DéNîmes by Sofia Molinaro

Table of Contents 2 3 4 5

De Nimes Target Market

Products Strategy

Country Analysis

Supplier Analysis

Conclusion

Appendix

CityofAngels L

ocated in Los Angeles, California, DeNimes produces denim woven tops that are innovative & modern in design. The name of the company comes from the French name ‘serge de nimes,’ a fabric which originated in Nimes, France, which today has been shortened to denim.

Our product line is specifically designed on the current fashion trends & climate, so our customers can find quality and unique products they collect. We understand it is important that our customers know the origins of the product they are purchasing. We produce high quality denim woven tops for fashion conscious women. We strive in providing a top quality product that is fashionable, For the lifestyle of every woman.

DeNimes is a wholesale supplier of woven denim tops. We offer tank tops, t-shirts, tunics, and button down shirts made with 100% high quality denim. We searched the world for affordable denim that is top quality, in order to produce quality products for our clients.

Mission:

déNîmes aims to provide a sustainable choice with artisanal fabrication.

Values:

Preserve the environment Produce quality products Satisfy customer expectations Integrity Sustainability Power

Target Market e o l h C Chloe is 28 years old

She comes from a prestigious family from California She graduated from the New York school of Interior Design She is currently living in New York, working as an Interior designer She approximately makes $210,000 a year She is constantly attending fashion events and store openings She spends the weekends with her coworkers in The Hamptonâ&#x20AC;&#x2122;s She normally shops at Barneyâ&#x20AC;&#x2122;s New York & Neiman Marcus.

The DeNimes customer is a young woman with a successful working career that lives an active social life while still being environmentally cautious. She shops on a regular basis & is on top of the latest fashion trends. She specifically returns to brands that are sustainable & transparent, with products that are high in quality with unique & timeless designs.

Laragne Tank top

100% fine cotton

deNimes Button down

$125

100% fine cotton $225

Toulouse

Alsace

100% fine cotton

$395

$150

Tunic Top

t shirt

Country Analysis Focus Practices sustainability Efficient transportation Country morals / CSR

In selecting a country for the brand’s production, we filtered the countries based on their production of

denim and characteristics like politics, economy and labor status. The first factor being availability of workforce, resources and manufacturers specialized in denim and woven tops. A country with a stable political structure would decrease risk of financial assets long term, have open practices for foreign investors and help sustain fast lead-times. A growing economy increases possibilities of success as well as opportunities, less social unrest and better conditions.

Vietnam: OTEXA’s 3rd denim producer, and has a labor force of 2 million people. Dominate exporting ca-

Top distributors of denim tops

pability and highly potential domestic market. Low costs, skillful labor force with renovated and modernized equipment. Stable political environment and incentive policies. Investment capital estimated to an approximate $25 billion in 2020.

Positive investment opportunities

India: India’s apparel exports to developed market are expected to increase considerably. Has the poten-

Compatible business culture United States exporter Stable economy

tial to increase its textile and apparel share in the world trade from 4.5 % to 8% and reach US$ 80 million by 2020. They are number 2 in denim production according to the OTEXA, and have excellent quality of fabric.

Mexico: The country is part of NAFTA and has a short lead-time of 12 days with the USA, so it’s a great

backup manufacturing country. Mexican labor is kept cheap and competitive with other major export countries to keep the United States firms operating within the Mexican assembly plants. 11,600 manufacturing plants exporting $406.4 billion. * continued in Appendix

Supplier Analysis ESQUEL GARMENT MANUFACTURING CO. LTD

ZENTRIX INDUSTRIES LTD.

Mexico

Vietnam

Founded in 1997, Zentrix is a vertically integrated manufacturer of active wear. It’s a proactive company that focuses on improvement in order to provide constant innovation and material to their international markets like Reebok Uruguay, Adidas Do Brasil Ltda etc. Their quality system includes warping, knitting, washing, dyeing, printing, finishing, packaging, sewing, embroidery, screen-printing, cutting and product development.

Zentrix has a business type that focuses on women’s outer- wear followed by men’s apparel. Their average shipping weight is abut 757 kg, the location ensures shorter, easily trackable lead times & shipping options.

Esquel is one of the worlds leading producers of premium cotton shirts. Esquel manufacturers for the world’s best known and highly respectable brands like Hugo Boss, Brooks Brothers, Marks & Spencer, Nordstrom, and many more. Their production begins in Xinjiang province in China, where the group owns in own Extra Long Staple (ELS) Cotton and Organic Cotton, continues through spinning, weaving, dyeing, manufacturing, packaging, retailing. de Nimes chose this as its supplier because of its outstanding sourcing guidelines and because of the well known customers that gives us assurance in the service Esquel would be providing us with.

ORIENT CRAFT LTD.

India

Orient Craft Limited established over 40 years ago, is India’s #1 garment design house, backed by a large world class manufacturing infrastructure. Their top products are cotton and woven shirts. It facilitates 21 units and produces nearly 2,00,000 pieces per day. Cutting edge technology, modern infrastructure and innovation in design are some of the reasons why Denimes believes this is the best supplier. Not only that, OC has design studios where over a 1000 new samples are made every day. With OC’s brilliant sourcing guidelines uplifting the local, rural and marginalized sectors, Denimes believes that OC matches their supplier requirements very well. A few customers that OC services to are J Crew, American Eagle Outfitters, Chico’s, Old Navy, Michael Kors etc. With a lead- time of only 16 days, de Nimes believes in getting the best of the service from OC.

In Conclusion

After thorough research of each of the countries- India, Mexico and Vietnam along with their

matching suppliers, we were able to develop a sourcing strategy that would best maximize margins as a company for a long- term success. As aformentioned, de Nimes selected three countries, India, Mexico and Vietnam based on stable economy, practice of sustainability, efficient transportation, CSR matching our company, positive investment opportunities, big United States exporter, compatible business culture, good unionization and stable economy.

