JUST THE RIGHT AMOUNT.
LAGOM is born to provide wardrobe essentials distinguished by their quality. Satisfying the young professional in search of modern and timeless pieces.
LAGOM aims to be a national leader providing wardrobe essentials distinguished by their superior quality.
Superior Fashion Quality Timeless Wardrobe Essentials Modern and Functional Pieces Top Customer Service Brand Transparency
OPERATIONS
LAGOM is sold online at shoplagom.com Our headquarters, where all corporate and design work happens, are located in 439 Broadway, New York, NY 10012 Our warehouse, where all inventory and shipping operations occur, is located in 1445 Lower Ferry Rd, Ewing, New Jersey
Our current product categories are Coats & Jackets, Skirts, Trousers, and Knitwear Depending on the category our size range varies from XS-XL or 0-14 LAGOM prices vary from $89.00 USD to $275.00 USD
Legal Compliance Human Rights Policy Environmental Commitment Sustainability Commitment Chemical Restrictions Health and Safety Responsible Marketing Animal Welfare Child Labor Forced Labor Human Trafficking and Slavery Recognized Employment Wages, Hours and Home Working Freedom of Association and Collective Bargaining Discrimination, Diversity, and Equality Subcontracting Code of Ethics Community Involvement Philanthropic Activities
Women 28-38 years old, focusing especially on the women on their 30s Middle to Upper-middle class with an income ranging from 80k-120k Single, or starting a marriage/family. Higher education level, currently pursuing a full-time or part-time jobs. Our customer would ideally be more millennial oriented with their spending habits, investing more in experiences and less in clothing. Ideally, they would be conscious of buying fewer clothes with higher quality so that they last longer. We don’t intend to target to any specific religion or ethnicity. Our focused region is the United States focused, urban and suburban areas within heavily populated cities.
LAGOM aims to find and work with the right manufacturers that work under socially responsible conditions, with outstanding quality and ideal seasonal timing.
FALL WINTER 2018-19
Cropped Sweater Cost $24.68 Retail $89.00 USD
Long-Sleeve Sweater Cost $30.90 Retail $125.00 USD
Asymmetrical Skirt Cost $23.62 Retail $115.00 USD
Wide Leg Trousers Cost $34.04 Retail $115.00 USD
Wool Coat Cost $74.39 Retail $275.00 USD
SKU# 001562 11 0601 PANTONE TCX/TPX
SKU# 001552 15 1511 PANTONE TCX/TPX
SKU# 268372 12 4302 PANTONE TCX/TPX
SKU# 370124 16 1345 PANTONE TCX/TPX
SKU# 157923 18 1442 PANTONE TCX/TPX
SKU# 001563 16 1345 PANTONE TCX/TPX
SKU# 001553 18 1442 PANTONE TCX/TPX
SKU# 268373 15 1511 PANTONE TCX/TPX
SKU# 370125 12 4302 PANTONE TCX/TPX
SKU# 157923 18 1442 PANTONE TCX/TPX
MONTHLY LINE PLAN FALL/WINTER 2018-19 SKU# #001562 #001563 #001552 #001553 #157923 #268372 #268373 #370124 #370125
DESCRIPTION CROPPED SWEATER LONG-SLEEVE SWEATER WOOL COAT ASYMMETRICAL SKIRT WIDE LEG TROUSERS
COLOR
AUG
SEP
OCT
NOV
DEC
JAN
11 0601 PANTONE TCX/TPX
450
510
320
370
350
300 300
16 1345 PANTONE TCX/TPX
--
--
350
370
360
15 1511 PANTONE TCX/TPX
500
600
330
390
350
350
18 1442 PANTONE TCX/TPX
--
--
330
400
400
350
18 1442 PANTONE TCX/TPX
250
300
360
500
520
470
12 4302 PANTONE TCX/TPX
450
450
225
220
220
245
12 1511 PANTONE TCX/TPX
--
--
225
220
220
245
16 1245 PANTONE TCX/TPX
500
550
275
275
250
275
12 4302 PANTONE TCX/TPX
--
--
275
275
250
275
TOTAL
AVERAGE
3,680
613
4,000
667
2,400
400
2,720
453
3,200
533
AVERAGE
--
--
430
482
299
336
324
312
--
--
TOTAL
--
--
2,150
2,410
2,690
3,020
2,920
2,810
16,000
--
UNIT BREAKDOWN FALL/WINTER 2018-19
DESCRIPTION
% TO TOTAL
TOTAL UNITS
MONTHLY AVERAGE
RETAIL PER UNIT
TOTAL RETAIL
COST PER UNIT
TOTAL COST
TOTAL MARGIN
MARKUP $
MARKUP %
CROPPED SWEATER
23%
3,680
613
$89.00
$327,520.00
