School of Creative Business
Pearl Academy, New Delhi
Project Report on Fashion Supply Chain Of
Submitted to: Mr. Avijit Ganguly, Mr. Yogesh Potalia, Mr Gaggan Bhatia Mrs. Swati Singh and Mrs. Mahima Gupta
Submitted by: Himali Lalwani and Isha Kapoor
B.A. (Honors) Fashion Business Management Level: 1 2014 – 2018 2018
Submitted on: 5th May, 2016
Acknowledgement The success and final outcome of this project required a lot of guidance and assistance from many people and we are extremely fortunate to have got g ot this all along the completion of our project work. At this juncture we feel deeply honoured in expressing our sincere gratitude to our mentors Mr. Avijit Ganguly, Mr. Yogesh Potalia, Mr Gaggan Bhatia, Mrs. Swati Singh and Mrs. Mahima Gupta for their guidance and constant supervision as well as providing us with the relevant information as and when required to help us complete the project on time. We are grateful to Vero Moda for taking out time from their hectic schedule to give us a glimpse of their store and letting us experience the practical world of retail business. We would also like to pay our regards and thanks to the library faculty at Pearl Academy, New Delhi for providing us with constant and all possible support whenever req uested for. Lastly, we thank all our family members and friends who have been constant source of support during the preparation of this project work.
Table of Contents
S.No.
Particulars
Page Number
PART -1 INTRODUCTION (1-6) 1 2 3 4 5 6 7
Bestseller Vero Moda Values Vision Facts and Figures Evolution and Milestones Product Category
2 3 3 4 4 5 6
BRANDING (7-12) 8 9 10 11 12
Segmentation, Targeting and Positioning of Vero Moda Customer Based Brand Equity Brand Attributes and Association Brand Elements 7 Ps of marketing
8-9 9 -10 11 11 12
RETAIL OPERATION AND CONSUMER BEHAVIOUR (13-21) 13 14 15 16 17 18 19 20 21 22 23
Retail Trade Area Store Area and Rent Retail format and Layout Licenses required Contribution to rent towards total sale Staff productivity Sales per square feet Store Profitability Organization Chart Merchandise mix and its relation to retail mix Consumer Behaviour
14-16 16 17 17 17 18 18 18-19 19 20-21 21
TEXTILES (22-27) 24
Fabric, Quality and Trend of Vero Moda
23-27
CORPORATE SOCIAL RESPONSIBILITY (28-29) 25
26 27 28
Corporate Social Responsibility
SUPPLY CHAIN AND COSTING (30-67) Technical Package – 1 1 - Shirt/ Shirt/ Blouse B louse – Black Black Technical Package – 2 2- Slim – Fit Fit Jeans Technical Package – 3 3- Crochet Lace Playsuit
29
31-42 43-55 56-67
PRODUCTION, LOGISTICS AND SHIPPING PLAN (68-75) 29 30
Shipping Plan of Shirt and Jeans Airway Plan of Lace Playsuit
69-71 72-74
31
Payment Methods
74-75
REFERENCING (76-78) 32
Referencing
77-78
BIBLIOGRAPHY(79-81) 33
Bibliography
ANNEXURE (82-84) PART – 2 2 (FABRIC FILE)
80-81
INTRODUCTION
[1]
(1) Bestseller Bestseller is a family-owned clothing and accessories company founded in Denmark in 1975 by Merete Bech Povlsen and Troels Holch Povlsen, providing fast affordable fashion for women, men, teenagers and children.
1.1 Brands Products are marketed and sold under the following brands: Jack & Jones Junarose Jaqueline De Yong Little Pieces Lp Boys Mamalicious Name It Limited Limited Noisy May Only Only Play Only & Sons Outfitters Nation Pieces Produkt Selected Vero Moda Vila Clothes Y.A.S
1.2 Markets Market for their products is 70 markets across most of Europe, the Middle East, Canada, India and globally via e-commerce. They have more than 3,000 branded chain stores across 38 markets worldwide and products are sold in approximate 15,000 multi-brand and departmental stores BESTSELLER has no ownership interests in the production chain but cooperates with selected suppliers primarily in China, India, Bangladesh, Turkey and Italy. Working with around 300 manufactures of garments and accessories.
[2]
(2) Vero Moda Launched in 1987, Vero Moda was the brainchild of Bestseller founder Troels Holch Povlsen, Vero Moda was one of the first brands to launch within the family- owned Bestseller Company, fast becoming the fashion choice for the girl’s wardrobe . Today Vero Moda is one of the largest brands in the company. company. The vision of the brand is to fulfil a need for good quality, on-trend clothing at affordable prices, always surprising our customers when they turn the hangtag.
Vero Moda is the brand of choice for the fashion-conscious, independent young woman who wants to dress well and pay less. Vero Moda offers quality, affordable and inspiring clothing for the young woman who wants to look good and have fun with her look in a trustworthy trustwort hy fashion-oriented context. At Vero Moda, the customer finds the right clothes at the right price and consequently the opportunity to follow fashion on her own terms. Today, Vero Moda has more than 1,000 stores in Europe, 1,600 stores in China, and experience rapid growth in both India and Canada. Vero Moda is represented in 45 countries with more than 3,800 point of sales through wholesale customers, shop-in- shops and some of Europe’s largest online retailers (Vero Moda)
(3) Values More than 30 years ago Troels Holch Povlsen, Bestseller's founder, phrased the 10 basic principles of the company. The principles were reliable re liable guidelines guidelines back then, t hen, and today they still express the essence of the Bestseller spirit. We are honest We are hard-working We are loyal We are co-operativ co -operativee We are business minded We want to see results results We want simple solutions We take nothing for granted We always keep our promises We want to be the t he best(Bestseller) best(Bestseller)
[3]
(4) Vision One World, One Philosophy, One Family is the symbol of the company culture in Bestseller. (Bestseller)
(5) Facts and Figures
Net turnover: $3.29 billion Result before tax: $150 million Total equity: $1.6 billion Number of employees: More than 15,000 (hereof 3,300 in Denmark) Number of chain stores: Approx. 3,000 (hereof 300 in Denmark) (Bestseller, 2014)
[4]
(6) Evolution and Milestones 29 years ago, Vero Moda was launched within the family owned best seller. (Divinetrash, (Divinetrash, Adm1370-veromoda.wikis Adm1370-veromoda.wikispaces) paces) • Troels Holch Povlsen takes over his uncle's uncle's clothing company in Ringkobing, Ringkobing,
1975
1979
Denmark.
• Company opens first retail stores and launches Bestseller Wholesale business.
• Launch of first international store in Norway; entry into children's clothing
1986
1987
with Exit brand.
• Launch of Vero Moda women's wear brand
• Creation of Bestseller Fashion Group as separate company bringing Bestseller
1996
2001
brands and designs brands designs to mainland mainland American American supermodel Christy Christy Turlin Turlington gton becomes becomes the face of Vero Vero Moda.
• Anders Holch Povlsen takes over as head of company.
• International expansion drive begins, and company opens more than 700
2005
2007
stores over two years. years.
• Vero Moda opens its first store in the UK. • Brazilian supermodel Gisele Bündchen became the face of Vero Moda.
• Vero Moda have 2600 stores all over the world, making making a turnover of 2.93
2014
billion billion in a year. year.
