Table of Contents
Mission Statement . . . . . . . . Product & Logistics . . . . . . . . Code of Conduct . . . . . . . . Internal monitors . . . . . . . . External Monitors . . . . . . . . Target Market . . . . . . . . Country Analysis . . . . . . . . Supplier Analysis . . . . . . . . Costing . . . . . . . . Sales Forecast . . . . . . . . Unit Breakdown . . . . . . . . Tech Packs . . . . . . . . Conclusion . . . . . . . .
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Mission Statement Brooklyn for Kids exists to provide parents with the most comfortable, stylish apparel option of the highest quality for their children that will allow them to embrace the world while looking great.
Vision Statement Just as children grow, Brooklyn for Kids looks to grow as a company. In the future, we envision a brand with four pillars: girls, boys, home, and parent-and-me.
Value Statement Brooklyn for Kids full-heartedly believes in the value of childhood. In everything that we do, we seek to support the growth and development of children. We seek to provide children with fashionable clothing that still functionally allows them to be kids.
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Product & Logistics Product Brooklyn for Kids will produce a clothing line for young girls that mimics the apparel that a stylish mother would wear herself. We believe children should have the opportunity to express their style just like their role models. Our clothing is both stylish and comfortable and made with quality fabrics. Our current line features casual apparel for young girls with a price range of $38-68. In the future, Brooklyn for Kids will like to expand into boys clothing, children’s plus and mommy and me collections. Location Our product would be sold at our located in Brooklyn, New York as well as through our website. Our store would focus on touch to allow both the parents and children to have a sensory experience. The store would also provide healthy snack for children to stay energized. Transparency Transparency is very important to us so on our website and on ipads in our store we would include detailed product information such as: fabric contents and safety, factory information, and manufacturing energy and water consumption. Customer Service The customer experience is very important to Brooklyn for Kids. Employees would not only be well informed on the products and manufacturing processes but they will all be trained on working with children and special needs children.
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Code of Conduct Brooklyn for Kids takes a full responsibility in this Terms of Engagement to source goods with a highly ethical standard, that is also legal in respect to the governing law. We hold our vendors and partners to this same standard and expect them to fully comply with the following policies in regard to their practices. The following policies are that which our partners must comply to these minimum requirements in order to remain in legal compliance with Brooklyn for Kids. We believe in achieving environmentally friendly manufacturing as this is an extremely important standard in the modern world of fashion in addition to these socially responsible requirements. Non Discriminatory Policy Vendors will be employed on the basis of their ability to do the job, without regard or discrimination to their gender, age, religion, marital status, race, sexual orientation, disability, disease, nationality, pregnancy, trade union, or political affiliation. Harassment or Abuse 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 language or undesired physical contact. If a situation comes to attention regarding abuse, there will be swift action to prevent any further abuse or harassment. Working Age Vendors shall not employ any children, also known as a person less than 15 years old. Brooklyn for Kids’ vendors will be encouraged to create a workplace that is lawful for apprenticeship programs that meet our minimum age standard of 15 years old. Sourcing Vendors must be sure that the factories they work with source raw materials that are used in our products which are only from suppliers who comply with all applicable laws, including the Brooklyn for Kids’ Monitoring Standards, these Terms of Engagement for the code of conduct, and the current and relative laws regarding slavery and human trafficking. 5
Fair Treatment Brooklyn for Kids requires vendors to treat all workers fairly and with respect as well as the dignity they deserve. Voluntary Labor Within our vendors work place, all work should be based on a voluntary basis, and not performed under threat of penalty, coercion or corporal punishment. No employee under our vendors should feel forced by any means to work for their employer. Concern for the Environment Vendors must have current environmental licenses in place in order for them to achieve our environmental standards. They must comply with all environmental laws, regulations and standards applicable to their industry and as high of a standard as is possible for their country of industry. Safe Place to Work Brooklyn for Kids maintains a safe, clean, healthy, and productive environment for its workers and expects its vendors to mirror our work environment as they are an extension of our brand. In order to prevent any harm that targets the employee health, safety, and well being, preventative measures, systems, protections and training must be put in place for our vendors. Freedom of Association & Right to Organize Brooklyn for Kids vendors must respect the right of workers to have freedom of association and collective bargaining, as well as allowing the right of workers to form unions. Vendors must allow union organizers free access to workers. Wages Vendors will set worker wages and overtime pay in compliance with all applicable laws and regulations regarding pay for manufacturers. Employee compensation, meaning wages, overtime pay, benefits, and paid leave, must meet or exceed minimum legal requirements, industry standards, and collective bargaining agreements. Working Hours Working hours for those employed by Brooklyn for Kids vendors should not exceed 60 hours per week. All overtime must be voluntary, mutually agreed upon, and compensated at a premium rate. Workers shall be given the minimum of 1 rest day in any given 7 day work period.
