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Vallé The collision of crafted artisan clothes and manufactured streetwear

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ValléThe collision of crafted artisan clothes and manufactured streetwear

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Mission statement: Our objective is to quickly drop new lines of the latest trends using high quality material. We plan to give back to communities.

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The Problems

There are 3 main problems we would like to solve.

The first problems to identify are within our own industry

Then we can tackle problems at large

● Comfortable high-end clothing

● Challenging the use of sweatshops

● Take steps to solve for global poverty

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Comfort in high-end apparel

Layered clothing is popular trend but it creates a lot of weight and heat. Many consumers elect to wear casual apparel because it is comfortable

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Challenging the use of sweatshops

The explosion of the Bangladesh factory where 29 were killed and hundreds injured. Was the product of unfit working standards.

Very few brands are manufactured with a Fair Trade Label

Only 1% of the trillion dollar fashion industry is ethically made clothing. Only a few brands can be nationally found.

Source: Business Insiders

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Almost 2/3rds of those living in poverty can be found in Asia, the central hub for sweatshops

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Global Poverty, Giving to Charities

● 3 billion people in the world survive on less than $2.50 a day or less.

●● Some 1.1 billion people in developing

countries have inadequate access to water, and 2.6 billion lack basic sanitation.

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The solution

We can be the ones to solve the issues because we will use our clothing as a platform to educate and challenge the hardships

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The Solution

The solutions that can be directly solved by us are the issues of comfort, quality and the use of sweatshops.

Comfort

Our clothes will be made using high-quality materials and go through a quality control center made of real people. Our clothing will be tailored around the idea of layered clothing.

Sweatshops

We pledge that 100% of our clothing will be locally sourced and manufactured to give back and revitalize our communities

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Sweatshops

Many people use sweatshops to minimize costs and maximize profits. We will not use sweatshops and sport a Fair Trade label to increase sales.

Our sales will increase by not using sweatshops and being certified.

A Fair Trade retailer, Fair Indigo, had a 35 percent rise in revenue (compared with last year) following the disaster. That was in line with the 38 percent revenue surge it had during the November-December season, following the factory fire. We can depend on these types of sales increases with the our clothing being locally sourced and manufactured.

We will follow the presidential agenda in creating jobs for Americans by locating the in Salt Lake Valley

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Giving to communities

We will provide a scratch tag on every article of clothing that has a code that can be redeemed on our website for the customer to choose a program of their choice to donate to.

We plan to follow the way TOMS and Lokai has paved the way for.

We will donate 10% of total profits, and record and site exactly where those dollars go to provide the maximum customer involvement.

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The team“Why are we the ones to solve the problem we identified?”

Caleb ChristensenHas a passion for

streetwear, is deeply moved by TOMS and Lokai.

Wants to follow their model.

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Who is the customer? We are trying to help with known world problems

such as poverty; and that is how we believe we will attract our target market. We firstly want to target young parents as our primary market. The parents that we will be advertising to, are very hands on, self motivated people. We conclude that parents like this, are typically ranked in a higher bracket when it comes to income.

A. Primary MarketDemographics Age: 20-80, $600,000-2,000,000

Very rich wealthy peoplePsychographics very confident, trend setters

Desire to help people in need

Secondary MarketClothing is a necessity for all. However many

people indulge with their clothing, cultural expectation says they need the most popular clothing for whatever is in style. This is the secondary platform for our sales, we plan to be the ‘branded clothing to own’ for everyone 10-30. According to the NPD, women spend about 80% of all money that goes for streetwear. They control 96% of the dollars spent on their own clothes, 93% of those spent on children's, and 60% of those spent for men's sports apparel.

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How to reach the customer

We will use local photographer Eudo Quiroz, who works with local rap artists, to connect with people who follow the Urban and Streetwear trends.

We plan to market on social media, in fashion bloggers, and fashion magazines such as Hypebeast and Vice

We are just trying to help with known world problems such as poverty; and that is how we believe we will attract our target market.

