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ASHLEY HIMPEL GILLIAN WARE EMILY ECKARD LAUREN WERTH

PROFESSOR DONALD LEVY


GLOBAL SOURCING
FASM 420
CONTENTS
WHO WE ARE..................................................................4-5
MISSION & VISION.........................................................6-7
VALUES..............................................................................8-9
CODE OF CONDUCT.....................................................10-11
HUMAN RIGHTS POLICY.............................................12
INTERNAL & EXTERNAL FACTORS..........................13-14
VENDOR SCORE CARD................................................15
CUSTOMER PROFILES..................................................16-19
COMPETITOR ANALYSIS.............................................20-27
STORE LOCATION & LOGISTICS............................. 28-29
INSPIRATION................................................................. 30-31
PRODUCTS/STYLE/PRICING.................................... 32-41
WHY PINATEX?............................................................42-43
SUSTAINABILITY & ANIMAL WELFARE............... 44-45
COUNTRY ANALYSIS.................................................. 46-53
COUNTRY RANKING.................................................. 54-55
SUPPLIER ANALYSIS.................................................... 56-57
SUPPLIER RANKING....................................................58-59
LINE PLAN.......................................................................60-61
UNIT BREAKDOWN.....................................................62-63
STRATEGY PUBLICATION/CONCLUSION............64
FUTURE GROWTH PLANS.........................................65
VENDOR QUESTIONNAIRE......................................66-67
CONCLUSION................................................................68-69
RESOURCES....................................................................70-71
WHO WE ARE

Poppy & Iris is a modern chic accessories brand with a bohemian twist, that
offers a variety of handbags in different fabrics and colors, reaching an audience
of women 25-40 years old. Poppy & Iris only uses raw materials to aspire and
create fashionable pieces that aren’t harming to animals and the environment.
Our pineapple fibers is sustainably produced for use as an alternative to both
mass produced leather and polluting synthetic materials, offering a better choice
for our earth. Our brand aims to inspire other fashion conscious companies that
value animal rights and sustainability.

According to recent studies, there are certain drivers that push the handbag
market. The usage of handbags is predominant with the rise in the woman
workforce over the years has boosted growth. Recently, the handbag market
has had a growing affluence in the emerging economies and awareness of better
brands. Since we are targeting women ages from 25-40, our customers are able to
afford our higher price point and appreciate our brand ethics. Our clients want
strong, durable statement pieces that will last a lifetime, so our goal is to give them
just that.
MISSION
Our mission is to ensure every woman can feel unique and on
trend without feeling guilty.

VISION
The vision of Poppy & Iris is to inspire other fashion brands to
use raw materials and be cruelty free in their design making
process.
VALUES 1 Cruelty free and sustainable products. No animals are used in the
process of producing our handbags.

Poppy & Iris believes in bags that are strong personal pieces in a persons wardrobe and are cruelty
free. Cruelty free is a very important aspect to our company because it is wrong to use innocent

2
animals for human pleasure. Our brand also values the environment and does not participate in
the use of harsh chemicals and toxins in our manufacturing process. Reducing wasteful practices and being ethically and socially responsible.

3
On trend, statement pieces that will last a lifetime and always in season. At
Poppy & Iris want our women to feel confident and chic when wearing our
accessories.
CODE OF CONDUCT

I. FORCED LABOR: There shall not be any use of forced labor. VIII. HOURS OF WORK: Employees shall not be required to work more than the lesser of 60 hours per week
or the limits on regular and overtime hours allowed by law of the country of manufacture. Employees shall also
II. CHILD LABOR: No person shall be employed under the age of 16 working in any manufacturing companies. be entitled to at least one day of rest in every 7 day period.

