A&A Introduction (Hv)

E V E N G R S L I I O S H N

JULY 2013 EDITION

A&A INTERNATIONALEstablished Co.,Ltd 1989

FOUNDER:

MR WON CHUN CHO

A r t s & A r t i s t s

i n t h e B a g M a n u f a c t u r i n g W o r l d

Yes, we believe that we are artists and our products are art.

Headquartered in Seoul, South Korea, A&A has been designing, manufacturing, and providing high quality bags since 1989. We have our A&A factory in China, and our newly established Bangladesh factories will manufacture quality products at a more competitive price than China, Indonesia, Myanmar and Vietnam. The fact that EU market does not charge import tax and that bags made in Bangladesh are TAA complient for the USA GSA program, means that A&A’s bag products are offered at a much more competitive price.

A&A manufactures various types of fashionable and sophisticated casual bags that meet manufacturing requirements and preferences of global leading fashion brands. Our experienced technicians and staff from Korea and China will stay in our new factory in Bangladesh to control and supervise the entire manufacturing operation in order to ensure our prime production quality and on-time delivery. We also have set up a showroom and offices in Dhaka, the capital of Bangladesh. This will ensure quicker service to satisfy our clients’ sample requirements and processes.

A&A values the partnership with our clients and aims to create a win-win business for both companies. We look forward to providing substantial contributions to your company’s growth in the industry.

A&A Handbag Manufacturing Ltd

GANGNAM OFFICE, KOREA 7th Floor

T h e A & A P h i l o s o p h y We follow a simple but clear business philosophy: to devote our talent and effort to manufacturing superior bag products with excellent quality and competitive price that contribute to our partners’ success in bag industry.

Every day, our staff and people bring this philosophy to life. We put our effort, change our methods, and pioneer new ways to ensure our clients’ satisfaction on our products.

O u r V i s i o n

A&A's vision for the new decade is: "Inspire Clients," "Create Partnership," and "Lead Global Handbag Industry."

This vision reflects A&A's effort to inspiring ourselves to create better products to satisfy our clients. A&A also continually strives to strength our core networks - Industry, Partners, and Employees. Through these efforts, A&A will be a leader in the global handbag manufacturing industry.

Prime Quality Products Made by Our Excellent Technicians

Inspire Clients, Create Partnerships,

Competitive Product Price

Lead the Global Handbag Industry Optimized Manufacturing Operation & On-Time Delivery

Win-Win Business Partnership

Industry + Partners + Employees Your Growth in Bag Industry

L o c a t i o n s 1

32

1

2

3

Bangladesh Office

Bangladesh Factory 1

A&A INTERNATIONAL CO., LTD.

2nd Floor East, House -109

A&A TRAVELLING GOODS BANGLADESH LTD

Bosung Bldg 7F, 1005-8, Daechi-dong,

Road-6/D, DOHS Banani

44-46, Ishwardi EPZ, Pabna, Bangladesh

GANGNAM-Gu, Seoul

Dhaka 1206

Bangladesh Factory 2

135-851, Korea

Bangladesh

32-40, 2nd Phase, Ishwardi EPZ, Pabna 1000

Seoul Head Office, Korea

Bangladesh Due to the increase in wages and overheads A&A has now stopped manufacturing in China, our key staff have been relocated to Bangladesh & Korea.

B a n g l a d e s h

2

1

1

Bangladesh Office 2nd Floor East, House -109 Road-6/D, DOHS Banani Dhaka 1206

2

Bangladesh Factory 1 A&A TRAVELLING GOODS BANGLADESH LTD 44-46, Ishwardi EPZ, Pabna, Bangladesh

3

Chittagong Port In 2010-2011 45 million metric tons went through here, that’s 92% of Bangladesh maritime export

20ml 50km

3

I s h w a r d i E P Z B a n g l a d e s h E x p o r t P r o c e s s i n g Z o n e At the end of 2012 we finished construction of our factory, we choose it build in it here in the Ishwardi EPZ because we have guaranteed power, water supply and gas. The Bangladesh Government has set up 8 zones across the country to attract foreign investment, major brand names have taken advantage of what is on offer and by partnering with us you can too.

Finding people to staff our facility has not been a problem, using our experience of over 20 years of manufacturing in China and by bring in own staff to train on site, we have found that transferring the skills to create quality bags has been easy. 90% Of exported items in Bangladesh are from the Textile Industry so most people who apply are already skilled at sewing, cutting and construction.

L o c a t i o n 220 kms from Dhaka, 280 kms from Mongla port, 110 kms from Rajshahi Airport and 484 kms from Chittagong port. It takes about 5 hours to drive from Dhaka to Ishwardi.

