UNDEFINED JEWELRY
SUPPLY CHAIN STRATEGY
LXFM 720
EVE XIA Â
TABLE OF CONTENT
• Brand Overview • Brand Introduction • Designer Introduction • Brand Mission • Brand Image • Product • Size & Price Range
• Competitor Analysis
• Market Analysis • Target Market • Market Size
• Corporate Social Responsibility
• Competitor Overview • Aurate • VRAI • The Last Line • Market Position • Competitive Advantage
• SWOT
•
Supply chain overall analysis
• Quality Assurance& Quality Control Plan
•
Make or Buy
• Packing
•
Macro supplier
• Warehousing & Logistics
•
Micro suppliers
• Transportation • Reverse Logistics
•
Production development
• Further Development Recommendation
•
Inventory management
• Performance Management
COMPANY OVERVIEW
DESIGNER
Kiera Junghyun Kim
2007- 2013
2013-2015
2016
2017
Founder Kiera Junghyun Kim received her B.A. double majoring in Fashion Design and Business Administration in South Korea. Fashion and Editorial credits include Vogue Korea, W Korea, The North Face, Swarovski, MCM, and brand commercials After her career as a vendor and fashion stylist, she joined her family business as a Marketing Team Lead to launch Italian label in Seoul. Her experiences navigating different duties allow her to understand the whole scope of the fashion world, Kiera saw the traditional fashion business as an industry where the work of designers fail to get substantial credit and they are regarded as just another stage towards a final product. Kiera wished to create a brand that gave identity to the production process, creating something that people could truly support. (Kiera Junghyun Kim ,2020)
BRAND INTRODUCTION The Undefined.
Established: In 2017, based in New York Designer: Kiera Junghyun Kim
Undefined. was founded in New York City by designer Kiera Junghyun Kim in 2017. Operating between Seoul, South Korea and NYC, all jewelry is handmade/handcrafted in New York City, using carefully-selected materials.
The company is dedicated to creating jewelry that is genderfluid, for all genders, and aims to disrupts media-centric definitions and the stereotypes of beauty. The brand put their effort to establish a new standard that is truly Undefined. The brand logo “Undefined” （the character “n” and “d” are designed by handwriting and it is actually written by designer herself. What is worth mentioning is that without the 2 letters, the brand name become U-define-.
“
Genderfluid, handmade jewelry brand based in New York. Undefined. challenges traditional concept of fine jewelry and designs by freely navigating precious materials, method of communication and design that makes our creations boundless.
�
BRAND IMAGE
unique, gender-fluid, one-of-a-kind, inclusive , undefined
PRODUCTION
Inspired by fine arts and the limitlessness of all human beings, Undefined. created a unique line up of rings, earrings, bracelets and necklaces.
Rings Earrings Bracelets Necklaces
Yellow Gold, Rose Gold, White Gold Options Available Upon Request.
MATERIAL : 925 STERLING SILVER ( RELATIVELY SOFT METAL )
Chunky jewelry made of silver, like most Undefined. jewelry product, are easily exposed to collisions with other surfaces which creates dents and small wounds. Over time, these will slide into each other and the surface and the underside of the jewelry to become "softer" and the cuts become less visible. Scratches and small bulks are not considered a defect, but just a sign of normal wear and tear. For blackened 925 sterling silver, the surface treatment eventually wears away in places, revealing the gleam of untreated silver.
Our distinctive signature style cuff features 3-way-styling.
SIZE & PRICE RANGE SIZE
PRICE RANGE
$ 85 ~ 895 Average $ 350
CHANNEL
Shipping: Domestic 2-3 days | International 3-5 days Free shipping for orders $250 +
ON LINE WEBSITE STORES AVAILABLE
1. 11Howard 11 Howard St, New York, NY 10013
2. Chelsea market/1 Common 75 9th Ave, New York City, NY 10011-7006 Shopping, Flea & Street Markets ("Chelsea Market (New York City) - 2020 All You Need to Know BEFORE You Go (with Photos) - TripAdvisor", 2020)
3. FlyingSolo 434 W Broadway, New York, NY 10012
MARKET ANALYSIS
CUSTOMER PROFILE
Demographic Segmentation •
Gender: Gender inclusive (Kolding, 2020)
•
Social status: middle class
•
Age groups: Millennial & early Gen Z
•
Occupations: artists, editors, professionals, fashion & art major students,
•
Age: 20~ 40
•
Online shopping experts
entrepreneurs, and international students
• •
(EventTrack 2018) ("Yahoo is now part of Verizon Media", 2020) ("Council Post: Understanding The Research On Millennial Shopping Behaviors", 2020)
Income Level : $45,200 to $135,600
CUSTOMER PROFILE
Psychographic Segmentation •
Early Majority
•
View shopping as a leisure activity
•
Have their own personality
•
Loves traveling
•
Technologically adept
•
Loves to discover new items
Buying Behavior • • • • •
Tend to gravitate toward purchases that are an expression of their personality Appeal to unique assortments & specialized store merchandising Shopping for clothes during leisure time Communication Channel: social media over email Enjoy events, such as pop-ups; experiential purchases create long-lasting memory and experienced compared to material purchases
MARKET SIZE
Jewelry market in US •
Personal Accessories Industry60% Jewelry sales global
•
Fine Jewelry- 86% of jewelry’s global value sales
•
Fine Jewelry U.S. sales grew 3% in 2019
•
Gold & Silver sales increased by 2.7% from 2015- 2019
•
Undefined Market Size: 0.0016%
MARKET SIZE
US
Compound Annual Growth Rate
• • •
Asia Pacific recorded the highest spending on jewelry globally in 2018，North America ranked the second Additionally, sales of jewelry in Asia Pacific grew at the fastest pace over 2013-2018， with CAGR of 4% China and India account for around 80% of sales of jewelry, followed by Japan.
