A G L O BA L S O U R C I N G S T R ATEG Y CHELSEA NABERGALL + VICTORIA STRONG + YEJIDE OFFORD + REESE TIMBERLAKE + RYANne FRAZIER 1
CONTENTS
Introduction Company Profile The Modish Aesthetic Target Market Product Assortment & Pricing
Strategy Development Proce ss
4
8
Country Analysis Supplier Analysis
2
Strategy Finalization & Publication
14
Conclu sion
18
Appendix
20
3
WHO IS MODISH? Mi ssion Modish a modern menswear shoe company with the mission to provide the contemporary man with quality products made to last by being crafted through sustainable approaches. Our corporate social responsibilities are shown through our values of: sustainability, teamwork, aesthetic, honesty, respect, creativity, achievement, and communication. We view our company obligations as a key importance of our business. By taking the responsibility for our impact on our customers, employees, communities, and the environment, we hope to encourage our consumers and other companies to follow our initiatives.
CO MPA NY PROF ILE
Many footwear brands determine these sourcing decisions primarily by cost. However, in the case of Modish, while we certainly do consider cost in manufacturing, we are even more impelled by the quality, construction and craftsmanship that each of our factories possess as well as the ability and willingness of each factory to continually improve and to develop new and lasting products that are environmentally friendly. By striving to make a positive environmental impact, we focus on following the principles of reducing, reusing, repairing and recycling our products. We work to increase our energy efficiency, decrease our water usage, and waste, prevent pollution, reduce and reuse materials, and recycle waste from our tanneries and shoe factories.
4
To provide consumers with quality products made to last through sustainable approaches
VA L U E S Sustainability Teamwork Aesthetic Honesty Respect Creativity Acheivement Communication
WHY? This document was created in order to outline the process in which Modish plans to facilitate the company’s global sourcing strategy. Because staying true to our company values is so important, Modish has gone into great depth when analyzing the countries and manufacturers in which we plan to source from. Those that were chosen have been analyzed based on their alignment with our company values, their ability to produce the quality we strive to offer, their efficiency, and most importantly, their level of sustainability. Through creating this strategy, we feel that we are also able to offer to our customers the transparency of Modish in all business that is to be conducted. 5
TARGET CUSTOMER “baxter”
Ret ail P R IC E S
“thompson”
Baxter - $ 335 Thompson - $ 600 Sulivan - $ 345 Crosby - $ 480 **Please see Appendix B
“sulivan”
“crosby”
assortment plan 6
7
10
GERMANY
BUSINESS CLIMATE COSTS
6
GOVERNMENT
6 8
LOCATION
9
RISKS SOCIAL STABILITY
7 10
SOURCING GUIDELINES
9
SUSTAINABILITY
8
TEXTILE INDUSTRY TRADE AGREEMENTS
n/a 10
TRAINED WORK-FORCE
8
SOCIO-ECO-POLITICAL BUSINESS CLIMATE
9
COSTS
9 8
portugal
GOVERNMENT
RISKS
9
SOCIAL STABILITY
9
SOURCING GUIDELINES
9 8
SUSTAINABILITY
10
TEXTILE INDUSTRY TRADE AGREEMENTS
6
united kingdom
TRAINED WORK-FORCE
8
10
SOCIO-ECO-POLITICAL
8
BUSINESS CLIMATE
8
COSTS
7
GOVERNMENT
7
LOCATION
9 6
RISKS SOCIAL STABILITY
9
SOURCING GUIDELINES
9 10
SUSTAINABILITY
7
TEXTILE INDUSTRY TRADE AGREEMENTS
C o u n t ry ran ki n g
7
LOCATION
n/a
TRAINED WORK-FORCE
10
SOCIO-ECO-POLITICAL
10
9
As a company, sustainability is something we strongly value for how we do business and the companies we do business with. When it came to sourcing, Germany, Portugal and the United Kingdom stood out to us for several reasons. Germany is a very innovative country, producing top-notch products in a sustainable way. Germany is a great country to manufacture Modish products because we want the highest quality of men’s leather footwear, produced ethically. The German Center for Research and Innovation has been funded by the German government since 2005, and will continue to be funded in order to create highly innovative products. The purpose of the initiative is to make Germany an international competitor in outstanding scientific achievements (“Service Navigation”). Additionally, Germany has a very efficient lead-time due to minimal natural disasters in the country. This would help Mod-ish conduct business in a timely manner with little hiccups along the way. Lastly, Germany has a very fair living wage for all workers. At Modish we take our CSR initiatives very seriously; therefore we only conduct business with suppliers and manufacturers who treat their workers in a fair manner. Although manufacturing in Germany can be a bit more costly, we prefer to pay up in price for the safety and well being of our workers and a well-made product. As a country, Portugal cares about their impact on the environment. On the Energy Trilemma Index, they got a ranking of 25 out of 129, with a strong score for environmental sustainability. This was an important factor in choosing countries. We also took into account the stability of the country and working there. The country is making its way to being as stable as they were before the European debt crisis, and they seem to be almost at their goal. The government has several initiatives to help the unemployed get jobs and the economy is strong. Portugal is also the closest European country to the United States, making lead time efficient. Portugal has a strong presence in the leather footwear industry. Their leather industry has been around since the 16th and 17th centuries, so they have a strong skilled work force in this area. Although there is a large skilled labor presence, it is the least expensive labor group in Europe. Portugal’s leather and accessories industry accounts for 3.8% of the global leather goods trade (“Learn More About Trade of Leather Footwear”).