[5]
(7) Product Categories
Blazers Trousers Jackets
a d o M o r e V
Dresses
Jumpsuits And Playsuits T-Shirts
Tops Tunics Shirt Skirts Shorts Knitwear
Cardigans
Jeans And Jeggings
Product Categories Source: www.veromoda.in
[6]
BRANDING
[7]
(8) Segmentation, Targeting and Positioning of Vero Moda Vero Moda have its own strategies for the promotion of the brand and the brand however focuses on the new strategies that are being followed by for the purpose of raising the brand image in the market. Vero Moda has a firm position in its strategic marketing. Vero Moda coordinates six marketing campaigns each year to promote the brand and drive sales. These campaigns include pay-per-click advertising, advertising, social media, print, in- store material, the brand’s website, email, newsletters and SMS marketing. (Thinkwithgoogle) (Thinkwithgoogle) Vero Moda is a brand of choice of fashion conscious, independent young working women. (Fashionmodeldirectory)
8.1 Segmentation Vero Moda focuses on young working women. For Vero Moda ’s core consumer group the market can be segmented on the basis of following variables: Demographic, Demographic, Geographic, Geographic, Psychographic Psychographic and Behavioural Segmentation
Demographic Segmentation Vero Moda focuses on independent young women in the age group of 18 – 30. 30. These are the customers from high income group mostly residing in urban areas with a good educational level. (Shah, 2015) Geographic Segmentation Vero Moda Women apparels mainly focus on metropolitan cities from urban population. (Shah, 2015) Psychographic Segmentation Vero Moda’ customer enjoys shopping and socializing. They are aware of the latest trends in fashion and style. (Kulkarni, 2013) Behavioural Segmentation Vero Moda offers apparels for casual and party wear. (Shah, 2015) Customer of Vero Moda are occasional buyers. (Kulkarni, (Kulkarni, 2013)
8.2 Targeting Vero Moda target customer are the one with the latest trendin t rendingg style and also for the one who loves going with the brand name. The trending colors attract teens, formal clothes with great style attract corporate people. (Gala, 2014) Vero Moda’s strategy launches its outlet in high profile locations and provides customer with
turnover time of 3-4 weeks for its new collections co llections made available at a fraction fraction of the couture co uture cost.(Kulkarni, cost.(Kulkarni, 2013)
[8]
8.3 Positioning Point of Parity: Fast fashion player Point of Differentiation : Exclusive collection by Kangana Ranaut and Karan Johar.
The positioning for Vero Moda in the fashion industry is 'affordable fast fashion' and positioned positioned to a univ universal ersal consumer market. Vero Moda has become a world-class world-c lass brand, but the success of Vero Moda does not rely on the named designers to create classical or popular, however, it’s due to a close relationship of Vero Moda's brand positioning to "fast fashion."
Through the rapid imitation strategy, emphasis on the fast design, fast production, and quick sale and with the fastest speed in response to the market demand, as the representative of fast fashion. Therefore, in order to meet consumers' demand for this customer base, thus, Vero Moda creates a fast fashion model, delivering eight complete main collections a year plus several express collections in between and it is a great success under current market trends.
(9) Customer Based Brand Equity
Relationship
How are they?
REASONANCE
JUDGEMENT
FEELINGS
Loyalty
Reaction
IMAGERY
PERFORMANCE What am I?
POP and POD
SALIENCE Who am I?
Awareness
[9]
9.1 Salience Vero Moda was launched in 1987, it was the brainchild of Bestseller founder Troels Holch Povlsen, was one of the first brands to launch within the family- owned Bestseller Company. Today, Vero Moda has more than 1,000 stores in Europe, 1,600 stores in China, and experience rapid growth in in both both India and Canada. Canada . (VeroModa)
9.2 Performance
Reliability and Durability: Vero Moda is known for the quality of clothes that they sell Style and Design: It offers their customers the latest and the most fashionable items Service Effectiveness: it focus its resources on in-store services. Well received exchange policy which allows allows customer to get back full refunds for for purchased products according according to Vero Moda’s return policy. (Bibars, 2014)
9.3 Imagery
Values associated with Vero Moda includes fashion conscious, independent, young and affordable. affordable. (Bibars, 2014) Theme use of black and white which emphasises luxury/ sophistication. (Veromoda)
9.4 Judgement
Well-known brand with value of price, holding a great margin in the market. The quality of products is good in terms of comfort. (Bibars, 2014)
9.5 Feelings Vero Moda consumer’s reaction react ionss and emotional responses towards the brand is Fashionable,
presentable, elite elite and social approved. approved. (Bibars, 2014) 2014)
9.6 Resonance Vero Moda has loyal customer through constant purchases and has great online and offline customer reviews. (Bibars, 2014)
[10]
(10) Brand Attributes and Association 10.1 Brand Attributes Confidence, Confidence, trend t rend conscious, conscious, aff a ffordable, ordable, elegant and versatile (Petit, 2014 10.2 Brand Association
Danish
Exclusive Collection
Young Women
Vero Moda Value for Money
Karan Johar
Kangana Ranaut
Good Visual Merchandise
Brand Associations Source: www.veromoda.in
(11) Brand Elements
Brand Name: Vero Moda Colour: Black and white Tonality: It is fashion- oriented. Visuals used in display: Vero Moda works with different types of displays being newspaper, magazine, hoardings, blog and online.(Vero Moda)
Visuals of Vero Moda Source: www.veromoda.in
[11]
Marketing (12) 7 P’s of Marketing a) Product Blazer, Trouser, Jackets, Dresses, Tops, Shirt, Skirt, Dresses, Shorts, Knitwear, Jeans and Jeggings.
b) Place 1,000 stores in Europe, 1,600 stores in China and 67 stores in India
c) Price Medium to high prices (Rs.477- Rs.5695)
d) Promotion Internet and social media, fashion magazines, Advertisement on hoarders and campaigns
e) People
Troels Holch Povlsen is the founder of Vero Moda. There are around 15,000 employees working with Vero Moda.
f) Process
Vero Moda at present does not charge any shipping fees. They are offering ‘Free Shipping’ across all orders.
Vero Moda claims that all the response made for wrong delivery or any return or refund would be responded in 1-2 business days
g) Physical Evidence Vero Moda provides exclusive offers to its customers, VIP Events, gift card and Trend Information.
Gift Card Source: http://colnect.com/ VIP Event Card Source: http://sosueme.ie/
[12]
RETAIL OPERATIONS AND CONSUMER BEHAVIOUR
[13]
(13) Retail Trade Area The store of Vero Moda which was visited was located in Noida. Store: Vero Moda, Great India Place, Noida
Retail Trade Area
Primary
Secondary
Tertiary
Primary Area
Map of primary area of Great India Place Source: www.google.com
The Area ranges from 3-5 Miles M iles of the store. The markets and malls which are covered co vered in this region for for Vero Moda, Great India India Place are: 1. 2. 3. 4. 5. 6.
DLF Mall of India Sector – 18, 18, Market Indiraa Market Indir Wave Mall Noida Centre Stage Mall Westside
[14]
Secondary Secondary Area
Map of secondary area of Great India Place Source: www.google.com
The Area ranges from 5-8 miles of the store. The markets and malls which are covered co vered in this region for for Vero Moda, Great India India Place are: 1. 2. 3. 4. 5. 6. 7.
Shipra Mall Omaxe Park Plaza Jaipuria Jaipuria Sunrise Su nrise Plaza Mall Acharya Niketan Market Block C Market Vasundhara Enclave Sector-25 Market – Noida Noida
Tertiary Area
Map of Tertiary Area of Great India Place Source: www.google.com
[15]
The Area ranges from 8 – 15 15 miles and more of the store. The markets and malls which are covered in this region for Vero Moda, Great India Place are: 1. 2. 3. 4. 5. 6. 7. 8. 9.
Mahagun Metro Mall East Delhi Mall Pacific Mall Ansal Plaza V3S Mall Connaught Connaught Place Palika Bazaar Sarojini Nagar Lajpat Nagar
(14) Store Area and Rent The store area and rent of Vero Moda, Great India Place, Noida is as follow: Carpet area 2300 sq.ft
Selling Area 1783 sq.ft
Rent 13 Lakh per year
Vero Moda at Great India Place Source: Author
[16]
(15) Retail Format and Layout Location: Great India Place, Noida Specialty Store
It retails merchandise narrow in product lines but with a good depth within that area They specialize in a Women’s wear Offers very attentive and good customer service. It is located in high traffic area i.e. shopping mall.