JEWELRY MARKET IN US
ESTIMATE CUSTOMER SOUTH KOREAN
UNITED STATES Population Urban Population
329.45 million(2018) 82.256 % of total (2018)
20-40 years: 38.92% (male 64,893,670/female 64,564,565)
Population Urban Population
51.47 million(2018) 81.5 % of total (2018)
20-40 years: 45.13% (male 11,986,760 /female 11,220,268)
•
Potential customers
•
Age group X Unban percentage
•
United States： 106,487,166
•
South Korean： 18.913,727
MARKET SIZE Highlight in Jewelry Market
•
Consumers increasingly demand ethically- and sustainably-made products
•
As a result of the casualisation of dress codes in work and social spaces alike, many consumers no longer feel the need to restrict jewelry to formal occasions, increasingly wearing both fine and costume jewellery as everyday accessories
•
Increased usage occasions and the encouragement to “treat yourself” on social media has made female self-purchasing gain rapid popularity in the US
•
Self-purchasers often buy less expensive pieces, but in higher quantities at a time than gift givers
•
As consumers increasingly look towards social media platforms like Instagram to discover new products and brands, the convergence of these trends has brought about the rise of several social-media-savvy jewelry brands
COMPETITOR ANALYSIS
COMPETITIVE LANDSCAPE: AURATE
•
Approximately $4 million in annual revenue
•
Established in 2015 by Sophie Kahn & Bouchra Ezzahraoui
•
Closest to Undefined, but less of a unique, statement piece and more everyday items
•
Simple, but well-made products
•
CSR-focused in sourcing and sustainability
COMPETITIVE LANDSCAPE: VRAI
•
Approximately $3 million in annual revenue
•
Established in 2014 by Vanessa Stofenmacher
•
More luxurious and expensive - meant to be statement pieces or worn to upscale events
•
Special occasion pieces - they have engagement and Valentine’s Day sections
•
Want to “democratize fine jewelry,” but have pieces that are up to 5-figures
COMPETITIVE LANDSCAPE: THE LAST LINE
•
Approximately $1.5 million in annual revenue
•
Established in 2017 by Shelley Sanders
•
Meant to be worn as everyday costume jewelry - fun & funky
•
The Last Line possesses a very tongue-in-cheek brand voice - i.e. their About Me page is titled “WTF is The Last Line?”
•
Prioritizes the lack of markup
COMPETITIVE LANDSCAPE: PERCEPTUAL MAP
• •
Est. 2017.- 3 years $1.1 million.
• •
Approx. $4 mil. annual revenue Est. 2015.- 5 years
Fine
Modern
• •
Approx. $3 mil. annual revenue Est. 2014 - 6 years
• •
Approx. $1.5 mil. annual revenue Est. 2017 - 3 years
Luxury
Everyday
COOPERATION SOCIAL RESPONSIBILITY
SUPPLY CHAIN OVERALL ANALYSIS
SWOT
STRENGTHS Omni- channel (online &selected shop based in New York) Inclusive (males/females/gender fluid) Huge landscape of customer base Large customer based -Data-driven customer Strong brand image Emphasis -All the collections are project based and each designer focuses on a single piece Personalized design
OPPORTUNITY Various Global online retail platform Collaboration with local brands and artists Global market in Asia pacificďźŒespecially South Korea
WEAKNESS New start up brand with relatively lower brand awareness high cost of handmade manufacture efficiency capability of manufacturing
THREAT Fierce competition with plenty of jewelry brands targeting various demographic Customer expectation, hard to insight into all customer demand
Planning
Sourcing
Trading
Production
Cutting and polishing
Sales
Jewelry Manufacturing
Maketing …
Omni-Channel
raw material CURRENT STATUS
FURTHER DEVELOPMENT PLAN
• • •
Mainly Sterling Silver 925 sourced in the USA. Franco chain from Italy. Gold for special requests
Cheap material export countries Frequent shipping & transportation capability Price negotiation environment aspects/ concerns
Supports local businesses Functioning on an international scale by collaborating with artists globally. All collections are project-based and each designer focuses on a single piece Emphasis on the artistry of the work.
in-house capabilitiescost saving
Online Limited shops based in New York
strict with e-commerial channelAtlanta as a Distribution Center
• • • LONG TERM & SHORT TERM STRATEGY
Packaging inclusive LGBT group Shipments-strong logistic and posts
corps in Hong Kong—-Asia pacific market
Triple Constraint
Scope Time
cost Quality
Scope
The scope of the product is the most important aspect. We want our jewelry to make the same statements as our brand message of quality. We chose the quality of the products over the cost and time because we want the products to stand for inclusivity for everyone.
Cost We need to produce our products within a strict budget for being a small company. We are able to produce our products in a cost-effective manner due to our materials, including sterling silver and rhodium, and have many processes completed in-house.
Time We would prefer to have the products manufactured with quality in mind. The average amount of time for jewelry to be produced is 6-8 weeks and this would give us enough time to work with our supplier to ensure that the product is being made properly and represents the brand well.
Code of conduct Standard 1: Compliance with Laws and Regulations We are committed to complying to all applicable laws and regulations, including local and national codes, rules and regulations, applicable treaties and industry standards.
Standard 2: Gender and Racial Equality We are committed to respecting and promoting the importance of gender and racial equality. According to our mission statement,We acknowledge the equality of all genders and races.
Standard 3: Child Labour
Standard 4: Safety and Health We are committed to maintaining a workplace environment that complies with all applicable laws and industry standards so as to ensure a safe working environment. We are committed to providing our employees with the best possible human health and safety working condition
Standard 5: Environmental Compliance We are committed to complying with all applicable environmental laws and regulations and to introducing management and operating systems that minimize our impact on the environment. We are committed to disposing of waste substances in compliance with applicable laws and to taking steps to reduce the quantity of waste/emissions produced and energy/natural resources used.
