COUNTRY PROFILE PRESENTATION FASM 420 - GLOBAL SOURCING FALL QUARTER 2015 BY SHANG YUAN | JADE HARPER
ABOUT LACOSTE
Recognized by green croc logo Product Mix Footwear, Perfume, Leather goods, watches, eyewear, and famous for polo shirts, also added sheets and towels
Lacoste Style Codes Color Bloc Piping Punch The monochrome The Net Pattern Stripes
LOCOSTE TIME LINE | 1921 - PRESENT
1921 | THE DEBUT | BORN IN 1904, RENÉ LACOSTE WINS HIS FIRST TOURNAMENT AGED 17 AND THE FRENCH OPEN FOR THE FIRST TIME IN 1924. THE PRESS NOTE HIS PERFECTIONIST APPROACH AND PREDICT A PLAYER OF GREAT CLASS. 1926 | THE FIRST CROCODILE | INSPIRED BY HIS NICKNAME, LACOSTE ASKS HIS FRIEND ROBERT GEORGE TO DESIGN A CROCODILE. THE FAMOUS LOGO MAKES ITS FIRST APPEARANCE EMBROIDERED ON THE BLAZER OF RENÉ LACOSTE. 1933 | INDUSTRIAL PRODUCTION | RENÉ LACOSTE AND ANDRÉ GILLER LAUNCH THE LACOSTE L.12.12 POLO SHIRT. MADE OF A NEW BREATHABLE FABRIC, PETIT PIQUÉ JERSEY, AND FEATURING THE CROCODILE LOGO, THE SHIRT IS FLEXIBLE AND LIGHTWEIGHT. 1981 | 1ST BOUTIQUE | THE FIRST LACOSTE BOUTIQUE OPENS ON AVENUE VICTOR HUGO, PARIS. 1994 | GILLES ROSIER FASHION DESIGNER| GILLES ROSIER IS APPOINTED FASHION DESIGNER OF LACOSTE. 1995 | OPENING OF THE 1ST US BOUTIQUES | THE FIRST AMERICAN LACOSTE BOUTIQUES OPEN IN PALM BEACH AND BAL HARBOUR, FLORIDA, FOLLOWED BY NEW YORK. 1996 | WEBSITE | THE FIRST LACOSTE WEBSITE IS LAUNCHED AT WWW.LACOSTE.COM. 2002 | NEW LOGO | THE WORLD-RENOWNED CROCODILE LOGO MEETS CONTEMPORARY TASTES. 2006 | THE FOUNDATION | THE RENÉ LACOSTE FOUNDATION IS CREATED. ITS MISSION IS TO SUPPORT AND FUND PROJECTS FOR CHILDREN TO TRANSMIT KEY VALUES THROUGH SPORT: TEAM SPIRIT, PERSEVERANCE, TENACITY, MOTIVATION AND RESPECT FOR OTHERS. 2010 | FELIPE OLIVEIRA BAPTISTA | FELIPE OLIVEIRA BAPTISTA TAKES OVER AS FASHION DESIGNER OF LACOSTE. 2012 | 1ST WOMEN’S BOUTIQUE, PARIS| FOR THE FIRST TIME IN ITS HISTORY, LACOSTE OPENS A BOUTIQUE AND LAUNCHES A SEASONAL COLLECTION ENTIRELY FOCUSED ON WOMEN. | 10 MILLION FANS | THE LACOSTE FACEBOOK PAGE ATTRACTS 10 MILLION FOLLOWERS. 2013 | 80TH ANNIVERSARY | TO MARK THIS HISTORIC OCCASION LACOSTE RELEASES AN ANNIVERSARY LOGO ALONG WITH SPECIAL COLLECTION OF SPORTSWEAR AND ACCESSORIES. 2014 | THE OLYMPIC GAMES | LACOSTE, PARTNER OF THE FRENCH OLYMPIC COMMITTEE, DESIGNS THE TEAM’S FORMAL ATTIRE AT SOCHI, THE PARALYMPIC GAMES AND RIO, IN 2016. THE BRAND IS AT THE HEART OF SPORTING EXCELLENCE, ASSERTING ITS CORE VALUES OF AUTHENTICITY, AUDACITY AND “JOIE DE VIVRE”.
