DBCB3326

FINAL YEAR REPORT

SITI NUR AISYAH BINTI HAMALI

TERM 202012

FACULTY OF BUSINESS

CITY UNIVERSITY

DECEMBER 2020
 ABSTRACT

This project paper describes companies that sell items for male and female, such as
shoes, clothes, belts, socks, and accessories through various subsidiaries. Padini and
Vincci brands are the most famous brands. Exports of goods to the Middle East and
Southeast Asian countries. Padini Holdings Berhad, based in Malaysia. It is a company
of finance holding. I have included in detail about the company, such as history, vision
and mission, location, size of the company, organizational structure, products and
services, marketing information, and future plans of the company, and also swot
analysis which is strength, weaknesses, opportunities, and threats.

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 ACKNOWLEDGEMENTS

First, I want to express my thanks to the Almighty God for giving me the ability to
complete this project paper successfully. Words are not enough to express my
thankfulness to people that had been helped me during the process.

In preparation for the project paper, I should take some people respected for help and
guidance, who entitled my deepest thank you.

As the finish of this final project paper gives me pleasure, I would like to show thank
you and respect to Sir Mohd Akmal Bin Mohd Aduros for providing me this project
paper with a good guideline.

Besides, for those who have guided me directly and indirectly in writing this project
paper, I would like to thank you for your guide. Many people have helped me, such as
guidance, support, and valuable experience during my journey to completing this
project paper, especially my parents and colleagues.

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 TABLE OF CONTENTS

CHAPTER 1 INTRODUCTION .................................................................................. 1

1.0 INTRODUCTION.............................................................................................. 1
1.1 COMPANY NAME AND LOGO ........................................................................ 2
1.2 VISION AND MISSION .................................................................................... 2
1.3 LOCATION....................................................................................................... 3
1.4 COMPANY SIZE .............................................................................................. 4
1.5 HISTORY OF THE COMPANY ........................................................................ 4
1.6 ORGANIZATIONAL STRUCTURE ................................................................... 5
1.7 PRODUCTS AND SERVICES........................................................................ 11
1.8 MARKETING INFORMATION ........................................................................ 13
1.8.1 PRODUCT .............................................................................................. 13
1.8.2 PROMOTION .......................................................................................... 14
1.8.3 PRICE ..................................................................................................... 15
1.8.4 PLACE .................................................................................................... 18
1.9 FINANCIAL STATEMENT INFORMATION .................................................... 19
1.10 FUTURE PLANS OF THE COMPANY ........................................................... 28
CHAPTER 2 COMPANY ANALYSIS ...................................................................... 29
2.1 SWOT ANALYSIS .......................................................................................... 29
2.1.1 STRENGTH OF THE COMPANY ............................................................ 29
2.1.2 WEAKNESSES OF THE COMPANY ....................................................... 30
2.1.3 OPPORTUNITIES OF THE COMPANIES ............................................... 31
2.1.4 THREATS OF THE COMPANIES ............................................................ 32
CHAPTER 3 PROBLEMS AND SUGGESTIONS ................................................... 33
CHAPTER 4 CONCLUSION AND RECOMMENDATION ....................................... 34
REFERENCES ........................................................................................................ 35

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 CHAPTER 1 INTRODUCTION

1.0 INTRODUCTION

Padini Holdings Berhad, based in Malaysia, is an investment holding company.

Headquarters of Padini Holdings Berhad situated at Hicom Glenmarie Industrial Park,
Shah Alam. The company was established in 1971 for Hwayo Garment Manufacturers
Company trade name property. In 1975, the founder of Padini Holdings Berhad was
Mr. Yong Pang Chaun at Johor Bahru City Square, Johor Bahru. Its companies sell
items for men, women, also children, such as belts, shoes, socks, clothing, cap, and
accessories. The Padini Holdings Berhad Company involves manufacturing activities,
trade, and distribution of products to retailers and distributors. The Padini Holding
Berhad company is a franchise company, and this company has 330 retail stores in
Malaysia and worldwide. Padini Holding Berhad has various brands under the name
of Padini Holding Berhad, such as Padini Authentics, rope, PDI, Seed, P&Co, and Miki,
Brands Outlet and many more. The most famous brands are Vincci and Padini. The
products are export to Southeast Asian countries and the Middle East.

The products are selling at concept stores and major stores. Padini Concept Store is
an idea that puts every brand of Padini Holdings under one-stop-shopping. In 1999,
the first store started at Johor Bahru City Square, Johor Bahru. Padini Holdings Berhad
concentrates on fast-paced retail, which in a few weeks, new products will be online.
At present, its spread throughout the country with a store location at Pavilion Kuala
Lumpur, Mid Valley Megamall, and many more.

According to Philip Kotler (2000) states that the marketing mix is a combination of
marketing variables such as products, prices, promotion, and distribution. Marketers
can control to use as tools in marketing planning tactics.

The reason is why I chose Padini Holdings Berhad because I like brands and love to
style myself with jeggings, blouses, shirts, and shoes from PDI, Padini Authentics, and
Vincci.

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1.1 COMPANY NAME AND LOGO

PADINI HOLDINGS BERHAD

Figure 1.1 : Logo of Padini

1.2 VISION AND MISSION

VISION
Although these statements only determine the perception of the organization about
what they should do, the organization has planned strategy is much more complicated.
To be the best fashion company ever is the vision statement of Padini. Although stated
directly, they have been striving to attain this purpose for a long time. The vision
statement also indicates the companies have bigger plans and not propose to stay in
the province current for being the finest style company will determine the company is
the finest wherever. However, the brand is well-known in the Southeast Asian region
but in the Middle East less famous. Not only to attract the Asian region but also to
defeat the rivalry in different areas of the worldwide is also to become the best.