Our first channel we sell through is our online store focusing on Business to Consumer selling. We’ve done studies on our target market. Mintel’s Online Shopping US 2015 report reveals that over two thirds (69 percent) of US online adults shop online at least monthly

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Milestones

Where we are in the process and what’s left to tackle

March 2017Finish creating our line, different prototypes and styles

April 2017Begin building inventory and manufacturer connections

May 2017Create our website to display our product

June 2017Begin Marketing Strategy, create a lookbook

August 2017Release the Fall/Winter Clothing Line

Jan Feb Mar Apr May Jun Jul Aug Sept Oct Nov Dec

Following the release we will analyze sales,

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Revenue model

We plan on selling online directly to the consumer to maximize profits.

After we have a established an image we will move to retailers and a flagship store

Manufacturer

Online Store

Consumer

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The Templates

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More Templates

The templates shown are two master templates that can be used to create more shirts of the same cut. Any changes can be made to sizing, cuffs or ribbing

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Extended Thermal Tank Top. Missing from the prototypes are a logo and tags.

Lightweight ribbingExtended hemline for layering

Heavier fabric for winter

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Extended Thermal Tank Top. Missing from the prototypes are a logo and tags.

Lightweight ribbing

Extended hemline for layering

Heavier fabric for winter

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Thrashed Oversized Long Sleeve Missing from prototypes are tags, logo, embroidery, and topstitch

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Thrashed Oversized Long Sleeve Missing from prototypes are tags, logo, embroidery, and topstitch

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Thrashed Oversized Long Sleeve Missing from prototypes are tags, logo, embroidery, and topstitch

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Why now?We can create a platform to create preferable clothing that can finance charities and community projects through our sales

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Questions?

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I. Executive Summary

Clothing is a common medium between all people, some see it as functionality, and others see it as an accessory. However, everyone buys clothing, but not everyone is willing to pay more money for a name. The functionalists just want a good quality shirt that is worth what they pay. People with aesthetic tastes are looking for simplistic, cut and sew designs with a reputable name. The fashion market can sell clothes anywhere from $40 to $120 for a simple t-shirt. More likely than not the functionality is similar anywhere on the spectrum, people will pay more for the stature and name of the brand. Wherever you go there will always be aesthetically conscious individuals.

Our plan is to not only take the industry by storm but to revolutionize it. In the fashion industry there are two major types of clothing brands, the ones who sign contracts to be sold in retailers at a moderate price comparable to others in the store. These brands are commonly graphic tees or plain tees. There is also High End clothing that will sell from their own places or sign with a store or two for a limited time. These High End clothing brands will print exclusive clothing, meaning they only make 100 of the specific shirt and the price is hiked up immensely. The brands found in retail are commonly graphic tees, a relatively cheap method of t-shirt design. The high end brands are often a cut and sew method, a more expensive production. My goal is to take all spectrums of men’s streetwear and their respective consumer’s price points to give them a central port to buy from.

We plan to sell all types of clothing for a variety of prices.

We want to provide a common inexpensive streetwear line of simple graphic tees with very punk themed designs for a low cost. We also want to sell contemporary cut and sew shirts with unique hemlines and designs for a higher cost. We don’t want to confine ourselves to a single article of clothing; we will incorporate different types of streetwear, casual, and high end clothing. We will allow the brand to grow organically with our revenue and following the trends. We hope to one day move to sell active wear, different pants, head gear and accessories for all customers. Our most innovative idea is to take simple tee shirts with elaborate hemlines specifically made for layering clothing, these shirts will take a riveted button to attach tee shirt extensions with many different designs that can range from pin stripes, a slanted hem, or a tattered look. It offers a large amount of personalization for any one person’s clothing taste. We want these t-shirts to be available for anyone.

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II. Problem

The first problems to tackle are the issues found within our own industry the things we can directly solve with our product. What is popular today is a variety of clothing, there is no one clothing styles and no one trend. The trends and preference can vary between customers, however, a strong trend catching now is layered clothing. It looks nice and is a fresh change but it has some drawbacks that we intend to eradicate. Stacking clothes with different lengths and hems can turn out well, but by midday all the layers start to heat up, and get very heavy. Comfort continues to be a very important element when purchasing clothing. We understand that the layering of clothes is important and popular so we want to provide the trends that are popular. Many consumers elect to wear casual apparel because it feels more comfortable. In a 2002 survey, 51% of the respondents said they choose comfort over "better looking" clothing items for a night out on the town. In 1994, 59% opted for the "better looking" clothing items.

