Bio •
Billy Reid is an American fashion label and clothing boutique created in 2004
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Billy Reid was raised in Louisiana where his mother owned a women’s boutique
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He studied at The Art Institute of Dallas and begin a four-year career at Saks Fifth Avenue
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Worked in product development with Reebok for six years in L.A., Boston and New York
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He launched his first men’s collection in Spring 1998 named William Reid followed by a women’s collection a few seasons later. His designs lead him to receive the CFDA Best New Menswear Designer award in 2001. After the 9/11 economy, he was forced to close up shop with his business in Spring 2002 and moved to Florence, Alabama.
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He later went on to receive CFDA/Vogue Fashion Fund prize with 11 stores nationwide
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Billy Reid is considered "low-fi southern-bred luxury” men's wear and women's wear designs, footwear and accessories in an ambiance that makes customers feel comfortable and relaxed.
Locations
Atlanta
Austin
Florence
New York
Chicago
D.C.
Product line
Made in U.S
Imported
SWOT analysis Strengths • The name brand is well known in the luxury industry • High quality luxury products for men and women • Their outsource country is Italy, which gives them privilege and add extra value over other brands that might outsource China • Italy's culture is not that different from North American culture Weaknesses • Outsourcing in Italy makes it hard for problems to be solved immediately • Time difference might be challenging for business meetings • The language barrier is something to consider when traveling Opportunities • Italy is a great place to expand on high quality footwear • Billy Reid has the opportunities to expand on a greater scale in leather goods by outsourcing in Italy • Billy Reid recently launched their women’s wear and they’ve had great feedback which means they can expand their brand Threats • There can be a lot of high competition in the Italian market with brands such as Fendi and Ferragamo • Also the language barrier can become a problem • The prices are higher than their competitions because their outsource country is Italy instead of China
Outsourcing
Italy •
A peninsula covering 301,401 km2, surrounded by the Mediterranean Sea.
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The climate is mainly Mediterranean.
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The population is approximately 59,5 million.
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Labor Force Participation Rate in Italy averaged 61.22% from 1992 until 2015, reaching an all time high of 64.70%.
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With more than 24.4 million people counted amongst its labor force, Italy has the 4th largest in the EU and 22nd in the world.
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The population growth rate is .08 percent with a death rate of 10.18 per 1,000 and a birthrate of 9.13 per 1,000. Life expectancy at birth is 78.38 years.
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Italy has the highest workforce unemployed amongst 18 developed nations between 2000 and 2002, with 10.3% unemployed.
Political •
The Italian Peninsula is divided into 20 Regions; each divided into Provinces which in turn are divided into Municipalities.
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Italy is a Democratic Republic based on a system of civil law. The Chief of State “Presidente della Repubblica” has an important role in the political arena as a mediator and guarantor.
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The Prime Minister “Primo Ministro” is the head of the government, and president of theCouncil of the Ministers “Consiglio dei Ministri”.
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Italy has a bicameral Parliament “Parlamento” consisting of the Senate “Senato della Repubblica” and the Chamber of Deputies “Camera dei Deputati”.
Economy •
The main sectors are: food, textiles, machinery, iron and steel, clothing, footwear and ceramics.
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The Southern Regions, has a clear economic gap between north and south, the economy is mainly small enterprises mainly agricultural and manufacturing, and the tourism sector.
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The main exports of the south are engineering products, food, especially olive oil, wine, beverages, textiles and clothing, production machinery, motor vehicles, transport equipment, chemicals; minerals and nonferrous metals.
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Services sector is the largest share of the labor force with 63% of workers employed in it.
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Industrial sector accounts for 32%, while agriculture accounts for just 5% of the total number.
U.S. & Italy •
The United States established diplomatic relations with Italy in 1861.
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After the World War II Italy was forced to end relations with the U.S. Relations were reestablished in 1944.
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Today, the United States and Italy enjoy warm and friendly relations.
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The U.S. and Italy have sought to foster democratic ideals and international cooperation, especially in areas of strife and civil conflict.
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The U.S.Italy partnership is one of our strongest, as Italy is a leader in peacekeeping and military operations around the world.
Challenges of Doing Business in Italy
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Italian economy still works with political interference, bureaucracy, corruption, high levels of taxation, a rigid labor market, an ineffective judicial system, a complex regulatory framework and the high cost of conducting business.
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The business environment of the Italian culture, and the regulatory and legal requirements are certainly very different from their American counterparts, and it can be challenging for any foreign company to understand how to achieve its business goals in Italy.
