Gent_Y by Sydney Barnett

G E N T G L O B A L

M O R G A N S Y D N E Y M E A G A N M I M I FA S M

M C C A R T Y B A R N E T T H E N R Y

PAT T E N

420

G L O B A L

S O U R C I N G

P R O F E S S O R

G R A C E

A N D

I M P O R T

C A N E PA

B U Y I N G

S O U R C I N G

S T R AT E G Y

G E N T

OFFERING WORK WEAR FOR THE MODERN ADVENTURER IN THE CORPORATE JUNGLE. We aim to be at the forefront of men’s work wear by adapting to the needs of a new generation of corporate leaders and freelancers.

W E U P H O L D T H E VA L U E S O F : KNOWLEDGE PERSONAL GROWTH ADVENTURE P L AY C O M M U N I C AT I O N C R E AT I V I T Y AESTHETIC

THIS SERVES AS A GUIDELINE IN WHICH GENT_Y WILL CONDUCT

T H E I R P R E L I M I N A RY S O U R C I N G S T R AT E G Y . I T I N C L U D E S T H E C O S T S T R U C T U R E A N D S U P P L I E R A N A LY S I S F R O M T H E C H O S E N C O U N T R I E S O F O R I G I N : I N D I A , M A L AY S I A , A N D M E X I C O .

G E N T

GENT_YMEN _25-35 YEARS OLD _$125,000-$150,000 _MALE _PROFESSIONALS _ENTREPRENEURS _FREELANCERS _CITY DWELLERS

WORKS CITED 1 . D U B I K , A L E N A . M A L A Y S I A . N . P. : N . P. , N . D . W E B . 1 1 M A R . 2015. 2 . H Y M A N , H A N A . I N D I A . N . P. : N . P. , N . D . W E B . 1 1 M A R . 2 0 1 5 . 3 . " K A L T E X 速 . " K A L T E X 速 . N . P. , N . D . W E B . 1 1 M A R . 2 0 1 5 . < H T T P : / / W W W. K A LT E X . C O M . M X / > . R YA N S H I R T

MARK SHIRT

STYLE #Y001

STYLE #Y002

CASUAL SHIRT W/ POCKET

CASUAL SHIRT

RETAIL: $108.00

RETAIL: $98.00

COST: $16.49

COST: $16.32

4 . S T E V E N S O N , R O S E . N . P. , N . D . W E B . 1 1 M A R . 2 0 1 5 . 5 . " TA L G R O U P - T H E I N N O FA C T U R E R . " TA L G R O U P - T H E I N N O F A C T U R E R . N . P. , N . D . W E B . 1 1 M A R . 2 0 1 5 . < H T T P : / / W W W . T A L G R O U P. C O M / E N / I N D E X . H T M L > . 6 . " T R A D I N G E C O N O M I C S | 3 0 0 . 0 0 0 I N D I C AT O R S F R O M 1 9 6 C O U N T R I E S . " T R A D I N G E C O N O M I C S | 3 0 0 . 0 0 0 I N D I C AT O R S F R O M 1 9 6 C O U N T R I E S . N . P. , N . D . W E B . 1 0 M A R . 2 0 1 5 . < H T T P : / / W W W. T R A D I N G E C O N O M I C S . C O M / > . 7 . " W E L C O M E T O S U P E R FA S H I O N I N D I A . " W E L C O M E T O S U P E R F A S H I O N I N D I A . N . P. , N . D . W E B . 1 1 M A R . 2 0 1 5 . < H T T P : / / W W W. S U P E R FA S H I O N I N D I A . C O M / > . 8 . W O R L D F R E I G H T R A T E S . N . P. , N . D . W E B . 1 1 M A R . 2 0 1 5 . < H T T P : / / W O R L D F R E I G H T R AT E S . C O M / > .

