Minine Women Footwear by Vora

VORAKAMOL TANTARATCHAROEN 03399053

A c a d e my o f A rt U n iv e rs ity G ra d u a te Sc h o o l o f Fa s h io n M e rc h a n d is in g Fi n a l T h e s i s Pro j e c t D e c e m b e r 11 , 2 0 1 5

Table of Contents

E X E C U T I V E S U M M A RY

. Executive Summary

B U S I N E S S S U M M A RY

. . . .

Brand Story Mission Statement Vision Statement Objectives & Goals

8 11 11 12

I N D U S T RY R E S E A R C H

. Identify the Industry 14 . Global Footwear Overview 16 . Asia-Pacific Footwear Overview 24 . Thailand Overview 32 . Thailand Economy & Footwear Industry Overview 34 . Footwear Industry Sensitive in Thailand 36 . Trends in Footwear Industry 37 . Future Outlook 37 . Competitive Analysis 38 . SWOT Analysis 50 . Market Survey Summary 56 . Competitive Advantages 58

TA R G E T M A R K E T A N A LY S I S . . . .

Market Segmentation Customer Profile Distribution Channels Potential Retailers

60 62 68 74

P R O D U C T P L A N

. . . . . . . . . . .

Product Overview Spring Summer 2016 Fall Winter 2016 The Prototypes The Looks Tech Pack Labels & Packaging Product Sourcing Manufacturer Profile Production Calendar Time & Action Calendar

92 94 104 112 117 122 140 144 145 146 147

M A R K E T I N G P L A N

. . . . .

Objectives & Goals Branding Pricing Strategy Marketing Channels Marketing Budget

148 150 151 153 166

L O CATI O N & O RG A NI ZATI O N

. . . .

Headquarter Company Ownership Organization Chart Roles & Responsibilities

170 180 180 181

O P E R AT I O N P L A N

. Collection Information 186 . Third Party Information 189

F I N A N C I A L P L A N

. Financial Summary . Future Goals

192 196

A P P E N D I X

. Resume . Financial Sheets . Survey Questions & Results .Work Citation

199 200 209 226

Minine is a wholesale footwear brand that offers stylish shoes to women; designed for everyday use. Its core concept is to combine feminine looks with a touch of masculinity and a dab of practical function. Minine aims to fill the unmet need of the market where women can present their lady-like personalities that highlight their lifestyles through their shoes. This need has become the core value in every detail of their designs.

E X E C U T IV E S U MMA RY

Minine is based and marketed in Thailand, a country that is hot and humid all year round (one of the reasons why Thai customers choose to shop in department stores, which are developed to offer convenience in a multitude of activities). To start, Minine is approaching the market by attending trade shows. These events provides ample opportunities to showcase their shoes to prospective buyers, from both large and small retailers attending these shows. Once they are interested in the potential of Minine, retailers will subsequently purchase Minine products to sell at their retail stores. Minine’s targeted end consumers are represented by an urban woman who is raw, sleek, sharp, and balanced. She is an image of sophistication; An urban women who encompasses romance and allure. These customers are confident and care for their personal appearance. They are meticulous with picking shoes to fit their styles and personalities perfectly. Minine footwear offers two collections a year – Fall/Winter and Spring/Summer. Each collection comes with four main categories: Wedge, Sandal, Flat, and Pump. Minine’s key categories are Wedge and Sandals due to Minine’s plans to approach the Thai market by bringing to Thai women the casual and flexible shoes; research shows, very few are currently offered. This different value proposition will set Minine apart from competitors. The collections bring fresh elegance and modern strength, blended with sophisticated texture and colors, to women with a strong sense of style. To make the price competitive, the production is outsourced to China. Customers, however, can ensure that Minine shoes meet high standards and exceed their expectations.

2 . 1

B R A N D

S TO RY

Minine originally sprang from the simple, yet unfulfilled need of the founder. Here is her story:

B U S IN E S S S U MMA RY

Born and raised in Bangkok, the founder considered herself a Thai urban resident. As a typical Bangkokian, she normally commutes by air-conditioned car due to the warm and humid weather. As a result, she rarely wore sneakers or comfort shoes and never embraced them to be an important part of her life. Instead, high heels and ballerinas were shoes that she wore daily, because she goes for the sophisticated/classy look; as sneakers offer a sporty appearance, the founder is often found gravitating away from comfortable/casual sneakers. Continuing on her higher education in San Francisco for three years, she has eventually adopted the importance of sneakers and comfort shoes. The practicality of this type of shoe was introduced to her from several of her peers. Nevertheless, for her to confidently wear sneakers without losing the self-esteem that she adopted from her life in Thailand, she eventually developed an idea to match the feministic style of high heels with practical functions of a sneaker into one shoe. As the casual lifestyle is on the verge of mass popularity, she is confident that this idea will catch on. An increasing number of people in Bangkok are using such public transportations as elevated trains and subways instead of driving. Several companies are starting to allow employees to dress casually for work. It is an exciting time for working women in Bangkok to go out to their nearby department store to find the right shoe that continue to represent their styles, all the while answering the changing ways of urban living.

2 . 2

M I S S I O N

S TAT E M E N T

Minine Footwear is committed to making artful distinguished shoes delicately tailored to a woman's aesthetic. “Functionality and Comfort for Women’s Everyday Lifestyle.”

2 . 3

V I S I O N

S TAT E M E N T

Spontaneous and instinctive lifestyle is what we see in modern-women’s way of life. Minine is energetically striving to support her with shoes that can take her to work and carry her home.

Business Summary

2 . 4

O B J E C T I V E S

G O A L S

Establishment. Minine aims for establishment both its brand and business. In terms of the brand, Minine will introduce its stylish shoes for daily usage at an affordable price concept to the fashion arena in order to capture the market. In terms of the business side of things, Minine plans to create a strong business platform supported by tight-knit relationships among its suppliers, employees, and customers base; because Minine believes in â&#x20AC;&#x153;what goes around comes aroundâ&#x20AC;?. Building. An initial goal of Minine during its beginning stage is to strengthen its brand awareness particularly to Thai customers. In order to achieve this, attending trade shows and utilizing both online and offline marketing tools are key methods that Minine expects to utilize. Survival. Inevitably, Like any startup, Minineâ&#x20AC;&#x2122;s ultimate goal is to be able to compete consistently in an immensely competitive market. In order to succeed, Minine must be able to completely return its first-year loan payment on time and have a decent cash flow to operate its daily business activities.

Business Summary

3 . 1

I D E N T I F Y I N D U STRY

T H E

Identifying the industry allows Minine to gather relevant information, analyze competitive outlook, and narrow down its positioning more efficiently. Minine uses Standard Industrial Classification (SIC) codes to collect data and identify this industry.

IN D U S T RY R E S E A R C H

SIC 5139: Footwear Wholesalers This code consists of areas engaged in the wholesale distribution of athletic shoes and footwear made of leather, rubber, and other materials. It will help Minine analyze the right information, competitors, and regulations in the footwear industry more precisely. This report describes the analysis of footwear industry overview from the global, Asia-Pacific, and specifically Thai market perspectives. Moreover, this report describes the current situation, growth factors, footwear industry trends, and future outlook. These elements lead Minine to better understand the footwear industry, as well as give Minine an opportunity to become one of the established brands in this area.

M A R K E T S E G M E N TAT I O N

The largest segment of the footwear industry by geography is Europe, which accounts for 31% of the global footwear market value. Asia-Pacific, the second largest segment, accounts for 30.8% of the global market. (1)

Table 2: Global footwear market geography segmentation: $ billion, 2014

3 . 2

G L O B A L F O O T W E A R O V E RV I E W

Figure 2: Global footwear market geography segmentation: % share, by value, 2014

According to the MarketLine research, the global footwear industry has been healthy; growing steadily from 2010 to 2014 and is expected to maintain momentum. Moreover, when comparing between apparel and footwear, consumers are likely to buy new footwear more often even during a recession. Table 1 shows that the global footwear market had total revenues of $289.7 billion in 2014 â&#x20AC;&#x201C; a growth of 3.9%. This represents the marketâ&#x20AC;&#x2122;s Compound Annual Growth Rate (CAGR) of 4.8%. (1) Table 1: Global footwear Value: $million, 2010-2014 Figure 1: Global footwear market value: $ billion, 2010-2014

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L EADING COMPAN IES

Among all players in the global footwear market, Adidas AG, Bata Shoe Organization, and Nike Inc. are good examples of leading companies. They have a large presence in and strong influence over the footwear industry around the world.

ADI DAS

Adidas is one of the biggest companies in the sporting goods industry. It offers a wide range of athletic and sports lifestyle products through several well-known brands: Adidas, Reebok, TaylorMade, Rockport, and Reebok-CCM Hockey. Adidas operates in three business segments: wholesale, retail, and other business. Choosing Adidas as a case study of a growing global industry leader is a good fit for Minine, as similar product lines between two companies can be used as Minineâ&#x20AC;&#x2122;s benchmarks. Adidasâ&#x20AC;&#x2122;s other businesses segment consists of Rockport designs, Y-3 and Porsche Design Sport, as well as StellaSport. According to the MarketLine research, the company recorded its revenue of $19.289 billion in the fiscal year ending December 2014, an increase of 0.3% compared to 2013. Its net income was $754 million in fiscal year 2014, compared to $1.113 billion in the preceding year. (1) Adidas AG: Key Facts

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Table 3: Adidas AG: key financials

BATA SHO E OR G ANI Z AT I O N

Founded in The Czech Republic, Bata Shoe Organization is a shoe manufacturer and retailer of 18 brands: Bata, Ambassador, Technology, Comfit, Industrials, Bubblegummers, Marie Claire, North Star, Patapata, Power, Safari, Sun Drops, Toughees, Weinbrenner, Tomy-Takkies, Accessories, and Shoe Care. Bata operates in three business segments. Since 2005, the company has pioneered a novel business model aiming at gaining a foothold in some of the worldâ&#x20AC;&#x2122;s poorest markets. The company brings low-priced footwear to locations unreached by its competitors. (1)

Nevertheless, Bata Shoe Organization does not unveil its financial performance.

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NIKE

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INC .

Nike, Inc. has a wide range of product categories from footwear, apparel, equipment, to accessory products. Regarding footwear, the company manufactures and sells footwear for athletic uses, such as running, basketball, and soccer. The product line consists of shoes designed specifically for tennis, golf, baseball, football, and other athletic and recreational activities. The company also manufactures and sells sports-inspired casual and leisure shoes. These shoe categories highlight the linkage between Nikeâ&#x20AC;&#x2122;s products lines and Minineâ&#x20AC;&#x2122;s, which presents us an opportunity to flourish in the footwear market.

From the Nike information, key financial figures show that Nike tends to have stable growth by its recorded revenues of $27,799 million in the fiscal year ending May 2014, an increase of 9.8%. Its net income was $2,693 million in fiscal 2014, compared to $2,485 million in the preceding year. (1) Table 4: Nike, Inc.: Key Financials ($) Table 5: Nike, Inc.: Key Financial ratios

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3 . 3

A S I A - PA C I F I C F O O T W E A R O V E RV I E W

Asia-Pacific footwear overview is also an important market to analyze before we dive deeper into Thailand’s footwear industry in the next section. “In Asia-Pacific countries, appetite for mass consumption of footwear, globalization of the industry, and rising number of sports enthusiasts in the region are contributing to healthy market growth. Additionally, improving consumer income levels, employment levels, and resurgence in discretionary spending are stronger than those in developed economies. The Asia-Pacific footwear market has had a total revenue of $89.27b in 2014, representing a compound annual growth rate (CAGR) of 7.9% between 2010 and 2014. In comparison, the Chinese and Japanese markets growth at CAGRs of 10.7% and 1.3% respectively, over the same period, to reach respective values of $56.16 billion and $13.09 billion in 2014. Region-wise, emerging economies of Asia Pacific and Middle East are growing at faster rates than developed markets of North America and Europe, suffered by the deepest financial crisis, aging population and falling birth rates.”(2)

MA R K E T

ASI A PACI F I C S EG M ENTAT I O N

As Minine is a wholesale brand based in Asia-Pacific (Thailand), another factor that Minine should consider is selling and distributing the products through retailers and department stores. These parties receive the largest profit sharing in general, which are 65.4% and 21.7% respectively in 2014 as shown in Table 7. Table 7: Asia-Pacific footwear market distribution: %share, by value, 2014 Figure 4: Asia-Pacific footwear market distribution: % share, by value, 2014

As mentioned earlier, the global leading companies are Adidas AG, Bata Shoe Organization and Nike Inc., However, in the Asia-Pacific markets, ABC –MART Inc., Fast Retailing And Yue Yuen Industry (Holding) Limited have been the leading companies in this region.

From the figure, the growth of Asia-Pacific footwear industry is expected to continue on the rise; which would be a bright time for Minine to launch its business and prosper. Table 6: Asia-Pacific footwear value: $ million, 2010-2014 Figure 3: Asia-Pacific footwear market value: $ billion, 2010-2014

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A B C - M A R T, INC

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ABC-MART operates in 3 countries, Korea, Taiwan and Japan. It has businesses in the retail of shoes, clothing, general merchandise products and product development, as well as shoe manufacturing and various brands licensing. The company offers a wide range of shoe types such as women, business, athletic, children, sneakers, boots, walking, etc.

