Jewelry Supply Chain Strategy for maimoun

Irene Lai, Mia Zhong, Xue Bai | Supply Chain Management in the Global Marketplace | Spring 2022

R

Brand Overview

Located in: Syosset, New York.

Women's Clothing, accessories,

decor.

Founded in:

Founded by: Mina Alyeshmerni

Company Mission

Build a community Mina Alyeshmerni cultivates a Maimoun of her own, comprised of designers and friends and turns into a family.

Friendly marketplace Mina aims at creating a diverse environment for team and build the trust to reach key results.

Share the joy together - Mina's mission working in the fashion industry in everything from merchandising to costume design, providing a platform for the communities to share their joy in life.

A lifestyle store featuring thoughtful goods that blend into and build out the individual context around you.

SWOT

Unique style from various brands worldwide selected by Maimoun Wide partnerships with suppliers/retailers diverse categories compared to online clothing-focused brands

Strengths Weaknesses

Unstable cooperation with retailer, designer, and supplier Hard to expand to global markets due to small scale of capacity and regional reputation

diverse cultures popping up in the states

gender fluid trend is popular with 20 ish to 30-ish, our design is targeting at unisex and transgender oriented

Opportunities Threats

Online boutique stores are implementing the same strategies - diversification Similar buyer shops popping up and launch their own retail stores of both online and brick and mortar stores to share the market size The risk of high return rate of products under the pandemic

Name

Ethnicity

Customer Persona

Name:ValentinaGarcia

Name

Market size

Sources :

Global Watches & Jewelry market Before COVID time

The watches & jewelry segment accounted for 67% of the accessories global market revenue in 2019. At 67%, the watches & jewelry was the largest segment of the accessories market with US$344 billion. Within US$344 billion, the jewelry accounted for 79% in 2019.

Jewelry generate the highest revenue in the watches & jewelry segment.

Market size

Sources

Global

market

&

Market size

Sources :

The UK & The US market share

2019 -2025 Watches and Jewelry industry forecasting

Watches&JewelrysalesinEuropewillincreaseata TheUKhasthehighestrevenueinwatches&jewelry marketinEuropewith6.5%sharein2019andis estimated7.3%in2025.

CAGRof1.2%from2012to2025

Watches&JewelrysalesintheAmericaswill increaseataCAGRof1.3%from2012to2025. TheUShasthehighestrevenueinwatches&jewelry marketinAmericaswith71.3%sharein2019andis estimated74.5%in2025.

Missoma is a company that designs 18K gold vermeil jewelry, using bold colors, gemstones and special hand faceted cuts. It offers necklaces, earrings, pendants, rings, bracelets, etc.

Found in 2010 by Marisa Hordernand based in the UK. Their HQ is in London and have e commerce platform.

On a mission to inspire confidence, spark creativity, and fuel collaboration

Annual revenue is about £8 M (2021)

Price range : $33 - $606

The style is closed to Maimoun of elegant and long lasting, but provide more collections than Maimoun

Competitors Analysis

RGshopisajewelryretailer offeringeco-friendlyand handmadegoodsonlywith14k and18kGold,14kGoldfilledand .925SterlingSilvermetal. Foundin2014byRachelKarcichin LosAngeles,USA. Onamissionofbuildinga communityfromlike-minded individualsandcreateabeautiful productlineofhigh-quality jewelryatfairprices. Launchthecareerwitha commitmentofsustainability (CSR) Takeresponsibilityforthe company'sfootprint,andaimat providingtimelesspieces,like poweringinteriorlightbysolar energy,recyclingmetalscrapsfor futuremanufacturing.

Pricerange: $18 $740

JAXXON is a jewelry retailer founded in 2018 based in Los Angeles offering chains, bracelets, and rings made in .925 sterling silver, 14 K yellow gold and white gold sourced from Italy. Their design is in style of neutral and unisex that suit for both men and women, but for men collection is dominant. Insist in the most enduring and premium quality materials straight from Italy, from solid 14k Gold to 925 Sterling Silver at a price point within reach.

Annual revenue is $1 M (2021) Price range : $59 $549

Founded and Designed by Faris Du Graf in Seattle, Washington in 2012, FARIS is a jewelry manufacturing company that provides collections of earrings, ear cuffs, necklaces, bracelets, and rings. Each collection builds on a vocabulary of bold, sculptural statements that aim to elevate the everyday and the rare occasion.