Free Flow
Fixtures and Merchandise were grouped in Free-flowing patterns on the sales floor. This type of layout fits best in small stores in which customers can easily browse through.
(16) Licences Required 1) 2) 3) 4)
Shops & Establishments Trade Licenses Local Municipal Corporation Labour License/7 days working permission Ministry of Labour/Labour Commissioner ESIC Sub Code National / State ESIC Commissioner Commissioner Sky Signs-License for Hoarding & Display Windows (permission code) Local Municipal Corporation 5) Phonographic Phonographic Performance Ltd National National PPL 6) Certificate of Registration issued under the Employees State Insurance Act, 1948 for stores. ESIC Department 7) Indian Performing Performing Rights Society Nation Nat ional al IPRS
(17) Contribution to rent towards total sales ontribut ontribution ion to rent = Contributio Contribution n to rent rent =
Turnover Rent
,,, ,,
= 16.6 16.61% 1%
The turnover of the brand is 2crore 16 lakh per year. According to the above calculation, it can be observed that out of total turnover, rent contributes to 16.61%. This in turn means that contribution to rent towards sales is accurate and is not incurring losses
[17]
(18) Staff productivity Turnover Earnings per Employee = No. of Employees Earnings per Employee ( in a year) =
2,16,00,000 09
= Rs.24,00,000
The turnover of the brand is 2crore 16 lakh per year. According to the above calculation, it can be observed that out of the total no. of employees i.e. 09, each employee earns Rs. 24 lakh per year which implies each employee earns 2 lakh per month. This in turn means staff productivity is good.
(19) Sales per Square feet Total Sales in a month : Rs. 73 Lakhs Annual Sales : Rs.5.4 crore – 6 6 crore approx. Sales per sq. ft. in a month : Rs. 3173.9 per month
(20) Store profitability Cost Cost of of goo goods ds sold sold = Turn Turnov over er × 40% Cost Cost of of goods goods sold sold = 2,16,00, 2,16,00,000 000 ×
= Rs. Rs. 86,40, 86,40,00 000 0
Gross Gross Margin Margin = Turnov Turnover er − Cost Cost of of good goodss sold sold Gross Gross Ma Marg rgin in = 2,16, 2,16,00, 00,00 000 0 − 86,40, 86,40,00 000 0 = Rs.1,29,60, Rs.1,29,60,000 000 Expe Expens nses es = Turno Turnove verr × 35% Expe Expens nses es = 2,16, 2,16,00, 00,00 000 0 ×
35 100
= Rs. 75,60, 75,60,000 000
Net Net Profi Profitt = Gross Gross mar margi gin n − Expe Expens nses es [18]
Net Net Prof Profit it = 1,29, 1,29,60, 60,000 000 − 75,60, 75,60,00 000 0 = Rs. 54, 00, 000
According to the above calculation, it can be observed that out of the turnover made by the brand i.e. 2 crore 16 lakh the profit earned came out to be 54 lakh after all expenses and cost of goods sold. This in turn means that the store profitability of the store is very good.
(21) Organization Chart
CEO
Finance
HR
Retail
Legal
Manager
Staff - 1
Staff -2
Staff - 3
Vero Moda, Organisation Chart Source: Author
[19]
Merchandiser
IT
(22) Merchandise mix and its relation to retail mix 22.1 Length Women’s Wear – 14,400 14,400 pieces
22.2 Breadth Women’s Wear
Tops Bottoms Dresses
22.3 Depth
Trousers Size
XS, S, M, L, XL, XXL
Colour
Blue, Black, Grey, Brown, White
Dresses Size Colour
Tops Size Colour
Yellow, Black, Green, Turquoise, White, Rose
XS, S, M, L, XL, XXL Blue, Yellow, Yellow, Black, Green, Grey, Turquoise, Turquoise, Pink, Light Light Blue, White, White, Rose
Shirt Size Colour
XS, S, M, L, XL
XS, S, M, L, XL Blue, Black, Green, Green, Red, Turquoise, Turquoise, Pink, Light Light Blue, White White
Skirts Size Colour
XS, S, M, L, XL Blue, Black, Green, Green, Red, Turquoise, Turquoise, Pink, Light Light Blue, White White
[20]
Knitwear Size
XS, S, M, L, XL
Colour
Brown, White
(Vero Moda)
(23) Consumer Behaviour Consumer behaviour indicates how individuals, groups and organizations select, buy, use and dispose goods, services, ideas, or experiences to satisfy their needs and desires. Consumer behaviour behaviour is affected by several factors. factors. Marketers need to have a good knowledge of the factors affecting the consumer behaviour. The consumers of Vero Moda have a choice of buying both formal and informal wear in which the consumers make their choice keeping certain factors in mind they are as follow:
23.1 Age factor The age factor greatly influences influences the buying behavior. For example, teenagers t eenagers prefer trendy clothes i.e. being more of casual wear, whereas office executives prefer sober and formal clothing.
23.2 Gender The consumer behavior varies across gender. For example, girls prefer certain feminine colors such as pink, purple and peach, whereas boys go for blue, black and brown.
23.3 Income level Normally, Normally, the higher higher the income income level, level, the higher higher is the level level of spending and vice vice versa. But this may not be the case in developing countries.
23.4 Status in the society: Persons enjoying higher status in the society spend a good amount of money on luxury items such as premium brands.
23.5 Beliefs: A belief is a descriptive thought that a person holds about certain things or a brand. It may be based on knowledge, knowledge, opinion, opinion, faith, trust and and confidence. confidence. People may hold hold certain beliefs beliefs of certain brands/products. Beliefs develop brand images, which in turn can affect the buying behavior. behavior. (Chand, 2015) [21]
TEXTILES
[22]
(24) Fabric, Quality and Trend of Vero Moda 24.1 Lace Picks Lace dresses with delicate designs especially for evening frocks completed revealing cotton fabrics. 1. Brunch Look
Lace Dress along with fedora hat and a sling Fabric: 100% Cotton
Brunch Look Source: www.veromoda.in/blog/
2. Muted Loving Simple and yet styling combination of both with pastel colours and floral intricate designs and complete that dress with a tan bag and neckpiece for a classic look. Fabric: 100% Cotton
Muted Loving Source: www.veromoda.in/blog/
3. White Shift
This all white ensemble is sure to give a timeless classic look. To pair it with a studded footwear to give a stylish look altogether. Fabric: 100% Cotton White Shift Source: www.veromoda.in/blog/
[23]
24.2 Skirts 1. Printed Basic
Frilly skirt paired up with a white basic top tucked inside it is the perfect girly-girl outfit to sport during the day. It can be paired up with white white sneakers to complete complete the t he look. Fabric: 100% Viscose, Printed Printed Basic Source: www.veromoda.in/blog/
2. Skater Lover The skater silhouette is ensemble look. Fabric: Polyester
Skater Lover Source: www.veromoda.in/blog/
3. Boho chic This suede skirt gives a sporty look. Pair it up with a chic white top and a fringe bag to make this look perfect. Fabric: Polyester
Boho Chic Source: www.veromoda.in/blog/
[24]
24.3 Destroyed Denim 1. The Uber Chic Look
Nothing works magic magic quite like a simple pastel yellow tee teamed with a pair of gorgeous destroyed denims. A top that screams summer, this sleeveless with LOVE written over it is your perfect go-to for a lazy day with cool accessories like a white neck piece and a nd a pastel yellow sling bag and you’re
good to go. Uber Chic Look Source: www.veromoda.in/blog/
2.
The Cool Formal Look A pair of destroyed denims with a linen blazer and a simple white tee to go go along. along.
The Cool Formal Look Source: www.veromoda.in/blog/
3. The Timeless Floral Look
Florals are here to stay and rule the fashion roost for as long as they like! Keeping this in mind, a floral look was mandatory. A look teamed with this chic floral top with the same pair of destroyed denims for a casual look.