Other issues observed in the fashion industry is the use of sweatshops and the lack of ethically made clothing. According to an article by Anne d'Innocenzio of the Associated Press, ‘ethically made clothes make up a tiny fraction of 1 percent of the overall $1 trillion global fashion industry. And with a few exceptions, such as the 250-store clothing chain American Apparel Inc., most aren't national brands.’ We plan to ensure that all of our clothing is locally sourced and manufactured to boost the economy of the Salt Lake Valley and to ensure that our customers are satisfied that their clothing is ethically made.

Beyond the confines of our industry, taking the world as a whole. We run into many issues. More than we can solve on our own. The biggest of all being poverty. The lack of life essentials, such as food, electricity, water, and even clothing. A recent study done in 2016, shows that over 3 billion people in the world survive on less than $2.50 a day or less. This means that over 3 billion people in the world do not have the financial standing to buy essential needs in life. There are many organizations out there trying to make a difference; they help to provide these essential needs by donating clothing, and many other things. Our pledge is to donate 10% of each clothing article’s profits to a charity or organization of the consumers choice using a code found on the tag of the clothing. This model can be observed from the accessory brand Lokai. We are a business that provides certain needs to certain people, while serving the full masses, and helping solve world problems such as poverty. Some people that face poverty have unique needs, these needs may seem insignificant on a big scale, but they are still needs. Not everyone that receives clothing from donations can actually use them because of their allergic reaction to the clothing. We provide a wide selection of clothing made of a variety of materials to help make it easier to clothe these people with allergic reactions.

We are a clothing company whose goal is to provide clothing that is preferable over our competitors and to solve the problems of comfort, price, and functionality. We demand that our customers be given the highest quality clothing. In striving for the

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quality of clothing our customers are paying for, we will not resort to unsafe working standards or under paying our personal tailors. Aside from the problems found within our industry we plan to tackle problems domestic and abroad via donations of our profits. We plan to publically release the destinations of our donations or to define to the dollar how we spend the money within our communities and foreign communities.

III. Customer Segments

We want to to establish that we are first a company. We are just trying to help with known world problems such as poverty; and that is how we believe we will attract our target market. We firstly want to target young parents as our primary market. We believe that young parents will be very interested with our unique value proposition (refer to paragraph 3). Now, we want to attract the right kind of parents. These parents that we will be advertising to, are very hands on, self motivated people. We conclude that parents like this, are typically ranked in a higher bracket when it comes to income.

Clothing is worn by all people because of cultural normality’s. Clothing is a necessity for all. However many people indulge with their clothing, cultural expectation says they need the most popular clothing for whatever is in style. This is the secondary platform for our sales, we plan to be the ‘branded clothing to own’ for everyone ages 0-60 in a broad spectrum. The more fashion conscious in either gender are aged between 10-30. According to the NPD, women spend about 80% of all money that goes for streetwear. They control 96% of the dollars spent on their own clothes, 93% of those spent on children's, and 60% of those spent for men's sports apparel.

A. Primary Market Demographics Age: 20-80, $600,000-2,000,000

Very rich wealthy people Psychographics very confident, trend setters

Desire to help people in need

The most desirable customer is 25-40 years old, male and female couples with kids. They are well educated individuals that have a strong desire to help the community. These young parents belong to the middle to upper middle, and above class. These parents are very environmental friendly. They also tend to live in well populated suburban areas. They may even live in big cities such as New York. These parents may even be involved in their community. Often times they are leaders in their religion, or even social group. Possible that they are role models on social media’s.

Individuals under the age of 20 wear about 43% of sports apparel, but individuals aged 45 and older accounted for 25% of the market in 1999. Girl's and boy's apparel

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rose 0.5% and 3.8%, respectively Our secondary target markets are teens, young adults skaters, surfers, snowboarders, the health and fitness enthusiast and high-end clothing enthusiasts. This segment can be reached over the Internet, fashion blogs and magazines, such as Hypebeast and Vice.

