Kate Spade by Jany Yang

jany yang trishawn brown tenisha clarke

PART I Case Study Importer PART II The Imported Products PART III The Import Buying Plan

contents

Case Study Importer Overview: Brand Strengthening Strategies The kate spade annual report of 2010 states that the brand formerly of Fifth and Pacific has been investing initiatives to strengthen its core and value. These included decentralizing management, uniting control, location and product categories under distinct brand leadership. The vision remains consistent and precise thus strengthening brand equity. The company also invested time in direct to consumer retail experiences. Through the development of these strategies, Kate Spade has grown from a company with powerful product and poor execution to an industry powerhouse of affordable luxury encompassed within a lifestyle brand.

By 2013, annual reports state that Kate Spade saw total revenue increase by +61% to 743 milion.

Expanding into the world of omni channel proved to be another financially brand strengthening strategy as shown through the 49% rise of ecommerce business.

Operating and financial goals for Kate Spade are based on several operating strategies. One of

which was opening new retail locations in North America, Japan, Brazil, the UK, and Southeast Asia, creating attainable and aspirational price points for a broader customer and launching ecommerce platforms in Europe. Kate Spade has also focused on customer relationship management and enhancing the overall ecommerce experience.

case study importer

Marketing

Kate Spade focuses their marketing efforts on constantly reinforcing the brand and its vision,

customer awareness and engagement and also through the immensely successful ecommerce. Marketing strategies to enhance brand awareness vary, however these include mailers, in store events, internet promos, and social media. 2013 also brought the in store fixture program to enhance presentation of products through graphics, fixtures and graphics.

Kate Spade Timeline 1986 Kate Spadeâ&#x20AC;&#x2122;s first job in fashion

1991 Kate leaves Mademoiselle

1993 Kate Spade and Joel Franklin launch their New York based handbag design company and launches handbags with Andy Spade

1994 Kate and Andy Spade marry

1996 First store opening in New York’s Soho CFDA awarded Kate “America’s New Fashion Talent” in accessories for her classic designs

1999 Kate was honored when her handbags were exhibited at the cooper Hewitt museum for the first national design triennial celebrating American design excellence

2004 Kate Spades home collection won three design awards: House Beautiful’s “ Giants of Design Award for Tastemaker” Bon APetit’s “American Food and Entertaining Award for Designer of the Year” Elle Décor’s “Elle Décor International Design Award for Bedding” Kate Spade began sharing personal style and philosophies in the form of 3 books: Manners, Occassions, and Style Kate Spade’s brand also went international opening a store in Aoyama, Tokyo, and Japan.

2007 Spade was turned over to Kate Spade and Company formerly Liz Clairborne and Fifth and Pacific. Deborah Lloyd took over as president and chief executive.

the imported products

Imported Products

according to certain specifications

Handbags (imported)

Suppliers

Clothing (imported)

Cho Ltd.- South Korea

Jewelry (imported)

Superl Holdings Ltd.- Hong Kong

Shoes (made in Italy)

Shanghai Kate Spade Trading Co Ltd-China

Accessories

Fashion Focus Manufacturing Limited-Hong Kong

Wallets (imported)

Small Accessories (imported)

Tech (imported)

Scarves, Hats, Belts (imported)

Legwear (imported)

Beauty (imported)

Eyewear (imported)

Home goods (Domestic) Stationery (imported)

BUYING/SOURCING and Suppliers Li & Fung acts as the major primary global apparel and accessories sourcing agent for Kate Spade and company, including Kate Spade .Li & Fung makes a profit based on the Kate Spade cost of product purchases using their services. Since 2009, alongside Li & Fung, Kate Spade has been granted licensing arrangements with JCPenney in the US and Puerto Rico. As a result of several licensing agreements that encompassed the entire Kate Spade Company corporation, they refunded a portion of the closing payment received from Li & Fung of $24.3 million in the second quarter of 2010, $1.8 million in the second quarter of 2012 and settled $6.0 million in the fourth quarter of 2013. In addition, the Kate Spade agreement with Li & Fung is not and exclusive sourcing deal but the company is required to source a specified percentage of product purchases from Li & Fung. Products made in Asia are a substantial portion of Kate Spade purchases, although Kate Spade sources products in the United States and several regions. During 2013, approximately 230 suppliers in 17 countries manufactured Kate Spade products. Most Kate Spade products are purchased as completed product packages from manufacturing contractors, where the contractor purchases all necessary raw materials and other product components,

Traits of the country: Cultural

Hong Kong is a very diverse place and is like a salad bowl that is mixed with eastern and western

cultures and people from multiple different countries. Due to of the diverse colony background, people in Hong Kong are very open minded and are very accepting on a wide variety of things. Populations, languages, religions, educations system will be introduced in the next paragraph.

“At mid-2013, the population of Hong Kong was 7.19 million, including 6.98 million of usual res-

idents and 0.21 million of mobile residents.”1 The first language in Hong Kong is Cantonese and English is the second language. In the pass few years, Mandarin has become more often spoken as well because Chinese visitors would come to visit the shops in Hong Kong. The majority of people in Hong Kong are Buddhism, Taoism and Christian. Others popular religions include Confucianism, Catholicism, Islam, Judaism, Hinduism and Sikhism.

