Z e n L i , N u p u r M o h a n t y, L eah Je o n, K e lse y Malo n ey FA SM 420 K i mb erl y R a b a na l
01
02
04
05
07
08
BUSINESS OVERVIEW
TARGET CUSTOMER
MICRO A N A LY S I S
COMPANY ETHICS
03
C0O N 6 PRODUCT DETAILS
ASSORTMENT MACRO & COSTING A N A LY S I S
T E0N 9 TS
SOURCING PLAN
QUALITY & PERFORMANCE
01
B U S I N E S S
OVE R VI EW
MISSION At Paradox, our mission is to create technology wearables to disconnect from the digital world and reconnect to the real world.
COMPANY SNAPSHOT
High Tech Outerwear
Nordstrom Partnership
Green Company Values
BUSINESS STRUCTURE Based in Seattle, WA Exclusive Partnership with Nordstrom Up-Front Investment of $150,000 for First Order 3 Year Contract for Exclusivity in Brick-and-Mortar Nordstroms Including MSRP Agreement Design, Manufacturing, Distribution by Paradox E-Commerce at Paradox.com Owned and Operated by Paradox
COMPETITORS
Stone Island
Acronym
Arc’teryx
Fashionable
Trendy Tech
Environmental Ethos
Outerwear Driven by
Integrated
and Functional
Technical Fabrics
Outerwear
Outerwear
MARKET TRENDS People Abandoning Social Media and Deleting Accounts Neo-Luddism ‘Screen Time’: Putting Checks and Time Limits on Phone Use Yondr and Unplugged Festivals Nissan Signal Blocker
02
CO M PA N Y E T H I CS
CODE OF CONDUCT Social
Environmental
Values
• Employee Safety
• Optimal Use of Resources
• Efficiency
• Employee Rights/Benefits
• Environmental Protection
• Holistic Integrity
• Working Against Human
• Sustainable Practices
• Accountability
Trafficking
• Confidentiality
CSR
CORPORATE SOCIAL RESPONSIBILITY
SOCIAL
ENVIRONMENTAL
• Above Average Working Conditions
• Sustainable Manufacturing Practices
• Competitive Pay
• Recycled and Minimalist Packaging
• Opportunities for Growth
• Use of Water-Based Inks and Dyes
• Stringent Rules and Regulations
• Stringent Rules and Regulations
PHIL ANTHROPIC • Sponsoring Trees in the Hoh Rain Forest in Washington • Dollar Donated per Purchase
03
PR O D U CT D E TA I L S
COLLECTION CONCEPT
NASA Contradictions New Frontier Connected Disconnection
RAIN
HOODIE
SKI
PARADOX SKI JACKET DESCRIPTION
DATE
5/15/2019 SIZE RANGE
SEASON
FALL 2019
STYLE
PDX37656 DESIGNER PARADOX SELLING PRICE
FABRIC NAME
SKI TECH PACK
SKI JACKET
GORE-TEX PACLITE ®
FABRIC CONTENT
60
Front
60
Back
13.4c
6.3
Hood Flat EMF Shielding Pocket
$350
100% PTE
49
67
S-M-L
HOW IT WORKS TitanRF Faraday Fabric Specialized Fabric Used to Block Cell Signal Uses High-Shielding Materials: Copper and Nickel Utilized by Military and Law Enforcement Easy to Cut and Sew
HOW IT WORKS Line Pockets of Each Garment Automatically Block Cell Signal No Need to Turn on ‘Airplane Mode’
PACKAGING
HANGTAG
CARE LABEL
04
TA R G E T
CU STO M E R
DEMOGRAPHICS
Both Male and Female Skewing Male 28 - 40 Affluent ‘New Money’ $90k+, Single or $120k+, Married with Kids Lives in Cities like: Seattle, Portland, Denver, San Francisco, Salt Lake City
PSYCHOGRAPHICS
Concerned with Health : Active Craves Practicality as well as Design Tech Savvy Up on Trends Wants a Break from Digital Overstimulation Lives a Progressive Lifestyle, yet Values Traditional Practices
BEHAVIORAL
Partakes in Frequent Outdoor Sports Skiing, Snowboarding, Hiking, Rock Climbing Reads News and Tech Publications Wall Street Journal, WIRED, Re/code Buys the Latest Gadgets Fitbit, Sonos, Nest
POTENTIAL Approximately 310,190 Potential Paradox Customers 10% of 5 Target Cities
05
ASSORTMENT & COSTING
PRICING PLAN
HOODIE
RAIN
SKI
Cost
Cost
Cost
$32.45
$71.50
$105.39
Wholesale
Wholesale
Wholesale
$60.00