III. HARASSMENT ABUSE & VIOLENCE: Vendors will provide a work environment free of harassment or abuse that IX. WOMEN’S, DISABLED, ETHNIC MINORITIES & U.S. VETERANS RIGHTS: All vendors will
is beneficial to employee productivity and safety. Vendors must not engage in or tolerate sexual harassment, indecent or ensure that workers who are women, disabled, or an ethnic minority receive equal treatment in all aspects of
threatening gestures, abusive tone or undesired physical contact. If a situation comes to our attention regarding abuse, there employment. All U.S employers will ensure that veterans receive equal treatment in all aspects of employment.
will be direct action taken immediately to prevent further abuse or harassment.
X. ENVIRONMENTAL: Vendors must have current environmental licenses in place in order for them to
IV. NON-DISCRIMINATION: Vendors will be employed on the basis of their ability to do the job, without regard or achieve our environmental standards. They must comply with regulations and standards applicable to their
discrimination to their gender, age, race, sex, religion, marital status, nationality, pregnancy, trade union or political affiliation. industry and as high of a standard as possible for the country of industry. Factories shall continuously monitor
their production process including those related to emissions, discharges and disposal of waste.
V. HEALTH & SAFETY: Vendors must provide proper health and safety information and ensure the working environment is
up to code in order to prevent any accidents and injuries. The vendors must take a proactive approach to health and safety by XI. QUALITY: Factories must have a clearly documented quality system and quality improvement plan.
offering training, policies, and procedures designed to protect worker health. That system must include in process and final finished goods audits and procedures that meet our company
standards. These audits will be performed by a trained QA staff person provided by the factory who has the
VI. CRUELTY FREE & SUSTAINABLE PRACTICES: There shall not be any animals harmed in the making of our handbags autonomy and support they need in order to provide an unbiased report on the quality of every shipment of
and vendors must comply with our standards regarding this issue. Vendors are required to be practicing sustainability in the finished goods.
production making process. This includes recycling, being energy efficient, reducing the amount of water being used, and
making reusable products for example. XII. COMPLIANCE WITH THE LAW: Suppliers and contractors must adhere strictly to all applicable laws
and regulations in effect where the company does business.
VII. WAGES & BENEFITS: Vendors shall recognize that wages are essential to meeting employee’s basic needs. They must pay
employees at least the minimum wage required by local law and employers shall provide mandated benefits as directed by the
laws of the country. All employees will be able to make a fair living wage with benefits.
HUMAN RIGHTS POLICY INTERNAL FACTORS

We are committed to ensuring every worker in our employment is treated with respect, fairness
and dignity. In every community we operate in, our workers are paid fairly and with consideration
to living wages. Poppy & Iris is guided by international human rights principles outlined in the
Universal Declaration of Human Rights. This applies to all entities owned by Poppy & Iris, and
1. Compliant with factory evaluations and surprise factory visits to audit the progress of the
entire manufacturing process overall and to ensure everyone is being held accountable
for their work. There will also be training programs which employees will sign off on
those falling outside of the UN jurisdiction are held to the same human rights standards. so they know the health and safety regulations, as well as how to work in the particular
factory.
We Enforce:



Respect for human life
Valuing diversity
2. Compliant with the code of ethics. Employers and employees will complete a self
evaluation that includes thorough details of factory conditions and sign our company’s
Code of Conduct Agreement. This will ensure that our suppliers and employees know
• Community engagement
our high standards and can be educated on our ethics and conduct code.
• Safe and Healthy workplace
• Workplace security

3. Vendor Score Card: This is an essential component when building relationships with
suppliers. This is a tool that we will use to measure the performance and effectiveness of
vendors and suppliers that provide goods and services to our business.
(See page 15 for more details)
EXTERNAL FACTORS Standards & Policies
ACHIEVEMENTS &
TOPICS AMBITIONS & GOALS ACTIONS 2018
RESULTS 2018

Limited incidents and


To remove all wrong doings of our Code Have every member working within the company
CODE OF ETHICS everyone has signed Code
of Ethics
Fair Trade is a contribution to the fight against poverty, climate change and global economic trained and sign our Code of Ethics.
of Ethics.
crises. The World Fair Trade Organization believes that trade must benefit the most vulnerable and
deliver sustainable livelihoods by developing opportunities especially for small and disadvantaged
producers. The WFTO facilitates membership applications, ensure members follow the 10
Working with 100% Vegan leather and
Principles of Fair Trade through the Guarantee System, and improve the Fair Trade Standard. making sure that every one of our
Team up with Pinatex and incorporate their Working with 100% vegan
The WFTO Fair Trade Standard is continuously monitored and improved by the Standard and SUSTAINABILITY COMMITMENT producers follows our sustainability
standards on limiting our carbon footprint. leather.
commitment to our brand and to our
Guarantee System Committee. This process entails a high level of transparency and traceability in customers.
their global supply chains and each quarter every certified business must also pay fees.

To establish a section that our Ethics are being met.


To make sure that everyone working
. Worker are working on a
HUMAN RIGHTS POLICY within our company is treated fairly and
living wage.
properly. Train overseas factory managers in human rights
standards
WRAP is a non-profit organization dedicated to promoting safe, lawful, humane, and
ethical manufacturing around the world through certification and education. The WRAP
To source our materials that are safe for There is no animals used in
certification program mainly focuses on the apparel, footwear and sewn products sectors. These ANIMAL WELFARE AND MATERIAL ETHICS our environment, animal free, and that all
Source from a company that is equally transparent
the production of our
and does not use any animal byproduct.
certifications can only be granted to individual production units. Holding companies, brands, items are traceable and transparent. goods.

