eUnoIa
TABLE OF CONTENTS
04 05 09 19 26 32 34 39 40 42
EXECUTIVE SUMMARY OUR COMPANY MARKET ANALYSIS TARGET CUSTOMER PRODUCT DEVELOPMENT PRODUCT LIFE CYCLE BRANDING CONCLUSION WORKS CITED APPENDIX
EXECUTIVE SUMMARY After a long term of studying gaps in the market for sustainable solutions, we found that there is an opening to be filled in the market for accessories. The backpack market, which has evolved and grown in the past few years, has yet to offer a sustainable option that meets both the needs and wants of our identified target market: the millennial customer. We thoroughly researched options to make our backpacks distinct from the ones already in the market. We found a solution in combining both fish skin leather, which not only is more sustainable, but also more appealing to the customer than most eco-friendly bags. We would also combine the fish skin leather with 600 denier-recycled polyester. As an eco-friendly fashion brand, we want to not only make our backpacks eco-friendly, but equally as stylish and design oriented. After thorough research we found that most ecofriendly backpacks tend to be extremely simple and not as fashion oriented. We want our customer to have the best of both worlds. In this direction, we hope to make a change and contribution to our environment and to give our customer the opportunity to be part of the change as well. -Eunoia
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OUR COMPANY
WHO WE ARE Eunoia is a U.S. and domestically located company in San Francisco, California, selling backpack handbags made out of fish skin leather, a more sustainable alternative to cowhide leather. Not only does it have an upper hand in durability against regular cowhide leather, we offer it at a lower and more cost efficient price. The fish leather produced at Eunoia is environmentally friendly in two different ways. It is a by-product of the fisheries industry, utilizing raw material that would not otherwise be used. Secondly, we use natural oils during the production stage to ensure a more eco-friendly byproduct. By selling backpacks, we are not only hitting a major handbag trend, but also ensuring a younger customer. So many younger consumers are unaware of our effects on the environment, so we are here to not only sell, but educate our demographic as well.
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OUR MISSION
“ We offer a product to our customers
that is made out of fish skin leather, a material that is rare, sustainable, and offered at an affordable price.
“
“
”
OUR VALUES With the audience’s good will at heart, Eunoia believes that beautiful thinking leads to a more beautiful environment.
”
OUR VISION Our vision is to leave a sustainable world for future generations by selling a product for everyday use.
”
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TARGET MARKET OVERVIEW We seek a customer that is the future of sustainability. Millennials aged 18-35, or Generation Y, are going to be the consumer that we will market towards. Based on our price point, we expect a female-oriented consumer of average networth or middle class to purchase our backpacks. We do not limit who can buy our products. Since being based in the United States, our geographic segmentation is limited to domestic sales.
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MARKET ANALYSIS
MARKET OVERVIEW
Handbags and accessories are one of the fastest growing categories right now in the United States and globally. It is predominately a female-oriented segment due to the vast assortment of colors, patterns, sizes, and use. Since the recession in the United States in 2009 when the industry lowered in sales, handbags and accessories have now risen back to 2008 sales growth. It is said that this is an expanding industry and the market will keep growing in profit within the upcoming years. We are seeing higher growth rates in the United States than in Western Europe and Japan for the first time in years. Fortunately, the current trend, backpacks, seems to be flourishing worldwide. It has become a $2 billion business with a double-digit growth. If you refer to Chart 1A below, you will see an outline of the sales of the bag industry in the United States by category. Backpacks’ volume growth is calculated to have grown 38.6% from 2009 to 2014 (Euromonitor International “Bags and Luggage in the US”). Backpacks are shown to have the highest volume growth percent from all the other categories in the bag industry. As a differentiated and popular category, we believe our sales growth will continue to rise in the upcoming years.
CHART 1A:
Sales of Bags by Category:ı % Volume Growth 2009-2014ı
50ı
% Volume Growthı
40ı 30ı 20ı 10ı 0ı -10ı -20ı % Volume Growthı
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Backpacksı
Business Bagsı
Crossbody Bagsı
Duffel Bagsı
Handbagsı
Wallets & Coin Pouchesı
38.6ı
-10.3ı
22.8ı
4.5ı
21.7ı
12.8ı
Adapted from Euromonitor International, “Bags and Luggage in the US”.
BACKPACKS IN THE MARKET These once considered child-like school bags have revolutionized into a product that is sleek and often done with luxe textiles such as leather and shearling, leaving designers to take on different interpretations of backpacks by experimenting with different aesthetics and styles. Adding metal hardware details such as zippers and buckles lend a hand toward unique trends in the backpack market. Drawstrings, one strap instead of two straps, color blocking, and front flaps are just few of the many of existing aesthetic ideas on backpacks today. Backpacks are the fun, new alternative to any boring handbag.