Co u n t ry analysi s
The main reason why we chose the United Kingdom to manufacture our footwear is because of their environmental awareness. The country currently holds 4th place out of 129 countries when it comes to sustainability. As a member of the EU, The UK leather industry has to adopt a series of environmental standards that are under the rules of the EU Regulations and Directives. Some of these implementations include waste control, water control, climate change agreements, sustainable tannery techniques, and chemical regulation. With these initiatives in mind, the United Kingdom is known for creating high quality, sustainable leather products that are made by skilled, educated workers. With brands such as Mulberry, and Dr. Martens manufacturing in the UK, the leather industry is able to continue its success. In addition to sustainable and quality products, Britain also has a very stable economic environment and an extremely supportive government. With this support, the industry is developing new manufacturing techniques and implementations that are helping to advance the production and creation process. **See Appendix A
10
11
The three suppliers we originally chose for the United Kingdom included Crockett and Jones, Ltd., Clayton Leather, and Britannia Footwear. Based off of our analysis of the supplier rankings, Britannia Footwear had the best rankings that fit our specific manufacturing qualifications. Britannia Footwear is operated by seven employees in Burnley, Lancashire. They implement an ethical work force by supporting individual design and manufacturing requirements and manufacture all products in-house. They use top quality machinery and a unique system that supports our company value at Modish for sustainable production. This manufacturing process does not use solvent or chemical based adhesives to attach the soles, insoles, etc., thereby making the shoes very eco-friendly. They also use a patent pending manufacturing process that strips away a third of the time a standard process would take. These responsible qualities, along with a 6-8 lead-time from receipt of order to delivery in the USA, and no minimum order quantity, made Britannia Footwear the best supplier for our company (Britfootwear.)
S u p p li er rank i ng
When looking at Portuguese suppliers, Petratex was the best ranked. They manufacture footwear for men, women and children. When in comes to leather, they are able to work in various types, from calf and cow leather to crocodile. Companies such as Levi Strauss & Co. and H&M work with Petratex, so we know they have a quick lead-time and large capacity. Innovation is key not only in their manufacturing techniques and processes but regarding their environmental impact as well. Solar panels were installed in 2012 to help reduce their CO2 emissions, with a long-term goal of 100% renewable energy in the near future. At Modish, we want to source from reliable factories that have the capabilities of working with vegetable tanned leather and those that keep the environment in mind in all manufacturing steps. We want to provide customers with eco-friendly, high-quality leather footwear, and this manufacturer was found to be best suited for the job. (Petratex) **See appendix page 22 Out of the three suppliers we chose in Germany we decided to use Jack Wolfskin International as our supplier. Jack Wolfskin International is extremely innovative in the technology they incorporate in their products and have very durable, well-made men’s leather footwear. In order to incorporate sustainable products into Mod-ish’s product line it’s important to use innovative suppliers we see growing in the future. Because Jack Wolfskin also creates outdoor lifestyle products the materials used are very innovative, sustainable, and durable. **See Appendix A
12
13
When evaluating the criteria for the products of Modish, suppliers needed to have the capability of fulfilling the capacity requirements of 645,000 units annually, between three countries. Since Modish is a high-end retailer, we decided to have 645,000 units produced per year. We will be producing four styles including: the Sullivan dress shoe, Baxter monk shoe, Crosby chukka and the Thompson boot. Based off of our extensive market research, we at Modish feel as though the products we’re offering are transitional pieces that can be worn all year around. Our Sullivan shoe is going to be produced with continuous flow, manufacturing 200,000 units a year. It’s a classic dress style that is to be worn year around, and for special occasions. There will be 145,000 units of the Baxter monk shoe produced each year. The majority of this shoe will be produced in the spring and summer as a new shoe for fall styles. Our Crosby chukka will be produced similarly to the dress shoe, with 200,000 units a year. This chukka is another style that can be worn year around and is a transitional style that is fit for casual wear, and formal wear. There will be 100,000 units of our Thompson boot produced every year, with the majority of them being made during the fall and winter. This is a premiere fall style and a perfect gift of the Holidays.