Style # Name

JAN

FEB

MAR

Y001

Ryan

6,360

7,560

14,400 14,400 13,200

Y002

Mark

Y003 Y004 TOTAL

APR

MAY

JUN

JULY

AUG

SEP

OCT

NOV

8,760

7,440

11,160

12,000 10,800

7,560

14,840 17,640

33,600 33,600 30,800 20,440

17,360

26,040

28,000 25,200

17,640

Scott

22,260 26,460

30,660 30,660 26,460 30,660

30,660

39,060

43,260 39,060

50,400

James

9,540 11,340

13,140 13,140 11,340 13,140

11,340

16,740

18,540 18,540

21,600

53,000 63,000

91,800 91,800 81,800 73,000

66,800

93,000 101,800 93,600

97,200

Style #

Y004

Style Name

James Shirt

Description

Mens Formal Shirt

FABRICS

$ / yard*

yield

MEXICO

INDIA

MALAYSIA

Fabric

Long Staple Organic Cotton

$2.85

1.5 yards

$4.28

Interlining

Organic Cotton Interfacing

$0.55

.25 yards

$0.14

$4.42

TOTAL FABRIC COMPONENTS

$/unit

Quantity**

Buttons

White Mother of Pearl (4 hole)

0.25

$2.00

Thread

Organic Cotton Thread (White)