Political

import buying plan

Hong Kong became a British colony since 1842 and they returned the city to China on July 1st,

1997, which was then named as Hong Kong Special Administrative Region of the People’s Republic of China. According to the constitutional document, the basic law, the socialist system will not have any changes for 50 years under the ‘one country, two systems’ principle. The Head of Hong Kong government is chief executive who is C.Y. Leuong. He is represented by his cabinet of the executive council. The legislature is made up of the legislative council, which makes up 70 seats. The Highest court in Hong Kong is the court of final appeal.

Economic

Hong Kong has been known as an international financial center in Asia. Free trade and low taxa-

tion are the main characteristics of Hong Kong’s economy. Local currency is Hong Kong dollar (HKD). In 2013, the gross domestic production was 2,022.2 billion and GDP per capita was HKD$295,303. As a result, GDP had increase 2.9% in the year of 2013.

Geographic 1

Hong Kong is located in the southeastern region of china; it covers Hong Kong Island, Kowloon, http://www.gov.hk/en/about/abouthk/factsheets/docs/population.pdf

Lantau Island and New Territories. It also includes Victoria Harbor which is between Hong Kong Island

provide convenient transfer points between separate lines.”2 Minibuses services operate along specific

and Kowloon. The total landmass is 1104 square kilometers.

routes with fixed prices or they operate along routes that passengers can get on or off anywhere they want with no fixed price. Most of Hong Kong buses have two levels and their route covers almost ev-

Contributing Factors:

erywhere of Hong Kong and final destinations are displayed on the screen in Chinese and English as

Labor

well. Trains count as the cheapest and slowest transportation in Hong Kong. Ferries operate routes that

In 2013, the total size of the labor force in Hong Kong was 3.87 million and the average age was

connect between Hong Kong, Kowloon and other main islands such as Peng Chau, Cheung Chau, Lam-

15 and above. By March of 2014, ranking the no.1 occupations in Hong Kong are people engaged in

ma Island and Lantau Island. Airport express is a high-speed train that will only take approximately 24

imports or exports, wholesale and retail industries. No.2 is people working in transportation, storage,

minutes to get from airport to downtown, which is total of 35.3km and about 28 minutes from down-

postal and courier service. Financing and insurance occupations are ranked no.3. Lastly would be social

town to AsiaWorld-Expro.

services and personal services.

In addition, vessel, aircraft and vehicle are also the main transport for importing to domestic

market and exporting to other countries. Inputs

Hong Kong does not have natural resources except outstanding deep-water harbor and feldspar.

Most of the inputs are either directly imported from other countries.

Business Climate

Companies or workers should be able to work in a fast-paced environment. People in Hong

Kong are generally fast on decision-making. “Firms must be eager to work seriously and respond quickProducts

ly to inquiries, meeting relevant standards, and visiting the market for first-hand understanding and

relationship building.”3

Hong Kong has the largest trans-boundary manufacturing base, it combines high value and tech-

nology-intensive manufacturing in the territory. The land and labor intensive processes are mainly located in the southern art of Mainland China, it helps its economy and other countries economies as

Effects of quota removal

well. Hong Kong is one of the world’s leading exporters for textile, apparel, toys, timepieces and jewelry.

Exports make up to 80% of the money that I earned there.

costs by sourcing their product or services from specific locations. It will definitely allow manufacturers

With the quota elimination, it will help importers and retailers to lower their administrative

to access limited markets that they could not before and stay competitive at different sites and control Transportations

market pressures that would otherwise drive them out of the market and be less competitive on the

price of textile and apparel goods.

Hong Kong has a high-developed infrastructure. There are different types of transportation for

visitors or locals to get around easily, including taxi, MTR, Airport Express, Minibus, Bus, Tram and Step-2: Country Analysis – The sourcing Decision: Strategies used for importing

Ferry.

Taxis are three different colors which depend on the geographic area of Hong Kong. “MTR op-

erates a domestic railway network with 174.7km of track covering 82 stations on 9 main commuter

Company’s Code of Conduct and follows the guide line of sourcing

lines: Kwun Tong, Tsuen Wan, Island, Tung Chung, Tseung Kwan O, East Rail, West Rail, Ma On Shan

“Our Company is committed to producing high quality products at attractive prices for

and Disneyland Resort lines. The number of interchange stations has been expanded to 19 in order to

2 3

http://www.mtr.com.hk/ch/customer/tickets/octopus_fares.html http://www.export.gov/hongkong/doingbusinessinhongkong/index.asp

our consumers. In our sourcing efforts, we must follow the letter and spirit of all applicable

· Government support for companies

laws and maintain a high standard of business ethics and regard for human rights. Moreover,

· Produce High quality products

we must require sound business ethics from our contractors, suppliers and licensees. All of our contractors and suppliers and all of our licensees and their contractors and suppliers must observe all applicable laws of their country, including laws relating to employment, child labor, discrimination, the environment, and safety in their industry-related fields. Our contractors,

Threats · Current minimum wages

suppliers and licensees must also comply with applicable United States laws relating to the

· Low currency rate

import of products, including country of origin labeling, product labeling and fabric and prod-

· China political and economic control

uct testing. If local or industry practice exceeds local legal requirements, the higher standard

· Low cost competitors

applies. Our Standards of Engagement set forth the standards we expect to be followed by all of our contractors, suppliers and licensees. ”4 Determine suitability for importing, SWOT analysis for Hong Kong Strength · Free Trade · Low taxation · Gateway to china · Good location (deep-sea port) · Excellent infrastructure · International financial center · Manufacture Varity of goods · Large stock market and foreign exchange market

Weaknesses · High labor cost · Limited land of use · Natural inputs shortage

Opportunities 4 http://phx.corporate-ir.net/External.File?item=UGFyZW50SUQ9MjIyMDk0fENoaWxkSUQ9LTF8VHlwZT0z&t=1.

