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Global Sourcing

Coach Inc.

Ariel Betancourt

Nichole Mele

Alix Scalia

Alina Tseplukhova


Company History •

Founded in 1941 by six artisians in Manhattan, NY

1962 Bonnie Cashin

1979 Lew Frankfort, CEO

1993 Reed Krakoff

The Coach brand over the years has come to stand for quality, authenticity, value and a distinctive American style


Global Business Integrity Program • Embrace high standards of ethical behavior, • Comply with all applicable laws and regulations, • Treat their employees fairly, and with dignity and respect, so as to promote their welfare and improve their quality of life, and • Be socially responsible citizens in the countries and communities in which they operate.


Coach Coach’s corporate headquarters remain in mid-town Manhattan on 34th Street, in the location of the former factory lofts

There are over 500 Coach stores in the United States and Canada, and over 300 directly-operated locations in Japan, China, Singapore and Taiwan.

C

oach maintains control

According to Panjiva, Coach

weekend and travel accessories,

of the supply chain

receives their products from

footwear, watches, outerwear,

by qualifying all raw

many different countries.

scarves, sun wear, fragrance,

material supp liers and by

Hong Kong is the number one

fine jewelry and related

maintaining sourcing offices

exporter for Coach goods.

accessories.

in Hong Kong, China and

However, no one location

South Korea.

produces more than 10% of products.

Coach operates a distribution, consumer service and repair

Coach has emerged as

facility in Jacksonville, Florida.

America’s preeminent producer

This 560,000 square foot facility

of fine accessories and gifts

uses a bar code scanning

for women and men including

warehouse management

handbags, men’s bags, women’s

system.

and men’s small leather goods,


Coach


m

comunication initiatives: direct arketing activities and national,

regional and local advertising through catalogs, brochures, email newsletters, and print advertisements.


All independent manufacturers must maintain Coach’s high quality standards


Coach Imported Products Hong Kong is the number one exporter for Coach goods; no one location produces more than 10% of products. China provides five locations that follow behind Hong Kong and lastly, South Korea.


The products that are imported for Coach are listed in order by quantities (according to panjiva):


Geographic •

• • •

Hong Kong • • • • •

Population: 7,061,200. Urban population: 100%. Ethnicity mostly represented by Chinese (93.6 %), Filipino, Indonesians, British, Jews and Indians. Most of population are Chinese. Language: Chinese Mandarin, Cantonese and English. The education outlay from government is 3.4% of GDP

Largest re-export center Location: Eastern Asia, China Hong Kong is composed from 200 islands Hong Kong is subtropical place with high level humidity. Relatively warm and hot year-round.


Economic •

Currency: Hong Kong dollar.

Labor •

About 93.5% of population

Free market economy.

attended school.

Low taxation and free trade.

Unemployment percentage: 3.3%

Hong Kong has to import food

Labor is about 3 million and 826

and raw products because of its

thousands of people.

limited amount in the region.

leading international center.

Hong Kong Stock Exchange is

seventh largest in the world

Almost no import/export control.

Services take about 93% from

overall GDP; 7% for industry and

Business Climate •

The government didn’t enter any

quotas or dumping laws.

Hong Kong ranked number 6 in

the ranking of countries with

most easy opening business pro

cedure. 3 procedures need to be

completed

Inputs •

Total imports are 340857 Millions

Hong Kong Dollars.

Machinery and equipment are

about 56% of total imports.

Manufactured goods and articles

are about 20 %.

Minerals fuels are 4%.

Food is 3.7%.

Chemicals are 5%.


Strengths • •

Imports: economy, free port and various sectors in the supply chain. Hong Kong: GDP growth and stable exchange rate.

Weaknesses

• Imports: increasing competition from mainland and foreign firms. • Hong Kong: exposure to china’s economy and escalating cost.

Opportunities

• Initiative to expand into mainland China and Far East and reexports. • There are prospects for U.S suppliers that include leading export sectors such as financial services, education, travel and tourism services and retail.

Threats

• Hong Kong: it’s separate identity being taken over by Shenzhen and Taiwan. • Losing business to China • It faces competition from neighboring lower cost ports such as Shanghai, China


Hong Kong: Culture & Business Etiquette • The culture is similar to that of the United States. It is a masculine culture that is driven by competition, achievement and success. • The first step when working with a Chinese businessman is the introduction. The guest should make sure that they are punctual. • In conversation, it is usual for all people of the world to take a moment of silence. • The color red is considered a lucky color. It signifies power & love & control. • Women should wear conservative dresses, suits, or skirts and blouses.