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CURRENT TRENDS IN THE MARKET 1. COLOR BLOCKING
2. FRONT FLAP
3. OUTSIDE ZIPPER
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4. DRAW STRING
5. METAL HARDWARE DETAILS
6. BUCKLES
(Harper’s BAZAAR “Back to Cool: 10 Backpacks You Need for Spring”)
COMPETITORS
Elizabeth + James: Manufacturing: China Textiles: Wool Felt, lambskin leather, faux leather, dyed hair calf
(Neiman Marcus “About Elizabeth and James”)
Jansport: Manufacturing: United States Textiles: leather suede, Denier polyester, cotton canvas (Jansport “About Us”)
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Herschel: Manufacturing: China Textiles: Poly coated fabric, leather (Hershel Supply Co. “About”)
Longchamp: Manufacturing: France Textiles: polyester, cotton canvas, polyamide canvas with inside coating (Longchamp “Product Information”)
Mansur Gavriel: Manufacturing: Italy Textiles: leather (Mansur Gavriel “Care”)
Marc by Marc Jacobs: Manufacturing: China Textiles: nylon, polyester, leather (Marc Jacobs “Product Description”)
MCM: Manufacturing: Germany Textiles: coated canvas, leather
(MCM “Corporate”)
Rebecca Minkoff: Tory Burch: Stella McCartney: Manufacturing: NYC, USA Manufacturing: China Manufacturing: Italy Textiles: nylon, genuine Textiles: shaggy deer fabric, Textiles: canvas, leather leather Nappa fabric, print linen fabric (Tory Burch “Details & (Rebecca Minkoff “Detail & Fit) (Stella McCartney Care”) “Sustainability”) 15
COMPETITIVE LANDSCAPE ANALYSIS By using the Nike Considered Design Index, we were able to calculate the amount of sustainability in our competitor’s products. With help from each company’s website detailing the materials used in their products, we were able to input the information to get a score. As seen in the perceptual map on page 16, Rebecca Minkoff has the lowest sustainability due to their non-recyclable leather materials and polyester lining. However, the highest sustainable company, Stella McCartney, uses all recyclable and environmently friendly materials. Our competitive landscape was measured by two factors: price average and sustainable impacts. With a specialty category in the handbags and accessories market, we plan on fulfilling an open area where we are able to gain control and succeed. Our company, Eunoia, is measured to be high in sustainability and low in average price points, therefore, fulfilling an open market space. What makes us a differintiated retailer than our competitors is our brand aesthetic. There are brands with the same level of price points as us, like Jansport and Herschel Supply Co., however we separate ourselves from them by being an aesthetically and quality driven brand. We define ourselves as a brand with low accessible price points and a fashionable aesthetic.
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PERCEPTUAL MAP
HIGH PRICE
LOW SUSTAINABILITY
HIGH SUSTAINABILITY
eUnoIa
a better environment starts with you and I
See Appendix C for competitor’s scores.
LOW PRICE
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FUTURE GROWTH Factors that are driving growth within the industry are rising disposable income, expanding middle class, growing preference for branded products and rising number of wealthy consumers worldwide. Unfortunately, there is one risk that emerges with a growing luxury handbag market, counterfeiting. With the risk of counterfeits and high competition, the handbag market faces difficult challenges. We, as a sustainable backpack company, hope that our customers share the knowledge of our efforts to supply the market with a more eco-friendly version of leather. By doing so, we hope our customer range will expand in the upcoming years. This is our first collection as a company and we aim to produce a second collection soon.
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TARGET CUSTOMER
TARGET CUSTOMER After our prior research we have found that the most adequate demographic and target market is the Millennial customer, who ranges from the ages of 15 to 35. They are born between the early 1980s to the early 2000s. We would specifically target the older range of the Millennial customers, ages ranging from 18 to 35. The Millennial consumer is described as being more open-minded and more ethnically and racially diverse. They are confident, self-expressive, liberal, upbeat and receptive to new ideas and ways of living. Chart 2A on page 20 demonstrates the racial diversity in the Millennial Generation. Compared to Generation X, consumers ages 30-80 years old, percentages of different ethnicities have risen about 3%, according to the Pew Research Center. It is also noted that this generation will be the most educated generation in America. On Chart 2B on page 20, 15% of Millennials have completed four or more years of college. Millions of 20-somethings have enrolled in graduate schools, colleges or community colleges in part because they cannot find a job without a college degree. However, the Millennial Generation put their careers above marriage and parenthood. As seen in Chart 2C on page 21, about 75% have never been married or are single compared to only 21% who are currently married. “Only 1 in 5 Millennials are married now, half the share of their parents’ generation at the same stage of life” (Pew Research Center “Millennials: Confident. Connected. Open to Change”) . However, some of the young customers are also apprehensive when dealing with incomes. A large population of them are pilled on with student loans, leaving them with less disposable income than the older generation. On the other hand, there are a number of Millennials with disposable income and who are avid spenders. This generation is the most open-minded and self-expressive consumer range to date. Chart 2D on page 21 demonstrates how unique the 20-somethings are, in fact. At about 23%, the young adults said that technology use made them different from other generations. Millennials have changed the shopping habits for every industry, not only retail. Young adults are constantly on their mobile devices browsing what is new and trending, expecting retailers to be able to keep up with their high expectations of enticing and interactive experiences in stores and online.
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CHART 2A: Millennial: Race/Ethnicity Percentage
DEMOGRAPHIC SEGMENT
(Pew Research Center “Millennials A Portrait of Generation Next”)
The Millennial customer becomes the most racially diverse generation to date, note the several different ethnicities and races above.
CHART 2B:
MILLENNIAL EDUCATION (Pew Research Center “Millennials A Portrait of Generation Next”)
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CHART 2C:
MILLENNIAL MARITAL STATUS
(Pew Research Center “Millennials A Portrait of Generation Next”)
CHART 2D:
HOW ARE MILLENNIALS UNIQUE?
(Pew Research Center “Millennials A Portrait of Generation Next”)
Millennials were asked what makes their generation more different/unique, these are the percentages of the top 5 answers they gave.