Vietnam: A few risks we saw while doing our research on Vietnam were underdeveloped apparel industry, unstable infrastructure, low quality sewing and long transportation time. Despite of the disadvantages, we took into consideration that according to the Office of Textiles and Apparel (OTEXA), for non knit shirts/blouses, Vietnam was ranked at #3 which Denimes saw a huge positive point for them. A few other benefits we were getting from doing business in Vietnam were that it has a strong work ethic, an average wage of only $0.49/hour, booming exports market and it is the 2nd fastest growing economy.

India: is taking initiatives in removing child labor and is about 20 hours away from Los Angeles in flight,

we still expect our suppliers to produce high quality products, as Indiaâ&#x20AC;&#x2122;s apparel industry is best known for its highly skilled workforce.

Mexico: did have a few risks like less developed infrastructure, low productivity and wages, weak economic development, lack of competitiveness, we looked at the fact that Mexico was going to be close to us, in Los Angeles. We also looked at how Mexico has the advantage of talented young workforce and political stability and it also attract advanced manufacturing, which best suited us for doing business in that country.

Appendix A b c d e f g h i

Sustainability COUNTRY ANAYLSIS SUPPLIER ANALYSIS Final Strategy Cost Sheets Country Ranking Supplier Ranking Margins Line Plan

Sustainability

When it comes to sustainability DeNimes envisions a world where out customers do not have to choose between energy and clothes, instead they can afford energy that us good for the planet. At DeNimes we have the responsibility to lead in the global transition to renewable energy starting from the start of our supply chain to the top.

We are committed on the development of on-site and off-site solar, wind, fuel cells and other technologies on our properties. To provide 20%-30% of the production energy needed per day and eventually 100%. We will continue to scale and develop energy-efficient technologies and leverage our global demand. Our transportation system of sourcing, shipping and overall logistics rotates around being efficient and using the less amount of fuel and energy for less damaging substances released in the environment.

DeNimes supports the Footprint Chronicles that works with a production number embedded in every denim garment. After the customer has bought the apparel they can go Online to our website and enter the number, which will re- sult in tracking information from the beginning of the supply chain to when it was sold. This access grips our transparency ideology and also gives out percentages of sustainability impact to for our customers to take into account and use to decrease. Once the customer believes they have worn-out the denim garment they have the option to donate it through UNICEF, and afterwards track the item through the same production number.

Country Analysis We filtered the countries based on their production of denim and characteristics like politics, economy and labor status. The first factor being availability of workforce, resources and manufacturers specialized in denim and woven tops. A country with a stable political structure would decrease risk of financial assets long term, have open practices for foreign investors and help sustain fast lead-times. A growing economy increases possibilities of success as well as opportunities, less social unrest and better conditions. So we evaluated countries based on their performance according to our expectation on the mentioned subjects. Another really important factor on our country decision process was relations with the US. Trade agreements and good foreign relations facilitate transportation and duty processes, so we focused on aiming for countries with trade agreements or trade organizations that facilitate business with the US. The last three countries were chosen based on ability with denim (OTEXA) and effort on supporting our fair labor initiatives, and quality. After completing our company guidelines we really got a sense of who we were as a brand and what we wanted to represent, so we reject abusive conditions of work in any way it can be subjected. We really focused on finding a country that would work alongside with organizations to enforce good working conditions, fair wages, no child labor, and proper unionization rights. With government support and watchfulness over its citizens working situations, guidelines are most likely to be monitored and our CSR and audits will be supported. Quality wise we want to offer our customers the best possible merchandise for the price.

Supplier Analysis From our supplier ranking process we have chosen, Tbg Apparel from Mexico, Orient Craft Ltd. from India, and Esquel Garment Manufacturing (Vietnam) Co. Ltd from Vietnam. We came to this conclusion mainly based off of the previous companies the suppliers worked with and if they corporate social responsibility (CSR) is based on what we set in place for DeNimes. Based off of their environmental, human rights, employee, and community standards we picked which supplier we felt customer with the best. Based on our mission statement of aiming to provide a sustainable choice with not only met our needs, but also could provide the DeNimes artisanal fabrication we picked the suppliers that not only match our mission but our company values. Integrity, sustainability, and brand power that are all in compliance with our company values were also a part that factored into our selection for suppliers per country. The customers that the suppliers served and the customers’ sustainability practices were also a major factor in our decisions for suppliers.

VIETNAM M ESQUEL GARMENT MANUFACTURING (VIETNAM) CO. LTD Esquel Group is one of the worlds leading producers of premium cotton shirts. Esquel manufacturers for the world’s best known and highly respectable brands like Tommy Hilfiger, Hugo Boss, Brooks Brothers, Abercrombie & Fitch, Marks & Spencer, Nordstrom, Nike and many more. Their production begins in Xinjiang province in China, where the group owns in own Extra Long Staple (ELS) Cotton and Organic Cotton, continues through spinning, weaving, dyeing, manufacturing, packaging, retailing. Denimes chose this as its supplier because of its outstanding sourcing guidelines and because of the well known customers that gives us assurance in the service Esquel would be providing us with. APL NOL VIETNAM LTD This supplier company exports products like polyester, industrials, dong nai etc. Three of its famous customers are Nike Inc, Under Armour Inc and Old Navy Llc. Information about this company is not very transparent. They also do not have a website which makes it challenging for Denimes to select them as their supplier for denim.

