ASHLEY HIMPEL GILLIAN WARE EMILY ECKARD LAUREN WERTH PROFESSOR DONALD LEVY GLOBAL SOURCING FASM 420
CONTENTS WHO WE ARE.................................................................. MISSION & VISION......................................................... VALUES.............................................................................. CODE OF CONDUCT..................................................... HUMAN RIGHTS POLICY............................................. INTERNAL & EXTERNAL FACTORS.......................... MARKET ANALYSIS....................................................... CUSTOMER PROFILES.................................................. COMPETITOR ANALYSIS............................................. STORE LOCATION & LOGISTICS............................... INSPIRATION................................................................... PRODUCTS/STYLE/PRICING...................................... WHY PINATEXT?............................................................ SUSTAINABILITY & ANIMAL WELFARE................. COUNTRY ANALYSIS.................................................... COUNTRY RANKING.................................................... SUPPLIER ANALYSIS...................................................... SUPPLIER RANKING...................................................... LINE PLAN........................................................................ UNIT BREAKDOWN...................................................... STRATEGY PUBLICATION/CONCLUSION..............
WHO WE ARE Poppy & Iris is a modern chic accessories brand with a bohemian twist, that offers a variety of handbags in different fabrics and colors, reaching an audience of women 25-40 years old. Poppy & Iris only uses raw materials to aspire and create fashionable pieces that aren’t harming to animals and the environment. Our pineapple fibers is sustainably produced for use as an alternative to both mass produced leather and polluting synthetic materials, offering a better choice for our earth. Our brand aims to inspire other fashion conscious companies that value animal rights and sustainability. According to recent studies, there are certain drivers that push the handbag market. The usage of handbags is predominant with the rise in the woman workforce over the years has boosted growth. Recently, the handbag market has had a growing auence in the emerging economies and awareness of better brands. Since we are targeting women ages from 25-40, our customers are able to afford our higher price point and appreciate our brand ethics. Our clients want strong, durable statement pieces that will last a lifetime, so our goal is to give them just that.
MISSION Our mission is to ensure every woman can feel unique and on trend without feeling guilty.
VISION The vision of Poppy & Iris is to inspire other fashion brands to use raw materials and be cruelty free in their design making process.
VALUES Poppy & Iris believes in bags that are strong personal pieces in a persons wardrobe and are cruelty free. Cruelty free is a very important aspect to our company because it is wrong to use innocent animals for human pleasure. Our brand also values the environment and does not participate in the use of harsh chemicals and toxins in our manufacturing process.
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Cruelty free and sustainable products. No animals are used in the process of producing our handbags.
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Reducing wasteful practices and being ethically and socially responsible.
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On trend, statement pieces that will last a lifetime and always in season. At Poppy & Iris want our women to feel confident and chic when wearing our accessories.
CODE OF CONDUCT
I. FORCED LABOR: There shall not be any use of forced labor. II. CHILD LABOR: No person shall be employed under the age of 16 working in any manufacturing companies. III. HARASSMENT ABUSE & VIOLENCE: Vendors will provide a work environment free of harassment or abuse that is beneficial to employee productivity and safety. Vendors must not engage in or tolerate sexual harassment, indecent or threatening gestures, abusive tone or undesired physical contact. If a situation comes to our attention regarding abuse, there will be direct action taken immediately to prevent further abuse or harassment. IV. NON-DISCRIMINATION: Vendors will be employed on the basis of their ability to do the job, without regard or discrimination to their gender, age, race, sex, religion, marital status, nationality, pregnancy, trade union or political affiliation. V. HEALTH & SAFETY: Vendors must provide proper health and safety information and ensure the working environment is up to code in order to prevent any accidents and injuries. The vendors must take a proactive approach to health and safety by offering training, policies, and procedures designed to protect worker health. VI. CRUELTY FREE & SUSTAINABLE PRACTICES: There shall not be any animals harmed in the making of our handbags and vendors must comply with our standards regarding this issue. Vendors are required to be practicing sustainability in the production making process. This includes recycling, being energy efficient, reducing the amount of water being used, and making reusable products for example. VII. WAGES & BENEFITS: Vendors shall recognize that wages are essential to meeting employee’s basic needs. They must pay employees at least the minimum wage required by local law and employers shall provide mandated benefits as directed by the laws of the country. All employees will be able to make a fair living wage with benefits.
