Coriumbona

coriumbona luxury leather goods

2016

GLOBAL SOURCING CHAMBERLAIN

PITCAIRN

HEALY

C O U N T R Y A N A LY S I S

LOCATION

table of contents

SUSTAINABILITY FAIR LABOR LAWS TECHNOLOGY TRADE AGREEMENTS COST (WAGES AND PROFITABILITY)

C O M PA N Y

C O M PA N Y D E S C R I P T I O N

LOCATION

M I S S I O N S T A T E M E N T

SUSTAINABILITY

V A L U E S

FAIR LABOR LAWS

PRODUCT CATEGORIES

TECHNOLOGY

SOURCING GUIDELINES

TRADE AGREEMENTS COST

C O M PA N Y PRESENCE

S U P P L I E R A N A LY S I S

TARGET MARKET

ITEM RANGE

S T R AT E G Y P U B L I C AT I O N & CONCLUSION

PRODUCTS

C O S T S T R AT E G Y

PRODUCT CATEGORIES

SKETCH SIZE RANGE

COUNTRY RANKING

DESCRIPTION RETAIL SELL PRICE

SUPPLIER RANKING

misson statement to craft high quality, luxury leather goods with unique designs from responsibly sourced materials made by happy people.

values

PART A

sourcing guidelines We seek to have transparency with our customers and

factories in hopes of building strong authentic connections.

PROTECTING CORIUMBONA’S ASSETS You are entrusted with numerous corporate assets, and have a special responsibility to protect them. These include not only cash and other financial assets, but also assets such as intellectual property, facilities, equipment, inventory, and supplies. These assets should be used only to conduct corporate business. Any act that involves theft, fraud, embezzlement, misuse or misappropriation of any assets is prohibited.

We believe that our

customers have the absolute right to know how, where, and why the products they purchase are made.

We

are committed to sourcing our products in a legal,

ethical, and responsible manner.

DIGNITY AND RESPECT Consistent with our values, including respect for individuals and cultures, Coriumbona is committed to a workplace in which everyone is treated with dignity and respect without regard to race, color, religion, sex, gender, gender identity, sexual orientation, marital status, age, ethnic or national origin, disability, veteran status or any other characteristic prohibited by law. Everyone should work in an environment that promotes equal employment opportunities and prohibits discriminatory practices, including harassment.

COMPLIANCE WITH LAWS Our first obligation is to obey the laws of every country in which we do business.

These include labor, safety, environmental, anti-corruption, privacy and data protection and antitrust laws, as well as international trade regulations. No employee may perform any act prohibited by law or policy, or ask anyone else to perform such an act.

INTEGRITY Be honest, fair and trustworthy in your business relationships. Take responsibility for your actions and their consequences. Coriumbona operates not only according to law, but also with a strong commitment to dignity and respect for the individual and the community

FAIR DEALING We suppliers, agents and

do business honestly with our customers and expect our other partners to similarly demonstrate high standards of

ethical business behavior.

Coriumbona has developed a Supplier Code of Conduct that we apply to contractors, joint venture partners and suppliers of goods and services, and that extend the principles of our Code of Conduct to our suppliers.

PROTECTING CONFIDENTIAL INFORMATION One of Coriumbona’s most valuable assets is information. You must safeguard confidential information by keeping it secure, limiting access to those who have a need to know to perform their jobs and avoiding discussion of confidential information in public areas. Some examples of confidential information include the personal information of our employees and customers, information regarding

Coriumbona’s intellectual property, including future season product information and design materials, as well as other sensitive business or financial information concerning Coriumbona. The obligation to preserve Coriumbona’s confidential information, and that of our employees, business partners and customers, is ongoing, even after your employment ends. Employees must also acknowledge and comply with Coriumbona’s Confidentiality, Information Security and Privacy Policy, which lists specific obligations of employees with respect to confidential information.