What is the competitive advantage held by the company and/or being imported products in the USA market?

Deep natural seaport, partnership with china, free trade agreement and low taxation have been

influential in facilitating the economic and political developments.

Hong Kong leather consumer goods manufacturers and suppliers export a wide range of prod-

ucts to the global markets including: footwear, travel goods, handbags, wallets, briefcases, clothing, gloves, mittens, belts and other fashion accessories. Many of North America, Western Europe and other countries see Hong Kong as an important sourcing location because of industry’s high quality products, flexibility, production with a short lead-time, quick responses to fashion trends and ability to meet customer expectations.

Even though most of the production is carried out to the in-lands of China, Hong Kong contin-

ues to maintain an active role in the administration, quality control, market development and product design/planning

Step-3: Country’s Business Etiquette

Type of culture

Saving face is about reputation and self-esteem. You will lose face by your behavior to others, and

give face to whom you show your respect to. Never insult, show your anger and dispute others publicly.

In Hong Kong, there are rules about appropriate behavior and manner that involves how people should

tain continuity in the objects you purse, the messages you deliver, and the people you include in the

act in order to respect their elders. People learn to never speak their feelings, and to always watch out

negotiation.

for what they say and do whatever they are asked. Type of Communication Masculine or Feminine

There are three main types of communication; they are indirect communication, high context

Hong Kong is somewhat masculine and has high scores on power distance and pragmatism. The

communication and formal communication. Indirect communication is referring to the meaning that

society in Hong Kong believes “you work for what you earn” where success can be driven by how hard

is hidden behind the words instead of speaking it directly to another person. Eye contact, facial move-

working you are. Power distance in Hong Kong is referring to “big man is ruling the little man”. Due to

ment, body language and the tone of voice are ways to express feelings in conversations. High context

this reason, the Chinese government has been trying to fully take over Hong Kong mainly by changing

refers to people in this culture who tend to rely on each other. The relationship between people depends

the education system, reorganizing the government system or change laws. It has created a conflict

on how much trust do you have in them. Responsibility is also very important. Formal communication

between the government and the protesters of Hong Kong. People who live in the city are very realistic

is referring to the sensitiveness in social status. It does not allow for calling elders by their first name.

and materialistic as well. Social and Culture Elements Negotiation Styles and Strategies

Appropriate Business Attire

When negotiating with counter parties, the purpose of first meeting is to build a deep relation-

On the business side, Men should wear moderate dark color suits and women should wear dress-

ship with each other by better communication amongst each other before initiating the negotiations.

es, suits, blouses or knee length skirts. Depending on what kind of job you have, outfits can be a little bit

High-ranking members in the group should lead the discussion. Even though English is an official lan-

more causal and colorful but still remain professional.

guage in Hong Kong, people don’t speak it as much as their native language. Therefore, speak in short and simple sentences without any slang involved when communicating with counterparts in English.

Introduction and Greetings

Never disturb the conversation when somebody is speaking. Make an appointment by calling or email-

ing to your business partner at least three weeks in advance, and try not to schedule a meeting around

ders will first be introduced before anyone else. Remember to wait to be introduced. One should always

public holidays such as Christmas and the Chinese New Year. Be sure to provide detailed information

greet their business partners with only a light handshake, no other physical activities.

Hierarchy is very important in Asian culture. In a business world, higher position members or el-

about who you are and what is the meeting about during the call and confirm the appointment the day before to make sure everything is good. Presentation is optional. If you do, it is good to keep your

Presentation of Business cards

presentation simple and short with visuals for member to understand it easily and make copies for the

audiences.

members. For the best, you should print Chinese on one side and English on the other with any shade

of red and gold color. It means luck. Use both hands to give and receive business card.

In Hong Kong, the primary approach of negotiations is to employ distributive and contingency

Make sure to carry plenty of your business cards to meetings at all times and present them to

bargaining. Business partners are supposed to focus on making long-term commitments and benefits. Keeping relationship intact throughout the negotiation is vital. Therefore, it is best to remain clam,

First name or Title

friendly, patient, persistent, and never taking anything too personally. It is also very important to main-

Address people you don’t know with a title and their last name, such as “Miss Yang” or “Doctor

Yang”. Never call them by their first name that is very disrespectful. If it’s someone that you know, address him or her with his or her nickname or first name, for example, Jany. English name is the trans-

Time

formation of Chinese name, which include three initial. In Chinese culture, the family name goes first,

family name is the second which is opposite of western culture, such as Yang Tsz Kwan.

meeting or event. If you do, call before the meeting and give them notice.

