SUGAR COAT’D
SUGAR COAT’D
CONTENTS C O M PA N Y O V E R V I E W COUNTRY ANALYSIS COUNTRY SELECTION SUPPLIER ANALYSIS STRATEGY PUBLICATION LINE PLAN COUNTRY RANKING SUPPLIER RANKING SOURCING AND CONCLUSION
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SUGAR COAT’D SUGAR COAT’D‘s mission is to inspire women through our sexy, one-of-a kind swimwear collection that allows them to unapologetically embrace their sexuality as confident women.
HELLO, LADIES.
SUGAR COAT’D is an online, one of a kind
swimwear retailer. We believe that there are more opportunities with online retailing over the opportunities we saw in Brick and Mortar retailing. Furthermore, by creating functional pieces that focus on designs with less waste and a proper fit, we have addressed up and coming trends catered to our consumer’s wants and needs. Not only do we focus on the functionality and avant garde designs, but also on their versatility by providing multiple uses for beachwear beyond the water. We aim to create fashion forward, sexy and alluring swimwear for the modern and chic women who cares about their bodies. By proving that eco friendly swimwear can be current, edgy and sexy, SUGAR COAT’D can improve the swimwear industry.
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T R A N S PA R E N C Y FORCED LABOR
Any use of forced labor will not be tolerated, whether in the form of prison labor, indentured labor, bonded labor or otherwise.
CHILD LABOR
No person shall be employed at an age younger than what the law allows (depends on country).
HARASSMENT OR ABUSE
Every employee shall be treated with respect and dignity. No employee shall be subject to any physical, sexual, psychological or verbal harassment or abuse.
N O N D I S C R I M I N A T I O N Nondiscrimination. No person shall be subject to
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any discrimination in employment, including hiring, salary, benefits, advancement, discipline, termination or retirement, on the basis of gender, race, religion, age, disability, sexual orientation, nationality, political opinion, or social or ethnic origin.
H E A L T H Employers will provide a safe and healthy working A N D S A F E T Y environment to prevent any kind of accidents and injury. W A G E S Any company employed by Sugar COAT’D needs to A N D B E N E F I T S recognize that wages are essential to meeting employees’ basic needs. Employers shall pay employees, at least the country’s required minimum wage.
E N V I R O N M E N T A L Sugar COAT’D is focused on reducing packaging and I M P A C T shipping material. All of our corrugated shipping boxes
are 100 percent recycled Kraft paper, and contain at least 80 percent post-consumer waste. All of our gift boxes and tissue paper are 100 percent recycled.
VA LU E S
CUSTOMER OBSESSED R E S T L E S S LY I N N O VAT I V E
We truly understand our customer and their love for fashion forward trends. We carry our customer at the heart of everything we do. We are fearless! We try new things and are constantly in front of the trends.
C O L L A B O R AT I V E AND RESPECTFUL
We work together in every step of the way making sure everybody is happy and treated with respect throughout each step of the process.
PA S S I O N AT E
We are proud to be Sugar Coat’d, we always do our best to create the best product and satisfy our customer. We celebrate our success as well.
Humanitarians
We supports a greener environment and are believers in being philanthropic. We donate to charities that will improve the world. SUGAR COAT’D will donate 5% of their most popular swimsuit to the AID for Africa Girls Education Fund.
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TA R G E T MARKET Our target market are women who unapologetically allow themselves to be who they are. They are bold, with a strong personality . The SUGAR COAT’D girl is the coolest girl in the room, pulling off whatever wildly unique piece from our collection fits her mood. We want to inspire and be inspired by our customer.
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DEMOGRAPHIC Age: 22-35 Gender: Female Income: $60,000 Working girl that has enough disposable income to spend on higher priced and quality clothing
PSYCHOGRAPHIC Edgy / Bold Trendsetter Prefers quality over price Environmentally Conscious
Z E R O - WA S T E D E S I G N We aim to create functional pieces that are designed with less waste. The zero-waste design strives to create patterns that leave zero scraps of fabric left to be thrown away. SUGAR COAT’D is helping to eliminate the millions of tons of garbage in the world. We are inspiring sustainable swimwear.