Standard 6: Product Integrity We disclose the fineness of the silver we use, apply authorized silver quality marks
We are committed to preventing the employment of children. We will only employ young persons (below the age of 18 and older than 15 years) in specific circumstances (such as internship or vocational training)
Our business partners: All of our business partners will adhere to the same commitments as we do and apply the standards stated in our Code of Conduct (in addition to complying with laws, regulations and practices applicable in their country). These requirements and those further stated in our Code of Conduct bind our partners and constitute a condition of conducting business with undefined Jewelry . It is the responsibility of our business partners to communicate and explain these standards to their employees and to ensure that all subcontractors involved in the production and distribution of our products Any partner who is found to not to adhere and implement our Code of Conduct will be in breach of their commitments. We may therefore, at our sole discretion and without any compensation, immediately cancel any existing orders and terminate all existing agreements with such a partner.
MAKE OR BUY
MANAGEMENT STRUCTURE
Undefined jewelry is a small-scale jewelry company, it is a start-up company that has a limited product or a niche within the jewelry industry. Under the supervision of the designer herself, the business is organized according to the roles and skills into smaller groups or departments. This organization includes sales, marketing, production, and design.
• • •
Functional organization Current target market is the US market International with e-commerce, distribution center in Atlanta, or warehouse in Hong Kong
•
Centralized headquarters in NYC. Keeping HQ at the same place as current stores and customer base
•
Privately-held company by the designer herself to maintain greater control over the brand image and vision for the future; also maintains freedom in design and inclusivity
•
Cooperation with local designers & retail stores
PRODUCT PROCESS
• •
Undefined jewelry features in-house capabilities Most of the product is handmade in the NYC studio
• • • • •
Supports local businesses Functioning on an international scale by collaborating with artists globally All collections are project-based and each craftsperson focuses on a single piece Emphasis on the artistry of the work
Financially preferable to outsource raw materials and make in-house because rent in NYC is high
PRODUCE PROCESS OVERVIEW
Handmade Ring Process
Handmade Chain Process
Intellectual property
•
Copyrights ("The Crown Jewels: How to Protect Your Jewelry Designs | Lexology", 2020)
•
Copyrights can be a particularly useful tool in protecting jewelry designs. copyright ownership allows the owner to stop others from copying their jewelry designs.
•
For company:lasts for 95 years from the date the work was published or 120 years from the date the work was created
• • •
trademarks will generally be the brand names Project based design - Secured design patents Distribution to global market - negotiation of agreements with partners (Manufacturer abroad and foreign partners who cooperate with packaging or distribution)
MACRO SUPPLIER
Current Sourcing Method •
Direct sourcing
•
Company that owns unique manufacturing technologies or processes （personalized/ project based design）
HTS Codes o For Undefined: Section 14, Chapter 7, Article III, Heading 7113, o 7113.11.10
Raw material - silver
Silver investment value increase The estimated average silver price in 2019 was $16.20 per troy ounce, 3% higher than the average price in 2018. The price began the year at $15.46 per troy ounce, then decreased to a low of $14.37 per troy ounce on May 28. The price increased to a high of $19.40 per troy ounce on September 4 before trending downward through November.
Worldwide Map
925 sterling silverďźŒ
Events, Trends, and Issues: The estimated average silver price in 2019 was $16.20 per troy ounce, 3% higher than the average price in 2018. The price began the year at $15.46 per troy ounce, then decreased to a low of $14.37 per troy ounce on May 28. The price increased to a high of $19.40 per troy ounce on September 4 before trending downward through November.
925 Silver: The Other 7.5%
Silver Production by Country (Metric tons) ("Silver Production by Country (Metric tons)", 2020)
The remaining metal content is usually a blend of mixed metals that primarily include nickel and copper. These metals are added to the silver to strengthen the structural integrity of a piece, because pure silver is a soft metal and not considered strong.
Mexico
China Peru
Sourcing map
Mexico China Italian
Worldwide Map
Raw Material - Country Comparison
CHINA
Political
MEXICO
ITALY
•Ease of Doing Business 77.9.(ranks 39) •U.S.China trade frictions could have significant •. Ease of Doing Business 72.4.(ranks 60) Ease of Doing Business 72.9.(ranks 58) • The new United States-Mexico-Canada Agreement negative repercussions. • (USMCA) •Asia-Pacific Economic Cooperation, APEC (Doing Business database).
•Economic freedom score 62.2（80/184） •Italy is the world’s 8th largest economy •imported from US $80.9 billion (4.6% of total
United States annually minimal wage $15080
•Economic freedom score 58.4 （100/184） •NO.1 manufacturing output •Economic freedom score 64.7（66/184） •20% global manufacturing •imported from US $256.4 billion (15.6% of total US exports) •imported from US $106.6 billion (6.5% of total US exports) •Exported silver : $1.8 billion (9.9%of globally exported silver ) •Exported silver : $1.2 billion (7%of globally
Social
•Annual minimal wage：$2030 •Annual minimal wage：$2369 •urban population: 61.4% of total population •$urban population: 80.7% of total population
•Annual minimal wage：$ 17952 •urban population: 71% of total population
Economical
Technological
exported silver )
(2020)
•internet users: : 53.2% (July 2016 est. •NO.1 E-commerce Market$1.001 trillion •Merchant marine: 5594/ranks 3
(2020)
•internet users: : 59.5% (July 2016 est. •Merchant marine: 637/ ranks 35
US exports) •Exported silver :$239.3 million (1.3%of globally exported silver )
(2020)
•internet users: 61.3% (July 2016 est.) •Merchant marine: 1353/ ranks 21 •
Conclusion
China is a good place for manufacturing
• • •
20% of global manufacturing Annual minimal wage：$2030 Marine merchants: 5594/ ranks 3 - delivery guaranteed
Mexico is a good place for souring silver
• •
imported from US: $256.4 billion (15.6% of total US exports) Exported silver: $1.8 billion (9.9%of globally exported silver )
Italy is a good place for sourcing
•
While it uses the same 925 standard, since the 1800s, Italian sterling silver has always been synonymous with high-quality craftsmanship all around the world. ("Identifying, Buying, and Owning Genuine 925 Italy Silver| Cottonable", 2020)
MICRO SUPPLIERS
•
Based in Arezzo, Italy
•
Rich and varied product range extends from classic silver chains to the most fashionable and contemporary jewelry
•
Products are characterized by elegance, high craftsmanship and attention to detail.
