Vagabond
co.
Unisex Accessories
Caroline Lowe / Emma McKinley / Hannah Sellars / Sophie Di Santo / Joni Tai
Table of Contents. Company Overview
Cost Strategy
+ + + + + + +
About Mission + Vision Inspiration Target Market Customer Profile Values Products
Sourcing Strategy
+ + + + +
Country Analysis Factors Country Selection Country Ranking Supplier Selection Supplier Ranking
+ + + +
Store Location Line Plan Unit Breakdown Tech Packages
Sourcing Guidelines
+ Code of Conduct + Internal Monitors + External Monitors
Conclusion References
About. Vagabond co. originated with the simple desire and need for classic staple accessories. We want our timeless pieces to better the everyday life of everyone; all genders and sexual orientaions. Our product assortment is designed to aid the busy lifestyle of our sophisticated and unique consumer. From a strongly structured back pack to intricately stitched travel clutch, wherever your day will take you, Vagabond co. will help you get there.
Vagabond
co.
Mission.
We strive to promote gender equality through our unisex staple accessories, made thoughtfully to endure your schedule and lifestyle.
Vision.
We envision Vagabond Co. as one of the world’s most innovative lifestyle brands, serving and supporting our wide variety of customers through our unisex staple accessories.
Inspiration.
Inspiration.
Inspiration.
Target Market. Conscious men and women who are foreward thinkers while still appreciative of quality and timeless pieces. Age :
20’s - 40’s
Race : All ethnicities Sex : All orientations. Education : College & above. Income : 50k - 85k
Generation X + Y : + + + + + + + + +
Independent thinkers. Accept diversity. Value oriented. Individualistic. Reject pre-concieved societal standards. Anti-institutional. Tech savy. Busy, multitasking. Emphasize flexibility and freedom.
Customer Profile.
Dylan, 26
+ Lives in LA with her boyfriend + Recent college graduate + Graphic designer for ad agency + $60,000 annual income + Loves minimal design from brands like & Other Stories and Acne + Invests in classic pieces that she can use forever
Ryan, 37 + + + + + +
Lives in Brooklyn, New York Married for one year Furniture designer for Knoll $300,000 combined annual income Prefers well-made, upscale basics Confident in his own personal style; not a slave to trends
Values. + Caring + Thoughful + Integrity + Quality + Making a Difference + Respect +Empowerment
Products.
Dopp kit ; $98
Boxed Backpack ; $228
Weekender; $328
Travel Clutch ; $78
Country Analysis Factors. Location + Ease of shipping to New York + Access to local supply of raw materials + Political stability + Communication- English proficiency Sustainability + Infrastructure allows for sustainable manufacturing as stated in our sourcing guidelines Labor + Fair labor laws actively enforced by government Technology + Well-established infrastructure + Stable access to utilities and technology Trade Agreements + FTA or well-established trade relationship with the US Cost + Labor cost + Shipping and transport costs
Country Selection. Location + Hong Kong -Business-friendly global hub with a large and qualified workforce -Politically stable, although China is experiencing some economic turbulence -Most people speak some English + Italy -Business-friendly, but many companies are family-run and can be insular -Politically stable -English is common in major cities, uncommon in rural areas + Morocco -Economy closely linked to that of Europe -By far the most politically stable country in N. Africa, possible external threat from Islamic extremists -French and Spanish more common than English, in addition to Arabic
Country Selection. Sustainability +Hong Kong -Sustainability in factories is sometimes difficult to regulate + Italy -“Old world� manufacturing practices are more sustainable by nature + Morocco -Vegetable dyeing is a well-established tradition Labor + Hong Kong -Average monthly wage: $918 -Focus on production speed has led to high stress levels for garment industry workers + Italy -Average monthly wage: $1,115 -Worker-friendly conditions + benefits + Morocco -Average monthly wage: $300 -Government has recently begun to crack down on child labor and overtime
Country Selection. Technology + Hong Kong -High levels of technical ability -Stable infrastructure + Italy -Strong heritage of craftsmanship -Well-maintained infrastructure + Morocco -Apparel + accessories industry accounts for a large portion of the economy -Spotty infrastructure in more remote areas Trade + HTS code: 4202.11.00 + Import duty rates -Hong Kong- 8% -Italy- 8% -Morocco- 0% (Free Trade Agreement with US)
Country Selection. Shipping Cost + Time + Hong Kong Hong Kong - New York, 10012 ETT 30 days, direct, every 7 days $3,118.54 for a 20 ft container + Italy Genoa - New York, 10012 ETT 15 days, direct, every 7 days $2,894.64 for a 20 ft container + Morocco Algeciras, Spain - New York, 10012 ETT 8 days, direct, every 7 days $3,980.60 for a 20 ft container
Country Ranking.