CONFLICTS OF INTEREST All employees have an obligation to act in the best interests of the company. Actions must be based on sound business judgment, not motivated by personal interest or gain. Any situation that creates or appears to create a conflict of interest between personal interests and the interests of Coriumbona must be avoided.

WORKING CONDITIONS AND WORKPLACE SAFETY Coriumbona will provide employees with safe and healthy working environments. Employees will be trained in safe practices and safety rules. Practices relating to the use of safety equipment and protective devices will be strictly enforced. All employees are responsible for observing employment and safety rules, and for taking precautions necessary to protect themselves and their co-workers. These precautions include reporting to work free from the influence of alcohol or any substance that could prevent the safe conduct of work activities.

HOURS OF WORK AND AGE OF EMPLOYMENT Hours worked each day, and days worked each week, shall not exceed the legal limitations of the countries in which we operate. Also, while the legal definition of “children” may vary from country to country, Coriumbona will not knowingly employ individuals who are under 15 years of age.

product categories

logistics we will hold a strong online presence and sell through the e-commerce domain, coriumbona.com

backpack (crm-bkpk-005)

in addition we will have brick and mortar locations

:

messenger tote (crm-bkpk-003) wallet (cm-slg001)

Scottsdale, Arizona Austin, Texas Charlotte, North Carolina New York, New York

* *

* *

*the demographics of each city consist of wealthy young indiduals and families. each of these cities house a number of luxury brands and have rich culture in which we find fitting to promote and sell quality crafted leather goods.

target market Customers age 25-60 Both male and female Value quality, and longevity of a product Are unique individuals who curate their lives Are aware of where their products are coming from, and try to buy responsibly Are aware and concerned of current trends Classic and professional in style, yet contemporary and exclusive in taste.

Kade currently lives in Bushwick, Brooklyn in a loft with his cat Karl. He earned her degree in Graphic Design and a minor in Photography at The Fashion Institute of Technology. He frequents WWD and Business of Fashion to up to date on current events and topics within the industry. When he frequently traveled to the UK with his parents as a child, Kade fell in love with the culture and has since aspired to move back to work with a smaller, and more intimate creative agency.

Kade enjoys spending sunny days at Central Park and solo trips to Beacon’s Closet every weekend. He also is a faithful brunch customer at Jack’s Wife Freda in Soho.

Jinny recently received her BFA in Furniture Design at the Rhode Island School of Design. Jinny moved to Venice, California with aspirations of working alongside Commune Design in Los Angeles. She lives with her 2 best friends, who also studied at RISD. Throughout the week, Jinny spends most of her time job searching and polishing her portfolio.

In her spare time, Jinny frequents art shows in search of inspiration and networking with other artists.

product categories

country analysis country

: CHINA

: Eastern Asia. Bordering the East China Sea, Korea Bay, the Yellow Sea, and the South China Sea. Bordering Russia, Kazakhstan, Mongolia, North Korea, and Vietnam location

: A “green strategy” is in place to decrease stress on natural resources caused by its rapid growth, development, and urbanization. China ranked 109th out of 180 countries in its 2016 Environmental performance level. In a joint Presidential Statement with China and the US, the country joined the climate control summit as of 2016 sustainability

: Collective action by Chinese workers, including strikes, has been successful in many cases and is bringing Chinese employers to the bargaining table As a result, China’s industrial workers are fashioning their own system of industrial relations, largely without the assistance of the existing law and labor relations institutions. fair labor laws

: The Chinese administration has attempted to become more energy efficient and clean poor implementation is in process. For the future they plan to increase their number of patents.