and retailers are not eligible to apply. Attaining a WRAP certification involves a 5-step process
and begins with the production facility filing an initial application with WRAP, and paying the
registration fee. Then the facility will conduct a self-assessment of its compliance with WRAP’s To achieve a safe working environment for everyone
Completed unexpected store audits to
make sure that everyone was in
SECURITY POLICY Focus on safety in our factories and security for shoppers.
12 principles, which is followed by an additional audit conducted by one of their accredited that works under the Poppy and Iris umbrella. compliance.

monitoring partners. The report from that audit is sent to WRAP, where they decided whether
or not to issue a certification.
Restrict the use of chemical treated
We have partnered with
materials that are harmful and dangerous Use no extra land, water, fertilizers, or pesticides in
CHEMICAL RESTRICTIONS Pinatex use little to no
for our consumers, workers, and the making of the textile.
Poppy & Iris also want to support local marginalized farmers and give workers more control environment.
pesticides.

over their lives on a daily basis. The WFTO and WRAP enables good working conditions and

gives workers a chance to thrive in their job.
CUSTOMER PROFILE
MILLENNIAL

Name: Lauren Wilson


Age: 28
Education: Bachelors Degree
Income: Flexible income ($100k)
Resides in: San Francisco
Occupation: Style director at Harper’s Bazaar
Values: Structure and durability over price and her vintage Chanel bag
Hobbies: Hanging out with her close girl friends, shopping, hot yoga, blogging, writing
Other brands she wears: Free People, Revolve and Anthropologie
Wants: To travel the world, more brands to become sustainable/cruelty free

Lauren is constantly on the go, working on projects for Harper’s Bazaar and traveling
to style clients. She values strong, durable pieces that will be staples in her wardrobe.
Lauren also supports cruelty free brands that participate in sustainable practices. Her
biggest investment pieces are bags and shoe because she knows she’ll always have them.
With the hustle and bustle of living in California, and fashion constantly changing,
Lauren appreciates more valuable and neutral pieces that will never go out of style.
CUSTOMER PROFILE
GENERATION X

Name: Jaclyn Pierce


Age: 35
Education: Masters Degree at Boston University
Income: Flexible income ($175)
Resides in: Chicago
Occupation: Marketing director for Urban Decay cosmetics
Values: Family/friends, staple accessories and her work ethic
Hobbies: Working out, getting dinner with friends and colleagues, reading, knitting and hiking
Other brands she wears: Stella McCartney, Nordstrom and Anthropologie
Wants: To make people happy, and travel to Egypt one day
Loves: Sleeping in on her days off, her best friends, and chocolate

Jaclyn loves statement pieces that still look classic and season-less. She has a
few designer bags and is very fashion forward. She looks for innovative designs
and style but also wants quality and function. Her personal style is dressy, girly,
bohemian, and a bit modern. Jaclyn is goal oriented, self motivated and always
up for a challenge whether it’s her professional or personal life.
COMPETITOR ANALYSIS

The 3 competitors Poppy & Iris mostly resonates with are Stella McCartney,
Matt & Nat and Freedom of Animals. Our brand feels these competitors
share the same values, morals and ethics as us when it comes social and
environmental responsibility. They are all vegan handbag brands that practice
sustainability and having a strongly followed Code of Conduct. We believe
it is only right to treat our employees with the up-most respect, as well as
animals living on our planet. By being vegan and sustainable, Poppy & Iris
feels we are breaking the fast fashion cycle and providing exceptional value
to our customers. Our competitors have similar price ranges to Poppy & Iris,
with Stella McCartney being the most expensive, then Freedom of Animals
next and Matt & Nat being the most affordable option.
STELLA McCARTNEY

Stella McCartney’s commitment to sustainability is evident


throughout all her collections and is part of the brand’s ethos to
being a responsible, honest and modern company. Their suppliers
have spontaneous unannounced audit visits by the company to
ensure the regulations are being met. The brand respects the planet
as well as the people and animals on it, which is something Poppy &
Iris resonate with.

Stella McCartney is committed to becoming a zero deforestation


company within the next few years and does not use of any real
leather, skins, feathers or fur. All of their products are made from
recycled materials and is almost 100% sustainable all together.

1
MATT AND NAT

Matt and Nat is a vegan brand based out of Canada. They encourage up
cycling, visits their factories they are in compliance with regularly, and uses
lining made from 100% recycled plastic bottles. Matt and Nat just recently
introduced recycled bicycle tires to their collection as well. Each season
they continue to explore new innovative ways to remain sustainable and
Eco-friendly. The company is very transparent about their manufacturing
practices and socially responsible to the community. They build relationships
with the suppliers and workers in order to create a greater workplace culture.
Matt and Nat is constantly inspired by the textures and hues of nature, and to
better protect it, they aim to better their ways.