MISSION
Padini mission statement declares that it requires better customer expectations. and
as well as its brands, which indicates that the organization is wary of its products to
meet the needs of users efficiently. As an organization that does business directly with
customers, it has to demand extensive knowledge, and it became the reason why it
grew in the Middle East sector.

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1.3 LOCATION

Office Padini Holdings Berhad situated at Hicom Glenmarie Industrial Park, Shah
Alam.

PADINI HOLDINGS BERHAD (50202-A)

No. 19, Jalan Jurunilai U1/20,
Hicom Glenmarie Industrial Park,
40150 Shah Alam,
Selangor Darul Ehsan,
Malaysia.

Tel: 03-5021 0500

Fax: 03-7805 1066
Website: http://corporate.padini.com/

Figure 1.2 : Location of Padini

https://www.google.com.my/maps/placed/Padini+Dot+Com+Sdn+Bhd/@3.090503,10
1.5628918,17z/data=!3m1!4b1!4m5!3m4!1s0x31cc4db6ed3f5163:0xda1d3c8812859
59e!8m2!3d3.090503!4d101.5650805

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1.4 COMPANY SIZE

There are more than 4000 employees around the world who work with Padini Holdings
Berhad.

1.5 HISTORY OF THE COMPANY

Padini started running in 1971 as a Hwayo Garment Manufacturer Company. It merged

within the manufacture, including wholesale of clothing. In 1975, the brand entered the
local industry with lead brands Padini. In 1986 Vincci organized to market offering
items for the female consumer such as belts, shoes, and other accessories. The
following decade, they launched many brands, including label Padini Authentics, rope,
PDI, Seed, P&Co, and Miki.

In 1991, Home Stores Sdn Bhd started conducting all the company concerned into
wholesale, manufacturing, and retail in 19991. That changed to its current name, a
year later Padini Holdings. Padini Holdings Sdn Bhd changed toward public limited
companies with shares also used Padini Holdings Berhad name furthermore was
following recorded in 1995 Kuala Lumpur Stock Exchange on the Second Board.

Padini Dot Com Sdn Bhd formed to give business services of electronic also
explanations to the Group in 2000. Padini Holdings moved to the KLCI (Kuala Lumpur
Composite Index) Main Board of Bursa Malaysia in 2005.

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1.6 ORGANIZATIONAL STRUCTURE

Mr. Chia Swee

Yuen

Mr. Yong Pang

Chaun

Madam Mr. Lee Mr. Andrew Benjamin Ms. Chew

Mr. Foo Kee Ms. Sung
Chong Chin Peng Yong Tze Wong Tze Voon
Fatt Fong Fui
Lindsay Khoon How Jet Chyn

Figure 1.3 : Organizational Structure of Padini

Chairman
Mr. Chia Swee Yuen is the Independent Non-Executive Chairman of the Padini Board
of Directors since 2 May 2014. He graduated with a Bachelor of Accounting from the
University of Malaya. Mr. Chia Swee Yuen is an Accountants Institute member. He
was the Certified Credit Professional (Business) Examination Committee member from
Chartered Bankers of Asian Institute Chartered Bankers, previously known as Institute
Banks Malaysia. His contributions recognition and services to the chartered banker
and his Asian Institute banking industry was selected by the Council as an Associate
Member of the Asian Institute of Banks with Passionate Banks.

In 1980, he began his career with SGV-Kassim Chan Sdn Bhd, a management
consulting firm, conducting research on financial and marketing qualifications, financial
training, the process of operational reviews,

From 1984 to 1987, he joined Malaysian Resources Corporation Berhad, a group

entering the group with manufacturing, credit card, trade, credit and leasing
businesses, property construction and development areas, accounting and taxation,

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responsible for corporate planning, information technology, and general administrative
areas.

From 1988 until his retirement in 2015, the financial year, he must work in the banking
sector, branch management, leading various marketing fields, credit operations, credit
evaluation and risk management with AmBank (M) Bhd and Overseas Union Bank (M)
Bhd. The customer segment operated basically in the business of banking.

In addition to Padini Holdings Berhad with his directorship, at New Hoong Fatt Holdings
Berhad as independent non-executive director. Under review for the financial year, he
has attended all five Board meetings

Figure 1.3 : Managing Director and Executive Director of Padini

Managing Director and Executive Director

Mr. Yong Pang Chaun is Padini Holdings Berhad Managing Director and Executive
Director since 26 March 1992. A manager in the clothes industry and textiles with great
extensive experience remains essentially responsible for the Group performances.
Later finishing his secondary study, he entered a textile dealer in Singapore. Wherein
in the textile trade, he gained much experience.

A few years later, she returned to Malaysia in 1971 to set up her first subsidiary to
produce women's styles. From there, the different companies developed, and since
then, he ever devised strategies for Group expansion. The Group's recent brand
success and brand presence in the domestic market today is entrepreneurial skills

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proof. Its capacity to investigate fashion trends and respond quickly to benefit from
changes in market conditions and consumer choices have provided the Group has
caused great chances for the continued increase. Today, he proceeds to lead the
strategy and ideas for the Group's future.

