Coco Blanco

COCO BLANCO BRANDON CROCKER ¦ DARYN HUGHES-BOYKIN ¦ MARK ANTHONY NASH

ABSTRACT

This book contains the global sourcing strategy for Coco Blanco – a hypothetical men’s swimwear brand designed by Brandon Crocker, Daryn Hughes-Boykin, and Mark Anthony Nash at the Savannah College of Art & Design. Included is our Strategy Development Process, Strategy Development, Sourcing Strategy, and Distribution Strategy. Overall, this documents the research and findings necessary in developing a swimwear collection sourced across the globe. In particular, we researched and contacted companies located in Egypt, Peru, and the Philippines. Through our findings, we decided on sourcing our luxurious swimwear fabrics in Italy through Carvico. We also discovered through costing rates and country research that Egypt would be the best location to manufacture our different styles of swimwear. Not only were the production costs less expensive in Egypt – but Egypt also offers a Qualifying Industrial Zone (QIZ) which ensures duty-free products to be shipped into the United States. For our Egyptian manufacturer, we chose Arafa Holding – due to its vertically integrated supply chain model, high standards, and impressive list of clientele. Once the merchandise docks at the Miami seaport through our transporter, ZIM Integrated Shipping Services Ltd. - it will be distributed through our e-commerce site and store locations in Miami, Los Angeles, San Francisco, and Honolulu. Being a global business, with future expansion to the European market – we chose XPO Logistics to handle the warehousing and distribution of our products. Through this sourcing strategy, we are confident that we will be supplying men beautifully crafted swimwear of opulent quality that offers the experiential lifestyle of Coco Blanco.

TABLE

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CONTENTS

INTRODUCTION 5-6

BRAND OVERVIEW 7 - 12

STRATEGY DEVELOPMENT PROCESS 13 - 66

STRATEGY DEVELOPMENT 67 - 70

SOURCING STRATEGY 71 - 82

DISTRIBUTION STRATEGY 83 - 92

CONCLUSION 93 - 94

APPENDIX 95 - 135

INTRODUCTION

The following is a supply chain strategy for Coco Blanco. Included, we will cover our Brand Overview, Strategy Development Process, Strategy Development, Sourcing Strategy, and Distribution Strategy. Throughout the Brand Overview we will discuss our company values, product, distribution channels, target consumer, replenishment process, and price point. The Brand Overview will also detail our mission & vision statement, sourcing guidelines, while finishing with our production volumes. We will then provide our Strategy Development Process. The Strategy Development Process will include our country report on Egypt, Peru, and the Philippines as potential locations to manufacturer our swimwear product. Through this research we will then provide our country analysis through SWOT diagrams as well as a country rankings chart based on qualitative topics. In the end of our Strategy Development Process we will supply the costing rates to manufacture and supply our product within Egypt, Peru, and the Philippines. Our Strategy Development will include the evaluations of our chosen country with preliminary vs. initial quote evaluations. Third, we will include our Sourcing Strategy. This particular strategy will outline the explanations of our chosen country and supplier with a line plan margins chart. Lastly, we will include our Distribution Strategy. This strategy will showcase our channels of distribution along with our selected logistics company.

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BRAND OVERVIEW

COCO BLANCO

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PART I

COMPANY VALUES

Luxury Quality Sustainability Innovation Authenticity Customer Experience Community Diversity

Our company aims to deliver luxury men’s swimwear to all of our customers. Our fabrics are sourced from Italy from the sustainable and eco-friendly supplier, Carvico. In store and online, we strive to give an unmatched customer experience. We are passionate about our innovative swimwear design and want to share that with our customers. Within the company, we aim to create an authentic and honest environment where every employee feels valued and respected. We want to work together to create a community of creatives - where everyone feels welcome. In addition, diversity is incredibly important to our company. We fully support every person included in the company regardless of race, gender, sexual orientation, or social class.

PRODUCT

Inspired by the aesthetic nature of Miami – Coco Blanco is a lifestyle brand that provides luxury men’s swimwear that reflects the adventure and beauty of the vibrant city itself. Coco Blanco swimwear is offered in trunk, short, and brief styles. We offer sizing that will accommodate waist sizes from 28” to 40” with our sizes to include S, M, L, XL and XXL. Our colors will be in neutral tones with pops of color that reflect the aesthetic nature of Miami and also the current Pantone color trends. Our designs will include prints that are in line with the branding and design of our product. Each style will come in the classic Coco Blanco color, Bright White.

DISTRIBUTION

Due to the ever-changing nature of distribution channels – Coco Blanco will be offering men’s swimwear in beautiful store locations in Miami, Los Angeles, San Francisco, and Honolulu. We have plans to expand our business to the European market with store locations in Italy, Spain, and Greece. We will also be carrying our assortment of men’s swimwear on our website (www.cocoblanco.com) which will fulfill orders globally.

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TARGET CUSTOMER

Coco Blanco is marketed towards affluent men who enjoy spending time in and near the water and sun. Our target consumer is between the ages of 25 and 49 years old. He makes an average annual income of $150,000 - $350,000 and resides near the glistening beaches of Miami. He enjoys spending his time experiencing new places abroad while purchasing the finest luxury goods. Our consumer is a jet setter who enjoy traveling and seeks stylish swimwear to set them apart - whether it’s for taking a lap in the pool, sunbathing on the beach, or taking a cruise on the yacht.

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REPLENISHMENT

At the beginning of each season, Coco Blanco will be offering an assortment of men’s swimwear styles in a variety of colors and patterns within our sizing guidelines. These styles will be displayed visually throughout our brick & mortar locations as well as our website. Once our store locations begin to sell through a certain style, our distribution center will monitor the low inventory level and send out a second size run.

PRICE POINT

As a luxury brand, our swimwear is priced at an average $250 for trunks and $130 for briefs. Our retail value is dependent on the materials, quality, and craftsmanship that we put into every garment.

MISSION & VISION STATEMENT

Coco Blanco’s mission is to provide men with luxury swimwear that integrates the vibrant culture of Miami into every design.

Adventurous, contemporary, vibrant - Coco Blanco’s vision is to represent the culmination of international craftsmanship, consistently striving to serve as the industry standard of quality and innovation. As a lifestyle brand, we want our swimwear to be an essential item when he thinks of escapading to the water.

SOURCING GUIDELINES

Coco Blanco holds its suppliers and vendors to the highest standard and aims to be transparent throughout the sourcing process. To ensure that suppliers and vendors are meeting our expectations, there will be an extensive assessment of all facilities before creating a partnership. Employees that work closely with and within the supply chain will be trained on recognizing the unethical behaviors of company facilities. We value the fair treatment and equal rights of all people. Coco Blanco commits to using ethical practices and does not support any form of slavery or human trafficking in the making of our products. All facilities must adhere to federal regulations and industry standards to provide a safe and comfortable work environment. Coco Blanco will communicate with all suppliers to ensure the enforcement of these policies to improve working conditions. Fashion is one of the most polluting industries, globally. Therefore, we want to do our best in trying to decrease our ecological footprint. We require our supply chain to use the HIGG Index to monitor and qualify our impact. The HIGG Index measures energy use, greenhouse gas emissions, water use, air emissions, waste management, and chemical use and management. Coco Blanco encourages all of its partners to reuse, reduce, and recycle.

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PRODUCTION VOLUMES

The following graph shows the production volumes of our swimwear line for the year of 2019. Particularly for Emiliano, Mateo, and Gabriel. As demonstrated, during the spring and summer months we will be at our highest peak in production volumes.

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STRATEGY DEVELOPMENT PROCESS

COCO BLANCO

PART II

The Strategy Development Process is a very important piece to Coco Blanco’s supply chain strategy. In this section, we will uncover our country selection and how we narrowed down the field to our final country selection. This will summarize information about the country and textile industry, our potential suppliers, costing, and margin requirements.

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COUNTRY

RESEARCH

Coco Blanco aims to have the greatest products in the market. In order to do that, we need to partner with the best suppliers and vendors.

Coco Blanco researched several countries globally and narrowed it down to three to potentially source and manufacture our products in. Egypt, Peru, and the Philippines have great reputations for producing high quality apparel products. We researched country stability, culture, domestic suppliers, and the state of the apparel industry.

Through this research, we were able to choose the country that would be able to meet all of our needs.

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EGYPT

The overall goal of this report is to develop an efficient, yet sustainable sourcing strategy that will serve as an advantageous foundation within an apparel supply chain. The research compiled analyzes Egypt’s textile manufacturing industry, while highlighting numerous substantial factors which influence its production, ranging from the country’s stability to its geographical significance.

Furthermore, this report aims to address procedures set forth to minimize contingencies while maximizing opportunities.

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COUNTRY STABILITY Since November 2016, the Egyptian national currency (EGP) has fallen in value after its floatation by Egypt’s Central Bank and has only somewhat strengthened subsequently, despite improvements in various economic indicators (El-Bahary, 2018). Nevertheless, inflationary pressures are expected to decline in the near future through numerous initiatives such as increasing loan rates and foreign direct investment (Willis Towers Watson, 2018). Powerful countries like the United States and China are heavily investing into Egypt’s economy as the weaker pound creates lucrative business expenditures (Noueihed, 2017). To be more specific, the Egyptian pound’s devaluation presents a significant reduction in labor costs for foreign investors (Noueihed, 2017). Although the volatile nature of the EGP negatively impacts Egypt’s citizens due to high inflation, consequently reducing domestic consumerism, it is beneficial in this situation, where an American company sources there, but sells at home.

LEAD-TIME OF PRODUCTION On average, the lead-time for a woven garment is around 75 to 120 days (Belgum, 2017). The reason for this extensive turnaround is because Egypt sources most of its fabric from international mills (Belgum, 2017). However, these times may be reduced considerably through vertical integration. For example, one of the chosen suppliers, Kabo (Figure 4), is a vertically integrated manufacturer with an average production lead-time of six to eight weeks (Kabo). This is route is seemingly more favorable considering the production time is practically split cut in half. In terms of external conditions such as environmental effects, rising sea levels have been a concern for the past few years (Arraf, 2017). Potential flooding is an immense threat to the supply chain as it affects not only transportation logistics, but also the manufacturers located in major coastal cities like Alexandria (Arraf, 2017). Natural disasters such as this are absolutely detrimental to lead-time performance.

DATE

HOLIDAY

January 07

Coptic Christmas Day

January 25

Revolution Day

April 08

Coptic Easter Sunday

April 09

Sham El Nessim

April 25

Sinai Liberation Day

May 01

Labour Day

June 15

End of Ramadan

June 16

End of Ramadan Day 2

June 17

End of Ramadan Day 3

June 18

End of Ramadan Day 4

July 01

Revolution Day

July 23

Revolution Day

August 20

Arafat Day

August 21

Eid Al Adha

August 22

Eid Al Adha Holiday

August 23

Eid Al Adha Holiday

August 24

Eid Al Adha Holiday

September 11

El Hijra

October 06

Armed Forces Day

November 20

Moulid El Nabi

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CULTURAL INSIGHTS When conducting business internationally, it is imperative to understand a country’s culture in order to communicate in an effectively and respectful manner. One’s cultural awareness can either make or break business opportunities on foreign soil, thus researching the history and customs of a country before visiting should be a priority. As one would imagine, culture in the West (US) differs immensely from that of the Middle East (Egypt). This section identifies some of the key differences that bare an impact when interacting with Egyptian natives. They are as follows: • It's best to avoid speaking about religion and/or politics until a strong bond is established.

• Personal space between members of the same sex is generally at a minimum. Less than an arm’s length is common.

• Touching during conversations is typically inappropriate, especially with the opposite sex.

• Direct eye contact is acceptable between the same sex.

• Promptness is neither expected no valued, whether it be with acquaintances or with customer service.

• Eating communal food with the left hand should be avoided, as this is used for personal hygiene while the right hand is utilized for greeting, eating, and passing things.

• Egyptian society is generally quite conservative, especially in rural areas, thus it is necessary to refrain from showing emotions in public, drinking alcohol, casual interactions with the opposite sex, and wearing revealing attire if female.

• Conservative suits and ties (men) and dresses (women) in darker colors are common for initial meetings. The acceptance of business casual attire is becoming more prevalent in various industries.

• If an individual has the qualification of an engineer or doctor, then it is required that the title be used.

• When handling business cards, it is best to treat the card with respect, distributing and receiving them with the right hand.

• Although time is not valued highly, it is best to arrive on time for meetings.

• Small talk is common. The host of the meeting should begin the business discussion and end it.

• It is recommended to allow the Egyptian host to dictate the agenda.

• Negotiating is expected. Egyptians tend to be very emotional people, so showing some emotion can be beneficial in certain situations, though any hard-selling or high-pressure tactics should certainly be avoided.

• Because Egyptians tend to favor an indirect communication style, a "yes" may not always signify the closing of a negotiation. It is important to observe the body language which accompanies a particular response (Culture Crossing, 2017).

Following simple cultural guidelines such as these will ensure smooth interaction and can ultimately result in successful negotiation.

STATE OF THE APPAREL & TEXTILE INDUSTRY Egypt’s textile and apparel industry has been experiencing a revival, restoring its focus on producing quality cotton crops (Oxford Business Group, 2018). According to the Ministry of Trade and Industry (MTI), textiles are one of the most vital industries which have helped shift Egypt’s trade balance in 2017, yielding a 12% increase in exports while imports declined by 59% (Oxford Business Group, 2018). Minister of Trade and Industry, Tarek Kabil, revealed that the textiles industry contributed 3% to GDP, employed around one-third of the industrial labor force, and accounted for 15% of all non-petroleum exports this past year (Oxford Business Group, 2018). Global bank HSBC noted in a 2016 report that more than 4000 companies operate throughout Egypt, 196 of them in free zones (). Additionally, Egypt’s Qualified Industrial Zone (QIZ) initiative, which allows products manufactured in an Egyptian QIZ to be exported to the U.S. with a tariff rate of zero, have made it a preferred destination for American businesses (Oxford Business Group, 2018). With nonexistent tariffs, it comes as no surprise that the U.S. imports 53.5% of ready-made garments produced in Egypt, making it the largest textile export destination (Oxford Business Group, 2018).

According to the Bureau of Labor Statistics, the minimum monthly wage for textile and apparel manufacturers in the United States is $1,864 USD. In contrast, the minimum wage for textile and apparel manufacturers in Egypt is significantly lower, at E£ 1,200 ($174 USD) a month (Ashraf, 2017). This presents a substantial reduction in labor costs for American companies sourcing in Egypt rather than domestically.