•
Coar combines the great tradition of goldsmithery in Arezzo, Italy with the very latest in technological innovations.
•
Our silver products are synonymous with quality and reliability
•
Appreciated and recognized internationally for the distinctive qualities of lightness, beauty, and variety that have always inspired us and shall continue to do so.
• • • •
manufacturer and online
• • •
jewellery.
Expanding online sales business, Its know-how and the worldwide reputation of French and Italian quality Following the trends and requirements of its customers. Attractive prices On the commercial website, dedicated to professionals, you will find a range of over 2000 listings of silver findings, chains, beads and jewelry collections for
wholesaler of sterling silver findings and
Manufacturing sites in Italy and the main office of Europe in Marseilles, France
internationally.
founded in 2009
G-Silver.com is a
International
women, men, and children.
• •
Carefully selected supplier network G-Silver customer service ensures effective support, helping you to make the most of personalized customer advantages and discounts, according to the volume of your purchase. Our speedy delivery service is guaranteed to deliver within 24 to 48 hours.
•
Upholds extremely high standards for quality, integrity, and affordability.
•
A wide range of stylish Italian-made, high quality selections.
•
Success is based on exceptional long-term relationships with customers, and they
Based in LA, US
aim to exceed expectations with premium products, low cost shipping, and unmatched customer service.
SILVER ITALIAN CHAINS a leading wholesale
•
manufacturer
Stock inventory in large quantities and are able to meet needs for large wholesale orders.
（dedicated to providing the highest quality Italian made products at wholesale prices.
•
Carry hundreds of styles and millimeter gauge variations. Add new chains to collection regularly to ensure being always on top of the latest trends in the jewelry industry.
•
Taobao Agent: they are a shop-and-ship servicing company for Tabao (use search keyword “TaobaoAge” in Google).
•
purchases within the 180 period can be shipped at once.
concentrated transportation B2C
Concentrated transportation, a free 180-day storage period, all
•
1000+ suppliers with low prices and solid manufacturing capability
location
Arezzo, Italian
Arezzo, Italian Global online wholesale
Los Angeles Global online wholesale
quality
AAAAA (50+ years)
AAAAA
AAAA
type of product
20+kind of chain with various size In gold and silver
Global online platform link to suppliers in China
AAA( company depended/field visit
Novelties, clearance, silver findings, Novelties, clearance, silver findings, All kind of suppliers (Chain, semi-finished jewellery, accessories, Chain, semi-finished jewellery, accessories, Chain, semi-finished products, raw material ) products products
prices & cost
$18-350+, average $35
$13-350+, average $28
$4-150+, average $30
$ 0.2-$50+, average $8
delivery
Free updated to premium delivery over purchase $500
Guarantee 24/48 hours to delivery， minimum order requirement is $100.
Same day shopping /UPS shipping$12.00/Expedited Shipping International Shipping $50.00+
24 hours to delivery/ connection anytime
material available
Product in Gold/ silver
Product in Gold/ silver/ diamond
Product in Gold/ silver/ diamond
All range，gold-plating, silver-plating
capability
Distribution 60+ countries
25+ country global orders
Downtown warehouse in LA
low minimal wage，high efficiency
flexibility
Personalized available
Personalized available
10000+ styles available/Wholesale Only. Must have a Business License
Personalized available
customer service
Our sales agents travel worldwide and most of personalised customer accept returns for merchandise within 30 visit customers in their company advantages and discounts, according to days directly the volume of your purchases.