VIII. HOURS OF WORK: Employees shall not be required to work more than the lesser of 60 hours per week or the limits on regular and overtime hours allowed by law of the country of manufacture. Employees shall also be entitled to at least one day of rest in every 7 day period. IX. WOMEN’S, DISABLED, ETHNIC MINORITIES & U.S. VETERANS RIGHTS: All vendors will ensure that workers who are women, disabled, or an ethnic minority receive equal treatment in all aspects of employment. All U.S employers will ensure that veterans receive equal treatment in all aspects of employment. X. ENVIRONMENTAL: Vendors must have current environmental licenses in place in order for them to achieve our environmental standards. They must comply with regulations and standards applicable to their industry and as high of a standard as possible for the country of industry. Factories shall continuously monitor their production process including those related to emissions, discharges and disposal of waste. XI. QUALITY: Factories must have a clearly documented quality system and quality improvement plan. That system must include in process and final finished goods audits and procedures that meet our company standards. These audits will be performed by a trained QA staff person provided by the factory who has the autonomy and support they need in order to provide an unbiased report on the quality of every shipment of finished goods. XII. COMPLIANCE WITH THE LAW: Suppliers and contractors must adhere strictly to all applicable laws and regulations in effect where the company does business.
HUMAN RIGHTS POLICY We are committed to ensuring every worker in our employment is treated with respect, fairness and dignity. In every community we operate in, our workers are paid fairly and with consideration to living wages. Poppy & Iris is guided by international human rights principles outlined in the Universal Declaration of Human Rights. This applies to all entities owned by Poppy & Iris, and those falling outside of the UN jurisdiction are held to the same human rights standards. We Enforce: • • • • •
Respect for human life Valuing diversity Community engagement Safe and Healthy workplace Workplace security
INTERNAL FACTORS
1. 2. 3.
Compliant with factory evaluations and surprise factory visits to audit the progress of the entire manufacturing process overall and to ensure everyone is being held accountable for their work. There will also be training programs which employees will sign off on so they know the health and safety regulations, as well as how to work in the particular factory. Compliant with the code of ethics. Employers and employees will complete a self evaluation that includes thorough details of factory conditions and sign our company’s Code of Conduct Agreement. This will ensure that our suppliers and employees know our high standards and can be educated on our ethics and conduct code.
Vendor Score Card: This is an essential component when building relationships with suppliers. This is a tool that we will use to measure the performance and effectiveness of vendors and suppliers that provide goods and services to our business. (See page 15 for more details)
EXTERNAL FACTORS Fair Trade is a contribution to the fight against poverty, climate change and global economic crises. The World Fair Trade Organization believes that trade must benefit the most vulnerable and deliver sustainable livelihoods by developing opportunities especially for small and disadvantaged producers. The WFTO facilitates membership applications, ensure members follow the 10 Principles of Fair Trade through the Guarantee System, and improve the Fair Trade Standard. The WFTO Fair Trade Standard is continuously monitored and improved by the Standard and Guarantee System Committee. This process entails a high level of transparency and traceability in their global supply chains and each quarter every certified business must also pay fees.
WRAP is a non-profit organization dedicated to promoting safe, lawful, humane, and ethical manufacturing around the world through certification and education. The WRAP certification program mainly focuses on the apparel, footwear and sewn products sectors. These certifications can only be granted to individual production units. Holding companies, brands, and retailers are not eligible to apply. Attaining a WRAP certification involves a 5-step process and begins with the production facility filing an initial application with WRAP, and paying the registration fee. Then the facility will conduct a self-assessment of its compliance with WRAP’s 12 principles, which is followed by an additional audit conducted by one of their accredited monitoring partners. The report from that audit is sent to WRAP, where they decided whether or not to issue a certification. Poppy & Iris also want to support local marginalized farmers and give workers more control over their lives on a daily basis. The WFTO and WRAP enables good working conditions and gives workers a chance to thrive in their job.