Lacoste Marketing Strategy
Lacoste generally markets their products via tennis and gold pro’s, since that is their main focus with the brand. They also advertise in popular movies, TV shows in the U.S. Lacoste also advertises in social media as well as magazines, posters, and billboards.
MISSION STATEMENT
“TO HAVE A PERFECT BALANCE OF COMFORT AND ELEGANCE WHICH CAN BE ADOPTED BY ALL.”
COUNTRY PROFILE
COUNTRY - CHINA China, officially the People’s Republic of China (PRC), is a sovereign state in East Asia. Population of over 1.35 billion. Single-party state governed by the Communist Party of China, capital city: Beijing. It exercises jurisdiction over 22 provinces 5 autonomous regions 4 direct-controlled municipalities (Beijing, Tianjin, Shanghai and Chongqing) 2 mostly self-governing special administrative regions (Hong Kong and Macau) Claiming sovereignty over Taiwan
SOCIAL /CULTURE -China is the most populated country, more than 1 billion people live in China and there are 56 ethnic minority groups. -The largest group is the Han Chinese. -There are five official religions Buddhism, Taoism, Islam, Catholicism and Protestantism are illegal in China but Buddhism is more popular. -There are different languages in China but 71.5 percent of the population speak Mandarin Food in China influences geography and ethnic diversity. - Belief that calligraphy, poetry and painting were higher forms of art than dancing or drama. Chinese culture has long emphasized a sense of deep history and a largely inward looking national perspective.
POLITICAL
- The People’s Republic of China is one of the world’s few remaining socialist states openly endorsing communism. - The Chinese government has been variously described as communist and socialist, but also as authoritarian and corporatist, with heavy restrictions in many areas, most notably against free access to the Internet, freedom of the press, freedom of assembly, the right to have children, free formation of social organizations and freedom of religion. - President: Xi Jinping
GEOGRAPHIC - Located in Southeast Asia along the coastline of the Pacific Ocean, China is the world’s third largest country, after Russia and Canada. - With an area of 9.6 million square kilometers and a coastline of 18,000 kilometers, its shape on the map is like a rooster. - China is bordered by 14 countries -- Korea, Vietnam, Laos, Burma, India, Bhutan, Nepal, Pakistan, Afghanistan, Tajikistan, Kyrgyzstan, Kazakstan, Mongolia, and Russia. - Marine-side neighbors include eight countries -- North Korea, Korea, Japan, Philippines, Brunei, Indonesia, Malaysia and Vietnam. Capital: Beijing Major Cities: Shanghai, Guangzhou, Chengdu, Tianjin, Hangzhou, Hong Kong, Shenzhen Area: 3,705,407 square miles (9,596,961 sq km)
CONTRIBUTING FACTORS
Labor
- The working age population is 16-59 - China’s economy grew 7.4%. The working Chinese age population decreased by 3,710,000 in 2013 and 2014. - The proportion of the workforce has steady declined. - In China there is 4.1% unemployed. Over the past decade in China it has been the destination for global corporations due to the low-wage rates and labor. - The Asian country now creates almost half of the world’s goods. - China has the cheapest labor cost than other countries and the unemployment rate has topped 41%.