Regarding the ABC-MARTâ&#x20AC;&#x2122;s revenue, the company recorded $1.77b in the fiscal year ending February 2014, an increase of 18% compared to that in 2013. (2) Table 8: ABC-MART, Inc.: Key Financials ($) Table 9: ABC-MART, Inc.: Key Financial Ratios Figure 5: ABC-MART, Inc.: Revenues & Profitability

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Fast Retailing Co., Ltd. is one of the fastest growth companies in Asia-Pacific. The biggest operation of its account is chain stores specializing in casual wear and footwear. The company was founded by Hitoshi Yanai in March 1949 with the headquarters in Tokyo, Japan. The most well-known segment of the company is Uniqlo. However, from the footwear perspective, according to the MarketLine, Fast Retailing started to expand its shoe business by establishing Onezone Corp., the operator of Foot Park footwear chain. The group subsequently acquired View company Co., Ltd (operator of the View footwear chain focusing on women’s shoes) to form Gov Retailing (specialty stores of private label apparels). In April 2010, Gov Retailing’s business was merged with Uniqlo’s shoe business. Its specialty shoe stores are currently under the Candish brand. (2)

FAST RE TA ILIN G CO.,LTD

Table 10: Fast Retailing Co., Ltd.: Key Financials ($) Table 11: Fast Retailing Co., Ltd.: Key Financial Ratios Figure 6: Fast Retailing Co., Ltd.: Revenues & Profitability

Fast Retailing Co., Ltd recorded revenues of $13.6 billion in the fiscal year ending August 2014, an increase of 21.0% compared to that in 2013. Its net income was $704 million in 2014

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YU E Y UE N INDR US T R I A L (HOL DI N G ) LT D

Yue Yuenâ&#x20AC;&#x2122;s business group is organized into two divisions: manufacturing and retailing. These divisions form four business lines Footwear and shoes components manufacturing China wholesale and retail sales Apparel and sports accessories manufacturing Logistics

Table 12: Yue Yuen Industrial (Holding) Limited: Key financials ($) Table 13: Yue Yuen Industrial (Holding) Limited: Key financial ratios Figure 7: Yue Yuen Industrial (Holding) Limited: Revenues & Profitability

Focusing on footwear division, Yue Yuen manufactures casual and athletic footwear for international brands. Some of the examples are Nike, Adidas, Reebok, New Balance, Asics, Timberland, Puma, and Rockport. Yue Yuen also involves in upstream footwear material production, ranging from raw materials, shoe components, to production tools with an original design manufacturer (ODM) and an original equipment manufacturer (OEM). Yue Yuen distributes its footwear products through more than 640 retails shops/counters in major cities across China.

The company recorded revenues of $8.01 billion in the fiscal year ending December 2014, an increase of 5.7% compared to that in 2013. (2)

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3 . 4

T H A I L A N D

O V E RV I E W

Thailand is one of the most popular destinations in Southeast Asia. The country has long-established and uncolonized history, showcasing both preserved traditions of tranquil temples and modern development of urban expansion. Travelers describe Thailand as â&#x20AC;&#x153;The Land of Smileâ&#x20AC;?, where they can internalize a variety of cultural influences into something uniquely and memorably Thai. Location:

Southeast Asia, between the Andaman Sea and the Gulf of Thailand, Southeast of Burma

Map references:

Southeast Asia

Climate:

Tropical; rainy and warm southwest monsoon (mid-May to September); dry and cool northeast monsoon (November to mid-March); southern isthmus hot and humid all year round

Population:

67,976,405 (2015)

Age structure:

0-14 years: 17.41% (male 6,062,868/female 5,774,631) 15-24 years: 14.78% (male 5,119,387/female 4,927,250) 25-54 years: 46.69% (male 15,675,425/female 16,061,864) 55-64 years: 11.26% (male 3,600,695/female 4,053,977) 65 years and over: 9.86% (male 2,935,703/female 3,764,605)(2015 est.)

Median age:

Total : 36.7 years Male : 35.7 years Female : 37.7 years (2015 est.)

source: (3)

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3 . 5

T H A I L A N D E C O N O M Y A N D F O O T W E A R I N D U S T RY O V E RV I E W

In 2013, Thailand’s economy was under the growing pressure from the recession stemming from its political unrest. Its GDP growth dropped from 6.5% in 2012 to 4.2% in 2013 (Oxford business group.com), which resulted in the slowdown in private consumption persisted longer than initially anticipated. However, thanks to the well-developed infrastructure, a free-enterprise economy, and a strong export industry, Thailand could eventually achieve steady growth. Moreover, major changes in adjustment to the multi-polar global economy and the ASEAN Economic Community in 2015 (AEC) has taken significant part in shaping regional and global development. Asia, including Thailand, has become an important engine in driving the global economic growth; And in turn, impacts various aspects of economic and social development in Thailand. Economic Projections

2012

2013E (Oct 2013)

2014E (Oct 2013)

1) GDP growth (percent y-o-y)

6.5

3.7 4.2 (July 2013)

.8 5.0 (July 2013)

2) Export, FOB value (percent y-o-y)

3.1

1.0

7.0

3) Import, CIF value (percent y-o-y)

8.8

2.8

7.5

4) Trade balance (billion US. dollar)

8.3

2.0

1.1

5) Current account (billion US. dollar)

-1.5

-6.8

-7.0

From the analysis above, Minine believes that the expected growth is a great opportunity for Minine to succeed in the footwear industry in the coming year. Thailand’s footwear industry has one sectorial organization called TFA- Thai Footwear Association, from which people can find relevant information and news. Also, there are fairs and events held once a year. called “BIFF & BIL International Fashion and Leather Fair, Bangkok”; in which attendees can find quality designs, manufacturers, producers, and suppliers from every part of ASEAN’s fashion industries. This event aims to showcase innovations and techniques of fashion products. To select materials for shoe manufacturing, Minine has to consider Thai Government regulations, which are the country’s textile tariffs(4). Minine believes that tariffs is one of the main factors that largely impact Minine’s production cost. Thailand Tariffs: Textile HS Chapter/Subheading Tariff Rate Range (%) Woven Fabric -Silk 5007 17.5 -Wool 5111-5113 5 -Cotton 5208-5212 * -Other vegetable fiber 5309-5311 5 -Man-made fiber 5407-5408 * 5512-5516 -Knit Fabric 60 5* * Some goods may be subject to per unit specific tariff

E: estimate Source: Bank of Thailand, Monetary Policy Report as of October 25, 2013.

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3 . 6

F O O T W E A R I N D U S T RY S E N S I T I V E I N T H A I L A N D

According to The Eleventh National Economic and Social Development Plan (2012-2016), Thailand will implement domestic and international policy changes that present both opportunities and threats to national development. Hence, it is necessary to leverage the advantages of resiliency in Thai society and economy. Thailand recently faced significant changes that may either pose threats to or provide opportunities for the country development. Changes in global rules and regulations have influenced the direction of future development. The 2008 world economic crisis has led to adjustments in global rules and regulations in trade, investment, finance, environmental, and social issues. These reforms in trade and investment focused mostly on intellectual property rights, transparency, climate change, and international cooperation. Therefore, Thai firms must improve production processes and business practices in order to enhance their competitiveness. Corporate social responsibility (CSR) and fair competition should also be addressed. (5) A multi-polar economy is surprisingly important, in which Asia has become an important region of global economic growth, and imperative for Thailand. Meanwhile, the BRIC and ASEAN are becoming new epicenters of economic activities. In addition, various economic cooperation initiatives in the region such as the ASEAN-China-Japan-India Free Trade Agreement, the ASEAN Economic Community (AEC) in 2015, and the Asia-Pacific Economic Cooperation forum have affected various aspects of economic and social development in Thailand, such as human resources.(6)

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Global warming effects and climate changes around the world has caused unpredictable alterations to the weather and more frequent and severe natural disasters. The Mass Rapid Transit Authority of Thailand (MRTA), the state enterprise established in 1992, has promoted businesses significantly in the past decade. The MRTA has been designated for the implementation of the rail mass rapid transit system in Bangkok and its vicinity provinces as prescribed in The Mass Rapid Transit Authority of Thailand Act, B.E. 2453(2010). Currently, the MRTA is supervising the initial system project officially called the M.R.T. Chaloem Ratchamongkon Line. In addition, the MRTA has been assigned to implement a part of MRT extension network, as recently approved by the Cabinet on March 18, 2008. According to the feasibility study, the project will generate the economic benefits in terms of travelling time and travel cost saving with economic internal rate of return (EIRR). Therefore, Minine believes this project will definitely also facilitate shoe purchases, given how Thai customers do their shopping, in the foreseeable future.(7) As mentioned above, these four major changes should largely influence Minine’s business. First, that are more strictlycontrolled regulations than in the past. This can significantly affect our cost of production. Second, amidst the economic cooperation, of the AEC, Thailand will be portrayed as the country of high-quality workforce and merchandises, due to manufacturers being able to choose raw materials from various sources and countries that results in lower costs. Third, the global warming leads consumers to be mindful of the materials used in shoe production; materials in which should be eco-friendly. Lastly, the extension of MRT (Mass Rapid Transit) that will definitelychange the way Thai people travel and enjoy lifestyles. Minine should aim at serving the needs that resonate with those changes in the very near future.

3 . 7

T R E N D S I N F O O T W E A R I N D U S T RY

According to World Footwear, “Project Be Nature” was launched to emphasize that consumers nowadays are becoming more sensitive to the earth and environment. The awareness of this global trend brings simultaneous sustainability and social responsibility to a number of giant footwear companies around the world. Consequently, those footwear companies are more likely to innovate and introduce new materials that are proven environmentally friendly.(8) “3D Printing will become the key to Nike’s manufacturing revolution.” (footwearbiz.com) Nike’s CEO Mark Parker stated that 3D printing has given ample opportunities for his business, as it speeds up time to market new shoes and improve customization capability. At the same time, it also makes the entire production process more efficient and sustainable.(9)

3 . 8 F U T U R E O U T L O O K In 2019, the global and Asia-Pacific footwear industry will be worth $347.45b and $113.47b respectively (MarketLine), driven by the European and Asia-Pacific regions. In addition, it is forecasted that in 2018, Asia-Pacific will generate 30.1% of the global footwear revenues, followed by Europe 21% (WGSN).

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3 . 9

C O M P E T I T I V E

A N A LY S I S

C OM P E T I TO R P O S I T I O N I N G The quadrant shows brand positioning of Minine and competitors. Minine views that competitors fall into two groups. Direct Competitors: Indirect Competitors:

Jeffrey Campbell, Steve Madden and Kenneth Cole Tracy & Belle, Toms and Adidas by Stella Mccartney

Minine has a hybrid style at a more affordable price than Jeffrey Campbell, Steve Madden and Kenneth Cole. However, indirect competitor brands are rather more feminine or hybrid than Minine; But the potential to compete and fulfill the gap in market needs is high.

D I RECT C OMP E TITO RS

Minine considers Jeffrey Campbell, Steve Madden and Kenneth Cole as direct competitors based on styles, functions, and materials. (Table below lists the comparison between Minine and key competitors.)

Competitor Comparison Chart

Minine

Jeffrey Campbell

Style Offering

Flats, Pump, Sandal, Wedge

Price Range

$50 - $190

B o o t s , B o o t i e s , F l a t s , Boots,Booties,Flats, Pumps, Boots,Booties,Flats, Pumps, Man-Tailored,Platforms, Sandals, Sandals, Pumps,Sandals, Sneakers, Wedge Sneakers, Wedge Sneakers, Vault

Strengths

Understand the needs of Thai Have their own signature Competitive price point women shoes the Vaulth

$30 - $415

Comfortable with high sense Edgy of hybrid style style

young

Steve Madden

$25 - $290

and

lively Fun and sophisticated

Kenneth Cole

$40 - $550

Classic and sophisticated Take supply chain responsibilities seriously

Can be worn in many occa- More choices and varieties in More choices and varieties in High recognition as founded sions from office to party styles styles in 1982 High recognition as founded High recognition as founded in 2000 in 1990 Weaknesses

Low brand recognition; as Product quality is not some- Product quality is not some- Not specialized in womenâ&#x20AC;&#x2122;s Minine is new to the market times worth its price times worth its price shoes Higher entry price point to Most products are not practi- Too many product lines and Designs are too plain Minineâ&#x20AC;&#x2122;s beginning stage of cal for Thai market due to its designs production capabilities avant-garde designs

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Head office: Villains SF Thailand, Delmar Thai Ltd. 314/3 Soi Sukhumvit 22, Klongtoey Bangkok, Thailand 10110 - Facebook: www.facebook.com/villains.sf.th - Instagram: https://instagram.com/villainssf - E-mail : cs@villainssf.com , digital@villainssf.com Jeffrey Campbell is a family based company founded in 2000 in the heart of Los Angeles. The founder said, â&#x20AC;&#x153;Our inspiration comes from the everyday woman, the girl on the street, the lady on the subway, the inspiration is YOU.â&#x20AC;?(10) Now Jeffrey Campbell is available globally Delmar Thai is a third-party distributor for Jeffrey Campbell in Bangkok, Thailand. Delmar Thai operates specialty shoe stores, with its first physical and online stores in 2002 under the Villains SF brand. Villains SF is the family of famous Villians located on Haight Street in San Francisco. Nowadays, Villains SF footwear has presence in several leading department stores in Thailand. Villains SF sells shoes under its private label.(11)

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2 41

STEVEN MADDEN, LTD. 5216 Barnett Ave Phone: +1-718-446-1800 Long Island City, NY Fax: +1-718-446-5599 11104 United States http://www.stevemadden.com Source: Hoover’s Company Steve Madden is operated under Steven Madden Ltd, a New York-based company that designs, sources, markets, and sells fashion-forward brand for women, men, and kids. The company has five segments: Wholesale Footwear, Wholesale Accessories, Retail, First Cost, and Licensing. Steve Madden is now sold globally.(12) Steven Madden has had a strong growth of 24% between 2011 and 2012, equal to $123 million. Hoover’s report shows that Steven Madden’s revenue increases gradually each year. At the same time, its inventories also grew from the acquisition of Dolce Vita Holdings, a private-label designer and wholesale brand , in August 2014.(12) Income Statement Revenue Inventories

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Dec 14 1,335.0 92.7

Dec 13 1,314.2 73.7

Sales and Marketing Steven Madden sells its shoes in department stores, specialty stores, and independent boutiques. These distribution channels generates the majority of its revenue. Steven Madden advertises in lifestyle and fashion magazines, using appearances of the founder and design chief Steve Madden around the core of marketing activities. In addition, the company also uses in-store promotions online forums, and social media platforms. (12)

Dec 12 1,227.1 63.7

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Kenneth Cole Productions, Inc. 603 W 50th St New York, NY 10019 United States Phone: +1-212-265-1500 Fax: +1-212-713-6670 http://www.kennethcole.com Kenneth Cole is operated under Kenneth Cole Production, Inc. The company focuses on designing, sourcing, and marketing a wide range of footwear, apparel, handbags, and accessories. The brands under its umbrella are Kenneth Cole New York, Kenneth Cole Reaction, Unlisted, and Gentle Souls. Its distribution channels are department stores, specialty stores, its own retail stores and outlets, and online stores. International stores are operated through licensing and retailers.(13) Pacifica Elements Co., Ltd. 976/7 Floor 1-3, Rimklongsamsen Road, Huaykwang, Bangkapi, Bangkok 10310 Thailand T: +662-641-5939 ext. 29 Pacifica Elements Co., Ltd is a sole distributor ofKenneth Cole in Thailand. The company supplies Kenneth Cole New York to leading department stores and independent stores in Bangkok. There are 15 stores in total.(14)

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I NDI RECT C O M P E T I TORS

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Tracy & Belle, Toms and Adidas are considered Minineâ&#x20AC;&#x2122;s indirect competitors because their styles are either too feminine or too sporty. These competitors help Minine boast its distinctive brand positioning, in which they can clearly differentiate themselves by focusing on a suitable hybrid style compared to other brands.