Supplier Analysis. Superior Leather Limited HONG KONG + Capable of outputting goods in huge runs + Can adapt to accommodate new designs + Place great importance on the welfare of their workers - “At our factory there is a resident doctor and medical team to take care of our staff.” + Communication - “After receiving a client’s initial design, we will consult with them, offering practical advice on how we will realize their ideas functionally, aesthetically and economically - We also exchange a lot of information on the marketability of a product.” + Quality of materials and goods - “Our skins come from more than 30 of the finest tanneries in Italy and the Americas.” - “We import about 3 million square feet of leather per month, the vast majority of which is cowhide, and we employ the strictest selection criteria when it comes to selecting skins.”
Supplier Analysis. Infinity Snc Di Provaroni E. And C. ITALY + + + +
Quality leather - “All of our leather material is carefully selected to ensure it meets our high standards.� Hand made qualities - Products are hand crafted by artisans in their workshop in Florence, Italy Attention to detail and craft result in beautiful products Specialize in custom leather pieces
Supplier Analysis. Kanzek MOROCCO + + + +
Superior leather - “We use high-quality full grain calf and lamb leather sourced from the best tanneries in Morocco. Our leather has a beautiful and soulful rich patina and is transformed into neat pieces of art by our master craftsmen in our own workshop in Marrakech.” Premium materials - “We use the most premium zippers line from YKK, the solid Excella metal zippers. Our linings are beautifully elegant, made from a soft suede-like fabric. This ensures a timeless and enduring bag to accompany you for years to come.” Original designs - “Our bags are highly functional and original, designed by us after collecting our customers’ feedback. They will surely make you stand out from the crowd. Our Business Collection is perfect for dynamic and sophisticated people with its high functionality.” Transparent prices - “By selling directly to you we avoid the retail markup. We don’t just stop there as we don’t mark up our prices as much as other e-tailers. We fully disclose our costs and margins so you know what you’re paying for.”
Supplier Ranking.
Cost Strategy. 50% Mark up :
Weekender-> -$328 (retail) -$164 (wholesale) -600 pieces (300 black/ 300 tan) Travel Clutch-> -$78 (retail) -$39 (wholesale) -600 pieces (300 black/ 300 tan) Box
Backpack-> -$228 (retail) -$114 (wholesale) -700 (350 black/ 350 tan)
Dopp Kit-> -$98 (retail) -$49 (wholesale) -800 pieces (400 black/ 400 tan)
Store Location. SoHo
Location, general-> -area in downtown Manhattan; zip...10012, 10013, 10014 -surrounding neighborhoods; Greenwich Village, West Village and TriBeCa -population of 51,240 (on average 50/50 male and female)
Store Location-> -Bleeker and Cornelia; corner location -1100 sq ft store space, with similar sized basement (with direct access) -year lease -$327.22/sq ft/yr= $359,942
Customer-> -median age is 36 -average median income, (25-44) $80,342 -nonessential spending; gifts, apparel and household furnishings -singles, married and never married make up most of population -40.3% graduate degree/ 33.5% bachelors -employment; 68% white collar, 32% blue collar
Line Plan. Season Spring/Summer Style # Description Feb March April May June July Spring Total #10001 Weekender 150(12.5%) 50(4.17%) 50(4.17%) 100(8.33%) 200(16.6%) 50(4.17%) 600 #10002 Travel Clutch 100(8.33%)75(6.25%) 75(6.25%) 100(8.33%) 150(12.5%) 100(8.33%) 600 #10003 Box Backpack 200(14.3%)50(3.6%) 50(3.6%) 150(10.7%) 200(14.3%) 50(3.6%) 700 #10004 Dopp Kit 150(9.4%) 50(3.1%) 100(6.2%) 150(9.4%) 250(15.6%) 100(6.2%) 800 Season Fall/Winter Style # Description #10001 Weekender #10002 Travel Clutch #10003 Box Backpack #10004 Dopp Kit