•Hong Kong is successful in combining Western and Eastern cultures. • Current society could be described as highly modern. •Asian culture differs by strict etiquette rules.


Trade Laws & Policies • U.S. goods and services trade with Hong Kong totaled $54 billion in 2011. Exports totaled $43 billion; Imports totaled $11 billion. • Hong Kong ranked number two in ranking of easiness of trading across a border. It takes four documents, five days and 575 dollars to export one container • US exports to Hong Kong is higher compare to imports. The deficit is 38.8 billion at the moment, and it decreased compare to 43.6 million in February. • Hong Kong is a free port and does not levy any tariff or tariff quota.


• Economic Partnership Arrangement (CEPA). • European Free Trade Association (EFTA). • US and Hong Kong are both members of World Trade Organization.


Products

Even though the percentage of industry is relatively not big (7%), range of products produced there is wide: fashion apparel, sporting and travel goods, beauty and personal care, electronics and components, toys, seasonal decorations, watches and clocks, gifts and office items.

Transportation • • • •

World’s second busiest container port and busiest airport for international cargo. 9 helicopters stations. 2,067 km of roadway. Merchant marine: 1,644 (cargo, bulk carrier, barge carrier)

Effects of Quota Removal • •

NAFTA has free trade agreement and is closer to USA compared to Hong Kong; Hong Kong loses big percentage of possible exports. NAFTA is one of the reasons of decreasing of Hong Kong’s export to USA by 63% compared to 2000th.


Coach Shipping Route Air Freight is a much more expensive route than ocean freight. Though, it is the quickest route for the importing/exporting process. There are many options for Air Freight; Boeing 707, Douglas DC-8, IIyushin 11-76, and Douglas DC-3. The Boeing 747-400 is the most common that’s used for air cargo carriers. It’s able to hold around 26,000 feet of freight and/or cargo.


Coach ships garments, bags, accessories, by boat, and it is most recommended to use a dry storage container.


Harmonized Tariff System For Use in Classification of Imported Merchandise for Rate-of-Duty and Statistical Purposes


HTS 2013: Annotated for Statistical Reporting Purposes


Company name: Coach, Inc. Date: Style #: 23574 Season: S/S 13 Product Name: Legacy Haley Satchel Wholesale Price: Group/Description: satchels & carryalls Colors Available: Sand, Cognac, Black, Lemon, Bright Coral, Blush, Marine. 1. Material Yards/Square Feet/Qty Price Amount Swatch Leather 1 $40 $40 Interfacing Lining TOTAL MATERIAL= $50 2. Trimmings/Hardware Zipper Zupper (inside) Snaps Frame Brand Label Hang Labels Label Stitches Threads

1

$10

$10

Quantity 1 1 1 1 1 1 1 1

Price $1 $0.60 $1 $2 $2.00 $0.12 $0.50 $0.40

Amount $1 $0.60 $1 $2 $2.00 $0.12 $0.50 $0.40

$1.50 $1.85 $1.50

$1.50 $1.85 $1.50

$1.00 $0.15

$1.00 $0.15 $1.15 $63.62

TOTAL TRIMMINGS/HARDWARE= $7.62 3. Labor Cutting 1 Sewing 1 Labor 1 TOTAL LABOR= $4.85 PACKING MATERIALS Tissue 1 Polybag 1 TOTAL PACKING 4. Total Cost Wholesale Suggested Retail Price:

$128 $358

C

OST HEET

S


COACH SEASONAL HANDBAG: $358


Importer Documents DEPARTMENT OF HOMELAND SECURITY

U.S. Customs and Border Protection ENTRY SUMMARY 8. Importing Carrier

9. Mode of Transport

12. B/L or AWB No.

13. Manufacturer ID

16. I.T. No.

17. I.T. Date

21. Location of Goods/G.O. No.

18. Missing Docs

22. Consignee No.

25. Ultimate Consignee Name and Address

City 27. Line No.

Power of Attorney

State

Zip

28. Description of Merchandise 29. 30. 31. A. HTSUS No. A. Grossweight Net Quantity in B. ADA/CVD No. B. Manifest Qty. HTSUS Units

Entry Summary


GSP Form

Detail Form


Importer Documents

Intermodal Bill Of Lading

Inland Bill Of Lading


This notice informs the PPQ Office of the arrival of a restricted article at a port of entry. The information is used to schedule required inspections. (7 CFR 319.321, 322, and 325).