TR A C Y

BEL L E

Founded in Thailand, Tracy & Belle is a privately-own wholesale brand that offers footwear, handbags, and accessories. Its distribution channels are department stores and online stores, with 7 stores in total. Tracy & Belle offers 3 shoes categories, which are Pumps, Sandals, and Flats.(15)

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Toms was founded in 2006 with a distinctive Alpargata style – a simple slip-on shoes worn by Argentinian farmers several hundred years ago. The outstanding campaign of Toms “One for One” has also earned Toms great recognition. Toms uses print patterns and wedges, which are consequently Minine’s main product assortment. Moreover, Toms was recently launched in Thai market. It operates in one independent store and is also available in big department stores, such as Central Department Store and The Emporium.

Adidas is one of the largest companies in the sporting goods industry. However, Adidas also offers several product lines, including stylish products. Minine specifically views the Stella Mccartney Line by Adidas as its indirect competitor for two reasons. First, this line focuses on lifestyle shoes with a feminine touch to support their customers’ lifestyles. Second, the price range is very similar to Minine’s, presenting it as a formidable option to Minine’s shoes. Adidas has several segments within the company, including the wholesale segment. Adidas operates through 170 subsidiaries in Europe, the Americas, and Asia. In conclusion, Minine has to keep an eye on Adidas even though its products is more athlete-driven. Their product lines that are more fashionable and feminine. They can easily and cross the threshold unto the same market space as Minine in the near future. Adidas has several segments within the company, including the wholesale segment. Adidas operates through 170 subsidiaries in Europe, the Americas, and Asia.

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Strengths - Understand womenâ&#x20AC;&#x2122;s needs - Distinguishable designs feminine comfortability - Versatile for every occasion - Attentive to the detail of every aspect of the shoe

3 . 1 0

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M I N I N E â&#x20AC;&#x2122; S

S W O T

A N A LY S I S

Weaknesses

- Limited initial capital - Recognition and reputation in its infancy - Lack of negotiation power - Limited resources - Cost of production - Pricing not competitive - Lack of experience - Rely on foreign sourcing

Opportunities

Threats

- AEC 2015 (Asean Economic Community) - The extension of the rail mass rapid transit system in Bangkok - 3D printing technology for fast prototyping

- Competition with several heavy footwear giants - Economic uncertainty and political situation in the region - Increases or changes in duties, quotas, tariffs, and other trade restrictions - Foreign currency exchange rate fluctuations - Seasonality and weather conditions - Changing in fashion trends - Potential of substitution

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ST R E N G T H S

WE A K N E S S

Understand women’s needs: As Minine is Thailand based, Minine knows the preference of Thai customers well and can fulfill gaps in demand of the shoe industry. Minine understands women’s demand for a comfortable sophisticated style shoe, especially those of petite working women.

Being new to the market, there are several weaknesses that pose a threat to Minine; which would enable them to compete in the market.

Distinguished designs: Regarding the first strength, Minine’s footwear designs does not only offer aesthetics similar to other premium shoe brand, but they take into consideration the shape of women and their silhouette when wearing those shoes. Feminine yet comfortable: When we think about comfortable shoes, 9 times out of 10, we’re thinking of sneakers in most cases. However, sneakers generally look too sporty or masculine for the work environment where sophistication get you ahead in your career. Therefore, Minine is introducing the feminine look through our stylish print patterns; creating prints that provide soft and gentle senses to their shoes. Being confident,walking comfortably, and looking good are Minine’s mantra. Versatile for every occasion: Minine should aim for their shoes to be adaptable for several occasions, from being appropriate for the work environment to being a shoe you can wear to a party with your friends after a hard day’s work. Attentive to the detail of every aspect of the shoe: Focusing on the finer details that goes into creating their shoe should be their top concern; and it can perhaps be the deciding factor that would distinguish themselves from their competitors. Aim to give their customers the highest level satisfaction. For example, perhaps implementing a shoes box design that can be held as a shopping bag (bagless), giving their customers an added utility of the packaging and with the added benefit of helping the environment with less waste to get rid of.

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Limited startup capital: Minine operates under a sole proprietorship. Therefore, Minine has limited funds and is less likely to attract a significant amount of financing for driving growth. Recognition, reputation, and negotiation power is in infancy stage: Minine is a new brand founded in 2014, compared to their competitors who has over 10 years of experience. Limited production resources: This will lead to high cost of production. Which in turn, will affect the final price. In conclusion, Minine’s price is likely to be higher than competitors. Lack of experience: Lack of experience in running a business to gain profit in the shoes business. A weakness that will be remedied by time and the experiences to come. Rely on foreign sourcing: Some of Minine’s raw materials come from other countries. If there are transportation delay or labor strikes, it will affect Minine’s day to day operation as well.

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PP O RTUN ITIES

AEC 2015: A multi-polar economy in the new world order is surprisingly important, in which Asia has become an important region of global growth, it is imperative for Thailand. Meanwhile, the BRICs and ASEAN are becoming new hub of economic activity. In addition, various economic cooperation initiatives in the region such as the ASEAN-China-Japan-India Free Trade Agreement, the ASEAN Economic Community (AEC) in 2015, and the Asia-Pacific Economic Cooperation forum have affected various aspects of economic and social development in Thailand; As such the development of human resources. This series of actions could lead to an opportune moment for Minine decrease production costs and gain market share in the region. The implementation of the mass rapid rail transit system in Bangkok: According to the feasibility study, the project will generate the economic benefit in terms of travel time saving and travel cost with economic internal rate of return (EIRR). Therefore, Minine believes that this development project will definitely affect to shoe sales in the future. 3D printing technology: According to Nike’s CEO, Mark Parker, he stated that 3D printing technology has tremendous opportunity for his business as it can speed up time from first prototyping to market and increase customization. In the same, it also makes the overall process of producing more efficient and sustainable. Minine believes that this technological innovation would lead to industry-changing behavior; Efficient time management, low costs of production due to less time spent on development stage, and more environmentally friend designs due to the experimentative nature of the technology.

H R EAT S

Competition with several heavy footwear giants: Competes with a large number of marketers of footwear Minine’s competitors are comparatively larger and have greater resources than the Company. Essential elements of such competition are product performance and quality, including extensive technological access, well known product identity, competitive pricing and the ability to adapt to style changes. Economic uncertainty and political situation: Minine’s business is dependent on consumer demand for our products; Thus, an economic and political deterioration such as the Red-Shirt/ Yellow-Shirt protests will decrease consumer spending. Increases or changes in duties, quotas, tariffs and other trade restrictions: Although this could potentially be a positive, if the changes in policy are turned to increase in taxes and tariffs, this could negatively impact the Company’s sales and profitability. Foreign currency exchange rate fluctuations: This would effect to our cost of material and production of Minine and thus, increase in product price. Seasonality and weather conditions: Global warming affects the world throughout. It has the potential to cause unpredictable devastating obstacles to shipment and production operations overseas, and perhaps lead to irregular consumer spending habits. Changing in fashion trends: Fashion is constantly changing, so there can be no assurance that Minine products will receive positive adoption from consumers. Therefore, Minine may encounter significant excess of inventories, as well as lower sales and increased markdown allowances. Eventually, it will lead to a deteriorating financial state of business.

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3.11 MARKET SURVEY SUMMARY To validate the assumptions of the needs of Minine’s customer base, and to uncover possible demands of the market that we might have missed; A survey was conducted in Bangkok Thailand, where Minine chose to debut its first product lines. The survey was taken with 100 sample sizes of female working and living in the Bangkok metropolitan area. This survey consists of 23 multiple choice questions and 4 fill-in-the-blanks questions; that are separated into 4 main parts as follows. - Demographic - Psychographic - Transportation - Shoe Preferences *The survey results from 100 responses are attached in the appendix* I. Demographic Analysis First, let’s assume that females at the age of 23 - 40 are the right target customer – most likely to be attracted and to purchase our products. The survey proved this assumption correct. Second, the education level (95% of the respondents finished high school or higher.) and monthly income (is the majority has over THB 45,000 or approximately USD 1,500.) are relatively high to the whole market. This indicates customers’ high purchasing power and high-quality product preference. They are likely to extensively think about how well said products match with their own personalities and lifestyles. Third, as Minine intends to make shoes that fit the foot shape and enhance woman legs to look more elongated, the survey also showed that most Thai females are petite and require shoes that make them look and feel taller. II. Psychographic Analysis The survey result showed that the majority of respondents have feminine personalities. However, there are some androgynous personalities as well. Minine believes that the androgynous type has been consistently gaining significance. These observations are conclusive that using printed fabrics to strengthen the feminine look, instead of using only solid and vivid colors to serve the needs of the majority, will be rather appealing to the general customer base. We are able to pinpoint androgynous personalities through specific hobby choices. In question #8, these hobbies range from static, such as watching movies, reading, and drawing to very dynamic ones, such asgym workout, biking, and rugby.

Another important point we discovered is that casual business and free style outfits are the two biggest groups of responses. This follows Minine’s concept of making casual and sophisticated shoes at the same time. Even though sneakers are the most comfortable shoes and people tend to use them more, this type of shoe lacks the sophistication that working women of Thailand seek. Lastly, department stores are the most popular destinations for Thai female customers to shop, followed by specialty boutique stores. This helps Minine set the strategy to start the business as a wholesale brand due to well-established channels and excellent store traffic. Retailing through department stores has also the added benefit to save Minine from risks and exuberant operating costs of physical stores itself. III. Transportation Analysis The result from this section of the survey supports the idea that Thai women have casual and flexible routines. Therefore, it is important that their shoe support their activities during this time. Even though there are ongoing constructions of 5 Mass Transit Transportation lines in Bangkok, the survey shows that the majority of people will still use their cars. Also according to survey, 34% of the participants of the survey take mass transit; and with the development of 5 Mass Transit System lines, it is safe to conclude that the percentage of people traveling by Mass transit will only increase in the future. IV. Shoe Preferences Analysis In Thailand, most of our participants prefer the “flat” shoes. This style of footwear is chosen mostly for both general occasions or for any formal environment. From this result, it can be analyzed that flat shoes are chosen due to its comfortability and due to it’s neutral look, it is suitable for both work and casual occasions. On the other hand, sneakers is least chosen for general work shoes and more during occasions such as exercise and traveling. From question 18 and 19, Minine concludes the result shortly as below. #18: Which function of shoes do you need? (most to least) Comfort, Style, Aesthetics, Durability #19: What factors are important when deciding to buy a pair of shoes? (most to least) Comfort, Price, Durability, Aesthetics, Brand Lastly, from the question 20 to 27, this part of the survey should be conducted annually for design purposes, since it will help Minine streamline the design process to meet the ultimate needs of customers.

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3.12 COMPETITIVE ADVANTAGES Being Localized Minine will target launching in the capital city of Thailand, Bangkok; As Minine’s founder is originally born and raised in the heart of Bangkok. Thus, Minine has a very strong advantage in term of understanding the nature of Thai people’s behaviors and the Thai demographic. Education Background Due to the fact that the founder of Minine has a strong background in Economics, she has the abilities to start and run successful businesses with an economy perspective that can maximize profits, as well as utilize connections in production and manufacturing in the most efficient way. Also, having a deep understanding of the market needs; which based on data and figures that has been carefully analyzed from the survey questionnaires (Appendix 10.2) with more than 100 sample size, she can consider the best course of action for the future trends of design and product lineup for Minine. Retail Operation The founder of Minine had been working in retail industry with Central Department Stores, the largest department store chain in Thailand and Southeast Asia (Ara Wilson, The Intimate Economies of Bangkok, 2004). For over 3 years, she was as an Assistant Brand Manager and Junior Buyer. This is a key factor that makes the Minine brand have a deep understanding in retail industry, which is needed to negotiate with many retailers as our distribution channels. So Minine knows how to approach and manage with more efficiency. as well as how to handle the retailer properly.