Standards & Policies AMBITIONS & GOALS
CODE OF ETHICS
To remove all wrong doings of our Code Have every member working within the company of Ethics trained and sign our Code of Ethics.
Limited incidents and everyone has signed Code of Ethics.
SUSTAINABILITY COMMITMENT
Working with 100% Vegan leather and making sure that every one of our producers follows our sustainability commitment to our brand and to our customers.
Working with 100% vegan leather.
HUMAN RIGHTS POLICY
To establish a section that our Ethics are being met. To make sure that everyone working . Worker are working on a within our company is treated fairly and living wage. Train overseas factory managers in human rights properly. standards
ANIMAL WELFARE AND MATERIAL ETHICS
To source our materials that are safe for Source from a company that is equally transparent our environment, animal free, and that all and does not use any animal byproduct. items are traceable and transparent.
There is no animals used in the production of our goods.
SECURITY POLICY
To achieve a safe working environment for everyone that works under the Poppy and Iris umbrella.
Completed unexpected store audits to make sure that everyone was in compliance.
CHEMICAL RESTRICTIONS
Restrict the use of chemical treated We have partnered with materials that are harmful and dangerous Use no extra land, water, fertilizers, or pesticides in Pinatex use little to no for our consumers, workers, and the making of the textile. pesticides. environment.
ACTIONS 2018
ACHIEVEMENTS & RESULTS 2018
TOPICS
Team up with Pinatex and incorporate their standards on limiting our carbon footprint.
Focus on safety in our factories and security for shoppers.
CUSTOMER PROFILE MILLENNIAL Name: Lauren Wilson Age: 28 Education: Bachelors Degree Income: Flexible income ($100k) Resides in: San Francisco Occupation: Style director at Harper’s Bazaar Values: Structure and durability over price and her vintage Chanel bag Hobbies: Hanging out with her close girl friends, shopping, hot yoga, blogging, writing Other brands she wears: Free People, Revolve and Anthropologie Wants: To travel the world, more brands to become sustainable/cruelty free
Lauren is constantly on the go, working on projects for Harper’s Bazaar and traveling to style clients. She values strong, durable pieces that will be staples in her wardrobe. Lauren also supports cruelty free brands that participate in sustainable practices. Her biggest investment pieces are bags and shoe because she knows she’ll always have them. With the hustle and bustle of living in California, and fashion constantly changing, Lauren appreciates more valuable and neutral pieces that will never go out of style.
CUSTOMER PROFILE GENERATION X Name: Jaclyn Pierce Age: 35 Education: Masters Degree at Boston University Income: Flexible income ($175) Resides in: Chicago Occupation: Marketing director for Urban Decay cosmetics Values: Family/friends, staple accessories and her work ethic Hobbies: Working out, getting dinner with friends and colleagues, reading, knitting and hiking Other brands she wears: Stella McCartney, Nordstrom and Anthropologie Wants: To make people happy, and travel to Egypt one day Loves: Sleeping in on her days o, her best friends, and chocolate Jaclyn loves statement pieces that still look classic and season-less. She has a few designer bags and is very fashion forward. She looks for innovative designs and style but also wants quality and function. Her personal style is dressy, girly, bohemian, and a bit modern. Jaclyn is goal oriented, self motivated and always up for a challenge whether it’s her professional or personal life.
COMPETITOR ANALYSIS
The 3 competitors Poppy & Iris mostly resonates with are Stella McCartney, Matt & Nat and Freedom of Animals. Our brand feels these competitors share the same values, morals and ethics as us when it comes social and environmental responsibility. They are all vegan handbag brands that practice sustainability and having a strongly followed Code of Conduct. We believe it is only right to treat our employees with the up-most respect, as well as animals living on our planet. By being vegan and sustainable, Poppy & Iris feels we are breaking the fast fashion cycle and providing exceptional value to our customers. Our competitors have similar price ranges to Poppy & Iris, with Stella McCartney being the most expensive, then Freedom of Animals next and Matt & Nat being the most affordable option.