Most recently, Egypt’s government disclosed plans to develop the largest textile and apparel city in the country (Textile Today, 2018).

The $2 billion project which is primarily funded by foreign investment, accounting for 87% of capital, while the remaining 13% comes from local investment, will include 568 factories and cover an area of 3.1 million square meters in Sadat City (Textile Today, 2018). This

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development is very promising to the advancement of Egypt’s textile industry and overall economy as it is estimated to provide direct employment of up to 160,000 jobs, with annual production valued at $9 billion (Textile Today, 2018).

SUPPLIERS WITHIN THE COUNTRY See Figure 4. Arafa Holding, Velocity Apparelz, and Kabo are three of the most reputable, high performing textile and apparel manufacturers located in Egypt. These companies produce a vast array of knitwear and woven garments for men, women, and children.

It is also notable that of these three companies, Arafa Holding and Kabo are vertically integrated, giving them a strategic advantage over competitors.

TRADE AGREEMENTS As mention previously, the United States is one of Egypt’s largest trade partners, especially in textile and apparel industries. Egypt has in essence laid the foundation for a free trade future, by employing two initiatives – the U.S. Generalized System of Preferences and Qualifying Industrial Zones, which are designed to increase exports to the U.S. (AmCham, 2018). The U.S. Generalized System of Preferences, or GSP, is a preferential treatment program that grant certain products eligibility for duty-free entry into the U.S. under certain requirements (AmCham, 2018). The Qualifying Industrial Zones, otherwise known as QIZ, is a one-way free trade agreement that combines Egyptian and Israeli components in manufactured goods from designated industrial zones which enter the U.S. duty-free (Am-Cham, 2018). These trade agreements are extremely valuable to U.S. businesses as they increase access to higher-quality goods at lower costs, allowing for more competitive rates in the marketplace.

PRODUCT CLASSIFICATION The HTS code is 6112.31.0010. This is the code for swimwear made from synthetic fibers for men.

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RISK & BENEFITS Based on the research compiled, it is evident that the pros greatly outweigh the cons for American companies sourcing in Egypt. In terms of benefits, the devaluation of the Egyptian pound allows for cheap labor costs, trade incentives permit duty-free exports to the US, and the flourishing state of Egypt’s textile industry creates greater opportunities for direct foreign investment. It seems the only downside is the contingency of natural disasters. Elevated sea levels and flooding may threaten supply chain operations ranging from manufacturing to shipping.

CONCLUSION With the Egyptian government’s refocus on textiles, the industry is prepared to take on an even more significant role in global exports.

Egypt’s proximity to the EU, as well as to Africa and the MENA region combined with the competitive advantages of its Suez Canal Economic zone provide strategic, unexploited markets for quality and competitively priced goods (Oxford Business Group, 2018). As mentioned throughout this report, the financial benefits for foreign investors are overwhelming, making Egypt an ideal sourcing location for any supply chain.

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PERU

This report will take a look at Peru’s government, economy, and culture. It will also analyze the state of the apparel and textile industry within the country. When combining this research, it will create a full picture of the nation. This will give insight to the possibility of whether or not Peru is a viable option for new business, specifically in sourcing apparel and textiles. In the end, the report will weigh the risks and benefits of working with Peru based off of the research collected.

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COUNTRY STABILITY Political Peru has a constitutional democratic republic, meaning they have an executive branch made up of a president and a prime minister.

Both, the executive and legislative branches, are able to introduce legislation. Their current president is Martin Vizcarra and their prime minister is César Villanueva. Vizcarra was recently sworn in as president after President Pedro Pablo Kuczynski had to resign in March because of corruption allegations.

Peru has a long history of corruption in government, and President Vizcarra is trying to set things straight for the remainder of his term. His goals are to strengthen the economy, create jobs, rebuild citizen’s faith, and improving education and social issues. He also must continue the rebuild the infrastructure and damage done by the severe flooding last year and the former president.

Economic Peru is considered to be an emerging market. It beat Brazil, Russia, India, and China as having the greatest potential in an emerging market on Grant Thornton’s list (Overseas Business Risks – Peru 1). Economically, the country is doing well. This is determined by its macroeconomic indicators. The Gross Domestic Product for the country is steadily growing at an average of 5%. The exchange rate for their currency has been steady. The Peruvian currency is called the Sol. As of the writing of this report, the Sol is equivalent to $0.30 USD. Inflation is low and poverty levels have decreased from 58.7% in 2002 to 20.7%. The current minimum wage in Peru is 930 soles per month, which is equivalent to $284. This wage was recently raised in April 2018 before President Kuczynski resigned.

Unemployment rates have not performed as well due to destruction and damage from the El Niño flooding and corruption scandals.

“El Niño caused a US $3.1 billion loss (1.8% of GDP) in damages to houses, crops, roads and bridges affecting more than a million people” (Overseas 2). The destruction caused to infrastructure and agriculture increased unemployment, as well as large construction projects shut down by corruption.

Overall, Peru’s average economic growth rate is 2.5%, which is greater than the Latin American average of 1.4%. Peru is also higher than its competing markets, Chile, Columbia, and Mexico. Peru has great relations globally. When it comes to trade, over 92.2% is covered by a Free Trade Agreement (Overseas 2). The country has agreements with the U.S., European Union, United Kingdom, and many others. They are also a member of the Pacific Alliance, comprised of South American countries on bordering the Pacific Ocean.

Social As the economy has improved, quality of life has as well for the citizens living in urban areas. Average household income has increased making the country have a bigger upper-middle and middle class. Unfortunately, the same cannot be said for the people living in more rural areas, as the unemployment rate is higher, and the education is of poorer quality. These people were also hit harder by the flooding and destruction of their homes, as well as their typical industries. Most of them work in agriculture and construction which was affected the most.

Peru’s government is trying to improve the human rights issues that have been plaguing the country. Peru has one of the highest rates of violence against women and girls globally and is the 5th most dangerous country (Overseas 2). President Vizcarra announced recently that he is increasing funding to centers who help women and children. There is also a growing acceptance for LGBT rights throughout the country.

Technological Peru is investing in itself, and its economy, to continue its trend of growth. This means they are putting money into their top industries, as well as potential ones, to develop new technologies. “Partnering with the Innovate Peru Program, the Ministry has approximately $3,400,000 available to fund solutions that focus on biotech, agrotech, and foodtech in a program that will last between 12 and 36 months” (Waddell 1). For example, Peru exports a lot of Alpaca wool. They have recently decided to invest in technology to help modernize the process. They have developed programs to aid breeders in genetic management and fiber selection. Peru knows that cotton and wool are their greatest fiber exports, but they have been developing technologies to use their mills to also create more synthetic fibers. They are also looking into additional ways to help their factories become more sustainable.

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LEAD-TIME OF PRODUCTION In terms of natural disasters, Peru is susceptible to flooding, earthquakes, landslides, tsunamis, volcanos, wildfires, water scarcity, and extreme heat. Not all of these things are imminent dangers, but with climate change, they are things to be concerned about. Climate change has caused El Niño, a complex weather pattern that affects the Pacific Ocean around the equator, to behave more aggressively.

In February 2017, Northern Peru experienced the most terrible rain and flooding it had in decades. The other biggest threat is earthquakes. In 400 years, Peru has experienced a minimum of 30 earthquakes. The most recent destruction being an 8.0 magnitude quake in 2007. Water scarcity is a concern for the country as it reduces the amount of water available to things like drinking, agriculture, and manufacturing. Peru is investing in infrastructure, legislation, and programs to help the recovery from natural disasters and do their part in preventing the event or long-term damage.

Peru celebrates most global Catholic holidays, like Christmas, Holy Week/Easter, and various saint days, but also have holidays specific to the country. Their Independence Day is a two-day celebration. Some are known as “días no laborales” meaning non-working days (Dunnel 1). There also festivals that have great importance to the culture, so many people do not go into work. Peru also celebrate Carnival in February with parades and fun custom of water balloon fights. The celebration can shut down the cities for a few days.

CULTURAL INSIGHTS English is not widely known throughout the country, so being able to communicate in Spanish is the easiest way. Peruvians are conscious of their image and aim to be polite and avoid confrontation. This sometimes gets in the way because they may not express their true opinion on something to be amenable. The culture is fairly formal and emphasizes respect. A sign of respect is greeting people appropriately. Eye contact and a firm handshake are expected. Attire is more elevated, even on a day-to-day basis. It is not uncommon for people to run on “Peruvian time” which tends to be at least 30 minutes later than the agreed upon meeting, but you are still expected to be on time. Business conversation should steer clear of any personal topics, like politics, religion, or ancestry.

STATE OF THE APPAREL AND TEXTILE INDUSTRY Peru has a 5,000-year history in textiles, making it a strong contender in today’s industry. The main exports of the country are minerals, petroleum, agriculture, and textiles. “Textiles represent the largest non-raw material portion of the Peruvian export economy” (PERU 1). Peru had focused mostly on raw materials instead of manufacturing. They would process their raw materials to add value, but now have begun to ramp up their apparel manufacturing which is showing great growth potential. In 2000, Peru exported $700 million in garments in 2000 to the United States.

Peru is becoming increasingly known for its high quality natural fibers and manufacturing. They are best known for their Pima cotton and alpaca. They also produce mid-range blends and specialize in knits. High end brands like Marc Jacobs, Hugo Boss, Theory and Burberry, have all begun to do some of their knit manufacturing in Peru (Donaldson 1). Many U.S. businesses enjoy working with Peru because of the duty-free trade and convenient proximity. “In 2013, the country was the U.S.’s thirty-sixth largest trading partner, with $18.2 billion in total two-way trade” (Donaldson 1). Peru has also been praised on their flexibility and response time. They have integrated their processes so companies have control from fiber to product. The country has also begun to invest in synthetic fabrics because of market trends, like athleisure.

At Première Vision in 2017, a panel of fashion executives discussed why they believe Peru is a top option for sourcing their products.

They acknowledged that Peru may be a pricier option, but you get what you pay for. Peru is innovative in the apparel industry. They are equipped with the latest technologies and are collaborative in the product development process. One designer commended the country saying, “Peru is great due to production and timelines and accessibility given that it’s in the same time zone, and for us as a small brand, they’re great dealing with minimums as well” (Full Package: Peru Delivers on Speed, Quality and Value 1). They also spoke on the availability of fair trade partners throughout the country. Brands have been trying to do their best to make sure that working environments are compliant with their company standards. Peru is known for meeting high standards of working conditions. Workers are often afforded many benefits, like leisure areas, scholarships, insurance, and on-site daycares (Donaldson 1). Factories are also compliance checked every six months by the authorities.

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TRADE AGREEMENTS The United States and Peru have a Free Trade Agreement. It’s called The United States-Peru Free Trade Agreement but is also known as the Peru Trade Promotion Agreement (PTPA). It was enacted on February 1, 2009. This agreement does much more than just eliminate tariffs. It was also put into place to “remove barriers to U.S. services, provide a secure, predictable legal framework for investors, and strengthen protection for intellectual property, workers, and the environment” (Peru Trade Promotion Agreement 1). This agreement was the first of its kind to negotiate in environmental and human rights into a trade agreement.

Currently 80% of all consumer and industrial goods are no longer subject tariffs. The plan is to make it 100% by 2019. Agricultural goods are at 80% and should reach 100% by 2026. In 2013 it was reported that Peru and the U.S. had traded over $16 billion worth of products.

PRODUCT CLASSIFICATION The HTS code is 6112.31.0010. This is the code for swimwear made from synthetic fibers for men. Peru, PE, is listed as a Special Duty-Free country.

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RISKS & BENEFITS The risks are clear, but they are common of most emerging markets. The government is the biggest worry about this country. Though the new head of state is setting goals to extinguish the corruption, it is a large stain on the nation. The possibility of looming natural disasters made worse by global warming is also something to remember when getting into business here.

Working with Peru has many benefits. The free trade agreement between the U.S. and Peru helps balance out the pricier cost of production. Though the cost is definitely supported by the unparalleled quality. The proximity to the U.S. is also a bonus for shorter shipment times and ease of communication. Many high-end companies have already begun to move their production to Peru.

CONCLUSION Overall, Peru has the potential to be a great sourcing and manufacturing option. They have a strong reputation for high quality. Their history and commitment to the apparel and textile industry have made them trusted by many. Their facilities are also known to be collaborative and innovative throughout product development to both luxury and mass brands.

When launching a new men’s swimwear collection - it is imperative to analyze every aspect of its production throughout the supply chain. After drafting the design and tech pack - it is important to decide where the product suppliers and manufacturers should be located. This document provides the necessary information needed to determine if the Philippines would be a recommendable country to conduct production and business initiatives. In particular, this examination will cover the country traits, country stability, lead-time of production, cultural insights, state of the apparel and textile industry, suppliers within the country, trade agreements, product classification, transportation, along with the risks & benefits of apparel manufacturing in the Philippines.

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PHILIPPINES

When launching a new men’s swimwear collection - it is imperative to analyze every aspect of its production throughout the supply chain. After drafting the design and tech pack - it is important to decide where the product suppliers and manufacturers should be located. This document provides the necessary information needed to determine if the Philippines would be a recommendable country to conduct production and business initiatives. In particular, this examination will cover the country traits, country stability, lead-time of production, cultural insights, state of the apparel and textile industry, suppliers within the country, trade agreements, product classification, transportation, along with the risks & benefits of apparel manufacturing in the Philippines.

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PHILIPPINES OVERVIEW LEGEND Capital Major cities PHILIPPINES QUEZON CITY l

l

MANILA

l

l l

CEBU CITY

Sovereign state in archipelagic Southeast Asia 800km off the coast of IndoChina Northeast of Papua New Guinea and north of Indonesia Contains 7,641 Islands 3,000 square kilometers of territory

CAGAYAN DE ORO

ZAMBOANGA CITY

Estimated population of 104, 256, 076

DAVAO CITY

Unitary presidential constitutional republic

Literacy Rate of 91.8% among youth (ages 15-25)

2,396 public and private institutions of higher education

Official languages: English and Filipino

Currency: Philippine Peso

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President is Rodrigo Duterte

U.S. is the top importer of product from the Philippines

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LEAD-TIME OF PRODUCTION Philippine Standard Time is 8 hours ahead of Coordinated Universal Time and Greenwich Mean Time (UTC/GMT) while being 12 hours ahead of U.S. Eastern Standard Time. Government offices in the Philippines are open from 7:30 a.m. to 4:30 p.m. Most private offices are open from 8:00 a.m. to 5:00 p.m., Monday-Friday with some being open on Saturday from 9:00 a.m. to 12:00 p.m.

