RESEARCH PAPER – BUSINESS MODELS

Task:

Analyze and compare the business models of two companies operating in the same sector Chosen companies:

Intimissimi & La Perla Submitted by:

Chunthida Thongson Diana Wlaschitz-Lopez Bertia Roten Julia Hollmann Course:

Fashion Economics

Professor:

Marco Ricchetti

Date of submission:

28.03.2011

2

Table of Contents 1.

General information - Intimissimi ....................................................................................................... 3 General information - La Perla .......................................................................................................... 3

2.

Product range and lines ..................................................................................................................... 4 a.

Product range and attributes - Intimissimi .................................................................................. 4 Product range and attributes - La Perla ..................................................................................... 5

b.

Main competitors - Intimissimi ........................................................................................................ 7 Main competitors - La Perla ........................................................................................................... 7

3.

Business model ...................................................................................................................................... 8 a.

Value proposition of the company - Intimissimi ........................................................................ 8 Value proposition of the company - La Perla ........................................................................... 8

b.

The relationship with the customer .............................................................................................. 9 Target - Intimissimi ............................................................................................................................. 9 Target - La Perla................................................................................................................................. 9 Sales channel - Intimissimi ............................................................................................................... 9 Sales channel - La Perla ................................................................................................................ 10 Communication - Intimissimi ........................................................................................................ 10 Communication - La Perla ........................................................................................................... 11

c.

Scope of the company ................................................................................................................. 12 Value Configuration - Intimissimi ................................................................................................. 12 Value Configuration - La Perla .................................................................................................... 13 Capability and competences - Intimissimi .............................................................................. 15 Capability and competences - La Perla.................................................................................. 15 Networking and Partnership - Intimissimi................................................................................... 16 Networking and Partnership - La Perla...................................................................................... 17

d.

Profit model ...................................................................................................................................... 17 Revenue Sources - Intimissimi ...................................................................................................... 17 Revenue Sources - La Perla.......................................................................................................... 17 Strategic Control - Intimissimi ....................................................................................................... 17 Strategic Control - La Perla .......................................................................................................... 18

4.

Final assessment/Summary ........................................................................................................... 18

3

1. General information - Intimissimi Intimissimi is a brand belonging to the Calzedonia group (Calzedonia S.p.A.), which is located in Dossobuono di Villafranca, in the province of Verona, Italy. The Intimissimi brand was launched in 1996. The other brands in the group‟s portfolio are: 

Calzedonia (legwear and swimwear)



Tezenis (low-priced underwear, homewear and pajamas)



Falconeri (knitwear)



Cash&Carry (wholesale of unbranded clothing)

In 2009 the Calzedonia group recorded revenues of over one billion euros which represents a 13.1% increase from 2008. In 2007 the revenue distribution among the three brands Calzedonia, Tezenis and Intimissimi was as follows:

Distribution of Revenues

38%

47%

Calzedonia Tezenis

15%

Intimissimi

With 113 million euros Intimissimi accounted for the largest part of the total group revenues in 2007. In 2009 the Calzedonia group was employing approximately 15.000 people, including administrative, retail and manufacturing employees. We couldn‟t ascertain the number of employees that were actually working for the Intimissimi brand, but since it is generating the highest revenue we may reasonably assume that a large part of these 15.000 employees if not the largest part is indeed working for Intimissimi.

1. General information - La Perla From 1954 until October 2008 La Perla S.r.l. was an independent company owned by its founder Ada Masotti. Now it is owned by JH Partners, a private equity firm focused luxury brands. It is based in Bologna, Italy. In the 1990s, La Perla was the fifth largest textile company in Italy. In the last ten years revenues have been gradually decreasing from 184 million euros

4 to 155 million euros in 2009. By the late 1990s, the company employed more than 2,000 people. We have no updated employee numbers, but since revenues have been declining since then, we may assume that the number of employees has as well.

2. Product range and lines a. Product range and attributes - Intimissimi Within the fashion pipeline Intimissimi products represent final or consumer goods. It proposes underwear and sleepwear for men and women (bras, briefs, matching sets, lingerie, undershirts and pajamas) as well as knitwear and beauty products (body cream, shower foam, EdT) for women.