INDIA ORIENT CRAFT LTD Orient Craft Limited established over 40 years ago, is India’s #1 garment design house, backed by a large world class manufacturing infrastructure. Their top products are cotton and woven shirts. It facilitates 21 units and produces nearly 2,00,000 pieces per day. Cutting edge technology, modern infrastructure and innovation in design are some of the reasons why Denimes believes this is the best supplier. Not only that, OC has design studios where over a 1000 new samples are made every day. With OC’s brilliant sourcing guidelines uplifting the local, rural and marginalized sectors, Denimes believes that OC matches their supplier requirements very well. A few customers that OC services to are J Crew, American Eagle Outfitters, Chico’s, Old Navy, Michael Kors etc. With a lead- time of only 16 days, Denimes believes in getting the best of the service from OC. ATA SHANKAR APPARELS PVT LTD Established in 2004, ATA Shankar Apparels are one of the renowned organizations engaged in manufacturing and exporting an amazing collection of denim shirts, tops, womenswear and nightwear. They design, manufacture, pack and store the entire range of garment with the aid of latest and advanced machinery. In order to meet customer requirements, they offer a variety of selection in their process of fabrics, cuts, sizes and stitches. With their aesthetic range of garments they deliver to companies like Paper Cut Clothing Llc, Urban Outfitters, J Crew and many more. Their sourcing guidelines and their lead-time is what made Denimes hesitant in choosing them.

POONG IN VINA CO LTD DeNimes after thorough research found a supplier that produces fabric like knt, rayon, spandex, spandex knit etc. Customers like Chico’s Retail Services Inc, Macy’s Merchandising Group, G lil Apparel Group Ltd, source from there. Just like the Apl Nol Vietnam Ltd did not have a lot of information transparent, even Poong In Vina Co Ltd does not which makes it tough for Denimes. AARVEE DENIMS & EXPORTS LTD Aarvee Denims & Exports Ltd. Is world’s one of the largest vertically integrated denim mill, since 1988. They manufacture yarn, denim and non-denim fabrics and garments. Although their prime exporting products are denim fabrics and jeans, they don’t have well known customers from U.S that Denimes could look at their fabric quality in.

MEXICO MEXICO ZENTRIX INDUSTRIES LTD Founded in 1997, Zentrix is a vertically integrated manufacturer of active wear. It’s a proactive company that focuses on improvement in order to provide constant innovation and material to their international markets like Reebok Uruguay, Adidas Do Brasil Ltda etc. Their quality system includes warping, knitting, washing, dyeing, printing, finishing, packaging, sewing, embroidery, screen-printing, cutting and product development. Zentrix has a business type that focuses on women’s outer- wear followed by men’s apparel. Their average shipping weight is abut 757 kg, which is good to know if we were to supply from them then we can take this quantity into consideration. However since Zentrix specializes in active wear the most, for Denimes we believe in choosing suppliers that have first hand experience in manufacturing denim. WMGS de RL de CV WMGS is a private company founded in 2004, and is owned by WalMart. We took this supplier into consideration because of the safety and well being of workers across their supply chain, that Wal-Mart includes in their sourcing guidelines. Wal-Mart also believes in sustainability that matches Denimes’s CSR. The reason why we did not select Wal-Mart is because it is the customer and WMGS only focuses on Wal-Mart, which directly reflects on the difference between their price range and Denimes’s price range. Another thing is quality difference of the products, and how Wal-Mart has a different target market than Denimes. TBG APPAREL Tbg Apparel is an overseas supplier in Mexico that exports mainly denim products. Founded in 2006, Tbg Apparel has an average shipping weight of 2,035 kgs to customers like Levi Strauss and Leuru,that sparks Denimes, that assures high quality products. The only disadvantage of this supplier is that it does not have a personal website. It was very hard to find this much information of this supplier from just one site, Panjiva. Knowing and seeing some amazing results regarding their exports, Denimes believes this from all the other manufacturers in Mexico is the best for its company.

Final Strategy

After thorough research of each of the countries- India, Mexico and Vietnam along with their matching suppliers, we were able to develop a sourcing strategy that would best maximize out margins as a company for a long- term success. With the gathered information on each of the suppliers we chose from each other, we were able to commence a method that best placed our products.

Final Strategy of Countries As mentioned before, Denimes selected three countries, India, Mexico and Vietnam based on stable economy, practice of sustainability, efficient transportation, CSR matching our company, positive investment opportunities, big United States exporter, compatible business culture, good unionization and stable economy. (Provide chart, rather than wordings) Although India is taking initiatives in removing child labor and is about 20 hours away from Los Angeles in flight, we still expect our suppliers to produce high quality products, as India’s apparel industry is best known for its highly skilled workforce. Even though Mexico did have a few risks like less developed infrastructure, low productivity and wages, weak economic development, lack of competitiveness, we looked at the fact that Mexico was going to be close to us, in Los Angeles. We also looked at how Mexico has the advantage of talented young workforce and political stability and it also attract advanced manufacturing, which best suited us for doing business in that country. A few risks we saw while doing our research on Vietnam were underdeveloped apparel industry, unstable infrastructure, low quality sewing and long transportation time. Despite of the disadvantages, we took into consideration that according to the Office of Textiles and Apparel (OTEXA), for non knit shirts/blouses, Vietnam was ranked at #3 which Denimes saw a huge positive point for them. A few other benefits we were getting from doing business in Vietnam were that it has a strong work ethic, an average wage of only $0.49/hour, booming exports market and it is the 2nd fastest growing economy. Final Strategy of Suppliers Initially, there were nine suppliers chosen for each country, but after factoring their sourcing guidelines, ability to accommodate our volumes, product quality, lead times, as well as be able to provide us with value added services, we were able to select one supplier from each country. The suppliers that held the most promising service included, Orient Craft Ltd of India, Tbg Apparel of Mexico and Esquel Garment Manufacturing (Vietnam) Co. Ltd of Vietnam. Orient Craft: As previously mentioned, Orient Craft is one of India’s #1 garment design house, backed by a large world class manufacturing infrastructure. Customers like J. Crew, American Eagle Outfitters, Chico’s, Old Navy to name a few, and stable child labor. The one thing that caught our eye as a disadvantage was there lead-time that is 16 days and this is because of how highly diverse India is and with the vast state and regional festivals, it affects the lead-time. For TBG Apparels in Mexico, they have a vast variety of customers like Michael Kors, Chico’s, Old Navy, Guess and a few more. The sourcing guidelines that a company like Old Navy has shows how well the sourcing guidelines are for TBG Apparels for picking them to source, like they are good to employees, monitor checks and audits and it also helps the environment. Esquel Garment Manufacturing (Vietnam) Co Ltd., with a lead time of 21 days, and with outstanding customers like Patagonia, Ralph Lauren, Nike etc show how Esquel believes in serving the highest quality of products. Supplier Margins After we were done determining our best countries and best suppliers we developed our final placement strategy. With Orient Craft Ltd., being India’s top manufacturer, we decided to place it at 250,000 units and that is because India is well known for denim button down shirts. With this being said, we placed those units in our Nime (button down shirt) product and placed our margins that would be $79.20, averaging to a 52.94%. Since Zentrix Industries Ltd, has a first hand experience in manufacturing Denim, we placed 150,000 units for our product Toulouse (tunics). The supplier has higher costs per unit costing at $126.40 with margins at 52.94% totaling to $142.20. For our final country, Vietnam, the supplier Esquel Garment Manufacturing (Vietnam) Co. Ltd., has really good customers, so we trusted them with our products, Lyon (t-shirt) and Lorraine (tank tops). We placed in total 600,000 units, where we gave 200,000 units to Lorraine and 400,000 to Lyon, keeping in mind as to how the t-shirts will be sold year round. We placed our margins at $45 and $54 that came out to be 52.94% for Lorraine and Lyon respectively.