They design and manufacture in Seattle based studio.

Annual revenue is $60,066 (2021)

Price range : $59 $720

Perpetual Map

Affordable Luxury Indivisuality

Ethical & Endurable

Marketing Positioning

Channels

Website

Theofficialwebsiteisthemainsaleschannelandcontainsthe

Instagram

Publishthelatestinformationaboutthebrandandprovidedirect

CooperatewithotherdistributorssuchasGarmentory,COOLS.

Ethicalsourcing

We insist on the use of ethical materials for design.

Earth conscious craftmanship with guaranteed quality made in Italy.

100% recycled gold and silver

Recycle, Remake & Resale

We will recycle previous products by recollecting metal scraps or inventory, and remaking them into future products because we don't want our metals go to landfills and cause metal pollution. Tied with our product returning policy.

Cooperation Education

Weworkdirectlywithourcentralizedin housemanufacturerinItalyratherthan scatteredmanufacturersto: Cutoutmiddlemen Cutdownoncarbonfootprint Providethefairlypricestoourend consumers

Carefully-selectedpieceswithout unnecessarywasteduringtheproduction. Ensurethateverysupplierweworkwith doesn'tusechildlabor,complyingwithour codeofconduct.

Wewanttoconveythestoryofthe productswithlonglastingvaluethat thematerialsandsourcesoftheitems areecofriendly. Wearenotonlypromotetheproducts buteducateourcostumerswitheco consciousness.

S P R I N

Supply Chain Overall Analysis

manufacturingprocesstoanItalian

andalsomakestheproducts.Castingandmoldingamajorityofourgoldand silverpiecesinourItalianmanufacturer'sstudio.

MACRO SUPPLIER ANALYSIS

PESTS

ANALYSIS POLITICAL ECONOMIC

EU member, bound by EU treaties and laws

Member of OECD, WTO, OSCE, and G7

Political instability & disagreement over policies

US citizens are not permitted entry except for students, businesspersons, EU residents, and relatives of Italian citizens

Movement between regions is prohibited except for work, health or necessity until April 30, 2021.

Imports taxes - Textile - 6.6% Clothing 11.5% Leather & footwear 4.2%

Italy government operates one free trade zone: The free port.

GDP loss of 18% in 2020

Manufacturing represents 16.6% of Italy’s GDP

GDP growth projections for Italy is 3% in 2021

Inflation rate of .8%

10.3 % unemployment rate with expected 11.6% in 2022

The country has suffered from deindustrialisation

Average labor cost $30 usd/hr

SOCIAL TECHNOLOGICAL SUSTAINABLE

Italian is the official language of Italy, and 93% of the population are native Italian speakers

Italy has the risk of natural disasters, like earthquakes and climate change.

Large portion of manufacturing companies are family owned Family oriented and value social activities

The use of the Internet is fast rising in Italy with 3 million new internet since quarantine

One of the top four countries in Europe in digital revolution Companies investing heavily in scientific and technological research Italy textile production industry is one of the most advanced in the world

The government, ensuring an environmentally sustainable

economic development

Land, Sea and the Ministry of Foreign Affairs was also working on sustainable

POLITICAL ECONOMIC

Constitutional monarchy that runs under the influence of a parliamentary system

Relatively ‘fair’ country, with the public having a large influence on the inner-workings

Proactive government Politically stable Split into national and local administrations Negative factors

Some well hidden corruption

Leave the EU (Brexit)

GDP of $1.96 trillion pounds in 2021 (COVID impact)

The fifth-largest economy in the world

Diverse market provides an equal opportunity for all the businesses to grow and flourish

Many individual investors and companies have invested their resources and capital in various fields like real estate, science, technology, food, clothing, grocery, entertainment, and sports

The UK economy contracted 22% in the first half of 2020 (COVID impact)

Economists project GDP growth in the range of 5.8% to 7% in 2021

The UK market is the largest in Europe and the fifth largest in the world for U.S. goods exports

The United Kingdom is the largest market in the world for U.S. service exports.