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PSYCHOGRAPHIC SEGMENTS The Millennial Generation can be broken down into four psychographic segmentations based on the attitudes, lifestyle, and interests of the consumer. The first are the “Advocates.” These are the young adults who publicly support their generation through online profiles and social media accounts. Characteristics include having a strong point of view and being motivators. These are the consumers who will buy after doing extensive research on a product (Handley “Marketing To Millennials: Four Distinct Segments”). The next group are the “Status Suckers”. These are your typical 20-something year olds who use brands as status symbols and portray their life to be perfect. They spend their income quickly and impulsively to keep on trend. All their social media feeds revolve around themselves and they use it to complain and air drama (Handley “Marketing To Millennials: Four Distinct Segments”). The third segment are the “Clean and Green”. These consumers are healthy, green, positive, and cause driven. “They take care of themselves and the world around them” (Millennial Marketing “At Last, A Millennial Segmentation”). Lastly, there are the “Techy-Fans”. This is a maledominant segment with characteristics of being wired and successful. They are always on the go and are updated with the latest news via their smartphones or tablets (Millennial Marketing “At Last, A Millennial Segmentation”) .
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SHOPPING HABITS Omni-channel shopping has been noted as being much more popular among the Millennials than any other age group: “About 77.1% of Millennials browse online before making a purchase in brick and mortar stores” (Pythian Data Experts, “The Truth Behind Millennial Shopping Habits”). On the other hand, 56.3% of Millennial respondents first browse at brick and mortar stores then purchase them online later (“The Truth Behind Millennial Shopping Habits”). It is commonly known that Millennials are more likely to shop online using their mobile phones. With less leisurely time and always on the go, Millennials resort to performing activities on mobile phones than being able to visit brick and mortar stores. Unfortunately, since the expanding of the omni-channel market, retailers have not been prepared for savvy shoppers. A disconnect between the online and in-store interaction experience has left Millennial customers unsatisfied: “About 57% of Millennials have confirmed experiences where they have attempted to purchase an item in store and it was unavailable, however, it being available online” (“The Truth Behind Millennial Shopping Habits”). Millennials have changed the shopping expectation that retailers have once been able to predict. Before the social media boom, retailers were able to lure in customers through creative window displys and persuassive advertisements. Now, the problem for the retailer is to engage young consumers who are more inclined to browse than buy. “Nearly 50% of those surveyed say they regularly browse for items that they don’t necessarily plan on buying” (Forbes, “Millennials: Double Trouble for Retail”). These young consumers are shopping on their mobile devices almost 24 hours a day and end up not buying anything; they are more “browsers” than “buyers”. On the other hand, there are a group of avid spenders who impulsily purchase items due to their high disposable income. According to Market Truth, “Close to 50% of female millennials shop for apparel more than twice a month, versus 36% of older females. Millennial males enjoy shopping, too, spending twice as much as non-millennial men” (Market Truth “Millennials Buy More Clothing Than Previous Generations, and Other Shopping Habits”). The average Millennial purchases more than one piece of clothing per week, which is later disposed of, pressumably due to defected items.
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CURRENT GARMENT LIFE CYCLE CARE FOR DIFFERENT TYPES OF BACKPACKS: Jansport Care: Hand wash, no washing or drying machine allowed. Disposed of: You can return the backpack and they will either repair or give you a new one. They will give you a full refund. However, if the backpack is not available, they will give you a full refund. (Jansport “Warranty”) Herschel Care: Hand wash, washing machine not recommended. Disposed of: when reaches end of life, it usually is thrown away if defected. (Herschel Supply Co. “Product Warranty”) MCM Care: mild soap and water when the bag is made out of leather. A small cotton cloth dampened with distilled water (sodium-free seltzer water may be substituted) and a mild soap bar applied in circular motion. Disposed of: Most of their materials are recyclable; however, much of their products are thrown away when they reach their end of life. (MCM “FAQ: Frequently Asked Questions”) Longchamp Care: To maintain product, apply with a soft brush and Longchamp colorless cream regularly to leather areas. To remove dirt, clean the whole lining using a cloth or a soft brush, with water and neutral soap (avoid water spilling over leather parts when cleaning). Dry clean only. The leather comes mainly from France, Italy and Uruguay. They are very particular about how they select their materials. The tanneries strictly respect environmental regulations. Disposed of: Most of their materials are recyclable; however, much of their products are thrown away when they reach their end of life. (Longchamp “Care Instructions”)
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PRODUCT DEVELOPMENT
MOOD BOARD
SOURCING
Our salmon fish skin leathers will be sourced from Texas based Fishleathers. com. We will also be manufacturing our products with the same company. They specialize in dyeing their exotic leathers in eco-friendly tanneries, which is very important to our company. The cost to source the fish skin leather is about $67.76 per yard. One yard is estimated to contain 5-7 pieces of fish skins. Below are the other materials and trimmings we use in our backpacks. For the full cost list of our materials, please review our Cost Sheets located in Appendix B. Some advantages of using fish skin leather are environmental friendliness, price competitiveness, uniqueness and versatility. fish skin leather does not involve endangering any species; the fish that are used have a primary use of agriculture. By using the fish skin leather we are reducing atmospheric pollution from tanning processes and reducing the water pollution. (Sea Leather Wear “Our Fish Leather Advantages�) The tanning process to dye the fish skin does not need the use of harmful chemicals. When comparing our prices to other reptile or exotic leathers, we are less expensive. The uniqueness of the fish skins scales differentiate us from other leathers. Lastly, our fish skins are versatile and can be used to manufacture many products.