Recently implemented A new performance management system helps ensure that both the maker technology

and its suppliers keep up their ends of the bargain

: China currently has no free trade agreements with the United States and none are in the works. The TPP (Trans-Pacific Partnership) is currently in the works but the trade agreement excludes China and will most likely work against them when creating a new trade powerhouse. Though they do not have any trade agreements with the United States, China has been a member of the World Trade Organization since 2011. This means that as a member, the World trade agreements

Trade organization deals with all rules of trade between China and the other members involved. : There are statutory minimum labour standards and employee entitlements, such as annual leave (5–15 days based on accumulative service years), working hours (eight hours per day, 40 hours per week), maximum probation period (six months), medical insurance, paid sick leave, work-related injury insurance, maternity leave, etc. The minimum wage being 1,600 yuan (US$239) per month in 2016. The average factory worker in China earns $27.50 per day and the average garment worker making a maximum of $18 per day. cost

location

: ITALY

location

: Southern Europe, a peninsula extending into the central Mediterranean Sea, northeast

of

tainability.

: The italian fashion system is currently combining the quality of products and sus-

Adopting strategies and production processes that have minimal environmental impact

and more importantly finding new materials and solutions to enhance the competitiveness and international excellence.

: Collective agreements determine the normal weekly working time (never more than 40 hours). Some enterprise-level agreements provide for a more substantial reduction in fair labor laws

weekly working time in connection with a new shift system which allows a more intensive use of machinery and thus increased productivity. time.

Different overtime limits

Work performed in excess of 40 hours a week is over-

can be fixed by collective agreements. In principle, overtime should

be occasional or due to exceptional reasons which cannot be met by the hiring of new workers.

The Italian Constitution recognises the right of citizens to associate freely (Sect. 19) and the right of employers and employees to join associations or unions. technology

: Not as technologically advanced as other European countries. Italy has been

unable to keep up the pace with technological demands because of competitive global economy.

The italian technological lag reflects a falling behind in educational standards: low growth and weak investment in technology and human capital have reinforced each other. The aging population has made reversing these trends a formidable task. An Anti-piracy law came into action in March 2014 combating anti copyright piracy over the internet. Mobile subscribers grew by an average of 8.26% during 2000-2014 : TAFTA Transatlantic Free Trade agreement between the US and Europe resulting in economic growth and lower tariffs, stricter guidelines for intellectual property in the fashion industry | TEC Transatlantic Economic council for Europe and United States regarding apparel industry, Petrol conservation, trade cooperation,and technology GATT Regulates international trade to reduce tariffs and remove trade barriers trade agreements

cost

: ITALY

location

: Southern Asia, bordering the Arabian Sea and the Bay of Bengal, between Burma and

Pakistan

Tunisia

sustainability

location

: In April of 2014 a new national minimum wage of €8.50 ($9.02 per hour, the first time it has

been introduced on a countrywide basis. Italy does not have a unified labor code and labor legislation is wide ranging with a number of laws, regulations and

Statutes. As of 2015, the government has passed changes to the Workers’ Statute Act of 1970, under the new Jobs Act. The act is one of a series of regulatory reforms aimed at reinvigorating the economy and is intended to provide the labor market with a different more flexible structure.

: When it comes to leather, some factories in India have taken on sustainable dyeing processes like vegetable dyeing instead of the more traditional dye methods that have been polluting their waterways for decades. The recent air pollution problem in New Delhi which has been occurring since last year is being combated, as of Nov.10th, by The Public Works Department, a government agency that manages construction and maintenance of roads and government buildings, has been instructed to sprinkle water on roads of 100-feet and longer at least once a week.

The local government has promised stricter enforcement of laws that ban the burning of leaves and garbage. It said government officers will be held accountable for any lapses in their respective areas.The transportation of fly ash, a byproduct of coal power generation, from Badarpur Thermal Power Station will be prohibited for the next 10 days and water will be sprinkled on dumped fly ash at the plant to prevent it from spreading in the air. The Municipal Corporation of Delhi, a government agency in charge of cleanliness and waste collection in most parts of the city, has been directed to ensure that fires emanating from landfill sites are stopped immediately.