$125.00
$175.00
Retail
Retail
$120.00
$250.00
Retail $350.00
Wholesale Markup
Wholesale Markup
Wholesale Markup
45.9%
42.8%
39.8%
Retail Markup
Retail Markup
Retail Markup
72.9%
71.4%
69.9%
ASSORTMENT PLAN
HOODIE
RAIN
SKI
Quantities
Quantities
Quantities
S | 35
S | 20
S | 20
M | 20
M | 15
M | 15
L | 15
L | 15
L | 15
Nordstrom | 350
Nordstrom | 350
Nordstrom | 350
S | 130
S | 130
S | 130
M | 115
M | 110
M | 110
L | 105
L | 110
L | 110
Paradox | 150
Paradox | 150
Paradox | 150
S | 60
S | 60
S | 60
M | 50
M | 45
M | 45
L | 40
L | 45
L | 45
Pop-Up | 75
Pop-Up | 50
Pop-Up | 50
BILL OF MATERIALS
Ski Jacket Description
Color
Vendors
Part #
Material/Composition
Unit of Measurement
Unit Cost
Qty Total Price
Outershell
Multi
Outdoorsky Industrial Corp Ltd
52896
Gore-Tex® Paclite®
Meter
$15.27
3
$45.81
Lining
Black
Outdoorsky Industrial Corp Ltd
27124
100% Recycled Polyester
Meter
$4.36
2
$4.36
Fill
White
Outdoorsky Industrial Corp Ltd
34527
3M™ Thinsulate™ Featherless Insulation
Meter
$5.50
1
$5.50
EMF Blocking Fabric
Silver
F&Z Safety and Protective Textile Co. Ltd
69342
Nickle and Copper Conductive Yarn
Meter
$6.50
0.5
$3.25
Premium YKK Zippers
Black
Outdoorsky Industrial Corp Ltd
47235
Oxidized Metal
Unit
$0.40
4
$1.60
Hook and Loop Strap Fastener
Black
Outdoorsky Industrial Corp Ltd
96323
Polyester/Nylon
Set
$0.20
9
$1.80
Premium Snap Button
Black
Outdoorsky Industrial Corp Ltd
27355
Oxidized Metal
Unit
$0.25
1
$0.25
Snap Fastener
Black
Outdoorsky Industrial Corp Ltd
27356
Oxidized Metal
Set
$0.88
1
$0.88
Logo Embossed Patch
Black
Outdoorsky Industrial Corp Ltd
93553
Rubber
Unit
$0.70
1
$0.70
Sewing Thread
Beige
Outdoorsky Industrial Corp Ltd
72682
Premium Polyester
Meter
$1.00
3
$1.50
Elastic Drawstring
Black
Outdoorsky Industrial Corp Ltd
58423
Polyester and Rubber
Meter
$0.35
0.3
$0.11
Drawstring Stopper
Black
Outdoorsky Industrial Corp Ltd
59612
Plastic
Unit
$0.20
2
$0.40
Neck Tag
Black
Outdoorsky Industrial Corp Ltd
17535
Satin Polyester
Unit
$0.04
1
$0.04
Size Tag
Black
Outdoorsky Industrial Corp Ltd
16325
Satin Polyester
Unit
$0.05
1
$0.05
Care Label
Black
Outdoorsky Industrial Corp Ltd
14351
Satin Polyester
Unit
$0.05
1
$0.05
Fabric
Trims
Total:
$66.30
COST SHEET ESTIMATE
DATE: 5/15/2019 DESCRIPTION: SIZE RANGE: STYLE: SEASON: SELLING PRICE: COO Min HTS 1. MATERIAL Outershell: Gore-Tex® Paclite® Lining: 100% Recycled Polyester Fill: 3M™ Thinsulate™ Featherless Insulation EMF Blocking Pocket TOTAL MATERIALS COST 2. TRIM
Paradox Ski Jacket S-M-L PDX37656 Fall 2019 $350 China 50 6201.93.6000 Unit of Measurement Qty
PRICE
AMOUNT
Meter
3
$15.27
$45.81
Meter
2
$4.36
$4.36
Meter
1
$5.50
$5.50
Meter
0.5
$6.50
$3.25
$58.92) Unit of Measurement QTY
PRICE
AMOUNT
Premium YKK Zippers
Unit
4
$0.40
$1.60
Hook and Loop Strap Fastener
Set
9
$0.20
$1.80
Premium Snap Button
Unit
1
$0.25
$0.25
Snap Fastener
Set
1
$0.88
$0.88
Logo Embossed Patch
Unit
1
$0.70
$0.70
Sewing Thread
Meter
3
$1.00
$3.00
Elastic Drawstring
Meter
0.3
$0.35
$0.11
Drawstring Stopper
Unit
2
$0.20
$0.40
Neck Tag
Unit
1
$0.04
$0.04
Size Tag
Unit
1
$0.05
$0.05
Care Label
Unit
1
$0.05
$0.05
Hangtag
Unit
1
$0.07
$0.07
TOTAL TRIMS COST 3. LABOR Cutting Sewing Grading Marking Quality Check Packaging TOTAL LABOR COST 4. TRANSPORTATION COST Ocean freight Duty TRANSPORTATION COST 5. TOTAL COST 6. WHOLESALE 7. RETAIL PRICE
$8.95 $3.21 $24.63 $0.22 $0.65 $0.86 $0.23 $30 $/Kg
40% Markup 70% Markup
1.5 7.10%
$0.53/kg $0.80 $6.93 $7.73 $105.39 $175 $350
06
M AC R O
A N A LYS I S