I n f o r m a t i o n If you would like to know more about Bangladesh, working conditions, life in general and what’s on offer we have another PDF available, or can answer questions directly by e-mail.

I s h w a r d i & D h a k a O f f i c e G l o b a l M e m b e r s , G l o b a l C o m m u n i c a t i o n Our success is built on our quality to perform and deliver. To do this we need to listen and understand you requirements and pass on the instructions down through our chain. We are fluent in finding solutions before they are needed and pride ourselves on our contacts in Bangladesh and internationally for materials and components to confident in the art of bag making.

Our goal is all about quality. We have excellent technicians with long term experiences in bag industry. Our production & development team will ensure prime quality of our bag products to meet manufacturing requirements and preferences of global leading fashion brands.

K o o k J i n ( K J ) C h o Global Marketing Manager Mr Cho has relocated from Korea to Bangladesh to personally oversee the factories construction in Ishwardi EPZ and the operations at our office in Dhaka. With a Masters in Science, Statistics from the London School of Economics and Political Science and a Degree in Economics from the University of Wisconsin-Madison he is well equipped to lead the Overseas Development Team.

P r o v a t K u m a r K u n d u Production Manager Mr Kundu graduated from the Bangladesh College of Leather and Technology with a Bachelor of Footwear science and a minor in Leather goods and products. He has an extensive network and is knowledgeable about local companies allowing A&A to source quality materials and competitive prices.

C h o n g M y o n g K i m Head of Quality Control and Production Mr Kim specializes in Quality Control and re-production management. He has over 30 years of extensive experience in the Korean bag manufacturing industry, in design development and quality control for producing a wide range of bags.

All the images above were taken at A&A’s Dhaka Office in Bangladesh, January 2013

B u i l d i n g D e s i g n ( F a c t o r y 1 I s h w a r d i ) ing &

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4 line

FIRE

EXIT FIRE

FIR

EXIT

EXIT

XIT

EE

FIR XIT

EE

FIR

F I R E S A F E T Y XIT

EE

FIR

E

FIR

T E M P E R A T U R E C O N T R O L

IT EX

All exits are clearly marked and staff have been trained in the

evacuation procedure in the unlikely event of a fire. Fire Extinguishers

are placed conveniently around the factory and clearly marked and checked upon regularly. A&A has to adhere to Fires and Safety Practices as stated by the guidelines in the Bangladesh Export Processing Zone Regulations.

Our first factory has been designed with a high roof with a 1st floor that only covers a 3rd of the total space.

This is so the we can keep the building cool by taking advantage of the natural heat convection that occurs.

D O R M I T O R Y We do not have a living space provided for our employees due to that the Ishwadi Village is close to the factory. A&A has provided adequate space for storing bicycles and scooters and kitchen and dining facilities have been built behind the factory to provide lunch.

B a n g l a d e s h F a c t o r y 1 ( I s h w a r d i ) A & A T R A V E L L I N G G O O D S B A N G L A D E S H L T D

P E R S O N A L

B U I L D I N G

S T A N D A R D S :

Factory Established:

2013

Total number of employees:

800

ISO9001

(under progress)

Land Area:

6000 SQM

Casual employees:

30%

ISO14001

(under progress)

First Floor:

3539 SQM

Office employees:

5%

WRAP

(under progress)

Second Floor:

1650 SQM

Quality Assurance:

103

BEPZA

Qualified

Production Area:

4,889.75 SQM

Age of youngest employee:

19 Years Old

Medical staff :

1 Full Time

Nationality of employees:

Bangladeshi

Language(s) spoken:

Bengali & English

Technicians:

4 South Koreans

E Q U I P M E N T Soft Production Lines:

12

Leather Lines:

4

Sewing Machines:

350+

Production Machinery:

50+

Fire Extinguishers:

20

7 Chinese

U N I T S : Total annual volume :

2,000,000 - 2,900,000 Units

Monthly capacity (units):

150,000 - 250,000 Units

(Depending on style and complexity)

(They all worked in our old Factory back in China)