$2.00

Care Label

Organic Cotton

$0.07

Woben Label

Personalized Organic Cotton

$0.10

$2.17

TOTAL COMPONENT PACKAGING

$/unit

Quantity

$0.21

$0.42

Price Ticket

$0.12

Size Ticket

$0.06

Hangtags

Eco-friendly Hangtags

Poly Bags

Eco-Friendly

$0.51

Tissue

Recycled Pattern Tissue

$0.36

Boxes

Recycled Magnetic Closure Box

$1.68

Stickers

Foil Stickers

$0.10

$0.20

$3.35

TOTAL PACKAGING PACKING

$/unit

Quantity

Tape

$2.71

Labels

$0.10

Straps

$1.99

Polyfilm

$0.12

TOTAL PACKING

$4.92

LABOR: 23 minutes per shirt

$1.32

$0.11

$0.04

Patternmaking

$0.01

Grading

$0.01

Marking

$0.01

Cutting

10%

$0.13

$0.02

$0.01

Sewing

$0.01

$1.49

$0.17

$0.09

TOTAL LABOR LOGISTICS Freight Rates Trade Agreements Freight

20,000 units/container

Duty

$5,644.35

$3,395.99

$5,462.80

FTA

GSP

$0.28

$0.17

$0.27

$1.31

$1.30

Broker

$1,500.00

20,000 units/container

$0.08

Insurance

$500.00

20,000 units/container

$0.02

$0.38

$1.57

$1.67

$16.73

$16.61

$16.02

TOTAL LOGISTICS GRAND TOTAL

SCOTT SHIRT

JAMES SHIRT

STYLE #Y003

STYLE # Y004

FORMAL SHIRT W/ POCKET

FORMAL SHIRT

RETAIL: $158.00

RETAIL: $148.00

COST: $16.93

COST: $16.62

TOTAL

Retail

6,360

120,000

$108.00

$12,960,000.00

$16.49

$1,978,800.00

$10,981,200.00

84.73%

14,840

280,000

$98.00

$27,440,000.00

$16.32

$4,569,600.00

$22,870,400.00

83.35%

50,400

420000

$158.00

$66,360,000.00

$16.93

$7,110,600.00

$59,249,400.00

89.28%

21,600

180000

$148.00

$26,640,000.00

$16.62

$2,991,600.00

$23,648,400.00

88.77%

93,200

1000000

$512.00 $133,400,000.00

$66.36

$16,650,600.00 $116,749,400.00

346.13%

AVERAGE

Retail

$33,350,000.00

Cost

$16.59

Cost

$4,162,650.00

Margin

% Margin

DEC

$29,187,350.00

86.53%

C S R

Style #

Y003

Style Name

Scott Shirt

Description

Mens Formal Shirt with Pocket

FABRICS

C O M M U N I T Y

M O N I T O R I N G In all sourcing and retailing processes, GENT_Y strives to follow the ten principles as outlined by the United Nations Global Compact, based on fair Human Rights, Labor, Environment, and Anti-Corruption. GENT_Y monitoring teams are in place to analyze factory performance criteria such as employment practices affecting child labor, hours and wages, health and safety, legal requirements, freedom of association, discrimination and forced labor. We employ full-time factory assessors as well as third party independent monitors around the globe where our suppliers are located. They conduct both scheduled and unannounced audits. The timing of these visits is based off of previous compliance history. Walmart Corporation is a wonderful leader in this auditing policy (2014 Walmart Global Responsibility). We constantly review our factory-monitoring program and are involved in collaboration with other organizations that conduct monitoring, by participating in projects and conferences, and through frequentinternal reviews. We also continue to upgrade our practices and conduct frequent staff training exercises. We are members of the Fair Factories Clearinghouse, a not-for-profit that utilizes collaborative technology to facilitate continuous improvements in social, environmental and security standards - and safe, humane working conditions for workers making consumer goods globally.

yield

MEXICO

INDIA

MALAYSIA

Fabric

Long Staple Organic Cotton

$2.85

1.5 yards

$4.28

Pocketing

Long Staple Organic Cotton

$2.85

.1 yard

$0.29

Interlining

Organic Cotton Interfacing

$0.55

.25 yards

$0.14

$4.71

TOTAL FABRIC COMPONENTS

With an adventurous and pioneering spirit, we are on a never-ending quest to do better. We donate 2% of every sale to organizations that are involved in the critically important work of helping create leaders, influence environmentalism, and build economies. A company that GENT_Y heavily supports is Ashoka â&#x20AC;&#x201C; a global network of social entrepreneurs that provides start up financing, professional support services, and connections in over 70 countries across business and social sectors, and provides a platform for people dedicated to changing the world (Ashoka.org). GENT_Y also partners with Career Gear to provide professional clothing, mentoring and life-skills for men in poverty, to help them become stronger contributors to their families and communities (careergear.org). Because doing good, means doing better.

$ / yard*

$/unit

Quantity**

Buttons

White Mother of Pearl (4 hole)

0.25

$2.00

Thread

Organic Cotton Thread (White)

$2.00

Care Label

Organic Cotton

$0.07

Woben Label

Personalized Organic Cotton

$0.10

$2.17

TOTAL COMPONENT PACKAGING

$/unit

Quantity

$0.21

$0.42

Price Ticket

$0.12

Size Ticket

$0.06

Hangtags

Eco-friendly Hangtags

Poly Bags

Eco-Friendly

$0.51

Tissue

Recycled Pattern Tissue

$0.36

Boxes

Recycled Magnetic Closure Box

$1.68

Stickers

Foil Stickers

$0.10

$0.20

$3.35

TOTAL PACKAGING PACKING

$/unit

Quantity

Tape

$2.71

Labels

$0.10

Straps

$1.99

Polyfilm

$0.12

TOTAL PACKING

$4.92

LABOR: 23 minutes per shirt

$1.32

$0.11

$0.04

Patternmaking

$0.01

Grading

$0.01

Marking

$0.01

Cutting

10%

$0.13

$0.02

$0.01

Sewing

$0.01

$1.49

$0.17

$0.09

$5,644.35

$3,395.99

$5,462.80

FTA

GSP

$0.28

$0.17

$0.27

$1.33

$1.32

TOTAL LABOR LOGISTICS Freight Rates Trade Agreements Freight

20,000 units/container

Duty Broker

$1,500.00

20,000 units/container

$0.08

Insurance

$500.00

20,000 units/container

$0.02

$0.38

$1.57

$1.67

$17.02

$16.92

$16.93

TOTAL LOGISTICS GRAND TOTAL

Style #

Y002

Style Name

Mark Shirt

Description

Mens Casual Shirt

FABRICS

$ / yard*

yield

MEXICO

INDIA

MALAYSIA

Fabric

Long Staple Organic Cotton

$2.65

1.5 yards

$3.98

Interlining

Organic Cotton Interfacing

$0.55

.25 yards

0.14

$4.12

TOTAL FABRIC COMPONENTS

$/unit

Quantity**

Buttons

White Mother of Pearl (4 hole)

0.25

$2.00

Thread

Organic Cotton Thread (White)