Gestures

Joke telling

In Hong Kong, making enough eye contact is essential to daily interactions. It helps build re-

In Hong Kong culture, sense of time is very important. You never want to be late to any business

“Telling jokes in informal situations is acceptable, but don’t do that when you are in a group

spect. One should also avoid touching others as it is only deemed necessary when shaking hands. This

instead of just with an individual. Moreover, be aware that cross-cultural jokes are hard to understand

is a very common trait in this culture. People tend to point their hand instead of their finger to point out

because the point of a joke is different and might be lost in translation.

objects or people. This lends itself to the constant usage of non verbal communication where people like to give small hints to what they are thinking.

Business Entertaining Proper use of Utensils

Color, Numbers and their meaning

The color yellow and red are lucky colors. Gold means fortune. You will often see red and gold

chopstick and place it between your index finger and middle finger and hold it tight with your thumb.

colors during the Chinese New Year. Black and white colors are unlucky colors that usually appear at

Second, pick up second chopsticks, do the same thing but out your thumb over to the second one. Third,

funerals.

narrow the tips of the chopstick and prepare to grab food with a 45-degree angle.

“Chinese believe in harmony and balance. Therefore, even numbers are preferred over odd num-

In Hong Kong, people often use chopsticks and soupspoons for dinner. First, pick up the first

When you are done with dinner always place them on the chopstick rest or lay it down in front of

bers. Number 2 represents harmony, and number 6 success. The pronunciation of number 9 sounds

you. Never stick chopsticks into food especially rice. Also, don’t pick up a lot of food at one time. Finish

similar to the word for permanence.”5 Number 8 refers to prosperity. Number 4 means death in Chinese

your plate before you grab more food. Always use a public pair of chopstick to share food with others

because of the pronunciation.

unless you are with your family or someone you know. People will not expect a foreigner to know how to properly use chopsticks but one should just too at least to show your manners.

Gift giving

Gift giving is a big part of Hong Kong culture. This tradition helps businesses to establish and

Table manners

maintain their friendship. It mainly happens on Christmas and Chinese New Year; sometimes it’s

Always wait to be seated because seating etiquette depends on the position from higher rank to

during the Mid Autumn Festival. It all depends on the person. You always give a small gift with both

lower rank. Traditional restaurant tables are usually rounded and can seat about twelve people. During

of your hands on any occasion like the first meeting, going to someone’s home or to invited positive

dinnertime, guest will always be the one to start the dinner before the main host. Feel free to lift your

events. Never give any red or white flowers; blanket, clocks, soft cloth and anything associated with the

bowl with both hands to your mouth for the soup. Be mindful that if you finish your bowl that means

color of white, black, green, blue and the number of 4 to your client. Most of the items are referring to

you will like to have some more. If you are full, it is okay to leave some food in your bowl or plate. Do not

death. Also, don’t be surprised when your business partner refuses your present for the first time. It is

talk with your mouth full. When drinking with your counterpart in general, always fill up your partner’s

just a polite way to act. Mostly, they will accept it after the second or third time of refusal. 5 http://www.chinahighlights.com/travelguide/culture/lucky-numbers-and-colors-in-chinese-culture.htm

cup before you serve yours. It will be polite if you slightly tap your three fingers near the cup on the table

when others are filling your drink on a teacup.

Department of State, as stated within the article “ “One Country, Two Systems’ How Hong Kong remains distinct from China”The framework states within the Hong Kong constitution that Hong Kong will

Alcoholic Beverages

coexist with China for fifty years beginning with 1997. Upon expiration in 2047 the city will “safeguard

rights and freedoms of its residents”.

Dining and entertainment after work with your guest is important and it will help you to relax

the host and build a relationship with your partner. The guest of honor is allowed to make the first

Hong Kong also belongs to the Container Security Initiative and remains an important partner

toast. If you do not drink, you can still accept the toast although refusing to drink is impolite. The bill

to eliminate funding for terrorist activity and combat money laundering. Hong Kong also signed its

will be paid by the host who invited their counterpart. General alcohol beverages are beer, wine, liquor

first tax information Exchange Agreement with the United States in March 2014. This law is in relation

and champagne.

to the 2010 legislation passed to adopt the most recent globally recognized standard for exchange of tax information. The US is currently in the process of finalizing negotiations for an Intergovernmental

Appropriate conversation subjects

Agreement under the United States Foreign Account Tax Compliance Act (TATCA)

Maintain a good conversation with your counterpart with four elements. Think deeply before

you speak it out, pay attention to the person’s facial movement that you are interacting with, be a good

Part 2: Laws of the United States that Affect the Importation of the Products

listener and do not interrupt his or her sentences and lastly, make eye contact during the conversation.

The following information was taken from the cpsc.gov article in relation to commercial importers laws

Do not talk too much because they might think you are taking over the conversation. Keep the subject

to follow when importing.

universal, such as music, performance, news event, technology, hobby and travel.

Entry of Goods When a shipment reaches the United States, the importer of record (i.e., the owner, purchaser, or

Topics to avoid

licensed customs broker designated by the owner, purchaser, or consignee) will file entry documents for

the goods with the port director at the goods’ port of entry. Imported goods are not legally entered until

Try to avoid topics, which lead you to disagreement or offensiveness such as politics, money,

religion, health, relationships or ages as well as gossip, racial, sexual topics or social problems. Step-4: Importing Trade Agreements, Laws, and Policies

Part 1: Trade Agreements Specific to their Country in Dealings with the United States US and Hong Kong Relations According to the US Department of State, Hong Kong is a customs territory and economic entity separate from the rest of China and is able to enter into international agreements on its own behalf in commercial and economic matters. The U.S.-Hong Kong Policy Act of 1992 is grounded in the determination to promote Hong Kong’s prosperity, autonomy, and way of life.