2
FREEDOM OF ANIMALS

Poppy & Iris is inspired by Freedom of Animals because they connect


consumers and companies that share a commitment to social and
environmental responsibility. FOA is a vegan company and fair labor is
mandatory. They are also a sustainable company, with everything handcrafted
and made in the United States. “Trade Not Aid” is a charity that employs
artisans and workers in developing countries in fair-practice settings, aiming
to nurture a demand for their skills and empower their communities to
thrive. They are 100% vegan and most of their accessories in this category
are produced via Eco-friendly means using the most sustainable synthetic
materials available. Their cross-body and totes ranges in price from $145 to
$240, which is similar to ours but a bit less expensive than Poppy & Iris.

3
STORE LOCATION & LOGISTICS

Store Location: Nashville, Tennessee


We chose Nashville to open our first store because it is a friendly, progressive and
pro-business city. Nashville still has a small town feel with a lot of small business that
are bringing their creativity and passion, creating a unique culture. Poppy & Iris believe
Nashville is the perfect spot to launch our store which is in the hub of food, music, culture,
and diversity. There is a lot of economic growth with businesses continuing to grow, and
expand. Overall, cities in the South continue to grow at a faster rate than any other U.S
region, according to a demographer in the Census Bureau’s population division.

Poppy & Iris is a brick and mortar store located in Nashville. Our product will be made
in the Philippines, and our hardware and lining will be imported from China and India.
From there, we will utilize FedEx to transport the orders from the Philippines to our store
location. Shipping rates will vary from state to state but our flat rate will be set at $8 USD.
INSPIRATION//STRUCTURE & COLOR
PRODUCT STYLES & PRICING

PRODUCT DESCRIPTION:
Piper Cross-body
OneSize
$275.00

FABRICS/COLOR:
PRODUCT DESCRIPTION:
Delilah Drawstring
OneSize
$350.00

FABRICS/COLOR:
PRODUCT DESCRIPTION:
Ainsley Tote
OneSize
$475.00

FABRICS/COLOR:
PRODUCT DESCRIPTION:

Willow Backpack
$575.00

FABRICS/COLOR:
PRODUCT DESCRIPTION:

Eloise Clutch
$200.00

FABRICS/COLOR:
WHY PINATEX?

Pinatex is a manufacturing company based in the Philippines. Their products


are made from sustainable sourced natural fibers, using no harmful chemicals or
animal products. The fiber used is made from pineapple leaves and can be easily
cut, stitched and embroidered. It is a non-woven textile, developed for use as a
low-impact alternative to leather and PVC/PU materials. The company currently
has 6 different colors including charcoal, natural, brown, paprika, gold and silver.
Pinatex will be adding extra colors in limited editions as they grow as a company.
They have also passed ISO international textile testing standards including
tear and tensile strength, flexing endurance, seam rupture, finish adhesion and
color fastness. Their company values align with Poppy & Iris and appreciate the
innovation and responsibility Pinatex embodies. They use no extra land, water,
fertilizers or pesticides are required to produce these fibers. The process involves
a patented pending technology that protects both the process and the finished
material. This opportunity provides new additional income for farmers while
creating a new industry for pineapple growing countries.
SUSTAINABILITY & ANIMAL WELFARE

More than 50 million animals suffer cruel deaths each year to benefit the fashion industry.
However, numerous brands are taking the step to become more sustainable and not use
animal products. Smaller labels are ignoring the seasonal fashion cycle, and producing fewer
garments per actual season. It’s important that avoiding fur and ensuring good standards are
upheld during leather and wool production.

Poppy & Iris thrives to be a leader in the fashion industry for sustainability and not to support
the use of animals. By using renewable, biodegradable resources, our company strives to
create products that require minimum amounts of land, water and waste to produce. We
feel it is simply wrong to use live animals for human pleasure, which is why we choose to be
animal and cruelty free.

THE LIFE CYCLE

This chart is found on the Pinatex website that


shows the process of how their materials are
made and the company’s transparency about
the entire process from start to finish.
COUNTRY ANALYSIS

Poppy & Iris is looking to source from countries that will have a variation of
factories that follow our Code of Conduct and share the same values. Our
company also wants to source from a factory that has high sustainability and
cruelty free standards. The three countries chosen were those that appeared
to have the best options for vegan leather, lining and hardware. These
countries selected were the Philippines, China and India. After choosing
the source from these countries, we evaluated them through our Country
Ranking system in order to understand where they stood in relation to other
countries. Our company has decided to import our hardware from China,
and our lining from India to the Philippines. The Philippines is where our
pineapple leaf fibers are made and developed.