Offices close during the following public Holidays: January 1st: New Year’s Day Easter Holidays March to April Maundy Thursday and Good Friday April 9th: Bataan & Corregidor Day and Heroism Day May 1st Labor Day June 12th: Philippine Independence Day August 21st: Ninoy Aquino Day August 28th: National Heroes Day November 1st: All Saints Day November 30th: Bonifacio Day December 25th: Christmas Day December 30th: Rizal Day December 31st: Last Day of the Year The Philippines also observes U.S. Holidays including: New Year's Day, Martin Luther King Day, Presidents' Day, Memorial Day, Independence Day, Labor Day, Columbus Day, Veterans' Day, Thanksgiving Day, and Christmas Day. The Philippines are prone to natural disasters, which may have an effect on the lead-time of production. Located above the equator, the Philippines have the warmest ocean water temperature in the world. These temperatures cause typhoons to form, which can trigger landfalls and mudslides. Located on the Ring of Fire, the Philippines also experiences heavy earthquakes and tsunamis due to tectonic plate shifting. These disasters have caused severe flooding, loss of homes, and death amongst the countries population.

CULTURAL INSIGHTS Greeting & Etiquette In the Philippines, the standard greeting is through handshaking and smiling. A firm handshake is recommended for business events while a soft handshake is appropriate for personal meetings. It is important to greet the eldest, or person with the highest ranking in an organization before greeting others - as this shows a sign of respect. When attending a social gathering - it is suggested to arrive between 15 and 30 minutes late. This gives the host more time to prepare for the people attending and it also shows a sign of respect.

When there is a seating arrangement – it is important to sit where you are told, as there is usually a reason for the placement. For gift giving – it is considered a nice gesture to bring something for someone that is hosting the event. If someone personally receives a present, it is recommended to wait to open the gift until later and to also send a thank you card. When handing out a business card – it is also suggested to do it when you first meet someone rather than after.

Business Operations & Meetings The Philippine people are very detail orientated when it comes to scheduling and organization. In fact, appointments should be made four weeks in advanced while following up three days before the date and time of the planned appointment.

Professional Dress In the Philippines, dressing for work is very important – and there are conservative guidelines for how you should appear in a business setting. It is suggested that men wear a dark colored suit – especially during the first interaction with a business partner. This also helps men appear more formal. For women, it is suggested to wear clothing of high quality. Doing so will show respect and commitment at hand.

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Gender & Gesture In the Philippines, men take on the dominating roles within a business climate. Usually, men take on after their fathers and females take on after their mothers, as family is of high importance. The Mano gesture shows a sign of respect – where the younger individual will place their forehead amongst the hand of the elder.

There has been a bridging of the gender gap within the Philippines. Currently, women make up one-half of the country’s population.

According to the Global Gender Index 2017 – The Philippines ranked tenth out of 144 countries in performing well in the health and education of women. The Philippines is known as the only Asian country to close the gender gap in health and education. The country also enjoys a greater labor force participation rate of women. This is encouraging information in the case we had any female business professionals from Coco Blanco come to the Philippines.

Negotiation & Presentation The Filipino people generally dread confrontation in the business world. There is a high context communication style that is less direct than the United States. In fact, it is important that Filipinos don’t come off as disrespectful but very polite. When answering a question – it is preferred to answer with a “yes” rather than a “no.” As yeses can also mean maybes. Decisions come from the top of a company - as one may never meet the individual who makes the decisions, hierarchy is very important. Within interviews, feelings are more important than facts and trust is highly regarded. When giving a presentation, is important to be formal while over-explaining and dedicating lots of time to an audience.

STATE OF THE APPAREL & TEXTILE INDUSTRY The apparel and textile industry has grown tremendously throughout the years – making it one of the Philippines greatest success stories. In fact, the garment and textile industry has positioned itself as the countries leading non-traditional export – accounting for 6.23% of total exports. Today, the apparel and textile industry remains the second biggest dollar earner – as electronics and semiconductors are first. The United States is the Philippines top market, followed by Europe, and Canada. The Philippine government has prepared package assistance for benefiting the industry. This includes training programs that are developed with other government institutions – while advocating a productivity-based wage for labor unions and employers. The average labor cost/minute for manufacturing a garment in the Philippines is $.12. As of 2015, there were over 498 established apparel manufacturers. Today, the Philippines are known for providing indigenous fibers such as, abaca, piña, silk, and ramie.

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DOMESTIC SUPPLIERS M A N U FA C T U R E R S

CLIENTELE

KWANG LIM • • •

Delivers best in quality and services Knitwear manufacturer - speciality in spandex Values creativity, passion for innovation, team spirit, open communication, transparency, profitability

Bldg E1 E2 Jy Compound Phase Iii Fcie Sez Brgy Langkaan Dasmarinas Cavite Philippines 4114 Ph

D O F I R S T M S P H I L S C O R P. • •

Manufacturer of knit apparel Experienced with mens and boys trousers

Lot 2 Block 14 Phase 3 South Av Sevent St Peza Rosario Cavite Philippines Ph

LS PHIL MFG INC. • • •

Reliable while providing high quality products Controls all apsects of the production process Strong technical team

2nd Floor De Ocampo Building, Barangay Tejero, Gen. Trias, CAVITE, PHILIPPINES, 4107

R E L I A N C E A P PA R E L FA S H I O N M F G • • •

Manufacturer of knit apparel Experience with polyester garments Has worked with major luxury lifestyle brands

Lot 7A Blk 14, Road G, Phase 3 Cavite Economic Zone, Rosario, Cavite, Philippines, 4106

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TRADE AGREEMENTS As of July 2017, the United States and the Philippines met under the Trade and Investment Framework Agreement. They were able to discuss free, fair and balanced trade between each other. This also included the elimination of trade barriers and the promotion of increased trade. This was in effort to advance the goal of the Trump Administration by expanding trade ties with the Asia-Pacific region.

Through this discussion they agreed to follow up and closely monitor trade issues regarding agriculture, intellectual property protection, customs, and investment issues. The officials also discussed the development of the Philippines in implementing the WTO Information Technology Agreement Expansion and the WTO Trade Facilitation Agreement. This is a huge benefit to a swimwear startup in the United States because it will allow the Philippines and the U.S. to cooperate with each other in reducing trade barriers, import quotas, and tariffs while increasing the trade of goods. Today, the Philippines Trade Industry has launched, Tradelines Philippines – this is a business intelligence platform of the Department of Trade and Industry - Export Marketing Bureau that delivers timely and relevant information to exporters. Through this system, buyers are matched with Philippine suppliers to deliver high quality goods and services to the U.S. as well as other global markets.

PRODUCT CLASSIFICATION According to the United States International Trade Commission, the 2018 HTC code for men’s swimwear made of synthetic fibers is, 6112-39-0010.

6112: Track suits, ski-suits and swimwear, knitted or crocheted 31: Men’s or boys swimwear of synthetic fibers 10: Men’s

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F R E I G H T T R A N S P O R TAT I O N MAJOR PORTS Port of Bataan Port of Batangas Port of Bugo Port of Cagayan de Oro Port of Cebu Port of Davao Port of Iloilo Port of Manila Port of Subic Bay

With approximately 68 ports located throughout the Phillipines - there are pleanty of options. The bigges port of them all is Port of Manila.

The estimaed cost to ship a 40ft container from Manila to Miami is US$2,900.66 - $3,205.99

CMA CGM CMA CGM is known as the leading worldwide shipping group. The group is present in more than 160 countries with a fleet of 494 vessels. CMA CMG serves 420 of the 521 commercial ports around the world. This company also has a sustainable development policy which has reduced CO2 emissions by over 50% on its own fleet. CMA CMG also prides itself in being transparent, responsible and ethical.

HMM HMM provides customers with world-class transportation. HMM has a vast global network with highly skilled vessel operations. Currently, HMM has over 100 state-of- art vessels.

MAERSK Maersk is a transport and logistics company that enables and facilitates global supply chains and provides opportunities for businesses to trade globally.

Known as the world’s largest shipping company, their service model is reliability and efficiency. The company operates globally and has 639 ships that sail around the globe.

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RISKS

BENEFITS

There is growth within apparel manufacturing

Different time zone from the U.S.

English speaking and high literacy rate

Different holiday seasons in both countries

Ports and transportation in the Philippines

Natural disasters are common within the Philippines

Free trade agreements between U.S. & the Philippines

Far location will increase shipping costs

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CONCLUSION Garments and textiles are ranked second in the Philippines’ manufacturing industry. As manufacturing also accounts for 18.9% of GDP in the Philippines. There is advancement in the technological environment - as IT spending has increased, specifically in the retail and consumer goods sector. The average cost to produce one garment is also low - as this averages $.12/hour. With free, fair and balanced trade agreements - there is a positive future outlook between the U.S. and Philippines. In addition, the Philippines possesses infrastructure that sustains the importing and exporting of goods. It is recommendable to partner with the Philippines for the future production of apparel products.

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S W O T:

EGYPT

STRENGTHS •

• • •

•

WEAKNESSES

GSP & QIZ agreements = duty-free textile and apparel exports into the U.S. Cheap labor & low shipping costs More than 25% of Egypt’s workforce lies within the textile industry Suez Canal Economic Zone serves as highly efficient centralized hub for global distribution Strong history of high-quality cottons

• •

•

•

OPPORTUNITIES • •

• •

Long distance from the U.S. Sluggish lead-times unless manufactured through vertically integrated suppliers Civil and economic unrest still linger despite political reformation Terrorism in the Sinai Peninsula present issues for textile manufacturing developments in the area

THREATS

$2bn textile city project in 2020 Growing textile industry increases foreign investment opportunities Maturation of vertically integrated manufacturers Direct market access to Europe, Asia, Africa & the Middle East

•

• •

•

44

Overpopulation paired with a weak education system - creating a lack of skilled and educated workers Possible flooding near QIZ and Suez Canal Economic Zone Surge in terroristic threats compromising the nation’s productivity and workflow Competition from emerging countries

S W O T:

PERU

STRENGTHS • •

•

WEAKNESSES

Known for their high-quality manufacturing and textiles Duty-Free Trade Agreements with many countries, including the U.S. (Peru Trade Promotion Agreement) Stable economic indicators

• • •

•

OPPORTUNITIES • • •

Production costs tend to lean on the pricier side Struggling to fix widespread human rights issues Peru is ranked the 5th most corrupt country in South America Peru is dangerous and faces issues with human and drug trafficking, extortion, and money laundering

THREATS

Peru’s manufacturing sector is a growth industry Ranked as one of the most promising emerging markets Government is open and amenable to foreign business opportunities

•

•

45

El Niño caused unpredictable flooding that the country is still recovering from Low completion of secondary schooling ad opportunities for development keep Peruvian workers at a comparatively low skill level

S W O T:

PHILIPPINES

STRENGTHS • • • • • •

WEAKNESSES

Youthful population Low cost workforce that is educated and English-speaking Declining poverty level Natural resources and biodiversity 70% of the outsourcing business comes from the U.S. Strong IT sector

•

•

• •

OPPORTUNITIES •

•

•

High costs, lengthy procedures and lack of efficiency can be a problem for business investors Business confidence is waning due to a slowdown in reform momentum Crime rate is high, political instability, and corruption 2.1 million children are working as child labor

THREATS •

Foreign exchange can be proven valuable due to a low cost, English-speaking workforce The textile and apparel industry is a growing industry for the Philippines Willing to reduce trade barriers, import quotas, and tariffs

• • • •

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May lose out to other ASEAN countries when conducting business due to poor network and logistics Political infighting and an unpredictable president Weakening business environment At risk for terrorism Low R&D expenditure

COUNTRY

RANKINGS

After researching each of the countries, it is important to see how they compare to one another. This is the best strategy to determine which will be the best fit for manufacturing our products.

By ranking each country in thirteen categories on a scale of 1-10, we were able to get a better understanding of where the countries fell short by quantifying qualitative topics. The thirteen categories are: • Business Climate • Costs • Government • Location • Risks • Social Stability • Sourcing Guidelines • Textile Industry • Trade Agreements • Trained Workforce • Socio-eco-political

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EGYPT

PERU

PHILIPPINES

Business Climate

7

8

7

Costs

8

7

8

Government

7

6

8

Location

8

8

5

Risks

8

7

6

Social Stability

7

7

9

Sourcing Guidelines

8

9

8

Textile Industry

9

9

8

Trade Agreements

10

10

7

Trained Workforce

7

6

9

Socio-eco-political

8

8

8

TOTAL

87

85

83

AVERAGE

7.9

7.7

7.5

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EGYPT

Business Climate: Improving, though challenges remain Costs: Relatively competitive costs in comparison to other countries Government: Primary focus on enhancing economy, though media is heavily controlled Location: Suez Canal Economic Zone central location for global distribution Risks: Not many risks other than potential flooding of ports and canal zones Social Stability: Stable, though risks involved due to overpopulation Sourcing Guidelines: Well in place Textile Industry: Thriving. Major sourcing location for mega fast fashion brands like H&M and Zara Trade Agreements: QIZ & GSP - duty free tariffs Trained Workforce: Skilled Socio-eco-political: Stable and growing

PERU

Business Climate: Continuing to show strong growth in diverse sectors Costs: Tends to cost slightly more, but often willing to negotiate Government: Still stained with historical corruption, but making great improvements Location: Similar time zone and a short average 8 hour flight from the east coast creates easy communication Risks: El NiĂąo has affected the economy the last few years, but fairly risk free.

Social Stability: Stable and improving. Programs are being put into place to correct various human rights issues.

Sourcing Guidelines: Well in place and better than their regional competitors Textile Industry: Known for its high quality textiles and manufacturing. Brands lke Ralph Lauren, Hugo Boss, and Burberry do business there.