The Timeless Floral Look Source: www.veromoda.in/blog/
[25]
24.4 Corporate Dressing Dressing for work can really get on nerves as formal wear isn’t something that falls under
comfortable clothing or something that can be worn every day. However, some of the ladies being in the corporate field, don’t have much of an option whe n
it comes to work dressing. At Vero Moda, comfort meets fashion. We have the best of the apparel designed for the perfect corporate woman. woman.
1. Blazer Basic Blazers are a must have for every corporate woman and at Vero Moda they have an extensive collection of blazers to choose from. Pair up a solid blue blazer and pants. Finish with a white tote bag. Fabric: Denim
Blazer Basic Source: www.veromoda.in/blog/
2. Pastel Loving A pastel ensemble at work is always a good idea as it enhances the corporate factor really well. Team up white pants with a pastel blue top and add a white blazer. Wear darker colored pumps and you’re good to go.
Fabric – Polyester Polyester and Cotton mixed Pastel Loving Source: www.veromoda.in/blog/
3. Wrap Dress A wrap dress is always fun fu n to add a little twist to the work wardrobe. This solid blue wrap dress does justice to a corporate atmosphere and is also really comfortable to be in! Add a white handbag and some accessories to finish off. Fabric – Polyester Polyester
Wrap Dress Source: www.veromoda.in/blog/
[26]
24.5 Stripes 24.5 Stripes The one style that will always be in fashion is Stripes. Be it pretty horizontal ones or delicate vertical stripes, this trend is here to stay. Stripes can be worn in different ways on several occasions and still give a different look. From a horizontal striped monochrome dress to vertical striped shirts.
1. Monochrome Shorts Stylish monochrome striped shorts. Team it with a plain white tee and minim minimal al accessories to perfect the casual chic look. Fabric – Polyester Polyester Monochrome Shorts Source: www.veromoda.in/blog/
2. Horizontal Beauty Bold Stripes are in fashion, this deep navy horizontal striped shirt is perfect for a casual day out. Team it with white jeggingss or your regular denims and throw on a huge tote to jegging perfect the Summer look. Accessories like a charm bracelet or a hat will add to the look. Fabric – Polyester Polyester Horizontal Beauty Source: www.veromoda.in/blog/
3. Striped Skirt Black and white striped skirt. Team it with this top and this clash of stripes ensemble is perfect for your office party. Fabric – Polyester Polyester
Striped Skirt Source: www.veromoda.in/blog/
[27]
CORPORATE SOCIAL RESPONSIBILITY
[28]
(25) Corporate Social Responsibility of Vero Moda
Bestseller has arranged a world-wi wor ld-wide de charity day across a cross all its brands and countries. ‘One day to unite and do good’ is what it’s all about’ and Bestseller’s houses fashion brands Vero Moda, Only and Jack and Jones, donated an entire day’s revenue. Bestseller, India chose to go ahead with Project Nanhi Kali because they have identified identified that the literacy rate of the girl child is one of the gravest issues in India. Project Nanhi Kali empowers more than 100,000 girls across rural, tribal and urban regions in nine states of India by providing providing them with with high-quality high-quality education support support and resources. (sangam.com) (sangam.com) Every year, the Danish AIDS Foundation hands out awards in different categories to people or organizations that have made an impact in the fight against HIV and AIDS around the globe. In 2010, Business Award went to Vero Moda. Vero Moda has been a partner on the AIDS Foundation’s campaigns. Through creative, brave and co mmitted mmitted empl e mployees oyees as well we ll as a strong brand and retail chain, c hain, Vero Moda has contributed to generating means and putting putt ing focus on the AIDS cause. Long-term partnerships are crucial in order to create effective results and to make a real difference in the fight against HIV and AIDS. (bestseller.com)
Green Attitude is a green label, Vero Moda puts on the products that live up to the standard of less environmental impact. It's the guide for their customers so that they can find environmentally friendly products. The Green Attitude styles are generally the same products that they would normally have in their collections, but they have worked on reducing the environmental impact by using different fibres or different production proce pro cesse ssess in t he styles sty les labe lled lle d Gree Gr een n Attitu Att itude. de. Materials Used: 1. Recycled Polyester: Reuse polyester without degrading the quality of the fibers since the fibers are recreated via chemical proce sses.
2. Organic Cotton: Organic cotton is grown without the use of synthet synthet ic fertilisers and pesticides. 3. Oeko-Tex 100: Oeko-Tex 100 is a label that shows consumers that the clothes are free from harmful chemicals.
4.
Recycled Cotton: It is mainly made from production waste, but it is possib pos sible le to reuse re use fibr fibres es fro from m used u sed cloth clo thes es as well. wel l. Vero Ve ro Moda Mod a always use the largest possible amount of recycled cotton, at least 30% of cotton fibres.
[29]
SUPPLY CHAIN AND COSTING
[30]
(26)
TECHNICAL PACKAGE STYLE – 1 1 SHIRT/ BOUSE – BLACK BLACK
[31]
Construction Sheet Season
Spring – Summer Summer 2016
Date
16th August, 2015
Client Name
Isha Kapoor
Style
Straight
Size classification
XS,S,M,L
Technical Designer
Himali Lalwani
Style Description
Shirt/ Blouse Black
Product Category
Womenswear
Shirt/ Blouse - Black
[32]
Front View
Casual - oint Collar Button Front
Single needle Lock Stitch Armhole -DNL
Single needle Lock Stitch Functional pocket
Strip -SNL Inseam – 4 4 thread t hread overlock overlock
Hem - SNL
Back view
Yoke Bartack
Single needle lock stitch
Box pleat
[33]
Measurement Sheet Season
Spring – Summer Summer 2016
Date
16th August, 2015
Client Name
Isha Kapoor
Style
Straight
Size classification
XS,S,M,L
Technical Designer
Himali Lalwani
Style Description
Shirt/ Blouse – Black
Product Category
Womenswear
Shirt/ Blouse – Black Black Front View S. no.
Measurements (in cm)
M
1
HPS to bust
25
2
Bust girth
90
3
Nape to hip
60
4
Waist girth
86
5
Neck girth
36
6
Across shoulder
36
7
Front neck opening from nape
14
8
Armhole depth
44
9
Patch Pocket – length length and width
10,7
10
Front Strap - width
3
5
6
7 1
8
2 9
3, 4
[34]
Back View
1, 2 3
[35]
S. no.
Measurements (in cm)
M
1
Yoke (Centre)
4
2
Yoke (side)
2
3
Box pleat
2
Bills of Material
Image
Item
Season
Spring – Summer Summer 2016
Date
16th August, 2015
Client Name
Isha Kapoor
Style
Straight
Size classification
XS,S,M,L
Technical Designer
Himali Lalwani
Style Description
Shirt/ Blouse – Black
Product Category
Womenswear
Composition Co mposition
Color
Size/ Weight
Vendor
Unit price
Lead Time
MOQ
US $1.5/Meter
20 days
1500 Meters
US $3/Kg
20 days
1000 Meters
US $0.2 per piece
10 days
1000 piece
US $3.20
12 Days
Fabrics
Georgette
100% Polyester 75D*75D
Black
Poly Knit
100% Polyester 32*32
Black
58”
100 GSM
60”
125 GSM
Wujiang Shijie Textile Co., Ltd. China Hangzhou Kuangs Textile
Trims
Button
Plastic Round button with 4 holes
Black
Thread
100% Polyester, Twisted
Dyed to Match
18 Ligne
JC Basic Garment Accessories (Shanghai) Co., Limited
1000m /cone
Hangzhou Shuangjia Thread Co., Ltd.