In addition to Padini Holdings Berhad and his directorship, he does not serve to be a
director in another public company. Under review for the financial year, he has
attended all five Board meetings.

Executive Director
Madam Chong Chin Lin is Padini Holdings Berhad Executive Director since 29 March
1995. While form six in the second year, she enlisted the help in the family business
for dealing with retail and wholesale fashion accessories and costume jewelry. After
three years in the trade field with gained much experience, she moved and entered a
fashion boutique retailer. In 1981, it established Vincci Ladies Specialties Center Sdn
Bhd. She combined with Vincci Ladies Specialties Center Sdn Bhd as a merchandiser
to female style clothing also accessories. Suddenly, she has served with the Group
and has made significant contributions against Group's leading brand's expansion,
such as Padini Authentics, Seed, also Miki. As a female fashion trader, she is involved
in garment manufacturing operations and then can do this experience to oversee the
garment manufacturing operations of the Group.

In addition to Padini Holdings Berhad and his directorship, she does not serve to be a
director in another public company. Under review for the financial year, she has
attended all five Board meetings.

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 Figure 1.4 : Non-Executive Director of Padini

Independent Non-Executive Director

Mr. Foo Kee Fatt has been Padini Holdings Berhad Independent Non-Executive
Director since 2 January 2009. He is the Accountants Malaysian Institute member, the
Malaysian Statutory Tax Institute, and Certified Public Accountants Malaysia Institute.
Under the Malaysian Companies Act 2016, he was approved to be the company
auditor. In 1987, he was joined and proffered an article with the internationally
renowned accounting firms is one of them. He served with a local accounting firm,
including an international coalition from 1993 to 2006. He is now in the training of the
public.

In addition to Padini Holdings Berhad and his directorship, Can One Berhad and MMS
Ventures Berhad, he serves as an independent non-executive director. Under review
for the financial year, she has attended all five Board meetings.

Independent Non-Executive Director

Mr. Lee Peng Khoon has served as Padini Holdings Berhad Independent Non-
Executive Director since 6 January 2014. In 1878, at chartered accountants’ firm in
London, he qualified as a Chartered Accountant. He is the Accountant Malaysian
Institute member and the Chartered Accountants Institute at England and Wales. In
1981, his return to Malaysia, he merges four audit firms as a senior audit and later as
a manager of the audit. Later, in public and private companies such as property,
development, plantation, credit financing, countertrade and trade financing production,
and trading, investment holding, and leasing and engineering in the oil and gas sector,

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all he holds as senior management. He is now a self-employed general consultant.

In addition to Padini Holdings Berhad and his directorship, he does not serve to be a
director in another public company. Under review for the financial year, he has
attended all five Board meetings.

Executive Director
Mr. Andrew Yong Tze How has been Padini Holding Berhad Executive Director since
3 December 2015. He graduated with a Bachelor in Computer Science from California
State University, Northridge in Los Angeles, California. He worked at prudential,
served as a system operator and AS400 programmer contracted with Patimas PSG
from April 2006 to May 2008.

In June 2008, he entered Padini as supervisor of Information Technology at Padini Dot

Com Sdn Bhd, which manages every information technology assets for the Group,
information technology operations, and system implementation. In August 2015, he
was promoted to General Manager of Operations. He needs to manage, supervises,
and direct the overall operations of the support group.

In addition to Padini Holdings Berhad and his directorship, he does not serve to be a
director in another public company. Under review in the financial year, he has attended
4 out of 5 Board meetings.

Executive Director
Benjamin Wong Tze Jet has been Padini Holdings Berhad Executive Director since 15
July 2016. After graduating from the University of Melbourne in Australia with a
Bachelor of Arts, Media, and Communication in 2005, Benjamin Yong began his job at
the Padini Merchandising department as a Merchandising Assistant in the same year,
September. In 2007, he remained promoted as a merchant, and in 2009 he was
selected to be Brand Manager for Padini Workwear. He is presently the Head of
Design, Merchandising, and Trade Group and accountable to every management,
expansion also structure plan, local merchandise, in addition branding activities
assigned to him.

In addition to Padini Holdings Berhad and his directorship, he does not serve to be a
director in another public company. Under a review of the financial year, he has been
present at all five Board meetings.

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Executive Director
Ms. Chew Voon Chyn has served as Padini Holdings Berhad Executive Director since
20 February 2017. She graduated with a bachelor's degree in Business Administration,
majoring in Design and Management at Parsons School of Design in New York. In
2005, she worked at Calvin Klein Jeans, New York as a merchant assistant. From
August 2005 to July 2007, she joined Vincci as Design and Merchandising Executive.
In August 2007 to June 2009, she reappointments as Developer Trends with
Merchandiser manages the Research and Development division. From July 2009 to
December 2013, she promotes to Brand Manager to Vincci Accessories and Vincci.
From January 2014 to now, he has become the brand manager to Vincci the whole
group.

In addition to Padini Holdings Berhad and his directorship, she does not serve to be a
director in another public company. Under a review of the financial year, he has been
present at all five Board meeting

Chief Financial Officer

Ms. Sung Fong Fui was promoted to be a Board of Directors on 23 May 2018. She
now holds the place of Padini Holdings Berhad Chief Financial Officer. She is
Accountants at the Malaysian Institute member and a Chartered Certified Accountant
member in the United Kingdom.