THINGS TO CONSIDER:

TRADE
SUSTAINABLE COST LABOR LAWS LOCATION TECHNOLOGY MANUFACTURING
AGREEMENTS
China is a nation in East Asia with Beijing being its capital. The

CHINA were founded as a district and original nation in 1368. Their


population is 1.32 billion people as of 2016.

China is a key player in deciding where to source our products from.


They are the world’s largest exporter and they have the second largest Trade between the United States and China has grown substantially since China
amount of goods imported. They have continuously been a world leader began reforming its economy and liberalizing its trade in the late 1970’s. U.S and
in technology and innovations with electronics and machinery being their China trade rose from $2 billion in 1979 to $579 billion in 2016, making them the
largest export category. Chinese producers have invested in machinery United States second largest merchandising partner its third-largest export mar-
ket, and its biggest source of imports. In May 2017, the United States and China
and technology that improves quality and is environmentally conscious,
announced the “U.S.-China Trade Agreement which includes China market com-
and began shifting towards the use of all Eco-friendly materials. mitments on the U.S beef, biotechnology, products, credit rating services, electronic
payment services.

China’s issues of sustainability are linked to the industrial processes that


are supporting China’s economic development mode. The country does There are currently 907.5 million people in the labor force in China. THe
not see emissions as a problem that must be dealt with immediately. unemployment rate is 4% with an industrial growth rate at 6%. There as
With millions of people remaining in poverty, economic growth is still been an influence in increasing cost of raw materials, labor, energy and
the number one priority. China has a five year plan laid out and if they power. The labor force is migrating to better jobs and their customers
follow through on that, the country will see a 48% reduction in its ration are moving to buy from lower cost countries. Their labor laws have been
of CO2 emissions to GDP by 2020, compared to 2005 levels. As part of recently under reform, growing in union support and protection year after
its commitment to the Paris Agreementm by 2030, China has pledged to year. Poppy & Iris take labor laws and human rights into a considerable
reduce this figure by 60-65%. Beijing has also begun to crack down on amount before partnering with them.
fossil fuel subsidies, especially with respect to gas taxes.

Manufacturing in China cost significantly less due to the high saturation


The country does not have a set minimum wage as a whole, but of manufacturers and the huge-highly skilled labor force. Manufacturing
it is divided by region. The minimum wage just increased last growth is slowing more quickly than economic growth and research
year to 19.5 Chinese Yuan ($2.94 USD) per hour for part time suggest that the country is already losing some new factory investments
workers. The highest minimum wage for full-time workers is to lower cost locations such as Vietnman. The Chinese-owned and
2,300 yuan or $333USD which is the highest minimum wage in multinational manufacturers boost productivity, refine product-
teh country. development approaches and tame supply chain complexity. Thos who do
so can create a competitive advantage.
PHILIPPINES Located in the continent of Asia in the Western Pacific, the Philippines is the 73rd largest nation in the world with a
total area of 300,000 square kilometers, compromising more than 7,000 islands.

The Philippines is a very relationship based country, so building relationships with other countries
Philippines has made significant development in the technology field. The
important to them. The Philippines is a member of the WTO and trades with the EU, China,
country is using latest technology to grow their industry and agriculture.
Australia, New Zealand, India, Japan, and Korea. Although they do not participate trading with
Various IT developments have been introduced so most people have their
the United States, the Philippines does meet regularly with us under the support of a Trade and
own cell phones and internet facilities. This technological support is now
Investment Framework Agreement in aims to establish one. In a statement in 2017, the Office of
booming in terms of outsourcing. In addition, over five million mobile phone
the United States Trade Representative said officials from the Philippines and US agreed to work
users also use their phones as virtual wallets, which leads among devloping
together “to foster free, fair, and balanced trade between them” during the TIFA meeting. With six
medium to large size ports, there is room to continue successful imports and exports within the
The company we are partnering with for our handbags is located in the country. However, inadequate infrastructure, transportation and communication have inhibited
Philippines and has a positive and social impact with a low environmental faster industrial growth. More than 27 million Filipinos live in poverty (2015), therefore Poppy &
impact. The USA is expected to remain the single-largest market for locally Iris will work closely with the Philippines to help grow their economy through the increase of job
made apparel over the next few years. Apparel and accessories made from growth.
hemp, ramie and bamboo are also becoming popular among overseas buyers
because they are perceived as sustainable.