Non Compliance If any of our factories are found to not be adhering to our code of conduct and/or not meeting our expected level of standards, immediate action will be taken to correct the problem and to realign the factory with our code of conduct. We prefer to correct the problems within our factories, rather than terminating the relationship. We believe that by correcting the underlying issue, we are preventing further hardship for the workers. If we were to terminate the relationship, the mistreatment would be allowed to continue. However, if the supplier fails to demonstrate improvement after a 6 month period, we have the right to terminate the relationship with that supplier.
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Code of Conduct
Health and Safety Factory management has the ultimate responsibility to provide a safe and healthy work environment for its workers, and to manufacture a product that is safe for consumers and the environment. Therefore, it is essential that factory management fulfills these responsibilities by establishing the appropriate documentation in the form of relevant policies, procedures, plans and instructions . Fire presents the greatest risk for loss of life and the destruction of property. The factory must have a fire safety and emergency preparedness plan in place, and all workers must be aware of their respective roles in the plan through training and drills. It is essential that all workers can quickly and easily evacuate their work areas and exit the building in the event of an emergency. Building construction, and the arrangement of equipment, utilities, furniture, etc. within the building spaces, must be strictly in accordance with fire codes and meet health and safety regulations and guidelines. The number and size of stairways and exits must be adequate for the occupancy load of the various sections of a factory building. Maintaining records of worker injuries and accidents is essential if future injuries and accidents are to be prevented and for legal liabilities to be managed. Accident investigation and the maintenance of an injury log are important elements of an effective H&S and environmental management system.
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Internal Monitors
Employee surveys Surveys will be anonymous and will help to reflect on the conditions of the workers and will allow them to express any concerns without fear of repercussion. These surveys will be conducted by one of our reps and sent directly to the Brooklyn for Kids corporate office. This will prevent any cover ups by factory management. Surprise Audits Brooklyn for Kids will conduct internal surprise audits to attempt to experience and evaluate the day to day operations of the factory without any preparation. Supplier Training Program This program outlines our expectations and provides specific guidelines on how to best address concerns in the following areas: compensation and benefits, employee documentation and health and safety. Vendor scorecard All factories must be inspected within one year. A vendor scorecard will be used to rate vendors based on: ship rate, fit rate, response rate, quality lab dip submits, cleanliness of facilities, productivity, scrap amounts and energy consumption Vendors will receive rating of A, B, C, D or F based on their inspections. The companies that receive the highest scores at the end of the year will receive our supplier of the year award, to be displayed within the factory. We will also have quarterly awards to be given out to promote compliance and efficiency throughout the year. Additionally, Merchandising, Sourcing and Supply Chain teams are trained on our social responsibility program to enhance program awareness and foster more active engagement.
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External Monitors
Certifications We only wish to manufacture with companies who have been certified by WRAP or Intertek. We also wish to use suppliers that have been qualified by Intertek’s The Mill Qualification Program (MQP) and The Supplier Qualification Program (SQP). These external monitors follow the ethics and guidelines that we wish to adhere to as a company. We also are seeking Intertek certifications for textile certification, chemical certification scheme, and eco-certification to ensure that our products have a low environmental impact and adhere to current regulation requirements. WRAP (Worldwide Responsible Accreditation Production) WRAP works to make sure factories are being compliant with codes. Intertek covers: softlines testing, textile certification (chemical certification scheme and eco-certification), textile and apparel inspection, The Mill Qualification Program (MQP), Supplier Qualification Program (SQP) and Workplace Conditions Assessment (WCA) Training WRAP and Intertek provide training programs for our internal monitoring. Providing training from external monitors will ensure that our internal monitoring will align with our brand’s code of conduct.