She has experienced more than 18 years in audit and assurance, listing, and corporate
consulting jobs. In May 2017, before joining Padini, she has an audit co-worker at a
big international accounting firm and as a firm technical co-worker. In addition to the
audit, she has the various experience that includes due attention reviews, industry
advisory work, and professional support for the involvement of corporate training that
varies from an opposite takeover, initial public contributions, and others. Responsibility
customers include domestic and international organizations covering a broad spectrum
of businesses.

In addition to Padini Holdings Berhad and his directorship, she does not serve to be a
director in another public company. Under a review of the financial year, he has been
present at all five Board meetings.

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1.7 PRODUCTS AND SERVICES

PRODUCTS
The most important products bought by Padini are clothes, shoes, bags, also
accessories. Besides, there are several products available at Padini, and all of them
are under the Padini. Each product marks a style school of thinking, and each one of
the philosophies requires a lot of product selections that are aims to target consumers.
Their brand image may be very tied important to an actual value such as price, quality,
and operation.

There are nine exceptional brands under Padini, which may be Padini, Seed, Padini
Authentics, PDI, P&Co, Miki, Vincci, Vincci Accessories, and Vincci Mini. All of the
brands targeted customers of both male and female, and every age range through their
two multi-brand labels that carry their brand. However, Vincci and Vincci Accessories
have a tendency to be a focus at the flexible desires likes of woman customers such
as totes, shoes, and accessories, also Seed Cafe has opened up a new dimension in
food procedures because of its company. Padini focuses great on fundamental and
family’s lifestyle and aimed at everyone who loves and praises casual stylishness.
Padini gives a lifestyle that is important to current working male and female. The Padini
collection brings a clean, timeless, also current lifestyle. The brand concentration in
proper attire also centralizes the purchaser base for employees. Padini has rolled out
some ties, shirts, coats and belts.

The Seed brand is a typical, casual self-confidence and also relaxing design. Brand
Seed emphasizes the exceptional designs for male, female, also children. The reason
stands to face out style. Seed brand focuses on city workplace attire for the public.
Clothing under these collections are generally jackets, typical office shorts, semi-
formal skirts, belts, and basic jeans. In addition, the Seed cafe reflects clever and
current theories that jell with Seed products that look youthful and fashionable.

Vincci looks amusing and stylish. The importance is reasonable, from hair accessories
to trendsetting shoes, bags, attractive eyeglasses, and style belts. Furthermore, to
Vincci accessories bring one of the maximum comprehensive appearances of
accessories from necklaces, shoes, bags, and many more in all the newest styles.

PDI is to emphasize the importance of an admissible everyday style at any time. Its
intention to let any boy or girl get the fashion of fixing one of the latest style jeans,

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socks, jackets, belt, and even accessories in a buyer-friendly situation. Padini extra
concentration on basic and family lifestyles and aimed at everyone who loves and
praises informal style.

Padini Authentics was easier for everyone. Padini Authentics style focusing on the
quality of informal clothing. It targets teenage market segments. It sells up-to-date
shirts, stylish jeans, jackets, shirts, and fashionable dresses.

Miki Kids takes on the issue matter of fun in style everywhere and sometimes. Clothes
design with the idea of a lively and cheerful color to fill up any young person. Miki kids
are suitable for infants aged 1 to 11 years old. These are because children still take
their possible, and parents are more and more willing to spend money on their children
garments. Miki maternity designed remains for mother fashionable. Miki maternity
wears all clothes as well as clothes that suit pregnant women at the same time
accentuate the style.

SERVICES
Customer service is handled in a variety of ways. One of them is to call the required
services on the websites and at the store. Padini aims to respond, which involves
consumer expectations, security threats, and regulations regarding data privacy.
Customers can get help through this customer service during working hours. The
workers have been training to give the best customer services they can offer because
of their performance based on customer ratings and how they threaten their
performance. In this case, the employee must be the ones who talk a lot and approach
their customer to help answer their questions and solve their problems with Padini
clothing.

The quality of service is trying to achieve and maintained by the company is to meet
that customer's needs and preferences. The skill of a company is by rewarding their
workers and realize their talents and potential for communication skills services among
the workers. Besides, they also threaten the individual information of their customers,
workers, and other stakeholders in a very respectful and transparent manner. They
also put in place all the essential steps to ensure at all individual data providing is
secure.

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1.8 MARKETING INFORMATION

1.8.1 PRODUCT

Padini products are under the user's product group as a shopping product. Padini itself
has other alternative brands under it. Anyone will find Vincci, Vincci Accessories, Vincci
Mini, Padini Authentics, PDI, Padini, Seed, Mickey, and P&Co.

PDI is to emphasize the importance of an admissible everyday style at any time. Its
intention to let any boy or girl get the fashion of fixing one of the latest fashion jeans,
T-shirts, jackets, informal basic-T, belt, socks, and even accessories in a buyer-friendly
environment. Padini more concentration on basic and family lifestyles with aimed at
anyone who likes and praises the informal style.

Padini provides an important working lifestyle for working men and women now.
Padini's collection has an incredible, clean and modern working lifestyle. The brand
focuses on official clothing and centralized customer bases for employees. Padini has
launched numerous ties, belts, shirts, and caps.