$2.00

Care Label

Organic Cotton

$0.07

Woben Label

Personalized Organic Cotton

$0.10

$2.17

TOTAL COMPONENT PACKAGING

$/unit

Quantity

$0.21

$0.42

Price Ticket

$0.12

Size Ticket

$0.06

Hangtags

Eco-friendly Hangtags

Poly Bags

Eco-Friendly

$0.51

Tissue

Recycled Pattern Tissue

$0.36

Boxes

Recycled Magnetic Closure Box

$1.68

Stickers

Foil Stickers

$0.10

$0.20

$3.35

TOTAL PACKAGING PACKING

$/unit

Quantity

Tape

$2.71

Labels

$0.10

Straps

$1.99

Polyfilm

$0.12

TOTAL PACKING

$4.92

LABOR: 23 minutes per shirt

$1.32

$0.11

$0.04

Patternmaking

$0.01

Grading

$0.01

Marking

$0.01

Cutting

10%

$0.13

$0.02

$0.01

Sewing

$0.01

$1.49

$0.17

$0.09

$5,644.35 $3,395.99

$5,462.80

TOTAL LABOR LOGISTICS Freight Rates Trade Agreements Freight

20,000 units/container

Duty

FTA

GSP

$0.28

$0.17

$0.27

$1.28

$1.30

Broker

$1,500.00

20,000 units/container

$0.08

Insurance

$500.00

20,000 units/container

$0.02

$0.38

$1.57

$1.67

$16.43

$16.30

$16.32

TOTAL LOGISTICS GRAND TOTAL

S U S TA I N A B I L I T Y We approach sustainability with a series of decisions, looking at the impact of our fabrics through several lenses including air quality, water usage, and toxicity. We strive to develop innovative and sustainable fabrics to offer both performance and luxury. GENT_Y is a member of the Better Cotton Initiative – an organization that takes a holistic approach to sustainable cotton. They focus on three pillars of sustainability, which are Environmental, Social and Economic. They do this by producing farms that use water efficiently, care about health and soil, conserve natural habitats and preserve quality fibers. GENT_Y uses only 100% organic long-staple cotton fiber. This fiber more recyclable and minimizes our impact on the environment (BetterCottonInitiative.org).

C U LT U R E At GENT_Y, we value personal growth within workplace, and outside company walls. We consider volunteer work to be a part of the job, and will provide our employees with 40 hours of paid volunteer-time each year. Within the workplace, we cultivate a culture in which employees are able to express their opinions and concerns, regardless of rank, to facilitate office synergy. We host company events, as they are an integral part of the work experience. It provides an opportunity or employees to learn, speak, get inspired and get reinvigorated for the challenging road ahead.

T R A N S PA R E N C Y Transparency is an important value at GENT_Y, and we strive to inform our customers on all impacts of the garment lifecycle. All garments will have an “ECOGRADE”, which provides an overall grade of the garment, and a link to out website that gives them further information about the factory where it was made, and the human who made it. We release the names and locations of all our owned and operated factories and manufacturers.

C O U N T R Y

A N A LY S I S

During the Trading Show at FASM, GENT_Y was introduced to the possibility of souring our men’s shirts from 21 countries around the globe. After a two-day process of meeting with country representatives, and asking in-depth questions about each country’s garment manufacturing industry, we began to put together a sourcing strategy. In this strategy, we specifically evaluated each country and their best suppliers. Our data, and intuition, led us to India, Mexico and Malaysia as top sourcing partners. When analyzing potential suppliers in India, Mexico and Malaysia, we used a proper ranking system that analyzed each individual supplier’s abilities, capacity, costs, customer service, customers, flexibility, lead-time, management, quality, services offered, strategic outlook, and sourcing guidelines. When analyzing which countries would be best for GENT_Y to go into, we looked at: business climate, costs (for labor and shipping costs), government stability, location (for transit times and days), risks, social stability, sourcing guidelines, the state of the textile industry (capacity, organic cotton and organic production), trade agreements, trained work-force, socio-eco-political climates, and any social reform opportunities that the country may provide us with for education and unemployment rates.