Mexico cost sheet MEXICO

BUTTON DOWN

MEXICO

TANK TOP

Style #: SS3167

Season: S/S 16

Wash:

Dark Wash

Style #: SS3167

Season: S/S 16

Wash:

Dark Wash

Style Name:

Nime

Wash Description:

cold wash with air tumble dry

Style Name:

Lorraine

Wash Description:

cold wash with air tumble dry

FABRICS

Mill

Stlye #

Description

$/yard

Yield

Total

FABRICS

Mill

Stlye #

Description

$/yard

Yield

Total

Denim

Deinmart S.A

3168

100% Cotton

$2.00

$4.00

Denim

Deinmart S.A

0008768

100% Cotton

$2.00

$4.00

TOTAL FABRIC COST

$2.00

COMPONENTS

Vendor

Style #

$/unit

Quantity

Total

COMPONENTS

Vendor

$/unit

Quantity

Total

Buttons

Botones Kaftor S.A

00679

0.03

0.4545

Buttons

Botones Kaftor S.A

0.0005

0.0025

Thread

Fufu’s Thread Ltd.

0.0012

116

0.1406

Thread

Fufu’s Thread Ltd.

0.0012

0.0788

Care Label

Textiles Leon S.A

0.05

0.0505

Care Label

Textiles Leon S.A

0.05

0.0505

Woven Label

Textiles Leon S.A

0.75

0.7575

Woven Label

Textiles Leon S.A

0.75

0.7575

1.4030

TOTAL COMPONENT COSTS

TOTAL COMPONEN COSTS

Style #

0.8893

PACKAGING

Vendor

Style #

$/unit

Quanity

Total

PACKAGING

Vendor

$/unit

Quanity

Total

Hangtags

Comercializadora Rubi

00876

0.1

0.101

Hangtags

Comercializadora Rubi

0.1

0.101

Polybags

Pei de Mexico S.A

0.06

0.0606

Polybags

Pei de Mexico S.A

0.15

0.1515

TOTAL PACKAGING COST

0.1616

PACKING

Vendor

Style #

$/unit

Quantity

Total

Cartons

Uline

13325

1.87

0.0584

Tape

0.01

Labels

0.06

TOTAL PACKING COST

0.1284

LABOR

Cost/minute

# of minutes

Total

Patternmaking

0.017

Grading

0.017

Marking

0.017

Cutting

0.169

Sewing

0.14

6.5

0.91

TOTAL PACKAGING COST

0.2525

PACKING

Vendor

Style #

$/unit

Quantity

Total

Cartons

Uline

13325

1.87

0.02597

Tape

0.01

Labels

0.06

TOTAL PACKING COST

0.09597

LABOR

Cost/minute

# of minutes

Total

Patternmaking

0.017

Grading

0.017

Marking

0.017

Cutting

0.169

Sewing

0.04

4.5

0.18

Washing

Admin

0.5

TOTAL LABOR

1.9 $5.00

Washing

Admin

0.5

TOTAL LABOR

2.63

*includes press & packing unless otherwise noted.

$8.00

*includes press & packing unless otherwise noted.

OTHER

Style #

Cost

# units

Total

OTHER

Cost

# units

Total

Freight

per container

1,800.00

20,000

0.09

Freight

per container

1,800.00

20,000

0.09

Duty

per container

Free Trade Agreement

Duty

per container

Free Trade Agreement

Broker

per container

500

per container

500

20,000

0.025

Broker

Total cost of product + insurance + freight

20,000

$8.00

Total cost of product + insurance + freight

$5.00

TOTAL OTHER

$8.12

TOTAL OTHER

$5.12

GRAND TOTAL

$8.00

GRAND TOTAL

$5.00

Mexico cost sheet MEXICO

T-SHIRT

MEXICO

TUNIC

Style #: SS3166

Season: S/S 16

Wash:

Dark Wash

Style #: SS3165

Season: S/S 16

Wash:

Dark Wash

Style Name:

Metz

Wash Description:

cold wash with air tumble dry

Style Name:

Toulouse

Wash Description:

cold wash with air tumble dry

FABRICS

Mill

Stlye #

Description

$/yard

Yield

Total

FABRICS

Mill

Stlye #

Description

$/yard

Yield

Total

Denim

Deinmart S.A

3166

100% Cotton

$2.00

Denim

Deinmart S.A

3165

100% Cotton

$2.00

2.75

$5.00

$2.00

TOTAL FABRIC COST

Vendor

Style #

$/unit

Quantity

Total

COMPONENTS

Vendor

Style #

$/unit

Quantity

Total

006578

TOTAL FABRIC COST COMPONENTS

$5.00

Thread

Fufu’s Thread Ltd.