The Seed brand is a typical, casual self-confidence and also relaxing design. Brand
Seed emphasizes the exceptional designs for male, female, also children. The reason
stands to face out style. Seed brand focuses on city workplace attire for the public.
Clothing under these collections are generally jackets, typical office shorts, semi-
formal skirts, belts, and basic jeans. In addition, the Seed cafe reflects clever and
current theories that jell with Seed products that look youthful and fashionable.

P&Co focuses on the feminine market and launches all women's skirts, necklaces, and
even hot jeans. On the same record which they thrive in the fashion of bold new ideas.
Women are the large customer base for P&Co because they know that women are the
most likely customer and most people who are willing to spend money in the style.

Miki Kids takes on the issue matter of fun in style everywhere and sometimes. Clothes
design with the idea of a lively and cheerful color to fill up any young person. Miki kids
are suitable for infants aged 1 to 11 years old. These are because children still take
their possible, and parents are more and more willing to spend money on their children
garments. Miki maternity designed remains for mother fashionable. Miki maternity
wears all clothes as well as clothes that suit pregnant women at the same time

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accentuate the style.

Vincci looks amusing and stylish. The importance is reasonable, from hair accessories
to trendsetting shoes, bags, attractive eyeglasses, and style belts.

Furthermore, to Vincci accessories bring one of the maximum comprehensive

appearances of accessories from necklaces, shoes, bags, and many more in all the
newest styles..

1.8.2 PROMOTION

Padini Holdings Berhad using a combination of the various promotional that is called
the promotional mix. The company does advertise and sales promotion. Advertising is
one way of mass communication that is disinterested regarding a product. The benefit
of advertising is that Padini will have the ability to communicate with some people at
one time. The cost per contact very low because advertising can reach a large number
of people. Somehow the advertising can be expensive depending on the number of
targeted customers. Padini advertising method is through the websites at Padini.com
customers can even subscribe to their websites to get updates on the latest trends.
Another method is through email and interactive video that they create on their
YouTube channel to present their latest collections.

Sales promotion is an activity where short-term incentives are offered to customers to

prompt the purchase of certain goods or services directly, both by dropping the price
or addition the value. The objective of sales promotion is to encourage repurchase and
support and improve the effectiveness of advertising. For example, in 2019, Padini
held four days of the special storewide sale at all concept store outlets from 25 to 28
October. Padini Brand Outlet approval at selected stores from 29 August to 16
September, but the promotion is valid at Brands Outlet I-City, Ampang Point, The Main
Place, Paradigm Mall Johor Bahru, South key Mall Johor Bahru, Design Village
Penang, Bandaraya Melaka, and Aman Central Kedah. The items offered as low as
RM10.

Promotion strategy is a coordinated plan for the optimal use of the promotion elements,
be it advertising, personal sales, sales promotion, and public relations. Padini and their
promotion strategies to reach their target customer.

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During the Padini Group Fair, known as Mega Carnival Sales, there are usually
discounts of up to 70%. The promotional strategy will fall in March, August, December
each year with the terms and conditions to be applied to it. During the Mega Carnival
Sales period only, customers cannot apply for registration of a new member card
because the member card can only use at the regular time when there no sales are
made. At the end of the sales, the company will add 10% more discount for most items.
It’s because the companies want to clean up the balance of the remaining stock, and
they need to impulse the sales to get maximum profit.

Padini Holdings Berhad business have changed promotion every season, such as
during spring, summer, fall, and holidays. The expensive products will get discounts a
whole year. On the other hand, cheap products will get rebates only this season.

For Padini Authentics doing promotion, like the customers will get RM30 discount with
purchase RM150 and RM70 with purchase of RM300 at the store, while the PDI,
promotion for the customers is they will get RM15 an instant rebate with any purchase
of RM100 at the store.

Followed by, Vincci and Vincci Accessories, the customers will get RM10 immediate
rebate with buying RM50 and above, and RM20 for buying of RM100 and above. The
promotion offered by Seed is the customer will get an instant discount of RM30 with
every buying of rm150 in the store. Next, P&Co do their promotion by providing an
instant rebate of RM20 with any purchase of RM100 at the store. Promotion strategy
for Padini, customers will become a discount of RM30 with any buying of 2 pieces.

Besides, Padini Group Fair, famous as the Mega Carnival Sales, will get a 70%
discount. These sales will fall in March, August, and December every year. Specific
terms and conditions will apply to it. When the sales are almost over, Padini will give
an additional 10% discount to the customers up to 80%. It is for Padini wants to clear
the stock, and at the same time, they are trying to achieve their sales targeting.

1.8.3 PRICE

Pricing is the most crucial components in the marketing mix as it is the only mixture
that creates sales for the company. Prices must reflect the relationship between

15
demand and supply. If the product cost is too low or too high, it can imply a business
loss. Padini companies price objective is sales related objectives. It’s because the
company is trying to increase the volume and market share, and as the volume
increases. It measured against the company’s sales during the period.

The main objectives related to the sale prices include sales growth, targeting market
share, and increasing market share. Padini company assumed that sales growth has
a direct positive impact on profits. Therefore, the pricing decisions are taking such that
the volume of sales can increase by setting the price, changing, or modifying the
policies targeted to increase sales.

Pricing decisions are taking in such a way to enables Padini to reach the targeted
market share. Market share is a specific volume of sales determined in the light of total
sales in the industry. Sometimes, the cost and pricing are taking as the tools to
increase market share. For example, if the market share of Padini is lower than
expected, it can be raised with the appropriate price because the price aims to increase
the market share.