I N D I A

Labor Costs : $0.28 / hour Shipping Costs (with insurance) : $4,428 - 4,894 Trade Agreements: none Transit Days: 37 export days from Port Chennai

India is noted for their excellence in the textile and apparel industry. India is the second largest textile manufacturer, as well as the second largest producer of cotton with an abundance of raw materials, including organic cotton. It holds a comparative advantage in terms of skilled manpower and cost of production over major textile producers. The textile and apparel industry makes up 21% of the manufacturing sector’s employees. We are most confident in India’s ability to produce products that adhere to the highest standards in quality. As GENT_Y is currently a growing business, capacity levels are not a key concern for us, however given the size of the textile and apparel manufacturing industry, India’s suppliers will surely be able to support our future growth. India’s business climate was ranked 93 out of 146 in best countries to do business with and has a GDP growth rate of 3.2%. The inflation however has been increasing over the years with its rate is currently at 9.6%. The government strongly supports the textile and manufacturing industry through trade associations, agencies, and export promotion councils. Transportation in India offers quick turnaround times and reliable ports such as Chennai, Jawaharlal Nehru, and Calcutta. Chennai being India’s largest, most important port would be the obvious choice with an average transit time being 37 days to Savannah. However, India does have it’s risks, with prevalence of child labor ,which Gent_Y sees as a opportunity to assist. India has further social reform opportunity concerning education, labor, and wages. Their literacy rate is extremely low at 12%, with the average school life expectancy being 12 years. There is a significant drop in value of currency, high level drug production concerns, corruption, bribery, and instances of discrimination. However, India has begun to strengthen laws protecting women and children which is a positive in their country social stability. A huge downside to India is having no trade agreements in place with the U.S., however there is one in the works for the future.

Style #

Y001

Style Name

Ryan Shirt

Description

Mens Casual Shirt with Pocket

FABRICS

$ / yard*

yield

MEXICO

INDIA

MALAYSIA

Fabric

Long Staple Organic Cotton

$2.65

1.5 yards

$3.98

Pocketing

Long Staple Organic Cotton

$2.65

.1 yard

$0.26

Interlining

Organic Cotton Interfacing

$0.55

.25 yards

$0.14

$4.38

TOTAL FABRIC COMPONENTS

$/unit

Quantity**

Buttons

White Mother of Pearl (4 hole)

0.25

$2.00

Thread

Organic Cotton Thread (White)

$2.00

Care Label

Organic Cotton

$0.07

Woben Label

Personalized Organic Cotton

$0.10

$2.17

TOTAL COMPONENT PACKAGING

$/unit

Quantity

$0.21

$0.42

$0.44

Price Ticket

$0.12

$0.15

Size Ticket

$0.06

$0.10

Hangtags

Eco-friendly Hangtags

Poly Bags

Eco-Friendly

$0.51

$0.63

Tissue

Recycled Pattern Tissue

$0.36

$0.40

Boxes

Recycled Magnetic Closure Box

$1.68

$2.00

Stickers

Foil Stickers

$0.10

$0.20

$3.35

TOTAL PACKAGING PACKING

$/unit

Quantity

Tape

$2.71

Labels

$0.10

Straps

$1.99

Polyfilm

$0.12

TOTAL PACKING

$4.92

LABOR: 23 minutes per shirt

$1.32

$0.11

$0.04

Patternmaking

$0.01

Grading

$0.01

Marking

$0.01

Cutting

10%

$0.13

$0.02

$0.01

Sewing

$0.01

$1.49

$0.17

$0.09

$5,644.35

$3,395.99

$5,462.80

FTA

GSP

$0.28

$0.17

$0.27

$1.28

$1.30

TOTAL LABOR LOGISTICS Freight Rates Trade Agreements Freight

20,000 units/container

Duty Broker

$1,500.00

20,000 units/container

$0.08

Insurance

$500.00

20,000 units/container

$0.02

$0.38

$1.57

$1.67

$16.69

$16.56

$16.49

TOTAL LOGISTICS GRAND TOTAL

M A L AY S I A

C O S T I N G

Labor Costs : 1.24 / hour Shipping Costs (with insurance) : $5,572 - $6,159 Trade Agreements: none Transit Days: 30-34 days from Pork Klang