0.0012

0.0776

Thread

Fufu’s Thread Ltd.

0.0012

116

0.1406

Care Label

Textiles Leon S.A

0.05

0.0505

Care Label

Textiles Leon S.A

0.05

0.505

Woven Label

Textiles Leon S.A

0.75

0.7575

Woven Label

Textiles Leon S.A

0.75

0.7575

0.8856

TOTAL COMPONENT COSTS

TOTAL COMPONENT COSTS Style #

0.9485

PACKAGING

Vendor

$/unit

Quanity

Total

PACKAGING

Vendor

Style #

$/unit

Quanity

Total

Hangtags

Comercializadora Rubi

0.1

0.101

Hangtags

Comercializadora Rubi

009873

0.1

0.101

Polybags

Pei de Mexico S.A

0.06

0.0606

Polybags

Pei de Mexico S.A

0.15

0.1515

TOTAL PACKAGING COST

0.1616

TOTAL PACKAGINGCOST

PACKING

Vendor

Style #

$/unit

Quantity

Total

PACKING

Vendor

Style #

$/unit

Quantity

0.2525 Total

Cartons

Uline

13325

1.87

Uline

13325

1.87

0.0584

0.03

Cartons

Tape

0.01

Tape

0.01

Labels

0.06

Labels

0.06

0.0959

TOTAL PACKING COST

0.1284

TOTAL PACKING COST LABOR

Cost/minute

Total

LABOR

Patternmaking

0.017

Patternmaking

0.017

Grading

0.017

Grading

0.017

Marking

0.017

Marking

0.017

Cutting

0.169

Cutting

0.7

Sewing

Washing

Admin

0.5

Admin

0.5

TOTAL LABOR

2.42

TOTAL LABOR

3.12

Sewing

0.14

# of minutes

*includes press & packing unless otherwise noted. OTHER

$6.00

*includes press & packing unless otherwise noted.

Cost

# units

Total

OTHER

20,000

0.09

Freight

Cost/minute

# of minutes

Total

0.169 0.14

1.4

$9.00 Cost

# units

Total

per container

1,800.00

20,000

0.09

Duty

per container

Free Trade Agreement

0.025

Broker

per container

500

20,000

0.025

Total cost of product + insurance + freight

$6.00

Total cost of product + insurance + freight

$9.00

TOTAL OTHER

$ 6.12

TOTAL OTHER

$ 9.12

GRAND TOTAL

$ 6.00

GRAND TOTAL

$9.00

Freight

per container

1,800.00

Duty

per container

Free Trade Agreement

Broker

per container

500

20,000

Vietnam cost sheet VIETNAM

BUTTON DOWN

Style #: SS3168

Season: S/S 16

Style Name:

Wash:

Nime

Wash Description:

VIETNAM

TANK TOP

Dark Wash

Style #: SS3166

Season: S/S 16

cold wash with air tumble dry

Style Name:

Wash:

Dark Wash

Wash Description:

cold wash with air tumble dry

FABRICS

Mill

Stlye #

Description

$/yard

Yield

Total

FABRICS

Mill

Stlye #

Description

$/yard

Yield

Total

Denim

Changzhou Ltd.

3168

100% Cotton

$2.75

Denim

Changzhou Ltd.

3167

100% Cotton

$2.75

$6.00

TOTAL FABRIC COST

Vendor

Style #

$/unit

Quantity

Total

COMPONENTS

Vendor

Style #

$/unit

Quantity

Total

TOTAL FABRIC COST COMPONENTS

$3.00

Buttons

Long Sky Corp.

0.07

1.0605

Buttons

Long Sky Corp.

0.07

0.3535

Thread

Long Sky Corp.

0.0015

116

0.1757

Thread

Long Sky Corp.

0.015

0.0985

Care Label

Qingdao Garment Co.

0.12

0.1212

Care Label

Qingdao Garment Co.

0.12

0.1212

Woven Label

Qingdao Garment Co.

0.75

0.7575

Woven Label

Qingdao Garment Co.

0.75

0.7575

$2.00

TOTAL COMPONENT COSTS

$/unit

Quanity

Total

PACKAGING

Vendor

$/unit

Quanity

Total

TOTAL COMPONENT COST Style #

1 Style #

PACKAGING

Vendor

Hangtags

GZ Yandu Paper Ltd.

0.3

0.303

Hangtags

GZ Yandu Paper Ltd.

0.3

0.303

Polybags

Yanhzgu Packing Co.

0.21

0.2121

Polybags

Yanhzgu Packing Co.

0.21

0.2121

$1.00

TOTAL PACKAGINGCOST

TOTAL PACKAGING COST

$1.00

PACKING

Vendor

Style #

$/unit

Quantity

Total

PACKING

Vendor

Style #

$/unit

Quantity

Total

Cartons

Uline

13325

1.87

0.0584

Cartons

Uline

13325

1.87

0.03

Tape

0.01

Tape

0.01

Labels

0.06

Labels

0.06

0.1284

TOTAL PACKING COST

Total

LABOR

Patternmaking

0.017

Patternmaking

0.017

Grading

0.017

Grading

0.017

Marking

0.017

Marking

0.017

Cutting

0.169

Cutting

0.169

TOTAL PACKING COST LABOR

Cost/minute

Sewing

0.06

# of minutes

6.5

0.095 Cost/minute

4.5

Total

0.39

Sewing

Washing

Admin

0.5

Admin

0.5

TOTAL LABOR

$2.11

TOTAL LABOR

$1.99

*includes press & packing unless otherwise noted.