As we all know, Malaysians are classified as upper-middle-income countries and

regarded as one of the most advanced among developing countries. Padini does its
best to set a reasonable and affordable price for their customer. Medium-income
households defined as those earning between RM1500 and RM3500 a month and
have increased the total household population in 1995, from 32.3% to 37% in 1999.

Low-income groups, categorized with a household income of up to RM1,500 a month,

spend a part of this amount on food. Meanwhile, high- and middle-income households
spend most of their money in hypermarkets. 3.4% of their income spent on clothing
and footwear. The lifestyle of Malaysian consumers has changed for the better due to
the increasing level of education.

High profile retailers and the global mass media has set customer purchasing behavior,
which caused Malaysians to be more westernized. The leisure life of Malaysians
revolves around fashionable shopping malls. Therefore, Padini Holdings Bhd should
be more up to date with the latest trends. They should advertise and provide
information to consumers and remind them that they are still there and give customers
quality and trendy clothes.

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Padini company gives an affordable and reasonable price to customers. The price
range of Padini products is between RM9 to RM109. For PDI products, it is between
RM13 to RM199, and for Seed products, it is between RM13 to RM99.

Seed and Padini designs are extra classics. The company bears the cost of market
reductions and sets a higher price for Seed and Padini to get profits layer-by-layer from
those who tend to pay the high price. Both of these brands are high-quality price,
especially for the use of a relatively high customer base. High customer base usage is
those who buy a bundle of pieces at one time. Seed and Padini production are much
lower than other brands because the high customer base usage will be lower. The
company makes selling fewer but more profitable.

Besides, PDI, Padini, and Vincci are much more affordable. The company holds the
cost of market penetration primer set prices low for PDI, Padini Authentics, and Vincci
to seep into the market in depth. Both brands sold at low prices and more focused on
the customer base middle class. The product prices of both brands are low and
reasonable. This is because there is intermediate income from the customer base as
opposed to the high use of customer bases. PDI and Padini traditionally attract many
customers because of the cheap products.

The price of products or services Padini greatly affected by added elements of the
marketing mix. The life cycle of a product through, which it is a product or type of sale-
lease versus yesterday purchase or liberal return policies can follow. In the introduction
of their product life cycle, the price may be high. So, the product requires service, and
the service will be given free of charge. Naturally, the product will be highly-priced.
Other factors influencing price decisions are the distribution channels, warehousing
location, and the transportation involved. Padini can get the manufacture at a lower
price, and companies can sell their products directly to their customers.

17
1.8.4 PLACE

Padini Concept Store carries the concept of all in one. Thus, customers will be happy
to shop there. Various modern styles can be select by the customer. All they need is
in one store. Most Brands Outlet will be located in shopping malls rather than
hypermarkets. Because the design of the shopping malls is more attractive to attract
more customers.

Padini is one of the most well-known brands in the multi-billion-dollar clothing industry
in Malaysia. The brand leader, involved in the distribution and retailing of fashion labels
through 180 independent stores and in-house outlets. It includes the multi-brand stores
of Padini Concept Store and Brands Outlet.

Padini has many branches in Malaysia. In Malaysia, it divides into two parts, namely,
west and east. The shopping mall will select the location where the Padini Concept
store. It is because the shopping mall has more people. For example, Queensbay Mall
and Gurney Plaza at Penang. It will choose the only shopping mall that is trendier for
that city.

Padini has two types of stores, namely Brand Outlet and Padini concepts store. The
aim of has Padini concept store is because of the concept of one-stop-shopping. With
all the brands that can be achieved only in one store, choice set to create a fashion
revolution. Besides, certain brands specialize in items such as Graphic Tees, Polo-
Tees, and Pants. With a variety of styles and labels, Padini Concept Store does not
only serve everyone regardless of age, sex, and taste. It also allows shoppers to mix
and match easily in one location, perhaps by matching with another brand
merchandise to fulfill their style needs. The brands are Vincci, Vincci Accessories,
Vincci Mini, Padini Authentics, PDI, Padini, Seed, Miki, and P&Co. Whereas, Brands
Outlet is the most attractive concept of Padini Group. Already a fashion force in
Malaysia with brands such as Padini, Seed, PDI, Vincci, and P & Co., the group
decided to introduce a different shopping experience based on the main idea of
convenience, quality, variation, and affordability.

Padini Concept Store is available at Aeon Bukit Tinggi (Klang), Melawati Mall (Kuala
Lumpur), Mitsui Outlet Park (KLIA) IOI Mall (Puchong), IOI City Mall (Putrajaya), Aeon
Bukit Indah (Johor Bahru), Dataran Pahlawan Mall (Melaka ), Kuantan City Mall
(Kuantan), Queensbay Mall (Penang). Palm Mall (Negeri Sembilan), and many more.

18
1.9 FINANCIAL STATEMENT INFORMATION

Figure 1.5 : Statement of Financial Position

19
Cont.

20
Figure 1.6 : Statement of Profit or Loss

21
Figure 1.7 : Consolidated Statement of Changes in Equity

22
Figure 1.8 : Statement of Changes in Equity

23
Figure 1.9 : Statement of Cash Flow

24
Cont.

25
Cont.

26
Cont.

27
1.10 FUTURE PLANS OF THE COMPANY

Homegrown style store Padini Holdings Bhd anticipates the economic prospect for the
remainder of 2020 and 2021 will be difficult because of the uncertainty posed by Covid-
19 and the careful measures to restrain the epidemic. In the yearly report 2020, its
chairman Chia Swee Yuen said that even before the coronavirus advent, worldwide
economic upheaval, trade war, money fluctuations, and stronger area rivalry had made
it difficult for commerce to work.