The Philippines is a country that has one of the biggest available pools of qualified workers in the world. With
Increasing demand from traditional markets is driving the growth of the more than 38 million people that belong to the workforce. This labor force is dominated by people that have an
garment industry in the Philippines. Philippines’ minimum wage is the eduacational background. The minimum age for employment is 18 years old and below that age is not allowed. Most
of these employed workers are in the field of services, followed by agriculture, and industry with the lowest percentile.
lowest amount a worker can be legally paid for his work. Their wage is set The proportion of employed working people in the Philippines constitutes 60% of the population, which is a relatively
by tripartite regional wage boards. Philippines daily wage is between $9- large percentage that belongs to the upper-third in the world ranking.
$10 USD with a yearly minimum wage is $2,053 USD. The new minimum
wage reates for non-agriculture jobs is $10 and agriculture, retail, and
manufacturing get $9. To ship a 20” container from the Philippines to the Manufacturing comprises more than half of the Philippines’s industrial sector and accounts for almost a quarter of
United States, it would cost around $1900 USD and take about a month to the country’s Gross Domestic Product (GDP). Manufacturing industries have higher employment, and promotes
get delivered. stronger inter-industry linkages, firm productivity, technological development and innovation. The growth of the
this industry improves the upgrading and diversification in the agricultural sector, as well as drives demand for
higher value-added services. Therefore, the Philippines is accelerating in the manufacturing competitiveness towards
achieving sustainable goals.
India is a leader in the field of science and technology in the world. They house some of the youngest entrepreneurs in the technology
industry throughout the world at an average age of 28 years old. India is considered the second most connected nation in comparison
INDIA
to China. Social media is a huge outlet used across India. The top three main platforms in the use are YouTube, Facebook and India does not have any trade agreements with
WhatsApp. India is working towards becoming a leader in the industrialization and technological development. India’s IT industry the United States and has no future plans of
cost competitiveness is 3-4 times cheaper than the U.S. India is gaining prominence in the IT world by setting up global firms centers implementing a trade agreement.
throughout the country. This has gained attention of major countries that want to invest in India’s IT industry.

India’s labor laws date back to almost a century. This


While per-capita emissions are amongst the lowest in the world, it is also the third biggest generator of emissions. Despite being the made it diffuicult to fire anyone without agreement
third largest economy in the world, India also has a larger number of people living below the international poverty line. Because between authorities, management and workers.
of this sheer size and rapid growth, sustainability is a challenge. However, it has shown leadership in combating climate change Tackling India’s labor practices is a main priority on
and meeting the Sustainable Developmental Goals, as reflected in many of its developmental schemes. Sustainability has always the Prime Minister’s list in order to revive economic
been a core component of India culture. Its philosophy and values have underscored a sustainable way of life. India and the world growth. Their labor laws hinder a lot of progress and
have a long and challenging way to go in dealing with environmental problems, but they are learning to live together in sustainable push for innovation. However, the country needs
communities. to start changing and correcting their employment
laws, but that could also potentially lead to political

Domestic workers, around 80% of whom are women, are employed by wealthier Indias to perform household chores, with low pay
and little or no job security. Rights group Anti-Slavery International said more than four million workers are employed in India in Manufacturing in India is expected to become the fifth
the unregulated domestic sector with wages typically two thirds lower than other industries. Many workers are not paid a fair amount largest manufacturing country in the world by the end
of money, physically and verbablly abused, and have no benefits or security. National labor unions are asking for a minimum monthly of year 2020. The government of India has taken several
salary of 15,000 Rupees or $231 USD, but the government has raised the wage to 18,000 Rupees or $277 USD. The absolute lowest initiatives to promote healthy environment for the
federal minimum wage in Sierra Leone, India is $0.03 an hour. growth of manufacturing sector in the country. Therefore,
India is an attractive hub for foreign investments in the
manufacturing sector. Several mobile phone, luxury
and automobile brands, among others have set up or
India is a South Asian country and 7th largest nation int he world. India shares land are looking to establish their manufacturing bases in
borders with 6 countries: China, Bangladesh, Burma, Nepal, Bhutan, and Pakistan. The the country. The manufacturing sector of India has the
total population is 1.3 millino people. It houses the second largest textile and apparel sector potential to reach $1 trillion USD by 2025.
for employment in the country.
COUNTRY RANKING