Transportation
Airports: 507 Roadways: 4,106,387 km Railways: 86,000 km Navigable waterways: 110,000 km Merchant Marine (commerial vessels or ships carrying goods): 2,030
S.W.O.T Analysis
Strengths • China has now labor cost. • Second largest importer in the world. • Good Chinese government • Form respect in business
Opportunities • China makes goods and more of the products put into goods. • China is successful with apparel and textiles. • China has a lot of resources • Excellent for U.S suppliers
Weakness • Language and communication barriers • Lack of transparency • Not knowing business etiquette • Competition
Threats • Large amounts of production in factories causing pollution • Increase in Chinese labor cost • Turmoil in the region • Transshipment traffic gives completion
BUSINESS ETIQUETTE
Mianzi (“Face” or Social Capital) keep mianzi, keep relationship
-Praising You may ‘give’ face to someone by praising him in front of others, especially the people that he values, such as important customers or government officials. It could also be done through presentation of token gifts, or expressing your gratitude for what he has done on occasions where people important to the receiving parties are around. -‘Saving’ face You may ‘save’ someone’s face by coming to his rescue by saying something to salvage an embarrassing situation. -‘Giving’ face You may ‘give’ face to someone when he seek favor from you by going out of your way to help. -‘Keeping’ face You may ‘keep’ someone’s face by subtly doing something for him. For example, intentionally lose the golf game that you could easily win.
Masculine or Feminine - A high score (Masculine) on this dimension indicates that the society will be driven by competition, achievement and success, with success being defined by the winner and the best in field; a value system that starts in school and continues throughout organizational life.
3. Negotiation Style and Strategies - From a Chinese person’s perspective, a negotiation exists primarily as a device for building trust so that two parties can work together for the benefit of both. - Trust is built through dialogue that lets all parties judge or evaluate the partner and their partner’s capabilities and assess each other’s relative status. - The negotiation process also enables all parties to reach an understanding on a specific issue, condition, or transaction in a way that lets both sides feel that a good deal was brokered. - Negotiation in China is viewed as an ongoing, dynamic process that takes into account practical matters and context. - Many Chinese people prefer this approach over creating contract-based absolutes, which many Chinese people perceive as the primary purpose of Western-style negotiations.
- When adapting to Chinese style negotiations, task-based, time-conscious foreign partners must balance the need for quick settlement on specific issues and also contract terms with the slower-paced and seemingly abstract building of interpersonal relationships. - Mianzi
3. Negotiation Style and Strategies Take the time to prepare - The objective of strategic preparation for negotiations is to gain insight into the negotiating partner’s situation, intent, and capabilities, and to also identify areas of focus for discussions. This may take time and effort, but thorough preparation it will help a company decide the best way to approach the table, increasing the likelihood of a successful negotiation and sustainable business arrangement. There are five main success factors to consider like knowing the context of the deal, knowing your partner, knowing yourself, putting relative strengths and weaknesses in context, and striving for operational readiness. Negotiations are never “over” - All situations involving two or more entities in China require a type of negotiation, ranging from informal, friendly discussions with a long-term partner to formal bilateral talks. The Chinese’s style of negotiation is the process of building and tending relationships to be able to produce benefits for both sides. It is a process that doesn’t end unless the relationship is detached. This approach of negotiation is rooted in the Chinese culture, historical, and practical considerations and they exist throughout modern China. It also differs from the view that the negotiation ends when the contract is signed. From a Chinese perspective, the contract signing indicates the formal beginning of a partnership and with that the commitment to an ongoing negotiation. In this, successful foreign companies commit adequate time and resources to the understanding and tending local Chinese relationships for the long run.
4. Type of communication - Difficult to do business in many parts of China without the help of a translator. - English language levels are very patchy and although a layer of fluent English speakers exists - Don’t always assume that just because somebody happens to speak good English that they will automatically more competent than somebody who doesn’t. - Difficult to say ‘no’. - Chinese body languages.
5. social and cultural elements
Appropriate Business attire - Never wear shorts, shorts are considered appropriate for exercise and never for the workplace. - Avoid wearing bright clothing, as bright colors are considered inappropriate in the China workplace. - Wear dark colors or muted colors. - Men and women should dress in a conservative manner and blue jeans should never be worn in the Chinese workplace. - On Fridays the Chinese do not have a casual day. - Keep your suit jacket on at all times. -
It is considered rude and inappropriate to remove your jacket
during the meeting at any time. - You should wear a suit to any business social event that one is attending. - Even for a formal event a business suit is appropriate and tuxedos are rarely worn.