0.06

# of minutes

0.27

$10.00

*includes press & packing unless otherwise noted.

Cost

# units

Total

OTHER

20,000

0.0975

Freight

20,000

0.025

Total cost of product + insurance + freight

$11.00

Total cost of product + insurance + freight

$8.00

TOTAL OTHER

$ 11.12

TOTAL OTHER

$8.12

GRAND TOTAL

$ 13.00

GRAND TOTAL

$ 8.00

OTHER Freight

per container

1,950.00

Duty

FTA

17%

Broker

per container

500

$8.00 Cost

# units

Total

per container

1,800.00

20,000

0.09

Duty

per container

17%

Broker

per container

500

20,000

0.025

Vietnam cost sheet VIETNAM

T-SHIRT

VIETNAM

TUNIC

Style #: SS3166

Season: S/S 16

Wash:

Dark Wash

Style #: SS3166

Season: S/S 16

Wash:

Dark Wash

Style Name:

Metz

Wash Description:

cold wash with air tumble dry

Style Name:

Toulouse

Wash Description:

cold wash with air tumble dry

FABRICS

Mill

Stlye #

Description

$/yard

Yield

Total

FABRICS

Mill

Stlye #

Description

$/yard

Yield

Total

Denim

Changzhou Ltd.

3166

100% Cotton

$2.75

Denim

Changzhou Ltd.

3166

100% Cotton

$2.75

2.25

$3.00

TOTAL FABRIC COST

TOTAL FABRIC COST Style #

$6.00

COMPONENTS

Vendor

$/unit

Quantity

Total

COMPONENTS

Vendor

$/unit

Quantity

Total

Thread

Long Sky Corp

0.0015

0.09696

Thread

Long Sky Corp

0.0015

116

1.7574

Care Label

Qingdao Garment Co.

0.12

0.1212

Care Label

Qingdao Garment Co.

0.12

0.1212

Woven Label

Qingdao Garment Co.

0.75

0.7575

Woven Label

Qingdao Garment Co.

0.75

0.7575

0.97566

TOTAL COMPONENT COSTS

$/unit

Quanity

Total

PACKAGING

Vendor

$/unit

Quanity

Total

TOTAL COMPONENT COSTS Style #

Style #

2.6361

PACKAGING

Vendor

Hangtags

GZ Yandu Paper Ltd.

0.3

0.303

Hangtags

GZ Yandu Paper Ltd.

0.3

0.303

Polybags

Yanhzgu Packing Co.

0.21

0.2121

Polybags

Yanhzgu Packing Co.

0.21

0.2121

TOTAL PACKAGING COST

Style #

$1.00

TOTAL PACKAGING COST

PACKING

Vendor

Style #

$/unit

Quantity

Total

PACKING

Vendor

Style #

$/unit

Quantity

$1.00 Total

Cartons

Uline

13325

1.87

Uline

13325

1.87

0.06

0.025972

Cartons

Tape

0.01

Tape

0.01

Labels

0.06

Labels

0.06

TOTAL PACKING COST

0.095

TOTAL PACKING COST

0.13

Total

LABOR

Patternmaking

0.017

Patternmaking

0.017

Grading

0.017

Grading

0.017

Marking

0.017

Marking

0.017

Cutting

0.169

Cutting

0.3

Sewing

Washing

Admin

0.5

Admin

0.5

TOTAL LABOR

$2.02

TOTAL LABOR

$2.32

*includes press & packing unless otherwise noted.

$6.00

*includes press & packing unless otherwise noted.

$12.00

LABOR

Cost/minute

Sewing

0.06

OTHER

# of minutes

Cost

# units

Total

OTHER

0.09

Freight Duty

Freight

per container

1,800.00

20,000

Duty

FTA

17%

20,000

Broker

per container

500

20,000

Cost/minute

# of minutes

Total

0.169 0.06

0.6

Cost

# units

Total

per container

1,800.00

20,000

0.09

FTA

17%

20,000

per container

500

20,000

0.025

Broker

Total cost of product + insurance + freight

$6.00

Total cost of product + insurance + freight

0.025 $12.00

TOTAL OTHER

$ 6.12

TOTAL OTHER

$12.12

GRAND TOTAL

$ 6.00

GRAND TOTAL

$12.00

India cost sheet INDIA

TUNIC

INDIA

T-SHIRT

Style #: SS3165

Season: S/S 16

Wash:

Style Name:

Toulouse

Wash Description:

Dark Wash

Style #: SS3166

Season: S/S 16

Wash:

Dark Wash

cold wash with air tumble dry

Style Name:

Metz

Wash Description:

cold wash with air tumble dry

FABRICS

Mill

Stlye #

Description

$/yard

Yield

Total

FABRICS

Mill

Stlye #

Description

$/yard

Yield

Total

Denim

Asian Consumables India

0005674

Denim Fabric

$2.25

2.75

$6.25

Denim

Asian Con

000598457

Denim Fabric

$2.25

$2.27

TOTAL FABRIC COST

$6.25

COMPONENTS

Vendor

Thread

Style #

$/unit

Quantity

Total

Sivasakthi Threads

0.0012

116

0.1405

Care Label

Vasants Labels Pvt Lt

0.04

0.0404

Woven Label

Unique Tags Private Lt

0.02

0.0202

TOTAL COMPONENT COSTS

0.2019

PACKAGING

Vendor

Style #

$/unit

Quanity

Total

Hangtags

Red Prints

1446

0.02

0.0202

Polybags

Stallone

DCS17

0.28

0.2828

TOTAL PACKAGING COST

0.303

PACKING

Vendor

Style #

$/unit

Quantity

Total

Cartons

Uline

13325

2.2

0.0688

Tape

0.01

Labels

0.06

TOTAL PACKING COST

0.1388

LABOR

Cost/minute

# of minutes

Total

Patternmaking

0.1

Grading

0.1

Marking

0.1

Cutting

0.1

Sewing

0.08

0.8

Washing

Admin

0.5

TOTAL LABOR

2.7

*includes press & packing unless otherwise noted.