1.
PHILIPPINES CHINA INDIA
INDIA
GOVERNMENT 6 5 10
LOCATION 7 9 8
BUSINESS CLIMATE 6 7 8

2.
TEXTILE INDUSTRY 5 10 10
COSTS 8 10 3 CHINA
TRADE AGREEMENTS 4 0 0

3.
ECONOMICS 6 7 10
RISKS 5 4
7
SOCIAL STABILITY 4 4
4 PHILIPPINES
SOURCING GUIDELINES 5 6 7
TRAINED WORK FORCE 9 9 10

TOTAL 65 71 77
SUPPLIERS ANALYSIS

PINATEX: PHLIPPINES GUANGZHOU MEGA TRIMMING CO., LTD: CHINA


LEATHER FOR HANDBAGS AND DRAWSTRING ZIPPERS

We chose this country because the producer of our natural vegetable We chose this country and supplier because the supplier is strong in the
leather is produced only in the Philippians due to them only using production of zippers and they have a great lead time, while they maintain
the leaves of pineapples. The supplier only uses recycled pineapples strong work ethics within the factory. They do have restrictions on how
that can’t be sold or used. They limit the use of harmful chemicals products are made and the company works with clients to make sure that
to grow the pineapples so it reduces harm to the workers as well as there are safe labor regulations in place.
the products. They give working wages to their employees which all
match our CSR program at Poppy & Iris.

RUCHI TRADERS: INDIA


YAHUANGDA METAL PRODUCT FACTORY: CHINA PURSE LINING
SNAP BUTTONS
We choose this country and supplier due to the demand they have in making
We chose this supplier in China to produce our closures for our
lining for clothing and handbags. We chose this specific supplier because
handbags because they have their own design department. They also
they have built trust with other clients by having safe deliveries, several
have strict administration systems in place to make sure the working
payment options, fair labor practices within the factory. The fabric and dye
conditions for their workers are safe and healthy. They only have a
that they use are high quality and the dye is safe for all skin types. They have
small number of employees which allows for better treatment of the
a great client base, which builds trust and reassurance for our up and coming
employees in general. This supplier corresponds with Poppy & Iris’s
company.
CSR policy.
SUPPLIER RANKING

PINATEX YAHUANGDA GUANGZHOU RUCHI TRADERS

ABILITIES 5 8 8 7

CAPACITY 4 6 9 6
LEAD TIMES 3 6 7 6
QUALITY 4 5 8 5

CUSTOMERS 2 8 7 4

SOURCING GUIDELINES 7 6 5 4

SERVICES OFFERED 3 7 7 5

STRATEGIC OUTLOOK 8 5 5 4

TOTAL 36 51 56 41
LINE PLAN

Monthly Line Plan


Season Spring Total Fall Total TOTAL
Feb-18 March-18 April-18 May-18 June-18 July-18 August-18 Sept-18 Oct-18 Nov-18 Dec-18 Jan-18
Style Nbr Description Quantities Quantities Quantities Quantities Quantities Quantities Quantities Quantities Quantities Quantities Quantities Quantities
4257STV5T Piper Crossbody 250 300 325 350 350 300 1875 400 375 350 400 500 200 2225 4100
3OH85M7T4L Ainsley Tote 200 275 315 325 325 275 1715 350 350 325 375 450 175 2025 3740
3OH8GWGB91 Willow Backpack 175 200 250 200 200 150 1175 425 300 275 350 425 125 1900 3075
32F9GTVC4L Eloise Clutch 100 150 200 250 250 125 1075 350 250 200 250 550 100 1700 2775
3157PSAL4Y Delilah Drawstring 60 75 100 100 100 85 520 125 100 100 200 200 75 800 1320

TOTAL UNITS 785 1000 1190 1225 1225 935 6360 1650 1375 1250 1575 2125 675 8650 15010
UNIT BREAKDOWN

Unit Breakdown
Average
Style Nbr. Description % to total Total Units Monthly Units Cost per Unit Total Cost Retail per Unit Total Retail Tot Margin $ Marup %
4257STV5T Piper Crossbody 27% 4100 342 $ 110.00 $ 451,000.00 $ 275.00 $ 1,127,500.00 $ 165.00 0.6
3OH85M7T4L Ainsley Tote 25% 3740 312 $ 190.00 $ 710,600.00 $ 475.00 $ 1,776,500.00 $ 285.00 0.6
3OH8GWGB91 Willow Backpack 20% 3075 256 $ 230.00 $ 707,250.00 $ 575.00 $ 1,768,125.00 $ 345.00 0.6
32F9GTVC4L Eloise Clutch 18% 2775 231 $ 80.00 $ 18,500.00 $ 200.00 $ 555,000.00 $ 120.00 0.6
3157PSAL4Y Delilah Drawstring 9% 1320 110 $ 140.00 $ 184,800.00 $ 350.00 $ 462,000.00 $ 240.00 0.6
100% 15010 1251 $ 2,072,150.00 $ 5,689,125.00 $ 1,155.00
STRATEGY PUBLICATION & CONCLUSION FUTURE GROWTH PLANS