Price and quality level Products are sold at a mass/low price level. They are, however, higher priced than Calzedonia and Tezenis products. Underwear prices range from 5-30€, knitwear prices from 840€ and beauty products cost around 14€. The product quality is good/acceptable which makes for an overall good quality-price ratio.

Fashion content Intimissimi products can be described as classical (Basic comfort) to moderate fashion (current seasonal collection).

Diversification degree Intimissimi possesses a multiproduct portfolio, but all products are commercialized under the Intimissimi brand.

Product line portfolio At the moment Intimissimi sells the following lines/collections: 

Basic comfort (basic colors and shapes)



Men‟s collection (current yearly collection)



Wedding collection (white garments)



Beauty



Women‟s collection (current seasonal collection)

5 Inside the Women‟s collection we find the Underwear, Easywear (pajamas and homewear) and Jersey (basic knitwear clothing) lines. Within the product portfolio the Basic comfort line acts as a risk reducer, since basic items have a very reduced fashion content and will be bought no matter the current trends or could be sold in following seasons.

The fashion triangle

Fashion products

Increasing Risk Fashion-Basic products

Basic products

Intimissimi is focusing on the low and medium risk categories.

a. Product range and attributes - La Perla Within the fashion pipeline La Perla products represent final or consumer goods. La Perla offers a wide variety of products: 

Underwear (Bras, briefs, bustiers, bodysuits, garter belts)



Homewear (basic knitwear)



Beachwear (swimsuits, bikinis, cover-ups, accessories)



Nightwear (baby dolls, night gowns, pajamas, robes)



Shapewear



Men‟s underwear (boxers, briefs, shirts)



Few accessories



Ready-to-wear



Cosmetics

6 The fashion triangle

Fashion products

Increasing Risk Fashion-Basic products

Basic products

La Perla products are mostly situated in the medium risk segment.

Price and quality level La Perla is positioned in the luxury segment. Prices vary from line to line but can for the most part be considered in the luxury segment. When La Perla changed owners in 2008, prices were lowered by about 25%. Today‟s price ranges are as follows:



Grigio Perla

27,00 - 82,00 €



La Perla Studio

29,00 - 179,00 €



Malizia by La Perla

19,00 -250,00 €



La Perla Villa Toscana

42,00 - 230,00 €



Joelle by La Perla

€36,00 - 282,00 €



La Perla

37,00 - 550,00 €



La Perla Collection Créateur

150,00 € - 700,00 €

La Perla is known to offer luxurious products like lingerie and swimwear and super quality is an important part of their DNA. For their most exclusive and select lingerie La Perla only use fabrics with and exceptional quality as well as special artisanal techniques and hand-made laces and embroidery. They do carry lower-priced lines (medium segment) that probably have a lower quality.

Fashion content La Perla products can be considered classical to moderately-fashionable. Most of their lines and collections focus on classic colors, feminine sensuality and elegance creating a contemporary yet rather classic style.

7

Diversification degree La Perla has a multi-product portfolio consisting of several different lines and collections. One of these lines is dedicated to men.

Product line portfolio La Perla‟s portfolio is made up of a number of different lines that in turn comprise several different collections. Among the lines featured on their website are the following: 

La Perla Studio (for a basic-chic style, underwear and beachwear)



Grigio Perla (men‟s underwear, homewear and beachwear)



La Perla Villa Toscana (casual chic with tuscan seductive ease)



Malizia by La Perla (romantic, metropolitan, daring)



La Perla (feminine, sensual, mystery)



Joelle by La Perla (refinement, precious fabrics, elegance)



La Perla Collection Créateur (designed by Jean-Paul Gaultier, couture seduction)

The collaboration with the world renowned designer Jean-Paul-Gaultier that was launched for fall 2010 as a capsule collection can be understood as a means to mitigate the risk inherent in fashion business. The multitude of lines and collections within these lines indicate a risk reducing strategy of “overproduction” – offering as many products/product-types as possible.

b. Main competitors - Intimissimi In Italy the main competitors are Yamamay, Etam Lingerie and Golden Lady (Golden Point). Yamamay has a dense store-network; they target a younger customer with lower prices and propose clothing with higher fashion content. Golden Point proposes about the same price range but offers muss less variety. Etam Lingerie is similar but possesses only 8 stores in Italy.

b. Main competitors - La Perla

8 Group A are the main competitors of La Perla in terms of quality and price level: Carine Gilson, Chantelle, and Lise Charmel. Carine Gilson is more vintage and classic; they have more corsets and nightgowns. Chantelle‟s target is more mature and their products are simpler while Lise Charmel has more choices and colors. Group B are competitors, but at lower prices. Group C are the competitors for La Perla basic products, the prices are around 20-60€. GAP, Calvin Klein and Intimissimi products have similar design, are simple, comfortable and less fashionable. Victoria‟s Secret has more options in design and is also more fashionable. Group D has generally a younger target than La Perla but we can consider them competitors because they are close to La Perla‟s basic product price range. Vanity Fair is also targeting a similar consumer as La Perla.