STELLA McCARTNEY
Stella McCartney’s commitment to sustainability is evident throughout all her collections and is part of the brand’s ethos to being a responsible, honest and modern company. Their suppliers have spontaneous unannounced audit visits by the company to ensure the regulations are being met. The brand respects the planet as well as the people and animals on it, which is something Poppy & Iris resonate with. Stella McCartney is committed to becoming a zero deforestation company within the next few years and does not use of any real leather, skins, feathers or fur. All of their products are made from recycled materials and is almost 100% sustainable all together.
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MATT AND NAT
Matt and Nat is a vegan brand based out of Canada. They encourage up cycling, visits their factories they are in compliance with regularly, and uses lining made from 100% recycled plastic bottles. Matt and Nat just recently introduced recycled bicycle tires to their collection as well. Each season they continue to explore new innovative ways to remain sustainable and Eco-friendly. The company is very transparent about their manufacturing practices and socially responsible to the community. They build relationships with the suppliers and workers in order to create a greater workplace culture. Matt and Nat is constantly inspired by the textures and hues of nature, and to better protect it, they aim to better their ways.
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FREEDOM OF ANIMALS Poppy & Iris is inspired by Freedom of Animals because they connect consumers and companies that share a commitment to social and environmental responsibility. FOA is a vegan company and fair labor is mandatory. They are also a sustainable company, with everything handcrafted and made in the United States. “Trade Not Aid� is a charity that employs artisans and workers in developing countries in fair-practice settings, aiming to nurture a demand for their skills and empower their communities to thrive. They are 100% vegan and most of their accessories in this category are produced via Eco-friendly means using the most sustainable synthetic materials available. Their cross-body and totes ranges in price from $145 to $240, which is similar to ours but a bit less expensive than Poppy & Iris.
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STORE LOCATION & LOGISTICS Store Location: Nashville, Tennessee We chose Nashville to open our first store because it is a friendly, progressive and probusiness city. Nashville still has a small town feel with a lot of small business that are bringing their creativity and passion, creating a unique culture. Poppy & Iris believe Nashville is the perfect spot to launch our store which is in the hub of food, music, culture, and diversity. There is a lot of economic growth with businesses continuing to grow, and expand. Overall, cities in the South continue to grow at a faster rate than any other U.S region, according to a demographer in the Census Bureau’s population division. Poppy & Iris is a brick and mortar store located in Nashville. Our product will be made in the Philippines, and our hardware and lining will be imported from China and India. From there, we will utilize FedEx to transport the orders from the Philippines to our store location. Shipping rates will vary from state to state but our flat rate will be set at $8 USD.
INSPIRATION//STRUCTURE & COLOR
PRODUCT STYLES & PRICING PRODUCT DESCRIPTION: Piper Cross-body OneSize Cost: $85.80 Retail: $275
FABRICS/COLOR:
PRODUCT DESCRIPTION: Delilah Drawstring OneSize Cost: $108.62 Retail: $350.00 FABRICS/COLOR:
PRODUCT DESCRIPTION: Ainsley Tote OneSize Cost: $147.80 Retail: $475.00 FABRICS/COLOR:
PRODUCT DESCRIPTION: Willow Backpack Cost: $178.89 Retail: $575.00 FABRICS/COLOR:
PRODUCT DESCRIPTION: Eloise Clutch Cost: $62.17 Retail: $200.00 FABRICS/COLOR:
WHY PINATEX? Pinatex is a manufacturing company based in the Philippines. Their products are made from sustainable sourced natural fibers, using no harmful chemicals or animal products. The fiber used is made from pineapple leaves and can be easily cut, stitched and embroidered. It is a non-woven textile, developed for use as a low-impact alternative to leather and PVC/PU materials. The company currently has 6 different colors including charcoal, natural, brown, paprika, gold and silver. Pinatex will be adding extra colors in limited editions as they grow as a company. They have also passed ISO international textile testing standards including tear and tensile strength, flexing endurance, seam rupture, finish adhesion and color fastness. Their company values align with Poppy & Iris and appreciate the innovation and responsibility Pinatex embodies. They use no extra land, water, fertilizers or pesticides are required to produce these fibers. The process involves a patented pending technology that protects both the process and the finished material. This opportunity provides new additional income for farmers while creating a new industry for pineapple growing countries.