[36]
500 Kilograms
Hang tags
Label
Wash Care
700g with lamination punch With circle black string
Poly taffeta
Poly taffeta
White
White and Black
White and Black
1.8*3.8
4cm*2.5cm 100gsm
80 gsm
JC Basic Garment Accessories (Shanghai) Co., Limited
Dongguan Jingyi Packing And Printing Co., Ltd. Dongguan Jingyi Packing And Printing Co., Ltd.
US $0.1/Piece
3 Days
US $ 0.08/ Piece
8 Days
1000 pcs
US $ 0.07 / Piece
8 Days
1000 pcs
US $ 0.03 / Piece
7 Days
5000 pcs
US $0.7/ Piece
10 Days
500 pcs
100 pcs
Packing Items
Poly bag
Plastic and Biodegradable
White
50-150mic thick
Carton
3 ply cardboard used
Brown
60X40X40
[37]
Anhui Province Taihu Ze Hong Plastic Co., Ltd. Qingdao Lianhe Jincai Packaging Co., Ltd.
COST SHEET
Style: Straight Style Description: Shirt/ Blouse - Black Size Range: XS,S,M,L Season: Spring - Summer 2016 Product Category: Women's Wear
S.No 1.
2.
3.
4.
5. 6. 7. 8.
Description Material Georgette Georgett e Poly Knit *1 Trims Button Thread Hangtag Label Wash Care Packing Polybag Carton Labor *2 Cutting Making Trimming and Packing Washing Testing Wastage (3%) Overhead Expenses (9%) Profit (10%) Total Cost MRP
Consumption
Rate per Unit
Total Cost $1.33
0.70 m 92 g
$1.05 $0.28 $0.527
1 24.23m 1 1 1
$0.20 $0.077 $0.1 $0.08 $ 0.07 $0.0073
1 1
$0.0003 $ 0.007 $0.77
$0.075 $0.51 $0.075 $0.08 $0.03 $0.79 $0.233 $0.295
[38]
$2.709 $2.952 $3.247 $3.247 $16.236
Remarks: Georgette fabric is difficult to handle so the labor cost will increase as it is a light weight fabric. Calculation: *1 For Poly Knit fabric [ [ + ] ] × [ [ + + + + ] ] × × ) ,
Width = Half Chest + Seam Allowance=45cm + 1 cm = 46cm Length=Body Length+ Length+ Sleeve Length+ Hem Fold + Seam Allowance = 60+0+1+1=62 =
=
××× , ,
, , , ,
=79.85 gram
Add 15% of wastage = 79.85cm *15%=91.82 g = 92 g *2 For Labor 10 Pieces per day = 30 min per piece So, Average = 60% 42 Min = 30 min + 40% Salary of an employee per month= Rs. 10,000 Salary of an employee per day = Rs.384 384 per day - 8 hrs i.e. i.e. 384/480min 0.8/ per min 42 min x 0.8 = Rs. 34 Total Labor Cost = 5+34+5=44 Total Labor Cost = $0.075 +$0.51+$0.075 = $0.66
[39]
[40]
PURCHASE ORDER
VERO MODA Fredskovvej 5, DK – 7330 7330 Brande, Denmark +49 3035105702
TO: Monika Garments A-182, Sector-63,Noida, Uttar Pradesh-201301 India +91-120-422290 P.O DATE 9/1/2015
SHIP TO: Vero Moda Berlin - Spandau Klosterstr. 3 13581 Berlin +49 3035105702
P.O. NUMBER: PO1203 45000 [The P.O. number must appear on all related correspondence, shipping papers, and invoices]
R E U I SI S I T I ON ON E R S H IP IP P E D V I A Ms. Himali Lalwani Sea
S.NO
DESCRIPTION
1.
Shirt/ Blouse Black
1.
Poly Bag
2.
Carton
SIZE
F . O. O. B . Mumbai Port QUANTITY
XS 500 S 1000 M 2500 L 1000 PACKING DETAILS 60X40X40 50 cm
T E R MS MS 100% by L/C at sight
COST PER TOTAL PIECE COST $3.247 $16,235 $3.247 $3.247 $3.247
60X40X40 50 cm
$0.03
$1.5
$0.7
$35
(Goods should be packed in the multiples of 50 numbers. All sizes should be packed separately.) (All boxes should have sea worthy packing) TOTAL Please send two copies of your invoice. Enter this order in accordance with the prices, terms, delivery method, and specifications listed above. Please notify us immediately immediately if you are unable to s hip as specified. Send all correspondence to: Vero Moda, Brande Denmark
9/1/2015
Signature:
[41]
$16,271.5
TIME AND ACTION CALENDAR Description
Due date
Actual date
Approved date
SAMPLING Fit
7th September,15
7th September,15
14th September,15
Size set
25th September,15
25th September,15
1st October,15
Pre. Production
25th November,15
25th November,15
2nd December,15
Top of production sample
18th December,15
18th December,15
25th December,15
Shipment sample
29th December,15
N.A
N.A
RAW MATERIAL Georgette
7th September,15
7th September,15
14th September,15
Poly Knit
7th September,15
7th September,15
14th September,15
First of Bulk – Georgette Georgette
5th November,15
5th November,15
12th November,15
First of Bulk- Poly Knit
5th November,15
5th November,15
12th November,15
Trims
16th October,15
16th October,15
23rd October,15
Labels
16th October,15
16th October,15
23rd October,15
TESTING FPT
5th November,15
5th November
12th November,15
GPT
18th December,15
18th December,15
25th December,15
Planned Cut Cut Date: 8th December December
Stitching: 9th December
Initial Inspection:-11th December
Finishing: 17th December
Final inspection – 26th 26th December
[42]
(27) TECHNICAL PACKAGE STYLE – 2 2 SLIM – FIT FIT JEANS
[43]
Construction Sheet Season
Spring – Summer Summer 2016
Date
16th August, 2015
Client Name
Isha Kapoor
Style
Solid
Size classification
26,27,28,29,30,31,3 Technical 2,33,34 Designer
Himali Lalwani
Style Description
Slim-fit jeans
Womenswear
Product Category
Blue Mid Rise Slim Jeans
[44]
Front View Button
Loops Coin Pocket
Waist Band -SNL Functional Pocket -DNL
DNL Thigh
Crotch
Side Seam
Inseam
(SNL)
Knee
Front Panel
SNL
Back view Yoke Single Needle Stitch
Double Needle Stitch
Patch Pocket Back Rise
Double Needle Bar
Stitch
Tacks
Patch Pocket
Spec Sheet [45]
Distance from:
Distance from:
Waist band: 22cm Inseam: 6cm Side seam:
Waist band: 19cm Inseam: 6cm Side seam: 8cm
Length of ribbed portion: 7cm
Distance from:
Distance from:
Waist band: 36cm Inseam: 6 cm Side seam: 8 cm
Waist band: 44 Inseam: 4cm Side seam: 4cm
Length of ribbed portion: 11cm
Length of ribbed portion: 4 cm
[46]
Measurement Sheet Season
Spring – Summer Summer 2016
Date
16th August, 2015
Client Name
Isha Kapoor
Style
Solid
Size classification
26,27,28,29,30,31,3 Technical 2,33,34 Designer
Himali Lalwani
Style Description
Slim-fit jeans
Womenswear
Product Category
S. no.
Measurements (in cm)
26
1
Waist band
76
2
Loops length (width)
5.2 (1)
3
Functional pocket length (width)
13 (12)
4
Coin pocket length (width)
9.5(5)
5
Crotch
19
6
Front panel (waist band height)
83 (3.5)
7
Thigh
22.5
8
Knee
15.5
9
Bottom hem
11.7
2
1
3
4 5 7
6 8
9
[47]
1, 2 3
S. no.
Measurements (in cm)
26
1
Yoke (centre)
4
2
Yoke (side)
2
3
Back rise
32
2
Patch Pocket
1
[48]
S. no.
Measurements (in cm)
26
1
Length
14.7
2
width
12.5
Bill of Material Season
Spring – Summer Summer 2016
Date
16th August, 2015
Client Name
Isha Kapoor
Style
Solid
Size classification
26,28,30,32,34
Technical Designer
Himali Lalwani
Style Description
Slim-fit jeans
Product Category
Womenswear
Fabrics Image
Item
Compositio n
Denim
100% Cotton 60D*44D
Twill Polyester
150D*150D
Color
Blue
Cream
Size/ Weight
Vendor
Unit price
Lead Time
MOQ
Changzhou Guoyu Textile Co., Ltd.
