FASM 420 Global Sourcing Chuyang Deng DohAh Lee
Stüssy is a clothing brand and private company started in the early 1980s by Shawn Stussy. The company is one of many that benefited from the surfwear trend originating in Orange County, California, but it has largely been adopted by the streetwear and hip-hop scenes. The logo which has defined the brand started in the early 1980s after Shawn Stussy began scrawling his surname on his handcrafted surfboards with a broad tipped marker. He began using the logo on T-shirts, shorts and caps that he sold out of his car around Laguna Beach, California. The signature was derived from that of his uncle, Jan Stussy. In 1984, Stussy and his friend, Frank Sinatra Jr., partnered to sell the apparel. The company expanded to Europe by 1988 and later opened a boutique store in SoHo, New York. The brand continued to open successful locations throughout the 1990s. It was reported that revenues reached $17 million in 1991 and $20 million in 1992. By 1992, the brand was sold throughout the United States at specialty boutiques and department stores alongside other high-priced “California lifestyle” clothing. Outside of the country, the brand was found in specialty shops alongside clothing from high-end international designers. In 1996, Stussy resigned as president of the company and Sinatra bought his share of the company holdings. According to the company’s website, the brand is available in company branded stores and other retailers in Europe, Asia, the United States, Canada and Australia. The early success of the brand has been attributed to its popularity in the hip-hop DJ and Skater / Surfer scenes. The brand was also embraced by Punks and other street subcultures. In a 1992 interview Stussy said: “Everybody calls it surf wear, or urban street wear, or surf street... I don’t name it, and I don’t name it on purpose.”
COUNTRY
Country Into
Japan is a sovereign island nation in Eastern Asia. Located in the Pacific Ocean, it lies off the eastern coast of the Asia Mainland (east of China, Korea, Russia) and stretching from the Sea of Okhotsk in the north to the East China Sea and near Taiwan in the southwest. Japan is a stratovolcanic archipelago and consisting about 6,852 islands. The four largest are Honshu, Hokkaido, Kyushu and Shikoku, which make up about ninety-seven percent of Japan’s land area and often referred as home islands. The country is divided into 47 prefectures in eight regions. Hokkaido beings the northernnmost prefecture and Okinawa beings the southernmost one. The population of 127 million is the world’s tenth largest. Japanese people make up 98.5% of Japan’s total population. Approximately 9.1 million people live in the core city of Tokyo,the capital of Japan. Japan is a member of the UN, the OECD, the G7, the G8, and the G20 and is considered a great power.The country has the world’s third-largest economy by nominal GDP and the world’s fourth-largest economy by purchasing power parity. It is also the world’s fourth-largest exporter and fourth-largest importer. The country benefits from a highly skilled workforce and is among the most highly educated countries in the world with one of the highest percentages of its citizens holding a tertiary education degree.
Culture
Anime is Japanese hand-drawn or computer animation. The word is the abbreviated pronunciation of “animation� in Japanese, where this id references. Japan, anime is used to refer specifically to animation from Japan or as a Japanese-disseminated animation style often characterized by colorful graphics, vibrant characters, and fantastical themes.
Culture
They’re health conscious and take great care in what they eat. We think what she’s trying to say here is that these people place a high value on fresh, seasonal food and take great pains with presentation.
They get irritated when others aren’t punctual or can’t keep promises. In other words, they’ll probably get along well with people from the country where station staff have mastered the seven-minute-art of cleaning the bullet train:
They enjoy taking baths–it’s the height of relaxation. They are economical and hate wasting things. There is also a very specific Japanese word for this trait–mottainai.
Culture
Mount Fuji Mount Fuji , located on Honshu Island, is the highest mountain in Japan at 3,776.24 m. An active stratovolcano that last erupted in 1707–08, Mount Fuji lies about 100 kilometres south-west of Tokyo, and can be seen from there on a clear day. Mount Fuji’s exceptionally symmetrical cone, which is snow-capped several months a year, is a well-known symbol of Japan and it is frequently depicted in art and photographs, as well as visited by sightseers and climbers.