value-added services forward thinking strategic
Private on price/negotiation space suitable for current position
Saving transportation fee Private on price/negotiation space DISCOUNT $1500+ 2% off //$3000+ 5%off //$5000+ 10% off suitable for extended in material and scale suitable for cost saving and more Gold frequently order
Customer service is being supervised by Tao Bao concentrated transportation /B2C Close to Asia market suitable for further distribution in ASIA PACIFIC
PRODUCTION DEVELOPMENT
Time & Action Calendar
PRODUCT LINE
TECH PACK
INVENTORY MANAGEMENT
Production Planning
Production Costs ● Product Life Cycle- 1 year ● Production Costs: Wages & Benefits; Supplies & Raw Materials
Short Term ● Production in US
Long Term
•
● Source from Italy ● Success of new launch ● Producing cost effectively
•
Carrying Costs
International warehouses for better & faster delivery times for Korean customers
● Warehouse storage
Source domestically for cost efficiency
● Taxes ● Insurance
Forecast
Estimated Net Sales- $1.1 million Cycle Inventory- ordering 900 units/month Industry Turnover Average: 1.52 Undefined Industry Turnover: 1.3 Forecasting 2% Growth in usage of silver metal in jewelry Forecasting 3% Growth in earrings
Inventory Management & Stock Sync
Inventory Management •
Cycle Inventory: ordering 900 units a month
•
Using Stock Sync on Shopify to manage inventory
•
Goal: Achieve Just In Time inventory technique
Stock Sync •
Connects inventory with supplier, warehouse, & POS with all file formats
•
Automatically update inventory daily on POS Data
•
Monthly inventory counts on raw materials between suppliers
•
Monthly inventory counts on semi-finished and finished products in the warehouse
•
Set quantity rules to prevent overselling (no less than 10 qty)- start waitlist for items that sell quickly
QUALITY ASSURANCE & QUALITY CONTROL
Quality Assurance Quality Assurance All Product Criteria All silver must be sterling at .925 with Rhodium plating All gold metal must be 14K gold Anti-tarnish tabs for sterling silver pieces All items will have proper stampings- fineness, trademark, and COO Products must comply with the Federal Trade Commission regulations & pass Prop 65 testing Ear Cuff Product Criteria Settings must not contain sharp edges Ear Cuff needs to be a snug fit on the ear & lightweight Measurements of Ear Cuff: 11mm diameter, 7.92mm open cuff Thickness of Ear Cuff: 6.0mm *see more details in appendix
Quality Assurance Inspection Checklist Verify the product is the correct model or style Verify the product matches the submitted sample exactly (color, size, weight, etc.) Verify the product is stamped correctly and legibly or tagged, if appropriate, with your trademark, fineness stamp and Country of Origin. Verify the product is the correct size. Verify the product is clean, free of scratches Verify that anti-tarnish “poly tabs� are included with all silver products Verify all advertised warranties and romance cards are included with each product QA Samples Must be identical to final product with the same proper metal and stampings Samples must be submitted with packaging, romance cards, warranty cards, care instructions, etc. Due 30 days before live on website Missing deadline and/or submitting poor quality product will result in cancellation of *see more details in appendix
product
Quality Control
Post-Production Ear Cuff Inspection
•
Inspection done in house with QA team
Quality & Design meet brand’s and customers’ expectations
•
Testing of metal
Correction of any issues
•
Quality of material
Easy to maneuver around ear
•
Shape and fit of ear cuff
Aim for consistent finish throughout production *see more details in appendix
LOGISTICS PROCESS FLOW
Planning
Sourcing
Trading
Production
Cutting and polishing
Sales
Jewellery Manufacturing
Maketing …
raw material CURRENT
•
STATUS
• •
FURTHER DEVELOPMENT PLAN ROUGH DRAFT
Mainly Sterling Silver 925 sourced in the USA. Franco chain from Italy. Gold for special requirement
Cheap material export countries Frequent shipping & transportation capability Price negotiation environment aspects/ concern
Omni-Channel Supports local businesses Functioning on an internationalScale by collaborating with artists globally. All the collections are project based and each designer focuses on a single piece the emphasis artistry of the work.
in-house capabilitiescost saving
online selected shop based in New York
strict with e-commerial channelAtlanta as a Distribution Center
• • • LONG TERM & SHORT TERM STRATEGY
Packaging inclusive LGBT group Shipments-strong logistic and posts
corps in Hong Kong—-Asia pacific market
Current Logistics Process Flow Domestic
Customer Italian Chain Coar Distribuzione Internazionale SpA
Forward
Logistics
Undefined
Jewelry
Headquarter New York In-house manufactory Warehouse Distribution center
NYC retail
Stores
Return
process
Recycle
Re-
Manufacture Undefined
Jewelry
Headquarter
Re-sell
Repair
Reverse
Logistics
WARE HOUSE & LOGISTICS TRANSPORTATION
Current Logistics & Warehouse
Italian Chain Coar Distribuzione Internazionale SpA
Est. Net Sales- $1.1 million Cycle Inventory- ordering 900 units/month
•
One of the most important steps to ensure the delivery of products on time is — the logistics and warehousing.
•
Currently manufacturing in-house in NYC., only 1 stop sourcing from Italy
•
With a quantity of 900 units of jewelry, warehousing could be maintain in-house.
•
Centralized location: facilities located close to the studio are preferable. The company manufactures and performs quality control in-house, Centralizing the warehousing and distribution will enhance brand quality due to supervision by the designer.
Undefined
Jewelry
Headquarter
New York In-house manufactory Warehouse Distribution center
Domestic
Customer
NYC retail
Stores
Transportation
START:
From Arezzo, truck freight to Port of Livorno
Livorno Port Authority
Palazzo Rosciano 6
ORIGIN: Coar Distribuzione Internazionale SpA
Livorno, LI 57123, Italy
Sea freight to Port of Savannah
Truck freight to New York, NY
Strada E, 32 - S. Zeno
52040 Arezzo – Italy
TOTAL TIME:
Route 1 - Arezzo to Livorno: approximately 2 hours driving time
FINAL DESTINATION: Undefined Jewelry
224 Mulberry Street
Route 2 - Livorno to Savannah: 20 days transit time
Route 3 - Savannah to New York: approximately 12 hours driving time
Total Time: quoted 29 days in transit
New York, NY 10012 TOTAL COST:
$943.71
Delivery Company delivery company comparison
Comparison
DHL • •
DHL is an American-founded company, headquartered in Bonn, Germany.
• •
DHL operates a gamut of services to cater to the shipping needs of its customers.
Today, Deutsche Post DHL is known to be the world’s largest logistics company. Its international game is by far the strongest among the three. It delivers over 1.3 billion parcels per year. Not all of DHL’s domestic and international services are available at every location. The carrier provides refunds for service failures on its part.
FedEx •
An American multinational corporation founded in 1971, FedEx is headquartered in Memphis, Tennessee.
•
This shipping carrier holds the distinction of having the most planes on its fleet: 670, well ahead of UPS and DHL.
•
In its early days, FedEx was the pioneer that introduced an overnight shipping service as well as a system capable of tracking packages and providing real-time location updates. Today, it operates services in over 220 countries and territories.
• •
Within the US, it’s possible to pick up, drop off, or ship at more than 50,000 FedEx locations. Like DHL, FedEx has a claims process to apply for refunds for service failures on its part.