Trade Agreements: 92.2% of Peru's trade uses a trade agreement. Peru-United States Trade Promotion Agreement and many others, Duty Free Trained Workforce: Comparatively low-skilled Socio-eco-political: Stable

PHILIPPINES

Business Climate: Continuing to show growth Costs: Relatively competitive costs in comparison to other countries Government: Anti-drugs campaign. Fighting Muslim rebel groups

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Location: Geographically far from the U.S. Risks: Prone to natural disasters, including tsunamis and earthquakes Social Stability: Positive outlook for the future due to a youthful and growing population Sourcing Guidelines: Well in place Textile Industry: In a state of upward progression - as textiles and apparel manufacturing are second to technology Trade Agreements: Working on free-trade agreements Trained Workforce: Skilled and well educated, English-speaking Socio-eco-political: Stable condition

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SUPPLIER

A N A LY S I S

After determining our top potential countries to do business with, we looked into their best top knit manufacturing companies. We hose three from each country to research more in-depth. The best in Egypt’s are, Arafa Holding, Velocity Apparelz, and Kabo. Peru’s are Textile de Valle, Aventura, and Textimax. The best in the Philippines’ are Kwang Lim, Do First MS, and LS MFG Inc. These suppliers were compared using twelve different factors to determine which manufacturer would be the best fit for our company.

The twelve factors were: • Abilities • Capacity • Costs • Customer Service • Customers • Flexibility • Lead-time • Management • Quality • Services Offered • Strategic Outlook • Sourcing Guidelines

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EGYPT Arafa Holding

Velocity Apparelz

Kabo

Abilities

9

8

9

Capacity

9

7

7

Costs

9

9

9

Customer Service

8

7

7

Customers

9

8

8

Flexibility

8

7

8

Lead-time

10

8

10

Management

9

7

8

Quality

9

8

9

Services Offered

9

7

8

Strategic Outlook

10

8

10

Sourcing Guidelines

9

8

9

Total

108

92

102

Average

9

7.67

8.5

EGYPT

Abilities: Each manufacturer’s business activities are fully integrated, covering the luxury to casual wear markets, as well as the full value chain from textiles to apparel & tailoring to retail & distribution. This cross-vertical-integration provides a key buffer against economic downturns and political upheavals in key markets, while at the same time positioning the company for organic growth. It is also worth noting that Arafa Holding produces more than 10% of Egypt’s garment exports.

Capacity: All of the manufacturers listed are able to produce over 120,000 garments on a daily basis. Arafa Holding is the largest of the three, with five factories and around 13,000 skilled workers, thus its daily output is significantly higher than Kabo and Velocity Apparelz.

Costs: Production is extremely cost effective in Egypt, especially in comparison to competing countries. Additionally, duty-free tariffs on exports to the United States make Egypt a very attractive choice for American companies.

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Customer Service: Egyptian suppliers are generally known for quality service and tend to maintain lasting relationships with their clients.

Customers: Calvin Klein, Gap, Macy’s and Banana Republic seem to be a popular client among a majority of the suppliers listed. Arafa Holding also works with Zara and luxury brands like Armani and Ermenegildo Zenga.

Flexibility: Each company listed is reasonably flexible in terms of product type and quantity, as well as lead-time considering the fact that they are vertically integrated.

Lead-time: Because all of the companies selected are vertically integrated, lead-times are a lot faster and efficient than traditional manufacturers with production turnarounds averaging from six to eight weeks.

Management: Management ranges from large corporations to smaller and more personal administration.

Quality: Quality is a primary focus in Egypt’s textile manufacturing industry. Each supplier listed ensures top-notch products, deriving from a process which extends from sourcing to packaging. Arafa Holding particularly enlists highly skilled Italian manufacturers to train their employees to guarantee quality.

Services Offered: Arafa Holding, Kabo, and Velocity Apparelz are all able to effectively facilitate every end of the supply chain.

Strategic Outlook: Each manufacturer listed operates using a vertically integrated supply chain strategy which enhances efficiency, while decreasing production time, costs, and chain disruption.

Sourcing Guidelines: Most of the materials are sourced domestically or produced in-house. Arafa Holding is an exception as it sources high-quality fabrics from Italy.

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PERU Textile de Valle

Aventura

Textimax

Abilities

9

9

8

Capacity

8

6

10

Costs

7

7

8

Customer Service

9

7

7

Customers

10

9

8

Flexibility

9

8

8

Lead-time

8

8

8

Management

9

8

8

Quality

9

8

7

Services Offered

9

8

8

Strategic Outlook

10

8

8

Sourcing Guidelines

9

8

8

Total

106

94

96

Average

8.83

7.83

8

PERU

Abilities: All three suppliers are vertically integrated manufacturers that specialize in high quality knit production. They are constantly checking to ensure they are using the best technology, Textil de Valle in particular. These companies are known as the top in Peru and the drawing force for top brands that have already begun to relocate their production to this country from other emerging markets.

Peru has also begun to place more emphasis on the research and development of synthetic textiles, which would be great for swimwear.

Capacity: Textimax works more with fast fashion clientele so if is able to make over 100,000 pieces a day. The other suppliers produce higher quality and take longer to produce.

Costs: Peru is known for costing more than other emerging markets when it comes to production. They are willing to negotiate.

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Customer Service: Peruvian people are known for their friendliness, but often avoid confrontation. They’ll agree with you to avoid an argument which can lead to miscommunications. These suppliers work with high end brands and do their best to create collaborative environments for their best clientele.

Customers: Textile de Valle works with high end brands like Polo and Burberry. Aventura works with a higher middle tier of clients, like Nautica and Anthropologie. Textimax again is closer to fast fashion when working with brands, like Express.

Flexibility: All three are allowed to be flexible in their production because they are vertically integrated. Textil has the greatest flexibility because of their history of collaboration and goal to innovate.

Lead-time: The country does take pride in their nation and traditions, so they do have quite a dew national holidays off throughout the year that last a few days. But because the companies are vertically integrated, they are able to cut lead times. Location also helps because they are located close to ports in order to move the merchandise quickly.

Management: Management ranges from large corporations to smaller and more personal administration.

Quality: Peru overall is renowned for producing some of the best quality knits from emerging markets. Textil de Valle is known in Peru for their quality. They capture the best clients that are moving their production to the country.

Services Offered: Al three offer from product development to end product. They also all specialize in knit production. Aventura has the most familiarity with swimwear products and the production process.

Strategic Outlook: The companies are all vertically integrated to cut costs and better communicate. Textil de Valle invests the most into technologies as well as expanding their facilities.

Sourcing Guidelines: The Peruvian apparel industry is proud of their textiles and aim to source domestically. All three suppliers are vertically integrated and can manufacture their own knit fabrics. Peru is also working to continue to improve their working conditions.

Each supplier has their own benefits for their employees, like daycares, insurance, and developmental training programs.

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PHILIPPINES Kwang Lim

Do First MS

LS Phil MFG Inc.

Abilities

9

8

8

Capacity

9

7

9

Costs

8

8

8

Customer Service

9

7

8

Customers

8

9

8

Flexibility

8

8

9

Lead-time

8

8

9

Management

9

7

8

Quality

8

8

9

Services Offered

9

8

9

Strategic Outlook

10

8

9

Sourcing Guidelines

9

8

10

Total

104

94

104

Average

8.67

7.83

8.67

PHILIPPINES

Abilities: Since apparel manufacturing is a growing business sector for the Philippines - suppliers and manufacturers are eager to learn the fashion market ins and outs through market research and trend analysis. This is done through fabric research, garment design and graphic design. Not only are the Philippines manufacturers into research and development but they also have company values that are based on trust and loyalty, providing themselves great at customer service. Throughout the years there has also been an emphasis placed on the quality of goods manufactured.

Capacity: These companies can produce an abundance of apparel products. According to Kwang Lim, there are over 8,000 employees and in the year of 2012 - they produced over 350 million dollars worth of apparel.

Costs: The costs to manufacture garments are comparable to other countries. However, since the Philippines is a further distance from the United States - most of the cost for producing a garment is in the shipping. Not only is the shipping more expensive but there are also trade tariffs.

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Customer service: Since many of the people in the Philippines speak English - this makes it easier to communicate and negotiate deals between business to business operations. However, it may be difficult to obtain information due to a lack of information on company websites - which may be alarming for foreign investors. Business people in the Philippines are very friendly and have great etiquette.

Customers: Today, there are quite a few different apparel brands that conduct business in the Philippines. This includes fast fashion brands, such as Forever 21 as well as lifestyle brands such as J. Crew, Ralph Lauren, and Vineyard Vines.

Flexibility: The companies listed under the Philippines are relatively flexible and are willing to manufacture most apparel items under the knit category.

Lead-time: Planning in terms of time can be lengthy in the Philippines, as it usually takes three weeks in advance to plan a meeting.

There have also been many instances of lead-time taking a while due to the infrastructure and technological development of the Philippines. There are also natural disasters that frequent the Philippines - this can cause disruptions and lead to unexpected time delays. However, most of the companies do state that they provide on-time delivery.

Management: The management for Philippines manufacturers ranges from larger corporations to smaller run family businesses.

Quality: Many of the manufacturers that come out of the Philippines specialize in the quality of produced garments. Kwang Lim, LS Phil MFG Inc. and Reliance Apparel Fashion MFG claim to provide the best in quality and service standards. With innovation and creativity redeeming value - many of these companies try to find ways to stand out amongst their competitors.

Services Offered: The services from the companies indicated are primarily for knitwear manufacturing. However, there is a strong stance on the technical environment while controlling many facets of the production process from LS Phil MFG Inc. While staying committed to innovation, communication, and profitability is important to Kwang Lim.

Strategic Outlook: The companies listed for the Philippines have a decent outlook in terms of strategy. There is a willingness to take on every aspect of the production process from design to final inspection.

Sourcing Guidelines: In terms of the sourcing of fabric materials and components - there is a willingness to outsource materials or work in-house to produce swimwear garments.

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58

59

COSTING

Determining the cost of our products was important for our business, as well as for helping us further determine which country would be the best choice for manufacturing.

Taking our tech packs, we found the cost of our fabrics and components. We also sourced new vendors for packaging, packing, labor, and other cost factors.

We compared the cost of our three potential countries to see which would be the most and least expensive.

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EMILIANO

61

NOTES

Components Thread: Cost was determined by the amount that would be used for one bottom. For the Emiliano, it is estimated to use approximately 2.98 yards per bottom.

Packing Cartons: It is estimated that 50 Emiliano briefs would be able to fit into one carton. This was used to determine the quantity needed for the volume predicted.

Straps: It is estimated that one roll should cover at least 1,125 boxes.

Poly Film: It is estimated that one roll should cover at least 100 boxes.

Labor Patternmaking, Grading, and Marking: These were calculated as 1% of sewing costs Cutting: This was calculated as 10% of sewing cost Sewing: The given costs per minute for each country were, $0.085 for Egypt, $0.15 for Peru, $0.12 for Philippines.

Prepack and Admin: Both of these costs are fixed.

Other Duty: Our product is classified as HTC 6112-39-0010. In the document the Philippines has a 25.9% duty, while Peru and Egypt are listed as special. Peru is duty-fee under the Peru Trade Promotion Agreement, and Egypt is within the Qualifying Industrial Zone.

Broker: Estimates given for freight costs gave Philippines and Peru $150 broker fees, while Egypt’s broker was included in freight.

Insurance: An insurance estimate was given as $0.60 per every $100 of merchandise. Using the predicted volume of 1 million units and the cost per unit, we were able to produce these calculations.

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MATEO

63

NOTES

Components Thread: Cost was determined by the amount that would be used for one bottom. For the Emiliano, it is estimated to use approximately 3.71 yards per bottom.

Packing Cartons: It is estimated that 50 Emiliano briefs would be able to fit into one carton. This was used to determine the quantity needed for the volume predicted.

Straps: It is estimated that one roll should cover at least 1,125 boxes.

Poly Film: It is estimated that one roll should cover at least 100 boxes.

Labor Patternmaking, Grading, and Marking: These were calculated as 1% of sewing costs Cutting: This was calculated as 10% of sewing cost Sewing: The given costs per minute for each country were, $0.085 for Egypt, $0.15 for Peru, $0.12 for Philippines.

Prepack and Admin: Both of these costs are fixed.

Other Duty: Our product is classified as HTC 6112-39-0010. In the document the Philippines has a 25.9% duty, while Peru and Egypt are listed as special. Peru is duty-fee under the Peru Trade Promotion Agreement, and Egypt is within the Qualifying Industrial Zone.

Broker: Estimates given for freight costs gave Philippines and Peru $150 broker fees, while Egypt’s broker was included in freight.

Insurance: An insurance estimate was given as $0.60 per every $100 of merchandise. Using the predicted volume of 1 million units and the cost per unit, we were able to produce these calculations.

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GABRIEL

65

NOTES

Components Thread: Cost was determined by the amount that would be used for one bottom. For the Emiliano, it is estimated to use approximately 4.51 yards per bottom.

Packing Cartons: It is estimated that 50 Emiliano briefs would be able to fit into one carton. This was used to determine the quantity needed for the volume predicted.

Straps: It is estimated that one roll should cover at least 1,125 boxes.

Poly Film: It is estimated that one roll should cover at least 100 boxes.

Labor Patternmaking, Grading, and Marking: These were calculated as 1% of sewing costs Cutting: This was calculated as 10% of sewing cost Sewing: The given costs per minute for each country were, $0.085 for Egypt, $0.15 for Peru, $0.12 for Philippines.

Prepack and Admin: Both of these costs are fixed.

Other Duty: Our product is classified as HTC 6112-39-0010. In the document the Philippines has a 25.9% duty, while Peru and Egypt are listed as special. Peru is duty-fee under the Peru Trade Promotion Agreement, and Egypt is within the Qualifying Industrial Zone.

Broker: Estimates given for freight costs gave Philippines and Peru $150 broker fees, while Egypt’s broker was included in freight.

Insurance: An insurance estimate was given as $0.60 per every $100 of merchandise. Using the predicted volume of 1 million units and the cost per unit, we were able to produce these calculations.

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STRATEGY DEVELOPMENT

COCO BLANCO

PART III

The Strategy Development will break down Coco Blanco’s chosen countries and suppliers by offering or final costing.

67

68

LINE

PLAN

MARGINS

After researching our potential sourcing countries and breaking down the cost of production, Coco Blanco needed to develop our line plan margins.

When developing the company, we had a rough idea of how much our products would retail for. Now that we had preliminary costs, we needed to decide how to get the best markup, and ultimately, what would make our company the most profitable.

