AN C
A M B E R
N A S H / / C O N N E L LY
R H E A / / N I C O L E
S T E F F E
D E S C R I P T I O N
COMPANY
M I S S I O N S TAT E M E N T A minimal evening wear line for the modern woman. V I S I O N S TAT E M E N T Using responsibly sourced materials to create the highest possible quality and produce timeless handcrafted pieces for every woman and style VA L U E S A.N.C is a company that operates on our core value to use responsibly sourced materials to create the highest possible quality product for our customer. In order to do so we have set the following standards to ensure that every aspect of designing, manufacturing, and distributing meets these standards set forth and that any subcontracted partner is operating at the same standard. P R O D U C T Evening Wear
C AT E G O R Y
SOURCING
G U I D E L I N E S
L E G A L
A N D
E T H I C A L
S TA N D A R D S
Anyone associated with A.N.C. must observe all international standards, and national and local laws and regulations while operating their business while holding the highest ethical standards
W A G E S ,
B E N E F I T S ,
T R A N S PA R E N T
W O R K I N G
R E C O R D
H O U R S
A N D
K E E P I N G
Anyone associated with A.N.C. must comply with all laws regulating local wages, overtime compensation, and legally mandated benefits. Wage and benefit regulations must be on par with national and local standards. Employees must not be required to work excessive hours per week including overtime and have the option of at least one day off out of seven. All records must be kept up to date.
H E A LT H A N D S A F E T Y Anyone associated with A.N.C. must ensure that their employees are provided a safe and healthy work environment, which include sanitary and safe conditions. E N V I R O N M E N TA L S U S TA I N A B I L I T Y Anyone associated with A.N.C. must have concern for environmental protection and follow all local and international environmental laws and operate and source in such a manner that respects the environment and local communities, specifically focusing on main issues like: deforestation, pollution, habitat loss, gas emissions. C H I L D L A B O R Anyone associated with A.N.C. must not use child labor, defined as employees under the age of 16. F O R C E D O R B O N D E D L A B O R Anyone associated with A.N.C. will not work with or purchase any materials or services that supports or utilizes forced or bonded labor.
C O M PA N Y Two flagship stores, one in Chicago the other in New York City TA R G E T C U S T O M E R Age: 23-35 Income: $40,000-$150,000 Location: Urban/ Metropolitan Areas
P R O D U C T C AT E G O R I E S Evening Gowns, Retail only. Item Range $250-$1000 P R O D U C T S Size range 0-12 Description High quality evening gowns. Retail sell price $250-$1000
M O N T H LY
L I N E
P L A N
U N I T
B R E A K D O W N
COUNTRY
S E L E C T I O N
I N D I A Location: Southern Asia Sustainability: Does not prioritize sustainability Labor laws: Minimum Wage is to be updated every 5 years to ensure fair wages, cannot exceed 48 hours in a work week no more than 10.5 hours a day. Technology: India is leader in technological innovation with many technology companies investing in the country. Trade: There are no free trade agreements between India and the US currently in place, however they do have the open skies agreement that increases air connectivity. Cost: Shipping costs to New York is $1623 and takes 26-50 days, Shipping to Chicago costs $770 and takes 30-45 days. Labor Costs: Wages from 5,000 Rupees a month ($75 USD)
I TA LY Location: Southern Europe Sustainability: The government encourages businesses to improve environmental standards and act responsibly, the government does not impose measures on sustainability but provides incentives for business that wish to do so. Labor laws: No child labor, fair wages. Italians work M-F 40 hours a week on average. Technology: Large Bio-technology market, 3rd largest in Europe. Trade: A member of the WTO, also a member of the ongoing T-TIP (transatlantic trade and investment partnership) Cost: Shipping Cost: Shipping to New York is $1406 and take 12-60 days Labor Cost: 19 Euros per hour ($20.43 USD per hour)
S R I L A N K A Location: Southern Asia, off of the southeast coast of India Sustainability: Takes sustainability very seriously, many of the factories are LEED and Gold and Platinum Certified. Labor laws: No Child Labor, no sweatshop conditions, little discrimination, fair wages Technology: Technologically advanced, innovative in fashion technology. Trade: No trade agreements with the United States Cost: Shipping to New York is $1,357 and will take 19-36 days. Labor Cost: Wages from 8,970 SLR- 11,330 SLR based on skill. ($60-$76 USD a month)
A N A L Y S I S
SUPPLIER
I N D I A Ghai Creations Specializes in bridal and evening gowns C-101, Okhla Industrial Area Phase-I, 110020 New Delhi, India I TA LY Giorgio Gori S.R.L. Manufacturer of high quality evening wear Via Goffredo Lepori, 9, 57014 Stagno Province of Livorno, Italy www.ggori.com S R I L A N K A Carlton Garment Pvt. Ltd. Skilled in many fabrics specialized in evening wear Kandy-Jaffna Highway, Medawachchiya, Sri Lanka
STRATEGY
P U B L I C A T I O N
We selected India, Italy, and Sri Lanka for three different reasons. India provides high quality materials like silk for a low price. Italy provides high quality materials but the cost is much higher. Sri Lanka has skilled workers and aligns themselves with our ethical standards regarding workers rights and sustainability.