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Connections The founder of Minine has ties with retail department store giant, Central Department Store; the largest department store chain in Thailand and Southeast Asia (Ara Wilson, The Intimate Economies of Bangkok, 2004). In which will prove to be beneficial in negotiating with many other retailers for distribution. Some more information about Central Department Store: - Central Department Stores has 18 branches all over Thailand. Also 1 branch in Indonesia. - Central Department Stores has sales-per-square-foot figure equal to Macy’s (Ara Wilson, The Intimate Economies of Bangkok, 2004) - Established since 1947. So this department store has a long relationship among Thai customers. Comunications Minine’s future goal is to expand to other international markets. So they have to think about sourcing and manufacture on a bigger scale. Thus, Minine should think to source and manufacture their materials elsewhere. Minine believes that many companies have to face communication barriers, as this will cost them time and money. Fortunately, Minine’s founder is proficient in the Chinese Language. Thus, she can be a great translator and administrator between Minine and Chinese manufacturing companies; to negotiate and collaborate back and forth. Minine believe this will help Minine be confident when working with companies in China.

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4.1 MARKET SEGMENTATION

TA R G E T

MA R KET

A N A LY S IS

source: www.indexmundi.com

Thailand Demographic Overview (End-Used Target Customers) Thailand consists of a variety of ethnic groups: Thai 95.5%, Burmese 2% and 1.3% other ethnicity. The total population of Thailand is 67,741,401. Furthermore, the population can be separated into 5-year age groups, structured as below (17) 0-14 years: 17.6% 15-24 years: 15% 25-54 years: 46.9% 55-64 years: 10.9% 65 years and over: 9.8%

(male 6,117,993/female 5,827,981) (male 5,194,332/female 4,999,669) (male 15,685,882/female 16,097,245) (male 3,468,620/female 3,893,925) (male 2,830,418/female 3,625,336) (2014 est.)

*Minine will target only female base, so the scope of the data will be based on female portion only, regarding from the data sheet above.

Total of Potential Customers: 34,444,156 Minine target age group is of 23 to 45 years old: 21,096,914 (39% from total population of female) Thaiâ&#x20AC;&#x2122;s median age: 37.1 years (2014), which coherently falls into Minineâ&#x20AC;&#x2122;s target market age range. 60

Target Market Analysis

4.2 CUSTOMER PROFILE P RI MARY

CU STOMER

PR OFILE

P E R S ON A

Demographic Name: Gender: Age: Marital Status: Income: Living Area: Occupation:

Ploy Horwang Female 25 Single $1,500 per month Bangkok, Thailand Marketing Manager

*(Number of potential customers discussed later on)

Demographics Age: Gender: Marital Status: Education: Occupation: Income: Social Class: Location:

Target Market Analysis

23 – 34 years old Female Single or Married Bachelor’s Degree to Doctoral Degrees University Student, Professional Moderate to high; USD$1,300 to $3,500 / month (exchange rate @ 1 US Dollar = 35 THB) Middle to Upper Bangkok, Thailand

Psychographics Personality: Charming, Energetic and Compassionate, Lively,Selfconfident, Independent and Mature Style: Boyish/Masculine with a touch of femininity, Minimalist and Simple Interests: Fashion, Travel, Food, Art, Music, and Movie Lifestyle: trying new experiences and people. Do something different each day Political Preference:Liberal Behaviors A true free spirit that loves to talk and share her experiences with people that she interested with. She craves freedom and creativity in her life. Wearing basic cloths that have some details in it; Pays attention to her shoes and bags that need to fit with her clothing style. Shops at the flea market to high-end department stores, boutiques and online stores.

Psychographic and Behavioral She is lively and outgoing, but at the same time, she is part of the Workaholics Anonymous. One of her most favorite motto is “Work Hard Play Harder” In her leisure time; shopping and traveling are the first two activities that she really loves to do. Her thrills in life are to find new inspirations and ideas in museums in the countries she has visited. She is a classy, technology savy, and environmentally conscious. Thus, she prefers to travel by mass transits; as she thinks it gives her more flexibility in life and helps Global Climate Change at the same time. As fashion and style are ever-changing and trending towards to be environmentally conscious, it is the functionality of her apparels and accessories that support her lifestyle is what she cares about. For example, a pair of sneaker that she will buy is not air Jordan but instead she prefers to buy Adidas by Stella Mccartney. As aforementioned, she is a confident and an independent lady who loves to dress up in many styles whether feminine or masculine but still keeps her own identity and original personality with her apparels along with accessories. Minimal, simple and classic are her main point of buying things. Most importantly those fashion items should give her the aesthetic and confidence when she wears them. Target Market Analysis

SE CO NDARY

CU STOMER

P R OFILE

Demographics Age: 35 – 44 years old Gender: Female Marital Status: Single or Married Education: Bachelor’s Degree to Doctoral Degrees Occupation: Professional Income: High; USD$2,500 to $4,700 / month (ex changer rate @ 1 US Dollar = 35 THB) Social Class: Middle upper to high Location: Bangkok, Thailand

Conclusion of the number of potential customers: Primary and Secondary Regarding first two types of customers (Primary and Secondary) Minine can narrow down the scope of the number of customers that can be Minine’s potential customer base on data of formal employed persons by age aroup from Ministry of Information and Communication Technology as in the table

Minine can conclude that their potential customers fall into two age group that takes the second and third biggest portion from the survey, which are: age group of 25–29 years old and age group of 30-34 years old Minine considers the age group of 30 – 34 year old as their primary customer base. Thus, Minine’s amount potential customers is 2,322,478 persons. This number is about 34% from the total formally employed persons at all age (6,776,040). 64

Target Market Analysis

Demographic Name: Gender: Age: Marital Status: Income: Living Area: Occupation:

Anne Thongprasom Female 40 Single $ 3,500 per month Bangkok, Thailand Consultant

Psychographic and Behavioral

Psychographics Personality: Sophisticated, Charming, Self-confident and Independent Style: Classy Masculine with a strong femininity Interests: Books, Travel, Food, Sport, Music and Wine Lifestyle: Enjoy the finer things, Spend much for social izing Political Preference: Liberal Behaviors She is a realistic, responsible and attractive woman, who has a strong sense of style of being classy and sophisticated. She is a workingwoman who ventures out, looking for new opportunities for her career. She struck a balance work and play; and she cares for her professional and neat appearance.

P E R S ON A

She is well-educated, mature, with the ability to earn money and use money wisely. She loves to spend her free time with family and friends. She is the persona of sophistication with big responsibilities to her business and her company. Therefore, her concern on how to dress up to look professional and trustworthy is key to the importantance of her working life. Price takes a back seat to the quality and style of what she chooses to buy. Consequently, she shops at well-establish brand name stores, as she believes they have better quality of product. However, she also shops at local brand names that fit to her style as well. Minine believes that she can become a potential customer who enters or visits our stores and simply gathering information or browsing of the brand then eventually make a purchase. Table : Formal Employed Persons by Age Group (2012) Age Group Female 15-19 160,084 20-24 713,955 25-29 1,140,087 30-34 1,182,391 35-39 1,071,566 40-49 1,579,789 50-59 797,621 60 and over 130,547 Target Market Analysis

T ERT I ARY

CU STOMER

PR OFILE

P E R S ON A

Demographic Name: Chen Meing Gender: Female Age: 37 Marital Status: Married Income: $ 5,000 per month Living Area: Hong Kong Occupation: Merchandiser Psychographic and Behavioral A working mother, based in Hong Kong with her family. She has many business trips within Asia, but she still manages to balance her work and personal life. Chen Meing visits Thailand from time to time to visit her best friend. But that’s not all, you can say that her friend is very influential in Chen Meing’s style in fashion. This is the perfect customer to Minine. By marketing to Thai customers, through word of mouth and influence of fashion, Minine can grow into a recognizable brand internationally.

Tourists, Visitors

Demographics

Age: 25 – 45 years old Gender: Female Marital Status: Single or Married Education: Bachelor’s Degree to Doctoral Degrees Occupation: Professional Income: Moderate to high; USD$2,500 to $4,700 / month (exchanger rate @ 1 US Dollar = 35 THB) Social Class: Middle to Upper 66

Target Market Analysis

Psychographics Personality: Classy, Simple and Neat Style: Femininity but wants to try something new Interests: Books, Travel, Yoga, Cooking Political Preference: Liberal

Behaviors She is generous, unique, and with an earthy wit; and she has a strong sense of style. She is looking to try something new, but still keep her identity. She likes to travel to places where she gets a lot of inspiration to adapt local cultures to her style.

Target Market Analysis

4.3 DISTRIBUTION CHANNELS TRAD E

SHOW

As a wholesale brand, Minine will approach the market by attending tradeshows; both domestically in the first couple years of operation and internationally in the future. These are a list of tradeshows pertaining to the footwear industry:

Target Market Analysis

BIFF & BIL International Fashion Location: Bangkok, Thailand Cycle: Annual Month: March Booth Size: 9 sq.m. (3x3 m.) per booth Price: $850 (Package includes: (3) side hard wall structures, (2) chairs, (1) wastebasket, (1) lockable cabinet, (1) fabric rack or (6) shelves, s potlights, carpet, booth signage, (1) 5 amp socket Organizer: Department of International Trade Promotion, Ministry of Commerce, Thailand 563 Nonthaburi Road, Bangkrasor, Nonthaburi 11000 Thailand Tel: +66 2507 8367, +66 2507 8369, +66 2507 8371 Fax: +66 2547 4283 Email: info@biffandbil.com, fashion.ditp@gmail.com, biffand bil@ditp.go.th, fashion_ditp@ditp.go.th Website: www.biffandbil.com www.thaitradefair.com

Target Market Analysis

Fashion Access Location: Cycle: Month: Price: Booth Size: Organizer: Email: Website:

The Bangkok International Fashion Fair & Bangkok International Leather Fair (BIFF&BIL) is a trade show that will be held once a year in Bangkok, Thailand. Its purposes are to showcase merchandises, designers, traders and suppliers from ASEANâ&#x20AC;&#x2122;s fashion and leather industries. This event is organized by the Department of International Trade Promotion, Ministry of Commerce, and the Royal Thai Government.

Hong Kong Bi-annual March and October $2,500 9 sqm APLF Ltd anna.v@ubm.com (for Thailand only) www.fashionaccess.aplf.com

Fashion Access is one of the most comprehensive trade show of fashion goods in Asia-Pacific. It includes products such as bags, leather goods, footwear, apparel, and accessories. The event will take place in Hong Kong twice a year. Exhibitors of more than 30 countries come to showcase in this event. Importers, wholesalers, buying offices, department store, retailers and boutique buyers from around the globe also come here to scout for new potential products.

In 2016, the visitor count is expected to be about 25,000 people with exhibitor count to be about 540 booths. Respectively, it would be an increase of 8% from 2015. (BIFFandBIL.com) Through this trade show Minine believes that it would be a great place for them to exposure its brand to all the buyers.

Target Market Analysis

The Hub Location: Cycle: Month: Organizer: Email: Website:

WSA @MAGIC Shanghai, China Bi-annual March and October The Hub (Hong Kong) LTD. exhibit@thehub.hk www.thehub.hk

This trade show is an event where premium fashion brands gather into one place. A Hong Kong based trade show, which focus on cult brands that aim to expand its business in Asia. As well as, to connect to the Asia market’s within the region and internationally. According to The Thread, The Hub attracted the likes of many big chain department stores and supplier such as, Lane Crawford, Harvey Nichols and Li and Fung Brands; as well as buyers from mainland China, Southeast Asia, Korea, Taiwan and Japan. From this trade show, Minine should recieve more brand exposure, as well as new distribution channels.

Target Market Analysis

Location: Cycle: Month: Organizer: Email: Website:

Las Vegas, USA Bi-annual February and August MAGIC ksichterman@magiconline.com www.magiconline.com/wsa-at-magic

WSA is a subsidiary of MAGIC, the biggest global market place in fashion industry. WSA is a trade show exclusively showcasing footwear and handbags that will be held twice a year in Las Vegas. The reason that Minine should choose this trade show is because of Jeffrey Campbell, one of their competitor who share some of Minine’s target customer base, also attend this trade show. This would consequently lead Minine to the right target base or potential retailers that would be perfect for Minine. Moreover, this event can be a perfect gateway for Minine to approach the U.S. marketplace at the same time.

From these trade shows, Minine believes that it will gain an opportunity to meet international buyers as well as source new materials from other suppliers that could prove to be a better cost for producing Minine’s shoes. As such, Minine can showcase products to all buyers from big to small retailers who attend the tradeshows. Minine categorizes its potential retailers into two types: department stores and specialty stores. Due to the fact that Minine will first launch in Thailand, Minine will give priority to potential retailers operating in Bangkok, Thailand first.

Target Market Analysis

2. Zen Department Store

4.4 POTENTIAL RETAILERS P R IM A R Y

RE TAL IERS

It would be beneficial for Minine to build up a list of potential retailers that would then later distribute Minine products to the customer base from attending from the aforementioned list of trade shows. Minine also needs to establish their own showrooms located in Thailand. In the case when Minine has special appointments or press conference, where Minine cannot afford to wait for the next trade show.