strategy development process
**Please see Appendix C
v o l u m e o f e a c h st y l e
14
15
M argi n goal s
Through our research at Modish, the following preliminary cost sheets, by Country, are the ideal manufacturing costs of production that generate a sufficient profit margin. These calculated costs are then compared to the initial costs and quotes received by potential manufacturers along with the final negotiated prices of each product per country. Our margins at Modish are between 74 – 75%. These margins are met by a 295% markup in all three countries. This mark up ensures that profit margins can be maintained for a successful business strategy, allowing for future growth and opportunity amongst the growing luxury market in the United States. Lead-times for quality crafted and sustainable leather shoes usually take significantly longer, yet our countries and manufacturers are able to adhere to our business plan, which allows for lead-times of 8-12 weeks. This pan fulfills requested orders and provides enough time for product quality.
16
fu t u re growth
At Modish, we are planning for significant growth in the future, where orders placed will include larger quantities and lower initial costs. This is due to the established business relationships built and our ability to negotiate lower prices after the first year of manufacturing. Lead-times also have the opportunity of being reduced after product placement is established within the production and facilities. Value added services, such as in-house tanneries, constant improvement of sustainability, and making our manufacturing process completely vertically integrated will provide a convenience for us in the future. Our selected countries, Portugal, the United Kingdom, and Germany, allow for sufficient company growth within the individual manufacturing processes of each country; allowing for us to develop ourselves into an internationally recognized luxury footwear brand. At Modish, we are proud to have our footwear manufactured and produced within these countries, as they meet all of our companyrequired guidelines and stand within the top sustainable, leather manufactures of the world.
17
In conclusion, we at Modish decided to choose a sourcing strategy that would be beneficial, both long term and short term for the company. By maximizing opportunities, we were able to minimize potential risk associated with the individual countries chosen. At Modish, we focused on mitigating risks by evaluating potential countries and suppliers by their sustainable responsibilities, quality assurance, the transparency of their manufacturing process, and their willingness to build lasting business relationships. In evaluating sustainable responsibilities, we at Modish created a Corporate Social Responsibility guideline with implementations that focus on our Code of Conduct, which includes supporting, and adhering to environmental challenges by undertaking initiatives to promote a great environmental responsibility. One of the main reasons we chose Germany, the United Kingdom, and Portugal was because of their sustainability rankings. The suppliers that we chose within these countries willingly comply to the standards and rules set by their country and by our Code of Conduct. At Modish, we assessed the quality assurance of each supplier by finding manufactures that met our company’s quality standards. Along with our sustainability requirements, our standards included, the use of fine leather, sourced humanely and sustainably, and the use of fine craftsmanship and ethical responsibility in the production of the shoe. Our three countries met these standards, while also meeting standards of facility transparency and the want to maintain strong relationships with Modish.
c o ncl u si on
As for our product assortment, 38% of our shoes were placed in Portugal because the country and our manufacture chosen, Petratex, produces sustainably and offers extensive manufacturing services with great flexibility and strong technological advances. 31% of our product was placed in Germany, with Jack Wolf Skin, due to their environmental awareness and insurance of long lasting relationships because of the variations of services provided. The remanding 31% of our product was placed in the United Kingdom with Britain Footwear, because of their innovative manufacturing techniques and sustainable manufacturing production methods. The countries and suppliers that we chose adhere to our sourcing guidelines, and are aligned with our company’s values. We believe the price points required to produce our shoes by these factories are in alignment with our company’s profit margin goals.