Stainless Steel Fish Hook $0.10/per piece Nanjing Jiashanmei Imports & Exports, Co. Mainland China
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Stainless Steel Hex Nut $0.17/per piece Jamestown Distributors Bristol, RI
Black 600 Denier Recycled PVC-Coated Polyester Fabric $3.70/per yd OnlineFabricStore.com Mainland China
Black Nylon Zipper 11 in. per piece $2.22/each piece Shenzhen Yiyixing Zipper Manufacture Co. Mainland China
Fish Skin Leather-Gloss Coated $67.76/per yd Fishleathers.com Houston,TX
PRODUCT ASSORTMENT SEASON: F/W 2016
ONLINE STORE:
STYLE
ASSORTMENT PLAN
COLOR
#1001 BLACK BEST SELLER
SIZE
UNITS
COST
TOTAL COST
MARKUP
RETAIL
TOTAL RETAIL
ONE SIZE
165
$223.39
$36,859.35
40%
$315.00
$51,975.00
#1002
BLACK, GREY
ONE SIZE
125
$134.80
$16,850.00
40%
$189.00
$23,625.00
#1003
BLACK, NAVY BLUE
ONE SIZE
80
$254.95
$20,396.00
37%
$350.00
$28,000.00
#1004
BLACK, GREY
ONE SIZE
60
$257.14
$15,428.40
40%
$360.00
$21,600.00
#1005 BLACK, NAVY BLUE BEST SELLER
ONE SIZE
175
$225.85
$39,523.75
32%
$299.00
$52,325.00
#1006 BLACK, GREY BEST SELLER
ONE SIZE
185
$215.46
$39,860.10
38%
$299.00
$55,315.00
#1007
BLACK
ONE SIZE
95
$255.16
$24,240.20
37%
$350.00
$33,250.00
#1008
BLACK
ONE SIZE
115
$254.78
$29,299.70
37%
$350.00
$40,250.00
TOTAL FOR SEASON:
1000
$222,457.50
$306,340.00
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PRODUCT LINE UP
Style: #1001 “ AN AYA ” Fish Skin Leather Flap Hooked Poly-Fabric Backpack Wholesale Cost: $223.39 Retail Price: $315
Style: #1002 “ AVA ” Fish Skin Leather Flap Hooked Mini PolyFabric Backpack Wholesale Cost: $134.80 Retail Price: $189
Style: #1003 “ ADELAIDE ”
Style: #1004 “ ADELA ”
Single Structured Poly-Fabric Backpack with Fish Skin Leather Side Details
Double Structured Poly-Fabric Backpack with Fish Skin Leather Side Details
Wholesale Cost: $254.95 Retail Price: $350
Wholesale Cost: $257.14 Retail Price: $360
Style: #1005 “ AQ UATA”
Style: #1006 “ADORA”
Poly-Fabric Crossbody with Front Opening and Fish Skin Leather Details
Poly-Fabric Crossbody with Fish Skin Leather Two Pocket Opening
Wholesale Cost: $225.85 Retail Price: $299
Wholesale Cost: $215.46 Retail Price: $299
Style: #1007 “ AUR O R A ” Fish Skin Leather Drawstring Backpack Wholesale Cost: $255.16 Retail Price: $350
Style: #1008 “ ALEN A ” Fish Skin Leather Double Zipper Backpack Wholesale Cost: $254.78 Retail Price: $350
PRODUCT LIFE CYCLE
1 2 32
DESIGN We acknowledge environmental impacts and weigh material choices long before a garment is made. Our materials come from many different places: a recycling center, the sea, and manufactured hardwarde from across the world. Sustainability is key and it starts from the beginning. Many of our fish skins come from the finest quality of salmon caught in the Northern regions of the United States.
PRODUCTION Industrial machines for textile production consume large amounts of energy, and the chemical intensive processes that leathers go through can have a large environmental impact. That is why we have chosen fish leathers that go through the eco-friendly tanning process, which means they do not use any harmful chemicals. “The fish skins are first passed through our tanning process. It initially involves de-scaling their surface using a drum and placing them in a de-liming ingredient. Afterwards, the skins are washed in a special organic solution, which prepares them for coloring by removing residual natural oils. Our tanning solution is then applied before we reach the final phases of finishing and polishing” (FishLeathers.com “Our Company”).
3 4 5
DISTRIBUTION Getting our products from manufacturers to our warehouse to retailers can be quite energy intensive. By keeping track of our miles and modes of transportation, whether it be by plane, train, truck, or ship, we will have a better understanding of what size our carbon footprint is. We located the closest manufacturers we needed for our product to minimize cost and emissions. See Appendix A for a full list of transportation costs.
USE We take pride in our product care because it requires minimal laundering. Just dry product with hand towel and keep away from direct sunlight.
END OF LIFE It is never in our hopes that a product reach the end of its lifecycle before its time, but we have a recycling program to put its fibers to a different product. We continue to strive and ensure that none of our products will reach the end before they are done. 33
BRANDING
LOGO & TAGLINE:
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a better environment starts with you and I
HANGTAGS:
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LABELS:
eUnoIa
a better environment starts with you and I
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100% Sustainable Backpacks www.eunoia.com
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CARE PAMPHLET FRONT:
Thank you for purchasing a Eunoia Backpack! You have now joined the movement to a better and cleaner environment. Visit our website for more information on fish skin leathers and what you can do to help. www.eunoia.com
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BACK:
HOW TO CARE FOR YOUR EUNOIA BACKPACK: -Dry product with hand towel -Store away from direct sunlight
EUNOIA’S SOURCING AND DISTRIBUTION:
We source our salmon fish skins from an eco-friendly tannery in Houston, Texas.