Delhi government’s environment department will launch a mobile app immediately to enable the public to report cases of garbage burning. In relation to the country’s sustainability laws deal with ecological sacrifices are deemed necessary, while keeping in mind the nature of the environment in that area, and its criticality to the community. This is in order that future generations may benefit from policies and laws that further environmental as well as developmental goals. This ethical mix is termed sustainable development, and has also been recognized by the Supreme Court in the Taj Trapezium case. sustainability

: Reformed from the archaic British empire labor laws in 1991, but they’re still 100% of labor laws without violating 10%. fair labor laws

very messy with employers being exploiters. It is basically impossible to comply with

technology

: 26 percent of the population uses internet in cities

: ASEAN (ASEAN–India Free Trade Area) European Union (negotiations stalled) & European Free Trade Association (EFTA) (negotiations stalled) | Thailand (separate from FTA agreement with ASEAN) Malaysia (separate from FTA agreement with ASEAN) trade agreements

: According to a wage report issued in 2012 by the United Nations’ International Labour Organization (ILO), India ranked 69 out of 72 countries listed, with the average monthly wage equivalent to $295 U.S. dollars or just over 18,117 rupees. cost

country selection China has the largest number of labor force and largest apparel and textile industry in the world. According to China National Garment Association (CNGA) “China’s garment industry has gained advantage in manufacturing products in a timely manner..” This is where we see fit for

supplier selection When choosing Italy as one of our suppliers, we found that the country was one of the best matches for quality leather materials and could be sourced ethically. The country's location being a prime fit due to not only our name being derived from the country but also to let our customers know we strive for all of our products to be handled with the best care and craftsmanship.

The country stands at a good point

with sustainability by adopting strategies with minimal impact on the environment and

we stay true to our own company’s morals.

With their labor laws allowing for only a maximum of 40 hours and giving employees the right associate freely, going hand in hand with our code of conduct by treating all employees fairly. Even though they country is not as technologically advanced as other European countries, we feel the quality of ethically sourced materials make up for this factor seeing as for generations Italy has been known for its high quality of leather. Having trade agreements of TAFTA, TEC, and GATT in effect allows for easy trade between the US and Italy.

Italy’s recent change in their minimum wage, basically being non-existent before April of 2014, allows for Italy to remain in compliance with our sourcing guidelines in fair wages to all working or in association with Coriumbona.

set up initiatives in sustainability by the way they make and produce their

With India being one of the fastest growing economies in the world and the current government creating jobs to bridge the poverty gap, we found the country to be our final selection for one of our suppliers. Its location in Southern Asia bordering the Arabian Sea and the Bay of Bengal between Burma and Pakistan gives our company quicker lead time. With the countries sustainability laws being enforced further it aligns with our company in regards to India’s recognition of conserving forest resources and sustainable development. Their labor laws are still a work in progress which we will continue to monitor during our yearly audits. With a substantial percentage of the population using the internet in the main cities, our company can benefit from this with efficient communication. In October 2015, the two governments (U.S. & India) deepened their bilateral trade and investment goals in 2015 and planned engagement for 2016 that can promote economic growth and job creation in both countries. Furthermore, the U.S. provided information on the positive correlation between investments in the e-commerce and retail sectors and the expansion of transport, logistics, and warehousing infrastructure. The wages of country being $295 per month meeting our sourcing guidelines.

our company because we plan on making our products in the same way but with dedicated craftsmanship also and not rushed products so that

China being a member of the World Trade Organization (WTO) means they help producers, exporters and importers conduct business smoothly. As well as being highly listed on WTO’s ranking in world trade. China is the United States first exporter even though neither has a trading agreement with one another.

The minimum wage of 2016 being $239 per month in US currency permitting a significant amount of attention to other competitors due to it being an unbeatable price. China relies heavily on technology and continues to implement newer forms coinciding with US technological advances by continuing to further innovate. China often focuses on hard technical tools at the expense of “softer” ones involving mindsets, leadership and behavior which are the most critical. The government and factories have own products.

innovating their production processes to do so.

supplier analysis

strategy publication

Italy- Florentia Di Rotellini Massimo, +39 05 5897 9219 Via Rocco Benini 18 B Campi Bisenzio Fi 50013 It Neiman Marcus is one of their top customers and they supply specifically leather and small leather goods. As well as being located towards the nearest port in Italy.