Sakura
Sakura is the Japanese term for ornamental cherry blossom trees and their blossoms.
Social
Japanese social hierarchy portrays a systematic classification of all the social classes in the Japanese social society. This hierarchy is quite different from the social system that was employed in the ancient Japan as since the ancient times society has undergone several structural changes. The major difference has been due to the modernization of society and culture in Japan along with certain changes in educational trends over the years. Japanese social hierarchy broadly gets divided in 3 parts which further gets divided in some sub parts. This classification is on the basis of power, money and social status a person holds in the social society of Japan. The in-depth description of this Japanese social hierarchy is abridged as below in a manner starting with the top most social class and ending with the lowest one.
Economy
The economy of Japan is the third-largest in the world by nominal GDP and the fourth-largest by purchasing power parity (PPP). and is the world’s second largest developed economy. According to the International Monetary Fund, the country’s per capita GDP (PPP) was at $37,519, the 28th highest in 2014, down from the 22nd position in 2012. Japan is a member of the G7. The Japanese economy is forecasted by the Quarterly Tankan survey of business sentiment conducted by the Bank of Japan. Nikkei 225 presents the monthly report of top Blue chip (stock market) equities on Japan Exchange Group. Due to a volatile currency exchange rate, Japan’s GDP as measured in dollars fluctuates widely. Accounting for these fluctuations through use of the Atlas method, Japan is estimated to have a GDP per capita of around $38,490. Japan is the world’s third largest automobile manufacturing country, has the largest electronics goods industry, and is often ranked among the world’s most innovative countries leading several measures of global patent filings. Facing increasing competition from China and South Korea, manufacturing in Japan today now focuses primarily on high-tech and precision goods, such as optical instruments, hybrid vehicles, and robotics. Besides the Kantō region, the Kansai region is one of the leading industrial clusters and manufacturing centers for the Japanese economy. Japan is the world’s largest creditor nation Japan generally runs an annual trade surplus and has a considerable net international investment surplus. As of 2010, Japan possesses 13.7% of the world’s private financial assets (the third largest in the world) at an estimated $13.5 trillion. As of 2015, 54 of the Fortune Global 500 companies are based in Japan, down from 62 in 2013.
Geography
Japan is an island nation in East Asia comprising a stratovolcanic archipelago extending along the continent’s Pacific coast. It lies between 24° to 46° north latitude and from 123° to 146° east longitude. Japan is southeast of the Russian Far East, separated by the Sea of Okhotsk; slightly east of Korea, separated by the Sea of Japan; and east-northeast of China and Taiwan, separated by the East China Sea. The closest neighboring country to Japan is the Russian Federation. The major islands, sometimes called the “Home Islands”, are (from north to south) Hokkaido, Honshu (the “mainland”), Shikoku and Kyushu. There are 6,852 islands in total, including the Nansei Islands, the Nanpo Islands and islets, with 430 islands being inhabited and others uninhabited. In total, as of 2006, Japan’s territory is 377,923.1 km2 (145,916.9 sq mi), of which 374,834 km2 (144,724 sq mi) is land and 3,091 km2 (1,193 sq mi) water. Location: Eastern Asia, island chain between the North Pacific Ocean and the Sea of Japan, east of the Korean Peninsula. Map references: Asia, Oceania Area: total: 377,915 km² land: 364,485 km² water: 13,430 km² notes: Includes the Bonin Islands, DaitIslands, Minami-Tori-shima, Okinotorishima, the Ryukyu Islands, and the Volcano Islands. Ownership of the Senkaku Islands and Liancourt Rocks is in dispute. Land boundaries: none Coastline: 29,751 km (18,486 mi) Maritime claims:
BUSINESS
Labor
The labor force in Japan numbered 65.9 million people in 2010, which was 59.6% of the population of 15 years old and older, and amongst them, 62.57 million people were employed, 3.34 million people were unemployed which made the unemployment rate 5.1%. The structure of Japan’s labor market experienced gradual change in the late 1980s and continued this trend throughout the 1990s. The structure of the labor market is affected by: 1) shrinking population, 2) replacement of postwar baby boom generation, 3) Increasing numbers of women in the labor force, and 4) workers’ rising education level. Also, increase in numbers of foreign nationals in the labor force is foreseen.