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Target Market
Demographics Mothers and some fathers ages 25-45 Girls ages 2-7 Live in urban areas Family income 150,000 + Parent Psychographics Family and friends are a priority Want friendly communities Value consistency and stability Fully scheduled, goal oriented and hard working Financially established Buy proven products Trend and value driven Enjoy technology and learning new things Daughter Psychographics Curious and friendly Creative, enjoys experimenting Confident and talkative Loves dressing up Values friends and family
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Clara
Age: 35 Occupation: Stay at home mom Location: Charlotte, NC Education: Bachelor Degree from Appalachian State University Household Income: $150,000 Personality: Bubbly, organized, kind, fashion forward Hobbies: Doing DIY projects, shopping, yoga, going to brunch with friends, going to the park with her daughter Shops at: Nordstrom, Carter’s, Neiman Marcus, Kate Spade Favorite social media: Instagram
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Vivienne
Age: 4 Location: New York, NY Education: Preschool Diploma Household Income: $170,000 Personality: Happy, interested in everything, creative, copycat, sassy, energetic Hobbies: Doing crafts with her mom, trying on mommy’s clothes, playing dolls, painting Shops at: Bloomingdales, Target, Toys R Us, Children’s Boutiques
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Country Analysis Brooklyn for Kids is looking to source from countries that will have an array of factories that follow our Code of Conduct. We also want to source from a factory that has high sustainability standards. The three countries chosen were those that appeared to have the best selections for children’s wear, sustainability, and proximity depending on the country. The countries that were selected through this process are Cambodia, Mexico, and Sri Lanka. Cambodia is well known for exporting knitted & woven cotton & synthetics. Sri Lanka is known to export swimwear, intimate wear, and children’s wear. Mexico mostly exports denim, synthetic & artificial fibers, and children’s wear. 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 one another.
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Cambodia
Location: Southern tip of Asian continent Sustainability: Not interested in sustainability Fair Labor Laws: Labor right laws are not enforced properly Technology: Nonexistent, far below international standards Trade Agreements: None with US Cost: Shipping Cost- Sihanoukville to Los Angeles $4,569 - $6,212 / 38 - 46 days Labor Cost- $140 USD per month
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Mexico
Location: Latin America, between North America & Central America Sustainability: Not interested in sustainability Fair Labor Laws: Fair Labor Standards Act (FLSA) put in place in 1938 Technology: Relatively advanced, constantly updating technologies in factories to compete with other developing countries Trade Agreements: NAFTA Shipping Cost: Manzanillo to Los Angeles $380.68 - $420.75 / 12 days Labor Cost: $118 USD per month
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Sri Lanka
Location: Southern Asia, on southeast coast of India Sustainability: Progressive in sustainability, many companies are WRAP certified with Gold & Silver certifications, & LEED certified by the Green Building Council Fair Labor Laws: No child labor, low discrimination of employees, fair wages, no sweatshops Technology: Advanced in relation to apparel industry, such as wearable technology & e-textiles Trade Agreements: None with US, Trade & Investment Framework Agreement, Joint Action Plan to Boost Trade & Investment Shipping Cost: Colombo to Los Angeles $3,142.65 - $3,473.46 / 35-49 days Labor Cost: $70.75 USD per month
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Supplier Analysis The three suppliers that Brooklyn for Kids has selected to are the following: Alcatexil from Mexico, Unilak Fashion from Sri Lanka, and Chu Hsing Garment from Cambodia. Alcatexil is known for their children’s wear in Mexico, as are Unilak Fashion and Chu Hsing, and this was our main priority when searching out suppliers. These chosen suppliers must be able to produce our product, children’s wear, in bulk and at high quality. Each supplier has worked with well known fashion brands such as Carter’s, Ralph Lauren, Ralph Lauren Childrenswear. We also deeply considered the numerous standards that Brooklyn for Kids believes in when searching out these suppliers. Each supplier must follow as closely as possible to our Code of Conducts. If a supplier falls too far from this code they will not be considered for manufacturing. More specifically, we believe that our suppliers should be environmentally conscious, as well as considerate toward their labor force.