UPS • •
It uses 123,000 vehicles in its delivery fleet out of which more than 10,000 use alternative fuels.
•
Today, UPS has a presence in 220 countries and territories. It delivered over 5.2 billion parcels in 2018, an average of 21 million per day.
•
UPS operates over 2,500 facilities worldwide and maintains over 28,000 access point locations.
This is the largest fleet of alternative-powered vehicles in the world.UPS, the oldest of the three majors and the reigning private behemoth in the US was founded in 1907.
• FedEx is strong with overnight shipping and expedited 2- and 3day deliveries. • UPS has strong ground shipment services • DHL has the broadest global presence among the three and is the most vocal about its environmental commitments. • Priority or expedited services come at a price. • The slower service types work out to be more economical • LateShipment.com’s delivery delay report compared the punctuality of DHL, FedEx and UPS deliveries between July and December 2018. Both FedEx and UPS carriers under，
performed on their claims.
jewelry
Based on the Delivery companies comparison, We choose DHL, because of the quality and international scale. In addition, the company shows environmental priorities. (James, 2020)
SHIPPING LABEL
FURTHER DEVELOPMENT RECOMMENDATION
Further Development Recommendation
Italian Chain
CURRENT STATUS
Coar Distribuzione Internazionale SpA
Undefined
Jewelry
Headquarter
New York In-house manufactory Warehouse Distribution center
Domestic
Customer
ordering 900 units/month - easy to store 10800 units/year
NYC retail
Stores
small products
Further Development at Breakthrough Point Italian
NYC retail
Stores
Chain
FURTHER
Coar Distribuzione Internazionale SpA
Undefined
Jewelry
Headquarter
DEVELOPMENT PLAN China
New York In-house manufactory Warehouse (overwhelm)
3PL
company
Domestic
Customer
Atlanta
distribution
center
Stay in local jewelry industry for 3 years before considering more retail stores or DC Take advantage of B2C technology Set goals based on monthly unit production and sales to determine future direction Evaluate the capability of in-house supply chain to be responsive and timely
International
Customer
Asia Pacific
Distribution Plan - countries comparison
HONG KONG
SOUTH KOREAN
JAPAN •Japan maintains a very close relationship with the United
Political
Economical
Social
•Hong Kong is an excellent channel to tap into the China
•The political system in South Korea has seen many transitions
market. About 40% of China's foreign trade goes through Hong Kong. ("Exporting To Hong Kong" 2019) •Hong Kong is a free port. There is no customs tariff on goods imported into Hong Kong. ("Exporting To Hong Kong" 2019) •"one country, two systems" formula recently facing challenge； •protest and virus in 2019 and 2020 •U.S.China trade frictions could have significant negative repercussions.
varying from dictatorship to pro- democratic forms of governments. •South Korea is an important member of global bodies such as UN, WTO, OECD and blocs such G-20, ASEAN plus three etc. •South Korea enjoys good diplomatic and trade relations with major countries, one of the reason being the export driven form of economy South Korea has. •However relations with North Korea are almost always hostile •The country is going through political rebuilding phase
manufactory：1.03%；industry：7.21%； service：91.69%: agriculture:0.07%
manufactory：27.23%；industry：35.12%； service：53.56%: agriculture:1.98%
manufactory：20.73%；industry：29.14%； service：69.12%: agriculture:1.19%
Urban Population 100 % of total (2018) 25-54 years：43.96%
Urban Population 81.5 % of total (2018) 25-54 years female：45.13%
Urban Population 91.5 % of total (2018) 25-54 years female：37.28%
Internet users:
Internet users:
total: 44.153 million percent of population:89.9% (July 2016 est.) country comparison to the world: 16
total: 116.565 million percent of population: 92% (July 2016 est.) country comparison to the world: 5
Internet users:
Technological
States. •Japan has a well-established and transparent tax system but its corporate taxes are moderately high compared to other East Asian countries.Japan raised its consumption tax this year, which is not good news for expanding the Japanese market.(Honda 2019) • Policies regarding foreign investments are loose and there are no formal restrictions. •However, due to the influence of exclusive policies and commercial networks, overseas companies are unfavorable in the competition in Japan. The high overall costs and natural disasters also directly impact overseas investment.
total: 6.066 million percent of population: 85% (July 2016 est.) country comparison to the world: 67
Sourcing Map and Long-Term Distribution Planning
Mexico China
Italy
3PL
company
Distribution central specifically in Atlanta: LGBTQIA+ inclusive International Small quantities available Last mile
Japan South Korean HongKong
A 3PL can help optimize delivery from a distribution hub to individual locations. Rather than delivering half a dozen items in many shipments, the 3PL can develop the visibility to consolidate deliveries to reduce costs significantly. 3PLs can manage expedited shipments to fulfill just-in-time delivery for high-value items. Greater visibility into inventories and reverse logistics improves ease of auditing, reducing the need for physical auditing.
REVERSE LOGISTICS
E-Commerce Product Return Statistics and Trends Return statistics & Truth of return policy in general
Specific solution of returning
• • • • • • •
(Saleh, 2020)
(Saleh, 2020)
Free return shipping- 49% of retailers offer Hassle free- No questions asked return policy Easy- to-print return label Over 1,000 shoppers would like to guarantee free returns Return policies can no longer be an afterthought and must be strategized as a customer demand
• • • •
Strong Quality Assurance & Quality Control Having the Real Picture of Jewelry in Detail Double Check With the Order and Inventory Always Listen to the Feedback of Customer and Build Up Long Term Loyalty.