The US supports Hong Kong’s autonomy under the “One Country, Two Systems” framework by

concluding and implementing bilateral agreements by promoting trade and agreement; broadening law enforcement cooperation; bolstering educational, academic and cultural links, as stated by the U.S,

after the shipment has arrived within the port of entry, delivery of the merchandise has been authorized by CBP, and estimated duties have been paid. It is the importer of record’s responsibility to arrange for examination and release of the goods. Pursuant to 19 U.S.C. 1484, the importer of record must use reasonable care in making entry. Informed Compliance

Invoices A commercial invoice, signed by the seller or shipper, or his agent, is acceptable for CBP purposes if it is prepared in accordance with Section 141.86 through 141.89 of the CBP Regulations, and in the manner customary for a commercial transaction involving goods of the kind covered by the invoice. Importers and brokers participating in the Automated Broker Interface may elect to transmit invoice data via the Automated Invoice Interface or EDIFACT and eliminate the paper document. The invoice must provide

the following information, as required by the Tariff Act:

to the Harmonized Tariff Schedule of the United States

The port of entry to which the merchandise is destined,

Rules of Origin

If merchandise is sold or agreed to be sold, the time, place, and names of buyer and seller; if consigned, the time and origin of shipment, and names of shipper and receiver, A detailed description of the merchandise, including the name by which each item is known, the grade

Commercial shipments from designated beneficiary countries that require formal entry may make a claim for preferential tariff treatment under ATPA/ATPDEA by entering the letter â&#x20AC;&#x153;Jâ&#x20AC;? on CBP Form 7501 (the entry summary) as a prefix to the appropriate tariff schedule number.

or quality, and the marks, numbers, and symbols under which it is sold by the seller or manufacturer to

Classification and Value

the trade in the country of exportation, together with the marks and numbers of the packages in which

Section 637 of the Customs Modernization Act imposes the requirement that importers exercise

the merchandise is packed,

reasonable care when classifying and appraising merchandise.

The quantities in weights and measures,

There were no specific regulations in relation to our specified handbagâ&#x20AC;&#x2122;s fiber makeup of Saffiano leather

If sold or agreed to be sold, the purchase price of each item in the currency of the sale,

which is just a treated leather made of cow hide to give it the grainy texture and finish that is known for

If the merchandise is shipped for consignment, the value of each item in the currency in which

its durability.

the transactions are usually made, or, in the absence of such value, the price in such currency that the manufacturer, seller, shipper, or owner would have received, or was willing to receive, for such merchandise if sold in the ordinary course of trade and in the usual wholesale quantities in the country of exportation, The kind of currency, All charges upon the merchandise, itemized by name and amount including freight, insurance, commission, cases, containers, coverings, and cost of packing; and, if not included above, all charges, costs, and expenses incurred in bringing the merchandise from alongside the carrier at the port of exportation in the country of exportation and placing it alongside the carrier at the first U.S. port of entry. The cost of packing, cases, containers, and inland freight to the port of exportation need not be itemized by amount if included in the invoice price and so identified. Where the required information does not appear on the invoice as originally prepared, it shall be shown on an attachment to the invoice, All rebates, drawbacks, and bounties, separately itemized, allowed upon the exportation of the merchandise, The country of origin, All goods or services furnished for the production of the merchandise not included in the invoice price. Assessments of Duties All goods imported into the United States are subject to a duty or duty free entry that is in accordance

Step-5: Classifying the Import 4202.21.9000

Cost Sheet Style # pxru4423 Season: F/W 2014

Size: One Size Color: Dynasty Red Description: CEDAR STREET MEDIUM HARMONY

Component Costs:

Yds/Qty

Crosshatched Leather Custom woven caroleena spade dot lining

Unit Price 1.5 1

Trims Golden Zipper Buckled Shoulder straps Zip kate spade new york gold embossed signature with stud CMT Cost

$Amt

$9.00 $2.00

$13.50 $2.00

Total Fabric Cost

$15.50

2 $2.00 4 $2.50 1 $3.35 1 $0.40 Total Trim Cost

$4.00 $10.00 $3.35 $0.40 $17.35

Grading Marking Cutting Thread Sewing Top-‐stitching

1 1 1 1 1 1

$0.80 $0.40 $2.00 $1.15 $2.30 $0.25

DustBag & Tag

$1.75

Total Labor Cost

$8.65

1 $0.40 1 $0.10 1 $0.25 1 $0.15 Total Packaging Total cost

$0.40 $0.10 $0.25 $0.15 $0.90 $42.40

Packaging Materials Carton Full Stuff Package Bag Polybag

Wholesale Price Wolesale Margin (40%) Retail Price Retail Margin 80%

Measurement: 12.5''H x 13.3''W x 6.6''D, drop length: 9'' Front Sketch

$59.36 $16.96 $298.00 $238.40

Cost Sheet Style # pxru4622 Season: F/W 2014

Size: One Size Color: Off Shore Description: CEDAR STREET ELISSA

Component Costs:

cost sheet

Crosshatched Leather Custom woven caroleena spade dot lining Trims Snap closure Zip Golden Zipper Buckled Shoulder straps kate spade new york gold embossed signature with stud CMT Cost