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Strategic Conclusion
The country that we have chosen to source from is Sri Lanka. Although this country didn’t receive the highest score on our country ranking, we believe that, since they are more specialized in niche categories, we would receive better quality products. We also saw a trend in many other children’s brands sourcing from this country that had similar products or quality standards to our company. Sri Lanka also had the most stable business, political climates, as well as a well-trained workforce. We chose to source from Unilak Fashions, in Sri Lanka because not only were their sourcing guidelines and beliefs similar to ours, but they also had one of the fastest lead times, quality levels and capacity for production. This factory has been used for other popular children’s wear brands.
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Costing
Style Number: 400001 Retail Price $68 Cost: $23.80
Style Number: 400004 Retail Price $58 Cost: $20.30
Style Number: 400002 Retail Price $38 Cost: $13.30
Style Number: 400003 Retail Price $38 Cost: $13.30
Style Number: 400005 Retail Price $48 Cost: $16.80
Our retail price point is $38-68. We chose to use high quality, mostly organic fabrics with manufacturing that is environmentally friendly and ethically made. With a markup goal of 65%, our full package first cost will have to range from $9.60-20.59. Our duty rate are very high because of the lack of trade agreements with Sri Lanka, but the US does offer tax incentives to companies that manufacture there.
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Sales Forecast
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Unit Breakdown
Tech Pack: Trench Coat
Suggested Fabric: Solid Organic Cotton Twill 100% Organic Cotton
Main Label
SIZE: 4
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Advisory Specs
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Tech Pack: Cowl Neck Pullover
Suggested Fabric: Cotton Jersey Knit 100% Organic Cotton
Main Label
SIZE: 4
27
Advisory Specs
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Tech Pack: Button Up
Suggested Fabric: Rayon Challis 100% Rayon
Main Label
SIZE: 4
29
Advisory Specs
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Tech Pack: Denim Jeans
Suggested Fabric: Blue Solid Denim 100% Organic Cotton
Main Label
SIZE: 4
31
Advisory Specs
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Tech Pack: T-Shirt Dress
Suggested Fabric: Jersey Cotton Knit 100% Organic Cotton
Main Label
SIZE: 4
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Advisory Specs
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Conclusion
As a company, Brooklyn for Kids strives to provide parents with the most stylish, comfortable apparel options that will stand up to the ultimate play date. We chose for our clothing to reflect the sourcing guidelines and code of conduct of our company that correlates directly with the ethics of the families who purchase our clothing. With a 65% markup on every item, our private label collection will be able to maximize our margin and to provide the customer with the highest quality possible. Due to this collection being in stores for an entire year, our brand has decided to create variation in availability of certain items staged at different times throughout the year, whereas other items remain as staples during the expanse of the year. Sri Lanka is one of the prime locations when searching for a supplier of childrenswear. The country is very progressive in their approach to sustainability, certifications, fair labor & wage laws, and low discrimination levels. Although the US does not have any trade agreements with Sri Lanka, many plans are currently being brought forward to make trade even more appealing between the two countries. The selection of a supplier that has WRAP certifications minimizes our risk when doing business internationally. Our selected supplier-- Unilak Fashions-- is a reputable supplier located within Sri Lanka in regard to lead-time, capacity, and their strategic outlook. This supplier specializes in childrenswear, and therefore has a strong ability to produce the garments we require. Although we are currently focused on creating a clothing line for young girls specifically, we have the ability with our chosen supplier to expand into clothing for young boys, children’s plus, and a mommy-and-me collection. 35
Sources WGSN.com panjiva.com unilakfashions.com
Team Jenna Hepp Julie Sampson Savannah Weghorst Whitney Dore
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FASM 420 l Spring 2017 Global Sourcing l Donald Levy