He said that all Padini outlets were shut down during the Movement Control Order
(MCO) since mid-March to mid-May, whereas traces were still low during the next
Recovery Movement Control Order (RMCO) because a few people visit the malls. He
said the merchandizing industry experienced an important decline, and their business
has also been affected. Mr. Chia also said the group continued to implement measures
to control costs, optimize working capital, preserve cash, and coordinate its operations
to overcome the impact of the outbreak. He added that Padini adapts to changes in
new pandemic norms consumer behavior, including in-store shopping and digital
retailers. Fashion retailers are also more focused on expanding their digital retailing
furthest to expand their purchasing channels for customer convenience and future
development. They will continue to monitor overseas markets for opportunities to
expand their market presence in Asia, particularly ASEAN countries.

He added that the group was careful to steer the current crisis and provide long-term
value to shareholders, given the consistent implementation of strategies to manage
the upper and lower lines, as well as opportunities to see greener grass. During the
financial year ended 30 June 2020 (FY20), Padini's net profit increased, divided into
RM75.17 million from RM160.17 million a year ago, while revenue fell 24% to RM1.35
billion from RM1.78 billion.

Closing 30 June 2020 in the fourth quarter (4QFY20), Padini reported a net loss of
RM16.84 million compared to a net profit of RM16.62 million in the previous quarter,
which ended on March 31. This marks the first time Padini has recorded an annual
interest loss since 2004 when it reported a net loss of RM2.3 million in 4QFY04. The
annual rate was divided to RM174.2 million from RM347.32 million in 3QFY20. From
year to year, Padini recorded a higher fall than the net profit of RM54.43 million in
4QFY19, while revenue also fell by 66.27% from RM516.47 million. Padini received
three dividend payments of 2.5 cents for each common stock each for FY20.

28
 CHAPTER 2 COMPANY ANALYSIS

2.1 SWOT ANALYSIS

2.1.1 STRENGTH OF THE COMPANY

First, Padini is the largest clothing brands in Malaysia. Padini provides various types
of clothing styles regardless of the category of male, women, or Kids. The price range
of clothing is wide. Some of the co-brand carried by Padini are Seed, Padini Authentics,
PDI, P&Co, Miki, Vincci, Vincci Accessories, and Vincci Mini. Padini products are
suitable for all types of users regardless of the teenager, adult, or children. For
example, Vincci sells women accessories, Miki sells children and mother care
products. Padini does our best to ensure that their competitors do not pose a threat to
Padini. Everyone can find Padini at almost every shopping center, which has held in
Malaysia. Besides, Padini always provides the highest quality products to its users.
These are because Padini wants to satisfy customer satisfaction.

Second, Padini has a strong brand perception for opening its stores are not only in
Malaysia but also in Qatar and Pakistan in 2010. After that, it expanded its presence
abroad by adding stores in Bahrain, Egypt, and Morocco (North Africa) in 2011. Padini
is known not only in Malaysia but also known in further countries.

Third, Padini takes the strength to have a good cost advantage. The brand under
Padini Holdings Berhad is Vincci. Padini has given the award of the Putra Brands Most
Promising This Year at Putra Brand Awards. These indicate that Padini has a cost
advantage as they sell high-quality clothing that is sold at a low price when compared
to other brands.

Next, Padini also takes the strength to has a highly skilled workforce. According to The
Star, the creative director of Padini has said that Padini trains their staff well, and they
also make sure that they are hiring the right people.

Finally, Padini also has financial resources well because, in 2012, Padini Group was
known as the Top 30 Most Valuable Brands in Malaysia and valued by Interbrand at
RM260 million. These indicate that Padini can still operate as a strong brand in the
event of a recession in Malaysia.

29
2.1.2 WEAKNESSES OF THE COMPANY

In a competitive market, launching new products is always a good idea to attract

customers. However, Padini lead time is longer than its competitors, such as H&M and
Zara. It is one of the weaknesses that affect Padini brand position in the minds of
customers. Almost all clothing company products are launched four times a year, with
a new release every season. The new designs were released Padini usually slower
than its competitors. Its reasons customer satisfaction to decrease because the
products displayed in Padini stores do not differ when customers visit their store
several times in a certain period. H&M and Zara take a minimum of a few weeks to a
maximum of six months to launch new products. Besides, from designing to delivering,
Padini needs around two to six months to complete the launch of a new product. Based
on the report from Alliance Research, Padini's clothing design delivered to the original
equipment manufacturer (OEM) to produce samples. The design department will
review the sample products and make some changes before confirming their
production. After verifying its production, it takes around one to three weeks to send
new products from the manufacturers in China since April 2012, which reduces the
cost and production lead time but unfortunately that their sales items are still slow in
the process compared with peers. In fashion, the tastes and preferences of customers
change rapidly. Therefore, becoming a leader in the fashion industry, Padini must have
a high innovation and good designs, supported by an effective supply chain.