“Things to know before traveling” Smoking etiquette: In Italy, smoking in restaurants, bars, offices, factories and any public place without special non-smoking areas, is illegal. Mobile etiquette: Based on concepts of courtesy and respect, is not polite in public conferences or during business meetings. Religion: Italians are mostly raised as Roman Catholics even if the influence of the Church is decreasing and large sectors of society are open to civil rights issues. Women: Only 38% of Italian women under 65 are in the labour market one of the lowest percentages in Western Europe. Nonetheless, the Italians are generally not inhibited when working together with the opposite sex and foreign women can do business in Italy without great difficulty. Sense of humor. Italians are generally not easily offended and you can criticize them and joke with them indeed, your sense of humor may well be appreciated by Italians.
Food • Food is a means for establishing and maintaining ties among family and friends. • No one who enters an Italian home should fail to receive an offering of food and drink. • Traditionally, a large lunch at noon meal. • They have the tradition of taking a siesta Transportation • Major cities have transport systems, including bus and underground-train networks. • In Venice, the main public transport option is vaporetti. Extensive metropolitane exist in Rome, Milan, Naples and Turin, with smaller metros in Genoa and Catania. • The space-age Minimetrò in Perugia connects the train station with the city centre. Cities and towns of any size have an efficient urbano and extraurbano bus system.
Names and Titles • Use last names and appropriate titles until specifically invited by your Italian host or colleagues to use their first names. • Females almost always use their maiden name, especially in business and on legal documents. They generally use their married names or a combination of their married names and maiden names outside of business. Body Language • Maintain eye contact while talking. Otherwise Italians might think you are hiding something. • Italians are known for using the most body language of all European nations.
Gestures Sign language is rich in “expressions” • Grouping all fingers’ tips together against the thumb and waving the hand back and forth is to say “what do you want?” or “what is it?”. • Pointing the index and little fingers downwards to shape two “horns” is a sign to protect against bad luck, whereas the “horns” pointed upwards are a sign of offense. The People • Cultural achievement is Italy's greatest source of pride. Personal relations are maintained with loyalty, especially in families. The family is the most important affiliation in Italy. Meeting and Greeting • When being introduced during a business or social meeting, shake hands with everyone present. • Ladies should extend their hand first to men. • Friends greet each other with a kiss on their cheeks.
Corporate Culture •
Italians take punctuality for business meetings very seriously.
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Strategic plans are rarely written and are never long-term.
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Business cards are exchanged only at the first meeting and should be handed to recipients.
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Meeting style is unstructured and informal. Formal presentations are not common.
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Generally, business discussions begin after a few minutes of small talk.
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Establish personal relationships, Italians like to deal with people they know and trust.
Business decisions are often made and agreed to privately before meetings. The purpose of a meeting is often to evaluate the mood and test water not to make decisions.
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Italians dislike arrogance and rudeness.
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Italians enjoy a lot of good humor and can be self-deprecating.
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Send a thank you note after being entertained or given a gift.
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Stand when an older person enters the room.
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Relationships must be profitable and mutually beneficial to gain total cooperation. Pragmatism and improvisation are considered keys to success. Protocol, rules and organization are often ignored. Negotiations usually take time and patience. Don’t rush them. Italians may misinterpret this as a weakness.
Made in Italy
Classifying Imports The Harmonized Tariff Schedule categorizes a specific good based on its name, use, and/or the material use in its construction. The good is then assigned a ten-digit classification code number. The numbers are organized first by the chapter and under each chapter this is a heading and a subheading, which further classifies the good.