Yds/Qty

Measurement: 10.5''H x 15''W x 6''D, drop length: 9'' Front Sketch

Unit Price 1.5 1

$Amt

$9.00 $2.00

$13.50 $2.00

Total Fabric Cost

$15.50

1 $1.00 1 $2.00 2 $2.00 4 $2.50 1 $0.40 Total Trim Cost

$2.00 $2.00 $4.00 $10.00 $0.40 $18.40

Grading Marking Cutting Thread Sewing Top-‐stitching

1 1 1 1 1 1

$0.80 $0.40 $2.00 $1.15 $2.35 $0.30

DustBag & Tag

$1.75

Total Labor Cost

$8.75

Packaging Materials Carton Return Slip Pakaging Bag Polybag

Wholesale Price Wolesale Margin (40%) Retail Price Retail Margin (80%)

1 1 1 1

$0.40 $0.14 $0.25 $0.15

$0.40 0.14 $0.25 $0.15

Total Packaging Total cost

$0.94 $43.59 $61.03 $17.44 $368.00 $294.40

Step-7: Shipping Route

Part 1: Ocean Freight A: type of box used- cardboard carton (single wall corrugated) B. Number of Case Packs (boxes)-111 boxes C: Type of Container-Dry cargo container D: Space needed in container-2385 Cubic feet (39’x7’x7’) E. Cost to ship the merchandise: Hong Kong to New Jersey $3406.18-3764.72 plus duty of 26.82

Part 2: N/A

Part 3 A. shipping- according to searates.com, it will take about 33 days for our handbags to reach the Newark terminal from the Hong Kong terminal. This is because the sea freight will travel through the Panama Canal. The distance is 20582.51km terminal. Once it reaches the terminal in Newark, we will have the products driven by truck to the Kate Spade headquarters in North Bergen, NJ which is less than an hour away. B. N/A

Newark, NJ

Hong Kong, China

importer’s documents

Kate Spade & Company 5901 West Side Avenue North Bergen, NJ 07047, U.S.A

FABRIC DETAIL SHEET COTTON [ ]

MAN-MADE FIBER [ ] YARN [ ]

SILK [ ] WOOL [ ]

VEGATABLE [

]

The following information is necessary to properly and completely classify all fabrics for statistical and quota purposes. 1. What is fabric composition by weight? ____________________________ 2. What is the length and width of the fabric? ___ L x ___ W 3. Total number of single ends per square centimeter: __________________ a. # of single ends in warp ____________ b. # of single ends in filling ____________ 4. Weight of fabric in grams per square meter: ________________________ 5. Average yarn number: _________________________ Threads per square centimeter x 100 = AYN grams per square yard 6. Is Fabricâ&#x20AC;Ś a. [ ] b. [ ] c. [ ] d. [ ] e. [ ]

grey (greige) bleached (including white) dyed (piece dyed or solid yard dyed- same color both directions) yarns of different colors (yard dyed- strip, plaid or check) or printed? _________________________________________

7. Indicate type of weave: _____________________________________ a. [ ] plain (1x1 construction) including poplin print cloth, sheeting, voile, cheesecloth or plain weave ducks. b. [ ] twill weave 1. [ ] blue denim 2. [ ] 3 or 4 thread twill or 3. [ ] other twill ___________ c. [ ] satin or sateen d. [ ] other weave 1. [ ] oxford 2. [ ] dobby or jacquard 3. [ ] duck or 4. [ ] other _______________ 8. Are yarns single or plied? _______ If plied - which? __________________ 9. Width of fabric in centimeters? ______________________ 10. Is fabric napped? ____________

Are yarns combed? __________

11. What is the Name and full address of the manufacturer?

__________________________________________________________________________________ ____________________________________________________________________

Pt Trinunggal Komara Jl Kh Zainul Arifin No 30c-D Tanah Sereal Tambora ld 11210 Jakarta

Kate Spade & Company 5901 West Side Avenue North Bergen NJ 07047, U.S.A Carmichael Internation Service 533 Glendale Blvd, LA, CA 90026-5097, U.S.A Jakarta

freight carrierâ&#x20AC;&#x2122;s documents

SAMPLE CERTIFICATE OF LIABILITY INSURANCE PRODUCER

Kate Spade & Company 5901 West Side Avenue, North Bregen NJ 07047, U.S.A

DATE (MM/DD/YY)

THIS CERTIFICATE IS ISSUED AS A MATTER OF INFORMATION ONLY AND CONFERS NO RIGHTS UPON THE CERTIFICATE HOLDER. THIS CERTIFICATE DOES NOT AMEND, EXTEND OR ALTER THE COVERAGE AFFORDED BY THE POLICIES BELOW. COMPANIES AFFORDING COVERAGE COMPANY A

INSURANCE AGENT OR BROKER

INSURED

COMPANY B

INSURANCE COMPANY

COMPANY C

SUBCONTRACTOR

COMPANY D

COVERAGES THE POLICIES OF INSURANCE LISTED BELOW HAVE BEEN ISSUED TO THE INSURED NAMED ABOVE FOR THE POLICY PERIOD INDICATED, NOTWITHSTANDING ANY REQUIREMENT, TERM OR CONDITION OF ANY CONTRACT OR OTHER DOCUMENT WITH RESPECT TO WHICH THIS CERTIFICATE MAY BE ISSUED OR MAY PERTAIN, THE INSURANCE AFFORDED BY THE POLICIES DESCRIBED HERIN IS SUBJECT TO ALL THE TERMS, EXCLUSIONS AND CONDITIONS OF SUCH POLICIES, AGGREGATE LIMITS SHOWN MAY HAVE BEEN REDUCED BY PAID CLAIMS. CO LTR