69

We needed to produce 1 million units of each style. We calculated what the costs and total projected income would be for all of our product in each country that we had researched previously. By comparing all of our costs and projected markups, we decided that the best option for our company would be to produce all three of our products in Egypt. Egypt had been a strong option throughout our research, but now knowing that it would also be the least expensive route has helped us make our final decisions. We also took into consideration that this would cut down on freight costs if we were depending on one company. This would also decrease our worry on lead times since we would only have to communicate with one manufacturer.

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SOURCING

STRATEGY

COCO BLANCO

PART IV

Coco Blanco’s sourcing strategy has been developed through an in-depth assessment of diverse country and manufacturing research, emphasizing on the sourcing destination’s ability to maximize profits, while alleviating risks and contingencies. With Coco Blanco’s company vision and core values in mind; Egypt, Peru, and the Philippines were selected as possible sourcing locations for the brand. Through the evaluation of vital components ranging from labor costs to trade policies, Coco Blanco quickly identified the most lucrative sourcing placement that would not only facilitate the brand’s financial goals, but also its overall mission. Throughout the course of this segment, we will rank each country and its top three suppliers in order to illustrate a clear and concise breakdown leading to the final decision.

71

COUNTRY RANKING COUNTRY

Egypt

Explanation

Peru

Explanation

Phillipines

Explanation

Business Climate

7

Improving, though challenges remain

8

Continuing to show strong growth in diverse sectors

7

Continuing to show growth

Costs

8

Relatively competitive costs in comparison to other countries

7

Tends to cost slightly more, but often willing to negotiate

8

Relatively competitive costs in comparison to other countries

Government

7

Primary focus on enhancing economy, though media is heavily controlled

6

Still stained with historical corruption, but making great improvements

8

Anti-drugs campaign. Fighting Muslim rebel groups

Location

8

Suez Canal Economic Zone central location for global distribution

8

Similar time zone and a short average 8 hour flight from the east coast creates easy communcation

5

Geographically far from the U.S.

Risks

8

Not many risks other than potential flooding of ports and canal zones

7

El NiĂąo has affected the economy the last few years, but fairly risk free.

6

Prone to natural disasters, including tsunamis and earthquakes

Social Stability

7

Stable, though risks involved due to overpopulation

7

Stable and improving.

Programs are being put into place to correct various human rights issues.

9

Positive outlook for the future due to a youthful and growing population

Sourcing Guidelines

8

Well in place

9

Well in place and better than their regional competitors

8

Well in place

9

Thriving. Major sourcing location for mega fast fashion brands like H&M and Zara

10

Known for its high quality textiles and manufacturing.

Brands lke Ralph Lauren, Hugo Boss, and Burberry do business there.

8

In a state of upward progression - as textiles and apparel manufacturing are second to technology

7

Working on free-trade agreements

Textile Industry

Trade Agreements

10

QIZ & GSP - duty free tariffs

10

92.2% of Peru's trade uses a trade agreement. PeruUnited States Trade Promotion Agreement and many others, Duty Free

Trained Work-force

7

Skilled

6

Comparitively low-skilled

9

Skilled and well educated, English-speaking

Socio-eco-political

8

Stable and growing

8

Stable

8

Stable condition

Total

87

86

83

AVERAGE

7.9

7.8

7.5

72

SUPPLIER RANKING

COUNTRY

Egypt

Peru

Philippines

Supplier

Arafa Holding

Velocity Apparelz

Kabo

Textil de Valle

Aventura

Textimax

Kwang Lim

Do First MS Phils Corp.

LS Phil MFG Inc.

Abilities

9

8

9

9

9

8

9

8

8

Capacity

9

7

7

8

6

10

9

7

9

Costs

9

9

9

7

7

8

8

8

8

Customer Service

8

7

7

9

7

7

9

7

8

Customers

9

8

8

10

9

8

8

9

8

Flexibility

8

7

8

9

8

8

8

8

9

Lead-time

10

8

10

8

8

8

8

8

9

Management

9

7

8

9

8

8

9

7

8

Quality

9

8

9

9

8

7

8

8

9

Services Offered

9

7

8

9

8

8

9

8

9

Strategic Outlook

10

8

10

10

8

8

10

8

9

Sourcing Guidelines

9

8

9

9

8

8

9

8

10

Total

108

92

102

106

94

96

104

94

104

AVERAGE

9

7.67

8.5

8.83

7.83

8

8.67

7.83

8.67

73

EGYPT

Abilities: Each manufacturer’s business activities are fully integrated, covering the luxury to casual wear markets, as well as the full value chain from textiles to apparel & tailoring to retail & distribution. This cross-vertical-integration provides a key buffer against economic downturns and political upheavals in key markets, while at the same time positioning the company for organic growth. It is also worth noting that Arafa Holding produces more than 10% of Egypt’s garment exports.

Capacity: All of the manufacturers listed are able to produce over 120,000 garments on a daily basis. Arafa Holding is the largest of the three, with five factories and around 13,000 skilled workers, thus its daily output is significantly higher than Kabo and Velocity Apparelz.

Costs: Production is extremely cost effective in Egypt, especially in comparison to competing countries. Additionally, duty-free tariffs on exports to the United States make Egypt a very attractive choice for American companies.

Customer Service: Egyptian suppliers are generally known for quality service and tend to maintain lasting relationships with their clients.

Customers: Calvin Klein, Gap, Macy’s and Banana Republic seem to be a popular client among a majority of the suppliers listed. Arafa Holding also works with Zara and luxury brands like Armani and Ermenegildo Zenga.

Flexibility: Each company listed is reasonably flexible in terms of product type and quantity, as well as lead-time considering the fact that they are vertically integrated.

Lead-time: Because all of the companies selected are vertically integrated, lead-times are a lot faster and efficient than traditional manufacturers with production turnarounds averaging from six to eight weeks.

Management: Management ranges from large corporations to smaller and more personal administration.

Quality: Quality is a primary focus in Egypt’s textile manufacturing industry. Each supplier listed ensures top-notch products, deriving from a process which extends from sourcing to packaging. Arafa Holding particularly enlists highly skilled Italian manufacturers to train their employees to guarantee quality.

Services Offered: Arafa Holding, Kabo, and Velocity Apparelz are all able to effectively facilitate every end of the supply chain.

Strategic Outlook: Each manufacturer listed operates using a vertically integrated supply chain strategy which enhances efficiency, while decreasing production time, costs, and chain disruption.

Sourcing Guidelines: Most of the materials are sourced domestically or produced in-house. Arafa Holding is an exception as it sources high-quality fabrics from Italy.

74

PERU

Abilities: All three suppliers are vertically integrated manufacturers that specialize in high quality knit production. They are constantly checking to ensure they are using the best technology, Textil de Valle in particular. These companies are known as the top in Peru and the drawing force for top brands that have already begun to relocate their production to this country from other emerging markets.

Peru has also begun to place more emphasis on the research and development of synthetic textiles, which would be great for swimwear.

Capacity: Textimax works more with fast fashion clientele so if is able to make over 100,000 pieces a day. The other suppliers produce higher quality and take longer to produce.

Costs: Peru is known for costing more than other emerging markets when it comes to production. They are willing to negotiate.

Customer Service: Peruvian people are known for their friendliness, but often avoid confrontation. They’ll agree with you to avoid an argument which can lead to miscommunications. These suppliers work with high end brands and do their best to create collaborative environments for their best clientele.

Customers: Textile de Valle works with high end brands like Polo and Burberry. Aventura works with a higher middle tier of clients, like Nautica and Anthropologie. Textimax again is closer to fast fashion when working with brands, like Express.

Flexibility: All three are allowed to be flexible in their production because they are vertically integrated. Textil has the greatest flexibility because of their history of collaboration and goal to innovate.

Lead time: The country does take pride in their nation and traditions, so they do have quite a dew national holidays off throughout the year that last a few days. But because the companies are vertically integrated, they are able to cut lead times. Location also helps because they are located close to ports in order to move the merchandise quickly.

Management: Management ranges from large corporations to smaller and more personal administration.

Quality: Peru overall is renowned for producing some of the best quality knits from emerging markets. Textil de Valle is known in Peru for their quality. They capture the best clients that are moving their production to the country.

Services Offered: Al three offer from product development to end product. They also all specialize in knit production. Aventura has the most familiarity with swimwear products and the production process.

Strategic Outlook: The companies are all vertically integrated to cut costs and better communicate. Textil de Valle invests the most into technologies as well as expanding their facilities.

Sourcing Guidelines: The Peruvian apparel industry is proud of their textiles and aim to source domestically. All three suppliers are vertically integrated and can manufacture their own knit fabrics. Peru is also working to continue to improve their working conditions.

Each supplier has their own benefits for their employees, like daycares, insurance, and developmental training programs.

75

PHILIPPINES

Abilities: Since apparel manufacturing is a growing business sector for the Philippines - suppliers and manufacturers are eager to learn the fashion market ins and outs through market research and trend analysis. This is done through fabric research, garment design and graphic design. Not only are the Philippines manufacturers into research and development but they also have company values that are based on trust and loyalty, providing themselves great at customer service. Throughout the years there has also been an emphasis placed on the quality of goods manufactured.

Capacity: These companies can produce an abundance of apparel products. According to Kwang Lim, there are over 8,000 employees and in the year of 2012 - they produced over 350 million dollars worth of apparel.

Costs: The costs to manufacture garments are comparable to other countries. However, since the Philippines is a further distance from the United States - most of the cost for producing a garment is in the shipping. Not only is the shipping more expensive but there are also trade tariffs.

Customer Service: Since many of the people in the Philippines speak English - this makes it easier to communicate and negotiate deals between business to business operations. However, it may be difficult to obtain information due to a lack of information on company websites - which may be alarming for foreign investors. Business people in the Philippines are very friendly and have great etiquette.

Customers: Today, there are quite a few different apparel brands that conduct business in the Philippines. This includes fast fashion brands, such as Forever 21 as well as lifestyle brands such as J. Crew, Ralph Lauren, and Vineyard Vines.

Flexibility: The companies listed under the Philippines are relatively flexible and are willing to manufacture most apparel items under the knit category.

Lead time: Planning in terms of time can be lengthy in the Philippines, as it usually takes three weeks in advance to plan a meeting. There have also been many instances of lead-time taking a while due to the infrastructure and technological development of the Philippines. There are also natural disasters that frequent the Philippines - this can cause disruptions and lead to unexpected time delays. However, most of the companies do state that they provide on-time delivery.

Management: The management for Philippines manufacturers ranges from larger corporations to smaller run family businesses.

Quality: Many of the manufacturers that come out of the Philippines specialize in the quality of produced garments. Kawng Lim, LS Phil MFG Inc. and Reliance Apparel Fashion MFG claim to provide the best in quality and service standards. With innovation and creativity redeeming value - many of these companies try to find ways to stand out amongst their competitors.

Services Offered: The services from the companies indicated are primarily for knitwear manufacturing. However, there is a strong stance on the technical environment while controlling many facets of the production process from LS Phil MFG Inc. While staying committed to innovation, communication, and profitability is important to Kwang Lim.

Strategic Outlook: The companies listed for the Philippines have a decent outlook in terms of strategy. There is a willingness to take on every aspect of the production process from design to final inspection.

Sourcing Guidelines: In terms of the sourcing of fabric materials and components - there is a willingness to outsource materials or work in-house to produce swimwear garments.

76

EGYPT’S TOP SUPPLIERS

Egypt

COUNTRY Supplier

Arafa Holding

Comment

Kabo

Comment

Velocity Apparelz

Comment

Abilities

9

1

9

13

8

25

Capacity

9

2

7

14

7

26

Costs

9

3

9

15

9

27

Customer Service

8

4

7

16

7

28

Customers

9

5

8

17

8

29

Flexibility

8

6

8

18

7

30

Lead-time

10

7

10

19

10

31

Management

9

8

8

20

7

32

Quality

9

9

9

21

9

33

Services Offered

9

10

8

22

7

34

Strategic Outlook

10

11

10

23

9

35

Sourcing Guidelines

9

12

9

24

8

36

Total

108

102

96

AVERAGE

9

8.5

8

COMMENTS

1. Skilled workers are trained by experts from Italy and use the latest textile technology to construct high quality garments at mass quantities 2. High capacity - numerous facilities with over 13,000 skilled employees 3. Generally low in comparison to competitors 4. Good customer service. Maintains typically long relationships with clients 5. Armani, Ermenegildo Zegna, Zara, Gap, Macy's 6. Generally flexible in terms of product and return time 7. Faster than traditional manufacturers through vertical integration methods 8. Expansive and versatile 9. High quality in terms of sourced materials and general manufacturing 10. Sourcing and production of luxury, formal, and casual apparel across 5 diverse facilities 11. Vertically integrated manufacturing model 12. Sourcing of hi-quality Italian fabrics for high-end brands 13. In-house fabric production - knitting, dyeing, cutting, embroidery, printing, and packing 14. Decent capacity, producing over120k garments a day 15. Generally low in comparison to competitor16. Fairly good customer service

77

COMMENTS CONTINUED

17. Calvin Klein, Banana Republic, Gap, Macy's, JC Penny 18. Generally flexible in terms of product and return time 19. Faster vertical integration methods 20. Tight knit and centrally focused 21. Very high and precise quality 22. Manufacturing from fabric knitting stage to product packaging 23. Vertically integrated manufacturing model 24. Fabric created in-house 25. Integrated - Manufacturing, design, production, and logistics 26. Decent capacity, numerous facilties 27. Generally low in comparison to competitors 28. Fairly decent customer service 29. Calvin Klein, Gap, Macy's, PVH, Walmart 30. Moderately flexible in terms of garment style 31. Fast, vertical integration methods 32. Large, corporate management 33. Very high and precise quality 34. Sustainable, yet efficient manufacuring - logistics 35. Implements Toyota's manufacturing philosophy and systems 36. Fabrics sourced locally

78

LINE PLAN MARGINS COUNTRY

Egypt Emiliano

Mateo

Gabriel

1,000,000

1,000,000

1,000,000

Wholesale

$78.00

$102.00

$120.00

Cost per Unit

$7.56

$10.28

$11.80

Margin

$70.44

$91.72

$108.20

%

90.31%

89.92%

90.17%

Total Units

3,000,000

Total Wholesale

$300,000,000

$78,000,000.00

$102,000,000.00

$120,000,000.00

Total Purchase

$29,640,000

$7,560,000.00

$10,280,000.00

$11,800,000.00

Total Margins

$270,360,000

$70,440,000.00

$91,720,000.00

$108,200,000.00

Avg Wholesale

$100.00

Avg Purchase

$9.88

Avg Margins

$90.12

Avg Margins %

90.12%

AVG COST/UNIT

$90.12

Coco Blanco’s fall/winter, spring/summer line placement has achieved excellent overhead figures with products averaging at a 90% profit margin. Because Arafa Holding sources premium quality fabrics from Italy, while implementing the top Italian manufacturing standards, Coco Blanco is able to generate significant margins as it is essentially producing “Made in Italy” products at “Made in Egypt” prices. In addition, with Arafa Holding operating as a vertically integrated manufacturer, lead-times are almost cut in half, ranging from six to eight weeks on average. This creates breathing room for Coco Blanco in terms of immediate stock replenishment, as well as receiving samples of new products. With the majority of the supply chain running through a single manufacturer, production costs and turnarounds are minimized due to a seamless and low-risk operating procedure.