HTS Code Chapter: 64 Heading: 6403 Subheading: 6403.99 Tariff item: 6403.99.90
Packaging & Shipping
COMPONENT COSTS: Fabrics: Horsehide Lining: Leather Other: Rubber Heel (TOTAL FABRICS) Trims: Antique Brass Buckles
Yds/Qty
Unit Prc
$ Amt
2 yds/2 units
$12
$44
1 yd/2
$1.5
$3.00
2
$2
$4.00 $51
4
$1.00
$4.00
(TOTAL TRIMS) CMT COSTS: Grading: Marking: Cutting: Make Charges: Thread Sewing Top-Stitching Labor
$4.00
Wash/Type Press/Trim QE/Bag & Tag (TOTAL LABOR) PACKING MATERIALS: Tissue Polybag Dust bag Inner Box Outer Box (TOTAL PACKING) WHOLESALE COST WHOLESALE MARGIN RETAIL PRICE RETAIL MARGIN
$0.25 $0.25 $0.25 $14.1
$2.00 $1.00 $2.50 $0.75 $1.10 $4.25 $1.00 $0.75
$0.10 $0.15 $0.25 $0.50 $1.00 $2 $71.10 40% $395.00 70%
COMPONENT COSTS Fabrics: Calfskin Lining: Leather Other: Rubber Heel (TOTAL F Trims: Laces Suede Piping Lug Sole
(TOTAL T CMT COSTS: Grading: Marking: Cutting: Make Charges: Thread Sewing Top-Stitching Labor
Wash/Type Press/Trim QE/Bag & Tag (TOTAL L PACKING MATERIALS Tissue Polybag Inner Box Outer Box Outer Box (TOTAL P WHOLESALE COST WHOLESALE MARGIN RETAIL PRICE RETAIL MARGIN
COMPONENT COSTS: Yds/Qty Fabrics: Calfskin 3 yds/ 2 Lining: Leather 2yd/2 Other: Rubber Heel (TOTAL FABRICS) Trims: Laces Suede Piping Lug Sole
Unit Prc $14
$35
$3.00
$12.00
$47 2 2 2
(TOTAL TRIMS) CMT COSTS: Grading: Marking: Cutting: Make Charges: Thread Sewing Top-Stitching Labor Wash/Type Press/Trim QE/Bag & Tag (TOTAL LABOR) PACKING MATERIALS: Tissue Polybag Inner Box Outer Box Outer Box (TOTAL PACKING) WHOLESALE COST WHOLESALE MARGIN RETAIL PRICE RETAIL MARGIN
$ Amt
$1.00 $1.50 $5
$2.00 $3.00 $10.00 $15 $2.00 $3.00 $4.50 $2.50 $2.00 $5.00 $2.00 $1.50 $0.50 $0.55 $0.55 $24.10 $0.50 $0.25 $0.75 $0.75 $1.00 $3
$89.10 40% $495 70%
Ocean Freight •
Packaging: Billy Reid uses a 5 ply carton which measured 14x14x10” inner boxes, 14x14x24” outer boxes. Two inner boxes will fit inside one outer box.
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Billy Reid is a luxury brand, footwear is prepackaged
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Number of boxes: The boxes will contain a total of 3000 boxes including both styles so 1500 per style
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Type of container: 20 ft. long container that will carry our goods from the port of Genoa, Italy to the port of Savannah, Georgia
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Space needed in container: 1500 boxes that will take half 2/3rd’s of place in the container
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Cost to ship the merchandise:
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Total cost per style $106650
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Approx. shipping cost per style $1,724.68
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Total shipping cost both style $3,449.36.
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Time: It would take approx. 40 days to get the goods from Italy to Florence, Alabama.
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Packaging: Billy Reid uses a 5 ply carton which measured 14x14x10” inner boxes, 14x14x24” outer boxes. Two inner boxes will fit inside one outer box.
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Billy Reid is a luxury brand, footwear is prepackaged
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Number of boxes: The boxes will contain a total of 3000 boxes including both styles so 1500 per style
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Type of container: 20 ft. long container that will carry our goods from the port of Genoa, Italy to the port of Savannah, Georgia
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Space needed in container: 1500 boxes that will take half 2/3rd’s of place in the container
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Cost to ship the merchandise:
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Total cost per style $133,650
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Approx. shipping cost per style $1,724.68
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Total shipping cost both style $3,449.36.
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Time: It would take approx. 40 days to get the goods from Italy to Florence, Alabama.
Import Process Documents
Thank You
Bibliography
"What about Italy?" Italy. Web. 02 Mar. 2016. "Italy." Culture of. Web. 02 Mar. 2016. "Getting around Italy on Local Transport - Lonely Planet." Lonely Planet. Web. 02 Mar. 2016. "Foreign Trade." - U.S. Trade with Italy. Web. 02 Mar. 2016. "U.S. Relations With Italy." U.S. Department of State. U.S. Department of State, 2015. Web. 02 Mar. 2016. "Italy - Cultural Etiquette - E Diplomat." Italy - Cultural Etiquette - E Diplomat. Web. 02 Mar. 2016. "California Transparency in Supply Chains Act of 2010." Brooks Brothers. Web. 02 Mar. 2016. "Billy Reid." Billy Reid. Web. 05 Mar. 2016. Kachka, Boris. "Etiquette 101." 08 May 2008. Web. 05 Mar. 2016. "Freight Calculator." World Freight Rates -. Web. 05 Mar. 2016.