After analyzing the selection of our countries, it was easier to navigate to our final Cruelty free was the most important aspect for our brand. As we continue to grow we would
choice by following our own sourcing guidelines. The manufacturing of accessories like to give our customer more choice and control. Therefore, the ultimate goal is to launch
and apparel within these three countries is bountiful, along with this multitude comes the “Bag Bar” which would allow our customers to customize their own bag. As of right now,
skilled workforces, technologies, and knowledge of textiles. These qualities are most we only have four color options with one type of vegetable leather. We want our clients to be
important to Poppy & Iris because without this knowledge within our countries our able to choose everything from style, to material, to embellishments to color. This aspect will
product would not be up to the best standard. It was important for our company to create an overall experience and give our women the chance to create a handbag based on her
choose not only a country that fits our standards but as well as the factory within personal aesthetic.
that country who can abide by our code of conduct while maintaining a realistic and
profitable price for our order, while keeping in mind the well being of our factory
workers.

Through our research, Poppy & Iris found the three suppliers to be very transparent
about their manufacturing practices as well as treating their workers with respect.
These suppliers follow the same corporate responsibilities that our company follows
and we have full confidence in their abilities to do the best work with respect to their
employees and the environment.
Vendor’s Global Compliance Program –Vendor Questionnaire 4. How do you verify the factory employees ages?

1. Please identify the following that you consider to be part of Social Compliance?
(You may check more than one)
€ No Child Labor € On Time Shipments 5. Who conducts the audit – you and/or a 3rd party and how often do they occur?
€ Workplace Safety € No Discrimination
€ No Forced Labor € Wages
€ Working Hours € Product Meeting
Design Specifications 6. When social compliance issues are identified during your audit, how do you ensure they are getting corrected? Could you pro-
vide your audit results to Target upon request?
2. Can you explain the difference between Social Compliance and Quality
Assurance?

7. How do you verify the factory will work hours in accordance with local laws or Target’s Standards of Vendor Engagement require-
3. Do you conduct social compliance audits of your factories? ment of 60 hours (including overtime) per week, whichever is lower?
If yes, what does your social compliance audit consist of?
(Please check all that apply)

€ Factory Tour
€ Payroll/hours review
€ Employee Interviews
€ Management Interview
€ Personnel Records This questionnaire is what we will give suppliers in order to identify their
Review
labor laws and social compliances audits. This will help Poppy & Iris
€ Production Records
Review
determine if we want to partner with a certain manufacturer based on the
€ Reviewing Found Issues answers to our questions.
with Factory
Management
CONCLUSION ANALYSIS

The fashion and accessory industry has seen a global shift in consumer and social
expectations, and our overall strategy of creating cruelty free and sustainable accessories
aligns with that mindset. Providing a quality product made in a cruelty-free environment
was of the utmost importance to our company. Therefore, when researching sourcing
companies and manufacturers, we made sure they adhered to a transparent and ethical
business standard. We believe this will maximize our margins as the consumers will want
to support such a strong business model. Our lead times may be longer as we will not
accept quick work, nor do we weigh quick production over quality of human life. We
hope to expand our business to other cities and include customization to our product line.
This maximizes our opportunities for future growth as well as creating stronger brand
awareness. Poppy & Iris are proud to be sourcing our materials from the Philippines,
China and India. Although our products will be outsourced, we demand any company
associated with Poppy & Iris be held to our high standards, and our company will be
personally involved in making sure these standards are met.
RESOURCES
https://www.ananas-anam.com/ https://eluxemagazine.com/magazine/what-the-heck-is-vegan-leather/

https://panjiva.com/search/global-supplier?q=vegan+leather https://projectjust.com/brand_stellamccartney/

http://0-www.portal.euromonitor.com.library.scad.edu/portal/magazine/ https://www.theguardian.com/sustainable-business/blog/china-sustainability-economy-environment-ecology
index?PageTypeId=2&MenuCode=271&PageId=269&ImageUrl=%2Ficons%2Feconomies%2Fbusiness%20
dynamics_20px_black-09.png&Title=Business%20Dynamics https://www.fastcompany.com/659400/social-inequality-threatening-indias-economic-stability

https://www.fastcompany.com/3059190/this-gorgeous-sustainable-leather-is-made-from-pineapple-waste https://www.huffingtonpost.com/entry/vegan-leather-bag-brands_us_59e0f052e4b03a7be58048ea

https://mattandnat.com/

https://www.stellamccartney.com/us

https://www.shopethica.com/freedom-of-animals

https://www.pinterest.com/

https://www.wgsn.com/fashion/

https://panjiva.com/myPanjiva

http://www.socialwatch.org/node/17271

https://www.indiamart.com/proddetail/polyester-fermaish-lining-12939198897.html

http://bagaccessory.en.made-in-china.com/product/zBInWXTCZvkU/China-5-Silver-Corn-Teeth-Metal-Zipper.
html