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LOGISTICS SUGAR COAT’D will be mostly sold through our e-commerce platform as well as a series of pop-up shops in different locations according to season. During the Spring/Summer season we will manage two pop-up locations, one in Miami and another one in Santa Barbara, California. SUGAR COAT’D’s marketing strategy relies on the excitement of exclusivity due to the aspirational element threaded through the brand.
B OM BOM
FI Z Z ER
PI C AR A
TR AV ESUR A
Bikini High-Waisted
STYLE #1002
Halter Top Bikini
STYLE #1003
STYLE #1002
$88.00
$72.00
$80.00
$100.00
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STYLE #1001 Bottoms
Cutout Suit
PRODUCT ASSORTMENT
Tankini
L I N E PLAN
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CO U N T RY A N A LYS I S
LOC AT I O N Water systems from countries to the U.S as well as paved roads for accessible transportation
TE CHN O LO G Y SUSTAI N ABI LI T Y Countries that produce with ecofriendly factors in mind such as:
-Non-polluting -Conserving energy and natural resources -Economically sound and safe for employees, communities and consumers -Reducing landfills -Establishing an effective waste management system
FAI R LABO R LAW S Countries that abide by the following work force laws: -No child labor or abuse -Minimum wage limit -Hours of employment -Established and respected employee relationship -No discrimination -No forced labor -Health, safety and environment regulations
Countries that speed development through new innovative technology. Technology that reduces the environmental impact and leaves products chemical free.
TR A DE AG R E E M E NTS Countries that have workers that are bilingual in communicating with U.S and foreign partners. Trade Agreement with U.S & neighboring countries.
CO S T
Countries that pay wages at their countries minimum wage, nothing lower. Countries that believe that no product is worth the price of a worker’s living conditions and salary.
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CO U N T RY SELECTION
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TE C H N OLOGY
CHINA S U S TA IN AB IL IT Y
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The rapid growth of China has created unprecedented challenges in terms of energy and sustainability. China, a country with relatively scarce energy resources, recently became the largest energy consumer. The country also became number one CO2 emitter, and pollution in the largest cities has reached unprecedented levels. Sustainability in China has become a global challenge. China’s fantastic economic expansion has lead to urbanization and mass migration. Currently, 600 million Chinese live in urban areas, and cities are still growing. The main challenge now for China is to maintain a sustainable growth for those cities. China’s cities have improved, but environmental quality and use of resources are still an issue. If we look at basic needs (living space, doctors), resource efficiency (electricity consumption) and environmental cleanliness (air pollution, domestic waste collection), China fails to meet developed world standards.
China has been an attractive destination for global corporations for the past decade due to its low wage rates and labor laws that disallow independent trade unions and limit the right to strike. China doesn’t yet meet international labor law standards. Workers cannot freely choose their collective bargaining representatives and lack laws requiring employers to collectively bargain with employees. China does not set one minimum wage for the entire nation. Instead, they delegate the task to local governments assigning different work wages according to the local conditions of provinces, municipalities and regions.
L AB O R L AW S Throughout the years, the Chinese government has put emphasis on developing the science and technology sectors through funding, reforms and societal status on such. This has thus become a fundamental part of the socio-economic development of the country giving it international and national prestige. China has continuously made rapid advances in area such as technology, science, education, manufacturing, patents, academic publishing and infrastructure.
TR AD E AGR EEM ENTS China has a lot of free-trade agreements with various different countries including ASEAN FTA, China-Peru-Korea-Australia. Despire China and the U.S. being trade partners, there is no trade agreement between them. However, they do have trade agreements with South America, including Argentina, Brazil, Chile, Costa Rica and Peru.
ISRAEL SU S TA I N A B I LI T Y
L ABO R L AW S
Israel is in the period of transitioning into a more “greener” country altogether, especially in terms of transportation. There is an increasing collaboration between transportation professionals, politicians and environmental organizations ot work towards increasing the accessibility of transportation. Israel’s ability to do more with less and successes in sustainable development have brought international recognition, causing a number of UN and international figures to describe Israel as a “sustainability superpower.” This is hardly surprising: Israel is the world’s leader in water reuse and recycling. Israel treats and recycles 80 percent of effluent water for agriculture.