18
19
Work ci ted
ap p en d i x a COUNTRY RANKING
Scale of 1 to 10 with 1 being the worst and 10 the best Portugal
“About.” Britannia Footwear. N.p., n.d. Web. 24 May 2015. <http://www.britfootwear. co.uk/about-britannia-footwear/>.
“Learn More About Trade of Leather Footwear.” Observatory of Economic Complexity. Macro Connections, n.d. Web. 08 May 2015. “Made in the UK: Ensuring the Survival of the British Leather.” Fashion. N.p., 18 Feb. 2014. Web. 10 May 2015. “Technology - Jack Wolfskin International.” Technology - Jack Wolfskin International. N.p., n.d. Web. 24 May 2015.
Welcomes foreign business; very industrialized
10
efficient, blunt
Costs
9
most inexpensive skilled labor in Europe
6
expesnive labor
Government
8
stable -‐ part of EU
6
stable, but on the verge of being overthrown
Location
7
closest European country to US (1-‐2 weeks to East Coast)
8
Risks
9
several national holidays
9
Social Stability Sourcing Guidelines Sustainability
9 9 8
very stable
7 9 9
Textile Industry
Petratex. Petratex. 2013. Web. May 06 2015.
Explanation
9
Business Climate
Foreword. “Social and Environmental Report of the UK Leather Industry.” UK Leather Federation Social & Environmental Report of the UK Leather Industry 2010Foreword (n.d.): n. pag. Euro Leather. Uk. Web. 2015.
Germany
Explanation
well established -‐ EU ranked 24th
one of most important industries in the country
10
Trade Agreements
15 national holidays part of eurozone, but prices have risen part of european union ranked 8th prominent footwear companies, but more expensive and not great textile industry
8
6
part of WTO, EU and in the works with TTIP
n/a
WTO and EU
highly skilled within leather and apparel industries
10
very skilled labor
“Service Navigation.” DFG, German Research Foundation. Web. 10 May 2015.
Trained Work-‐force
10
World Energy Council. “Energy Trilemma Index.” Energy Trilemma Index. World Energy Council, 2014. Web. 14 May 2015.
Socio-‐eco-‐political
8
high inflation, some social instability
8
overall stable
Total
102
90
Average
9.3
8.2
SUPPLIER RANKING
Scale of 1 to 10 with 1 being the worst and 10 the best
Portugal Shoes Carité
Abilities Capacity Lead-‐time Quality Customers
9 10 10 9 10 7
Sourcing Guidelines
Services Offered Strategic Outlook
20
Germany
Petratex
Mario
9 10 10 9 10 9
United Kingdom
Meindl
6 7 7 8 9 9
Jack Wolfskin Hua Jian International Shoes Crockett and Jones Clayton Leather Britannia Footwear
8 6 9 9 8 5 6 8
8 9 10 10 10 5 7 9
6 5 7 7 5 5 5 6
9 5 4 10 9 10 10 8
10 8 7 8 10 9 10 9
8 10 10 7 9 10 10 9
Total
8
10
7
63
67
53
59
68
46
65
71
73
Average
7.875
8.375
6.625
7.375
8.5
5.75
8.125
8.875
9.125
21
ap pendi x b Modish
Modish
COST SHEET Style # Style Name Description
Date COUNTRY
COST SHEET
Portugal
80074 Baxter Monk
Season Wash Wash Description
Fall/Winter 16-17 Black; Brown Vegetable Tanned Leather