SOCIAL

Well structured Health Care System

Education systems are recognized worldwide

High income with per capita among the world’s top 20 countries Law changes affecting social factors

TECHNOLOGICAL

Has the world’s leading research and development institutes

The world’s leading developed countries

Global communication technological advances

British tech institutes are succeeding over Indian, Japanese, Korean and American institutes

The leader of digitalization in fashion week, 2015 Burberry Intellectual property rights and copyright infringements

SUSTAINABLE

The level of pollution created by the products and services

Recycling considerations and awareness in apparel and fashion industries

Environmental issues like bad weather

Attitudes to the environment from the government, media to consumers

government

Opening Shanghai Pilot Free Trade Zone (SHFTZ) to create a

trade environment

One of WTO members

One of APEC members

The government focused on the development of e commerce

Growing national protectionism

Trade war

Penalty Duty : The US consumers and companies should afford higher tariff Trade deficit in the US market

The second largest economy right behind the US, with a $16.38 trillion GDP and a growth rate at 8.5%

Extremely

Risks

labor

Trade war causes the US China business investment

Top nation of manufacturing

The People’s Bank of China has increased interest

The central bank is urging banks to lend less and impose limits

SOCIAL TECHNOLOGICAL

MICRO SUPPLIER ANALYSIS

Business info

Location : Via Adolfo Ficai, 24, Monte San Savino, Tuscany, 52048, Italy

Business type : A jewelry manufacturer and wholesaler

Employees : 46

Revenue :USD $9 Million

Provide : precious metal like 925 silver and 18 karat gold Tel. / Fax : +39 0575 849696 email: info@ellebicatene.it

Competitive Advantage

Offer the outsourcing services : from raw materials to semi products to finished goods. Made in Italy.

expert in sterling silver production and fine jewelry. professional staff advanced technologies

well known reputation with exporters, importers, wholesalers, and manufacturers worldwide. fair price abided by global live gold price market.

Product/service

Business

Location : 50A Maltings Place, 169 Tower Bridge Road, London SE1 3LJ, GB

Company : A family owned online beading retailer and wholesaler with six websites targeting different markets in Europe.

Employees : 46 Revenue USD $9 Million

Provide : a variety of beads, semi gemstones, settings, pearls, and jewelry findings

Tel. : +44 207 367 62 17 email : info@i-beads.com

Competitive Advantage

Staff fluent in a number of European languages

Flexible delivery times and options to all destinations based on tailored needs.

well structured return policy Number one online bead retailer in Europe over the ten years. strongly committed to customer satisfaction by improving customer services

UI user friendly with high quality graphics and detailed product descriptions

Business info

Location Room 202 and 301 1st Building NO2 Qifeng Road,Nankeng,Qishi town Dongguan, Guangdong, China (523000)

Company : A packaging manufacturer providing the printing and packaging products since 2010.

Employees : 149

Annual revenue : USD $5 - 6 Million

Provide : Wooden Boxes, Cardboard Boxes, Plastic Boxes Jewelry Display, Paper Bags Tel. : 17728907029 Fax : 86 0769 82218498

Competitive Advantage

Flexible delivery times and options to all destinations based on tailored needs.

well structured return policy strongly committed to customer satisfaction

Transparent information on products and bidding price

Dongguan Xinyang Packing Products Co. ILtd Beads.comEllebi Catene SRL

Time and Action

From design to product launch, we estimate the duration will be around 4 months , and the product will be one of the item of S/S 21 Collection.

Triple Constraint

Code of Conduct

Maimoun expects all of its employees and vendors to comply with the law and act ethically in all matters.

To help ensure our suppliers uphold our standards, our Supplier Code of Conduct communicates our expectations related to human rights, fair and safe labor practices, environmental protection, and ethical business conduct.

REQUIREMENTS FOR ALL SUPPLIERS

Business Integrity

The highest standards of integrity must be upheld in all business interactions.

Fair and Equal Treatment

Suppliers shall not use corporal punishment, threats of violence, or other forms of mental or physical coercion. There will be no discrimination in any part of the employment relationship.

Child Labor

Suppliers shall not employ any persons under the age of 15, the legal minimum age for employment in the country.

Environment

Suppliers shall meet or exceed all environmental laws and regulations.

Production Overview

Production Planning Product Breath

t

e p t

Production Forecasting

JEWELRY SALES FORECAST

PRODUCT DETAILS

As shown in the picture on the left, this is our product design manuscript and product effect preview.

This is a pair of earrings with an irregular left and right shape.