Central Department Store Founded: 1927 Location: Bangkok, Thailand Address: 1027 Phloen Chit Rd, Lumphini, Pathum Wan, Bangkok 10330 Telephone: +66 2 793 7777 Operating Hours: Open daily 10.00 AM - 10.00 PM Website: www.central.co.th

D EPARTMEN T

Founded: 1991 Location: Bangkok, Thailand Address: 4, 4/5 Rajdamri Road, Pathumwan, Bangkok 10330 Telephone: +66 2 100 9999 Operating Hours: Open daily: 10.00 AM - 10.00 PM Website: www.zen.co.th

STOR ES

Central Department Store (CDS) was founded by Tiang Chirathivat. It has been acknowledged as Thailand’s most trusted and recognized retail Department Store (centralgroup.com). CDS is the oldest chain department store based in Thailand and are still privately own by the Chirativat family. The company offers a wide rage of merchandise including apparels, accessories, footwear, cosmetics and home goods. CDS is a subsidiary of The Central Group.

Founded in 1991, Zen is an edgy lifestyle concept store that is located in the heart of the shopping area in Bangkok; conveniently accessed by BTS sky train. From 2006 to present, Zen was acquired by Central Retail Corporation, one of the biggest retail companies in Thailand.

Central Department Store currently has 18 branches nationwide, 13 of which are in the heart of Bangkok. The most profitable branches are located in key locations in Bangkok; Chidlom, Ladprao, Bang Na, and Pinklao district. The information above clearly illustrates that the department store average age of customers who shop with CDS fall into Minine target customer group as well.

It usually has 7 levels that offers multi-brand from domestic and international, lifestyle and entertainment services. Zen department store sells many product categories to its customers from fashion goods, cosmetics, sportswear, home goods, to electronics. On the second floor is the Zen’s Women’s Elegance section where the customers can find designer and contemporary brand shoes.

Gross Retail Area: Over 63,000 sqm Average Age of Customer: 30-40 Percentage of Tourists: 25%

3. Siam Paragon Founded: 2005 Location: Bangkok, Thailand Address: 991/1 Pharam 1 Patumwan Bangkok 10330 Telephone: +66 2 610 8000 Operating Hour: Open daily: 10.00 AM - 10.00 PM Website: www.themallgroup.com/en/page/paragonmain

Siam Paragon opened its business in 2005. Siam Paragon is a joint-venture of two real estate development and retail management company-Siam Piwat Co., Ltd. and The Mall Group Co., Ltd.. Siam Paragon has become known as the pride of Bangkok; its style and upscale department store made it an exceptional spot in the Pathumwan area. Their mission is to create and upgrade the Thai peopleâ&#x20AC;&#x2122;s way of life and put Bangkok on the map as a world-class shopping destination. There are more than 250 Thai and universal boutiques that incorporate fashion, design, excellence, gems, timepiece, eatery, diversion, craftsmanship, society, training, and cutting edge innovation.

4. The Mall Group Founded: 1981 Location: Bangkok, Thailand Address: 144 Ramkhamhang Rd, Hua Mak, Bangkapi, Bangkok 10240 Telephone: +66 2 310 1000 Operating Hours: Mon - Fri: 10.30 AM - 09.00 PM Sat - Sun: 10.00 AM - 09.00 PM Website: www.themall.co.th The Mall Group Co., Ltd. started its operation as a shopping center, under the name The Mall, on 25 June 1981. The Mall aimed to position themselves to expand its business in developing suburban areas where other retailers have yet to establish a foothold. The Mall is another big chain department store in Thailand, which is the main competitor to Central Department Store. Currently, The Mall has nine branches across nationwide. The Mall claims to understand and are trusted by customers. The Mall sells almost the same product categories as Central Department Store, which are apparels, accessories, footwear, cosmetics and home goods.

5. Parkson Department Store

6. Lotte Department Store

7. Sogo

Founded: Location: Website:

Founded: 1979 Location: Seoul, Korea Address: 30, Eulji-ro, Jung-gu, Seoul, Korea Telephone: +82 2 771 2500 Website: www.lotteshopping.com

Founded: 1830 Location: Japan, Taiwan, China, Singapore, Hong Kong, Indonesia and Malaysia

1987 Malaysia, China, Vietnam, Indonesia and Myanmar www.parksongroup.com.

Parkson operates its business through out South East Asia. Parkson claim itself that “it has the first mover advantage in the department store market in cities like Ho Chi Minh City, Hanoi and Yangon”. Until now Parkson comprises 123 stores (including one supermarket). They carry numerous international brands to offer its customers in the middle and upper-middle income with a wide rage of merchandise such as cosmetics & fragrances, handbags, footwear for men women and children, home goods. Moreover, Parkson is one of the first foreign department store chains to operate in China. Until now there are 33 major cities in China.

Target Market Analysis

The Lotte Department Store Main Branch is located in the heart of Myeongdong’s fashion district where they have two million shoppers visiting each day. Now, the Lotte Department Stores has a total of 10 branches in Seoul and 48 branches nationwide. Offering fashion apparel, jewelry, cosmetics, grocery, fashion accessories, household goods, electronics and more.

Sogo was first started in Osaka, Japan. It is a department store chain that has many branches in Asia; Japan, Taiwan, China, Singapore, Hong Kong, Indonesia and Malaysia. All overseas branches are independent franchises. Sogo is one of the major shopping destinations in each country. They offer quality goods and services, fashion apparels and accessories from both domestic and international brands.

Target Market Analysis

8. Macy’s

9. Nordstrom

Founded: 1858 Location: United State of America Headquarter: Cincinnati, Ohio, USA Website: www.macys.com

Founded: Location: Headquarter: Website:

According to Macy’s Inc, Macy’s department store is one of the largest retailers in the world that operates about 885 stores in 45 states, the District of Columbia, Guam and Puerto Rico; under the names of Macy’s, Bloomingdale’s, Bloomingdale’s Outlet and Bluemercury. As well as, the macys.com, bloomingdales.com and bluemercury.com websites. Macy’s is known for a broad range of popular culture and merchandise from clothing, footwear, accessories, bedding, furniture, jewelry, beauty products, and housewares; as well as, its private brands that they produce exclusively for themselves.

Nordstrom is an American upscale fashion retailer that offers clothing, accessories, handbags, jewelry, cosmetics, fragrances, wedding and home furnishing. They have 323 stores, 121 full-line stores, and 195 Nordstrom Rack in 39 states and Canada. They also have online channels through Nordstrom. com and nordstromrack.com. Moreover, Nordstrom has a partnership with its private sale site HauteLook.

1901 United State of America Seattle, Washington, USA www.shop.nordstrom.com

S E CO NDARY RE T AI L E RS SPEC IAL T Y S T O RE S O R BO UT I Q UE S 1. Bloc Shop

2. The Adjective

Location: Address: Telephone: Open hours: Website:

Location: Thailand Address: 4/4 Centralworld B124 1F Ratchadamri Rd, Pathum Wan, Bangkok 10330, Thailand Telephone: +66 2 613 1532 Open hours: Open daily: 10.00 AM - 10.00 PM Website: www.the-adjective.com/about-us Facebook: www.facebook.com/TheAdjective

Thailand Siam Square Soi 1 Bangkok, Thailand +66 2 658 4845 Mon - Sun: 12.00 PM - 09.00 PM www.instagram.com/theblocshop

Bloc Shop is a multi-brand and concept Store that sells women and men’s apparels and accessories including footwear, handbags and jewelry. The shop has a wide rage of brands that they carry from street wear, contemporary to luxury brands. The brands that have been chosen to sell in its store are from only from Thai designers.

One of the first multi-brand boutiques founded in Thailand with a strong sense of unique style for its customers. The first Adjective store opened in 2009 right in the heart of Bangkok with a great belief saying, “One has a right to define their own meaning to self style”. From this motto, Minine can see the similarities in point of view of being “distinct from something else”. Therefore, Minine believes that The Adjective could be a great potential retailer that shares the same sense of style. Now The Adjective has grown from one store to three stores with the mission, “The Adjective thrives to provide the missing ingredients to let you be the real and unique you”

Target Market Analysis

3. House of Fashion (HOF)

5. Another Story

Location: Thailand Address: 236/7 Siam Square 2, Pathum Wan Bangkok, Thailand Open hour: Open daily: 12.30 PM - 8.00 PM Website: www.hof.in.th Facebook: www.facebook.com/HOFstore/timeline

Location: Thailand A lifestyle store that offering a variety of affordable and unique items from Thailand, as well as global brands. The latest store has opened at EmQuartier. The store offers 160 well-known brands including 70 exclusive international brands and 30 collections from Thai brands.

House of Fashion (HOF) is a multi-Thai brands store that offers a wide rage of merchandises including apparels, jewelry, handbags and footwear. Their strength is that they bring only Thai brands that have good designs and quality. They consider the importance of supporting Thai designers and fashion industry in Thailand. Moreover, HOF also has a very good marketing through online and social media such as Facebook, Instagram and LINE. This would be a great opportunity for Minine have them as a potential retailer because Minine fall into HOF qualification in term of being a Thai-based brand and strong design and good quality.

Their products are separated into eight categories: another Parisian Chic story (fashion), another Script story(stationaries), another Artsy story(artistâ&#x20AC;&#x2122;s work), another Sandy story(fashion), another Tasty story(cafe), another Funky story(gadgets), another Cosy story and another Lush story(gadgets, stylish home decors and aromatherapy). The example of the brands that they carry such as: Reiko jeans, handmade Veja shoes, Bensimon shoes.

4. SOS Sense of Style

6. Et-i-kit

Location: Address: Telephone: Email: Website: Facebook:

Location: Address: Email: Website:

Thailand Siam Square Soi. 1, Bangkok, Thailand +66 96 154 6469 sos.senseofstyleshop@gmail.com www.instagram.com/sos.senseofstyle www.facebook.com/sos.senseofstyleshop/timeline

Sense of Style (SOS) store is completely stuffed with more than 30 top brands. They precisely choose everything that can be efficiently blend with any garments for that special day and brilliant for easygoing look. The simple and independent multi-brand store in the heart of Bangkok fashion district that permits customers to shop for every piece of clothing or apparel in a one-stop destination.

Target Market Analysis

Tanjong Pagar, Singapore Et-i-kit, 34 Kandahar St., Singapore info@et-i-kit.com www.et-i-kit.com

This multi-brand store and online boutique stocks new fashion brand names from around the globe including Addison, Bec and Bridge, Cameo, Keepsake, Mawi, Self-Portrait, Stylestalker and Vita Fede. Every piece are handpicked, and the store just stocks a few piece for every design.

Target Market Analysis

7. The Selected Founded: 2013 Location: Bangkok, Thailand Address: Siam Tower, Rama 1 Road Pathumwan 10330 Bangkok Telephone: +66 2 2658 1000 Operating Hour: Open daily: 10.00 AM - 09.00 PM Website: www.siamcenter.co.th

Target Market Analysis

8. i.t. A Lifestyle Multi-brand Concept Store, The Selected, is the highlight of the five embodiments of Siam Center: Art, Fashion, Lifestyle& Music, Technology, and Absolute Siam. As stated in its name, The Selected curated a major determination of configuration and lifestyle items. They are able to rouse together more than 69 brands from Thailand and all over the place else around the globe.

Location: Address: Telephone: Hours: Website:

9. ALAND Hong Kong Southmark, 11 Yip Hing Street, Aberdeen, Hong Kong +852 3199 1991 Mon-Fri: 9:30 AM – 6:30 PM www.ithk.com/

Started in 1988, a multi-brand store provides a youthful yet sophisticated products to its customers. The store highlights itself to carry an accessible brand name of clothing, accessories, handbags, and footwear to their customers. i.t is more engaging than any time in recent memory in expanding markets; for example, Mainland China and Taiwan.

Location: Address: Telephone: Website:

Korea 53-6, Myeongdong 2-ga, Jung-gu, Seoul +82 2 32105890 www.en.alandglobal.com/index.html

As a selected shop of trying youthful fashioned brands, ALAND has been putting forth an extensive variety of design styles in a broad line of garments, shoes, and different other fashion items. Aland has been displaying an assortment of style societies to numerous individuals as a multi-brand store with new mold planners. Presently we are offering everything—garments, shoes, socks and stationary things—can be touched by designer’s sense

Target Market Analysis

T E RT I ARY RE T AI L E RS O NL I NE

1. Youme Founded: Website:

2015 www.youme.com

With the continuous growth of e-commerce business in Thailand, Youme is the first online store operates under a visual diary concept. They create a memorable shopping experience that goes beyond traditional online retailer. Not just focusing on the product offerings, but equally focus on portraying and sharing the sophisticated lifestyle of Youme. Its product assortment is a combination of in-house designs and hand-selected pieces from Thai vendors. The modern and timeless design emphasized by the twist detail creates a unique versatile product. The brand serves the urban lifestyle of young, modern customers targeting at Thai women age ranges between 18 - 35 years old who enjoy social activities, take pleasure in slow lifestyle, and respond to the current digital era.

10. Club Culture

11. D-MOP

Location: Address: Telephone:

Loacation: Website:

Indonesia Lippo Mall Kemang, Ground Floor G28, Jl. Pangeran Antsari No. 36 P, Kemang, p. +62 21 2905 6903.

This one stop shopping spot for all things is not going to disappoint and is perfect for those looking for something edgy and urban. Youâ&#x20AC;&#x2122;ll drool over their racks dominated by popular brands like Nudie Jeans Co, Ben Sherman, Cheap Monday, Scotch&Soda, and True Religion that will keep you coming back for more.

Target Market Analysis

Hong Kong, China and Taiwan www.d-mop.com/eng/about-us.php

Ever since its conception in 1988, D-mop has been unwaveringly dedicated to exploring unique, cutting-edge designs, advocating creative and quality collections as well as supporting new bright talents, attaining themselves the reputation of possessing the most distinctive visions on the fashion scenes around the world.