79

LINE PLAN

STYLE #

Name

Quantity

September

October

November

December

January

February

Quantities

Quantities

Quantities

Quantities

Quantities

Quantities

Total

101

Emiliano

1,000,000

60,000

60,000

90,000

90,000

60,000

50,000

410,000

102

Mateo

1,000,000

60,000

60,000

90,000

90,000

60,000

50,000

410,000

103

Gabriel

1,000,000

60,000

60,000

90,000

90,000

60,000

50,000

410,000

TOTAL

180,000

180,000

270,000

270,000

180,000

150,000

1,230,000

Quantity

March

April

May

June

July

August

Total

Quantities

Quantities

Quantities

Quantities

Quantities

Quantities

STYLE #

Name

101

Emiliano

1,000,000

102

Mateo

1,000,000

103

Gabriel

1,000,000

TOTAL

STYLE #

Name

Quantity

60,000

100,000

110,000

110,000

110,000

100,000

590,000

60,000

100,000

110,000

110,000

110,000

100,000

590,000

60,000

100,000

110,000

110,000

110,000

100,000

590,000

180,000

300,000

330,000

330,000

330,000

300,000

1,770,000

Wholesale

Wholesale

Cost

Cost

Per Unit

Total

Per Unit

Total

Margin

Margin %

101

Emiliano

1,000,000

$78.00

$78,000,000.00

$7.56

$7,560,000.00

$70.44

90.31%

102

Mateo

1,000,000

$102.00

$102,000,000.00

$10.28

$10,280,000.00

$91.72

89.92%

103

Gabriel

1,000,000

$120.00

$120,000,000.00

$11.80

$11,800,000.00

$108.20

90.17%

TOTAL

$75.00

$300,000,000.00

$7.41

$29,640,000.00

$67.59

$0.68

80

SOURCING PLACEMENT DECISION

Upon examining the research compiled for Egypt, Peru, and the Philippines, we have decided that it would be in our best interest to source from Arafa Holding, a vertically integrated manufacturer based in Egypt. From a financial perspective, both manufacturing and shipping costs are cheaper across the board from suppliers in Egypt in comparison to those in Peru and the Philippines. Arafa Holding is conveniently situated in Egypt’s Qualifying Industrial Zone, or “QIZ”, meaning all textile and apparel exports from the manufacturer will be duty-free entering the United States. Furthermore, because Arafa Holding operates through a vertically integrated supply chain model, this ensures minimal contingencies, as well as exceptional lead-times for Coco Blanco. Arafa holding has an impressive clientele, consisting of world renowned luxury and fast fashion brands which range from Armani to Zara. These brands require very high-quality materials for production, thus Arafa Holding sources most of its fabric from Carvico in Italy to ensure top tier standards.

Manufacturing standards are just as critical. Over 13,000 skilled workers have been trained by experts from Italy and use the latest textile technology to construct high-quality garments at mass quantities. Considering Coco Blanco is a luxury swimwear brand, sourcing Italian fabrics for production is ideal. Overall, we have found this sourcing strategy to be extremely efficient and profitable.

81

82

DISTRIBUTION

STRATEGY

COCO BLANCO

PART V

As a multi-channel retailer - Coco Blanco is a startup men’s swimwear business with four beautiful store locations within the United States as well as an e-commerce website. Our specialty store locations will be on or within close proximity to the beaches of Miami, Los Angeles, San Francisco, and Honolulu. As we venture into the future, Coco Blanco plans to expand globally, positioning flagship stores in European markets such as Spain, Italy, and France. The S/S19 line will be comprised of diverse swimwear styles in effort to appeal to a broad spectrum of consumers.  The primary styles in the line consist of the Emiliano brief, the Mateo fitted trunk, and the Gabriel trunk. Within this collection - we plan on producing and manufacturing quantities of 3,000,000 swimsuits throughout the first year. This volume will be allocated to our startup stores while fulfilling customer orders. Late spring and early summer (May, June, July) are anticipated to be our peak months in terms of sales and distribution.

Throughout these three months, we will be rolling out over 330,000 units while moving swim styles from the previous season. In order to facilitate this strategy, Coco Blanco will require a logistics company that will house its swimwear, while distributing its orders in a timely and cost efficient manner. Ensuring flexibility throughout the most demanding months of business will be imperative for our logistics provider when determining our final distribution strategy. For this specific strategy, we have closely examined how XPO Logistics Inc., Pixior Logistics, and C.H. Robinson rank in terms of inventory management, order turn around, pick and pack, value added services, costs, size, customers, and location.

83

XPO LOGISTICS INC. XPO Logistics Inc. works with retailers of all types of sizes from international mass-market to high-end luxury brands.

Their track record has a proven ability to add value while improving the consumer experience through omni-channel distribution operations. XPO logistics works to streamline their DC processes to reduce cycle times and costs that are associated with pick-and-pack operations. XPO Logistics distribution centers are located next to major ports with abilities to ship to regional DC’s, stores, and consumers. When it comes to operating stores, XPO Logistics has a system that replenishes merchandise levels in store locations. XPO Logistics also provides ticketing, labeling, and packaging services that enhance product presentation.

PIXIOR LOGISTICS Pixior Logistics works with a multitude of entrepreneurs and established businesses, both big and small, to expand to new markets and serve near and far consumers, all while reducing the cost and time of shipping. In addition, Pixior eliminates the challenges of storage and shipping so that companies can focus on growing their global business. The Pixior platform revolves around a unified and complex network of global warehouses.

Whether a client is big or small, established or new, Pixior will strive to accommodate their needs and desires as business grows. Furthermore, Pixior specializes in the import, customs clearance, receipt, warehousing, fulfillment, and distribution of garment, shoes and accessories in North America. As a supply chain management consultant, Pixior’s commitment to continuous improvement of the apparel supply chain through investment in research and development has given the company a technological advantage that guarantees the services they deliver are world-class. Considering that two of Coco Blanco’s specialty store locations are positioned in California (Los Angeles and San Francisco), Pixior is an extremely lucrative choice because of its close proximity.

C.H. ROBINSON With over 120,000 customers and over 100 years of experience, C.H. Robinson has become one of the world’s largest third-party logistic providers. C.H. has developed several sub-brands to help companies develop their supply chain to be smarter. They offer consulting, freight quotes, and technology that helps businesses easily communicate about their shipments.

The company understands how importance of staying competitive in the market. This helped them develop their slogan “Accelerate your Advantage”. They aim to constantly exceed expectations and stay innovative to help companies have a flexible, faster, and efficient supply chain. They work with large companies as well as budding new business. C.H. Robinson is able to help with a business’s planning, purchasing, transportation, and delivery.

84

DISTRIBUTOR RANKING

DISTRIBUTOR

XPO LOGISTICS

PIXIOR

C.H. ROBINSON

Inventory Management

10

8

7

Order Turnaround

9

10

10

Pick & Pack

10

8

8

Value Added Services

10

10

8

Costs

8

8

8

Size

10

7

9

Customers

9

9

9

Multiple Locations

10

5

10

Location

10

10

10

Total

86

75

79

AVERAGE

9.5

8.3

8.8

DISTRIBUTION CENTER MAP

85

DISTRIBUTOR PROFILE

Inventory Management XPO Logistics Inc.: XPO Logistics has a warehouse management system that facilitates real-time inventory and order management. The order management system has a workflow solution with full trace and history capabilities. XPO Management has a Transportation Manager system that delivers the most effective response to various transportation services. Their Global Trade Manager service application prepares global trade documentation.

Pixior: Â Utilizes the latest Electronic Data Interchange (EDI) services, keeping companies connected and up-to-date.

C.H. Robinson: C.H. Robinson uses the latest in warehouse technology to help communicate inventory. C.H. Robinson can handle crossdock, consolidation, pallet-in-pallet-out, breakbulk, re-palletization, and SKU management for their clients.

Order Turn Around XPO Logistics Inc.: Orders are processed within the same day.

Pixior: Warehouses process and ship orders same-day and are strategically located to reach domestic and international customers within a few days.

C.H. Robinson: Works closely with retailers and e-commerce while understanding that time response is one of the most important factors to their clients and customers.

Pick & Pack XPO Logistics Inc.: Provides the right box size and strength, cushions the product inside the box, seals the package properly, labels the box with the correct address and return label, the shipment is then palletized or put on a crate - based on the size.

Pixior: Pixior Logistics is a full service order fulfillment and pick & pack provider.

C.H. Robinson: C.H. Robinson is able to provide all services needed in the distribution chain, including pick and pack through third party outlets.

Value Added Services XPO Logistics Inc.: Warehousing & Distribution, Managed Transportation, Omni-channel Fulfillment, Manufacturing Support (Including Kitting, Light Assembly and Point of Use Delivery), Packaging (Primary & Secondary), Reverse Logistics, Supply Chain Consulting, Pick & Pack, Direct to Consumer, Lot Code and Date Code Tracking, Floor-ready Displays, Business to Business, Workforce Management, Mixing Centers Pixior: Product Warehousing, Inventory Management, Returns Management, Transportation Management, Custom Reporting, Kitting & Assembly, Reticketing & Labeling, Assembly, Cross-docking Programs, Dedicated CSR, EDI & Bar-coding, Inventory & Warehouse Management, Pick & Fulfillment, Pick & Pack, US Customs Bonded, E-commerce and Websites Management, Reverse Logistics and Return Processing, Drop Ship Orders C.H. Robinson: Reverse Logistics, Special Handling, Warehousing and Inventory, Expedited Transportation

Cost XPO Logistics Inc.: Item rates are determined by weight, cube, miles traveled along with additional services.

Pixior: Item rates are determined by weight, cube, miles traveled along with additional services.

C.H. Robinson: Item rates are determined by weight, cube, miles traveled along with additional services.

86

Size XPO Logistics Inc.: There are over 173 million square feet of logistics facility space, globally. 90 million are within North America.

Pixior: 850,000 square-feet C.H. Robinson: C.H. Robinson is an asset light organization, so besides their corporate offices, they lease over 150 locations throughout North America and more around the world.

Clientele XPO Logistics Inc.: Has over 50,000 customers.

Pixior: Over 20,000 customers. Most notably - Intermix, Barneys New York, Saks Fifth Ave, Neiman Marcus, Bloomingdales, Urban Outfitters, Amazon.

C.H. Robinson: Has over 120,000 customers, including Microsoft, Wal-Mart, Lowe's, HSN, and Coca-Cola.

Distribution Channel XPO Logistics Inc.: Top 10 global logistics company located in 32 countries with over 97,000 employees and 1,505 locations.

Pixior: Four prime locations spread throughout the United States west coast.

C.H. Robinson: C.H. Robinson has headquarters in the U.S., Netherlands, India, China, Australia, Argentina, Brazil, Chile, Colombia, PerĂş, Uruguay. They have smaller offices across Asia and South America as well.

Location XPO Logistics Inc.: 12650 NW 25th Street Suite 100, Miami, FL 33182 Pixior: 10621 6th Street, Rancho Cucamonga, CA 91730 C.H. Robinson: 14701 Charlson Road, Eden Prairie, MN 55347

87

XPO LOGISTICS http://xpo.com/

Pros •

XPO Logistics has an abundance of services and logistics offerings

•

Strong financial performance

•

Substantial customer base

•

Largest and fastest growing transportation logistics company in the United States

•

Many locations around the U.S. and the world

Cons •

Competing prices with lower-cost options

•

Well-established in current operations but lacking in innovation despite high spending in research & development

•

Reliance on third parties for freight forwarding – which can impact performance

•

Strong regulations and risks can negatively affect operations

88

PIXIOR http://pixior.com/

Pros •

Clientele is composed of various world-renowned luxury retailers such as Barney's New York and Saks Fifth Ave

•

Orders are processed and shipped the day they are received

•

Extensive list of value-added services ranging from warehousing to e-commerce and website management

•

24/7 operations and back office support

•

Multiple locations in close proximity to Los Angeles and the biggest ports on the west coast

•

Assisting in the expansion of omni-channel distribution

Cons •

Extremely condensed network – only 4 locations of which are located exclusively on the west coast

•

Warehouse storage capacity is significantly small in contrast to XPO Logistics and C.H. Robinson

•

Staff may not be vast enough to facilitate demands

•

Has been operating less than 20 years

89

C.H. ROBINSON http://chrobinson.com/

Pros •

Clientele is composed of various big names in retail, like Wal-Mart.

•

Consistently provide great quality an service to all of their clients

•

Experiencing great success in new markets, so they have been able to expand and diversify.

•

Strong distribution network worldwide. They have offices in most major cities.

Cons •

Business model is not adapting quickly and is creating missed opportunities

•

They are not experience success in new product sectors

•

Often fail at properly forecasting demand

90

FINAL DISTRIBUTION STRATEGY For our final distribution strategy we have chosen XPO Logistics Inc. as our logistics company. XPO Logistics has offices and warehouses located within 11 miles from the Miami Seaport - making it quickly accessible, efficient, and flexible. XPO Logistics is also located near our store locations in Los Angeles and San Francisco with shipping to these destinations as well as Honolulu. In terms of a global supply chain - there are also locations and services dispersed around the globe as we plan to expand our business. XPO Logistics is one of the leading and largest logistics companies in the world with exceptional customer service. With a highly trained workforce - XPO Logistics values trust, responsiveness, unity, commitment, safety and entrepreneurship. This is present throughout their business practices. With advanced inventory management backed by the latest in technological advances - we believe XPO Logistics to be the best choice for Coco Blanco’s distribution strategy.