When selecting suppliers we chose one supplier from each target country. We chose our suppliers based on what their product focus was and the skills they could provide. The supplier we chose in India is Ghai Creations for their knowledge of bridal and evening gown manufacturing. We chose Giorgio Gori in Italy because they are known for their high quality evening wear, manufacturing dresses for brands like Marchesa. In Sri Lanka we chose Carlton Garment because of their knowledge on a variety of materials and strong ethics.
India’s Ghai Creations has the ability to create a high quality products for us while maintaining a competitive price advantage due to the low labor wages in India. Italy is not cost effective at all with labor wages being around $20 USD per hour, much more than the US. But with manufacturing in Italy we ensure the highest quality of clothing and can attract customers with manufacturing country. Sri Lanka, like India, is very cost effective. They have low labor wages while being sustainable and ethically aligned with our standards.
COUNTRY
R A N K I N G
*scale of 1-10: 10 being the best, 1 being the worst
Business climate Costs Government Location Risks
S R I L A N K A
I N D I A
Explanation
I TA LY
Explanation
9
Emerging market, large manufacturing sector
8
Diversified economy, driven by manufacturing, high tax rate
8
Largest GDP in South Asia, competitive pricing
10
Costs for both materials and labor is low
5
9
Costs low for materials and labor
7
Government encourages free business, corruption an issue
Costs for materials and labor is very high
8
Stable but poor government finances
8
8
Strategic location dominating central Mediterranean
8
Southern Asia, natural resources
6
Frequent natural disasters, possible instability of the EU
8
TTP could harm industry, development could increase costs
8 7
Asia Pacific, strong infrastructure and resources Complex regulations, corruption scandals, worker strikes Literacy and education rates low, high unemployment rate
Social Stability
7
Sourcing Guidelines
6
Labor laws not always enforced
9
Textile industry
9
High quality materials (silk), manufacturing huge industry
9
Trade Agreements
5
No agreements with US
7
Trained work force
9
Large work force, enables quick turnaround
10
Socio-eco-political
8
Total
85
87
86
7.73
7.9
7.82
Average
Growing economy but poverty and working conditions and human rights an issue
9
8
Human development high, crime/ corruption present Treat employees well, ethical standards in place Strong industry known for their high quality Part of the EU, WTO, good relationship with US Highly skilled workers, focus on handcrafting Stable, highly developed, but suffer from uneven development
7
Explanation
Some investments restricted, import substitution policy interferes with trade
Diverse culture, less women in workforce
9
Ethical and sustainable, fair wages
8
Garment industry highest earning sector
5 9 7
No agreements with US 300,000 workers employed, not hand-crafted Future development and urbanization, steps taken to stop corruption
SUPPLIER R A N K I N G
*scale of 1-10: 10 being the best, 1 being the worst I N D I A
I TA LY
S R I
Abilities
9
8
7
Capacity
10
6
9
Lead Time
10
7
9
Quality
8
10
7
Customers
9
10
10
Sourcing Guidelines
7
9
6
Services Offered
10
10
9
Strategic Outlook
8
8
8
Total
71
68
65
Average
8.88
8.5
8.13
C R I T E R I A : Abilities- how many types of products can be manufactured Capacity- how much can produced on a monthly basis Lead Time- amount of time it takes to produce a product Quality- (high to low) in terms of materials, skilled labor force, perceived quality, etc. Customers- who they are, what they produce Sourcing Guidelines- how much is published Services Offered- is it a valued added service (pattern-making, design, etc.) Strategic Outlook- are they stable and will develop in the future
L A N K A
C O N C L U S I O N
STRATEGY
When seeking out manufacturers for our company we wanted to make sure that the companies could provide us with the highest quality product while staying at a low cost so we can maintain the target markup, all while standing up to our ethical standards and code of conduct. A.N.C. will not manufacture with companies that do not follow the guidelines set forth.
A minimal evening wear line for the modern woman.
SOURCES
http://panjiva.com http://www.intertek.com/textiles-apparel/ phx.corporate-ir.net/External.File?item...t= http://moodfabrics.com http://0-web.a.ebscohost.com.library.scad.edu/bsi/pdfviewer/pdfviewer?vid=8&si d=99260852-5768-4e9e-9cc8-6e75848bc247%40sessionmgr4009&hid=4106 http://0-www.portal.euromonitor.com.library.scad.edu/portal/analysis/related http://0-www.portal.euromonitor.com.library.scad.edu/portal/analysis/tab