Doing Business in China , Clothing company, Marketing,

1. Diego Paramio Pérez
Carlos Barril Peláez

2. BA
D
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White
Summary
Mission Statement
Target
Products
Logistics
Supliers
Location
Warehouse
Costs
Competitors
Marketing
Future Plan

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Intro
 Due to the amazing rocket in chinese economy we think it is a
good opportunity to enter in this emerging market.
 BAD line will try to introduce sliding sports culture for chinese
people (they suffer a lack of hobbies for their free time)
 White line will try to standarise the same fashion style all around
the country (chinese people are more and more aware of fashion
nowadays)
 Panda Logo : According to chinese tradition, also all sucessful
brands are based on animals

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Missionstatement
•Mission : We are a spanish clothing brand founded in 2012 in China with
two main goals: Introduce the triple «S» urbanwear (Surf, Skate, Snow)
and unify a general fashion for the multitude.
•Vision: We want to be a reference in the fashion sector in China. We also
want to be the pioneers in the skate, surf and snow sector. By 2015 be
want to open our own shops (10 in total)
•Values:
oEthics: - No infant workforce
- Environmentally friendly bags
- Treat workforce as family
oQuality: Medium quality
oPrice: Low/Medium (Affordable)
oServices: Best internet service with good customer service.
oDesign: Our designer´s department is very important working with
freelance coolhunters

5. White line (target)
• Male and Female lines
• From 16 to 50 years old
• Sensitive to latest fashion trends
• Price conscious
• From casual clothing to formal style

6. White line (products)
 Sweaters
 Polos
 T-shirts
 Jeans
 Pants
 Suits
 Dresses
 Skirts
 Shoes
 Complements

7. BAD line (target)
• Young people (both genders)
• Middle income level
• Triple «S» : Skate, Snow & Surf
• Sports appasionates
• Adventurous: Seeking new
challenges
• Self-improvement

8. BAD line (products)
• Hoddies
• Pants
• Shirts
• T-shirts
• Caps
• Beanies
• Shoes
• Complements
 Skateboard decks
 Surfboards
 Snowboards
 Supplier : (Europa Importación)

9. • They make all kind of clothes with our designs
• Excellent quality/price
• To distribute from the center to the south
• They work with many brands
• They are trustful and reliable
BA
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Suppliers
Rocky Gao
Tel: 86-51265293533
Fax: 86-51265164362
Mobile Phone: 86(0)13812691416
Mailbox: rocky@well-apparel.com
Suzhou Well Apparel
Corp

10. • They make all kind of clothes with our designs
• Excellent materials
• To distribute from the center to the north
• They have some products that Suzhou don´t
• Reliable
BA
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Suppliers
Tianjin Franchel
Garments Company
Limited
Contact Address :
C4-414 Shi Dai Ao Cheng
Commercial Square Binshui West Road
Tianjin
China
Contact Person : Andrew Chen
Phone : +86-22-5811 2600
Fax : +86-22-5811 2606

11. Headquearters & Warehouse in Suzhou:
– Only 1 ½ hours from Shanghai
– Shanghai´s special economy treaties (less taxes)
– It´s a midpoint from our shops
– Our main supplier is also in Suzhou
– China´s midpoint for a quick distribution
– Very good transport infrastructures
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Location

12. Warehouse in Tianjin:
– Only 2 hours from Beijing
– Beijing´s special economy treaties (less taxes)
– It´s a midpoint from our north customers
– Our second supplier is also in Tianjin
– Cheaper than Beijing
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Location

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Logistics
Raw Materials
Suppliers
Wholesaler
Logistics
Storage
Manufacturing
Website
Shops
Customers

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Warehouse
- Big Warehouse
-Need to stock most part of our production
-Concentration of sales in certain moments
• Reception
• Organization
• Picking
• Packaging
• Distribution
REGULATION STORE
• Avoiding stocks at the factory
• Output flow to large customers
• Full trailer and palletized inputs
and outputs

15. • Distribute our products from Suzhou and Tianjin to our main
customers.
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Logistics
WHY Agility ?
 Agility is one of the world’s leading providers of integrated logistics
with more than 22,000 employees in over 500 offices and 100
countries.
 Recognized brand that assure us reliability
 Logistics capabilities for warehousing and distribution worldwide
 They adapt to our needs, personal service.
Asia
+65.6463.9868
asia@agilitylogistics.comTarek Sultan

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Logistics
CENTRALIZATION
+ Lower safety stock
+ Lower fixed costs
+ Economies of scale
- Higher distribution costs
- May become too large for
efective management
INTERNATIONAL MANAGEMENT (Future)
Standarized Intermodal
Container
• USA
• Europe
• South America

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WorkforceOrganigrama
5 freelance coolhunters around
the world in:
- New York
-Milán
-Londres
-Bali
-California

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Workforce&FixedCosts
STAFF Nº Salary (rmb/year) Total RMB
Secretary / Customer service 2 40,000 80,000
Programmers 3 50,000 150,000
Designers 4 50,000 200,000
Accountant 1 60,000 60,000
Sales Men 6 30,000 180,000 + % sales
Visual Merchandiser 1 30,000 30,000 + incentiv.
Warehouse Managers 2 60,000 120,000
Warehouse Workers (10x2x2) 40 25,000 1,000,000
HQ + Warehouse Suzhou 1500 18 RMB / m2 (x12) 324,000
Warehouse Tianjin 1000 15 RMB / m2 (x12) 180,000
Marketing budget 1 500,000 500,000
TOTAL 2,824,000 RMB

19. • We buy directly from our suppliers the product already
done after a hard bargaining process including economies
of scale.
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Product´sCosts
Sample in RMB:
PRODUCT COST PRICE SELL PRICE MARGIN
T-SHIRT 10 40 30
POLO 15 50 35
JEANS 25 75 50
SK8 DECK 50 120 70
HODDIE 20 60 40
CAP 8 30 22
SHOES 40 100 60
* Prices including transport costs

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BreakevenPoint
236,000 RMB Fixed Cost + 100,000 Variable costs
________________________________________ = 1
336,000 RMB Total Sales
• TOTAL FIXED COSTS: 2,324,000 rmb / 12 Months: 194,000 aprx
• We have an aproximate margin of 336%.
So with a sale of aprox. 336,000 RMB between our wide range of
products we cover our costs. From that number of sales on we begin to
have profit.
We expect looses the first two years due to high marketing
investments, and from the third year on a yearly benefit of about
1,5 million RMB.

21. BA
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Competitors
Future threats (Price)
Future threats (Quality)
• Street market
• TaoBao

22. BA
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Marketing
 Creation of championships
 Presence in X-Games
 Partnership with Red-Bull
 Alana´s Blanchard sponshorship
 Viral Videos with Go Pro´s from our supporters
 Create a whole Community (Tribe) with the
help of social networks.

23. White
Competitors
Secondary
• Chinese brands
• Uniclo
• Street markets
• TaoBao

24. White
Marketing
 Catwalks in important cities
 Gerard´s Piqué Sponsorship ( FC Barcelona Player)
 Viral Video on main giant screens in city centres
 Promotions in Social Networks (Prices, discounts…)
 Billboards on Bus stops
 TV advertisement
CHINA
FIREWALL

25. • Open 10 own shops in: Shenyang, Dalian, Beijing, Tianjin,
Qingdao, Suzhou, Shanghai, Nanjing, Shenzhen, Guangzhou
• Open our market and distribute to USA, South America and
Europe with the same logisitcs company:
Warehouses in California, Germany and Brezil
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FuturePlans

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Any Questions