Input
Japan has some cultural philosophies that they apply to their economy and that could possibly be a reason for much of their success in the economic sector. For instance they have a principle called “Nemawashi� which is where before making any major change in business you gather the support and input from all those involved whether it be a manager or a low level employee, by doing this you gain their support and it makes the change that much easier. This adaptability helps them to stay competitive in the world market.
Transportation
Transportation in Japan is modern and highly developed. Japan’s transportation sector stands out for its energy efficiency: it uses less energy per person compared to other countries, thanks to a high share of rail transportation and low overall travel distances. Transportation in Japan is also very expensive in international comparison, reflecting high tolls and taxes, particularly on automobile transport. Dozens of Japanese railway companies compete in regional and local passenger transportation markets; for instance, seven JR Group companies, Kintetsu Railway, Seibu Railway, and Keio Corporation. Often, strategies of these enterprises contain real estate or department stores next to stations. Some 250 high-speed Shinkansen trains connect major cities. All trains are known for punctuality. There are 176 airports, and the largest domestic airport, Haneda Airport, is Asia’s busiest airport. The largest international gateways are Narita International Airport (Tokyo area), Kansai International Airport (Osaka/Kobe/Kyoto area), and Chōbu Centrair International Airport (Nagoya area). The largest ports include Nagoya Port.
Product
Japan’s major export industries include automobiles, consumer electronics (see Electronics industry in Japan), computers, semiconductors, copper, iron and steel. Additional key industries in Japan’s economy are petrochemicals, pharmaceuticals, bio-industry, shipbuilding, aerospace, textiles, and processed foods. Japanese manufacturing industry is heavily dependent on imported raw materials and fuels.
Population
The business climate in Japan seems to be improving. According to the Wall Street Journal, business investment in Japan rose for the first time in 3 quarters of 2016. During the October to December period, in a positive sign that will be used to revise fourth-quarter GDP figures according to the Ministry of Finance, capital spending grew 7.6%. However, the data also showed Japanese companies remain under pressure, with pre-tax profits decreasing by 10.3% during the period compared with a year earlier and corporate sales falling 1.3%, said the paper. “Overseas economies are likely to keep improving, and that should lead to further weakening in the yen,” Mr. Takuji Aida, an economist at UBS in Tokyo commented to reporters. “If this momentum continues, Japan’s domestic demand will increase and deflationary pressure will ease. The trend is changing to a better direction.” Japan has been hit hard in agricultural and fishery exports in 2016. The country’s export fell 8.3% in 2016 because other countries restricted imports on worries about radiation contamination, according to statistics form the Ministry of Agriculture, Forestry and Fisheries. After the March 2016 nuclear disaster in Japan, more than 40 nations and regions limited imports from Japan. The exports have declined also because the value of the yen currency rose.