$26.48
$97,446.40
$230,073.60
$62.52
70%
LONG-SLEEVE SWEATER
25%
4,000
667
$125.00
$500,000.00
$30.90
$123,600.00
$376,400.00
$94.10
75%
WOOL COAT
15%
2,400
400
$275.00
$660,000.00
$74.39
$178,536.00
$481,464.00
$200.61
73%
ASYMMETRICAL SKIRT
17%
2,720
453
$115.00
$312,800.00
$23.62
$64,246.40
$248,553.00
$91.38
79%
WIDE LEG TROUSERS
20%
3,200
533
$115.00
$368,000.00
$34.04
$108,928.00
$259,072.00
$80.96
70%
AVERAGE
--
--
--
--
$143.80
--
37.89
--
--
$105.91
73.40%
TOTAL
--
100%
16,000
--
--
$2,168,320.00
--
$572,756.80
$1,595,563.20
--
--
SKU# #001562 #001563 #001552 #001553 #157923 #268372 #268373 #370124 #370125
SKU: #001562, #001563 Cropped Sweater - Target Retail $89.00 Target Cost $26.48 - Target Markup 70% SKU: #001552, #001553 Long-Sleeve Sweater - Target Retail $125.00 Target Cost $30.90 - Target Markup 75% SKU: #268372, #268373 Asymmetrical Skirt - Target Retail $115.00 Target Cost $23.62 - Target Markup 79% SKU: #370124, #370125 Wide Leg Trousers - Target Retail $115.00 Target Cost $34.04 - Target Markup 70% SKU: #157923 Wool Coat - Target Retail $275.00 Target Cost $74.39 - Target Markup 73%
COUNTRY ANALYSIS
Port cost from Ningbo-NY/NJ $1,570-$1,7321in 29 to 34 days. Facts Located in East Asia and shares international land and maritime borders with 20 countries. Made in China 2025: 10-year plan launched in 2015 to modernize factories with advanced manufacturing technologies. Hourly wages are now $3.60. Since 2014 wages have been increasing 11% annually.
Main Apparel Exports 1. Non-Knit Women’s Suits 2. Knit Sweaters 3. Knit Women’s Suits 4. Non-Knit Men’s Suits 5. Knit T-Shirts
Port cost from Hong Kong-NY/NJ $1,732-$1,991 in 33 to 39 days. Facts Located in East Asia and acts as a Special Administrative Region of the People’s Republic of China Hong Kong has been working in cleaning up all waterways by 2020, they have also started to embrace sustainability by investing in greener machinery and technologies Hong Kong tax is low and this remains a pull for business people and businesses from all over the world Minimum wage is HKD$34.5/USD$4.43 per hour
Main Apparel Exports 1. Knit Sweaters 2. Non-Knit Women’s Suits 3. Women’s Undergarments 4. Non-Knit Men’s Suits 5. Knit Women’s Suits
Port cost from Manila-NY/NJ $1,960 - $2,583 in 35 to 42 days. Facts Compound of islands located in Southeast Asia Presents high-skilled labor and abundance natural fibers, they promote green growth and are aiming for a manufacturing innovation ecosystem The minimum wage is equivalent to $6.62 USD per day Trade and Investment Framework Agreement (TIFA) Clothing and Textile Industry Tripartite Council (CTITC)
Main Apparel Exports 1. Knit Women’s Suits 2. Non-Knit Women’s Suits 3. Knit Women’s Shirts 4. Knit Sweaters 5. Knit Women’s Undergarments
COUNTRY RANKING ITEM
HONG KONG
CHINA
PHILIPPINES
BUSINESS CLIMATE
9
8
5
COSTS
3
8
8
GOVERNMENT
8
6
3
LOCATION
8
8
8
RISKS
8
6
5
SOCIAL STABILITY
8
5
4
SOURCING GUIDELINES
7
7
5
TEXTILE INDUSTRY
4
8
6
TRADE AGREEMENTS
9
8
6
TRAINED WORKFORCE
5
6
5
AVERAGE
7
7
6
TOTAL
69
70
55
SUPPLIER SELECTION
The three countries explored offered the best options when it came to experience in apparel manufacturing. When we analyzed materials, resources, cost, and transportation in these countries it matched with the key elements we were looking for. But, at the end to reduce costs in transportation and duties we decided to source only within China, making our sourcing strategy more effective. The suppliers selected and analyzed are specialist in the materials and manufacturing techniques necessary for our collection. They met all location, cost and CSR expectations we had. We also based our criteria of selection looking at past clients, this would help us understand what type of production the factories have experience with.