$9.59

OTHER

Cost

# units

Total

Freight

per container

3100

20,000

0.155

Duty

per container

24%

20,000

$ 23.59

Broker

per container

500

20,000

0.025

Total cost of product + insurance + freight

$9.75

TOTAL OTHER

$ 57.11

GRAND TOTAL

$ 33.34

TOTAL FABRIC COST

$2.27

COMPONENTS

Vendor

$/unit

Quantity

Total

Thread

Sivasakthi Threads

Style #

0.0012

116

0.1405

Care Label

Vasants Labels Pvt Lt

0.04

0.0404

Woven Label

Unique Tags Private Lt

0.02

0.0202

TOTAL COMPONENT COSTS

0.2012

PACKAGING

Vendor

Style #

$/unit

Quanity

Total

Hangtags

Red Prints

1446

0.01

0.0101

Polybags

Stallone

DCS17

0.28

0.2828

PACKING

Vendor

Style #

$/unit

Quantity

Total

Cartons

Uline

13327

1.87

0.02

TOTAL PACKAGING COST

0.2929

Tape

0.01

Labels

0.06

TOTAL PACKING COST

0.09

LABOR

Cost/minute

# of minutes

Total

Patternmaking

0.0008

Grading

0.0008

Marking

0.0008

Cutting

0.0008

Sewing

0.08

0.4

Washing

Admin

0.5

TOTAL LABOR

1.9032

*includes press & packing unless otherwise noted.

$4.77

OTHER

Cost

# units

Total

Freight

per container

3100

20,000

0.155

Duty

per container

24%

20,000

$ 11.91

Broker

per container

500

20,000

0.025

Total cost of product + insurance + freight

$4.92

TOTAL OTHER

$17.01

GRAND TOTAL

$16.83

India cost sheet INDIA

BUTTON DOWN

INDIA

TANK TOP

Style #: SS3168

Season: S/S 16

Wash:

Dark Wash

Style #: SS3167

Season: S/S 16

Wash:

Dark Wash

Style Name:

Nime

Wash Description:

cold wash with air tumble dry

Style Name:

Lorraine

Wash Description:

cold wash with air tumble dry

Description

$/yard

Yield Total

FABRICS

Mill

Stlye #

Description

$/yard

Yield Total

Denim Fabric

$2.25

$4.55

Denim

Asian Consumables India

0005776

Denim Fabric

$2.25

$4.55

TOTAL FABRIC COST

FABRICS

Mill

Denim

Asian Consumables India 0007897

Stlye #

TOTAL FABRIC COST

$2.27 $2.27

COMPONENTS

Vendor

Style #

$/unit

Quantity

Total

COMPONENTS

Vendor

Style #

$/unit

Quantity

Total

Buttons

Prashant Ha

123

0.03

0.4545

Buttons

Prashant Ha

146

0.03

0.1515

Thread

Sivasakthi Threads

0.0012

116

1.4059

Thread

Sivasakthi Threads

0.0012

0.7878

Care Label

Vasants Labels Pvt Lt

0.05

0.0505

Care Label

Vasants Labels Pvt Lt

0.04

0.0404

Woven Label

Unique Tags Private Lt

0.05

0.0505

Woven Label

Unique Tags Private Lt

0.02

0.0202

TOTAL COMPONENT COSTS

1.5069

TOTAL COMPONENT COSTS

PACKAGING

Vendor

Style #

$/unit

Quanity

Total

PACKAGING

Vendor

Style #

$/unit

Quanity

Total

Hangtags

Red Prints

1446

0.01

0.0101

Hangtags

Red Prints

1225

0.02

0.0202

Polybags

Stallone

DCS17

0.08

0.0808

Polybags

Stallone

DCS17

0.06

0.0606

0.1818

TOTAL PACKAGING COST PACKING

Vendor

Style #

$/unit

Quantity

Total

Uline

13327

1.87

0.03

TOTAL PACKAGING COST PACKING

Vendor

Style #

$/unit

Quantity

Total

Cartons

Uline

13325

1.87

0.1394

0.0808

0.05

Cartons

Tape

0.01

Tape

0.01

Labels

0.06

Labels

0.06

TOTAL PACKING COST

0.13

TOTAL PACKING COST

0.096

LABOR

Total

LABOR

Patternmaking

Cost/minute

0.0008

Patternmaking

0.045

Grading

0.0008

Grading

0.045

Marking

0.0008

Marking

0.045

Cutting

0.0065

Cutting

0.52

Sewing

Washing

Admin

0.5

Admin

0.5

TOTAL LABOR

2.02

TOTAL LABOR

1.9995

Sewing

0.08

# of minutes

6.5

*includes press & packing unless otherwise noted. OTHER

$8.39

*includes press & packing unless otherwise noted.