Expected return rate
• •
Industry in-store return rate: 5% to 10% Online purchases return rate: 15% to 40%, average 20% (Reagan, 2020)
• •
Undefined Jewelry in-store return rate: 5% to 6.5%, or $_________ Undefined Jewelry Online purchases return rate: 15% to 25%, or $_________
return solutions
•
Strong quality assurance & quality control seamless communication among all departments
•
Share high-quality images on E-Commerce product pages with hands-on customer images for clarity
•
Ensure accuracy of order line item fulfillment and inventory levels
•
Consistently analyze returns to build customer loyalty and promote future purchases
• •
Provide polishing cloths with each purchase and in-store care Showcase the production of the jewelry in videos on social media to make each item feel more special
•
Customers can also receive an extra $2-$5 rewards if they share and like our hashtag, #UndefinedJewelry, on our official Instagram
Return policy
• Returns & Exchanges
Preparing Your Return By Mail To return a shipped item to undefined jewelry, please follow these steps:
If you're not happy with your purchase, we want to make it right with free shipping return . You can return or exchange your item for up to 15 days after purchase. exchanges available in NYC
•
Accessories can be returned if they're unworn or unaltered, and must be accompanied by the original packaging, instructions and warranty information to a undefined store or undefined.come.
•
We cannot accept returns or exchanges on custom designs or any personalized merchandise. With our membership and total purchase of over $800, we provide redesign or customs for a simple $100 fee.
•
•
•
•
•
•
• •
Indicate the reason for your return in the Return Reason column on the packing slip next to the item you're returning. Include the packing slip and all original documents in the package. Put the pre-printed return label on the center of the box, and the pre-printed return address label on the top left corner of the box. Ship your package insured for the full purchase price. Your packing slip MUST accompany the return. All returns will be inspected by our Quality Assurance team before we can process a refund. We'll credit your original payment method, excluding delivery charges, within two weeks of receiving your return.
Recycling Activities
Reverse
Logistics
Re-
Manufacture
Recycle
Re-sell
Repair
Re-design
Personalized product
•
With additional processing charges
Undefined
Jewelry
Headquarter
PERFORMANCE MANAGEMENT
SCOR Model
APPENDIX
HONG KONG
SOUTH KOREAN
JAPAN
•Hong Kong is an excellent channel to tap into the China market. About 40% of China's foreign trade goes through Hong Kong. ("Exporting To Hong Kong" 2019)
•Hong Kong is a free port. There is no
customs tariff on goods imported into Hong Kong. ("Exporting To Hong Kong" 2019)
•"one country, two systems" formula recently facing challenge；
•protest and virus •U.S.China trade frictions could have significant negative repercussions. •Highly attractive tax regime •low personal and corporate tax rates •no capital gains tax, •no value added tax or sales tax •no withholding tax on dividends and
•The political system in South Korea has seen
many transitions varying from dictatorship to pro- democratic forms of governments.
•South Korea is an important member of
global bodies such as UN, WTO, OECD and blocs such G-20, ASEAN plus three etc.
•South Korea enjoys good diplomatic and
trade relations with major countries, one of the reason being the export driven form of economy South Korea has.
•However relations with North Korea are
almost always hostile, frequent disagreements also occur with Japan, mostly because of their pre-independence atrocities.
•The country is going through political
rebuilding phase, a strong and transparent form of government is needed to regain the trust of international community on political front.
•Japan maintains a very close relationship
with the United States. This relationship is part and parcel of Japan’s foreign and security policy.
•Japan has a well-established and transparent tax system but its corporate taxes are moderately high compared to other East Asian countries,
• Policies regarding foreign investments are loose and there are no formal restrictions.
•However, due to the influence of exclusive
policies and commercial networks, overseas companies are unfavorable in the competition in Japan. The high overall costs and natural disasters also directly impact overseas investment.
•Japan raised its consumption tax this year, which is not good news for expanding the Japanese market. (Honda 2019)
interest or collection of social security benefits
(“Hong Kong Tax Rates And Income Tax System” 2019) "Exporting To Hong Kong". 2019. Hketolondon.Gov.Hk. https://www.hketolondon.gov.hk/invest/expo.htm. "Hong Kong Tax Rates And Income Tax System". 2019. Guidemehongkong.Com. https://www.guidemehongkong.com/business-guides/supporting-a-business/hong-kong-tax-rates-and-income-tax-system#Foreign-Exchange-Control. Honda, Etsuro. 2019. "The Consumption Tax Raise Hurts Japan And Eviscerates Abenomics | The Japan Times". The Japan Times. https://www.japantimes.co.jp/news/2019/09/25/business/economy-business/consumption-tax-raise-hurts-japan-eviscerates-abenomics/#.Xa8xPC277OQ.
HONG KONG
SOUTH KOREAN
27.23%
1.03%
20.73%
91.69%
1.19%
1.98%
20.00%
40.00%
60.00%
80.00%
100.00%
Textiles; Clothing; Tourism; Banking
("Hong Kong: Economy" 2019)
69.12%
53.56%
0.07%
Top Industries
29.14%
35.12%
7.21%
0.00%
JAPAN
0.00%
10.00% 20.00% 30.00% 40.00% 50.00% 60.00%
Top Industries
Electronics; Telecommunications; Automobile Production; Chemicals South Korean: Economy" 2019)
0.00%
Top Industries
20.00%
40.00%
60.00%
80.00%
Motor Vehicles; Electronic Equipment; Machine Tools; Steel and Nonferrous Metals
Hong Kong's GDP growth rate is higher than south Korean. and it isThree times higher than the growth rate of Japan.