SUSTAINABILITY & ANIMAL WELFARE More than 50 million animals suffer cruel deaths each year to benefit the fashion industry. However, numerous brands are taking the step to become more sustainable and not use animal products. Smaller labels are ignoring the seasonal fashion cycle, and producing fewer garments per actual season. It’s important that avoiding fur and ensuring good standards are upheld during leather and wool production. Poppy & Iris thrives to be a leader in the fashion industry for sustainability and not to support the use of animals. By using renewable, biodegradable resources, our company strives to create products that require minimum amounts of land, water and waste to produce. We feel it is simply wrong to use live animals for human pleasure, which is why we choose to be animal and cruelty free.
THE LIFE CYCLE This chart is found on the Pinatex website that shows the process of how their materials are made and the company’s transparency about the entire process from start to finish.
COUNTRY ANALYSIS Poppy & Iris is looking to source from countries that will have a variation of factories that follow our Code of Conduct and share the same values. Our company also wants to source from a factory that has high sustainability and cruelty free standards. The three countries chosen were those that appeared to have the best options for vegan leather, lining and hardware. These countries selected were the Philippines, China and India. After choosing the source from these countries, we evaluated them through our Country Ranking system in order to understand where they stood in relation to other countries. Our company has decided to import our hardware from China, and our lining from India to the Philippines. The Philippines is where our pineapple leaf fibers are made and developed.
THINGS TO CONSIDER:
SUSTAINABLE
COST
LABOR LAWS
LOCATION
TRADE AGREEMENTS
TECHNOLOGY
MANUFACTURING
China is a nation in East Asia with Beijing being its capital. The were founded as a district and original nation in 1368. Their population is 1.32 billion people as of 2016.
CHINA China is a key player in deciding where to source our products from. They are the world’s largest exporter and they have the second largest amount of goods imported. They have continuously been a world leader in technology and innovations with electronics and machinery being their largest export category. Chinese producers have invested in machinery and technology that improves quality and is environmentally conscious, and began shifting towards the use of all Eco-friendly materials.
Trade between the United States and China has grown substantially since China began reforming its economy and liberalizing its trade in the late 1970’s. U.S and China trade rose from $2 billion in 1979 to $579 billion in 2016, making them the United States second largest merchandising partner its third-largest export market, and its biggest source of imports. In May 2017, the United States and China announced the “U.S.-China Trade Agreement which includes China market commitments on the U.S beef, biotechnology, products, credit rating services, electronic payment services.
China’s issues of sustainability are linked to the industrial processes that are supporting China’s economic development mode. The country does not see emissions as a problem that must be dealt with immediately. With millions of people remaining in poverty, economic growth is still the number one priority. China has a five year plan laid out and if they follow through on that, the country will see a 48% reduction in its ration of CO2 emissions to GDP by 2020, compared to 2005 levels. As part of its commitment to the Paris Agreementm by 2030, China has pledged to reduce this figure by 60-65%. Beijing has also begun to crack down on fossil fuel subsidies, especially with respect to gas taxes.
There are currently 907.5 million people in the labor force in China. THe unemployment rate is 4% with an industrial growth rate at 6%. There as been an influence in increasing cost of raw materials, labor, energy and power. The labor force is migrating to better jobs and their customers are moving to buy from lower cost countries. Their labor laws have been recently under reform, growing in union support and protection year after year. Poppy & Iris take labor laws and human rights into a considerable amount before partnering with them.
The country does not have a set minimum wage as a whole, but it is divided by region. The minimum wage just increased last year to 19.5 Chinese Yuan ($2.94 USD) per hour for part time workers. The highest minimum wage for full-time workers is 2,300 yuan or $333USD which is the highest minimum wage in teh country.
Manufacturing in China cost significantly less due to the high saturation of manufacturers and the huge-highly skilled labor force. Manufacturing growth is slowing more quickly than economic growth and research suggest that the country is already losing some new factory investments to lower cost locations such as Vietnman. The Chinese-owned and multinational manufacturers boost productivity, refine productdevelopment approaches and tame supply chain complexity. Thos who do so can create a competitive advantage.