C Macro H I Analysis NA POLITICAL Stable Political Influence under Communist Party of China Strained Relationships with Vietnam, Japan, and Philippines Strengthened Economic Relationship with Russia Lack of Political Freedom and Censorship
ECONOMIC Second Largest Economy in the World by Nominal GDP World’s Largest Economy in Terms of Purchasing Power Availability of Cheap Labor, Although Wages on the Rise Trade War with the United States Affecting Imports/Exports
SOCIAL Most Populated Country in the World: 1.4 Billion People Gender Imbalance: More Men than Women Complete Eradication of Poverty by 2020 Reduction of Productive Output, Shortage of Young Workers
TECHNOLOGICAL Home to Tech Giants like Baidu, Alibaba, Tencent Large Number of R&D Institutions Leading New Technology Consistent Growth and Innovation Increased Spread of Entrepreneurship
SUSTAINABILITY Large Impact on Natural Environment Water/Air Pollution, Deforestation, Climate Change, Loss of Biodiversity Numerous Government Environmental Incentives Encouraging Public Participation in Environmental Initiatives
I Macro N DAnalysis IA POLITICAL Democratic Political System Marred by High Levels of Corruption High Tensions with Pakistan Improved Relationships with Neighboring Countries like Nepal, Sri Lanka, Bhutan
ECONOMIC Second Largest Workforce in the World and Growing Stock Market Capitalization has Risen Government Initiated “Make in India” to Incentivize Domestic Investments Agriculture Sector Employs 45% of Population
SOCIAL Second Most Populated Country in the World: 1.27 Billion People Poor Healthcare and Educational Infrastructure Mahatma Gandhi National Rural Employment Guarantee Scheme to Address Rural Unemployment Relatively Low Literacy: 72%
TECHNOLOGICAL R&D Hub Optimizes Technological Developments One of the Most Reputed Space Agencies in the World Prevalent Biotechnology Research and Third Largest Pharma Sector Top Exporter of IT Products
SUSTAINABILITY Aspiring to Meet Sustainable Developmental Goals Investments in Green Tech because of Make in India Initiative Environmental Sustainability Seen as a Challenge
H O N G KMacro O Analysis NG POLITICAL Autonomous Territory and Former British Colony Sizeable Portion of Economic Activity Pays no Taxes Very Limited Press Freedom
ECONOMIC Strategic Location Offers Gateway to Chinese Market China is Hong Kong’s Largest Export and Import Partner Currency Pegged to US Dollar Attractive Port for Overseas Investors
SOCIAL Population: 7.4 Million Primary Language is Cantonese, but 53% Speak English as well Wage Gap and Income Inequality are High
TECHNOLOGICAL Large Amount of Biotech Companies 6.4 Million Internet Users Highly Competitive Technologically
SUSTAINABILITY High Ecological Footprint: Double China’s High Greenhouse Gas Emissions Not Known for Environmental Sustainability
07
M I C R O
A N A LYS I S
OUTDOOR S K Y Micro Analysis Xiamen, China
CONDITIONS Factory Entirely Owned by Outdoorsky Total Transparency of Worker’s Rights Concern for Environment and Responsible Practices
PRODUCTS Extremely Specialized in Technical Performance Outerwear Ability to Integrate RFID Blocking Fabric
QUALITY High Quality Performance Fabrics and Trims Offered Gore-Tex, YKK Zippers, 3M Thinsulate Top-Tier Technical Factory Equipment
TIME Quick Production Times According to Testimonials Strategic Port Location, Xiamen
PRICE Competitive Pricing for High Quality Products Inexpensive Labor in China Outdoorsky Private Label Products Sold for Similar Price as Paradox