91

92

CONCLUSION

As a lifestyle brand selling luxury branded swimwear for men, it is imperative that Coco Blanco has a supply chain strategy that is cost efficient and is upheld to the standards and values of our company. As demonstrated, we have compared and contrasted global companies located throughout the world to supply the materials and manufacturing of our products. The Italian based company, Carvico, will supply the beautifully made knit fabrics designed specifically for sun and water. After conducting a thorough analysis of Egypt, Peru, and the Philippines – we strongly believe that Egypt would be the best country to manufacture our product. This is primarily due to the fact that labor costs remain relatively low and that Egypt offers a duty-free trade zone. In particular, Arafa Holding in Egypt will be the manufacturer of Coco Blanco swimwear since they have a reputation for designing quality crafted knitwear garments. Once our swimwear is produced – it will be shipped via ZIM Integrated Shipping Services Ltd. to the Miami seaport.

As a multichannel luxury retailer, we will have an e-commerce site as well as four store locations that will display our product. XPO Logistics will warehouse and fulfill our orders due to their locations, customer satisfaction, and experience working for luxury clientele. Through this supply chain strategy that has been researched and examined, Coco Blanco is confident that this is the best route for our SS19 line.

93

94

APPENDIX

COCO BLANCO

95

PART VII

TECH

PACK

The following is the tech package for our SS19 collection. The styles in which will be included are Emiliano, Mateo, and Gabriel. This is a how-to manual for our product which contains our fabrics, colorways, components, thread, label placement, size measurements, and packing details.

96

EMILIANO

97

DESIGN SHEET

PAGE #01

COMPANY NAME: Coco Blanco

STYLE # 101

ADDRESS: 350 Lincoln Road

SKETCH:

Miami Beach, FL 33139

PHONE: (305) 431-9476 EMAIL: info@cocoblanco.com GARMENT INFORMATION GROUP NAME: Emiliano CLASSIFICATION: Men’s Swimwear SEASON: S/S19 FABRIC CONTENT: Vita and Spider by Carvico COLORWAY: Palm, Fresh Water, Bright White, Ivy Green

DESCRIPTION: Fitted swim brief with flat elastic waistband

DESIGNER INITIALS:

DATE CREATED: JUL. 04, 2018

DATE MODIFIED:

98

DATE RELEASED:

PAGE #02

ILLUSTRATION SHEET COMPANY NAME: Coco Blanco

STYLE # 101

ADDRESS: 350 Lincoln Road

CLASSIFICATION:

SEASON: S/S19

Men’s Swimwear

Miami Beach, FL 33139

GROUP NAME: Emiliano COLORWAY:

PHONE: (305) 431-9476 EMAIL: info@cocoblanco.com

PALM

FRESH WATER

BRIGHT WHITE

IVY GREEN

SKETCH:

DESIGNER INITIALS:

FABRIC INFORMATION 78% Polyamide, 22% Elastane 390 Vita 24030 – Carvico (BG) Italia

STYLE WIDTH 150 cm

DATE CREATED: JUL. 04, 2018

SIZE RANGES

DELIVERY DATE

S-M-L-XL-XXL

COMMENTS

TBD

Sample size: M

DATE RELEASED:

DATE MODIFIED:

99

PAGE #03

FABRIC SHEET COMPANY NAME: Coco Blanco

STYLE # 101

ADDRESS: 350 Lincoln Road

CLASSIFICATION:

SEASON: S/S19

Men’s Swimwear

Miami Beach, FL 33139

GROUP NAME: Emiliano

PHONE: (305) 431-9476

COLORWAY:

EMAIL: info@cocoblanco.com PALM

SKETCH:

FRESH WATER

BRIGHT WHITE

IVY GREEN

FABRIC: 78% Polyamide, 22% Elastane Width: 150 cm Weight: 190 g / m²

- Versatile, hyper-resistant, thin, elegant, stretch, soft, breathable - Muscular compression and comfort

- Resistant to chlorine, suntan creams and oils

DESIGNER INITIALS:

FABRIC INFORMATION 78% Polyamide, 22% Elastane 390 Vita 24030 – Carvico (BG) Italia

DATE CREATED: JUL. 04, 2018

STYLE WIDTH

SIZE RANGES S-M-L-XL-XXL

150 cm

DELIVERY DATE TBD

Sample size: M

DATE MODIFIED:

100

DATE RELEASED:

COMMENTS

PAGE #04

FABRIC SHEET COMPANY NAME: Coco Blanco

STYLE # 101

ADDRESS: 350 Lincoln Road

CLASSIFICATION:

SEASON: S/S19

Men’s Swimwear

Miami Beach, FL 33139

GROUP NAME: Emiliano

PHONE: (305) 431-9476

COLORWAY:

EMAIL: info@cocoblanco.com

BRIGHT WHITE

SKETCH:

FABRIC: 80% Polyamide and 20% Elastane Width: 150 cm Weight: 150 g / m²

- Innovative bi-elastic micromesh - Naturally moisture wicking - Leaves skin fresh and dry / prevents itch

DESIGNER INITIALS:

FABRIC INFORMATION

STYLE WIDTH

80% Polyamide, 20% Elastane 700 Spider 24030 – Carvico (BG) Italia

150 cm

DATE CREATED: JUL. 04, 2018

SIZE RANGES S-M-L-XL-XXL

DELIVERY DATE TBD

Sample size: M

DATE MODIFIED:

101

DATE RELEASED:

COMMENTS Liner is sewn inside

PAGE #05

COMPONENT SHEET COMPANY NAME: Coco Blanco

STYLE # 101

ADDRESS: 350 Lincoln Road Miami Beach, FL 33139

GROUP NAME: Emiliano SEASON: S/S19

CLASSIFICATION: Men’s Swimwear

PHONE: (305) 431-9476

COLORWAY:

EMAIL: info@cocoblanco.com PALM

ITEM-VENDOR-CODE-ORIGIN Elastic, Dritz, #308523

Thread, Maxi-Lock, #321126

CONTENT

SIZE-QUANTITY-UNIT OF MEASURE

FRESH WATER

BRIGHT WHITE

LOCATION

IVY GREEN

COLOR

55% Cotton 45% Rubber

0.375”, 1 per garment

Inside waistband

White

100% Polyester

3,000 YDS/SPOOL

All seams, stitches, and hems

Flamingo Pink, Fresh Water, Bright White, Ivy Green

DATE CREATED: JUL. 04, 2018

DATE MODIFIED:

102

DATE RELEASED:

COMMENTS

Thread color coordinates with suit color

LABEL/PACKING SHEET

PAGE #06

COMPANY NAME: Coco Blanco

STYLE # 101

ADDRESS: Miami Beach, FL

GROUP NAME: Emiliano SEASON: S/S19

CLASSIFICATION: Men’s Swimwear PHONE: (305) 431-9476

COLORWAY:

EMAIL: info@cocoblanco.com PALM

ITEM-VENDOR-CODE-ORIGIN Barcode Sticker Style #EVQ113A5

CONTENT

SIZE-QUANTITY-UNIT OF MEASURE

Adhesive Vinyl 0.75” x 2”

FRESH WATER

BRIGHT WHITE

LOCATION Attached to hangtag

1 per garment

IVY GREEN

COLOR

COMMENTS

White with black text

New York Printing Solutions Inc. Hangtag, Style # PHT021A1

Cardstock Matte

Side seam

1 per garment

White with black text

New York Printing Solutions Inc. Pins #SP1

Finished brass

1 per garment

Attach to garment

Gold

Attach the hang tag to the left side of

All-in-One-Supplier-Inc.

the garment (opposite of the label on the right)

Poly Bag, Style #MB-11 International Plastics

Clear Matte .002 Plastic 8.5” x 11”

DATE CREATED: JUL. 04, 2018

Over Garment

1 per garment

DATE MODIFIED:

103

Clear matte with black text

DATE RELEASED:

PAGE #07

LABEL PLACEMENT SHEET COMPANY NAME: Coco Blanco

STYLE # 101

ADDRESS: 350 Lincoln Road

GROUP NAME: Emiliano

Miami Beach, FL 33139

SEASON: S/S19

CLASSIFICATION: Men’s Swimwear

PHONE: (305) 431-9476

COLORWAY:

EMAIL: info@cocoblanco.com PALM

DETAIL:

BRIGHT WHITE

IVY GREEN

DETAIL: 1. Center waistband

2.

DATE CREATED: JUL. 04, 2018

FRESH WATER

DATE MODIFIED:

104

Right center-mid seam

DATE RELEASED:

PAGE #08

DETAIL/CONSTRUCTION SHEET COMPANY NAME: Coco Blanco

STYLE # 101

ADDRESS: 350 Lincoln Road

GROUP NAME: Emiliano

Miami Beach FL 33139

SEASON: S/S19

CLASSIFICATION: Men’s Swimwear

PHONE: (305) 431-9476

COLORWAY:

EMAIL: info@cocoblanco.com PALM

FRESH WATER

BRIGHT WHITE

IVY GREEN

DETAIL:

DATE CREATED: JUL. 04, 2018

DATE MODIFIED:

105

DATE RELEASED:

PAGE #09

SPEC SHEET COMPANY NAME: Coco Blanco

STYLE # 101

ADDRESS: 350 Lincoln Road Miami Beach FL 33139

GROUP NAME: Emiliano SEASON: S/S19

CLASSIFICATION: Men’s Swimwear

PHONE: (305) 431-9476

COLORWAY:

EMAIL: info@cocoblanco.com PALM

TECHNICAL SKETCH:

CODE

FRESH WATER

BRIGHT WHITE

IVY GREEN

SKETCH/PHOTO:

POINT OF MEASURE

TOL.±

S

M

L

XL

XXL

A

½ Waist Width

1

32

34

36

38

B

Waistband Height

1

3.2

3.2

3.2

3.2

3.2

C

Side Length (including waistband)

1

10

10

10

11

11

D

Center Front Length

1

25

26

27

28

29

E

½ Hip Width

1

35

36

38

40

42

F

½ Leg Opening Straight

1

18.5

19.5

20.5

21.5

22.5

G

Binding Width

1

13

13

13

13

12

H

Bottom Width (including binding)

1

8.5

8.5

9.5

9.5

9.5

COMMENTS: All measurements are in centimeters.

DATE CREATED: JUL. 04, 2018

DATE MODIFIED:

106

DATE RELEASED:

40

M AT E O

107

DESIGN SHEET

PAGE #01

COMPANY NAME: Coco Blanco

STYLE # 102

ADDRESS: 350 Lincoln Road Miami Beach FL 33139

SKETCH:

PHONE: (305) 431-9476 EMAIL: info@cocoblanco.com GARMENT INFORMATION GROUP NAME: Mateo CLASSIFICATION: Men’s Swimwear SEASON: S/S19 FABRIC CONTENT: 80% Polyamide, 20% Elastane COLORWAY: Pink Stripe, Lime Soda, Bright White, Nimbus Cloud

DESCRIPTION: Fitted, longer swim brief with elastic waistband and drawstring

DESIGNER INITIALS:

DATE CREATED: JUL. 04, 2018

DATE MODIFIED:

108

DATE RELEASED:

PAGE #02

ILLUSTRATION SHEET COMPANY NAME: Coco Blanco

STYLE # 102

ADDRESS: 350 Lincoln Road

CLASSIFICATION:

SEASON: S/S19

Men’s Dress Shirt

Miami Beach, FL 33139

GROUP NAME: Mateo COLORWAY:

PHONE: (305) 431-9476 EMAIL: info@cocoblanco.com

FLAMINGO

LIME SODA

BRIGHT WHITE

NIMBUS CLOUD

SKETCH:

DESIGNER INITIALS:

FABRIC INFORMATION 80% Polyamide, 20% Elastane 384 Malaga 24030 – Carvico (BG) Italia

STYLE WIDTH 150 cm

DATE CREATED: JUL. 04, 2018

SIZE RANGES

DELIVERY DATE

S-M-L-XL-XXL

COMMENTS

TBD

Sample size: M

DATE MODIFIED:

109

DATE RELEASED:

PAGE #03

FABRIC SHEET COMPANY NAME: Coco Blanco

STYLE # 102

ADDRESS: 350 Lincoln Road

CLASSIFICATION:

SEASON: S/S19

Men’s Swimwear

Miami Beach FL 33139

GROUP NAME: Mateo

PHONE: (305) 431-9476

COLORWAY:

EMAIL: info@cocoblanco.com FLAMINGO

SKETCH:

LIME SODA

BRIGHT WHITE NIMBUS CLOUD

FABRIC: 80% Polyamide 20% Elastane Width: 150 cm Weight: 190 g / m² - Lightweight and elastic - Resistant to chlorine and abrasions - UV protected

DESIGNER INITIALS:

FABRIC INFORMATION

STYLE WIDTH

80% Polyamide, 20% Elastane 384 Malaga 24030 – Carvico (BG) Italia

150 cm

DATE CREATED: JUL. 04, 2018

SIZE RANGES S-M-L-XL-XXL

DELIVERY DATE TBD

Sample size: M

DATE MODIFIED:

110

DATE RELEASED:

COMMENTS

PAGE #04

FABRIC SHEET COMPANY NAME: Coco Blanco

STYLE # 102

ADDRESS: 350 Lincoln Road

CLASSIFICATION:

SEASON: S/S19

Men’s Swimwear

Miami Beach, FL 33139

GROUP NAME: Mateo

PHONE: (305) 431-9476

COLORWAY:

EMAIL: info@cocoblanco.com

BRIGHT WHITE

SKETCH:

FABRIC: 80% Polyamide and 20% Elastane Width: 150 cm Weight: 150 g / m²

- Innovative bi-elastic micromesh - Naturally moisture wicking - Leaves skin fresh and dry / prevents itch

DESIGNER INITIALS:

FABRIC INFORMATION

STYLE WIDTH

80% Polyamide, 20% Elastane 700 Spider 24030 – Carvico (BG) Italia

150 cm

DATE CREATED: JUL. 04, 2018

SIZE RANGES S-M-L-XL-XXL

DELIVERY DATE TBD

Sample size: M

DATE MODIFIED:

111

DATE RELEASED:

COMMENTS Liner is sewn inside

PAGE #05

COMPONENT SHEET COMPANY NAME: Coco Blanco

STYLE # 102

ADDRESS: 350 Lincoln Road Miami Beach, FL 33139

GROUP NAME: Mateo SEASON: S/S19

CLASSIFICATION: Men’s Swimwear

PHONE: (305) 431-9476

COLORWAY:

EMAIL: info@cocoblanco.com FLAMINGO

ITEM-VENDOR-CODE-ORIGIN Aglets #MC-OT17013, Morecredit Garment Accessory Co.

