TNT Express to sell TNT Fashion Group to Belspeed and Netlog Group

After several months of searching for a buyer, international courier TNT Express and logistics firm has announced its plans to sell its specialised fashion supply chain business TNT Fashion Group B.V.

Subject to consultation and regulatory approval, the fashion branch of the Dutch courier company will be bought by a consortium formed by Belgian fashion logistics firm Belspeed and Turkish supply chain specialists Netlog Group. Completion of the sale is expected by the end of June this year.  The UK arm of the fashion group will be downsized and merged with the core TNT UK business.

In spite of its necessity, this is likely to be a difficult move for TNT, whose fashion branch has developed a strong reputation since its foundation in the UK and subsequent expansion across Europe and Asia. The sale forms part of TNT's continued restructure following the unexpected EU veto of the company's planned merger with UPS in January 2013.

In a statement yesterday, the TNT said that no changes were expected to be made to TNT Fashion's 660 strong workforce as a result of the transaction and that the terms and conditions of agreements with current customers and suppliers would not be affected.

The two companies due to take over the operation combine niche fashion expertise and more large-scale logistics experience. Belspeed has been providing fashion logistics for over 30 years and generates an annual revenue of EUR 35M while Netlog Group is one of Turkey's largest logistics firms, with annual revenues over $500 and 4,5000 employees.

DHL publishes latest research into fashion production and retail

A recent report into trends in fashion retail carried out by Lisa Harrington (President of the Iharrington group LLC),   in collaboration with German logistics firm DHL urges retailers to transform their supply chains in response to the increasing demands and greater sophistication of customers. 

The new report, entitled, “Fashion Unleashed: supply chain innovation is everything” was composed following interviews and roundtable discussions with global brands.  It relates how the big fashion retailers and manufacturers are rethinking their supply chain management in response to changing and unpredictable consumer buying behaviour. 

According to the report, changes enabled by the Internet and mobile communications have made volatility and complexity an industry norm, so speed, flexibility and responsiveness in the supply chain are imperative. 

Pressures currently facing fashion production and distribution include: fragmented sales channels, escalated service demands, shortened product lifecycles, ratcheted up cost and margin pressures, changing demographics, rapid growth in emerging markets, and the rise of the global middle class. 

The report outlines how the industry can meet the challenges represented by all of these changes, explaining how best to service markets around the world with a supply chain that is agile, flexible and efficient