New Product and Company Presentation By: Caro Ginorio & Suzanne Brady FASM 420
simple modern timeless Functional Essential
LOGO
Mission Statement At Basico we provide only the highest quality. Ethically sourced garments guaranteed to last.
Values At Bรกsico, we value those who make our garments equally as those who choose to purchase our garments. We hope to foster an environment of respect and remain transparent throughout the entirety of our supply chain.
vision Statement We hope to provide our customers with ethically sourced essentials and key fashion items at Bรกsico. In addition, we hope to feature new socially responsible jewelry and accessory artisans periodically so as to continue to offer fresh styling ideas for our garments
logistics BĂĄsico is an online-exclusive retailer with warehouses on the west and east coast of the United States near sea ports. Once shipments arrive via boat, they will be transported via truck to these warehouses, where product will remain until customer orders are fulfilled.
Goals of strategy developement Rely on a limited number of suppliers to produce textiles and garments. 70% Southeast Asia (Sri Lanka and Thailand) and 30% Central America (Mexico). Maintaining good relationships with suppliers and keeping a close eye on working conditions, workers’ rights, and environmental impact is of the utmost importance.
PriceCATEGORIES Range PRODUCT
WOMEN’S KNITS & WOVENS
$40-$150
size Range XS-XL
Retail Sale price - Bodysuit: $50 - Trouser: $110 - T-shirt: $40 - Blouse: $60 - Sweater: $150
BODYSUIT T-SHIRT BLOUSE TROUSERS SWEATER
Target Market Basico’s customer is in between the ages of 25 and 50 years old. Someone who shops here seeks not only style and form but also upgrated quality. Our cutomers are cultured simple and conscious of the enrivonment and society’s issues. They are likely to be big spenders; well dressed ans stylish. They belong in the upper middle and upper economic class. VALS Profiles: Thinkers & Innovators.
SOURCING GUIDELINES All business conducted with Basico must comply with Basico’s code of conduct
compliance - Any company conducting business with Basico or subcontractors of the aforementioned companies must comply to Basico’s code of conduct. Non-compliance with any policy mentioned in the code of conduct will result in termination of contract with Basico. - Basico will comply with the laws of any country in which business is conducted.
Health & Safety - Healthy and safety of factory employees must be the highest priority.
Equality and Diversity - No employee will be discriminated against based on their race, religious and political beliefs, sexual orientation, age, gender, nationality, or disability. - All employees will be treated fairly and with the utmost respect at all times.
Fair wages - All employees will be paid fair and livable wages. - This fair wage should be enough to meet the basic needs of the employees and their families/dependents. - These wages will be paid in full at the time of distribution for that pay period.
labor - Child labor, forced, bonded, illegal, and prison labor will not be tolerated at any time for any reason. - Persons under the age of 15 will not be hired.
Hours Worked - Employees are not permitted to exceed 48 hours per 7-day pay period. - Overtime hours will be one and one-half times the employee’s regular rate of pay. - Employees are not permitted to work more than 6 days consecutively.
Fair wages - Employees are permitted to join or form a union of their choosing at any time. - Employees are permitted to bargain collectively. - Employers are not permitted to discourage the joining or formation of unions and collective bargaining by their employees.
Internal monitors - Buyers are permitted at any time to schedule a factory/facilities visit and to visit said factory/facilities at any time without warning. - Buyers are encouraged to visit factories often, both to observe working conditions and to build relationships between Basico and its chosen factories. -Buyers reserve the right to write-up factories for non-compliance. Three strikes policy -After three collective warnings on any violation, the factory’s contract with Basico will be terminated.
external monitors - Garment factories must be SA8000 certified through Social Accountability I nternational - Vendors must be FairTrade certified
Country Analysis and Selection What We’re Looking For: When selecting countries to source from, Básico is primarily looking at fair labor laws, sustainability, and political and economic stability within each country. Countries Selected 1. Sri Lanka 2. Mexico 3. Thailand Country Highlights Sri Lanka
Sri Lanka Sri Lanka is an island located on the southern tip of India. Sri Lanka’s main apparel exports to the United States include knit and woven garments with the country’s strengths including sportswear, lingerie, loungewear, bridal, workwear, swimwear, and children’s wear. Sri Lanka is our primary country for sourcing due to its focus on fair labor and sustainability. The country has officially and legally set a minimum wage for workers. This wage rate is fair and livable while still allowing for profitability. Sri Lanka is the first country to have a carbon-neutral manufacturing plant, and the country intends to continue environmental responsibility initiatives in apparel manufacturing. While Sri Lanka does not have any trade agreements with the United States, the two countries remain in good standing with each other.