Located in Linwu City, Ningxia Yinchuan, China This is the world's biggest manufacturer of cashmere products and also purchases the largest volume of cashmere raw material. It is known for its high-quality products and it works with brands such as Uniqlo, Theory, and Talbots. The company complies with local environmental protection control procedures. They have implemented renewable energy technology in their buildings. The company was awarded by the International Association of Textiles Ecological Research and Testing Association. They present a good CSR program. They help within their local communities, provide great insurance for their employees, work with immigrants in need and give education opportunities.
Located in Kwun Tong, Kowloon, Hong Kong. They are Knit-wear manufacturers with more than 40 years of experience, their customers include Nordstrom, JC Penny, and Gap. Known for their high quality and service. They have received several awards for their quality from European, Japanese, and American customers. This manufacturer is compliant with all environmental conservation legislation. They have explored new techniques of dying which reduces waste and heat consumption without harming the ďŹ bers. The company presents a good CSR program focusing on helping the local community and contributing towards education.
This factory is located in Maguyam, Cavite, Philippines but the headquarters of the company are in South Korea. They have factories all over south-eastern Asia. The company specializes in wool and cotton apparel with a very high production quality and standard. Their customers include Banana Republic, Talbots, Tommy HilďŹ ger, Madewell, Karl Lagerfeld. They are the garment manufacturer under the LG group and because of this they have implemented the latest technology in many of their manufacturing processes and they are constantly developing and testing new manufacturing technology. They engage in programs to develop and distribute vaccines, eradicated malnourishment in children, and environmental conservation.
SUPPLIER RANKING ITEM
NINGXIA ZHONGYIN CASHMERE INDUSTRY CO.
SOUTH ASIA TEXTILES LIMITED
FTN GARMENT CORPORATION
ABILITIES
7
7
8
CAPACITY
8
6
6
LEAD TIME
7
6
6
QUALITY
7
7
8
CUSTOMERS
7
7
9
SOURCING GUIDELINES
7
7
8
SERVICES OFFERED
6
5
6
STRATEGIC OUTLOOK
6
6
7
AVERAGE
7
6
7
TOTAL
55
51
58
SOURCING STRATEGY
The main benefit of our overall strategy is that because everything is produced in China, this makes logistics, cost, transportation, and duties less expensive and more effective on our side. Most importantly, all these countries and factories selected fit with the values of LAGOM and our sourcing guidelines. They all maximize our inventories and lead time, but with China, our selected COO everything runs more smoothly. Lead time is a competitive advantage compared to other countries in Asia. With all our pieces being manufactured in China, the logistics and costs become simpler and more efficient.
These suppliers were chosen to minimize risk because of their experience and location, the business of apparel and textile production is well developed in China, even though it has room to grow, it has gained a worldwide reputation. Our selection also maximizes an opportunity to grow further as clients of these manufacturers and through them explore and discover different factories similar to them. Because we decided to work with manufacturers that specialize in warm fabrics, we could continue working with them for future fall/winter lines, but would probably manufacture somewhere else for spring/summer lines.
We are proud to share all LAGOM suppliers and business partners because we know they are the right place to produce our products as best as possible for our clients. All our manufacturers meet the standard legal compliance and adhere to our code of conduct, which guarantees as clean of a supply chain as possible.