TYPE OF INSURANCE

POLICY NUMBER

POLICY EFFECTIVE DATE (MM/DD/YY)

GENERAL LIABILITY

COMMERCIAL GENERAL LIABILITY CLAIMS MADE

OCCUR

OWNER’S & CONTRACTORS PROT

Contractual Liability

AUTOMOBILE LIABILITY ANY AUTOS

$ 2,000,000

PRODUCTS-COMP/OP AGG

$ 2,000,000

PERSONAL&ADV INJURY

$ 1,000,000

EACH OCCURANCE

$ 1,000,000

FIRE DAMAGE (Any one fire)

$ N/A

MED EXP (Any one person)

$ N/A

COMBINED SINGLE LIMIT

$ N/A $ N/A

(Per person)

SCHEDULED AUTOS

BODILY INJURY

$ N/A

PROPERTY DAMAGE

$ N/A

EACH OCCURANCE

$ N/A

AGGREGATE

$ N/A

(Per accident)

HIRED AUTOS NON-OWNED AUTOS

EXCESS LIABILITY B

GENERAL AGGREGATE

BODILY INJURY

ALL OWNED AUTOS

LIMITS

UMBRELLA FORM

OTHER THAN UMBRELLA FORM

WORKER’S COMPENSATION AND EMPLOYER’S LIABILITY

OTHER

EL EACH ACCIDENT

$ 100,000

INCL

EL DISEASE – POLICY LIMIT

$ 500,000

EXCL

EL DISEASE – EA EMPLOYEE

$ 100,000

B THE PROPRIETOR/ PARTNERS/EXECUTIVE OFFICERS ARE:

WC SATUTORY LIMITS

DESCRIPTION OF OPERATIONS/LOCATIONS/VEHICLES/SPECIAL ITEMS State of Michigan, its departments, divisions, agencies, offices, commissions, officers, employees and agents, and Acro Service Corp., its respective directors, officers, employees and agents are listed as Additional Insured on all such policies, except Worker’s Compensation. Insurance coverage is considered primary as respects the interest of Acro Service Corp. and State of Michigan and is not contributory with any insurance that Acro Service Corp. and State of Michigan may carry. In all policies, including Worker’s Compensation, a Waiver of Subrogation is included. In the case of claims-made Commercial General Liability policies, Insured has secured tail coverage for at least three (3) years following the expiration or termination for any reason of the Subcontract Agreement. CERTIFICATE HOLDER CANCELLATION

Kate Spade & Company 5901 West Side Avenue, North Bergen, NJ 07047, U.S.A

SHOULD ANY OF THE ABOVE POLICIES BE CANCELLED OR MATERIALLY CHANGED BEFORE THE EXPIRATION DATE THEREOF, THE ISSUING COMPANY WILL ENDEAVOR TO MAIL _30_ DAYS (EXCEPT 10 DAYS FOR NON-PAYMENT) WRITTEN NOTICE TO THE CERTIFICATE HOLDER NAMED TO THE LEFT, BUT FAILURE TO MAIL SUCH NOTICE SHALL IMPOSE NO OBILGATION OF ANY KIND UPON THE COMPANY, ITS AGENTS OR REPRESENTATIVES. AUTHORIZED REPRESENTATIVE

ATTACHMENT "B"

TO:

N.J. GLOBAL LOGISTICS DEPT.

ATTN: EMAIL: FAX No.

Maritza Castillo/ Ph: 201 295-6429 Mcastillo@katespade.com 201 295-6302

C.C. ATTN: EMAIL: FAX No. CELL No.

F.P.A. CUSTOMS BROKER INC. Mark Rosen 718 527-2280 EX. 177 MARKR@FPAJFK.COM 718 276-3345 917 748-0664

ATTACHMENT "C"

DATE TO:

N.J. GLOBAL LOGISTICS DEPT.

ATTN: EMAIL: FAX No.

Maritza Castillo/ Ph: 201 295-6429 Mcastillo@katespade.com 201 295-6302

C.C. ATTN: EMAIL: TEL FAX CELL No.

Carmichael International Services Daney Chantin DaneyC@Carmnet.com (213) 353-0810 Ext. 1500 (213) 353-0095 (818) 618-5081

DATE

FROM:

Passenger's Name

(List Name of ALL passengers traveling)

Note: If more than one passenger accompanying shipment, for efficient customs clearance all invoices should be declare under (1) passenger's name only.