B. Secondary Markets

Demographics Age: 20-80, $80,000-500,000 Lives in suburban cities,

Psychographics Wants to always keep up, Needs what they have

IV. Unique Value Proposition

In an attempt to increase profits and cut liabilities many clothing companies outsource their employees to sweatshops in foreign countries. Many times these sweatshops are in violation of workforce laws, child labor laws and ect. To provide our customers with the most comfortable and convenient clothing we will be making all products in America. This provides us with the ability for quality control and saves us on import taxing.

When people think about our company, we want them to think of good things. By good things, I’m talking about green. We are to be a Company that gives back to the community. For every single one of our products purchased, we will donate to a cause in need. We want to create a unique look for our clothing. We want to be as stylish as much as we are giving back. We promote quality, and cool clothing that is shared to the world. We give back. Example: When one of our customers buys a sweatshirt of ours, they will receive a tag on their article of clothing with a code specific to the clothing type that can be redeemed on our website where 10% of the shirts profits will be donated to a community project of their choice.. We also were thinking about teaming up with clothing companies to mash our looks. We also want to dig wells for 3rd world countries. Give electricity to places in need. Supply people with clothes they need. That way our two clothing lines might promote to each other's market. Our goal is to give back; that is how we plan to really attract our target market.

V. Solutions

Quality, Care, Cost. One feature that our product has is quality. We will not be some clothing line that is just trying to make a quick buck. We guarantee that our products have quality. We plan to have real people check every single one of our products going out; that way we will cut down on product flaws. A lot of organizations donate only what they can get. We are here to help up the quality of clothing going out into the world for those that receive the donations. Another feature we offer is care. We care about our customers and the people receiving donations. We want to help with the

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trend that TOMS started and Lokai has progressed. These are businesses for good. They sell their products to help improve lives. We want follow in TOMS footsteps in taking care of the world. Our solutions will be modeled after the more recent brand Lokai. Since it was founded 3 years ago Lokai has expanded its social responsibility efforts by donating ten charities. Including building six new schools in Ghana with Pencils of Promise, partnering with Charity: Water to provide clean drinking water to approximately 10,000 people in Ethiopia, and following the earthquake in Nepal this past April, Lokai donated $100,000 to the Red Cross to aid in its relief efforts. Our last feature is cost. We know that donating might be a bit costly. Except we have worked out a plan that will help people see why they spend the price they do for our products. When a customer buys a product of ours, they become part of our company; being part of our company they are helping a family/person in need. Over 2 million children have been protected from hookworm with medication and TOMS Shoes provided by our Giving Partners. We want to help make a difference the same way TOMS and Lokai have.

We will strive to ensure our customers that our clothing is ethically made. We will reach out to Fair Trade to get our clothing certified as ethically made in good working standards. A brand called Fair Indigo have used their online store to showcase the manufacturers as regular people in fair working standards. Fair Indigo's co-founder and president, says some shoppers are calling in and citing the latest fatalities in Bangladesh. The retailer had a 35 percent rise in revenue (compared with last year) following the disaster. That was in line with the 38 percent revenue surge it had during the November-December season, following the factory fire. We can depend on these types of sales increases with the our clothing being locally sourced and manufactured.

VI. Channels

In our modern world, there are tons of ways to communicate and sell to our customers. Many clothing brands sell their clothing to a retailer where they can sell for the price of their choice. This gets the brand name out there and can be a huge start to a customer base. However, the opportunity for revenue is greatly reduced, making only 7$ a t-shirt. We could also sell directly to the customer via the internet. This also has its drawbacks, making it harder to make a name for ourselves. So we plan to make readily available graphic tees in retailers while having our exclusive clothing on our website to make the most off of our most prized designs.

Our first channel we sell through is our online store focusing on Business to Consumer selling. We’ve done studies on our target market. Mintel’s Online Shopping US 2015 report reveals that over two thirds (69 percent) of US online adults shop online at least monthly, with 33 percent shopping online every week in 2015, up from 24 percent in 2014. We believe that an online store is a great way to start. We plan to advertise to our target market through pop up ads on the side of main websites. If we are to track where our target market goes on the internet, we can spend less money on advertising to the right people. We also think that if we go to green conventions. We can

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promote to go green people.