August Sept Oct Nov Dec Jan 50(4.17%) 50(4.17%) 100(8.33%) 150(12.5%) 200(16.6%) 50(4.17%) 50(4.17%) 50(4.17%) 100(8.33%) 150(12.5%) 200(16.67%)50(4.17%) 50(3.6%) 100(7.1%) 150(10.7%) 150(10.7%) 200(14.3%) 50(3.6%) 150(6.2%) 100(6.2%) 150(9.4%) 200(12.5%) 200(12.5%) 50(3.1%)
Fall Total Total 600 1200 600 1200 700 1400 800 1600
*Due to the holiday season, certain months such as February and June as well as those between October and December have an increased potential for higher sales; as a result we believe our products will do the best and be at the highest demand during these periods.
Unit Breakdown. Style No. Name
% Total
Total Units
Avg. Monthly Units Retail per Unit Total Retail
10001 Weekender 20% 600 100 $328 $196,800 0002 Travel Clutch 20% 600 100 $78 $46,800 10003 Backpack 25% 700 116.67 $228 $159,600 1004 Dopp Kit 35% 800 133.33 $98 $78,400
Style No. Name
Cost per Unit Total Cost
Markup %
10001 Weekender $164 $98,400 50% 1002 Travel Clutch $39 $23,400 50% 10003 Backpack $114 $79,800 50% 1004 Dopp Kit $49 $398,400 50%
Tech Package- Weekender. Weekender
Style #10001 Season: Spring PM: Vagabond Co. Description: leather weekender duffle bag Size: O/S Packing: pack in logo stamped cotton/linen dustbag 1st Delivery: Feb. 1 Quantity: 600 Target Price: $328
Colors BR001 BK001 Tan Black
Specifications Height: 13” Length: 16” Depth: 10” Base length: 16” Base width: 10”
Handle diameter: 1 1/2” Handle length: 9”
Tech Package- Weekender. Bill of Materials Item Description/Details Color Size Qty. Placement Body material vegetable tanned BK001 2mm cow leather BR001 thick Hardware brass YKK zipper distressed 17” long 1 centered along top brass 1/2” wide handle reinforcements distressed 1” high 4 2 on each side brass 2” long attached to handle 5mm wide w/double-x stitch Main label stamped logo 3” long inside, centered 1.5” high between handles 4” below top seam Content Label stamped content label 1” long inside, centered 1” “100% cow leather.” 1/4” high below logo Care label stamped care instructions 2” long inside, centered 1/2” “Professional leather clean only.” 1/4” high below content label Hangtag paper tag with printed logo white 3” long 1 loop tied to handle and twine loop brown 2” high
Tech Package- Travel Clutch. Travel Clutch
Style #10002 Season: Spring PM: Vagabond Co. Description: flat leather clutch Size: O/S Packing: pack in logo stamped cotton/linen dustbag 1st Delivery: Feb. 1 Quantity: 600 Target Price: $78
Colors BR001 BK001 Tan Black
Specifications Height: 11” Length: 13” Depth: 1” Flap height: 7” Flap length: 13” Pocket height: 6” Pocket length: 8”
Tech Package- Travel Clutch. Bill of Materials Item Description/Details Color Size Qty. Placement Body material vegetable tanned BK001 2mm cow leather BR001 thick Hardware brass strap loop distressed 1/2” high 1 centered 2” above brass 1” wide bottom of front 5 mm diam. pocket Main label stamped logo 3” long inside, on back 1 1/2” high centered 2” below top Content Label stamped content label 1” long inside, centered 1” “100% cow leather.” 1/4” high below logo Care label stamped care instructions 2” long inside, centered 1/2” “Professional leather clean only.” 1/4” high below content label Hangtag paper tag with printed logo white 3” long 1 loop tied to strap and twine loop brown 2” high loop
Tech Package- Box Backpack. Box Backpack
Style #10003 Season: Spring PM: Vagabond Co. Description: boxy leather backpack Size: O/S Packing: pack in logo stamped cotton/linen dustbag 1st Delivery: Feb. 1 Quantity: 700 Target Price: $228
Colors BR001 BK001 Tan Black
Specifications
Height: 13” Length: 12” Depth: 10” Top flap height: 6” Top flap length: 12” Top handle width: 1 1/2” Top handle length: 11”
Strap widtht: 3” Strap length: 13” Pocket flap height: 5” Pocket flap length: 9”