Passenger's Cell #:

(

)

(

Airline & Flight #

Date & Place of Departure

Date & Time of Arrival

J.F.K. Airport

LAX Airport

Other Area

Please Explain

F.P.A. Customs Broker Requested YES NO JT TRUCKING YES

Other Area EXPLAIN

NO EXPLAIN Note: Passengers will not be allowed to travel on company truck

Please Explain

Carmichael Customs Broker Requested YES NO CR TRUCKING YES

Commercial Invoice Attached (Please List Invoice #)

Total number of Suitcase containing samples:

Delivery Address of the suitcases: ATTN:

IMPORTANT NOTE:

EXPLAIN

NO EXPLAIN Note: Passengers will not be allowed to travel on company truck

Commercial Invoice Attached (Please List Invoice #)

If flights are delayed or arrangement are changed, Corporate Compliance Department & Broker must be advised immediately. Failure to comply with this request will result in additional charges (Brokers's fees, etc.) that will be applied to the division.

)

Kate Spade & Company 5901 West Side Avenue North Bergen, NJ 07047, U.S.A

manufacturerâ&#x20AC;&#x2122;s documents

PACKING LIST

Place and Date of Shipment

To Gentlemen: Under your Order No. ___________________________________________________________ the material listed below

was shipped

via

Shipment consists of:

Marks

Cases

Packages

Crates

Cartons

Bbls.

Drums

Reels * LEGAL WEIGHT IS WEIGHT OF ARTICLE PLUS PAPER, BOX, BOTTLE, ETC., CONTAINING THE ARTICLE AS USUALLY CARRIED IN STOCK.

PACKAGE NUMBER

WEIGHTS IN LBS. or KILOS GROSS WEIGHT EACH

*LEGAL WEIGHT EACH

Form No. 30-036 Printed and Sold by

NET WEIGHT EACH

DIMENSIONS HEIGHT

WIDTH

LENGTH

201 Circle Drive N, Suite 104, Piscataway, NJ 08854

QUANTITY

(800) 631-3098 www.unzco.com

CLEARLY STATE CONTENTS OF EACH PACKAGE

Kate Spade & Company 5901 West Side Avenue North Bergen, NJ 07047 U.S.A 1-201-867-2733 /1-20129562

banking document

This is a sample irrevocable letter of credit that must be prepared on bank letterhead. DOMINION ENTITIES: Dominion Virginia Power / Dominion North Carolina Power / Dominion East Ohio / Dominion Hope

IRREVOCABLE STANDBY LETTER OF CREDIT NO. ______________

DATE OF ISSUE:

EXPIRATION DATE: (2 YEARS)

ISSUING BANK:

AMOUNT:

APPLICANT: BENEFICIARY:

Appropriate ‘Dominion’ Entity Name (listed above) 701 E. Cary St. Richmond, VA 23219 (Do not use the PO BOX address)

We hereby issue this irrevocable standby letter of credit in your _________ (Beneficiary’s) favor, which is available against your drafts at sight drawn on ____________ (Bank) bearing the clause: “Drawn under _____________(Bank) irrevocable standby letter of credit number _______, accompanied by the following documents: Your signed declaration addressed to our counters ___________(Bank name and address) stating: “The amount of the drawing under this credit represents funds due from and remaining unpaid for thirty days by ___________(Applicant) in that payment has not been effected as per the credit terms of the account established for_________(Applicant). Copy of unpaid invoices or other business records evidencing the debt. Drafts drawn under this irrevocable standby letter of credit must be accompanied by the original irrevocable standby letter of credit. We hereby undertake to honor all drafts drawn under and in compliance with the terms of this irrevocable standby letter of credit presented to us by the beneficiary.

___________________________ Authorized Signature

October 2014

Bibliography Code of ethics and business practices - Kate Spade (p. 10, Rep.). (n.d.). North Bergen, NJ: Kate Spade. doi: file:///Users/tzjany/Downloads/KS&C%20Code%20of%20Ethics%20Manual%20(1). pdf Doing Business in Hong Kong. (2014, August 26). Retrieved November 5, 2014, from export.gov/hongkong/doingbusinessinhongkong/index.asp Hong Kong: Fact Sheet (Rep.). (n.d.). doi: docs/population.pdf

http://www.

http://www.gov.hk/en/about/abouthk/factsheets/

Lucky Numbers and Colors in Chinese Culture. (n.d.). Retrieved November 5, 2014, from http://www.chinahighlights.com/travelguide/culture/lucky-numbers-and-colors-in- chinese-culture.htm THE HOFSTEDE CENTRE. (n.d.). Retrieved November 5, 2014, from http://geert- hofstede. com/hong-kong.html United States, International Trade Administration, Export. (2014, August 26). Export.gov. Retrieved November 5, 2014, from http://www.export.gov/hongkong/doingbusinessinhongkong/index.asp References HK Government: http://www.gov.hk/en/residents/ HKTDC: http://www.hktdc.com/en-buyer/ CIA: https://www.cia.gov/library/publications/the-world-factbook/fields/2111.html HK-TID: http://www.tid.gov.hk/english/import_export/textiles/textiles_tran/textiles_tran_1.html Kwintessential: http://www.kwintessential.co.uk/resources/global-etiquette/hongkong-country-profile.html http://www.ediplomat.com/np/cultural_etiquette/ce_hk.htm http://instruction2.mtsac.edu/rjagodka/BUSM_51_Project/Negotiating/HongKong.pdf http://www.iorworld.com/hong-kong-pages-489.php Searates.com Metricconversion.org Geodiswilon.com Portal.katespadeconnect.com Evergreenmarinecorp.com Timehop.com Panjva.com Cpsc.gov article “A guide for Commercial Importers” “One Country, Two Systems’: How Hong Kong remains distinct from China”