Target Market Analysis

2. Zalora Founded Website:

3. Motif Official 2012 www.zalora.co.th

Zalora Thailand was formally started in 2012; they are the quickest developing online retailer in Asia. ZALORA offers a broad gathering of more than 500 top worldwide and Thai brands over womenswear, menswear, footwear, accessories, beauty and sportswear. Zalora is rapidly turning into the destination for an online shopping site. Also, with a decent blend of domestic and universal fashioned brands, they expect to wind up the one-stop online shopping that will provide everything for its customers. There is more than 50,000 items feature on the website, and several new product offerings each week. They grasp both style and innovation and have faith in consolidating them as one, to give its customers the best web shopping experience.

Target Market Analysis

Founded: 2014 Website: www.motifofficial.com Motif Official is an online concept store focusing on ladiesâ&#x20AC;&#x2122; clothes and accessories; Motif selects brands from around the globe as well as designs their in-house apparels. Their concept is all about the minimalism with an attention to small details. Motif Official is first launched as an online store, however, on August 2015, Motif Official has opened its first store at Zen Department Store.

Target Market Analysis

4. Pomelo Fashion

5. Shopbop

Founded: 2013 Website: www.pomelofashion.com Facebook: www.facebook.com/pmlofashion/timeline Telephone: +662 105 4070 Simple and easy online shopping website, where they offer services such as the 365 day returns and cheapest/ fastest shipping policy. Pomelo is a great potential retailer for Minine product as they have a very strong sense of style that best suit to Minine’s shoes.

Founded: Website:

Target Market Analysis

2000 www.shopbop.com

“The go-to online retail destination for modern style,” Shopbop offers an extensive, hand-picked accumulation of attire from luxurious to contemporary brands. Since its launched in 2000 as a denim-centered e-commerce, Shopbop has developed itself into one of the world’s fashion power. Alongside great client administration, Shopbop conveys unparalleled closet counsel, forefront article lookbooks, creative components, and select coordinated efforts with forward-minded brands. The outcome is an exceedingly customizable, fulfilling, and—most importantly—fun shopping knowledge that takes into account style-minded ladies around the world. In 2006, BOP LLC was obtained by Amazon.com, Inc., the world’s biggest web retailer, empowering Shopbop to extend its administrations to improve the customer experience. A trusted, universally perceived style dealer; Shopbop offers just quality.

Target Market Analysis

5.1 PRODUCT OVERVIEW Minine footwear offers four main categories: Wedges, Sandals, Flats and Pumps. Their key focus should be Wedges (45%) and Sandals (40%), because Minine wants to approach the Thai market by bringing casual style and versatile shoes to Thai women. As Minine recognizes the opportunity that the market is devoid of shoes of this type, it will be the determining factor to separate themselves from their competitor. In addition, Minine also can distinguish itself by designing outstanding sophisticated patterns on their shoes. Thus, the customers can rest assured that every pair of shoes are designed to cater for them on a personal level to be useful and worthwhile. Minine Women Footwear Assortment Chart *Fabric, Leather or mixed

The Percentage of Minine’s Shoes Categories Pie Chart

P R OD U C T P L A N

Inspiration “Inspiration is everywhere” is Minine’s motto that they infuse into each and every collection. The founder is a traveling nomad and is observative to her surroundings. As a result, nature and people’s lifestyle is Minine’s greatest inspiration when designing their products. 5 words that defines Minine’s collections are: Architecture, Nature, Organic, Texture and Women. Architecture- brings the idea of structure and masculine. Nature and Organic lead to shapes and colors. Texture makes simple thing into something and Women is Minine’s core concept. Product Plan

5.2 SPRING SUMMER 2016 COLLECTION EPIC EN E

Product Plan

5.2 SPRING SUMMER 2016 COLLECTION

Line Sheet We d g e

SS 16 “Epicene”

OVERVIEW

SR: $150

SR: $170

SR: $130

Product Plan

Line Sheet We d g e

SR: $120

SS 16 “Epicene”

Line Sheet Mid Heel

SS 16 “Epicene”

SR: $100

SR: $100 SR: $120

SR: $140

Product Plan

SR: $90

Product Plan

Line Sheet Mid Heel

SS 16 “Epicene”

Line Sheet Flat

SS 16 “Epicene”

SR: $80 SR: $80

SR: $90

SR: $80

SR: $90

100

Product Plan

101

Line Sheet Flat

SS 16 “Epicene”

Line Sheet Pump

SS 16 “Epicene”

SR: $120 SR: $80

102

Product Plan

103

5.3 FALL WINTER 2016 COLLECTION PAPIL L ON

104

Product Plan

5.3 FALL WINTER 2016 COLLECTION O VERVI EW

Product Plan

105

Line Sheet We d g e

SR: $150

FW 16 “Papillon”

Line Sheet We d g e

FW 16 “Papillon”

SR: $120

SR: $170 SR: $140

SR: $150 SR: $90

106

Product Plan

107

Line Sheet Mid Heel

SR: $150

SR: $100

SR: $120

SR: $80

SR: $00

108

FW 16 “Papillon”

Product Plan

FW 16 “Papillon”

SR: $80

Product Plan

109

Line Sheet Flat

SR: $100

FW 16 “Papillon”

Line Sheet Pump

FW 16 “Papillon”

SR: $150

SR: $80 SR: $120

SR: $80

110

Product Plan

111

THE PROTOTYPES

PRO TO T YPE - VI NN112

Product Plan

# 1

Product Plan

113

PRO TO T YPE - VO RT H-

PROTOTYPE -VAL 114

Product Plan

# 3

# 2

Product Plan

115

5.5 THE LOOKS

116

Product Plan

117

118

Product Plan

119

120

Product Plan

121

Vinn

F/W 2016 Desc: Printed Wedge with Leather Monk- Strap

Construction Sheet

Upper: Printed Canvas 8 oz., Black Napa Leather Monk-Strap Lining: Canvas 4-8 0z. Unit/Outsole: Wrapped Plastic Wedge, Rubber Outsole Trim: Matte Black Grommets Eyelets, Matte Black 1 cm Buckel Toe: Slightly Oblique Toe Shape (as in the style info sheet)

TECH PACK “VINN”

6.5 cm

Construction Sheet Detail Sheet Style Info Sheet Cost Sheet

5 cm 2 cm

1 cm

5 cm

7 cm

2 cm 4 cm 2 cm

122

Product Plan

2 cm Product Plan

123

124

Product Plan

125

126

Product Plan

127

128

Product Plan

129

FW 2016 Desc: Printed Sandal with Leather Monk- Strap

Val

Construction Sheet

Upper: Printed Canvas 8 oz., Brown Napa Leather Monk-Strap Lining: Canvas 4 0z. Unit/Outsole: Plastic Wrapped with Leather, Rubber Outsole Trim: Matter Brown 2 cm Buckel Toe: Slightly Point Toe Shape (as in the style info sheet)

TECH PACK

6 cm

“VAL” Construction Sheet Detail Sheet Style Info Sheet Cost Sheet

2 cm

4 cm

1.5 cm

1.5 cm 4 mm

1.5 cm 6 cm 6 cm 2 cm

1 cm 5 cm

4 mm 4 mm 4 mm

2.8 cm 2 cm

130

Product Plan

4 mm Product Plan

131

132

Product Plan

133

TECH PACK “VORTH” Construction Sheet Detail Sheet Style Info Sheet Cost Sheet

134

Product Plan

135

Vorth

FW 2016 Desc: Printed Mules with Monk-Strap

Construction Sheet

Upper: Printed Canvas 8 oz., Brown Napa Leather Monk-Strap Lining: Canvas 4 0z. Unit/Outsole: Rubber Molded Footbed, Rubber Outsole Trim: Matter Brown 2 cm Buckel Toe: Point Toe Shape (as in the style info sheet)

5 cm

1.5 cm

9.5 cm

1.5 cm 1.5 cm 1.5 cm

3.7 cm 2 cm

4 mm 1.5 cm

4 mm 1 cm 1.7 mm 3 mm

136

Product Plan

137

138

Product Plan

139

5.6 LABELS & PACKAGING Labels

Sticker Label: Size: Material:

Will be attached with the shoes box. 2.25” x 3.5” Transparent Sticker

5.6 LABELS & PACKAGING Packaging Size:

Material:

W 13” x H 4.5” x D 5.5” Box- Corrugated Paper Handle- Soap Rope 1” wide 24” long

8”

Box Technical Flat

5.5”

VAL

1.5” 1”

C: SAND FLOW

S: 37

1.75”

4”

US EUR C M 6 38 2 3.5 Printed Canvas Sandal Made In China

$ 100.00

1230430596024

7”

11.5” 4” 1.75”

4”

1.5” 1”

1.75”

1.5”

4” 3.5”

140

Product Plan

1.75”

7”

Product Plan

141

142

Product Plan

143

5.7 PRODUCT SOURCING Below is a detailed report of four companies that relates to both collections from Minine Women Footwear; all of the suppliers that produce and sell materials that Minine will require to make their shoes. The main aspects of shoe-making include: Canvas, Thermoplastic, and Buckles. As Minine shoes will be produced in China. The reason that Minine chooses to manufacture in China is due to it being the biggest chunk of the market segment in Asia-Pacific region, valued at 62.9% (MarketLine); And according to Business Wire, China is the world’s largest manufacturer, consumer, and exporter of footwear. As Minine’s focus remains in China, it will lead to the more manufacturer options that are available in China. However for materials, Minine and the manufacturers should look to sourcing internationally or domestically in Thailand for best quality possible at the lowest price.

Shandong Ningjin Xinjin Xinxing Chemical CO., LTD. (China) Product: Thermoplastic Delivery: 15 Days MOQ: 300 Kilogram/Kilograms Capacity: 5,000 Ton/Tons per Year Payment Terms: L/C,T/T,Western Union Number of Employees: 51 - 100 People OEM Service Offered

Ever Bright Co., LTD. (China)

Product: Buckles Delivery: 30 Days MOQ: 3,000 Piece/Pieces Capacity: 110,000 Piece/Pieces per Month Payment Terms: L/C,T/T Number of Employees: 51 - 100 People

144

Product Plan

Dezhou Guofeng Textile Co., LTD. (China) Product: Plain Dyed Canvas Fabric, 8 OZ Delivery: 20 Days MOQ: 3000 Meter/Meters Capacity: 1,000,000 Meter/Meters per Month Payment Terms: L/C,T/T Number of Employees: Above 1000 People

Shenzhen Zhongda Velcro Textile Co., LTD. (China) Product: Velcro Tapes Material: 1005 Nylon Delivery: 7-15 Days MOQ: 500 Piece/Pieces Capacity: 5,000,000 Piece/Pieces per Week Payment Terms: L/C,T/T Number of Employees: 51 - 100 People OEM Service Offered Design Service Offered

5.8 MANUFACTURER PROFILE Name: Year Established: Business Type: Main Products: Location: Number of Employees: Total Annual Sales Volume: Main Markets: Average Lead Time: Accepted Delivery Terms: Accepted Payment Currency: Accepted Payment Type: Nearest Port: Language Spoken:

Guangzhou Giovanni Shoes CO., LTD 2012 Manufacturer, Trading Company Lady Wedges, Sandals, Dress Shoes, Man Casual Guangdong, China (Mainland) 51 – 100 employees Above US$100 Million Asia, Mid East, Africa, Southern Europe, Eastern Europe, South America 35 Days FOB, CIF, EXW USD, EUR, HKD, CNY T/T, Cash Guangzhou, Shenzhen English, Chinese, And Russian

Name: Address: Business Type: Year Established: Supply Location: Total revenue (per year): Main Market: Weekly capacity: Payment term: Delivery term: Product/Specialized:

Yinge Footwear Co,. Ltd. Guanchao Industry Distrct, Chaoan, Guangdong, China Factory OEM 2001 Chaozhou 100,000 - 500,000 USD Japan, US, Asia 6,000 -7,000 pairs/week 30% Deposite 70% After Shipment 40 – 45 working days, FOB Shenzhen Sandals, Flats with rubber, PU, TPR sole

Name: Address: Business Type: Year Established: Supply Location: Weekly capacity: Payment term: Delivery term: Product/Specialized:

Snow Flakes Shoes Co,. Ltd. 82/28 M.1 Soi.Ekachai6 ,Ekachai Rd. Jomthong 10150 Thailand Factory OEM 1969 China, Thailand 2,000 -5,000 pairs/week 30% Deposite 70% After Shipment 40 – 45 working days Sandals, Flats

Product Plan

145

5.9 PRODUCTION CALENDAR

5.10 TIME & ACTION CALENDAR

Delivered to the retailers by ground transportation (Domestic) Manufacture in China Wearhouse located in Thailand 146

Product Plan

147

6.1 OBJECTIVES & GOALS In the first year of operation, being new to the market, it is very important for Minine to create brand awareness to its customers. As such, will lead Minine to their business goals. Minine defines brand awareness in two dimensions: distribution channels and end-use customers. The objectives of creating its brand awareness are: Distribution Channels

MA R K E T IN G P L A N

Thailand · A minimum of 20 purchase orders from trade shows in our first year · A minimum of 4 top grossing branches in main department stores within Bangkok (Chidlom, Lardprao, Bangna, Pinklao areas) · A minimum of 16 boutiques across provinces in Thailand International · A minimum of 15 purchase orders from trade shows in our first year · A minimum of 2 department stores · A minimum of 8 boutiques · A minimum of 5 online channels End-Used Customers · 10,000 likes on Facebook · 10,000 Instagram followers · 5,000 followers on Pinterest

Marketing Plan

149

6.2 BRANDING Brand Logo Development

VERSION A

Cost of Goods $ 34 Mark-up 60% Wholesale price/ Selling price $85

VERSION B

As aforementioned, the reasons that Minine choose to approach the market by those important elements are because Minine believes that 1.Thailand is a upper-middle income economy (The world bank, Aug 2011) and a moderate price point will attract Thai customers to gravitate towards the brand rather than setting high price point, which can be sold in niche market. 2. Minine uses Cost-based pricing is because we want to make sure that all cost has been covered.