Minimum wage $6.62 per hour; A 24 hour work day is not legal in any profession. A working day is usually 8 hours long including breaks during those 8 hours. You are also entitled to breaks between two working days and two working weeks. You are entitled to a weekly rest period of at least 36 hours - on Friday, Saturday and/or Sunday, depending on your religion. You are entitled to 14-21 days of paid vacation each year, depending on the number of years you have been with the same employer. Vacation is given either at the end of the year or in the course of the following year. You are entitled to 150% pay and an optional vacation day if you worked during a holiday. Caregivers are entitled to payment for working during holidays from day one.
TE C H N O LO GY Science and technology in Israel are one of the country’s most developed sectors. The percentage of Israelis engaged in this kind of inquiry is the second highest in the world. Its high technology industry has been successful due to Israel’s disproportionately high number of engineers and scientists. Israel is considered to have the best high technology in the world at the moment; it has a technologically advanced market altogether.
T R AD E AG RE E M ENTS Israel is the only country in the world that has free trade agreements with both the US and the EU, making it a bridge between the continents; it is also part of the GATT (General Agreement on Tariffs and Trade) as well as the World Trade Organization (WTO). Israel also enjoys duty-free access to Canada and Mexico. Israel is currently the 24th largest goods trading partner with the US.
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THAILAND 15
S U S TAIN ABIL IT Y
L AB O R L AW S
Thailand is one of the world’s most rapidly developing countries. Sustainability has been integrated into the National Economic and Social Development Plans (NESDP) since 1992.
Thailand’s minimum Wage is 300 Baht per day. The maximum number of working hours of employees is fixed at 8 hours a day and 48 hours a week in total. All employees are entitled to a daily rest period of at least 1 hour after working for 5 consecutive hours.
T E C H N O LO G Y Thailand has competitive advantage in the biotechnology sector due to its position as one of the world’s leading agricultural countries. With the nation’s abundance of bio-diversity, cutting edge science and technology parks, highly trained technicians, and strict intellectual property law enforcement, the biotech sector is ripe for investment. Currently, Thailand is home to 165 biotechnology firms. The National Science and Technology Development Agency (NSTDA) is a major research organization in Thailand, aiming to drive the Thai society towards a knowledge-based economy/society.
TR AD E AGR EEM ENTS Under a Trade and Investment Framework Agreement (TIFA) signed in 2002, U.S. and Thai officials engage on trade and investment issues such as intellectual property rights and customs issues. Thailand is a member of the World Trade Organization. The European Union and Thailand work closely together under the EU-ASEAN Cooperation Agreement. Thailand is a member of the Southeast Asian Nations (ASEAN) and has an agreement with Australia The Thailand-Australia Free Trade Agreement (TAFTA) and (AANZFTA) ASEAN-Australia-New Zealand Free Trade Agreement.
COLOMBIA S U S TA I N A B I LIT Y
L ABO R L AW S
Colombia is amongst the top ten sustainable countries in the world. They are the second most biologically diverse country in the world. Reliance on hydropower has kept carbon dioxide low in Colombia. They rate very high in the forest area of the environmental performance index. The OECD’s first Environmental Performance Review of Colombia which will feed into talks on Colombia’s accession to the OECD- stressed the need to do more to steer economic development in an environmentally sustainable and socially equitable direction.
The minimum wage is now $333 (589,500 pesos) per month. The general rule is eight hours per day and 48 hours per week. Special shifts are applicable to specific activities.25% daytime overtime, 75% nighttime overtime, surcharges of 75% are applicable on Sundays and holidays, and surcharges of 35% are applicable for as night work. The provision of food is not mandatory; if paid, the economic value integrates the salary, unless otherwise expressly agreed upon. Colombia’s Constitution guarantees workers the right to strike, except for workers in essential public services.