5. social and cultural elements Introductions - Give your full name, job positions, and the place you employee for. - When it is your turn to be introduced, stand up, smile and look at the people and also be introduced with ease. - After being introduced, you can shake hands with each other and give mutual greetings, sometimes with an exchange of an calling cards. - Junior should be introduced to the senior first, the male should be introduced to the female first, the inferior should be introduced to the superior first and the host should be introduced to the guest. - Doing these first at an introduction is to show high respect to the senior, the female, the superior and the guest . Greetings -
Handshake or a kind salutation is common in China. When you meet peo-
ple
for the first time and are introduced to them and have made some new
friends, you should say ni hao . It is a efficient way to show your respect, break the ice and start a conversation and between close friends, you might start by saying jīntiān ni hao ma?
or zuìjìn ni hao ma? which means how
are you today and how is it going recently. - Chinese people will appreciate it if you use a couple of words in Chinese, but make sure you are aware of the meaning and the appropriate occasions. – In Chinese culture, the questions “Have you eaten?” or “Where have you been?” are pleasantries equivalent to the traditional “How are you?” in the English-. Therefore, do not take it literally and start getting into details in your answer! Simply answer “yes” if you have eaten - even if you haven’t – or simply smile and saying “thank you!”
5. social and cultural elements
Presentation and business card - Have your business card translated into Chinese on one side and English on the other side. - Use two hands to present your business card with the Chinese version facing upward. - Your name should face the person you are presenting the card so he can read your name. - Use two hands when accepting business cards. - Study the name for a few seconds when you receive the card and do NOT write on someone else’s business card. First Name or Title - The family name in China is put first, followed by the given name. - A feme covert does not use her husband’s family name. - The given name usually contains one or two Chinese characters.
5. social and cultural elements
Colors, Numbers, and their meanings Always pay attention to numbers and their significance or avoid as appropriate in China: • 8 is the luckiest number in Chinese culture. If you receive eight of something, consider it a gesture of good will. • 6 is considered a blessing for smoothness and progress. • 4 is a number of a taboo, because it sounds like the word “death” and is considered a very unlucky number • 73 means “the funeral” • 84 or 48 means “having accidents” • Prefer even numbers. red - Life (Red is for celebrating wedding and giving birth) White - Death (white for funeral and memorial services)
Gift Giving In Chinese societies the gifts are given for holidays like a birthdays, during official business meetings, and at special events like dinner at a friend’s home. While red envelopes are a more popular choice for Chinese New Year and weddings, gifts are also acceptable.
Joke Telling - Western jokes do not translate that well into Chinese.
5. social and cultural elements
Gestures - Chinese people don’t gesture very much and regard a lot of hand movement as excessive. - Winking and whistling are considered rude in China. - A outward pointing and raised pinky means you are nothing, poor quality or not very good at something. - Some Chinese point with their middle finger without realizing that it has a vulgar meaning in the West. - Do not point or use your finger to beckon someone this gesture is used for dogs. - To get someone’s attention in Chinese and tell them to “come here” place your palm down and move your fingers towards you. This gesture is used with children, taxis or waiters but is considered very rude when directed at an older person. - Also in southern China, people say thank you by tapping two fingers on the table. Many people in the north, however, are not familiar with this gesture.
Chinese Number Gestures
6. Business Entertaining Proper Use of Utensils • • • •
Do not use chopsticks to make any type of noise, draw attention, or gesture. Do not use chopsticks to move plates or bowls around. Generally, don’t use chopsticks to impale food. Do not leave chopsticks standing vertically in a bowl of rice or any other type of food.
Table Manners • The seating arrangement is probably the most important part of the Chinese dining etiquette. • If the guest of honor member is not seated, then other people are not allowed to be seated. • If he has not eaten yet others should not begin to eat either. • When making a toasts the first toast is made from the seat of honor and continuing down the order of importance. • Let the older people eat first and if you hear an elder say “let’s eat”, you can start to eat. • When helping yourself to the dishes, you should take food first from the plates in front of you other than those in the middle of the table or in front of others. • It is considered bad manners to use your chopsticks to burrow through the food and “dig for treasure” and also keep your eyes glued to the plates and when chewing food, don’t make any noises. • It is best not to talk with others with your mouth full of food, be temperate in laughing lest you spew your food or the food goes down your windpipe and causes you to choke. • Do not take the last piece.