Other readily available channels are with other conventions revolving around fashion. The Utah Fashion Week is in March this year and have days dedicated to Streetwear. There is the Fall Event Center, the Expo Center and Utah Valley Convention Center among others. Other options include pop-up shops and conventions across the nation.

We plan on developing the specialty stores market through an inexpensive postcard method. Direct mailing ads/coupons with priority codes is one the most cost-effective ways to reach potential retail store customers. The company's extensive advertising campaign will be used to create product awareness through the use of trade journals, shows, direct-mail advertising, and the Internet. At some future date, the company will seek sales representation to help increase sales, once the company has established a firm reputation. To reach out potential customers we will be creating a lookbook and a professional website to display our products. To create the lookbook we will use professional photographer Eudo Quiroz who works with Damn Son! Record label and other local rappers of Utah to create a bond with the urban consumer and those interested in streetwear.

VII. Revenue Streams

Being that we are a clothing company. We will be focusing on our Asset Sales. When we sell a person one of our products, they become the owner of that product. This and the fact that when a customer buys a product, they also help us donate another product of ours to a person in need. That is one of our lifetime values. According to studies, it shows that Nike Inc's Revenue for the three months ended in Aug. 2016 was $9,061 Mil. Nike Inc's Average Total Assets for the quarter that ended in Aug. 2016 was $21,276 Mil. Yes, we know that when we are starting off we will not have quite such a large Asset Return, but it is where we are focused on heading. Starting with a basic sneaker: US retail price$70.00. The retail store buys the shoe from the shoe brand in bulk at the wholesale price, which is about $35. If this is a big retailer they may get a 3-5% discount or free freight. If you base our sales off of this you could see that we might take a hit in the company. We would need to make up for all the lost money going out as our products to be donated. We will raise the price on select popular products; that way we can afford to pay for all of these products being donated. Another cool thing with our online store; we don’t need to sell in bulk to distributors. We buy the materials for our products for x amount of money, we make our product for x amount of money, we then well it for full retail price. We are our own retailer. That way we do lose money to retail stores. VIII. Cost Structure

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Start-up costs have been primarily for inventory, trade shows, marketing, trademark acquisition, operating and administrative costs, and establishing a professional ecommerce website. You need tooling manufacturing equipment Price of software Ie. Accounting software or production.

If you look back up to Revenue Stream, you will see that the average sneaker is sold for $70 american dollars, and is made for about $35. If it takes us $40 american dollars to make one of our products, but then we turn around and sell that product for $80, we have made a gross profit of $40 dollars. We can’t have that kind of return. We need to be making one product for at least 25% of what we sell that product for. That way we can donate back to our society while keeping our business above and thriving. According to this chart, it costs Nike an average of $28.50 to make a sneaker that will retail for $100. That sneaker will be sold to wholesalers at $50, meaning Nike will get back $21.50 (the profit on this comes to $4.50 after SG&A and taxes).Dec 16, 2014 url Example: We make a pair of our shoes for $25.00. We need to sell those shoes for at least $100.00. We believe that our target market will be willing to buy a pair of our shoes for this much. (refer to section III)

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IX. Key Metrics

We will measure our success through graphs. We plan to take a recording of sales and production after one month of being open. We will then compare our numbers from the first month to another chart we will record in another six months. We will be recording things as: our attracted target market, sales, what people are buying, the

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popular trends that are going around. We will be recording everything to do with numbers to track our attracted popularity, or our decrease in sales. X. Competitive Advantage

We have quality clothing in every single size you could get. We will have clothing mashups with other clothing companies to keep our products unique and hip. We also work with people that have skin conditions that does not allow them to wear clothing such as latex and other materials that cause allergic reactions. The biggest thing that we will do is give back to the community.

The purchase decision for our customers is based on trust in our services, professionalism and quality products. We have established relationships with our overseas customers which extend beyond that of the buyers/sellers. Our products have the highest quality standards in mind.

There are several other projects we are currently working on to further broaden our product lines and open up our markets even more. In 2 to 3 years we plan on broadening out product line to include more activewear clothing, women’s clothing and even adding accessories such as patches for consumer customization for their clothing, pins for extra customization and to create small leather goods.