HONG KONG
SOUTH KOREAN
JAPAN
HONG KONG
SOUTH KOREAN
JAPAN
Internet users:
Internet users:
Internet users:
total: 6.066 million percent of population: 85% (July 2016 est.) country comparison to the world: 67
total: 44.153 million percent of population:89.9% (July 2016 est.) country comparison to the world: 16
total: 116.565 million percent of population: 92% (July 2016 est.) country comparison to the world: 5
HONG KONG
Population Urban Population
7,391,700（2018） 100 % of total (2018)
25-54 years: 43.96% (male 1,354,676 /female 1,816,303)
25-54 years：43.96%
JAPAN
SOUTH KOREAN
Population Urban Population
51,466,201 (2018) 81.5 % of total (2018)
25-54 years: 45.13% (male 11,986,760 /female 11,220,268)
25-54 years female：45.13%
Population Urban Population
126,785,797(2018) 91.5 % of total (2018)
25-54 years: 37.28% (male 23,246,562 /female 23,784,273)
25-54 years female：37.28%
Handmade Ring Process
Handmade Chain Process
Reference • • • • • • • • • • • • • •
James, J. (2020). Shipping Carriers Compared: DHL Vs. FedEx Vs. UPS in 2020 - Lateshipment.com Blog. Retrieved 27 February 2020, from https://www.lateshipment.com/blog/overview-of-fedex-ups-and-dhl/ Fenton, S. (2020). Here's How To Reduce Returns In 8 Steps | Vendtian. Retrieved 27 February 2020, from https://www.venditan.com/blog/ 2019/03/08/tips-to-reduce-customer-returns/ (2020). Retrieved 27 February 2020, from https://www.tiffany.com/gifts/product-care-items/tiffany-silver-care-kit-63364924/ ("73 Percent of Millennials are Willing to Spend More Money on This 1 Type of Product", 2020)a Reagan, C. (2020). That sweater you don't like is a trillion-dollar problem for retailers. These companies want to fix it. Retrieved 27 February 2020, from https://www.cnbc.com/2019/01/10/growing-online-sales-means-more-returns-and-trash-for-landfills.html Saleh, K. (2020). E-commerce Product Return Rate – Statistics and Trends [Infographic]. Retrieved 27 February 2020, from https:// www.invespcro.com/blog/ecommerce-product-return-rate-statistics/ Savannah College of Art and Design. (2020). Retrieved 26 February 2020, from https://0-www-wgsn-com.library.scad.edu/content/board_viewer/#/ Identifying, Buying, and Owning Genuine 925 Italy Silver| Cottonable. (2020). Retrieved 13 February 2020, from https://www.cottonable.com/ fashion/925-italy-silver/ Silver Production by Country (Metric tons). (2020). Retrieved 10 February 2020, from https://www.indexmundi.com/ minerals/?product=silver&graph=production The Crown Jewels: How to Protect Your Jewelry Designs | Lexology. (2020). Retrieved 13 February 2020, from https://www.lexology.com/library/ detail.aspx?g=d0d434c2-592a-49c6-ab9b-0e736c49fcab Mexico Labor Facts & Stats. (2020). Retrieved 13 February 2020, from https://www.nationmaster.com/country-info/profiles/Mexico/Labor China Labor Facts & Stats. (2020). Retrieved 13 February 2020, from https://www.nationmaster.com/country-info/profiles/China/Labor Italy Labor Facts & Stats. (2020). Retrieved 13 February 2020, from
Reference • • • • • • • • • • • • • • • •
About Undfined. (2020). Retrieved 21 January 2020, from https://www.undefinedjewelry.com/pages/about-us Aurate New York | Set The Standard. (2020). Retrieved 21 January 2020, from https://auratenewyork.com Aurate's Sophie Kahn on making DTC jewelry that measures up to Fifth Avenue's luxury options – Glossy. (2020). Retrieved 21 January 2020, from https:// www.glossy.co/podcasts/aurate-sophie-kahn-dtc-fine-jewelry Council Post: Understanding The Research On Millennial Shopping Behaviors. (2020). Retrieved 21 January 2020, from https://www.forbes.com/sites/ forbesagencycouncil/2018/06/04/understanding-the-research-on-millennial-shopping-behaviors/#1831c1a05f7a Kolding, K. (2020). Market Focus: Reaching U.S. Jewelry Buyers. Retrieved 21 January 2020, from:https://www.targetmarketingmag.com/article/market-focus-reachi u-s-jewelry-buyers/ Savannah College of Art and Design. (2020). Retrieved 21 January 2020, from https://0-www-portal-euromonitor-com.library.scad.edu/portal/magazine/homemain Yahoo is now part of Verizon Media. (2020). Retrieved 21 January 2020, from https://finance.yahoo.com/news/much-middle-class-families-earn-100000915.html Kenton, W. (2018). Money Habits of the Millennials. Retrieved from https://www.investopedia.com/articles/personal-finance/021914/money-habits-millennials.asp "How To Keep Your Next Luxury Event Truly Exclusive: Meetings & Conventions Asia". 2019. Meetings-Conventions-Asia.Com. http://meetings-conventions-asia.co News/Hotels/How-to-keep-your-next-luxury-event-truly-exclusive/. 2019. Globalwellnessinstitute.Org. https://globalwellnessinstitute.org/wp-content/uploads/2018/11/GWI_GlobalWellnessTourismEconomyReport.pdf. "Country Rankings: World & Global Economy Rankings On Economic Freedom". 2019. Heritage.Org. https://www.heritage.org/index/ranking. 2019. Worldpopulationreview.Com. http://worldpopulationreview.com/countries/china-population/cities/ "Doing Business 2019". 2019. Doingbusiness.Org. https://www.doingbusiness.org/content/dam/doingBusiness/media/Annual-Reports/English/DB2019-report_webversion.pdf. "Doing Business 2020”. 2020. Doingbusiness.Org. https://www.doingbusiness.org/content/dam/doingBusiness/media/Annual-Reports/English/DB2020-report_webversion.pdf. https://www.nationmaster.com/country-info/profiles/Italy/Labor 2019. Www2.Deloitte.Com. https://www2.deloitte.com/content/dam/Deloitte/global/Documents/Consumer-Business/cons-global-powers-retailing-2019.pdf.
Thank You