Diego Paramio Pérez

BAD and White Sum

maryMission Statement

TargetProductsLogisticsSupliersLocationWarehouseCostsCompetitorsMarketing Future Plan

BAD and White 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

BAD and White

Mission statem

ent

•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 qualityoPrice: Low/Medium (Affordable)oServices: Best internet service with good customer service.oDesign: Our designer´s department is very important working with freelance coolhunters

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

White line (products)

Sweaters Polos T-shirts Jeans Pants Suits Dresses Skirts Shoes Complements

BAD line (target)

• Young people (both genders)• Middle income level• Triple «S» : Skate, Snow & Surf• Sports appasionates• Adventurous: Seeking new

challenges• Self-improvement

BAD line (products)

• Hoddies • Pants• Shirts• T-shirts• Caps • Beanies• Shoes • Complements

Skateboard decks Surfboards Snowboards Supplier : (Europa Importación)

• 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

BAD

and White Suppliers

Rocky GaoTel: 86-51265293533Fax: 86-51265164362Mobile Phone: 86(0)13812691416Mailbox: rocky@well-apparel.com

Suzhou Well Apparel Corp

• 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

BAD and White Suppliers

Tianjin Franchel Garments Company

Limited

Contact Address :C4-414 Shi Dai Ao ChengCommercial Square Binshui West RoadTianjinChinaContact Person : Andrew ChenPhone : +86-22-5811 2600Fax : +86-22-5811 2606

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

BAD and White Location

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

BAD and White Location

BAD and White Logistics

Raw Materials

Suppliers

Wholesaler

Logistics

Storage

Manufacturing

Website

Shops

Customers

BAD and White W

arehouse

- 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

• Distribute our products from Suzhou and Tianjin to our main customers.

BAD and White 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+65.6463.9868asia@agilitylogistics.com Tarek Sultan

BAD and White 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

BAD and White W

orkforce Organigram

a

5 freelance coolhunters around the world in:

- New York-Milán -Londres-Bali-California

BAD and White W

orkforce & Fixed Costs

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

• We buy directly from our suppliers the product already done after a hard bargaining process including economies of scale.

BAD and White Product´s CostsSample 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

BAD and White Breakeven Point

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.

BAD Competitors

Future threats (Price)

Future threats (Quality)

• Street market• TaoBao

BAD 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.

White Competitors

Secondary

• Chinese brands• Uniclo• Street markets• TaoBao

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

• 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

BAD and White Future Plans

BAD and White

Any Questions