3. Business model a. Value proposition of the company - Intimissimi Intimissimi offers good quality products at attractive prices. Besides their good quality-price ratio they propose a great variety of models, designs, fabrics and sizes. Their products are romantic, sensual, simple but sophisticated, contemporary with attention to details. Intimissimi positions its products as softer and more sensitive to customer needs as opposed to the overt sexuality that many lingerie brands play on. Intimissimi designs for women favor a soft, feminine sensuality. In terms of services Intimissimi‟s strong point is their very dense store network in Italy with shops exclusively positioned in central city areas, offering a convenient shopping experience. They also renew the women‟s underwear collection 4 times a year constantly offering their customers fresh models and greater choice.

a. Value proposition of the company - La Perla La Perla offers very high-quality, luxurious, elegant products made from precious fabrics. They put high emphasis on the artisan aspect in the manufacture of their products and they stress their Italian craft heritage. Leavers Lace, the Soutache process and the Frastaglio technique are some examples of the specialty fabrics (some of which are hand-made) and techniques La Perla products are crafted with. Through their origins in corsetry, La Perla have an in-depth knowledge of dressmaking and thus possess a unique “body know-how” in enhancing the female form in the best way possible. La Perla are also strong concerning fabric innovation. La Perla also offers the “Undressed Review” service, which is a personal fitting and styling

9 service. On appointment the client gets personal advice on finding the type of bra in terms of fit and personal style in store.

b. The relationship with the customer Target - Intimissimi Intimissimi targets men and women between the ages of 15 and 50 with moderate income and education looking for convenience, choice and reliable products. Their target is a rational and savvy shopper who doesn‟t look for the latest trends but appreciates no fuss but contemporary and sophisticated products. The female target is a self-aware woman, sensitive to the outside world in search of balance, harmony and sensuality in a relaxed shopping environment. They favor a neo-romantic, natural esthetic and like to treat themselves every once in a while by buying a piece of lingerie (primarily for their own enjoyment).

Target - La Perla Even though La Perla‟s communication is directed only to the female target, they also have the Grigio Perla line, a small line dedicated to men, with simple products that are not too expensive. La Perla is heavily focused on the female target, which can be described as:



Sophisticated, cosmopolitan, business women



Medium/High to high income



Around 30 to 55 years old



Secure women, who love their body enough to spend as much as 190 € for a bra and intend to show it off

Sales channel - Intimissimi Intimissimi sells its products only in Mono-brand Intimissimi stores. Since franchising is the core of the company‟s expansion strategy mono-brand stores are necessary, but also serve to: 

Achieve a better information flow about consumers and their preferences  Quick response model



Assure fast delivery and replenishment if needed



Be able to show the entire collection or push particular items

Intimissimi follows a “balanced” franchising formula. In every country there is a central office that manages the store network that consists of about 40% company-owned stores and

10 approximately 60% franchised stores. Franchising for Intimissimi began in 1999 and today it is present in more than 25 countries. The store network counts more than 1000 shops, half of which are situated in Italy. According to Intimissimi the ideal store counts 100 m2, is situated in a pedestrian or high-traffic area, city or town center with at least 300.000 inhabitants. Until recently Intimissimi was present in more than 200 corners in Victoria‟s Secret stores throughout the USA in the scope of a licensing agreement. However, this partnership ended in 2009/2010. Since mono-brand stores are virtually the only existing sales channel their primary role is to generate sales. The company counts the fresh, attractive, simple store design and its tidy, welcoming atmosphere as a strong competitive factor; however, in our opinion it differs little from other competitors‟ store interiors. Intimissimi does not possess an online-shop. Its only additional sales channels are outlets in Vallese (Trento) and Granarolo dell‟Emilia (Bologna).