VERSION C

Marketing Plan

This factor will set the price by adding a fixed percentage to the cost of producing the product. This mark-up pricing is widely used in retailing, where Minine wants to know with some degree of certainty what the gross profit margin of each sale will be. An advantage of this approach is that Minine will know that its costs are being covered. Factor#2: Competitor-based pricing means that competitor prices are the main influence on the price set, with the caveat of if there is strong competition in the market. With this in mind, it will be an optional factor that may be used to determine product pricing because Minine is new to the market and Minine may not be able to compete with or set the price above its competitors; Due to the economy-of-scale. However, Minine’s long term goal is possible to succeed. As Minine sells larger quantities to its market. This factor will significantly make its prices competitive.

However, the circle can be in any colors according to the mood of the collection so this would give the brand of variety and freshness.

150

Minine pricing approach is based on 2 factors; Cost-based pricing and Competitor-based pricing. Factor#1: Cost-based pricing is determined by adding a profit on top of the cost of producing the product. As Minine is a wholesale brand then it will mark-up from their cost of production from 55% to 65% and this will lead to the retail price. For example as in the detail below

According to the Minine concept, together with the inspirations that the founder has been collecting, the logo should be simple, contemporary, and organic. The logo started with a simple typeface, which is Helvetica Neue Light in black and white. The organic shapes conveys the silhouette of a woman’s soft and tender nature. The founder would like to make the name be more recognizable; but still be based on simplicity. So she chose a “dot” to be as the symbolic of the brand where it is located in the middle of an “E” which means that the brand covered all the needs of every woman. Eventually, the best result was with the first design, which was Version A.

6.3 PRICING STRATEGY

In conclusion, Minine needs some other way to attract its customers by using non-price methods to compete. For example, providing distinct products or better availability.

Marketing Plan

151

Pricing Structure Minine’s prince range is between $50 – $190. From the table below, all the prices are depend on materials and styles. Minine’s starting price and Top-of-the-line prices are most likely higher than their competitors. The reason behind this is because Minine still does not have sufficient power to be able to set prices above its competitors in the first stage of the operation (as mentioned above). However, they hope to make themselves known to the market by introducing a distinctive design, top-notch quality, with non-price methods .

Trade Shows

6.4 MARKETING CHANNELS

Minine’s main entry strategy to all the distributors and retailers are trade shows. So that it would be a great opportunity to join some advertising space within the trade shows. Goals: Minine wishes to have a greater on pre-fair and on-site exposure. Action: joining some advertising within the trade shows such as: · Trade Shows website · Standing Banner Advertising · Look Book that will be placed at the trade show concierge and Minine’s booth. . Retail Buyer Mailing list Measure of performance: To determine if the messages or advertisements that Minine put out is gaining traction with the public or consumer base. This has to be done by performing a public survey by Minine’s sale representative at the booth. Trade Shows Website

Regarding the price, Minine wants to positions themselves slightly on same level as their competitors. Minine has moderate price range that customers from mid to high income can buy.

Pricing Flexibilities As a wholesale brand, Minine has to sell its products to distributors or retailers. Thus, Minine would like to offer them the discounts and/or allowances depending on negotiations. This would include quantity discounts, seasonal discounts, shipping terms, and payment terms. For example: payment term would be a cash discount that is given for paying invoices on time. Minine hopes to attract more distributors and retailers with these illustrious offers.

152

Marketing Plan

153

Minine Trade Show Booth Visual Image

Booth Plan

154

Marketing Plan

3 D Perspective

Marketing Plan

Standing Banner Advertising

Direct Mail (Postcards)

Look Book

Approximated Annual Expenses: $1,100

Approximated Annual Expenses: $710

Approximated Annual Expenses: $800

Front Back

156

Marketing Plan

157

Stationary Package

Marketing Collaboration

Approximated Annual Expenses: $1,200

Minine x Youme As an up and coming wholesale brand in the market, a collaboration in marketing campaign with Youme (also a new online retailer) would provide the much needed exposure and project out a larger net in capturing a bigger customer base; Since Minine can’t compete with bigger more experienced brands with huge budgets for marketing, finding an ally among new brands that can mutually benefit from each other is key. This collaboration could be called “Minine X Youme”. Approximated Annual Expenses: shared cost

158

Marketing Plan

159

Online Channels Minine Informational Website

160

Marketing Plan

Social Media One of the important medium of communication these days is through online channels; Whether it be through Instagram, Youtube, Twitter or Facebook. Any of these would be cheap alternative for the brand, compared to other marketing strategies. Therefore, Minine can make sure that their advertisement will reach the customer base and eventually start a trend to buy Minine shoes will occur. Minine should keep updating and posting on Social Media daily and seasonally. This will keep Minineâ&#x20AC;&#x2122;s customers up to date about the products and give a platform for the average person to comment and reply to Minine directly. Minine is a wholesale brand so it needs to join and expose their brand together with the retailers that carry Minine products in their stores. By using social media to convert fans/followers into actual customers, it can maximize its ROI (Return of Investment) in social media platforms and customers can share things about the experiences that they get from using our products. As our goal is needed more â&#x20AC;&#x153;Call to Actionsâ&#x20AC;? (Like & Share) . The examples of Social Media: Facebook

Marketing Plan

161

Measure of performance: Facebook has a pages manager page that helps admins connect with their audience and keep up with activities all in one place. Engagement Rate = # of Likes + Shares on a given day X 100 Total # of Fans on a given day

Direct Emails

Moreover, the admins also can use the application that available thru cellphone call “Facebook Pages Manager” From this application will benefit us on connecting with the audience and keeping up with activity all in one place.

Approximated Annual Expenses: $120

Instagram. For a clearer view and easy approach to the audience, Instagram is a great marketing tool. Instagram lets you promote and advertise a product by posting pictures of products and promotion as well as interactive with the user base by asking them to “repost” Minine posts. Rewards can be given for reposts also; to give more incentive to people to interact as a community. According to Business Insider, they predict an increasing trend of Instagram usage in the future.

To inform client directly, Minine would be wise to create a mailing list with users that come to register with Minine. Direct Emails will help Minine approach its customer base more efficiency, able to inform consumers of new products, discounts, and general news that pertains to Minine.

Instagram

Business Insider states that Instagram grew its user base up to 150 million active users. Minine believes this marketing tools will increase exposure for Minine.

162

Marketing Plan

163

Retailers Minine will advertise monthly in the department stores lifestyle magazine, so that Minineâ&#x20AC;&#x2122;s end-use customer will keep up-to-date with promotions and products. In-house Lifestyle Magazine As a wholesale brand, Minine needs to focus on collaborating with retailers for further exposure of the Minine brand. By having a tangible magazine. it will cement Minine as a credible trendsetter of fashion and lifestyle that includes good restaurants, designs, and travels. Indirectly, this would benefit Minine, because those stores has it own customer database that they can send magazines to. Therefore, Minine can expand their advertising to reach customers that are not of a direct connection to Minine. Expenses: 1 page, 4C, ROP: $1,200 per issue (Circulation 50,000 books per month) Measure of performance: To know whether the Minine message or advertisements that they put into the magazines is of value, by having the sales representative conduct a survey to customer; asking how they came about to know about the brand. The example of In-house Lifestyle Magazines Premiere Magazines from Central Department: released monthly

E&P Magazines from The Mall Group: released monthly

Minine Sample Advertisement for In-house Lifestyle Magazines

164

Marketing Plan

t ign gP lPalna n MM a rakrektei n

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6.5 MARKETING BUDGET

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Marketing Plan

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L OC AT IO N

OR G A N IZ AT I O N

7.1 HEADQUARTER Minineâ&#x20AC;&#x2122;s headquarter will be located at Sukhumvit Business Park, located in Pra Khanong area of Bangkok, Thailand. This area has various office spaces for rent that can be customized to serve Minineâ&#x20AC;&#x2122;s working function and concept. The idea of which all designs and product development will be taken place in the heart of urban Bangkok. Sukhumvit Business Park is very convenient to commute to; as it located near BTS skytrain; as well as, expressways, airport, post offices, etc. Next page is the list of places in that vicinity.

Nearby BTS Sky Train Duration T r a n s p o r t a t i o n BTS Udomsuk Station 8 minutes Walking BTS Punnavitee Station 10 minutes Walking Nearby Express way Distance Duration Transportation Sukhumvit 62 2.3 km. 8 minutes Car Prakanong 1.7 km. 6 minutes Car Nearby Airport Distance Duration Transportation Suvarnabhumi Airport 29 km. 26 minutes Car Nearby Post Office Postal office

Distance 50 m.

Duration 4 minutes

Transportation Walking

Nearby Bank Distance Duration Transportation Siam Commercial Bank 600 m. 13 minutes Walking Thanachart Bank 50 m. 4 minutes Walking Krungsri Ayutthaya Bank 60 m. 5 minutes Walking UOB Bank 60 m. 5 minutes Walking Krungthai Bank 300 m 6 minutes Walking Kasikorn Bank Bank 750 m. 18 minutes Walking TMB Bank 2.1 km. 10 minutes Walking

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Location & Organization

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Office Facade

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Location & Organization

Office Facade

Location & Organization

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Floor Plan

3D Floor Plan

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Location & Organization

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Office

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Location & Organization

Sample Stock Room

Location & Organization

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CEO Corner 178

Location & Organization

Show Room Location & Organization

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7.2 COMPANY OWNERSHIP Minine is the sole proprietorship of Vorakamol Tantaratcharoen. Minine’s headquarter, located in Bangkok, will be operated by six key people; consisting of the Founder/Creative Director, Shoe Designer, Product Development Manager, Account Manager, Marketing Manager and Operations Manager. Working together as a team, Minine aims to have a linear organization hierarchy in which a casual working environment enables employees to gather ideas and share their experiences with morning meetings twice a week. Minine is a firm believer that every person with different backgrounds can be inspired by each other. At the heart of it all, Minine wants to make beautiful shoes and treat their employees well.

Hours of Operation Office Hours: Monday – Friday 9 AM – 6 PM Showroom Hours: By appointment Date Name of Holiday January 1st-2nd New Year’s Day February 14th Makha Bucha Day April 13rd to 15th Songkran Day (3 days) May 1st National Labor Day May 5th Coronation Day May 9th Royal Ploughing Cermony day July 28th Khao Phansa (Buddhist lent day) August 12nd H.M. the Queen’s Birthday December 5th H.M. the King’s Birthday December 10st Constitution Day December 31st New Year’s Eve

7.3 ORGANIZATION CHART

FOUNDER/CREATIVE DIRECTOR

ACCOUNT MANAGER

OPERATIONS MANAGER

PRODUCT DEVELOPMENT MANAGER

SHOE DESIGNER

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Location & Organization

7.4 ROLES & RESPONSIBILITIES Founder / Creative Director

Full-Time Employee Work Hours: 9.30AM – 5.00PM Wages: 60,000 THB / Month (approx. $1,700/Month) Responsibilities - Set the direction of the company and the brand - Supervises all managers and make all the executive decisions - Assures a work environment and support quality staff - Oversees the financial activities - Responsible for all the success and failure of the company

Product Development Manager

Full-Time Employee Work Hours: 9.00AM – 5.00PM Wages: 45,000 THB / Month (approx. $1,285/Month) Responsibilities -Works closely with Creative Director and Shoe Designer to design footwear - Identity, forecast, and translate trends for the brand - Research and define seasonal concepts - Develop and analyze all design that should be suitable for the brand and target customer base - Makes recommendations to solve problems and enhance the manufacturability of products - Source materials and look for suppliers domestically and internationally - Presents technical and administrative status of projects - Interface with Account Manager

Shoe Designer MARKETING MANAGER

Full-Time Employee Work Hours: 9.00AM – 5.00PM Wages: 35,000 THB / Month (approx. $1,000/Month) Responsibilities - Works closely with Product Development Manager and Creative Director to design footwear - Responsible for the conceptualization of a footwear line - Develops and creates illustrations, technical drawings, spec sheets and estimated cost sheets for new design concepts - Create presentation boards and give compelling visual presentation - Approve sample shoes for design aesthetics and fit

Account Manager

Full-Time Employee Work Hours: 9.00AM – 5.00PM Wages: 50,000 THB / Month (approx. $1,430/Month) Responsibilities - Cultivate new accounts and maintain existing accounts - Direct contact with wholesale accounts to oversee the processing of orders - Strategically execute sales plan and advertisements to achieve account profit ability goals - Review, analyze and report sales trends - Track and be responsible for shipment of orders - Communicate customer requirement to product development manager

Marketing Manager

Full-Time Employee Work Hours: 9.00AM – 5.00PM Wages: 38,000 THB / Month (approx. $1,085/Month) Responsibilities - Manage development and the execution of assigned product line strategies, market research, and product life cycles - Plan marketing budget and communication strategies - Maintain and monitor website and social media accounts - Cultivate strong relationship with the media

Operations Manager

Full-Time Employee Work Hours: 9.00AM – 5.00PM Wages: 40,000 THB / Month (approx. $1,142/Month) Responsibilities - Liaison for vendors and third party warehouses - Payroll management including accrued employee benefits - Handle daily office administrative tasks - Work closely with Creative Director on financial planning - Manage and oversee all financial management, planning, systems and controls - Manage inventory level

Location & Organization

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Employee Benefits Annual Bonus After Minine has concluded its business performance at the end of each year and it is considerably positive. Minine wants to give back to all the hard working men and women of the company by giving them an annual bonus. Typically, a company in Thailand will give about 1-2 months worth of the employee’s base salary. Minine hopes to nurture the employees to commit to and grow together with the company. Sick Leave / Maternity Leave According to the Labor Rules and Regulations in Thailand, An employee is allowed to have 30 days sick leave per year with pay. A medical certificate is needed, if sick leave is taken 3 or more consecutive days. A sickness from work-related injury does not count as absent through illness. A pregnant female employee is allowed maternity leave of not more than 90 days for each pregnancy with 45 days paid leave. Public Holiday An employee is entitled to 11 paid public holidays each year. If a public holiday falls on a weekly day off, the next working day must be granted as a paid holiday.