US $1.5/Meter
70 days
5000 Meters
Haining Jingsen Warp Knitting Co., Ltd.
US $1.8/Meter
25 days
3000 Meters
18 Ligne
JC Basic Garment Accessories (Shanghai) Co., Limited
US $0.2 per piece
10 days
1000 piece
1000m /cone
Hangzhou Shuangjia Thread Co., Ltd.
US $3.20
12 Days
500 Kilogra ms
58”
10 Oz
160 GSM
Trims
Button
Plastic Round button with with 4 holes
Thread
100% Polyester, Twisted
Black
Mustar d
[49]
Zipper
Brand Label
Hang tags
Label
Wash Care
Metal zipper with golden – brass brass teeth color
Leather
700g with lamination punch With circle black string string
Poly taffeta
Poly taffeta
DTM
Brown
White
White and Black White and Black
3”
Shenzhen Xinlongyao Zipper Co., Ltd.
US $0.3/ piece
14 Days
10 Pieces
3.5*9 cm
Dongguan Jingyi Packing And Printing Printing Co., Ltd.
US $ 0.09/ Piece
10 Days
500 pcs
1.8*3.8
JC Basic Garment Accessories (Shanghai) Co., Limited
US $0.1/Piece
3 Days
100 pcs
US $ 0.08/ Piece
8 Days
1000 pcs
US $ 0.07 / Piece
8 Days
1000 pcs
US $ 0.03 / Piece
7 Days
5000 pcs
10 Days
500 pcs
7.5 *2cm 100gsm
80 gsm
Dongguan Jingyi Packing And Printing Printing Co., Ltd. Dongguan Jingyi Packing And Printing Printing Co., Ltd.
Packing Items
Poly bag
Plastic and Biodegradabl e
Carton
3 ply cardboard used
White
Brown
50-150mic thick
Anhui Province Taihu Ze Hong Plastic Co., Ltd.
60X40X40
Qingdao Lianhe Jincai US $0.7/ Packaging Piece Co., Ltd.
[50]
COST SHEET
Style: Solid Style Description: Slim – Fit Fit Jeans Size Range: 26,28,30,32,34 Season: Spring - Summer 2016 Product category: Women's Wear
S.no 1.
2.
3.
4.
5. 6. 7.
Description Material Denim Twill Polyester Trims Button Thread Hangtag Brand Label Label Wash Care Packing Polybag Carton Labor *2 Cutting Making Trimming and Packing Washing Testing Wastage (10%) Overhead Expenses (9%)
Consumption
Rate per Unit
Total Cost $1.335
0.83 m 0.022 m2
$1.245 $0.09 $0.88
1 106.8m 1 1 1 1
$0.20 $0.34 $0.1 $0.09 $0.08 $ 0.07 $0.01825
1 1
$0.00075 $0.0175 $1.98
$0.15 $1 $0.08 $0.75 $0.08 $0.429 $0.425
[51]
$0.08 $4.722 $5.147
$0.514 Profit (10%) $5.66 Total Cost $5.66 MRP $28.30 Remarks: Ripped jeans will increase Labor and Overhead expenses. As Material would be wasted while ripping and ripping would be an extra labor effort so it will increase the labor cost.
8.
Calculation: *1 For Labor 5 Pieces per day = 60 min per piece So Average = 60% 84 Min = 60+40% Salary of an Employee per month = Rs. 10,000 Salary of an Employee per day = Rs.384 384 per day - 8hrs i.e. 384/480 min 0.8/ per min 84 min x 0.8 = Rs. 67 Total Labor Cost = Rs. 10 +Rs. 67 +Rs.5 = Rs.82 Total Labor Cost = $0.15+$ $0.15+$1+$0.08=$2.13 1+$0.08=$2.13
[52]
[53]
PURCHASE ORDER
VERO MODA Fredskovvej 5, DK – 7330 7330 Brande, Denmark +49 3035105702
TO: Monika Garments A-182, Sector-63,Noi S ector-63,Noida, da, Uttar Pradesh-201301 India +91-120-422290 P.O DATE 9/1/2015 S.NO
SHIP TO: Vero Moda Berlin - Spandau Klosterstr. 3 13581 Berlin +49 3035105702
P.O. NUMBER: PO1203 45000 [The P.O. number must appear on all related correspondence, shipping papers, and invoices]
R E U I SI S I T I ON ON E R S H I PP PP E D V I A Ms. Himali Lalwani Sea DESCRIPTION
1.
Slim – Fit Jeans
1.
Poly Bag
2.
Carton
SIZE
F . O. O. B . Mumbai Port QUANTITY
26 2000 28 1500 30 1000 32 800 34 700 PACKING DETAILS 60X40X40 150
T E R MS MS 100% by L/C at sight COST PER TOTAL COST PIECE $5.66 $33,960 $5.66 $5.66 $5.66 $5.66
60X40X40 150
$0.03
$4.5
$0.7
$105
(Goods should be packed in the multiples of 50 numbers. All sizes should be packed separately.) (All boxes should have sea worthy packing) TOTAL Please send two copies of your invoice. Enter this order in accordance with the prices, terms, delivery method, and specifications listed above. Please notify us immediately immediately if you are unable to s hip as specified. Send all correspondence to: 1.
Vero Moda, Brande Denmark
Signature:
[54]
$34,069.5
TIME AND ACTION CALENDAR Description
Due date
Actual date
Approved date
SAMPLING Fit
7th September,15
7th September,15
14th September,15
Size set
25th September,15
25th September,15
1st October,15
Pre. Production
25th November,15
25th November,15
2nd December,15
Top of production sample
18th December,15
18th December,15
25th December,15
Shipment sample
29th December,15
N.A
N.A
RAW MATERIAL Denim
7th September,15
7th September,15
14th September,15
Twill Polyester
7th September,15
7th September,15
14th September,15
First of Bulk – Denim Denim
5th November,15
5th November,15
12th November,15
First of BulkBulk- Twill Polyester
5th November,15
5th November,15
12th November,15
Trims
16th October,15
16th October,15
23rd October,15
Labels
16th October,15
16th October,15
23rd October,15
TESTING FPT
5th November,15
5th November,15
12th November,15
GPT
18th December,15
18th December,15
25th December,15
Planned Cut Cut Date: 8th December December
Stitching: 9th December
Initial Inspection:-11 th December Decembe r
Finishing: 17th December
Final inspection inspect ion – 26th 26th December
[55]
(28) TECHNICAL PACKAGE STYLE – 3 3 LACE PLAYSUIT
[56]
Construction Sheet Season
Spring – Summer Summer 2016
Date
16th August, 2015
Client Name
Isha Kapoor
Style
Solid
Size classification
XS,S,M,L,XL
Technical Designer
Himali Lalwani
Product Category
Womenswear
Style Description
Lace Playsuit
White Crochet Lace Playsuit
[57]
Front View
Strap (lock Stitch) Lock Stitch
Side Seam Elastic
5 thread overlock)
(5 thread overlock) Bottom hem
In Seam
(Three thread flat lock)
Back View
Strap Strap ( lock stitch)
Lock Stitch Button Slit
Elastic (5 thread overlock)
[58]
Measurement Sheet Season
Spring – Summer Summer 2016
Date
16th August, 2015
Client Name
Isha Kapoor
Style
Solid
Size classification
XS,S,M,L,XL
Technical Designer
Himali Lalwani
Product Category
Womenswear
Style Description
8
1 5 2 3
Lace Playsuit
S. no.
Measurements (in cm)
M
1
Bust
44
2
Waist
35
3
Hips
55
4
Pant length
31
5
Total length
61
6
Bottom hem
33
7
Crotch (front)
32
8
Straps
37
4 7
6
[59]
S. no.
Measurements (in cm)
26
1
Button slit
10
2
Crotch
36
1
2
[60]
Bills of Material Season
Spring – Summer Summer 2016
Date
16th August, 2015
Client Name
Isha Kapoor
Style
Solid
Size classification
XS,S,M,L,XL
Technical Designer
Himali Lalwani
Product Category
Womenswear
Lace Playsuit
Style Description
Fabrics Image
Item
Compositio n
Lace fabric
150D
Poly Knit
100% Polyester 32*32
Color
White
Black
Size/ Weight
Vendor
Unit price
Lead Time
MOQ
150 GSM
Fogang Shunya Textile Dyeing & Finishing Co., Ltd.