Sales channel - La Perla La Perla is sold through a chain of mono-brand stores, either company-owned or in franchising, that are situated in main capitals around the globe. Additionally, La Perla products are distributed through prestige department stores like Harrods in London, Neiman Marcus and Bergdorff Goodman in New York as well as through Takishimaya and Wako in Japan, high-end shops and online at www.laperla.com. Lastly, we can find La Perla in specialty outlets and duty-free shops around the world. The mono-brand stores serve more for a communication purpose to convey brand image while distribution through multi-brand stores is to achieve greater market penetration and generate sales.

Communication - Intimissimi The Calzedonia group invests a lot of money in communication. In 2007 they invested 40 million euros, which represents about 7-8% of total revenues. We only found the communication budget on group level, but since Intimissimi generates the largest part of revenues, we assume that a substantial amount of these 40 million euros was dedicated to the Intimissimi brand. Intimissimi implements mass media campaigns to achieve high visibility, using well-known photographers, models (Irina Shayk) and celebrities (Monica Bellucci) as a means of risk reduction. The focus is mainly on off-line communication in magazines (like Marie Claire and Flair), billboards along city main streets, PR and video commercial advertising (Internet and

11 television). In all of their communication efforts they emphasize aspirational and emotional aspects. At the point-of-sale they use promotional in-store images, product catalogues, flyers and posters. In an effort to involve the customer and to achieve a word-of-mouth effect Intimissimi recently launched an “Eco-campaign” encouraging clients to trade in their old bras to receive a 3€ discount towards the purchase of a new bra. The old bras will be recycled as construction insulation and soundproof panels. Also, on their Facebook page the company has set up a “review” section, indicating that it welcomes comments even negative ones, and that it is willing to enter into a dialogue with the client. Although the fashion product that Intimissimi offers is definitely an experience-good, most of Intimissimi‟s communication happens through one-way communication or traditional advertising.

Communication - La Perla La Perla has a big communication budget. According to the company, they pursue an aggressive communications strategy: their yearly advertising investment represents about 15 percent of their turnover. Despite the large investment in communication, there are no signs of advertising in magazines and billboards – La Perla pursue a more select advertising campaign. La Perla communicate indirectly through specialized press - in fashion magazine editorials. Some of the most recent editorials featuring La Perla can be found in: 

Harper‟s Bazaar Magazine, March 2011



Allure Magazine, March 2011



Glamour Magazine, February 2011

Others magazines include: Marie Claire, Instyle, Vanity Fair, Elle and Vogue. Interaction through communication with their consumers can mostly be found online: through their website, where consumers can send emails asking questions and also through their Facebook and twitter pages, where interaction is almost instantaneous. Online, La Perla place advertisement banners on target-relevant websites - like fashionista.com. It was also on fashionista.com that La Perla advertised their 2009 sweepstakes for a grand prize of $2.000 worth of lingerie. After signing up with their names and email addresses participants were given the opportunity to send the sweepstakes invitation to 3 of their friends. This is an example of how La Perla involves the consumer and gathers their contact information. Consumers can also sign up for the La Perla newsletter to stay informed on current offers and promotions. La Perla invests a lot of money in events. Some of the last years‟ events include: 

Lace Night (Presentation of SS 2011 underwear/beachwear collections)



Elastic Dream (30 years of La Perla Beachwear exhibition in La Rinascente)

12 

SensoReal (Project at the 49th edition of Salone Internazionale del Mobile)



The limited edition Campari Calendar 2010



Undercover: The Evolution of Underwear (Exhibition at the Fashion and Textile Museum of London)

La Perla does not have one fixed testimonial and they rarely use famous models in their campaigns. Karolina Kurkova was one of the few internationally famous models who recently appeared in advertising for La Perla. The use of a well-known testimonial is a form of indirect communication especially efficient in the realm of experience fashion goods that La Perla offers. Ultimately, La Perla also invests in traditional communication tools at the point-of-sale, making use of catalogues, flyers and posters.