Currently, most Padini outlets are located in West Malaysia, resulting in very
competitive competition in this industry. Padini Holdings Berhad should attract
customers with a strong marketing strategy in a competitive market. There are many
incredible opportunities for Padini to expand its business in rural areas and East
Malaysia. There is because Padini can generate more sales and have the opportunities
to grow larger in those places than in big cities where the retail markets are saturated.
Sabah and Sarawak to provide good opportunities to Padini because these states have
fewer competitors and only a few entertainment centers like shopping malls. Besides,
East Malaysia has relatively limited relations with West Malaysia. Therefore, Padini
can monopolize the entire market in rural areas and East Malaysia. Padini Holdings
Berhad was able to expand its business there with Brands Outlet for more revenue.

30
2.1.3 OPPORTUNITIES OF THE COMPANIES

First, product prices also play a crucial role in influencing the external environment. It
has been a golden opportunity for Padini companies to compete with other competitors
because product prices are more affordable than others international competitors such
as Uniqlo, H&M, and Cotton On. Because Padini prices are more affordable and most
people have financial limitations so, Padini is the best choice for them. Moreover, in
general, people can visit the Padini store in the shopping mall. It brings benefits to both
consumers and companies. From a customer perspective, the Padini area is very
spacious and becomes very convenient and a variety of options for them. From the
viewpoint of the company can gain value from customers, such as profits, and build a
long-term customer relationship.

Second, Padini can expand its business by leveraging the strength of market
leadership. As a market leader in retail enterprises, Padini has the power and
opportunity to expand their business to the top. Padini can open more grocery stores
in rural areas to cover the loss of potential customers. Padini opens more branches
with a good strategy to attract more customers. Padini can also open a pop-up shop
in the mall to get new customers' attention to look forward to Padini's products.

Third, 1Malaysia Mega Sales is also an opportunity for Padini to sell its products out
of season. 1Malaysia Mega Sales are the best opportunity for Padini to promote its
products to people from around the world. Padini would be faced with strong
competitors when it enters European countries. It is because Padini will be a newcomer
in the fashion industry of Europe, and Padini cannot expect customers to change
brands because other competitors already have strong brand loyalty and a profitable
relationship with their customers.

Lastly, the Economic Transformation Program(ETP) improves development of the

trade and travel sectors. Padini must benefit Malaysia increasing wealth because
people can buy goods at a higher price, on top of the value products the group offers.
The government of Malaysia has achieved the Mega sales carnival, operated three
times a year. It is to increase consumer sales and spending because, after the 97-
crisis, consumers refused to spend. Moreover, there are many tourists from Singapore
and other foreign countries, especially during the sales period. The Government has
implemented a campaign to purchase Malaysian products. It is to increase domestic
market sales and help them survive intense competition. The increase in revenue

31
levels in Malaysia makes it more affordable to purchase additional goods accessories.

2.1.4 THREATS OF THE COMPANIES

Threats are external factors that can risk the overall success of the company. It is not
under the supervision of the company. Padini company faces the threat of new
competitors. The brands such as Zara, H&M, G2000, Topshop, and many more in the
retail industry in Malaysia are a challenge for Padini. The company only diversifies its
clothing design in the seasons while its competitors are more focused on stylish
clothing. Apart from the design, its competitors are selling quality clothing. For
example, the quality of clothes from Topshop is better than the clothes of Padini.
Although Padini sells their items at lower prices compared to Topshop, most customers
are still willing to buy quality clothes from Topshop even though the price is slightly
higher than Padini. It can drop sales of Padini company, and the company may also
face unstable profits, especially during the holiday season such as Chinese New Year
and Christmas. In short, customers prefer to buy quality clothing with an innovative
design that successfully attracts their attention.

Besides, the poor economic situation in Malaysia is also one of the threats faced by
Padini. The poor economic conditions are forcing the company to raise the price of
their products to cover the costs because of bad economic causes the price of every
item to rise. An example, carriage cost. Customers will not buy more due to the rising
in the price of clothing. As a result, Padini can get stuck with a large amount of
inventory. The companies may need to sell clothes to reduce the price. It is difficult for
Padini companies to generate more profits. Padini sometimes has to bear its costs. In
short, Padini companies cannot make more profit with the terrible economy in
Malaysia.

Lastly, any change will bring danger to Padini. Padini could have more competitors
after they opened more retail stores and boosted their market. The competition arises
when many different brands work in places that are indistinguishable from Padini.
Padini alternative brands to compete with a piece of the pie and also floor space. To
strengthen the brand, Padini has to think about offering celebrity support.

32
 CHAPTER 3 PROBLEMS AND SUGGESTIONS

My suggestion is providing a free shipping service with no conditions, which can

improve and attract more customers to purchase their products. Padini online store
has given a free delivery service to customers if the customer order exceeds RM120.
Nowadays, more and more online businesses are growing up. Padini online stores
must find a way to compete with other competitors. Customers are willing to buy more
if the Padini online store provides free shipping service without conditions.

33
 CHAPTER 4 CONCLUSION AND RECOMMENDATION

In conclusion, Padini is a full-fledged fashion house. It is the ideal shop for many
customers looking for a wide range of clothing and accessories. Therefore, it is suitable
for a wide range of customers ranging from men to women, children, adults, and
maternity clothing. Besides, under Padini Holdings Berhad in different labels enabling
companies to attract buyers from other market segments. For example, teenagers love
to shop at Padini Concept Store because of their casual and stylish clothes such as
graphic t-shirts, dresses, shoes and many other options. Family buyers can get their
clothing items at Padini Concept Stores as the store provides a wide variety of
products, including children's clothing, maternity clothing, office attire, and casual
wear.

34
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