T E C H N O LO GY Colombia has never been more attractive for investment. The Colombian Ministry of ICT launched Colombia’s Vive Digital (Live Digital) II Plan, a $10 billion nationwide effort that has set two main objectives; for Colombia to become a world leader in the development of applications for lower income citizens in order to lift them out of poverty and improve their quality of life to become the most transparent and efficient government. Colombia is on its way to emerging as a technology leader from the world’s emerging economies.
T R AD E AG RE E MENTS TPA is the trade promotion agreement with the U.S. This agreement will eliminate tariffs and other barriers to U.S exports, expand trade between the two countries and promote economic growth for both. The International Trade Commission has estimates that the tariff reductions will expand exports of U.S. goods. Free Trade Agreement allows for duty free importation of Colombian apparel goods into other countries such as Canada, Switzerland, European Union, Chile, Ecuador, Peru and Mexico.
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SUPPLIER A N A LY S I S
G OT T E X Israel is one of the most renowned and respected swimsuit manufacturer in the world. Established in 1956 they are known for their quality, fashion and glamour. Using innovative fabrics from Italian Sensitive Fabrics their swimsuits are sun protective, chlorine resistant and comfortable.
LA I S LA FA S HIO N G R O U P, L LC is a full service manufacturing facility and sourcing company. Established in 2001 in Cali, Columbia they specialize in sportswear, swimwear, board shorts, rash guards and other apparel for active wear. They excel in their highly trained operators, professional management and quality products. Conscious of their environmental footprint they are aware of the sustainable integrity they have to the planet, their products and their team.
LE G E N D S WIM W E AR G R O U P China was established in 1995 and now serves as one of the leading swimwear manufacturers. Their factories are equipped with state of the art equipment and experienced technicians. Quality is of the utmost importance to them as it relates back to the excellence of their team. Empowering their people to achieve the impossible, they believe their people are their best asset.
C H AMP K A B I N CO, LT D in Thailand was established in 1969 and specializes in men and women’s swimwear, athletic clothing and sports bags. Using new innovative fabrics they produce products that meet the highest international standards of quality. Concerned about human rights they work in a way that is ethical and socially aware.
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S T R AT E G Y P U B L I C AT I O N
W HY THES E COUN TRIE S ?
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SUGAR COAT’D chose Israel, China, Colombia and Thailand because these countries are considered some of the most innovative and technologically advanced hubs within the apparel industry. These countries hold fair trade agreements with America and other countries that facilitate the exchange of goods between such, thus eliminating the barriers between trade. Even though some of these countries are still developing, they have shown effective initiatives concerning environmental issues and social change.
WHY T H ESE S U P P LI E R S? These suppliers were chosen because of their dedication to producing quality products. These manufacturers ensure that their staff is highly profficient in product knowledge, production techniques and quality assurance. They care is not only for their peope. but for their attention to detail as it relates to their enviornmental impact.
CO S T Thailand’s average monthly wages in manufacturing is $341.76 since July 2015. Thailand gives us the highest profitability because it is the cheapest to make our swimsuits here. h t t p : / / w w w. t r a d i n g e c o n o m i c s . c o m / t h a i l a n d / w a g e s - i n manufacturing
Israel’s average monthly wages in manufacturing is $2,491.34 since July 2015. http://www.tradingeconomics.com/israel/wages
Colombia’s average monthly wages is $692.00 since
2012.
http://colombiareports.com/colombias-average-salary-lowerthan-global-average/
China’s average estimated monthly wages in manufacturing is $668.20 since 2014. h t t p : / / w w w. t r a d i n g e c o n o m i c s . c o m / c h i n a / w a g e s - i n manufacturing
STR ATE G Y CO N C LU SIO N SUGAR COAT’D has selected these factories because they can produce our swimsuits at a low cost, which means we can have our 75% markup, granting us higher profitability. They all have the services and qualified staff needed to produce our patterns and detail on our swimsuits. With the majority of our distribution channels on e-commerce each country has been chosen due to its trade and communications with the U.S and its quick lead time to shipping products to ports in New York.
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COUN TRY A SS ESS MEN T GUIDE L IN ES The Country Assessment Guidelines helps us assess any issues that might present itself to unethical principles, ones that we have set for ourselves. The guidelines help us access the potential risks and opportunities associated with conducting business with various countries.