US $7.5/kg
14 Days
300 Yards
Hangzhou Kuangs Textile
US $3/kg
20 days
100 Meters
18 Ligne
JC Basic Garment Accessories (Shanghai) Co., Limited
US $0.2 per piece
10 days
1000 piece
1000m /cone
Hangzhou Shuangjia Thread Co., Ltd.
US $3.20
12 Days
500 Kilogra ms
60”
125 GSM
Trims
Button
Plastic Round button with with 4 holes
Thread
100% Polyester, Twisted
white
Dyed to Match
[61]
Braided elastic band
Strap Adjuster
Hang tags
Label
Wash Care
Spandex / Nylon
Plastic
700g with lamination punch With circle black string string
Poly taffeta
Poly taffeta
White
Silver coated
White
White and Black
White and Black
8mm
Dongguan Paihong Industry Co., Ltd. (china)
US $0.2/meter
7 days
20000 meters
0.5 cm
Dongguan Tops Fashion Apparel Co., Ltd.
US $0.1/pair
7 days
100 pairs
1.8*3.8
JC Basic Garment Accessories (Shanghai) Co., Limited
US $0.1/Piece
3 Days
100 pcs
Dongguan Jingyi Packing And Printing Printing Co., Ltd.
US $ 0.08/ Piece
8 Days
1000 pcs
Dongguan Jingyi Packing And Printing Printing Co., Ltd.
US $ 0.07 / Piece
8 Days
1000 pcs
50-150mic thick
Anhui Province Taihu Ze Hong Plastic Co., Ltd.
US $ 0.03 / Piece
7 Days
5000 pcs
60X40X40
Qingdao Lianhe Jincai US $0.7/ Packaging Piece Co., Ltd.
10 Days
500 pcs
7.5 *2cm 100gsm
80 gsm
Packing Items
Poly bag
Plastic and Biodegradabl e
Carton
3 ply cardboard used
White
Brown
[62]
COST SHEET
Style: Straight Style Description: Lace Playsuit Size Range: XS,S,M,L Season: Spring - Summer 2016 Product category: Women's Wear
S.no 1.
2.
3.
4.
5. 6.
Description Material Lace Fabric *1 Poly Knit *2 Trims Button Thread Strap Adjuster Braided Elastic band Hangtag Label Wash Care Packing Polybag Carton Labor *3 Cutting Making Trimming and Packing Washing Testing Wastage (3%)
Consumption
Rate per Unit
Total Cost $1.23
128g 92 g
$0.95 $0.28 $0.962
1 85.49m 1 0.72 m 1 1
1
$0.2 $0.272 $0.1 $0.14 $0.1
$0.08 $0.07 $0.195
1 1
$0.008 $0.187 $1.1
$0.15 $0.75 $0.08 $0.12 $0.03 $0.105
[63]
$0.03 $3.622
$0.326 Overhead Expenses $3.948 (9%) $0.394 8. Profit (10%) $4.342 Total Cost $4.342 MRP $21.7 Remarks: Lace fabric is difficult to handle so the labor cost will increase as it is a light weight fabric. 7.
Calculation: *1 For Lace Fabric [ [ + ] ] × [ [ + + + ] ] × × ) , ,
Width = Half Chest + Seam Allowance=45cm + 1 cm = 46cm Length=Body Length+ Length+ Sleeve Length+ Hem Fold + Seam Allowance = 60+0+1+1=62 =
=
××× , ,
, ,
=111.6g
Add 15% of wastage = 111.6 cm *15%=128.34 cm = 128g *2 For Poly Knit [ [ + ] ] × [ [ + + + ] ] × × ) , ,
Width = Half Chest + Seam Allowance=45cm + 1 cm = 46cm Length=Body Length+ Length+ Sleeve Length+ Hem Fold + Seam Allowance = 60+0+1+1=62 =
=
××× , ,
,
=79.856 g Add 15% of wastage = 79.85cm *15%=91.834 cm = 92 g
*3 For Labor [64]
8 Pieces per day = 45 min per piece So Average = 60% 63 Min = 45+40% Salary of an Employee per month = Rs. 10,000 Salary of an Employee per day = Rs.384 384 per day - 8hrs i.e. 384/480 min 0.8/ per min 63 min x 0.8 = Rs. 50 Total Labor Cost = Rs. 10 +Rs. 50 +Rs.5 = Rs.65 Total Labor Cost = $0.15+$0.75+$0.08=$0.98
[65]
PURCHASE ORDER
VERO MODA Fredskovvej 5, DK – 7330 7330 Brande, Denmark +49 3035105702
TO: Monika Garments A-182, Sector-63,Noi S ector-63,Noida, da, Uttar Pradesh-201301 India +91-120-422290 P.O DATE 9/1/2015
SHIP TO: Vero Moda Berlin - Spandau Klosterstr. 3 13581 Berlin +49 3035105702
P.O. NUMBER: PO1203 45000 [The P.O. number must appear on all related correspondence, shipping papers, and invoices]
R E U I SI S I T I ON ON E R S H I PP PP E D V I A Ms. Himali Lalwani Air
F . O. O. B . Mumbai Port
S.NO
DESCRIPTION
SIZE
QUANTITY
1.
Crochet Lace Playsuit Playsuit
XS S M L
800 600 1200 400
1.
Poly Bag
2.
Carton
T E R MS MS 100% by L/C at sight
COST PER TOTAL PIECE COST $4.342 $13,026 $4.342 $4.342 $4.342
PACKING DETAILS 60X40X40 80
60X40X40 80
$0.03
$4.5
$0.7
$105
(Goods should be packed in the multiples of 50 numbers. All sizes should be packed separately.) (All boxes should have air worthy packing) TOTAL 1.
Please send two copies of your invoice.
