Before: 2 million COP (Under $700 USD)
  • 4 months after starting with EPF invoicing went up 25%
  • Afterwards: 18/25 million COP per month ($6-8,000 USD)

Production capacity

  • Before: There was no record
  • Afterwards: 800 garments a day

ÉPICA: INNOVATION CHALLENGE

Elena Plus Size

EPF - Risaralda

EPF - Cúcuta e Ibagué

Creaciones CYY

Legmoda S.A.S

Advantage

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