Photo taken January 2013

Q u a l i t y C o n t r o l F l o w ( F a c t o r y 1 I s h w a r d i ) Completed Product Quality Check

ed iat e Prod uc t

Pa r t Fabric Default Check

2x St aff in te rm

Fabric Ready Point

Raw Materials Ready point for cutting

Raw Materials Raw Materials Quality Check

Total Product Quality Check

Qu ali ty Ch ec k

Pro d

uc tio

n

Cutting Section

Completed Product Quality Check with Hand held Needle Detectors

Hashima Needle Detector Check Point

QC OFFICE

Final Goods Ready point for Export

STORE OFFICE

Cut Materials start from here, and go down the production lines

F I R S T

Q C S E C O N D

Q C T H I R D

Q C F O R T H

Q C

Check Raw Materials Quality when arrived and before & after Cutting

Check all the incoming raw materials quality in store

Check Product Quality by 3 QC staff for each line, during Production

2 QC staff for each production line for QC of product parts

Check quality of all finished products in the general QC Section

Team 1 to team 3, check quality with hand needle detectors

Final Check of all finished goods and Confirmation before leaving Factory

Check for needles with Hashima needle detector in packing section

Check all the fabric conditions in cutting section

1 QC staff for each production line for QC of completed product From team 4 to team 11, check finished product quality Pack only successfully passed final goods for exporting

T O T A L o f

1 0 3 Q C S t a f f

All the images above were taken at A&A’s Dhaka Sample Room and our Bangladesh Factory in January 2013

P R O D U C T S M A J O R I T E M S Causal Handbags Totes, Satchels and Messenger Bags Laptop Cases, Daybags, Camera Cases

M A T E R I A L S Leather Woven Fabrics Synthetic Leather

P R O C E S S E S Cutting Assembly Sewing Stitching Buttoning Packaging We can produce a variety of products in Leather, Artificial Leather, Canvas, Jute, and have years of experience producing quality Outdoor Bags, Sports Bags, Casual Handbags, Wallets, Pouches and more.

All the detailed images above were taken of Handbags made at our Bangladesh Factory and Sample room in Dhaka.

O u r C o m p e t i t i v e n e s s

E x p o r t i n g f r o m B a n g l a d e s h t o b e n e f i t y o u

E V E R Y T H I N G B U T A R M S M a j o r C o u n t r i e s w i t h D u t y F r e e & Q u o t a F r e e a c c e s s o n B a g P r o d u c t s m a d e i n B a n g l a d e s h :

M a j o r C o u n t r i e s w i t h G S P P r o g r a m o n B a g P r o d u c t s m a d e i n B a n g l a d e s h

ed d n e p s u s ne 27th 20d1uc3ed ju of bags pro p only 3% eligible for gs were

B a n g l a d e s h i s a T A A D e s i g n a t e d C o u n t r y , p r o d u c t m a n u f a c t u r e s b y A & A a r e e l i g i b l e f o r G S A S c h e d u l e C o n t a c t s

* If you have any question for your market’s import tax policy for Bag Products made in Bangladesh, please send us an e-mail at anatgc@anatgc.co.kr We will find out all you need to know and share it with you.

O u r C o m p e t i t i v e n e s s C o m p e t i t i v e P r o d u c t s P r i c e s

C o m p e t i t i v e P r o d u c t s P r i c e f r o m t h e l o w e s t l a b o r c o s t A&A provides quality goods at a very competitive price by taking into account the Bangladesh's industrial advantage of the lowest labor cost in the world.

As indicated in the graph below, many of Asian emerging countries except for Bangladesh have shown rapid increase in the labor cost.

( 1 ) A v e r a g e M o n t h l y L a b o r C o s t i n A s i a n E m e r g i n g I n d u s t r i a l C o u n t r i e s Country

China

Vietnam

India

Indonesia

Philippine

Bangladesh

Monthly Labor Cost ($)

$597

$382

$277

$481

$401

$69

International Monetary Fund (2013 1st quarter estimate) All labor costs are in US Dollars Bangladesh, a country with one of the highest population densities in the world is not like other Asian emerging countries where labor forces are moving towards technological and mechanical industry sectors. It still has plenty of people in the labor forces that are willing to work in the textile and bag manufacturing sectors. Such labor demands will keep the labor cost from rapidly rising. $ 600

China

$ 500

Indonesia Philippines Vietnam

$ 400 $ 300

India

$ 200 $ 100 0 2005

Bangladesh 2006

2007

2008

2009

2010

2011

2012

2013

International Monetary Fund (2013 estimate)

Pakistan

Japan

C o m p a r i s o n o f A s i a S h i p p i n g t i m e s

South Korea

B A G P R O D U C I N G C O U N T R I E S

Bangladesh India

Myanmar (Burma)

F R O M China I n d o n e s i a

V i e t n a m

B a n g l a d e s h

T o U S A 3 5 d a y s

( V I A S i n g a p o r e T S )

3 5 d a y s

( V I A S i n g a p o r e T S )