Tech Package- Box Backpack. Bill of Materials Item Description/Details Color Size Qty. Placement Body material vegetable tanned BK001 2mm cow leather BR001 thick Hardware brass clasp distressed 2” long 2 attached to center brass 1” high bottom of pocket flaps Main label stamped logo 2 1/2” long inside, centered 1” high on back, 4” below top seam Content Label stamped content label 1” long inside, centered 1” “100% cow leather.” 1/4” high below logo Care label stamped care instructions 1” long inside, centered 1/2” “Professional leather clean only.” 1/4” high below content label Hangtag paper tag with printed logo white 3” long 1 loop tied to handle and twine loop brown 2” high
Tech Package- Dopp Kit. Dopp Kit
Style #10004 Season: Spring PM: Vagabond Co. Description: leather dopp kit with handle Size: O/S Packing: pack in logo stamped cotton/linen dustbag 1st Delivery: Feb. 1 Quantity: 800 Target Price: $98
Colors BR001 BK001 Tan Black
Specifications
Height: 5” Length: 11” Depth: 5” Handle length: 7” Handle width: 3/4”
Tech Package- Dopp Kit. Bill of Materials Item Description/Details Color Size Qty. Placement Body material vegetable tanned BK001 2mm cow leather BR001 thick Hardware brass YKK zipper distressed 13” long 1 centered along top brass 1/4” wide Main label stamped logo 1” long inside, centered 1/4” high on long side, 2” below top Content Label stamped content label 1/2” long inside, centered 1/2” “100% cow leather.” 1/8” high below logo Care label stamped care instructions 1/2” long inside, centered 1/4” “Professional leather clean only.” 1/8” high below content label Hangtag paper tag with printed logo white 3” long 1 loop tied to handle and twine loop brown 2” high
Code of Conduct. Workplace Environment: Internal treatment + Humans rights are our top priority. + Equal opportunity, health & safety, and respect for all. + No tolerance for harassment, bullying, discrimination.
Customer treatment: Do unto others as you would have others do unto you. Everyone is equal in our eyes. Diversity: We acknowledge and respect diversity amongst ourselves, our employees, suppliers, customers, and all of those with whom we interact. Compensation & Hours: We take into consideration each employee’s personal and professional life, and provide paid family and vacation leave. Community Involvement: + Small environmental impact due to longevity of products (minimal waste). + Give back to LGBT community (volunteer at organizations devoted to the cause). + Employees encouraged to give back to community through paid volunteer days. +Gift-matching programs to double the impact of employees’ charitable donations, allowing employees a greater degree of choice in the causes in which they want to be involved.
Code of Conduct. Business Practices : Compliance with Laws and Regulations Vagabond Co. is committed to full compliance with all laws, rules and regulations of the countries in which we manufacture. You must comply with all applicable laws, rules and regulations when performing your duties. Partners must comply with all local and foreign laws regarding customs and trade. We will be accurate and truthful in representing business transactions to government agencies. All information that a partner furnishes to any customs official or to any agent hired by Vagabond Co. to facilitate imports and exports must be accurate and truthful. Vagabond Co. partners at no time are permitted to influence the outcome of any business decision by exchanging bribes or kickbacks of any kind. Interaction with the Government : We’re committed to complying with local laws, regulations and codes and to working fairly and honestly with government officials and others in our communities. All of our actions must meet high ethical and legal standards. It is against the Vagabond Co. policy to offer or make a payment or gift of any kind in order to facilitate a local process or to influence a local government official. Partners must be truthful and straightforward in their dealings with the government.