It is then ethically manufactured by the same company based in Houston, Texas.
The manufacturers then transport our finished products to our headquarters in San Francisco, California by truck.
It is then sold on our online store and shipped directly to you.
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CONSUMER EDUCATION The main consumer education will be done from our website where we will have an information tab called “Why Eunoia?” where we will cover relevant things such as: -How Eunoia excels in sustainability: educating our customer on the benefits of using fish skin leather and explaining how it is more sustainable than other animal leather. As well as our 600 Denier Recycled Polyester. -Eunoia is domestically manufactured: We manufacture all of our items domestically in an ethical manner. Making sure our manufacturer follows our values. -Eunoia’s Care Instructions: How to care for a Eunoia backpack in order to make the most of it while following sustainable regulations. -Eunoia Spread The Word: We want our customer to be able to not only feel like they made the right decision when buying a Eunoia backpack, but to also be able to spread the word and influence others to join the more sustainable path.
eUnoIa a better environment starts with U and I
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SHOP ONLINE 100% Sustainable Backpacks for everyday use! Manufactured in the US. Sold domestically.
MOCK-UP WEBSITE
CONCLUSION The goodwill that Eunoia advocates not only through the brand name itself, but through its actions makes the consumer more willing to become a part of the sustainability movement. We ensure quality, value, and mission in every single one of our products. By creating a loyalty between the brand and consumer, we believe that it will lead to a larger following. Each consumer deserves the right to the history and product lifecycle of each product because it is his or her environmental responsibility to know. With any movement, competitors see the success and join in. Educating the people is where it all begins. Knowledge of the subject, leads to action.
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SOURCES “Bags and Luggage in the US.” Euromonitor International. Euromonitor International, 4 Nov. 2014. Web. 29 Jan. 2015. <http://0-www.portal.euromonitor.com.library.scad.edu/portal/analysis/r elatedtab>. “Back to Cool: 10 Backpacks You Need for Spring.” Harper’s BAZAAR. 1 Jan. 2015. Web. 29 Jan. 2015. <http://www.harpersbazaar.com/fashion/trends/g3381/spring-backpacks/?slide=1>. Tutle, Brad. “Millennials Are Biggest Suckers for Selfish Impulse Buys | TIME.com.” Business Money Millennials Are Biggest Suckers for Selfish Impulse Buys Comments. TIME Magazine, 27 Apr. 2012. Web. 29 Jan. 2015. <http://business.time.com/2012/04/27/millennials-are-biggest-suck ers-for-selfish-impulse-buys/>. (TIME “Millennials Are Biggest Suckers for Selfish Impulse Buys”) “How Millennials Shop Online - EMarketer.” How Millennials Shop Online - EMarketer. EMarketer, 10 July 2013. Web. 29 Jan. 2015. <http://www.emarketer.com/Article/How-MillennI als-Shop-Online/1010031>. (eMarketer “How Millennials Shop Online - eMarketer”) “Millennials Buy More Clothing Than Previous Generations, and Other Shopping Habits.” Market Truth. 14 Mar. 2013. Web. 29 Jan. 2015. <http://www.market-truth.com/millenni als-buy-more-clothing-than-previous-generations-and-other-shopping-habits/>. (Market Truth “Millennials Buy More Clothing Than Previous Generations, and Other Shopping Habits”) “Tech-Savvy Gen Yers Still Flock to Stores, Challenging Retailers to Keep Up with the Quickly Chang ing Preferences of These Young Consumers.” Urban Land Institute ICal. Urban Land Institute, 16 May 2013. Web. 29 Jan. 2015. <http://uli.org/press-release/generationyretail/>. (Urban Land Institutes “Tech-Savvy Gen Yers Still Flock to Stores, Challenging Retailers to Keep Up with the Quickly Changing Preferences of these Young Consumers”) “Millennials A Portrait of Generation Next.” Pew Research Center. Pew Research Center, 1 Feb. 2010. Web. 29 Jan. 2015. <http://www.pewsocialtrends.org/files/2010/10/millennials-confi dent-connected-open-to-change.pdf>. “Our Fish Leather Advantages.” Sea Leather Wear. Sea Leather Wear. Web. 23 Feb. 2015. “The Truth Behind Millennial Shopping Habits.” Pythian Data Experts Blog. Pythian Data Experts, 22 Nov. 2013. Web. 23 Feb. 2015. “Jansport Warranty.” Backpacks, Bags & Luggage. Jansport. Web. 23 Feb. 2015. “MCM FAQ: Frequently Asked Questions.” MCM FAQ: Frequently Asked Questions. MCM. Web. 23 Feb. 2015.