Vacation Minine allows an employee who works continuously for one year to have ten days vacation a year. Those vacations can be postponed or accumulated depending upon the negotiation between Minine and employee. Health Insurance / Health Checkup Minine provides health insurance, which covers $1,000 a year for every employee who is working with Minine for at least six months. Moreover, Minine will also provide an annual health checkup once a year; because Minine believe that with good health will come great work. Shopping Allowance / Employee Discount Minine wants their employees to be loyal and proud of the company and brand they are working so hard for, so Minine would provide shopping allowances or by simply giving them two pairs of shoes a year, it will be great for marketing and it will increase employee morale overall. Also staff discount for 50% (for the extra pairs). Minine believes this would encourage employee loyalty to the brand, as well as, to have more insight of customer’s perspective to Minine shoes.

Date Name of Holiday January 1st-2nd New Year’s Day February 14th Makha Bucha Day April 13rd to 15th Songkran Day (3 days) May 1st National Labor Day May 5th Coronation Day May 9th Royal Ploughing Cermony day July 28th Khao Phansa (Buddhist lent day) August 12nd H.M. the Queen’s Birthday December 5th H.M. the King’s Birthday December 10st Constitution Day December 31st New Year’s Evevv

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OP E R AT IO N P L A N

Product Plan

8.1 COLLECTION INFORMATION

To build its client base, Minine needs to keep all the information from every retailer, who has ordered from Minine. The form will help streamline client database input; So that in the end, data can be easily retrieved from the system. New Client Information Form

Minine has two collections annually and divides it into four deliveries per collection. The data below is Minine’s market dates, minimums, and delivery windows. Market Month Shoe Minimum Approx. Delivery Window Spring SEP, OCT 60 12/15 – 4/15 Fall FEB, MAR 60 5/15 – 10/30 Minine requires a minimum of 10 units per sku for shoes. The minimums listed above as per location. The shoe size runs from US 5 – 11; both full and half sizes unless otherwise noted.

Payment Information With all new accounts, Minine requires 50% deposit and must be paid at the time of order. The 50% balance is done when the merchandise is ready to be shipped. These terms will be put in place for the first few collections, typically for two to three collections. After this time Minine will reevaluate the payment terms based on the client feedback and credit bureau requirements.

Shipping Information

Purchase Order Form (P/O Form)

"Shoes that can take her to work and carry her home."

Customer Profile Form Distributor CORPORATE NAME

DBA NAME

OWNERS NAME

BUYERS NAME

ADDRESS

CITY

STATE

COUNTRY

ZIP

PHONE(S)

FAX

DATE

1. Type of Account:

Specialty

Year Business Established ______

Department Store

PO Date

PO #

Bill To: Name: Company Name: Address: Zip Code: Phone: Email Fax

Ship To: Name: Company Name: Address: Zip Code: Phone: Email Fax

Shipping Method: Description

Online

Shipping Date: Units

Delivery Date: Cost Per Unit

Total

At present location since ______

2. Are you currently doing business with Minine?

Yes

3. Check the type(s) of merchandise you currently carry in your store(s). Womens

Mens

Accessories

Footwear

4. List the key brands you currently carry in your store(s). + Credit references

Minine offers two types of shipping; Ex-Factory and FOB depending on the negotiation between Minine and clients.

5. Number of stores that you currently operate: 6. List your store locations. (Attach additional sheets, if necessary) Check stores where Minine will be carried:

Comments

Subtotal

50% Deposite

8.25%

Total Minine Decline

Minine Approval Please submit typed profile to: Minine.

Sriwattana Business Administration Technological College Alley, Bang Chak, Phra Khanong, Bangkok 10260, Thailand

*All applications must be submitted with interior and exterior photos.

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Operation Plan

Shipping + Balance Due Make all checks payable to Minine Women Footwear Sriwattana Business Administration Technological College Alley, Bang Chak, Phra Khanong, Bangkok 10260, Thailand Thank you for your business!

Operation Plan

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8.2 THIRD PARTY INFORMATION Warehouse

Freight Forwarder

Minine chooses to use a third party warehouse due to their specialization in distributing and stock management; so they can manage all the merchandise more efficiently than what Minine is capable of during its infancy. It is better for Minine to use the third party warehouse in the first two years of the operation. Thus, giving Minine more time to focus on development of its products.

Minine’s products will be manufactured in China, All China Cargo Thailand Co.,Ltd will responsible for assembling, consolidating and customs clearance of all the goods from factories in China to Minine’s warehouse in Thailand. Minine can choose the type of transportations, which are byground or by-sea calculated by weight (Kg.).

Ruamthavorn Transport Co., Ltd. will be Minine’s Third Party Warehouse Service Company that will provide Minine Warehousing, Distribution, and Fulfillment services to every retail stores in Thailand. Location: Telephone. Fax. Contact : E-mail : Website:

Table: Rates and Fees

33/9 Moo 1, Klongprawet, Lat krabang, Bangkok 10520 0-2737-9232-3, 0-2737-9239 0-2737-9231 K. Teeradech 081-8991007 theeradech@rttgroups.com www.rttgroups.com/en/index.php

Expenses estimated from the size of shoe box which is 11x30x20 cm. 1 Standard Pallet = 1.8 Cubic Meter 1 Pallet = Approximately 180 Pairs Shipping and Labor Fees Minimum 3 Pallet per month = $15 / pallet / month Minimum 5 Pallet per month = $14 / pallet / month *expenses above does not include shipping fee to retailers *does not included tax 7%

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Operation Plan

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F IN A N C IA L P L A N

Product Plan

9.1 FINANCIAL SUMMARY Startup Capital $170,946.50 Startup Loan $85,473.25 Wholesale Markup 60% Retail Markup 50% Average Price $110 Projected First Year Total Units Projected First Year Total Sales Projected First Year Total Profit Projected First Year Total Expenses

8,014 $444,125 5% $219,140

Startup Minine startup costs total $170,946.50, which will come from 2 sources of funding; 50% own capital (out of family poc ket) and 50% finance from SME Bank in Thailand. The first two majority of startup expenses comes from opening inventory and wages & salaries, which total to $60,766.50 and $22,800 respectively. The marketing startup costs $18,880, which majority is the expense from exhibiting tradeshows in August to October for S/S market and February, March for F/W market. The expenses include booth design, booth setup, advertising, and look books. Since Minine manufactures its product in China and if payments are on L/C, there will hardly be any account payables; but cash is still needed to open the L/C. The amount of $15,000 should be put in when calculating working capital/financing needs. The information in the table will derive how much is needed to run the operation smoothly. Startup Capital Spending Plan and Monthly Depreciation Expense Table

Expected Turnover Rate First Year: 3.68 Second Year: 4.16 Third Year: 5.16 Gross Margin First Year: 54.6% Second Year: 49% Third Year: 54% Sales Forecast Second Year: 466,331 Third Year: 503,638 192

Financial Plan

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Assortment Plan Minine’s assortment plan consists of two collections, which are Spring-Summer and Fall-Winter collection. With wholesale IMU at 60% and 50% mark up is the suggested retail price.

P&L

Assortment Plan Summary Table

Sales Minine projects year one percentage Gross Margin at 54.6%, a 5% growth for the second year, and 8% growth for the third year. The first year of sale is estimated from Minine’s primary retailer, which is a department store. Minine should push for them to purchase Minine products for 4 of their main stores for product and market testing; also calculated from three small retailers that may carry Minine to its store for a least the minimum. Regarding the mark down, Minine will offer mark down twice per year, which are at the end of the season of the collection. From this, Minine will have a higher turn over rate as well as to relieve stock level. However, Minine forecast net sales growth for second year and third year by 5% and 8% respectively, which is slightly conservative as Minine would like to find itself more respect and credibility within the industry, as well as, to make optimize shipping and managing operations of all the goods to its current retailers.

Total first year profit: First year percentage of profitability: Total first year expenses: First year percentage operating margin:

$22,335 5% $219,140 56.1%

Loan Payment Since Minine management does not intend to invest in fixed assets (factory, warehouse, office building) in the near future, a type of loan that Minine is taking out shouldn’t be long-term one. Therefore,50% or $85,473.25 of the capital will be partly from a SME bank with a 5-year medium term loan and an annual interest rate of 3.8% and partly from an overdraft facility; in the case of emergencies. In seeking a loan from the bank, Minine may have yet to place collateral to secure the loan. Minine’s founder owns a piece of property evaluated twice the amount of the 5 year-loan and monthly installments that maybe required by the bank to meet the requirements of the collateral needed for the loan.

First year Net Sales Total: $444,125 COGS Total: $201,450 Second Year Net Sales Total: $466,331 COGS Total: $213,933 Third Year Net Sales Total: $503,638 COGS Total: $231,595

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Financial Plan

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9.2 FUTURE GOALS

Short Terms Goals (1-3 Years)

Long Term Goals (3-5 years)

There are 2 main areas that Minine would like to focus in order to improve its business within 3 years.

- Finding manufacturers in Thailand - Expanding to Men’s collection

Firstly, to expand its market internationally and create a distribution channel through its own online store website under www.minine.com. Due to Minine planning to exhibit in a number of international trade shows in Hong Kong and the United States, Minine is confident that it could build a business relationship with partners from these events. In addition, an online channel will open doors of opportunity for Minine to closely connect with its consumer base; And apart from a higher margin and a lower investment than a brick and mortar store, Minine will get a vital benefit from directly interacting with its users.

Once the business is steady and consistent, it will be time to ramp up Minine’s direction and goals in two areas.

Secondly, put in place a plan with an emphasis on cost and risk reduction. Minine is expected to work with its manufacturers to reduce production cost as much as possible while maintaining product quality to increase its profit margin. Furthermore, Minine will be seeking out 2 more suppliers in order to spread its risk and eliminate sole dependency.

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Financial Plan

First and foremost, Minine shows some desire to find manufacturers in Thailand in order to support and strengthen the footwear industry in Thailand; and to give back to its country of origin. An improvement in efficiency by reducing lead time and increase quality control are also benefits that Minine will get from having its production in Thailand. Lastly, in order to capture a new market for business by expanding its customer base, Minine aims to offer men’s footwear collection. By having 5 years of expertise and experience in the footwear industry, as well as having success in applying a hybrid design to the women’s line, Minnie believes that it will have a high potential to become successful in this arena.

Financial Plan

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E D U CAT I O N VORAK AMOL TANTAR ATC HAR OEN

1.202.765.9383 tvorakamol@gmail.com

Academy of Art University, San Francisco, Sep 2013-Dec 2015 Master of Fine Arts, Fashion Merchandising GPA 3.85 Fudan University, Shanghai, China, Jul 2009 Non-degree program in Chinese language (Mandarin) Kasetsart University, Bangkok, Thailand, Mar 2009 B.E in Economics,International Economics

PROFESIONAL EXPERIENCE Frēda Salvador, Contemporary Footwear Company, Sausalito CA Product Development and Merchandising Intern, Jan 2015 - May 2015 . Developing footwear labels . Inventory control . Organizing seasonal sample sale

A P P E N D I X

Central Department Store Limited, Bangkok Thailand Import Brand Manager, Dec 2012 - Jul 2013 La Petite Robe di Chiara Boni . Responsible for the merchandise assortment for the brand . Analyzed sales trends, key items, and aged inventory to maximize profit . Inventory control Gucci Asisstant Brand Manager, Mar 2012 - Jul 2013 . Assisted in buying the seasonal mainline collections at Gucci’s headquarters in Milan and Florence . Set up the informational system for Gucci at Central Department Store . Analyzed the consumption and shipment data, comparing its results to establish objectives in order to assure the effectiveness of Gucci’s merchandise inventory system, including the logistic process and the identification of product Stock Keeping Unit (SKU)

ACTIVITIES . Marc Carmen Valvo Fashion Show, San Francisco, CA Fashion Show Dresser, Dec 2013 . Bridge Showroom for Fashion Market of Northern California (FMNC) Assisted the sales representative in showing the collections, Oct 2014

SKILLS Language: Computer: Textile: Fashion:

Thai, English, Mandarin Illustrator, Photoshop, Microsoft Office, JDA Silk-screen printing, Photographic screen printing, Hand painting, Heat transfer printing, Discharge, Burnout Product Development, Sourcing, Trend Analysis, Buying, Merchandising Planning, Fashion Marketing, Shoe Design Appendix

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10.1 FINANCIAL SHEETS ASSORTMENT PLAN Spring Summer

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Appendix

ASSORTMENT PLAN Spring Summer

Appendix

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ASSORTMENT PLAN Fall Winter

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Appendix

ASSORTMENT PLAN Fall Winter

Appendix

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SALES & INVENTORY FLOW YEAR 1

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3-YEAR MERCHANDISE INVENTORY FLOW SUMMARY

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CASH FLOW

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PROFIT & LOSS

Appendix

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10.2 SURVEY QUESTIONS & RESULTS LOAN PAYMENT

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