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SUGAR COAT’D is committed to responsible business practices embodied in our Sourcing Guidelines- directing our decisions and behaviors everywhere we do business. Using these guidelines to improve the lives of our workers, manufacturing, sourcing and protecting our commercial interests. They are the cornerstones of our business relationships.
POLITICAL, ECONOMICAL & SOCIAL ENVIRONMENT H E A LT H & S A F E T Y C O N D I T I O N S HUMAN RIGHTS ENVIRONMENT LEGAL SYSTEM
TE R MS O F E N GAG E ME N T E T H I C A L S TA N D A R D S LEGAL REQUIREMENTS E N V I R O N M E N TA L R E Q U I R E M E N T S CO M M U N I T Y I N V O LV E M E N T E M P LO Y M E N T S TA N D A R D S CHILD LABOR FORCED LABOR DISCIPLINARY PRACTICES WORKING HOURS WAG E S & B E N E F I T S F R E E D O M O F A S S O C I AT I O N D I S C R I M I N AT I O N H E A LT H & S A F E T Y
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COUN TRY R A N KIN G 25
SUP P L IE R R AN KIN G
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WHY G UIDEL IN ES The Country Assessment Guidelines helps us assess any issues that might present itself to unethical principles, ones that we have set for ourselves. The guidelines help us access the potential risks and opportunities associated with conducting business with various countries.
SUGAR COAT’D values bringing the community together
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through their swimwear. We are in the market to seek partners that share our values and beliefs. Together SUGAR COAT’D is brining confidence to the world.
WORKS CITED
Baker &amp; McKenzie. “General Summary of Labor Rights in Argentina, Brazil, Chile, Colombia, Mexico, Peru and Venezuela.” <i>General Summary of Labor Rights in Argentina, Brazil, Chile, Colombia, Mexico, Peru and Venezuela</i> (n.d.): n. pag. 2014. Web. 9 Nov. 2015. &lt;http://www.bakermckenzie.com/files/Uploads/Documents/Global%20Employment/BK_LA_ LaborRights_14.pdf&gt;. Chat Conversation End China Sustainability Project. (n.d.). Retrieved November 4, 2015, fromhttp://cgsd.columbia.edu/ where-we-work/china/. China’s rise as a major contributor to science and technology - Journalist’s Resource. (2015, January 5). Retrieved November 8, 2015, fromhttp://journalistsresource.org/…/china-rising-science-technology-research-contributions. Israel: A superpower of sustainability. (n.d.). Retrieved November 6, 2015, from http://www.jpost. com/…/Israel-A-superpower-of-sustainability. Labor Rights in China. (n.d.). Retrieved November 6, 2015, fromhttp://www.aflcio.org/Iss…/Trade/ China/Labor-Rights-in-China. MATTO. “The 10 Most Sustainable Countries in the World.” CarbonPig. CarbonPig.com, 2012. Web. 15 Nov. 2015. <http://carbonpig.com/article/10-most-sustainable-countries-world>. “Science and Technology | Royal Thai Embassy.” Science and Technology | Royal Thai Embassy. The Royal Thai Embassy, 2014. Web. 15 Nov. 2015. <http://www.thaiembassy.ca/en/thailand-canada-relations/science-technology>. “Technology Driving Change Colombia.” The Boston Globe, 2014. Web. 9 Nov. 2015. <https:// www.bostonglobe.com/opinion/2014/09/19/technology-driving-change-colombia/Fz3eABonGaoQD4JO54EDPK/story.htm>. Textile & Fashion Industries Association. (n.d.). Retrieved November 5, 2015, from http://www. industry.org.il/eng/… “Thailand | United States Trade Representative.” Thailand | United States Trade Representative. United States Trade Representative, 8 May 2014. Web. 15 Nov. 2015. <https://ustr.gov/countries-regions/southeast-asia-pacific/thailand>. Working In Israel. (n.d.). Retrieved November 9, 2015, fromhttp://www.gov.il/…/EngS…/ESMigrantWorkersGuide/ESMWGRights/.
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MIA REXACH CHARLYTTE MORRONE SAMANTHA FRANCO