SWOT
Celebrity Approval Fashionable products and high quality Large underground folloing Fully functioning website Presence on Social Media
Develop an advertising campaign
Increase online availability Increase the number of independent stores Collaborate with luxury brands Formal advertising Expand the customer range
S O
W T
No formal Advertising Narrow audience range Lack of style Lack of independent stores in US
Competition from SPA brands Risk of deparing from their under ground roots for commercialization Lose Brand Identity
Business Etiquette
Negotiation Styles and Strategies
Personal relationships are very important. Unlike some countries in the west, e.g. USA, the Japanese do not base their business relationships around legal contracts to the same extent. Instead, the Japanese prefer to connect personally with their counterparts and to form a certain level of trust. So do not try to push for quick decisions based on long, detailed contracts
Type of Communication
According to cross cultural analysts, Japanese people often communicate with each other without using words, heart-to-heart, like telepathy. The Japanese call this “ishin denshin”. It is more subtle, more indirect. Saving face and not embarrassing people are important. This is quite different from Americans. We love “straight talk”
Appropriate Business Attire
In Japanese business etiquette dress code and appearance hold a very high value. The Japanese are very formal and frequently dress to impress despite having a somewhat conservative demeanor. The rule of thumb is to always play it safe and dress formally. Stick to dark colors preferably black or dark blue. Wear shoes that are easy to put on and remove as you will likely be doing so quite often.
Greetings
Start with a greeting. The simplest greeting is Konnichiwa, which means Hello or Good Afternoon. Introduce yourself. The two most common ways to introduce yourself are Watashi no namae wa __________ desu. (My name is __________.) or Watashi wa Sumisu __________ desu (I’m __________.). Inquire about his or her name. Use the more formal form because you’re meeting the person for the first time: O-namae wa nan desu ka. (What’s your name?) O-namae wa? (Your name?)
First Name or Title
Japanese first names also commonly consist of two kanji. The meanings of those kanji are often positive characteristics such as intelligence, beauty, love or light, names for flowers, the four seasons and other natural phenomena, or the order of birth (first son, second son, etc.). san: (for example Sato-san) This is the most neutral and famous title, and can be used in most situations. Only in formal situations, san may not be polite enough. sama: (for example Sato-sama) This is a more polite form of san, commonly used in formal situations and letters, but too polite in a casual context. kun: (for example Yusuke-kun) This is an informal title used for boys and men that are younger than yourself. chan: (for example Megumi-chan) This is an informal title used for young children and very close friends or family members. sensei: (for example Sato-sensei) This is a title used for teachers, doctors and other people with a higher education and from whom you receive a service or instructions.
Gift Giving
Gift-giving is an important part of Japanese business protocol. Moreover, gifts are exchanged among colleagues on July 15 and January 1 to commemorate midyear and the year’s end respectively. The emphasis in Japanese business culture is on the ritual of gift-giving, rather than the gift itself. For this reason, you may receive a gift that seems too modest, or conversely, extravagant. An expensive gift will not be perceived as a bribe. Present gifts with both hands. Before accepting a gift, it is polite to modestly refuse at least once or twice before finally accepting.
Table Manner
The pointed ends of the chopsticks should be placed on a chopstick rest when the chopsticks are not being used. However, when a chopstick rest is not available as is often the case in restaurants using waribashi (disposable chopsticks), a person may make a chopstick rest by folding the paper case that contained the chopsticks. Reversing chopsticks to use the opposite clean end is commonly used to move food from a communal plate, and is acceptable if there are no communal chopsticks (for example, if the meal is hosted at someone’s home). Begin your meal by saying “Itadaki-masu” which means “I humbly receive.” Knowing a few other Japanese language basics can bolster confidence as well. When eating ramen or soup, you can sip directly from the bowl. Lift the bowl to your mouth with your other hand; avoid holding chopsticks and a small bowl in the same hand. Don’t be surprised to hear slurping noises from around the table. Unlike in the West, slurping your soup is not only acceptable, it shows that you are enjoying the meal! Cleaning your plate, even all of the rice, is considered proper Japanese dining etiquette -- never waste food that you have put onto your plate.
IMPORT
Harmonized Tariff System
The Harmonized Commodity Description and Coding System, also known as the Harmonized System (HS) of tariff nomenclature is an internationally standardized system of names and numbers to classify traded products. About Find an HS code. The Harmonized Item Description and Coding System (HS) is an international standard maintained by the World Customs Organization (WCO) that classifies traded products. Items are identified by a 6-digit harmonized number that is recognized by countries that have adopted the harmonized system. The Harmonized Tariff Schedule of the United States (HTSUS), also referred to as the Harmonized Tariff Schedule of the United States Annotated (HTSA), is the primary resource for determining tariff (customs duties) classifications for goods imported into the United States.