PHILIPPINES Philippines has made significant development in the technology field. The country is using latest technology to grow their industry and agriculture. Various IT developments have been introduced so most people have their own cell phones and internet facilities. This technological support is now booming in terms of outsourcing. In addition, over five million mobile phone users also use their phones as virtual wallets, which leads among devloping The company we are partnering with for our handbags is located in the Philippines and has a positive and social impact with a low environmental impact. The USA is expected to remain the single-largest market for locally made apparel over the next few years. Apparel and accessories made from hemp, ramie and bamboo are also becoming popular among overseas buyers because they are perceived as sustainable. Increasing demand from traditional markets is driving the growth of the garment industry in the Philippines. Philippines’ minimum wage is the lowest amount a worker can be legally paid for his work. Their wage is set by tripartite regional wage boards. Philippines daily wage is between $9$10 USD with a yearly minimum wage is $2,053 USD. The new minimum wage reates for non-agriculture jobs is $10 and agriculture, retail, and manufacturing get $9. To ship a 20” container from the Philippines to the United States, it would cost around $1900 USD and take about a month to get delivered.
Located in the continent of Asia in the Western Pacific, the Philippines is the 73rd largest nation in the world with a total area of 300,000 square kilometers, compromising more than 7,000 islands.
The Philippines is a very relationship based country, so building relationships with other countries important to them. The Philippines is a member of the WTO and trades with the EU, China, Australia, New Zealand, India, Japan, and Korea. Although they do not participate trading with the United States, the Philippines does meet regularly with us under the support of a Trade and Investment Framework Agreement in aims to establish one. In a statement in 2017, the Office of the United States Trade Representative said officials from the Philippines and US agreed to work together “to foster free, fair, and balanced trade between them” during the TIFA meeting. With six medium to large size ports, there is room to continue successful imports and exports within the country. However, inadequate infrastructure, transportation and communication have inhibited faster industrial growth. More than 27 million Filipinos live in poverty (2015), therefore Poppy & Iris will work closely with the Philippines to help grow their economy through the increase of job growth.
The Philippines is a country that has one of the biggest available pools of qualified workers in the world. With more than 38 million people that belong to the workforce. This labor force is dominated by people that have an eduacational background. The minimum age for employment is 18 years old and below that age is not allowed. Most of these employed workers are in the field of services, followed by agriculture, and industry with the lowest percentile. The proportion of employed working people in the Philippines constitutes 60% of the population, which is a relatively large percentage that belongs to the upper-third in the world ranking.
Manufacturing comprises more than half of the Philippines’s industrial sector and accounts for almost a quarter of the country’s Gross Domestic Product (GDP). Manufacturing industries have higher employment, and promotes stronger inter-industry linkages, firm productivity, technological development and innovation. The growth of the this industry improves the upgrading and diversification in the agricultural sector, as well as drives demand for higher value-added services. Therefore, the Philippines is accelerating in the manufacturing competitiveness towards achieving sustainable goals.
India is a leader in the field of science and technology in the world. They house some of the youngest entrepreneurs in the technology industry throughout the world at an average age of 28 years old. India is considered the second most connected nation in comparison to China. Social media is a huge outlet used across India. The top three main platforms in the use are YouTube, Facebook and WhatsApp. India is working towards becoming a leader in the industrialization and technological development. India’s IT industry cost competitiveness is 3-4 times cheaper than the U.S. India is gaining prominence in the IT world by setting up global firms centers throughout the country. This has gained attention of major countries that want to invest in India’s IT industry.
While per-capita emissions are amongst the lowest in the world, it is also the third biggest generator of emissions. Despite being the third largest economy in the world, India also has a larger number of people living below the international poverty line. Because of this sheer size and rapid growth, sustainability is a challenge. However, it has shown leadership in combating climate change and meeting the Sustainable Developmental Goals, as reflected in many of its developmental schemes. Sustainability has always been a core component of India culture. Its philosophy and values have underscored a sustainable way of life. India and the world have a long and challenging way to go in dealing with environmental problems, but they are learning to live together in sustainable communities.