India- Sunili Leathern Pvt., Ltd. + 91 33255 18596 54 Madhir Road Dum dum cantt., Kolkata, West Bengal, India, 700028 They have been a successful supplier from 2007 to present day, having a majority of their shipments to Intercontinental Leathern Industry Inc which resides in Ny, Ny. Has a direct phone number and representative to speak with in comparison to other leather goods suppliers in the country having neither. communication with our suppliers.

As a company we want to have clear

China- Changshu Maydiang Leather goods Co, Ltd. +86 512 5238 9211 Zhaoshi Town, Changshu, Jiangsu, China, 215518 Private company working with brands like Phillip Lim, Express, and Duluth Trading company all well known brands that have a revenue of over 100 million. The company’s line of business includes manufacturing of personal leather goods including coin cases, key cases and bill folds very similar to what we are producing.

In the selection of our product category, we wanted a country well versed in the apparel and textile industry. Having the ability to produce quality handcrafted leather goods at reasonable price is why we chose China, India, and Italy. Each country met the needs for social, economical and political stability upon our research. They all showed a significant amount of online users and mobile subscribers permitting our company to start as an e-commerce platform before developing a brick and mortar store.

The suppliers we saw fit for manufacturing our products had extensive experience working with brand name designers and leather goods. While evaluating each supplier we made sure to analyze their history of shipments, services offered and skillset. Also, making sure each supplier complied with our CSR standards specifically, working conditions and fair living wages. As much as we want our products to be beautifully crafted products, we care more about ensuring the safety of the individuals creating these products. China and India will best leverage profitability by having low wage costs and well made leather goods. Italy has a higher wage cost and is more expensive but this is a factor we are willing to overlook to make our high quality products. Each suppliers quality of material, transit time, and equal treatment of employees coinciding with our CSR make them work best for our products.

strategy conclusion Coriumbona takes pride in their transparency as a company and the health of its workers, these were our highest concerns when reviewing our countries and suppliers.

When deciphering which factories that best matched our company’s profile we discovered China, India, and Italy were a reliable and established in producing our luxury small leather goods product line.

cost strategy

Target Costs, Target Retail and target Markup% = 75% MU Wallet - $156 Messenger Tote - $298 Backpack - $513

line plan

country ranking

supplier ranking

works cited http://www.globalblue.com/destinations/italy/rome/sustainable-style-arrives-in-italy/ http://www.ilo.org/ifpdial/information-resources/national-labour-law-profiles/

WCMS_158903/lang--en/index.htm

http://www.aflcio.org/Issues/Trade/China/Labor-Rights-in-China www.chinadaily.com.cn/china/2015-09/30/content_22017853.htm https://www.reference.com/business-finance/average-wage-india-7bf03595f41e5fa4 http://www.economist.com/news/briefing/21646180-rising-chinese-wages-will-only-strengthen-asias-hold-manufacturing-tightening-grip

http://www.mckinsey.com/business-functions/operations/our-insights/a-new-era-formanufacturing-in-china

http://bruegel.org/2014/10/why-does-italy-not-grow/ https://www.cia.gov/library/publications/the-world-factbook/geos/in.html http://blogs.wsj.com/indiarealtime/2016/11/07/what-delhi-government-says-it-is-doing-to-combat-air-pollution/

http://www.environmentallawsofindia.com/sustainable-development.html https://ustr.gov/about-us/policy-offices/press-office/press-releases/2015/october/ united-states-and-india-joint

https://www.searates.com/reference/portdistance/?K=ChIJWQbyePx1-4gRvCBgA1FnDE4&A=ChIJiT3W8dqxfkcRLxCSvfDGo3s&D=9788&G=17854&shipment=1&container=20st&weight=1&product=402&request=0&