Enter this order in accordance with the prices, terms, delivery method, and specifications listed above. Please notify us immediately immediately if you are unable to s hip as specified. Send all correspondence to: Vero Moda, Brande Denmark Signature:
[66]
$13,135
TIME AND ACTION CALENDAR Description
Due date
Actual date
Approved date
SAMPLING Fit
7th September,15
7th September,15
14th September,15
Size set
25th September,15
25th September,15
1st October,15
Pre. Production
25th November,15
25th November,15
2nd December,15
Top of production sample
18th December,15
18th December,15
25th December,15
Shipment sample
29th December,15
N.A
N.A
RAW MATERIAL Lace
7th September,15
7th September,15
14th September,15
Poly Knit
7th September,15
7th September,15
14th September,15
First of Bulk – Lace Lace
5th November,15
5th November,15
12th November,15
First of Bulk- Poly Knit
5th November,15
5th November,15
12th November,15
Trims
16th October,15
16th October,15
23rd October,15
Labels
16th October,15
16th October,15
23rd October,15
TESTING FPT
5th November,15
5th November,15
12th November,15
GPT
18th December,15
18th December,15
25th December,15
Planned Cut Date: 8th December
Stitching: 9th December
Initial Inspection:-11th December
Finishing: 17th December
Final inspection – 26th 26th December
[67]
PRODUCTION, LOGISTICS AND SHIPPING PLAN
[68]
(29) Shipping Plan of Shirt and Jeans
Shipping Plan Source: www.searates.com
Exporter Name : Monika Garments A-182, Sector-63, Noida, Noida, Uttar Pradesh-201301 India +91-120-422290
Ship To: Vero Moda Berlin - Spandau Klosterstr. 3 13581 Berlin +49 3035105702
Packing Details
Total no. of Boxes – 200 200 Dimensions of Boxes – 200 200 @ 60cm X 40cm X 40cm Volumetric Weight of Each Box – 16kg 16kg Total Weight – 3200 3200 kgs Mode of Shipment – Sea Sea [69]
Type of Container – 4 40’ GP Cost of the Shipment – $50,341 $50,341
Activity wise logistic plan for movement of materials from Noida to Hamburg Seaport Germany in 40 ’ Container S.NO.
Activities
Mode
Transit Time (Days)
Freight (USD)
Freight (INR)
1
Pick up and Movement of materials from Monica Export Noida to Inland Container Depot (ICD) Tughlakabad
By Road
1
$182
Rs.12,114.9 Rs.12,114. 9
Custom Clearance of Materials at ICD Tughlakabad
-
1
$91
Rs.6,057.5 Rs.6,057. 5
3
Bill of Lading Fee
-
-
$45
Rs.2,995.4 Rs.2,995. 4
4
Movement of Material from ICD Tughlakabad to Nhava Sheva Port, Mumbai
By Train
6
$1084
Rs.72,156.95 Rs.72,156. 95
5
From Nheva Sheva Sea Port to Hamburg Sea Port
By Sea
28
$3300
Rs.2,19,666 Rs.2,19, 666
6
Custom Duty at berlin Sea Port @ 10% (Duty calculator)
-
1
$5504.3
Rs.3,66,396.2 Rs.3,66, 396.2
7
Custom Clearance Cost at Hamburg Sea Port @1%
-
2
$605.473
Rs.40,303.58 Rs.40,303. 58
8
Transportation Cost from Hamburg Sea Port to Vero Moda Store in Berlin
By Road
1
$1000
Rs.66,565.45 Rs.66,565. 45
40
$62,152.77
Rs.41,37,227.10
2
Total cost for 11,000 Garment on Delivery Duty Paid (DDP) Germany Basis
Documents for reference in annexure
[70]
Documents required for export of Goods 1. 2. 3. 4. 5. 6.
Invoice Packing List Certificate of Origin Bill of Lading Insurance Insurance Policy Letter of Credit
[71]
(30) Airway Plan of Lace Playsuit
Airway Plan Source: http://www.distancefromto.net/
Exporter Name : Monika Garments A-182, Sector-63, Noida, Noida, Uttar Pradesh-201301 India +91-120-422290
Ship To: Vero Moda Berlin - Spandau Klosterstr. 3 13581 Berlin +49 3035105702
Packing Details
Total no. of Boxes – 80 80 Dimensions of Boxes – 80 80 @ 60cm X 40cm X 40cm Volumetric Weight of Each Box – 16kg 16kg Total Weight – 1280 1280 kgs Mode of Shipment – Air Air Airport of Loading – Delhi Delhi Cost of the Shipment – $13,135 $13,135 [72]
Activity wise logistic plan for movement of materials from f rom Noida to Berlin Airport of Germany by Air S.NO.
Activities
Mode
Transit Time (Days)
Freight (USD)
Freight (INR)
1
Local Transportation Charge from Monika Garments Noida to Delhi Airport
By Road
1
$152
Rs.10,117.95 Rs.10,117. 95
Custom Clearance of Materials at Delhi Airport
-
1
$91
Rs.6,057.46 Rs.6,057. 46
3
Airway Bill of Charge
-
1
$15
Rs.998.48
4
Airfreight from Delhi Airport to Berlin Airport
By Air
4
$1,978
Rs.1,31,666.5 Rs.1,31, 666.5
Custom Duty at berlin Sea Port @ 10% (Dutycalculator)
-
1
$1537
Rs.1,02,311 Rs.1,02, 311
Custom Clearance Cost at Hamburg Sea Port @1%
-
2
$169
Rs.11,249.6 Rs.11,249. 6
Transportation Transportation Cost from Berlin Air Port to Vero Moda Store in Berlin
By Road
1
$500
Rs.33,282.72 Rs.33,282. 72
Total cost for 3000 Playsuit on Delivery Duty Paid (DDP) Germany Basis
11
$17577
Rs.11,70,020.91
2
5
6
7
Documents for reference in annexure
[73]
Documents required for export of Goods 1. 2. 3. 4. 5. 6.
Invoice Packing List Certificate of Origin Airway Bill Insurance Insurance Policy Letter of Credit
(31) Payment Terms Payment Terms in any business is a major part of sales contract. Terms of payment in exports and imports plays an important role in international business. There are two kinds of payment terms.
29.1 Letter of Credit Letter of Credit is a document from a bank (issuing bank), assuring that an exporter (beneficiary) will receive payment up to the amount of the letter of credit as long as certain Letter of Credit
LC at Sight
Usance
documentary delivery conditions have been met. In a situation where the buyer is unable to make payment on the purchase, the beneficiary may make a demand for payment on the bank. The bank will examine the Beneficiary's demand and if it complies with the terms of the letter of credit, will honor the demand. It is of two types:
Letter of Credit at Sight: At sight LC causes payment to be made immediately to the exporter upon presentation of the correct document from the exporter. Usance LC: It is a credit that is not paid immediately after presentation, but after an indicated period that is accepted by both buyer and seller. This is situation where seller allows buyer to pay after agreed agree d usance period on the basis of acceptance of documents document s and confirmation of the payment date (export.gov). (export.gov).
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29. 2 Telegraphic Telegraphic Transfer Here, the buyer sends the payment through their bank to seller’s bank immediately on the receipt of all the documents as per order. In case of TT, it is commitment between buyer and seller only not between any banks (export.gov). Documents required:
Financial documents — Bill Bill of Exchange Commercial documents — Invoice, Invoice, Packing List and Certificate of Origin Shipping documents — Bill Bill of Lading, Airway Bill Official documents — License License Insurance documents — Insurance Insurance Policy or Certificate
[75]
REFERENCING
[76]
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KULKARNI.P (2013). Vero Moda [Online] Available from: https://prezi.com/bf0dmc5f https://prezi .com/bf0dmc5fp5rj/unti p5rj/untitled-prezi/ tled-prezi/ [Accessed:2nd May 2016] PETIT E. (2013) Brand Book Vero Moda. [Online]. Available from: https://issuu.com/eli https://i ssuu.com/elinepetit/docs/bap nepetit/docs/bap_brandbook_p _brandbook_petit_eline. etit_eline. [Accessed: 14th April, 2016] ROSENAU, J.A. and WILSON, D.L (2001). Apparel Merchandising: Merchandising: The Line starts here. New York: Fairchild Fairchild Publication
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acros s all its SANGAM. (2015). Bestseller Group to organize world-wide charity day across Brands and Countries ‘One day to unite and do good’ on 10th April [Online] Available from: http://www.sangam.org.in/bes http://www.san gam.org.in/bestseller-group-to-o tseller-group-to-organize-worl rganize-world-wide-chari d-wide-charity-day-across-all ty-day-across-all-its-brands-and-countri its-brand s-and-countries-one-day-to-uni es-one-day-to-unite-and-do-goodte-and-do-good-on-10th-ap on-10th-april.html ril.html [Accessed: 1 st May 2016].
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ANNEXURE
[82]