C A PA C I T Y A N A LY S I S Located in Fujian, China Total Employees: 51-200 Employees Factory Size: 5,000-10,000 Square Meters Number of Production Lines: 7 Units produced annually: 300,000 pieces Units produced daily: 820 pieces
DHRUV GLOBAL Micro Analysis Dehli, India
CONDITIONS Stringent Worker’s Rights Regulations In Compliance with India’s Environmental Laws
PRODUCTS Known for Well-Made Cotton Garments 47 Customers Low Level of Technical Skill Needed for Hoodie
QUALITY Extremely Stringent Quality Assessments 14 Quality Control Checkpoints From Raw Material to Packaging
TIME Able to Ensure Short Production Timelines 10,000 Exports per Month Provides Nordstrom (our partner) with Garments Quickly
PRICE Competitive Pricing Provides Walmart and K-Mart with Inexpensive Garments Inexpensive Labor in India
C A PA C I T Y A N A LY S I S Located in Haryana, India Total Employees: 3889 Employees Factory Size: 1686 Square Meters Number of Production Units: 4 Units produced annually: 1.8 million pieces Units produced daily: 5000 pieces
E A R T H PMicro AAnalysis CK Irvine, CA
CONDITIONS Above and Beyond Environmental Standards Pride Themselves on Environmentally Conscious Practices
PRODUCTS Post-Consumer Recycled Cardboard 19x12x3 Box | Hoodie and Rain 24x14x4 Box | Ski
QUALITY Samples Offered for Test Quality Reputable Client Base Toms, Nixon, Billabong
TIME Close Proximity to Seattle Truck Transportation Small Quantity Needed
PRICE $.04 per Box | Minimum 500 Box Order Need 525 for Online and Pop-Up Slightly More Expensive due to Environmental Priorities
08
S O U R C I N G PL A N
TIME/ACTION CALENDAR
SAMPLE POP-UP Samples Sold in Paradox Pop-Up Nordstroms Flagship Seattle First Paradox Appearance Goals: • Gain Insight and Feedback from Customers • Make Necessary Changes to the Final Design • Create Hype for the Brand
SOURCING MAP SEAT TLE , WA
IRVINE , CA
DELHI, INDIA
ZHEJAING , CHINA
XIAMEN, CHINA
SHIPPING METHODS Air Shipment for Delivery of Samples
Low Quantity
Quick Delivery
High Quantity
Lower Cost
Fragmented Distribution
Domestic Distribution
Ocean Shipment for Delivery of Final Garments Truck Shipment for Distribution to Nordstroms
SHIPPING DETAILS Air Shipment by DHL Ocean Shipment by COSCO
FOB Destination, Freight Collect, and Allowed:
Buyer Pays Charges
Shipper Adds Freight Costs
Seller Assumes Responsibility Until Delivery
Truck Shipment by FedEx Freight
SHIPPING LABEL
PARADOX
PURHASE ORDER
Address:
Date
8/24/2019
4463 Elliot Avenue
PO # 365-893245
Seattle, WA 98109 Phone: 206-201-3235
PURCHASE ORDER
www.paradoxclo.com Supplier
SHIP TO
(Company name)
Outdoorsky Industrial Corp Ltd
(Name)
(Contact or Department)
Export
(Company Name) Paradox LLC
(Street Address)
11/S BLDG 1, Wuyuan Gulf Business Centre
(Street Address)
4463 Elliot Avenue
(City, St, Zip)
Huli District, Xiamen, Fujian Province, 361009
(City, St, Zip)
Seattle, WA 98109
Phone:
206-201-3235
Phone:
865925926568
Reguisitioner Zen Li
Ship Via Ocean Freight
ITEM #
Zen Li
FOB Point
Shipping Date
Destination DESCRIPTION
QTY
Unit Price
TOTAL
PDX27656
Paradox Hoodie
500
$34.56
$17,280.00
PDX37457
Paradox Rain Jacket
500
$87.63
$43,815.00
PDX47648
Paradox Ski Jacket
500
$105.39
$52,695.00
SUBTOTAL
$113,790.00
Comments or Special Instructions
TAX
Included
1. Please send two copies of your invoice. 2. Enter this order in accordance with the prices, terms, delivery method, and specifications listed above. 3. Please notify us immediately if you are unable to ship as specified 4. If you have any questions about this purchase order, Please contat above information.