Malaysia was ranked 37 out of 146 for best countries to do business with. Malaysia’s GDP has a growth rate of 4.7%. The port Klang and Port Tanjung are the two main ports that ship to Savannah, costing around $5,500- $5,800. Malaysia’s government supports the growing manufacturing and textile industry. Transportation would take around 30 days by boat using the shipping company Maersk Line from Klang to Savannah, port to port. Malaysia's risks and weaknesses are mainly natural disasters such as deforestations and floods. Malaysia also suffers from low wage rates as well as a small textile and apparel industry compared to their competitors. Malaysia’s social stability is very strong with multiple ethnic groups and gaps within income levels. The large income gap is one of their main weaknesses within stability as a country, but their economy is growing. The apparel and textile industry is the 6th largest export and growing every year. Although, Malaysia does not have a trade agreement put in place with the U.S., TPP is pending and would be a huge advantage with the U.S. in the future. With the textile and apparel industry growing at such a fast rate, Malaysians pride themselves on their work ethic and creating harmony between business partners. The economy is heavily reliant on external demand, as well as gas and oil sectors. Their rising labor costs are also a concern. Malaysia’s literacy rate is very high, rating at 93.1%, however their weakness and social reform opportunities lie within women and children subjected to conditions of forced labor and sex trafficking. Overall Malaysia’s low wage and shipping costs, and stable government are few of the main reasons we chose Malaysia to be one of the countries GENT_Y sources from. Although the apparel and textile industry is not as big as a country like India’s, it’s fast growth rate and support from the government out ways the negatives and we can foresee it growing with our company.

M E X I C O

Labor Costs : $3.50 / hour Shipping Costs (with insurance) : $522 - $2,359 Trade Agreements: NAFTA Transit Days: 11 hours export days by truck

Mexico’s was ranked 61 out of 146 for best countries to do business with. Mexico’s GDP growth rate is 1.2% with a currency rate equaling 12.76 pesos to 1USD. Transit times depending on route range from 11 hours to 3 hours by truck. Mexico’s location is one of the biggest strengths is its location, bordering the USA. Mexico is the United States second-largest export market and thirdlargest source of imports. Socially, Mexico’s concerns focus around violent crime. However, The government in Mexico has shown progress providing aid toward relationships with the U.S. Drug war violence has been decreasing, and government intervention sectors have given the industry 14% growth. The textile and apparel industry is well developed and 5th world exporter after Asian nations. Mexico is known for their cheap labor for good quality products, especially compared to the quality in China. They are under the trade agreement NAFTA which is between the U.S., Canada, and Mexico which grants free trade. In Mexico there are plenty of educated workers, with the government making efforts to create more English classes and world education programs. Although Mexico is more stable then it has been in the past, there is still a great need in education and trained workforce programs.

S U P E R FA S H I O N

9 8 8 5 8 5 6 7 8 8 9 8

ABILITIES CAPACITY COSTS CUSTOMER SERVICE CUSTOMERS FLEXIBILITY LEAD TIME MANAGEMENT QUALITY SERVICES OFFERED STRATEGIC OUTLOOK SOURCING GUIDELINES

PEN APPAREL

7 9 5 5 6 4 5 6 8 6 7 7

ABILITIES CAPACITY COSTS CUSTOMER SERVICE CUSTOMERS FLEXIBILITY LEAD TIME MANAGEMENT QUALITY SERVICES OFFERED STRATEGIC OUTLOOK SOURCING GUIDELINES

K A LT E X

3 6 3 5 4 6 7 5 9 4 5 5

ABILITIES CAPACITY COSTS CUSTOMER SERVICE CUSTOMERS FLEXIBILITY LEAD TIME MANAGEMENT QUALITY SERVICES OFFERED STRATEGIC OUTLOOK SOURCING GUIDELINES