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“Longchamp Care Instructions.” Longchamp. Web. 23 Feb. 2015. “Millennials: Confident. Connected. Open to Change.” Pew Research Centers Social Demographic Trends Project RSS. 23 Feb. 2010. Web. 24 Feb. 2015. Handley, Jen. “Marketing To Millennials: Four Distinct Segments.” Marketing To Millennials: Four Distinct Seg ments. Adobe, 13 June 2013. Web. 24 Feb. 2015. “At Last, A Millennial Segmentation | Millennial Marketing.” Millennial Marketing. Future Cast. Web. 24 Feb. 2015. “Elizabeth & James-Cynnie Perforated Backpack, Black/Ivory.” Neiman Marcus. Web. 27 Feb. 2015. “About - Herschel Supply Co.” Herschel Supply Co. Web. 27 Feb. 2015. “About Us-Jansport.” Backpacks, Bags & Luggage. Web. 27 Feb. 2015. “Longchamp Care Instructions.” Product Information. Web. 27 Feb. 2015. “Care.” MANSUR GAVRIEL. Web. 27 Feb. 2015. “Marc Jacobs.” New Q Mariska. Web. 27 Feb. 2015. “CORPORATE.” MCM. Web. 27 Feb. 2015. “M.A.B. Backpack.” Rebecca Minkoff. Web. 27 Feb. 2015. “Sustainability.” Stella McCartney. 31 Oct. 2012. Web. 27 Feb. 2015. “Nike Considered Design Index.” NikeBiz. Web. 27 Feb. 2015.
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APPENDIX
APPENDIX A-SOURCE INFORMATION Packaging-Box & Tissue Papers We our sourcing our Boxes and Tissue Papers for Packaging from Shanghai Yuxam International Co. from Alibaba.com. We communicated with their customer service employee and they supplied us with a cost sheet with quotes.
QUOTATION Company:
SCAD
Receiver:
Clarissa Koppel
Compan y: Sender:
Tel: Fax: Date:
13th February □for review
□urgent
□for authorization
Candy
Tel:
86-21-64392813
Fax:
86-021-64396086
Date:
13th February
■ask for prompt reply
Item
Dimension
Material/thickness
QTY
Unit price
Paper Box
20*18*6cm
2mm white paperboard with grey +157g coated paper
500
US$1.72
Tissue Paper
54*20cm
17g
1000
US$0.114 logo one color printing
Sample Making Cost
Shanghai Yuxuan International Trade C
Remark
Dimension of the Carton
□please comment Qty/Carton
G.W/Carton Similar Pictur
1-paper box with interpolation side 2-offset printing outside+matt film 3-logo embossment and white inside 4-structure like the picture
Payment Item
Delivery Item
Valid Time of the Price
L/C or T/T
FOB Shanghai
15 days
Fish Hooks Quote Information about quantity and price quotes were exchanged through Online Supplier Chatroom. It is primarily sourced from Alibaba.com with Nanjing Jiashanmei Imports and Exports, Co. in Mainland China. The contact person informed me that it will cost $0.10 for 1000 pieces of their “Faultless O’shaughnessy 9260 single high carbon steel fishing hooks size 8/0”. To be able to ship it to our Manufacturers in Houston, TX it will cost approximately $42 through DHL Express Shipping.
Zipper Quote Our zippers are coming from Shenzhen Yiyixing Zipper Manufactur Co. in Mainland China which we found on Alibaba.com. Information was exchanged through Alibaba’s Online Supplier Chatrooms. The contact person informed me that it will cost me $1.65 per piece (11 in. per piece) of their “Black Nylon Zipper-auto lock, size-10mm wide teeth, 90 inches” To be able to ship it to our Manufacturers in Houston, TX it will cost $570 through UPS Express Shipping.
Hangtags Quote Information about our Hangtags was exchanged through Alibaba’s Online Supplier Chatrooms. The products are being sourced from Guangzhou Honyun Apparel Accessories, Co. in Mainland China. The contact person informed me that it will cost me $0.113 per piece if ordered 2000 quantities. These are their “White embossed hangtags with cotton string”. They have included shipping in the cost already.
Hex Nuts Quote We are sourcing our Hex Nuts from Jamestown Distributors, a wholesaler in 17 Peckham Drive Bristol, RI 02809. We communicated via their Live Chat with one of their customer service employees that helped us figure out what we were looking for. They gave us a quote for our Hex Nuts.
Poly-Fabric Quote We are sourcing our “Black 600x300 Denier Recycled PVC-Coated Polyester Fabric” from OnlineFabricStore.net, a Wholesale retailer in China.
Fish Skin Leather Quote We are sourcing and manufacturing our fish skin leathers and backpacks from Fishleathers.com. They are located at 2405 Rosewood Street Houston, TX 77004. Phone number: 832-627-3599. We communicated with their customer service employee Charlie Gu via e-mail negotiating prices and deciding upon leathers. From: charlie gu [sales@fishleathers.com] To: me [annettezuozo@yahoo.com] Feb 21 at 9:13 AM Hi Zuozo We don’t make skins size, this is fish size about 2”-4” wide x 28”- 22” long a pieces skin, if you want 8 yards /S. We will also give you 35% off retail price. Call me at 8326273599. For more infore. charlie Sales, FishLeathers.com -----Original Message----From: Annette Zuozo [mailto:annettezuozo@yahoo.com] Sent: Tuesday, February 10, 2015 3:47 PM To: sales@fishleathers.com Subject: Salmon Fish Skins Hello, I am really interested in your salmon fish skin leathers for a project I am doing. However, I need about 8 yards worth of the leathers. I see that you only have them made in pieces, but an average amount of pieces that would equal up to the 8 yards is okay in black (F-12), grey (F-11), and blue (F-08) unglossed. Is there any way you can give me a quote for how much this will cost me to purchase from your company? Please let me know as soon as possible. Thank you. Annette Zuozo
Pamphlet Papers Quote We are sourcing our paper pamphlets for promotional marketing from PsPrint, 2861 Mandela Parkway, Oakland, CA 94608. They specialize in fast wholesale printing. We determined our price quote from their online website.