c. Scope of the company Value Configuration - Intimissimi Raw materials like fibers, fabrics and accessories are not manufactured by Intimissimi or the Calzedonia group - they are sourced globally, mostly in Europe and Asia, from their buying offices in the company seat in Dossobuono di Villafranca and in Hangzhou (China). We have no information on the design process but we assume it is carried out internally. On their website Intimissimi claim to be directly manufacturing their own-label underwear. Since the Calzedonia group owns several production plants in Italy, Sri Lanka, Croatia, Bulgaria, Romania and Serbia, we can assume it is possible that Intimissimi are at least partially manufacturing their own underwear. Clothing (pajamas, knitwear) seems to be produced externally. Intimissimi uses subcontractors specialized in knitting, dyeing and molding (for bras) in Italy and Sri Lanka. We have no information on the production of their beauty products, but since cosmetics have nothing to do with their core business of underwear, we assume that Intimissimi is subcontracting to a full package for private label company. Suppliers are very diverse in terms of size from very large suppliers to small local dyeing mills and from very structured to family-run businesses. Retail is an internal competence as goods are sold through Intimissimi mono-brand stores. Intimissimi claim to be carrying out all communication and advertising activities internally without the support of an advertising agency. Internal Process

Fiber/Fabric Making

External Process

Sourcing

Design

Mixed Process

Manufacture

Retail

Communi cation

13 Since sourcing, design, manufacture (partly), retail

through monobrand-stores and

communication are organized internally, some of these activities on group level, we can consider that Intimissimi is vertically integrated - reducing the risk of mismatching between the supply pipeline and consumer behaviour. Intimissimi applies the “Quick-Response” model: The design process takes place pre-season. Then products are ordered by the stores little by little according to sales and consumer preferences

Intimissimi operates in a pull-supply-chain through their store network. Production decisions are made according to consumer preferences and buying behavior. Since only those items that the consumer wants are produced, the risk inherent in the fashion business is reduced because of the lower share of end-of-season sales. This mechanism also helps keep prices low. Local Factories

Overseas Factories Marketing

Monobrand stores

Design

Value Configuration - La Perla La Perla gives no information on the origins of their raw materials, so it can be assumed that fibers and fabrics are not manufactured by the company itself, but rather sourced nationally and internationally. All design processes are carried out inside the company. Some La Perla‟s items incorporate handmade lace and embroidery, which according to the brand, are constructed by their own artisans. The swimwear collection is made in three manufacturing factories in Bologna and since they have been acquired by JH Partners at least some of the collections are manufactured in Asia. La Perla‟s ready-to-wear-line has been licensed to Mariella Burani Fashion Group since 2008 while cosmetics are licensed to Morris Parma.

14 Distribution is a half internal and half external process. On one hand their products are sold through la Perla mono-brand stores and on the other hand in multi-brand stores - like department stores. La Perla communication is outsourced to a communication agency, Createthe Group, responsible for their campaigns and communications platforms.

Fiber/Fabric Making

Internal Process

Sourcing

External Process

Design

Manufacture

Retail

Communi cation

Mixed Process

Considering that design, part of their manufacture and part of their distribution are carried out internally, La Perla can be considered a vertically integrated company. La Perla applies the traditional seasonal model: All design process and retail orders take place pre-season. The ordered items are delivered to the stores at the beginning of the season and are then sold to the final consumers throughout the season.

La Perla operates in a Push-supply-chain, since production decisions (design and ordering) are concentrated in the beginning of the pipeline. During the second part of the chain they just deliver the collections seasonally without adjusting designs etc. to customer behavior/need.

15 Local Factories/ Suppliers

Overseas Factories/ Suppliers Subcontractors

Marketing Producers

Subcontractors

Design

Distributors

Mono-brand stores

Multi-brand stores

Capability and competences - Intimissimi Intimissimi‟s core competence lies definitely in retail and retail through franchising. It has built its widespread monobrand store-network on the concept of franchising that the Calzedonia group pioneered in Italy starting in 1986. Since the product offer depends heavily on information collected through the stores in terms of best sellers, customer preferences etc., the marketing manager plays a predominant role in the collection development process.

Within the Calzedonia group Intimissimi has a complex organization carrying out activities ranging from design, market positioning and strategy, procurement of fabrics and accessories, branding, communication and marketing. It is specialized in the coordination of different activities to create the value proposition for the customer. Its core competences are on the intangible side: knowledge of consumers and their consumption behavior through direct contact in monobrand-stores and fast information flow and retailing strategies.  Intimissimi/Calzedonia can be labeled a fashion company.