Domestic workers, around 80% of whom are women, are employed by wealthier Indias to perform household chores, with low pay and little or no job security. Rights group Anti-Slavery International said more than four million workers are employed in India in the unregulated domestic sector with wages typically two thirds lower than other industries. Many workers are not paid a fair amount of money, physically and verbablly abused, and have no benefits or security. National labor unions are asking for a minimum monthly salary of 15,000 Rupees or $231 USD, but the government has raised the wage to 18,000 Rupees or $277 USD. The absolute lowest federal minimum wage in Sierra Leone, India is $0.03 an hour.
India is a South Asian country and 7th largest nation int he world. India shares land borders with 6 countries: China, Bangladesh, Burma, Nepal, Bhutan, and Pakistan. The total population is 1.3 millino people. It houses the second largest textile and apparel sector for employment in the country.
India does not have any trade agreements with the United States and has no future plans of implementing a trade agreement.
INDIA
India’s labor laws date back to almost a century. This made it diffuicult to fire anyone without agreement between authorities, management and workers. Tackling India’s labor practices is a main priority on the Prime Minister’s list in order to revive economic growth. Their labor laws hinder a lot of progress and push for innovation. However, the country needs to start changing and correcting their employment laws, but that could also potentially lead to political
Manufacturing in India is expected to become the fifth largest manufacturing country in the world by the end of year 2020. The government of India has taken several initiatives to promote healthy environment for the growth of manufacturing sector in the country. Therefore, India is an attractive hub for foreign investments in the manufacturing sector. Several mobile phone, luxury and automobile brands, among others have set up or are looking to establish their manufacturing bases in the country. The manufacturing sector of India has the potential to reach $1 trillion USD by 2025.
COUNTRY RANKING PHILIPPINES
CHINA
INDIA
GOVERNMENT
6
5
10
LOCATION
7
9
8
BUSINESS CLIMATE
6
7
8
TEXTILE INDUSTRY
5
10
10
COSTS
8
10
3
TRADE AGREEMENTS
4
0
0
ECONOMICS
6
7
10
RISKS
5
4
SOCIAL STABILITY
4
4
SOURCING GUIDELINES
5
6
7
TRAINED WORK FORCE
9
9
10
TOTAL
65
71
77
7 4
1. 2. 3.
INDIA
CHINA
PHILIPPINES
SUPPLIERS ANALYSIS PINATEX: PHLIPPINES
GUANGZHOU MEGA TRIMMING CO., LTD: CHINA
We chose this country because the producer of our natural vegetable leather is produced only in the Philippians due to them only using the leaves of pineapples. The supplier only uses recycled pineapples that can’t be sold or used. They limit the use of harmful chemicals to grow the pineapples so it reduces harm to the workers as well as the products. They give working wages to their employees which all match our CSR program at Poppy & Iris.
We chose this country and supplier because the supplier is strong in the production of zippers and they have a great lead time, while they maintain strong work ethics within the factory. They do have restrictions on how products are made and the company works with clients to make sure that there are safe labor regulations in place.
LEATHER FOR HANDBAGS AND DRAWSTRING
YAHUANGDA METAL PRODUCT FACTORY: CHINA
SNAP BUTTONS
We chose this supplier in China to produce our closures for our handbags because they have their own design department. They also have strict administration systems in place to make sure the working conditions for their workers are safe and healthy. They only have a small number of employees which allows for better treatment of the employees in general. This supplier corresponds with Poppy & Iris’s CSR policy.
ZIPPERS
RUCHI TRADERS: INDIA PURSE LINING
We choose this country and supplier due to the demand they have in making lining for clothing and handbags. We chose this specific supplier because they have built trust with other clients by having safe deliveries, several payment options, fair labor practices within the factory. The fabric and dye that they use are high quality and the dye is safe for all skin types. They have a great client base, which builds trust and reassurance for our up and coming company.
