Global Sourcing: Paradox Tech Apparel

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

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BUSINESS OVERVIEW

TARGET CUSTOMER

MICRO A N A LY S I S

COMPANY ETHICS

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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

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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

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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

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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

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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