Cost

# units

Total

OTHER

Cost/minute

# of minutes

Total

0.0045 0.08

4.5

0.36

$4.59 Cost

# units

Total

Freight

per container

3100

20,000

0.155

Freight

per container

3100

20,000

0.155

Duty

per container

24%

20,000

$ 20.68

Duty

per container

24%

20,000

$ 11.48

Broker

per container

500

20,000

per container

500

20,000

0.025

Broker

Total cost of product + insurance + freight

$ 8.55

Total cost of product + insurance + freight

$ 4.74

TOTAL OTHER

$ 29.41

TOTAL OTHER

$ 16.40

GRAND TOTAL

$ 28.23

GRAND TOTAL

$ 16.22

Country Ranking

Country Ranking Mexico Explanation

India

Explanation

Vietnam Explanation

Business Climate

Warm and welcoming

Warm and welcoming, experiencing economic growth

Warm and welcoming

Costs

Stable, leveled

Cheap labor

Cheap labor, and sable economy

Government

Stable and getting better, a good value

Stable, taking imitative regarding the government

Stable, but fighting corruption and working on imporvements

Location

Close proximity, great location to LA

Far distance but next to Indian Ocean trade route

Far distance to get to Los Angeles

Risks

Hijackings, and other gang related violence

Tensions with Pakistan, strikes leading to civic disturbances and violence

Active droughts and monsoons season

Social Stability

Stable, polychromatic social system in place

Hierarchical system in place

Socially aware and growing

Sourcing Guidelines

Stable, but be aware of social violations made

Labor laws in place

Laws in place but aware of social violations

Textile Industry

Developed for denim and growing within other industries

Biggest in Central America, export a lot to different countries

Great textile industry and growing

Trade Agreements

Most important with the USA

No trade agreements with USA, seeking new ones with East Asian countries and USA

BTA-U.S trade agreement & TPP

Trained Work-force

Multiple trained work forces available

Skilled and qualified labor force

Child labor and awful working conditions

Socio-Eco-Political

Stable and growing

Harmless religion issues, major economic growth

Stable, and growing for the future

Total

Average

8.2

6.8

7.0

Supplier Ranking

Supplier Ranking Mexico

India

Vietnam

Zentrix Industries Ltd.

WMGS de RL de CV

Tbg Apparel

Orient Craft Ltd.

ATA Shankar Apparels Pvt,. Ltd.

Aarvee Denims & Exports Ltd.

Abilities

Capacity

Lead-time

Quality

Customers

Sourcing Guidelines

Services Offered

Strategic Outlook

7.625

9.375

8.5

8.25

8.875

7.75

7.875

Total Average

Esquel Garment Apl Nol Vietnam Ltd. Poong In Vina Co., Ltd. Manufacturing (Vietnam) Co. Ltd

Margins

DeNimes Margins

Total Units

1,000,000

Wholesale Cost per Unit Margin %

MEXICO

VIETNAM

INDIA

Supplier: Tbg Apparel

Supplier: Orient Craft Ltd.

Tunic 150,000

Supplier: Esquel Garment Manufacturing (Vietnam) Co. Ltd Tank 200,000

T-Shirt 400,000

Button Down 250,000

$268.60 $9.00 $259.60 96.65%

$85.00 $8.00 $77.00 90.59%

$102.00 $6.00 $96.00 94.12%

$149.60 $28.99 $120.61 80.62%

$40,290,000 $1,350,000 $38,940,000

$17,000,000 $1,600,000 $15,400,000

$40,800,000 $2,400,000 $38,400,000

$37,400,000 $7,247,500 $30,152,500

Total Wholesale Total Purchase Total Margins

$135,490,000 $13,797,500 $121,692,500

Avg. Wholesale Avg. Purchase Avg. Margins Avg. Margin %

$135.49 $13.80 $121.69 89.82%

$268.60 $9,00 $259.60 96.65%

$85.00 $8.00 $77.00 90.59%

$102.00 $6.00 $96.00 94.12%

$149.60 $28.99 $120.61 80.62%

Avg. Cost/Unit

$121.69

$259.60

$77.00

$96.00

$120.61

Line Plan Season

Style #

Name

Spring/Summer

Summer

January Februray March (Quantities) (Quantities) (Quantities)

Fall/Winter

Holiday

April May June July August (Quantities) (Quantities) (Quantities) (Quantities) (Quantities)

SeptememOctober Novemeber December ber (Quantities) (Quantities) (Quantities) (Quantities)

Total

S/S 3166 T-Shirt

400,000

10,000

15,000

25,000

45,000

65,000

70,000

65,000

45,000

20,000

10,000

400,000

S/S 3165 Tunic

150,000

3,000

5,000

25,000

30,000

25,000

15,000

5,000

4,000

3,000

150,000

S/S 3167 Tank

200,000

3,500

4,000

20,000

30,000

50,000

20,000

6,000

3,500

200,000

S/S 3168 Button Down

250,000

7,000

5,000

20,000

30,000

12,000

40,000

30,000

7,000

250,000

Total

23,500

30,500

39,000

110,000

150,000

162,000

152,000

120,000

71,000

47,500

23,500

1,000,000

Style #

Name

Wholesale (per unit)

Wholesale (total)

S/S 3166 T-Shirt

400,000

$ 48.00

$ 19,200,000.00

S/S 3165 Tunic

150,000

$ 126.40

$ 18,960,000.00

S/S 3167 Tank

200,000

$ 40.00

$ 8,000,000.00

S/S 3168 Button Down

250,000

$ 70.40

$ 17,600,000.00

Average

$ 71.20

$ 15,940,000.00

Works Cited India Country Report, N.p., n.d. Web. 20 May 2015. Mexico Country Report. N.p., n.d. Web. 20 May 2015. "Panjiva." MyPanjiva Dashboard. N.p., n.d. Web. 20 May 2015. Vietnam Country Report. N.p., n.d. Web. 20 May 2015. "WGSN Image Library." Image Library. WGSN, n.d. Web. 20 May 2015.

Gavin Walters. Ericka McGriff. Isa Espinal. Punya Chanana. Sofia Molinaro.

Final-Fasm440- Prof. Canepa