SUPPLIER RANKING PINATEX
YAHUANGDA
GUANGZHOU
RUCHI TRADERS
ABILITIES
5
8
8
7
CAPACITY
4
6
9
6
LEAD TIMES
3
6
7
6
QUALITY
4
5
8
5
CUSTOMERS
2
8
7
4
SOURCING GUIDELINES
7
6
5
4
SERVICES OFFERED
3
7
7
5
STRATEGIC OUTLOOK
8
5
5
4
TOTAL
36
51
56
41
LINE PLAN
Monthly Line Plan Style Nbr 4257STV5T 3OH85M7T4L 3OH8GWGB91 32F9GTVC4L 3157PSAL4Y TOTAL UNITS
Season Description Piper Crossbody Ainsley Tote Willow Backpack Eloise Clutch Delilah Drawstring
Spring Total Feb-18 March-18 April-18 May-18 June-18 July-18 Quantities Quantities Quantities Quantities Quantities Quantities 250 300 325 350 350 300 200 275 315 325 325 275 175 200 250 200 200 150 100 150 200 250 250 125 60 75 100 100 100 85 785
1000
1190
1225
1225
935
1875 1715 1175 1075 520 6360
Fall Total August-18 Sept-18 Oct-18 Nov-18 Dec-18 Jan-18 Quantities Quantities Quantities Quantities Quantities Quantities 400 375 350 400 500 200 350 350 325 375 450 175 425 300 275 350 425 125 350 250 200 250 550 100 125 100 100 200 200 75 1650
1375
1250
1575
2125
675
2225 2025 1900 1700 800 8650
TOTAL
4100 3740 3075 2775 1320 15010
UNIT BREAKDOWN
Unit Breakdown Style Nbr. 4257STV5T 3OH85M7T4L 3OH8GWGB91 32F9GTVC4L 3157PSAL4Y
Description % to total Total Units Piper Crossbody 27% 4100 Ainsley Tote 25% 3740 Willow Backpack 20% 3075 Eloise Clutch 18% 2775 Delilah Drawstring 9% 1320 100% 15010
Average Monthly Units 342 312 256 231 110 1251
Cost per Unit Total Cost $ 110.00 $ 451,000.00 $ 190.00 $ 710,600.00 $ 230.00 $ 707,250.00 $ 80.00 $ 18,500.00 $ 140.00 $ 184,800.00 $ 2,072,150.00
Retail per Unit Total Retail $ 275.00 $ 1,127,500.00 $ 475.00 $ 1,776,500.00 $ 575.00 $ 1,768,125.00 $ 200.00 $ 555,000.00 $ 350.00 $ 462,000.00 $ 5,689,125.00
Tot Margin $ Marup % $ 165.00 0.6 $ 285.00 0.6 $ 345.00 0.6 $ 120.00 0.6 $ 240.00 0.6 $ 1,155.00
STRATEGY PUBLICATION & CONCLUSION After analyzing the selection of our countries, it was easier to navigate to our final choice by following our own sourcing guidelines. The manufacturing of accessories and apparel within these three countries is bountiful, along with this multitude comes skilled workforces, technologies, and knowledge of textiles. These qualities are most important to Poppy & Iris because without this knowledge within our countries our product would not be up to the best standard. It was important for our company to choose not only a country that fits our standards but as well as the factory within that country who can abide by our code of conduct while maintaining a realistic and profitable price for our order, while keeping in mind the well being of our factory workers. Through our research, Poppy & Iris found the three suppliers to be very transparent about their manufacturing practices as well as treating their workers with respect. These suppliers follow the same corporate responsibilities that our company follows and we have full confidence in their abilities to do the best work with respect to their employees and the environment.
FUTURE GROWTH PLANS Cruelty free was the most important aspect for our brand. As we continue to grow we would like to give our customer more choice and control. Therefore, the ultimate goal is to launch the “Bag Bar� which would allow our customers to customize their own bag. As of right now, we only have four color options with one type of vegetable leather. We want our clients to be able to choose everything from style, to material, to embellishments to color. This aspect will create an overall experience and give our women the chance to create a handbag based on her personal aesthetic.
CONCLUSION ANALYSIS The fashion and accessory industry has seen a global shift in consumer and social expectations, and our overall strategy of creating cruelty free and sustainable accessories aligns with that mindset. Providing a quality product made in a crueltyfree environment was of the utmost importance to our company. Therefore, when researching sourcing companies and manufacturers, we made sure they adhered to a transparent and ethical business standard. We believe this will maximize our margins as the consumers will want to support such a strong business model. Our lead times may be longer as we will not accept quick work, nor do we weigh quick production over quality of human life.
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