925Silver Pearl Earrings

It consists of an earring hook and a metal body part and one earring with an irregular shaped pearl accessory. The current production is mainly in 925 silver, and from the long-term production plan, the 14k gold version will be added later.

Cost Estimates

The price of 925 sterling silver is about 82.12 USD per 100 grams. The earrings will be made from raw materials by hand, and the earrings will include a pearl per pair, two earring hooks and two connection components.

According to Salary.com, the average silver jewelry artisan's salary is $41,701. This will be the basis for calculating the labor portion of the cost. Let's say that the production cost of our pair of earrings is $28.4 and the total cost of the unit with the packaging box and bag $29.3

COGS

MARKUP

Tech Pack

ProductSpecSheet

Product Life cycle

Introduction to the Growth

Maimoun already has a base of customers, on the promotion of social networks and advertising to achieve sales growth.

Maturity to decline

But the product sales grow to a certain stage, reaching maturity. the sales of the product will shrink. At this point, we will launch a new product line to regain consumer interest.

As our brand continues to grow, our products will continue to innovate, not staying with the basics of sales, but going more into new designs.

Website : maimounstore.com

Transportation

Route & Mode

Afteranalyzingoursuppliersand controllingourcosts,weselect rawmaterialsuppliersintheUK andItalyandtransportthemto theItalianmanufacturerfor production,guaranteeingour imageofhighqualityjewelry madeinItaly. Thejewelryisthenshippedback toourwarehouseintheUnited Statesforsale.Thepackaging andtagsaresourcedfrom chinesesuppliersduetolower prices.

According to the chart,

UPS express performs strongly in overnight shipping and expedited shipping of 2-3 day deliveries.

DHL has the broadest global footprint of the five companies And also the company with the most shipping options and flexibility to combine them. FEDEX has a strong ground transportation capability. Royal Mail, on the other hand, is too geographically diverse, with its main market within the UK. SF Express is the most effective, but air freight is expensive.

Based on the comparison of these five courier companies, we choose DHL because of its business in the world are very mature, and the company has cross border sea freight service, the price is affordable, will be our best choice.

The diagram shows how the product is delivered when completed by the Italian manufacturer. We choose dhl's door to door service to ship directly from the Italian manufacturer's facility to our warehouse in New York, where they will be inspected for quality and sold. After comparing sea and air freight, we chose the air freight method with a time of 11 days and a price of 514 USD. We can ship 30kg of goods, about 1000 pieces of earrings.

The total transportation cost is $1,067.09

Quality Assurance

All silver must be sterling at 0.925

All gold metal must be 18K yellow gold at 75% gold and 25% alloy (Brass/Rhodium)

No risk of allergy

Wearing comfortability : Weight under 5 g

All imported products should follow the rule of Federal Trade Commissions (FTC)

Earrings Product Criteria

Silver Pendants must not contain sharp edges and scratching longer than 1mm.

Pearls must not be flawed :

variation of the scratching allowance is less than 1mm.

Quality Testing

General Product Criteria QA samples

Safety Test

Metal testing should follow

SGS standard in Italy

Hypoallergenic testing

Functionality Test

Must be identical to final product with the same proper metal and pendants

Weight : The nature of .925 silver is famous for its lightness, and we want each single product weight between the range of Size and thickness should follow tech pack guidance.

Water resistance testing

testing

resistance testing

1 g - 3 g.

Final Samples must be submitted with packaging, warranty cards, and care guidance. Missing deadline and/or submitting poor quality product will result in cancellation of ordering

Quality Assurance Flow

Quality

EPost-production arrings Inspection

Inspection

Voice from customers

Online

Packaging

Primary

Packaging

Our packaging consists of three parts :

Box

label

Secondary

All are manufactured by our chinese supplier. The form on the right shows our packaging schematic, as well as the product care and instructions that will be placed inside the box.

Packaging

We choose DHL international air freight door to door service for international part of raw material transportation and product transportation. The size of the shipping box provided by the express company is 50cm*40cm*40cm.

For the domestic mailing part, we choose Fedex. the express box is provided by the courier company and the size is 20cm*20cm*10cm.

Warehousing & Logistics - short term

Centralized warehouse & Distribution Center

Since Maimoun is a small size business entity and it is at the initial stage to launch the namesake product line, we will start from centralized warehousing system for production process.