Style # Style Name Description
Date COUNTRY
Portugal
96458 Thompson Tall Boot
Season Wash Wash Description
Fall/Winter 16-17 Black; Brown Vegetable Tanned Leather
FABRICS Natural Grain Leather TOTAL FABRIC COST *to include freight
Mill Waterhouse Leather
Style #
$/Square Feet* Square Feet Total $ 15.00 4 $ $
Description
FABRICS 60.60 60.60
**must include waste
Natural Grain Leather TOTAL FABRIC COST
Mill Waterhouse Leather
Style #
Shank Thread [Nylon #69] Black Brass Buckle TOTAL COMPONENT COSTS
121.20 121.20
**must include waste
Components
Sole
$/Square Feet* Square Feet Total $ 15.00 8 $ $
Description
Vendor Shenzhen Kadary Industry Co., Ltd. Jinjiang City Zhidong Shoes Material Co., Ltd. Ningbo Kingbird Dongguan Juhong
Style #
$/unit (per bundle/pair)
$Total
Yard/Quantity**
1
0.5
$
1 1 2
0.25 1.25 0.2
$ $ $ $
Components 0.51 0.25 1.26 0.40 2.42
Lace Sole Shank Thread [Nylon #69] Black
Vendor Laces For Less Shenzhen Kadary Industry Co., Ltd. Jinjiang City Zhidong Shoes Material Co., Ltd. Ningbo Kingbird
Style #
$/unit /pair 0.16
1
$Total $
0.16
0.5
1
$
0.51
0.25 1.25
1 1
$ $
0.25 1.26
0.03
1
$ $
0.03 2.21
Yard/Quantity**
PACKAGING
Shoe Box Dusters TOTAL PACKAGING COSTS
Vendor Shanghai Jxing Packaging Co., Ltd. Shanghai Jxing Packaging Co., Ltd.
Style #
$/unit
Quantity
Leather Tab TOTAL COMPONENT COSTS
$Total
85694
0.75
1
$
0.76
41580
0.25
1
$ $
0.25 1.01
PACKAGING
Vendor
PACKING Cartons Tape Labels TOTAL PACKING COSTS
Vendor Uline
LABOR Patternmaking Grading Marking Cutting Sewing Finishing* Washing* Vegetable Prepacks Admin TOTAL LABOR *Includes pressing & packing unless otherwise noted. OTHER Freight* Total cost of product + insurance + freight Duty*@ Broker* TOTAL OTHER *includes insurance
GRAND TOTAL * only if made out of the country @depends on product and country of origin.
Style # $/unit 563273 $
Quantity 1
3.53
#of mins
Cost/min
30 1
0.25 0.25
# units
COST per container
percentage per container
3700 9% 0.01
Shoe Box
$Total $ $ $ $
3.53 0.01 0.06 3.60
$Total $ $ $ $ $ $ $ $ $ $ $
0.30 0.30 0.30 0.03 7.50 0.40 1.00 0.06 0.50 10.39 78.02
$Total 145000 $ $ $ 1 $
0.03 78.05 7.02 0.01
$
Duster TOTAL PACKAGING COSTS
$/unit
Quantity
$Total
85694
0.74
1
$
0.75
41580
0.25
1
$ $
0.25 1.00
$Total $ $ $ $
3.53 0.01 0.06 3.60
$Total $ $ $ $ $ $ $ $ $
0.40 0.40 0.40 0.04 10.00 1.00 0.50 12.74 140.75
$Total 100000 $ $ $ 1 $ $
0.04 140.79 12.67 0.01 153.51
PACKING
85.07
Cartons (28x24x10) Tape Labels TOTAL PACKING COSTS
Vendor Uline
LABOR Patternmaking Grading Marking Cutting Sewing Finishing Vegetable Admin TOTAL LABOR *Includes pressing & packing unless otherwise noted. OTHER Freight* Mediterranean Total cost of product + insurance + freight Duty*@ Broker* TOTAL OTHER *includes insurance
GRAND TOTAL
22
Shanghai, Jxing Packaging Co. Ltd. Shanghai, Jxing Packaging Co. Ltd.