The HTS code for being imported products 6109.10.0004. T-shirts, all white, short hemmed sleeves, hemmed bottom, crew or round neckline, or V-neck with a mitered seam at the center of the V, without pockets, trim or embroidery. Chapter 61 ARTICLES OF APPAREL AND CLOTHING ACCESSORIES, KNITTED OR CROCHETED 1See section XI, statistical note 5. Heading 6109 does not cover garments with a drawstring, ribbed waistband or other means of tightening at the bottom of the garment. Subhedding 6109.10.00. - of cotton Tariff item Certain garments of chapter 61 assembled abroad from components formed and cut in the United States which, after assembly have been subject to bleaching, garment dyeing or perma-pressing abroad, may be eligible for entry under a Special Access Regime. Eligibility must be established under a bilateral agreement, and entry must be in compliance with procedures established by the Committee for the Implementation of Textile Agreements. The importer is required to identify such garments on the entry summary or withdrawal forms by placing the symbol “H� as a prefix to the appropriate 10-digit chapter 61 tariff number.
United States-Japan
Importing (bringing goods into the United States) is also subject to restrictions as well as to special taxes known as “duties” (set forth in a “tariff” schedule). It will be helpful to develop a relationship with a reputable customs broker for advice and assistance when importing goods into the U.S. The customs broker can help you determine whether and what duties are applicable to the goods you are importing. Four factors play a role in the calculation of duties: classification under the Harmonized Tariff Schedule of the United States; the product’s country of origin; status of entry (for example, products imported into a foreign trade zone may have lower or no duties); and product value. U.S. import laws require many imported products, if being resold in the United States as is or with minimal change, to be marked to show the country of origin. Failure to comply with “country of origin” marking requirements can be very expensive.
Cost sheet
Cost sheet
Shipping
Route: Kobo - Long Beach Cargo: 17 CTN * 0.3 MT Services& Fee - Road Haulage(JA) $108 - CCO- Customs Clearance Origin(JA) $0 - ODF- Documentation Fee- Origin(JA) $70 - OHC- Original Handling Carge(THC) (JA) $156 - Ocean Freight Rate $1331, 85 - Road Haulage(US) $ 157 - THC-Terminal Handling Service (US) $240 - Port Fee $160 Total $2,222.85
volume of Container 240*96*96 Volume of corrugate box 18*18*15 Volume of per box 13.5*8*4.5 Number of box in container 2211840/4860 = 46 Number of clothes box in per box 4860/ 486 = 10 Number of clothes shipped 46*10 = 460 For both styles, we will use same size of box. All the boxes will place into a corrugate box. In this shippment we will ship 207 units of each styles with a total 460 units of cloths
Entry Process
Entry Document
Insurance and Landing
Source http://www.stussy.com/feature https://en.wikipedia.org/wiki/St%C3%BCssy http://www.japanesebusinessresource.com/ http://executivesjapan.com/japanese-business-meeting-etiquette/ http://business.lovetoknow.com/business-slideshows/ japanese-business-culture http://www.dannychoo.com/en/posts/category/culture/ landscape https://www.google.co.kr/search?biw=1366&bih=571&tbm=isch&sa=1&q=japanese+culture&oq=japanese+culture&gs_l=img.3...36919.38849.0.3893 2.0.0.0.0.0.0.0.0..0.0....0...1c.1.64.img..0.0.0.63vqtjHgvxg#imgrc=uYvqemvtqECRXM: http://www.fascinatingplanet.com/interesting-factsabout-japanese-culture-that-will-amaze-you/ http://cvngaji.myftp.org/bill-of-lading-form-usa.html http://voxeu.org/article/what-do-about-japan-s-current-exchange-rate
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