6. Business Entertaining
Alcoholic Beverages - If the host offers you a drink the you should not refuse. - If you usually don’t drink any alcohol, you should explain and use tea to participate in your host’s toasts. - Baijiu - Typically have an alcohol content greater than 30% and are similar in color and feel to vodka that baijiu is sometimes known as “Chinese vodka”.
6. Business Entertaining
Appropriate Conversation Subjects - landmarks - weather - geography - food that you like Expect questions about your age, marital status, salary, and the price of personal items. Although your answers need not be detailed, trying to avoid answering will only invite suspicion and misunderstanding. For the Chinese, the specifics of your answers are not important as your willingness to respond.
Topics to Avoid - Taiwan - Japan - Chinese leadership. - Avoid asking them questions that require such a response of saying “no�. - Laughing loudly - Try not to be talkative, and be sure to take an interest in what your host has to say to you.
Men’s Sweater Chapter: 61 Heading: 6110 Subheading: 6110,12,00 Tariff Item: 6110,12,0011
COST SHEET
style# Season
AH1829-‐51-‐8TZ 2015 Fall
COMPONENT COSTS: Fabrics: wool yarn
Generation Size Range: 3-‐9 Description CABLE STITCH COLOR BLOCK CREWNECK Yds/Qty 5
Unit Prc $ Amt $14.00 $70
Lining: Woven Label/Care
$0.30
(TOTAL FABRICS)
$70.30
Trims:
(TOTAL TRIMS) CMT COSTS: Grading: Marking: Cutting: Make Charges: Thread Sewing
$1.00 $0.50 $1.50 $0.50 $1.00 $2.75
Labor
$0.30
Wash/Type Press/Trim QE/Bag & Tag (TOTAL LABOR) PACKING MATERIALS: Tissue Polybag Inner Box Outer Box (TOTAL PACKING) (TOTAL COST): WHOLESALE PRICE WHOLESALE MARGIN RETAIL PRICE RETAIL MARGIN
$0.30 $0.50 $8.35 1 1 1
$0.10 $0.35 $0.80
$0.10 $0.35 $0.80 $1.25 $79.90 $99.88 25% $245 59.50%
style# Season
AH1374-‐51-‐166 2015 Fall
COMPONENT COSTS: Fabrics: wool yarn
Generation Description GOLF SWEATER VEST Yds/Qty 3
Unit Prc $ Amt $7.00 $21
Lining: Woven Label/Care
$0.30
(TOTAL FABRICS)
$21.30
Trims:
(TOTAL TRIMS) CMT COSTS: Grading: Marking: Cutting: Make Charges: Thread Sewing
$1.00 $0.50 $1.50 $0.50 $0.50 $2.00
Labor
$0.30
Wash/Type Press/Trim QE/Bag & Tag (TOTAL LABOR) PACKING MATERIALS: Tissue Polybag Inner Box Outer Box (TOTAL PACKING) (TOTAL COST): WHOLESALE PRICE WHOLESALE MARGIN RETAIL PRICE RETAIL MARGIN
$0.30 $0.50 $7.10 1 1 1
$0.10 $0.35 $0.80
$0.10 $0.35 $0.80 $1.25 $29.20 $36.50 25% $110 67.00%
Size Range: 3-‐9
SHIPPING ROUTE
Ocean Freight Type of box used: 7 ply carton which measured 12 x 12 x6, each carton will contain 7 pieces (Size 3-9) Number of boxes: 500 Units: 3500/ 7 per box Tpye of container: 20 ft container Timelines A. shipping Delivery time: 25 - 30 days Production, packaging and preparing for shipment is 18 days Shipment taken to port by roadway is 1 days B. Customs On the water: 18 - 22 days Unloading of shipment and loading on to truck for transport: 1 day Shipment will be taken by roadway to the company location: 2 days Total time: 46 days
FASM-420 GLOBAL SOURCING | NOVEMBER 13, 2015