C O N C L U S I O N Throughout the process of selecting countries to manufacture from, GENT_Y has kept our values of knowledge, personal growth, adventure, play, communication, and aesthetic in mind. After the Trade Show at FASM, GENT_Y met with 21 countries and ultimately narrowed our selection down to three countries to source from: Mexico, India, and Malaysia. We believe that these countries are the most promising to source from for our selection of mens casual, formal, and denim shirts. For GENT_Y’s sourcing strategy, we have decided to split up our units throughout these three countries to create a plan that is fool-proof and has longevity. We also looked at the countries strong suits and decided on what shirt would make sense to manufacture in what country. Mexico, India, and Malaysia all have different strengths, and we have taken that into consideration when allocating our products among them. The countries we have chosen are interchangeable if problems arise. All manufacturers have the capability to double up on our orders if need be. It is evident in our sourcing strategy that our margins are sufficient for our company’s goals and aspirations. This was achieved by making sure that the countries we chose had similar costings, therefore our profits were maximized. All three countries have similar lead times which are considered to be quick, however the shipping times could potentially be affected as we are sourcing from two Southeast Asian countries. The companies that we are sourcing from do much more than just mens shirting. As GENT_Y plans to add more product categories of different fabrics and qualities in the future, these companies will be able to offer us the services that we want. We do not want to pass on this opportunity to work with them right away. This offers GENT_Y much room to grow and an added advantage for the future. The opportunities outweigh the risks of sourcing from these countries. GENT_Y has very strict sourcing practices that we wish to abide by. Because of this, we have chosen certain manufacturers that are known to be reliable and less corrupt. GENT_Y has looked into their values to make sure that they align with ours. As a company, we seek to improve the factories and communities that we work with.

SO LI D

10.5

FO RM AL

CASU AL PRI NT

D (P) SOLI AL

CA SU

I D (P )

( P) LI D

10.5 CASU

MALAYSIA

SO L

4.5%

FORMAL SOLID

21%

CASUAL DENIM

(P)

7% )

T IN PR

INDIA

When evaluating the criteria for the products of GENT_Y , suppliers needed to be vertical and have the capability of fulfilling the capacity requirements of 1,000,000 units annually, between three countries. Since GENT_Y is a premium retailer selling basic items, the total number of units produced per year is 1,000,000. Four styles of mens shirting will be manufactured: two casual styles, and two formal styles, one with and one without a pocket. The solid formal dress shirt without a pocket will be produced at a continuous flow. This classic style is predicted to be our most popular style, thus holds the highest number of units manufactured at 420,000 units, split evenly between manufacturers in India and

O AL S

LI D

Casual Prints | Formal Solids | 45,000 units | 45% of our margin The country of India is where we will hold a large portion of our investments in terms of manufacturing. Due to the country’s expertise in fabric dyeing and printing, its manufacturers will produce all of our printed formal and casual shirts. Super Fashion is one of India’s foremost and reliable manufacturers of ready-made garments. They specialize in high quality knitwear for men, women, and kids. Their reputable clients consist of Guess, Izod, Urban Outfitters, Jones New York, and DKNY. Their clients are indicative of their high quality standards, along with their mission statement to “create and deliver exceptional quality at the right time and at the right price.” Super Fashion employees more than 1200 highly skilled employees across three units and are able to produce up to 2,000,000 pieces per month, fully capable of supporting GENT_Y’s future growth and capacity levels. As education and professional fulfillment are a key value of our company, we support Super Fashion’s commitment to conducting training programs for all their workers to help improve their abilities.

Casual Solids | Formal Solids | 45,000 units | 45% of our margin Pen Apparel Sdn. Bhd. is a well established apparel and textiles manufacturer in Malaysia that has built its reputation on maintaining leading production with innovative apparel manufacturing techniques. They focus their products around mens and boys work apparel; with their products ranging from shirting, pants, and outerwear, giving Gent_Y an opportunity for future line extension. Pen Apparel uses one main factory, that works with 23 U.S. customers, and a few of their customers include Brooks Brothers and Eddie Bauer which align with our aesthetic as a company. Lead time takes around 30 days, and Penn Apparel specializes in producing quality apparel for the export market. They keep up to date with equipment and inspection within managing their company which was an important aspect to our values when deciphering through suppliers. We will be producing mainly our classic shirting, both casual and formal with Pen Apparel Sdn. Bhd.