Mexico Mexico is located in Central America. Mexico’s main apparel exports to the United States and apparel strengths include synthetic fibers with rayon and other artificial fibers, fine wool, silk, and taffeta. Mexico is our secondary country for sourcing due to its close proximity to the United States and fair and livable minimum wage requirements. Its workforce is strong and dedicated, and labor laws protect both workers and manufacturing businesses. Sourcing from Mexico is also beneficial to our because the North American Free Trade Agreement (NAFTA) allows for imports from Mexico to enter the United States tariff-free.
Thailand Thailand is located in Southeast Asia. Thailand’s main apparel exports to the United States include knit women’s undergarments, knit sweaters, and men’s suiting. Thailand is our third country for sourcing due to their expertise in knit apparel. In addition, the country’s government has supported the dedication to research and development, allowing for new technologies to be implemented in the apparel and textile industry. In addition, Thailand’s portfolio of brands, Burberry for example, it manufactures and supplies for is diverse. Thailand has a minimum wage set, however it is only livable for workers who live outside of the city. We would try to work with manufacturers to ensure that everyone is paid a fair and living wage.
Supplier Analysis -Supplier for Sri Lanka-- Hirdaramani Industries Ltd. - Hirdaramani Industries opened the world’s first carbon-neutral garment factory called “ Mihila” in Sri Lanka. In general, this supplier’s approach to sustainability goes beyond compliance to focus on social corporate responsibility. The Mihila factory focuses on energy consumption, water consumption, and waste generation. Both at the Mihila factory and other factories within Hirdaramani Industries specialize in woven garments including dresses, jackets, pants, skirts, shorts, blouses, nightwear, and children’s wear. Some of the supplier’s clients include Tommy Hilfiger, J. Crew, Uniqlo, Victoria’s Secret, Patagonia, Club Monaco, and Calvin Klein. Básico is interested in Hirdaramani Industries as our primary supplier due to their commitment to sustainability and environmental well-being, their excellent portfolio of brands, and their specialization in woven garments.
-Supplier for Mexico-- Acafintex - Acafintex specializes in knit and woven apparel and a variety of textile finishing techniques, including dyeing. The supplier’s workers are carefully selected to ensure that the most skilled individuals are employed. Acafintex is dedicated to constant improvement in the areas of personnel training and development, lowering costs, respecting the environment, and quality standards. Básico is interested in Acafintex because of the supplier’s commitment to constant improvement in multiple areas.
-Supplier for Thailand-- Atelier Chaing Mai - Atelier Chaing Mai specializes in handmade women’s garments. The supplier specializes in the highest quality while remaining environmentally-friendly. Atelier Chiang Mai recycles any scrap pieces from the garment construction process and either reuses them or sends them to a recycling plant. The supplier’s workers are paid twice the minimum wages, since the minimum is not always liveable for everyone. Básico is interested in Atelier Chaing Mai because of their commitment to workers’ rights and environmental well-being.
Unit Breakdown
Tech Packages
Costs Sheets
Sweater
Blouse
Trouser
Bodysuit T-shirt
Country Ranking
supplier Ranking
COnclusion Overall, Båsico strives to source from environmentally friendly and ethical manufacturers. We try to find manufacturers whose values align with ours, and who will comply with our sourcing guidelines. We require workers’ rights and sustainability to be at the forefront of our sourcing strategy, and we also strive to achieve to source the best quality garments. Because we primarily source in Sri Lanka, workers are paid a fair and living wage and costs are kept low for us, ensuring decent profit margins. In addition, Sri Lanka is home to the first carbon-neutral apparel factory and plans to construct more environmentally-friendly factories in the future. At Båsico, we see great opportunity in Sri Lanka and our sourcing strategy. We are proud to share where our garments were made and who made them.
Work cited https://shenglufashion.wordpress.com/2016/02/28/sourcing-strategy-of-leading-u-s-apparel-companies-2/ http://www.hirdaramani.com/sustainability/greenm _ ihila.php Wgsn.com https://chiang-mai-clothing.com/guarantee/human-rights/