APPENDIX B-COST SHEETS COST SHEET BACKPACK: ANAYA “ANAYA”
DATE: 10-FEB-2015 SEASON: F/W 2016 STYLE #: 1001 CATEGORY: BACKPACK DESCRIPTION: FLAP HOOKED BACKPACK COLOR: Black
MATERIAL
Fish Skin Leather Poly Fabric
AMOUNT COST PER YARD TOTAL AMOUNT 1 yd 2 yd
$67.76 $3.70 Total Cost of Materials:
TRIMS
AMOUNT
LABOR
Fish Hook Hex Nut
Assembly
1 1
COST EACH
$0.14 $0.17 Total Cost of Trims:
TOTAL AMOUNT
COST
HOURS
COST
$7.25/hr
15 Total Cost of Labor:
$108.75 $108.75
COST EACH
TOTAL COST
PACKAGING Hangtags Boxes Tissue Paper Pamphlets
$67.76 $7.40 $75.16
$0.11 $1.72 $0.11 $0.36 Total Cost of Packaging: Total Cost of Goods: MU% Wholesale Price: MU% Retail Price:
$0.14 $0.17 $0.31
$0.11 $1.72 $0.11 $0.36 $2.30 $186.52 20% $223.82 40% $313.35 $315.00
COST SHEET BACKPACK: “AVA” AVA
DATE: 10-FEB-2015 SEASON: F/W 2016 STYLE #: 1002 CATEGORY: BACKPACK DESCRIPTION: MINI FLAP HOOKED BACKPACK COLOR: Grey, Black
MATERIAL
Fish Skin Leather Poly Fabric
AMOUNT COST PER YARD TOTAL AMOUNT 1/2 yd 1 yd
$67.76 $3.70 Total Cost of Materials:
TRIMS
AMOUNT
LABOR
Fish Hook Hex Nut
Assembly
1 1
COST EACH
$0.14 $0.17 Total Cost of Trims:
TOTAL AMOUNT
COST
HOURS
COST
$7.25/hr
10 Total Cost of Labor
$72.50 $72.50
COST EACH
TOTAL COST
PACKAGING Hangtags Boxes Tissue Paper Pamphlets
$33.88 $3.70 $37.58
$0.11 $1.72 $0.11 $0.36 Total Cost of Packaging: Total Cost of Goods: MU% Wholesale Price: MU% Retail Price:
$0.14 $0.17 $0.31
$0.11 $1.72 $0.11 $0.36 $2.30 $112.69 20% $135.23 40% $189.32 $189.00
SHEET BACKPACK:COST “ADELAIDE” ADELAIDE
DATE: 10-FEB-2015 SEASON: F/W 2016 STYLE #: 1003 CATEGORY: BACKPACK COLOR: Blue Navy, DESCRIPTION: SINGLE STRUCTURED BACKPACK Black
MATERIAL
Fish Skin Leather Poly Fabric
AMOUNT COST PER YARD TOTAL AMOUNT 1 yd 2 yd
$67.76 $3.70 Total Cost of Materials:
TRIMS
AMOUNT
LABOR
Fish Hook Zipper
Assembly
3 22 in
COST EACH
$0.14 $2.22/per 11 inches Total Cost of Trims:
TOTAL AMOUNT
COST
HOURS
COST
$7.25/hr
18 Total Cost of Labor:
$130.50 $130.50
COST EACH
TOTAL COST
PACKAGING Hangtags Boxes Tissue Paper Pamphlets
$67.76 $7.40 $75.16
$0.11 $1.72 $0.11 $0.36 Total Cost of Packaging: Total Cost of Goods: MU%: Wholesale Price: MU% Retail Price:
$0.42 $4.44 $4.86
$0.11 $1.72 $0.11 $0.36 $2.30 $212.82 20% $255.38 37% $349.88 $350.00
COST “ADELA” SHEET BACKPACK: ADELA
DATE: 10-FEB-2015 SEASON: F/W 2016 STYLE #: 1007 CATEGORY: BACKPACK DESCRIPTION: DRAWSTRING BACKPACK COLOR: Black
MATERIAL
Fish Skin Leather Poly Fabric
AMOUNT COST PER YARD TOTAL AMOUNT 2 yd 1 yd
$67.76 $3.70 Total Cost of Materials:
TRIMS
AMOUNT
LABOR
Fish Hooks Hex Nut
Assembly
2 2
COST EACH
$0.14 $0.17 Total Cost of Trims:
TOTAL AMOUNT
COST
HOURS
COST
$7.25/hr
10 Total Cost of Labor:
$72.50 $72.50
COST EACH
TOTAL COST
PACKAGING Hangtags Boxes Tissue Paper Pamphlets
$135.52 $3.70 $139.22
$0.11 $1.72 $0.11 $0.36 Total Cost of Packaging: Total Cost of Goods: MU%: Wholesale Price: MU% Retail Price:
$0.28 $0.34 $0.62
$0.11 $1.72 $0.11 $0.36 $2.30 $214.64 20% $257.57 40% $360.60 $360.00
BACKPACK:COST“AQUATA” SHEET
AQUATA DATE: 10-FEB-2015 SEASON: F/W 2016 STYLE #: 1005 CATEGORY: BACKPACK COLOR: Blue Navy, DESCRIPTION: FRONT OPENING CROSSBODY Black
MATERIAL
AMOUNT
TRIMS
AMOUNT
LABOR
Fish Skin Leather Poly Fabric
Fish Hook Zipper
Assembly
1 yd 2 yd
$67.76 $3.70 Total Cost of Materials:
$67.76 $7.40 $75.16
1 11 in
COST EACH
$0.14 $2.22 Total Cost of Trims:
TOTAL AMOUNT
COST
HOURS
COST
$7.25/hr
15 Total Cost of Labor:
$108.75 $108.75
COST EACH
TOTAL COST
PACKAGING Hangtags Boxes Tissue Paper Pamphlets
COST PER YARD TOTAL AMOUNT
$0.11 $1.72 $0.11 $0.36 Total Cost of Packaging: Total Cost of Goods: MU%: Wholesale Price: MU% Retail Price:
$0.14 $2.22 $2.36
$0.11 $1.72 $0.11 $0.36 $2.30 $188.57 20% $226.28 32% $298.69 $299.00
BACKPACK:COST“ADORA” SHEET
ADORA DATE: 10-FEB-2015 SEASON: F/W 2016 STYLE #: 1006 CATEGORY: BACKPACK DESCRIPTION: TWO POCKET CROSSBODY COLOR: Grey, Black
MATERIAL
AMOUNT
TRIMS
AMOUNT
LABOR
Fish Skin Leather Poly Fabric
Fish Hook Zipper
Assembly
1/2 yd 2 yd
$67.76 $3.70 Total Cost of Materials:
$33.88 $7.40 $41.28
2 28 in
COST EACH
$0.14 $2.22 Total Cost of Trims:
TOTAL AMOUNT
COST
HOURS
COST
$7.25/hr
18 Total Cost of Labor:
$130.50 $130.50
COST EACH
TOTAL COST
PACKAGING Hangtags Boxes Tissue Paper Pamphlets
COST PER YARD TOTAL AMOUNT
$0.11 $1.72 $0.11 $0.36 Total Cost of Packaging: Total Cost of Goods: MU%: Wholesale Price: MU% Retail Price:
$0.28 $5.55 $5.83
$0.11 $1.72 $0.11 $0.36 $2.30 $179.91 20% $215.89 38% $297.93 $299.00
SHEET BACKPACK:COST “AURORA” AURORA
DATE: 10-FEB-2015 SEASON: F/W 2016 STYLE #: 1004 CATEGORY: BACKPACK DESCRIPTION: DOUBLE STRUCTURED BACKPACK COLOR: Grey, Black
MATERIAL
Fish Skin Leather Poly Fabric
AMOUNT COST PER YARD TOTAL AMOUNT 1 yd 2 yd
$67.76 $3.70 Total Cost of Materials:
TRIMS
AMOUNT
LABOR
Fish Hook Zipper Hex Nut
Assembly
3 22 in 1
COST EACH
$0.14 $2.22 $0.17 Total Cost of Trims:
TOTAL AMOUNT
COST
HOURS
COST
$7.25/hr
PACKAGING
Hangtags Boxes Tissue Paper Pamphlets
$67.76 $7.40 $75.16
$0.42 $4.44 $0.17 $5.03
18 Total Cost of Labor:
$130.50 $130.50
COST EACH
TOTAL COST
$0.11 $1.72 $0.11 $0.36 Total Cost of Packaging: Total Cost of Goods: MU%: Wholesale Price: MU% Retail Price:
$0.11 $1.72 $0.11 $0.36 $2.30
$212.99 20% $255.59 37% $350.16 $350.00
COST“ALENA” SHEET BACKPACK: ALENA
DATE: 10-FEB-2015 SEASON: F/W 2016 STYLE #: 1008 CATEGORY: BACKPACK COLOR: Black DESCRIPTION: DOUBLE OPENING BACKPACK
MATERIAL
AMOUNT
TRIMS
AMOUNT
LABOR
Fish Skin Leather Poly Fabric
Fish Hook Zipper
Assembly
1 yd 2 yd
$67.76 $3.70 Total Cost of Materials:
$67.76 $7.40 $75.16
2 22 in
COST EACH
$0.14 $2.22 Total Cost of Trims:
TOTAL AMOUNT
COST
HOURS
COST
$7.25/hr
18 Total Cost of Labor:
$130.50 $130.50
COST EACH
TOTAL COST
PACKAGING Hangtags Boxes Tissue Paper Pamphlets
COST PER YARD TOTAL AMOUNT
$0.11 $1.72 $0.11 $0.36 Total Cost of Packaging: Total Cost of Goods: MU%: Wholesale Price: MU% Retail Price:
$0.28 $4.44 $4.72
$0.11 $1.72 $0.11 $0.36 $2.30 $212.68 20% $255.22 37% $349.65 $350.00
APPENDIX C-NIKE INDEX To calculate a score for our competitors impact on susatinability we used the Nike Considered Design Index. By inputting information about the materials the brands use for their products it will calculate a score and give note if it needs improvement or not. We had to also input our brands information to receive a score for our product line.
ELIZABETH & JAMES:
EUNOIA:
HERSCHEL SUPPLY CO:
JANSPORT:
LONGCHAMP:
MANSUR GAVRIEL:
MARC BY MARC JACOBS:
MCM:
REBECCA MINKOFF:
STELLA MCCARTNEY:
TORY BURCH:
Heejun Hwang Erin Kelly Clarissa Koppel Annette Zuozo FASM 400-03