3 9 d a y s

( V I A S i n g a p o r e T S )

T o E U 2 9 d a y s

( V I A S i n g a p o r e T S )

3 0 d a y s

( V I A S i n g a p o r e T S )

2 4 d a y s

( V I A S r i L a n k a T S )

T o J a p a n 2 3 d a y s

( V I A S i n g a p o r e T S )

2 2 d a y s

( V I A S i n g a p o r e T S )

2 3 d a y s

( V I A S i n g a p o r e T S )

Laos

Thailand Vietnam Cambodia

Philippines

Sri Lanka

Malaysia Singapore

Indonesia Papua New Guinea

Sou

S h i p p i n g f r o m C h i t t a g o n g P o r t W e w i l l f i n d t h e b e s t o p t i o n s t o s u i t y o u r n e e d s , w e c a n s h i p b y s h i p o r a i r d e p e n d i n g y o u r t i m e a n d c o s t n e e d s .

Pakistan

China Bangladesh India

Myanmar (Burma)

29

23

Days (Average) Shipping to UK

28

Laos Days (Average) Shipping to Japan

Thailand Vietnam

Days (Average) Shipping to France

Cambodia

39

15

Days (Average) Shipping from China to Bangladesh

Philippines

Days (Average) Shipping to Western USA

Sri Lanka Malaysia

W e a r e c o n t i n u a l l y w o r k i n g o n s t r e a m l i n i n g g l o b a l l o g i s t i c s t o b e n e f i t y o u .

F o r m a n y c o m p a n i e s , s h i p p i n g b a g s f r o m B a n g l a d e s h i s a n e w e x p e r i e n c e .

A b o v e a r e s o m e g u i d e l i n e t i m e s t o h e l p g i v e y o u a n i d e a t h e s e a r e b a s e d o n o u r f i n d i n g s a t t h e b e g i n n i n g o f 2 0 1 3 , f o r u p - t o - d a t e i n f o r m a t i o n a n d e s t i m a t i o n s p l e a s e c o n t a c t u s b y e - m a i l o r c a l l .

Singapore

Indonesia

O v e r 2 0 y e a r s i n t h i s I n d u s t r y

We are proud of the Brands we have produced products for but unfortunately we cannot disclose who they are. (And hope that you understand.)

A&A International started back in 1989 with a big deal for a Japanese client and we have been exporting bags to Japan ever since then. Back then A&A was one of the first Korean companies to set up a factory in China, and now we leading the trend again with our newly completed Factory in Ishwardi EPZ in Bangladesh.

Using our Staff’s experience and transferring their knowledge and know-how we can create a great partnership with you and your company by providing all the solutions you need.

T h a n k y o u W e l o o k f o r w a r d t o w o r k i n g w i t h y o u i n t h e f u t u r e

I f y o u a r e i n t e r e s t e d w e h a v e t w o m o r e p r e s e n t a t i o n s a v a i l a b l e :

A & A I n t r o d u c e s B a n g l a d e s h M o r e a b o u t A & A , B a n g l a d e s h a n d a l s o l o c a l c o m p a n i e s t h a t w e s o u r c e m a t e r i a l s f r o m

A & A I s h w a r d i F a c t o r y ( 2 0 1 3 0 1 1 5 ) A c o l l e c t i o n o f p h o t o s f r o m o u r t r i p a t t h e b e g i n n i n g o f t h i s y e a r

O r i f y o u h a v e a n y q u e s t i o n s p l e a s e e - m a i l u s a n a t g c @ a n a t g c . c o . k r

GANGNAM OFFICE IN KOREA Headquartered in Seoul, South Korea, A&A has been designing,

A&A INTERNATIONAL Work together with A&A to reduce your costs, increase your sales and maintain your quality.*

manufacturing, and providing high quality bags since 1989.

We aim to create a win-win business for us and our partners.

GOODS

FACTORY IN BANGLADESH Opened in 2012 in Ishwardi EPZ Pabna Provence.

Our employees are trained one on one by our Korean & Chinese technicians. Average wage is only $68 USD (Which is moderate.)

SOFT GOODS & LEATHER With over 24 years of experience producing Causal Handbags, Business & Sports Bags in Leather, PU, Canvas, Jute, Nylon and Polyester.

TAX FREE & GSA IMPORT The EU market does not charge import taxes.

Importing to the USA from Bangladesh makes us eligible for TAA & GSA

한국어

日本語

Contact us for more information anatgc@anatgc.co.kr *We realize that changing factories and suppliers is a big deal, but if we can both benefit, then it’s well worth it.