Style #
Style # $/unit 563273 $
Quantity 1
3.53
#of mins
Cost/min
40 1
0.25 0.25
# units
COST per container percentage per container
3700 9% 0.01
$
153.46
23
ap pendi x b Modish
Modish COST SHEET Style # Style Name Description
COST SHEET
Date COUNTRY
United Kingdom Season Wash Wash Description
962175 Crosby Chukka
Fall/Winter 16-17 Black; Brown Vegetable Tanned Leather
Mill Style # Waterhouse Leather
$/Square Feet* Square Feet Total $ 15.00 6 $ $
Description
90.90 90.90
**must include waste
Sole
Shank Thread [Nylon #69] Black TOTAL COMPONENT COSTS
Vendor Style # Laces For Less Shenzhen Kadary Industry Co., Ltd. Jinjiang City Zhidong Shoes Material Co., Ltd. Ningbo Kingbird
$/unit (per bundle/pair)
$Total $
Yard/Quantity**
1
0.16
Dusters TOTAL PACKAGING COSTS
Lace
0.5
1
$
0.51
Sole
0.25
1 1
$ $ $
0.25 1.26 2.18
Shank Thread [Nylon #69] Black TOTAL COMPONENT COSTS
1.25
Vendor Uline
LABOR Patternmaking Grading Marking Cutting Sewing Finishing* Prepacks Admin TOTAL LABOR *Includes pressing & packing unless otherwise noted. OTHER Freight* DFS Worldwide Total cost of product + insurance + freight Duty*@ Broker* TOTAL OTHER *includes insurance
GRAND TOTAL
24
Fall/Winter 16-17 Black: Brown Vegetable Tanned Leather
Mill Waterhouse Leather
Style #
$/Square Feet* Square Feet Total $ 15.00 4 $ $
Description
60.60 60.60
**must include waste
Vendor Laces For Less Shenzhen Kadary Industry Co., Ltd.
Style #
$/unit /pair
Jinjiang City Zhidong Shoes Material Co., Ltd. Ningbo Kingbird
0.16
1
$Total $
0.16
0.5
1
$
0.51
0.25
1 1
$ $ $
0.25 1.26 2.18
Yard/Quantity**
1.25
PACKAGING
Vendor Style # $/unit Shanghai Jxing Packaging Co., Ltd. 85694 Shanghai Jxing Packaging Co., Ltd. 41580
Quantity
Vendor
$Total
0.74
1
$
0.75
0.25
1
$ $
0.25 1.00
$Total $ $ $ $
3.53 0.01 0.06 3.60
$Total $ $ $ $ $ $ $ $ $ $
0.30 0.30 0.30 0.03 12.00 0.40 0.06 0.50 13.89 111.57
$Total 200000 $ $ $ 1 $
0.01 111.58 10.04 0.01
PACKING Cartons Tape Labels TOTAL PACKING COSTS
Natural Grain Leather TOTAL FABRIC COST *to include freight
0.16
PACKAGING
Shoe Box
Season Wash Wash Description
Components
Components
Lace
Germany
98016 Sullivan Dress Shoe
FABRICS
FABRICS Natural Grain Leather TOTAL FABRIC COST *to include freight
Style # Style Name Description
Date COUNTRY
Style # $/unit 563273 $
Quantity 1
3.53
#of mins
Cost/min
30 1
0.4 0.4
# units
COST per container percentage per container
2200 9% 0.01
$
Shoe Box Dusters TOTAL PACKAGING COSTS
Shanghai, Jxing Packaging Co. Ltd. Shanghai, Jxing Packaging Co. Ltd.
Style #
$/unit
Quantity
$Total
85694
0.74
1
$
0.75
41580
0.25
1
$ $
0.25 1.00
$Total $ $ $ $
3.53 0.01 0.06 3.60
$Total $ $ $ $ $ $ $ $ $ $
0.30 0.30 0.30 0.03 10.50 0.40 0.06 0.50 12.39 79.77
$Total 200000 $ $ $ 1 $
0.01 79.78 7.18 0.01
PACKING
121.62
Cartons (28x24x10) Tape Labels TOTAL PACKING COSTS
Vendor Uline
LABOR Patternmaking Grading Marking Cutting Sewing Finishing* Prepacks Admin TOTAL LABOR *Includes pressing & packing unless otherwise noted. OTHER Freight* Intercargo Total cost of product + insurance + freight Duty*@ Broker* TOTAL OTHER *includes insurance
GRAND TOTAL
Style # $/unit 563273 $
Quantity 1
3.53
#of mins
Cost/min
30 1
0.35 0.35
# units
COST per container percentage per container
2300 9% 0.01
$
86.96
25
ap pendi x c Modish LINE PLAN STYLE # Style #1 Style #2 Style #3 Style #4
SEASON - F/W 16
NAME
SP/SU JAN
FEB
SUMMER MAR APR
MAY
JUN
Fall/ Winter JUL
Quantities
Quantities