Capability and competences - La Perla La Perla‟s core competences are design and manufacturing, since they differentiate

16 themselves from their competitors through high-quality, partly self-manufactured and selfdesigned luxury products. Consequently, the designer and the product manager play predominant role in the collection development process.

La Perla carries out complex activities ranging from design, market positioning and strategy, procurement of fabrics to the manufacturing of their more artisanal products. As far as labels are concerned, we would place La Perla half-way between Own-label manufacturer and Fashion Company, since it is only partly manufacturing in an internal process and is outsourcing the entire marketing and communication effort.

Networking and Partnership - Intimissimi

17

Networking and Partnership - La Perla

d. Profit model

Revenue Sources - Intimissimi Intimissimi generates most of its revenue through direct sales of their garments und underwear to their franchisees as well as to the consumers via the company-owned monobrand stores. Through brand extension they also sell a limited range of beauty products. Although we have no numbers on the revenue structure, we assume that the sales of beauty products make up only a very small percentage. Royalties are not a part of the franchising agreement.

Revenue Sources - La Perla La Perla generates most of its revenues through sales of products directly to final consumers through mono-brand stores as well as through sales of products to franchisees and multibrand stores. They also generate revenues from royalties through their franchising activity and from their licensing of ready-to-wear and cosmetics. We don‟t have information on revenue distribution, but we assume that most of their revenues are generated through the sale of underwear - their core business.

Strategic Control - Intimissimi Intimissimi maintain their competitive advantage through brand value by differentiating themselves in terms of a soft, natural positioning on the otherwise sexy lingerie market.

18 Especially in Italy they achieve very high brand awareness through the dense network of omnipresent stores and they continue to support their competiveness through market enlargement and cost reduction.

Strategic Control - La Perla La Perla maintain their competitive advantage through brand value by positioning their products in the super quality segment and by emphasizing their artisanal and Italian craft heritage.

4. Final assessment/Summary The final part of this paper is dedicated to a direct, summarized comparison of the keypoints of difference in the business models of the two analyzed companies:

Intimissimi

La Perla

Market segment

Mass market

Luxury market

Fashion content

Classic to moderate fashion-

Predominantly moderate

content

fashion content

Both men‟s and women‟s

Women„s lingerie, swimwear,

underwear, basic jersey

ready-to-wear, cosmetics, limi-

clothing and beauty products

ted offer of men‟s underwear

Good quality-price ratio,

Luxury design products with

sensual, natural femininity,

high quality fabrics, unique

conveniently dense store

handmade lace and artisanal

network in Italy

production techniques

Services

None

Personal styling/fitting service

Target market

Metropolitan and rural area

Cosmopolitan area and city

population with medium level of

center population with high

income and education

income level

Target age group

15-50 years of age

30-55 years of age

Price range

Mass/low price segment

Mostly luxury segment

5-40 €

20-700 €

Product

Brand value proposition

19 Communication

Mass media strategy: Ads in

More select communication:

magazines, Video spots for TV

Fashion editorials, events,

and internet, billboards,

relatively little consumer

relatively little consumer

interaction

interaction Sales channels

Mono brand stores

Monobrand and multibrand stores, e-commerce

Supply chain

Vertically integrated:

Vertically integrated:

Manufacture, Design, Retail,

Manufacture, Design, Retail

Communication International Scope

Present in 25 countries

Present in Europe, Asia and US

8-15 stores in each country

3-5 stores in each country

(1100 stores in Italy) Store locations

Main shopping streets/areas in

High end areas in leading cities

commercial cities Own Store functions

To generate revenues

Communication tool

Key competencies

Retail (through franchising),

Design and Manufacture,

Customer knowledge, quick

“Body-know-how”

response Strategy

Offer brand value, penetrate

Offer high quality products,

the market through good

brand value through artisanship,

quality-price ratio, expanding

Italian craft heritage, “Body-

sales channels through

know-how”

franchising, cost reduction Financiers

Primary revenues

Funding from parent company

Funding through new owner

(Calzedonia Group)

(JH Partner)

Product sales

Product sales, licensing and franchising royalties

Risk mitigating

Products in low to medium-risk

Products mostly in medium-risk

strategies

categories, using well-known

category, collaboration for

photographers, models and

capsule collection with JPG,

celebrities, vertical integration

vertical integration, large range of lines and collections  overproduction