Internal Monitors. Supplier Audits:
Vendor performance rating system to evaluate suppliers based on quality and productivity as well as environmental impact; labor conditions; and employee wages, hours, and well-being, based on point value. Scores for environmental and labor provisions will be weighted at twice the value of quality and productivity. Auditors will perform ph tests on waste water and and liquid dyes to ensure that no chromium (which has a ph of 2.9 or higher) is being used. Suppliers are required to report any subcontractors, which are also subject to audits. This point evaluation system is inspired by Nike’s similar method of evaluating factories. Suppliers with highest scores will receive the most orders. Suppliers with lower scores will not receive as many orders, creating incentive for suppliers to improve scores.
Transparency:
Internal compliance division to conduct evaluations and publish results publicly. Audits will be unannounced visits at least twice per year. Production orders placed in accordance with supplier ratings. Accurate and available financial report data.
Non-compliance:
Hotline for employees to anonymously report incidents of non-compliance with code of ethics.
External Monitors. Labor Regulations:
Internal compliance auditors must be familiar with laws & regulations of countries in which suppliers are located to ensure legal compliance.
Third-Party Monitors:
Internal and external audits will also be conducted to obtain certification by the Fair Labor Association. Specifically, audits will evaluate suppliers’ compliance with standards set forth by the Leather Goods Working Group within the FLA. + Fair Labor Association: FLA standards for certification are the most comprehensive in the industry, and requires the use of both internal and external monitors. Monitors conduct site visits, employee interviews, inspection of records, and must include the participation of local NGOs.
Conclusion. After careful consideration we selected Hong Kong, Italy, and Morocco, as our supplier countries, all of which produce high quality leather goods. The top suppliers from these countries include: Superior Leather Limited, Infinity Snc Di Provaroni E. and C., and Kanzek, which were chosen for the expertise and ability to work within our established sourcing guidelines. Our sourcing and costing strategy ensures the highest quality of products for our customers, produced ethically and with a clear conscience.
References. “About.” Miansai. Miansai, n.d. Web. 02 Apr. 2016. “About.” Rad Hourani. N.p., n.d. Web. 02 Apr. 2016. “About Us.” Infinity Firenze. Infinity Firenze, n.d. Web. 24 May 2016. “The Brand.” Matt & Nat. Matt & Nat, n.d. Web. 02 Apr. 2016. Cohen, Maris. “How Retail Is Becoming Less Gendered, and Why You Should Care.” NPD Group. The NPD Group, Inc., 29 July 2015. Web. 02 Apr. 2016. “Doing Business in Hong Kong.” Export.gov. USA.gov, n.d. Web. 25 May 2016. “Doing Business in Italy.” Export.gov. USA.gov, n.d. Web. 25 May 2016. “Harmonized Tariff Schedule Search.” Harmonized Tariff Schedule. US International Trade Commission, n.d. Web. 24 May 2016.
References. “Introduction.” Superior Leather Hong Kong. N.p., n.d. Web. 24 May 2016. “Kanzek.” Kanzek. N.p., n.d. Web. 24 May 2016. “Morocco Country Commercial Guide.” Export.gov. USA.gov, n.d. Web. 25 May 2016. “Ocean Freight.” IContainers. IContainers, n.d. Web. 19 May 2016. Port Technology International. Maritime Information Services Ltd., n.d. Web. 23 May 2016. “Search Schedules.” Mediterranean Shipping Company. Mediterranean Shipping Company, n.d. Web. 20 May 2016. Thiefoldt, Diane, and Devon Scheef. “Generation X and The Millennials: What You Need to Know About Mentoring the New Generations.” Law Practice Today. American Bar Association, Aug. 2004. Web. 02 Apr. 2016. “World Ports.” World Port Source. World Port Source, n.d. Web. 22 May 2016.
Vagabond
co.
Unisex Accessories