Considering the leasing cost and convenience, we select the place in Long Island City NY as our warehouse and distribution center, which is about 30-40 mins driving away from the brand office. We will move a part of the office there.

MANAGEMENT

We will move our procurement team there for executing and monitoring periodical QA process, packaging process, categorizing goods and inventory management.

The office of the procurement section will be set in the second floor. Marketing team, financial section and manager office will remain in the HQ in Syosset.

Current status

Warehousing & Logistics - long term recommendation

In the short term, we sell products online to North America, Central America East Asia, Europe based in our office and the centralized warehouse in New York

Future Rough plan

In the long run, we will set up the second warehouse in Italy and several DC all over Europe to expand European market

Reverse Logistics

Expectedreturnrate

Return Policy

Strong

Real

Maimounreturnrate

Returns&Exchanges

If

are not satisfied with their

must be

or a full

would like to

within 14 days

are $8

all U.S.

will be deducted from the cutstomer's refund total.

orders may

any method of your choice, at the customer's

recommended.

processed within 7 days after Maimoun

the merchandise.

will receive a confirmation by email when their

are processed.

general@maimounstore.com to begin the return process stating the order number in the subject line.

Recycling Activities

Returned Merchandise:

Items must be returned in their original condition with tags intact. Maimoun reserve the right to refuse any returned item that does not meet our return policies.

Returned items will go through a quality check before selling to the market again. All items are thoroughly inspected prior to shipment, should the customer receive a product that is damaged or defective please contact Maimoun within 5 days of receiving the order.

Damaged products will be re manufactured or repaired before re sell. (One of our CSR implementaiton)

Performance Management

Key Performance Indicators

Customer Satisfaction:

Customer Satisfaction will be judged using Facebook recommendations and Instagram engagements.

Financial Health:

Financial health of the brand will be calculated using Return on Investment per year.

Next quarter goal: 25% ROI

Slow moving stock:

Every item will be tracked for inventory control and monitored weekly to determine the speed of sale. Goal varies based on art limited and basic items. Overhead expenses will be calculated by adding all the unforeseen expenses that come up every quarter.

Overhead expenses:

Next Quarter Goal: Reduction by 28%

Employee Satisfaction:

Employee satisfaction will be calculated using employee retention percentage per year.

Goal is to reach 93% employee retention

Customer Retention: Inventory Turnover:

Customer retention will be calculated by looking at the application of the promo code of 10OFFSECONDPURCHASE on the website sales

Number of times inventory is sold or restocked in a year.

Goal: 4 per year.

Returned goods:

Returned goods will be calculated by counting the dollar value of returned goods, adding any restocking expenses, and subtracting the dollar value of the merchandise from the revenue, if it is damaged and not fit for resale. The goal is to reach 8-15% returned goods.

Order Tracking Accuracy:

The manufacturing team will be tracking order delivery.

Goal: 100% accuracy

Balanced Scorecard

2 1

P R I N

Suppliers are chosen based on the quality of raw materials and semi-products from China, Italy, and the UK.

Our code of conduct values Business Integrity, fair treatment, child labor issues, and environmental friendly processes.

Main product lines are gold and silver jewelry. We aim to provide affordable luxury for our target consumers.

Buy the materials and outsource to manufacturer for producing products due to our current entity size. The type of supplier we choose is similar to CMT service since we provide design diagram but outsource the rest of the production process to our Italian supplier.

Buy the elements and raw materials within 1 month and outsource the production to our Italian supplier over around 3 months because time is not our top constraint in the process.

Inventory turnover within 150~200 days and flexible ordering frequency to ensure that we don't have too much on hand inventory and predict the trend more precisely based on our target market.

Even though quality can mean in different ways to different people, we choose the well-recognized and common used measurements for QA and quality control to guarantee the quality and convince our end-consumers. DHL is our top carrier choice for transportation because of its mature development and affordable cost. Maimoun tries to improve the online purchase return rate within 15%.

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https://detail.1688.com/offer/607774336586.html?spm=a2615.7691456.autotrace-offerGeneral.40.3fc04e3c0AUsK7 https://detail.1688.com/offer/43552948780.html?spm=a2615.7691456.autotrace-offerGeneral.4.27475c53yPjQY2

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RABANAL

IRENE LAI, MIA ZHONG,