Quantities
Quantities
Quantities
Quantities
DESCRIPTION
Sullivan Baxter Crosby Thompson
Dress shoe Monk Chukkah Boot
200,000 units 145,000 units 200,000 units 100,000 units TOTAL: 645,000
20000
20000
15000 35000
Quantities
20000
20000 15000 20000
10000 20000 10000
40000
55000
40000
AUG
SEP
OCT
HOLIDAY NOV DEC
Quantities
Quantities
Quantities
Quantities
TOTAL
Quantities
Retail
Retail
Per Unit
Total
15000 20000 20000 25000 25000 5000 5000 15000 200000 $ 345.00 $ 69,000,000 evaluating the products the capability of 30000 When 20000 15000the criteria for 20000 20000 of Modish, 5000 suppliers needed 145000to $have335.00 $ 48,575,000 annually, between three countries. 10000 fulfilling the capacity requirements 30000of 645,000 25000 units 30000 40000 200000 $ 480.00 $ 96,000,000 5,000 35,000 30,000 20,000 10,000 100000 $ 600.00 $ 60,000,000 Modish is a high-end have 645,000 produced per year. We will be 55000 Since 40000 35000 30000 retailer, 110000we decided 80000 to60000 65000units645000 $ 1,760.00 $ 68,393,750.00
producing four styles including: the Sullivan dress shoe, Baxter monk shoe, Crosby chukkaAverage and the Thompson boot. Based off of our extensive market research, we at Modish feel as though the products weâ&#x20AC;&#x2122;re offering are transitional pieces that can be worn all year around.
MMER R APR
ities
Quantities
20000 15000 20000 55000
10000 20000 10000 40000
MAY
JUN
Fall/ Winter JUL
Quantities
Quantities
Quantities
15000 30000 10000 55000
20000 20000
40000
AUG
SEP
OCT
HOLIDAY NOV DEC
Quantities
Quantities
Quantities
Quantities
20000 15000
35000
25000
25000 20000 30000 35,000 110000
5,000 30000
5000 20000 25000 30,000 80000
TOTAL
Quantities
5000 5000 30000 20,000 60000
15000 40000 10,000 65000
200000 145000 200000 100000 645000
Our Sullivan shoe is going to be produced with continuous flow, manufacturing 200,000 units a year. Itâ&#x20AC;&#x2122;s a classic dress style that is to be worn year around, and for special occasions.
Retail
Retail
Cost
Cost
Per Unit
Total
Per Unit
Total
Margin
Margin %
$ 345.00 $ 335.00 $ 480.00 $ 600.00 $ 1,760.00
$ 69,000,000 $ 86.96 $ 200,086.96 $ 258.04 75% be produced$ in the spring and summer as$a new shoe for fall styles. $ will48,575,000 85.07 $ 12,335,150.00 249.93 75% $ 96,000,000 $ 121.62 $ 24,324,000.00 $ 358.38 75% Crosby chukka will be produced similarly $to the dress shoe, with 200,000 units a year. This chuk$ Our60,000,000 $ 153.46 $ 15,346,000.00 446.54 75% is another style can be worn year around is a transitional style that is fit for casual wear, $ ka 68,393,750.00 $ that 111.78 $ 13,051,309.24 $ and1,648.22 75%
There will be 145,000 units of the Baxter monk shoe produced each year. The majority of this shoe
and formal wear. Average
Average
Average
Average
There will be 100,000 units of our Thompson boot produced every year, with the majority of them being made during the fall and winter. This is a premiere fall style and a perfect gift of the Holidays.
TAL
200000 145000 200000 100000 645000
Retail
Retail
Cost
Cost
Per Unit
Total
Per Unit
Total
$ 345.00 $ 335.00 $ 480.00 $ 600.00 $ 1,760.00
$ 69,000,000 $ 48,575,000 $ 96,000,000 $ 60,000,000 $ 68,393,750.00
$ 86.96 $ 85.07 $ 121.62 $ 153.46 $ 111.78
$ $ $ $ $
Average
26
200,086.96 12,335,150.00 24,324,000.00 15,346,000.00 13,051,309.24
Average
Margin $ $ $ $ $
Margin % 258.04 249.93 358.38 446.54 1,648.22
Average
75% 75% 75% 75% 75% Average
27
28