CONTENT Aglets: Brass

SIZE-QUANTITY-UNIT OF MEASURE

LIME SODA

BRIGHT WHITE

LOCATION

NIMBUS CLOUD

COLOR

2 per garment for both aglets and grommets

Aglets: End of drawstring Grommets: Front Center

Gold

0.375”, 1 per garment

Through waistband

White

0.375”, 1 per garment

Inside waistband

3,000 YDS/SPOOL

All seams, stitches, and hems

Grommets: Brass Grommets #100136, Dritz Drawstring #120431, Mood

Elastic #30852, Dritz

100% Poly

55% Cotton

COMMENTS Aglets need to be engraved with the brand name, Coco Blanco

White

45% Rubber

Thread #321126, Maxi-Lock

100% Polyester

DATE CREATED: JUL. 04, 2018

DATE MODIFIED:

112

Fresh Water, Lime Soda, Bright White, Nimbus Cloud

DATE RELEASED:

Thread color coordinates with suit color

LABEL/PACKING SHEET

PAGE #06

COMPANY NAME: Coco Blanco

STYLE # 102

ADDRESS: Miami Beach, FL

GROUP NAME: Mateo SEASON: S/S19

CLASSIFICATION: Men’s Swimwear PHONE: (305) 431-9476

COLORWAY:

EMAIL: info@cocoblanco.com FLAMINGO

ITEM-VENDOR-CODE-ORIGIN Barcode Sticker Style #EVQ113A5

CONTENT

SIZE-QUANTITY-UNIT OF MEASURE

Adhesive Vinyl 0.75” x 2”

LIME SODA

BRIGHT WHITE

LOCATION Attached to hangtag

1 per garment

NIMBUS CLOUD

COLOR

COMMENTS

White with black text

New York Printing Solutions Inc. Hangtag, Style # PHT021A1

Cardstock Matte

Side seam

1 per garment

White with black text

New York Printing Solutions Inc. Pins #SP1

Finished brass

1 per garment

Attach to garment

Gold

Attach the hang tag to the left side of

All-in-One-Supplier-Inc.

the garment (opposite of the label on the right)

Poly Bag, Style #MB-11 International Plastics

Clear Matte .002 Plastic 8.5” x 11”

DATE CREATED: JUL. 04, 2018

Over Garment

1 per garment

DATE MODIFIED:

113

Clear matte with black text

DATE RELEASED:

PAGE #07

LABEL PLACEMENT SHEET COMPANY NAME: Coco Blanco

STYLE # 140011

ADDRESS: 350 Lincoln Road

GROUP NAME: Mateo

Miami Beach, FL 33139

SEASON: S/S19

CLASSIFICATION: Men’s Swimwear

PHONE:

COLORWAY:

EMAIL: info@cocoblanco.com FLAMINGO

DETAIL:

DATE CREATED: JUL. 04, 2018

LIME SODA

BRIGHT WHITE

NIMBUS CLOUD

DETAIL:

DATE MODIFIED:

114

1.

Center waistband

2.

Right center-mid seam

DATE RELEASED:

PAGE #08

DETAIL/CONSTRUCTION SHEET COMPANY NAME: Coco Blanco

STYLE # 102

ADDRESS: New York, USA

GROUP NAME : Mateo SEASON: S/S19

CLASSIFICATION: Men’s Swimwear PHONE: (305) 431-9476

COLORWAY:

EMAIL: info@cocoblanco.com FLAMINGO

LIME SODA

BRIGHT WHITE

NIMBUS CLOUD

DETAIL:

DATE CREATED: JUL. 04, 2018

DATE MODIFIED:

115

DATE RELEASED:

PAGE #09

SPEC SHEET COMPANY NAME: Coco Blanco

STYLE # 102

ADDRESS: New York, USA

GROUP NAME: Mateo SEASON: S/S19

CLASSIFICATION: Men’s Swimwear PHONE: (305) 431-9476

COLORWAY:

EMAIL: info@cocoblanco.com FLAMINGO

TECHNICAL SKETCH:

CODE

LIME SODA

BRIGHT WHITE

NIMBUS CLOUD

SKETCH/PHOTO:

POINT OF MEASURE

TOL.±

S

M

L

XL

XXL

A

½ Waist Width

1

30

32

34

36

38

B

Waistband Height

1

2.5

2.5

2.5

2.5

2.5

C

Side Length (including waistbad)

1

22

23

24

26

27

D

Front Height

1

25

26

27

28

29

E

½ Hip Width

1

37

39

40

42

44

F

½ Leg Opening Straight

1

14

15

16

17

18

G

Leg Hem Height

1

13.5

13.5

13.5

14

14

H

Bottom Width

1

13.5

13.5

13.5

14

14

COMMENTS: DATE CREATED: JUL. 04, 2018

DATE MODIFIED:

116

DATE RELEASED:

GABRIEL

117

DESIGN SHEET

PAGE #01

COMPANY NAME: Coco Blanco

STYLE # 103

ADDRESS: 350 Lincoln Road

SKETCH:

Miami Beach, FL 33139

PHONE: (305) 431-9476 EMAIL: info@cocoblanco.com GARMENT INFORMATION GROUP NAME: Emiliano CLASSIFICATION: Men’s Swimwear SEASON: S/S19 FABRIC CONTENT: Darwin and Spider by Carvico COLORWAY: Pink Stripe, Fresh Water, Bright White, Nimbus Cloud

DESCRIPTION: Swim short with elastic waistband and drawstring. Inner lining for comfort and coverage.

DESIGNER INITIALS:

DATE CREATED: JUL. 04, 2018

DATE MODIFIED:

118

DATE RELEASED:

PAGE #02

ILLUSTRATION SHEET COMPANY NAME: Coco Blanco

STYLE # 103

ADDRESS: 350 Lincoln Road

CLASSIFICATION:

SEASON: S/S19

Men’s Swimwear

Miami Beach, FL 33139

GROUP NAME: Gabriel COLORWAY:

PHONE: (305) 431-9476 EMAIL: info@cocoblanco.com

PINK STRIPE

FRESH WATER

BRIGHT WHITE

NIMBUS CLOUD

SKETCH:

DESIGNER INITIALS:

FABRIC INFORMATION 100% Polyester 814 Darwin 24030 – Carvico (BG) Italia

STYLE WIDTH 160 cm

DATE CREATED: JUL. 04, 2018

SIZE RANGES

DELIVERY DATE

S-M-L-XL-XXL

COMMENTS

TBD

Sample size: M

DATE MODIFIED:

119

DATE RELEASED:

PAGE #03

FABRIC SHEET COMPANY NAME: Coco Blanco

STYLE # 103

ADDRESS: 350 Lincoln Road

CLASSIFICATION:

SEASON: S/S19

Men’s Swimwear

Miami Beach, FL 33139

GROUP NAME: Gabriel

PHONE: (305) 431-9476

COLORWAY:

EMAIL: info@cocoblanco.com PINK STRIPE

SKETCH:

FRESH WATER

BRIGHT WHITE

NIMBUS CLOUD

FABRIC: 100% Polyester Width: 160 cm Weight: 170 g / m²

- Totally chlorine proof and UV protected - Perfect fit over time - Breathable and fast drying

DESIGNER INITIALS:

FABRIC INFORMATION 100% Polyester 814 Darwin 24030 – Carvico (BG) Italia

DATE CREATED: JUL. 04, 2018

STYLE WIDTH

SIZE RANGES S-M-L-XL-XXL

160 cm

DELIVERY DATE TBD

Sample size: M

DATE MODIFIED:

120

DATE RELEASED:

COMMENTS

PAGE #04

FABRIC SHEET COMPANY NAME: Coco Blanco

STYLE # 103

ADDRESS: 350 Lincoln Road

CLASSIFICATION:

SEASON: S/S19

Men’s Swimwear

Miami Beach, FL 33139

GROUP NAME: Gabriel

PHONE: (305) 431-9476

COLORWAY:

EMAIL: info@cocoblanco.com

BRIGHT WHITE

SKETCH:

FABRIC: 80% Polyamide and 20% Elastane Width: 150 cm Weight: 150 g / m²

- Innovative bi-elastic micromesh - Naturally moisture wicking - Leaves skin fresh and dry / prevents itch

DESIGNER INITIALS:

FABRIC INFORMATION

STYLE WIDTH

80% Polyamide, 20% Elastane 700 Spider 24030 – Carvico (BG) Italia

150 cm

DATE CREATED: JUL. 04, 2018

SIZE RANGES S-M-L-XL-XXL

DELIVERY DATE TBD

Sample size: M

DATE MODIFIED:

121

DATE RELEASED:

COMMENTS Liner is sewn inside

PAGE #05

COMPONENT SHEET COMPANY NAME: Coco Blanco

STYLE # 103

ADDRESS: 350 Lincoln Road Miami Beach, FL 33139

GROUP NAME: Gabriel SEASON: S/S19

CLASSIFICATION: Men’s Swimwear

PHONE: (305) 431-9476

COLORWAY:

EMAIL: info@cocoblanco.com PINK STRIPE

ITEM-VENDOR-CODE-ORIGIN Aglets #MC-OT17013, Morecredit Garment Accessory Co.

CONTENT Aglets: Brass

SIZE-QUANTITY-UNIT OF MEASURE 2 per garment for both aglets and grommets

FRESH WATER

BRIGHT WHITE

LOCATION

NIMBUS CLOUD

COLOR

Aglets: End of drawstring Grommets: Front Center

Gold

0.375”, 1 per garment

Through waistband

White

0.375”, 1 per garment

Inside waistband

3,000 YDS/SPOOL

All seams, stitches, and hems

Grommets: Brass Grommets #100136, Dritz Drawstring #120431, Mood

Elastic #30852, Dritz

100% Poly

55% Cotton

COMMENTS Aglets need to be engraved with the brand name, Coco Blanco

White

45% Rubber

Thread #321126, Maxi-Lock

100% Polyester

DATE CREATED: JUL. 04, 2018

DATE MODIFIED:

122

Flamingo Pink, Fresh Water, Bright White, Nimbus Cloud

DATE RELEASED:

Thread color coordinates with suit color

LABEL/PACKING SHEET

PAGE #06

COMPANY NAME: Coco Blanco

STYLE # 103

ADDRESS: Miami Beach, FL

GROUP NAME: Gabriel SEASON: S/S19

CLASSIFICATION: Men’s Swimwear PHONE: (305) 431-9476

COLORWAY:

EMAIL: info@cocoblanco.com PINK STRIPE

ITEM-VENDOR-CODE-ORIGIN Barcode Sticker Style #EVQ113A5

CONTENT

SIZE-QUANTITY-UNIT OF MEASURE

Adhesive Vinyl 0.75” x 2”

FRESH WATER

BRIGHT WHITE

LOCATION Attached to hangtag

1 per garment

NIMBUS CLOUD

COLOR

COMMENTS

White with black text

New York Printing Solutions Inc. Hangtag, Style # PHT021A1

Cardstock Matte

Side seam

1 per garment

White with black text

New York Printing Solutions Inc. Pins #SP1

Finished brass

1 per garment

Attach to garment

Gold

Attach the hang tag to the left side of

All-in-One-Supplier-Inc.

the garment (opposite of the label on the right)

Poly Bag, Style #MB-11 International Plastics

Clear Matte .002 Plastic 8.5” x 11”

DATE CREATED: JUL. 04, 2018

Over Garment

1 per garment

DATE MODIFIED:

123

Clear matte with black text

DATE RELEASED:

PAGE #07

LABEL PLACEMENT SHEET COMPANY NAME: Coco Blanco

STYLE # 103

ADDRESS: 350 Lincoln Road

GROUP NAME: Gabriel

Miami Beach, FL 33139

SEASON: S/S19

CLASSIFICATION: Men’s Swimwear

PHONE: (305) 431-9476

COLORWAY:

EMAIL: info@cocoblanco.com PALM

DETAIL:

DATE CREATED: JUL. 04, 2018

FRESH WATER

BRIGHT WHITE

IVY GREEN

DETAIL:

DATE MODIFIED:

124

1.

Center waistband

2.

Right center-mid seam

DATE RELEASED:

PAGE #08

DETAIL/CONSTRUCTION SHEET COMPANY NAME: Coco Blanco

STYLE # 103

ADDRESS: 350 Lincoln Road

GROUP NAME: Gabriel

Miami Beach FL 33139

SEASON: S/S19

CLASSIFICATION: Men’s Swimwear

PHONE: (305) 431-9476

COLORWAY:

EMAIL: info@cocoblanco.com PALM

FRESH WATER

BRIGHT WHITE

NIMBUS CLOUD

DETAIL:

DATE CREATED: JUL. 04, 2018

DATE MODIFIED:

125

DATE RELEASED:

PAGE #09

SPEC SHEET COMPANY NAME: Coco Blanco

STYLE # 103

ADDRESS: 350 Lincoln Road Miami Beach FL 33139

GROUP NAME: Gabriel SEASON: S/S19

CLASSIFICATION: Men’s Swimwear

PHONE: (305) 431-9476

COLORWAY:

EMAIL: info@cocoblanco.com PINK STRIPE

TECHNICAL SKETCH:

CODE

FRESH WATER

BRIGHT WHITE

NIMBUS CLOUD

SKETCH/PHOTO:

POINT OF MEASURE

TOL.±

S

M

L

XL

XXL

A

½ Waist Width

1

32

34.5

36

38

40

B

Waistband Height

1

4

4

4

4

4

C

Side Length

1

33

35

36

37

39

D

Front Length

1

31

32

33

35

37

E

½ Hip Width

1

46

48

49

51

53

F

½ Leg Opening Straight

1

24

29

30

31

32

G

Leg Hem Height

1

2

2

2

2

2

H

Inleg length

1

12

12

12.5

13

13

COMMENTS: All measurements are in centimeters.

DATE CREATED: JUL. 04, 2018

DATE MODIFIED:

126

DATE RELEASED:

COST

SHEETS

127

EMILIANO

128

MATEO

129

GABRIEL

130

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