MEXICO

Malaysia. The solid formal shirt with front pocket will be manufactured at 180,000 units split evenly between India and Malaysia. We will manufacture 210,000 units of casual shirts, half of these will contain prints and are to be manufactured in India, while the remainder will be solids manufactured in Malaysia. 90,000 casual shirts with pockets will be manufactured in the same fashion with 45,000 of units containing prints will be manufactured in India, and the solids in Malaysia. Our casual denim shirt with and without pockets will be our lowest number of units, at 100,000 units as it is a more fashion than basic item, however we will manufacture these in Mexico as it is renowned for its quality denim manufacturing.

Casual denim shirts | 100,000 units | 10% of our margin At GENT_Y, we have decided to source 100,000 (or 10% of our margin) of our casual denim shirts from Kaltex, a garment supplier out of Mexico. They manufacture a wide range of mens and womens apparel. We have chosen Kaltex over other Mexican manufacturers Siete Legunas and Monty, because the wide range of capabilities that Kaltex manages is ideal for GENT_Y’s future goals, as well as current aspirations. One of Kaltex’s major customers is Levi Strauss & Co - a company that GENT_Y greatly admires. Kaltex will be manufacturing GENT_Y denim shirts. They excel in tailoring, pattern making, cutting, garment dying with hot and cold, direct reactives, pigments and sulfides, as well as labeling, ironing, and full packing. Kaltex employs 800+ employees and they have a capacity of 105 million lbs. per shipment. Kaltex appeals to GENT_Y not only for what they are able to do, but also for how the currently operate. Kaltex is a vertically integrated company, with a strong presence in a wide variety of markets and industries. Kaltex has a new developments department which is in charge of offering prompt answers to their customers, distributors and wholesalers with specific needs. We know that Kaltex would be easy to communicate with on a timely basis. In the future, when GENT_Y begins to develop new product categories of different fabrics, dyes, and cuts, we know that Kaltex will remain a great manufacturing source for us.

INDIA: SUPER FASHION CASUAL PRINT

TOTAL

W/ POCKET

CASUAL PRINT

FORMAL SOLID

MALAYSIA: PEN APPAREL FORMAL SOLID

W/ POCKET

CASUAL SOLID

W/ POCKET

FORMAL SOLID W/ POCKET

MEXICO: KALTEX FORMAL SOLID

CASUAL DENIM

W/ POCKET

TOTAL UNITS

1,000,000

45,000

105,000

90,000

210,000

45,000

105,000

90,000

210,000

30,000

70,000

100%

4.5%

10.5%

9.0%

21.0%

4.5%

10.5%

9.0%

21.0%

3.0%

7.0%

RETAIL

$138.00

$128.00

$158.00

$148.00

$108.00

$98.00

$158.00

$148.00

$128.00

$118.00

/ UNIT

$16.56

$16.30

$16.92

$16.61

$16.49

$16.32

$16.93

$16.62

$16.69

$16.43

MARGIN

88.0%

87.3%

89.3%

88.8%

84.7%

83.3%

89.5%

88.8%

87.0%

86.1%

$121.44

$111.70

$141.08

$131.39

$91.51

$81.68

$141.07

$131.38

$111.31

$101.57

COST

TOTAL RETAIL

$137,500,000

$6,210,000.00

$13,440,000.00

$14,220,000.00

$31,080,000.00

$4,860,000.00

$10,290,000.00

$14,220,000.00

$31,080,000.00

$3,840,000.00

$8,260,000.00

TOTAL COST

$16,587,950.00

$745,200.00

$1,711,500.00

$1,522,800.00

$3,488,100.00

$742,050.00

$1,713,600.00

$1,523,700.00

$3,490,200.00

$500,700.00

$1,150,100.00

TOTAL MARGIN

$120,912,050.00

$5,464,800.00

$11,728,500.00

$12,697,200.00

$27,591,900.00

$4,117,950,00

$8,576,400.00

$12,696,300.00

$27,589,800.00

$3,399,300.00

$7,109,900.00

AVG RETAIL AVG COST

$133.00

/ UNIT $16.59

AVG MARGINS AVG MARGIN

$116.41

% 87.3%

F I N A L

P L A C E M E N T

S T R AT E G Y