SHIPPING
Included
OTHER
N/A
TOTAL
$113,790
09
QUALITY &
PERFORMANCE
QUALITY ASSURANCE Necessary Quality Testing Done by Both Suppliers Upholding the Highest Possible Standard Samples Sent to Resolve Any Potential Quality Issues
QUALITY ASSURANCE MATERIAL & TRIMS INSPECTION
MATERIAL L AB TESTING
END LINE INSPECTION
IN LINE INSPECTION
FINAL APPEARANCE AUDIT
PACKAGING INSPECTION
MARKER CHECKING L AYING CUT TING FUSING BUNDLING
VENDOR PERFORMANCE
Vendor Performance Evaluation Date
5/19/19 Prepared By:
Evaluation #
Sourcing Manager
45
Vendor Information Company Name:
Outdoorsky Industries Ltd.
Company Address:
645, UNIT 5, NO.68 ZHONGLING, RD, HULI DIST, XIAMEN 361009, XIAMEN CN
Email:
manufacturing@outdoorsky.com
Phone Number:
86 (944) 667-9809
Number of Employees:
200
Number of Locations:
3
Vendor Performance Evaluation
Scale: 1 to 10
Additional Notes
Timeliness of Deliveries:
8
Quality of Products:
9 High quality products, exceeded expectations
Technical Proficiency:
9 Helped with technical problems
Ease of Communication:
7
Overall Flexibility:
7
Level of Development Assistance:
9
Competitiveness of Price:
7 Could possibly find a cheaper source
Overall Financial Condition:
8
Company Reputation:
8
Technical Supports Level of Proficiency:
9
Level of Value Acquisition:
9 Technical skills proved to be a big asset
Total:
90 *out of 110
Q UEST I ON S?
BIBLIOGRAPHY
ACRONYM® GmbH. (n.d.). Retrieved November 11, 2018, from https://acrnm.com
Arc’teryx Official Site. (n.d.). Retrieved November 11, 2018, from https://arcteryx.com/home.aspx?country=us&language=en Bartlett, J. (n.d.). Will 2018 be the year of the neo-luddite? Retrieved November 11, 2018, from https://www.theguardian.com/technology/2018/mar/04/will-2018-be- the-year-of-the-neo-luddite Customized, Eco-Friendly Retail Packaging. (n.d.). Retrieved November 11, 2018, from http://www.earthpack.com/ Dhruv Global Ltd. (n.d.). Retrieved November 11, 2018, from https://0-panjiva.com.library.scad.edu/Dhruv-Global-Ltd/28297781 Dhruv Globals Ltd., A Garment Export Company. (n.d.). Retrieved November 11, 2018, from http://www.dhruvglobals.com/index.aspx Dredge, S. (n.d.). Mobile phone addiction? It’s time to take back control. Retrieved November 11, 2018, from https://www.theguardian.com/technology/2018/jan/27/ mobile-phone-addiction-apps-break-the-habit-take-back-control EMF Shielding Fabrics. (n.d.). Retrieved November 11, 2018, from https://www.emfanalysis.com/fabrics/ EMF Shielding Protection Fabrics. (n.d.). Retrieved November 11, 2018, from http://nasafes.com/emf-protection-fabrics-and-shielding-fabric-overview/ GORE-TEX Brand. (n.d.). Retrieved November 11, 2018, from https://www.gore-tex.com/?xcmp=sea_btfl_adwords_0_us_0&gclid=Cj0KCQiAw5_fBRCSARIsAGodhk_ Y9hAyFV1h4OP1YZJpYWqGriIcquA_Wuccb2Y-dsSqO_olV76Y7f4aAkKlEALw_wcB&gclsrc=aw.ds Nissan Signal Shield concept uses 180-year-old invention to tackle smartphone distraction behind the wheel. (n.d.). Retrieved November 11, 2018, from https://uk.nis sannews.com/releases/nissan-signal-shield-concept-uses-180-year-old-invention-to-tackle-smartphone-distraction-behind-the-wheel?lang=en-GB Outdoorsky. (n.d.). Retrieved November 11, 2018, from https://outdoorsky.com/ Outdoorsky Industries Corp. Ltd. (n.d.). Retrieved November 11, 2018, from https://0-panjiva.com.library.scad.edu/Outdoorsky-Industries-Corp-Ltd/27797723 Stone Island Official Site. (n.d.). Retrieved November 11, 2018, from https://www.stoneisland.com/us?gclid=Cj0KCQiAw5_fBRCSARIsAGodhk82ZPjzHMy6c b3O6n-NznsXjhZXUJoK_CjXafy_hBwMcWRpjj3GYFMaAgNtEALw_wcB&tp=117741