FORM APPROVED OMB NO: 0579-0049

U.S. DEPARTMENT OF AGRICULTURE ANIMAL AND PLANT HEALTH INSPECTION SERVICE PLANT PROTECTION AND QUARANTINE

NOTICE OF ARRIVAL

INSTRUCTIONS: Immediately upon arrival, the permittee or his agent should prepare original and one copy of this form. Submit copies to the Plant Protection and Quarantine office having jurisdiction over the port of arrival.

1. NAME OF CARRIER

3. NAME OF PERMITEE/CONSIGNEE

2. DATE OF ARRIVAL

4. PORT OF ARRIVAL

5. PERMIT NO.

6. PORT OF DEPARTURE

7. CUSTOMS ENTRY NO.

8. CONSIGNOR/SHIPPER (Name and Address)

9. PRESENT LOCATION

10. COUNTRY AND LOCALITY WHERE GROWN

11. NAME OF PREVIOUS U.S. PORT (In Transit Only)

12. LT. NO.(In Transit Shipments Only)

13. DESCRIPTION OF PRODUCT MARKS, BILL OF LADING, AND/OR CONTAINER NO.

14. SIGNATURE OF IMPORTER OR BROKER

QUANTITY AND NET WEIGHT

COMMODITY

15. FULL BUSINESS ADDRESS OF IMPORTER OR BROKER

16. DATE SIGNED TELEPHONE NUMBER (INCLUDE AREA CODE)

Arrival Notice

17. DISPOSITION OF PRODUCT

TO BE COMPLETED BY PPQ OFFICAL

18. SIGNATURE AND TITLE OF PPQ OFFICAL

19. DATE SIGNED

According to the Paperwork Reduction Act of 1995, no persons are required to respond to a collection of information unless it displays a valid OMB control number. The valid OMB control number for this information collection is 0579-0049. The time required to complete this information collection is estimated to average .08 hours per response, including the time for reviewing instructions, searching existing data sources, gathering and maintaining the data needed, and completing and reviewing the collection of information.

PPQ FORM 368 (AUG 2005)

Previous editions are obsolete.

Insurance Form


Importer Documents

Packing List

Commercial Invoice


Proforma form

Letter of Credit


Works Cited Bureau of East Asian and Pacific Affairs. U.S Department of State. N.p., 3 July 2012. Web. 2013. <http://www.state.gov/r/pa/ei/bgn/2747.htm> Chamberlain, Kate. Now Health International. N.p., 6 Mar. 2013. Web. 1 May 2013. <http://community.now-health.com/bid/127790/ Business-etiquette-in-Hong-Kong>. "Coach, Inc. (COH) - Description of business." Hot Stocked. HotStocked.com, n.d. Web. 9 May 2013. <http://www.hotstocked.com/ companies/c/coach-inc-COH-description-57541.html>. "Company Information." Coach. Coach INC, n.d. Web. 9 May 2013. <http://coach.com>. “East & Southeast Asia: Hong Kong”. Central Intelligence Agency. 10 Jan 2013 <http://www.cia/gov/libray/publications/the-world-facebook/geos/hk.html> eDiplomat. N.p., n.d. Web. 1 May 2013. <http://www.ediplomat.com/np/cultural_etiquette/ce_hk.htm>. Fedex. "General Import Clearance Information." United States Country Profile. N.p., n.d. Web. 28 May 2013. <http://www.fedex.com/ us/international/irc/profiles/irc_us_profile.html>. "History of Coach, Inc." Funding Universe. N.p., n.d. Web. 9 May 2013. <http://www.fundinguniverse.com/company-histories/coach- inc-history/>. “Hong Kong Culture”. 1998-2013 <http://www.travelchinaguide.com/cityguides/hongkong/when-togot.htm> Hong Kong Economy Update”. 2013. <http://www.business-in-asia.com/china/hongkongupdate.html> “Hong Kong Language, Culture, customs and etiquette.” Kwintessential 2013 <www.kwintessential.co.uk.html>. Hong Kong’s Trade Policy”. Trade and Industry Department. 20. February 2013. <www.tid.gov.hk/english/aboutus/tradepolicy/trpolicy.html>


“HTS Online Reference Tool.” United States International Trade Commission. N.p., n.d. Web. 9 May 2013. <http://http://hts.usitc. gov/>. “Import and Export Trade Industry in Hong Kong”. HKTDC Research 2000-2013 <http://hong-kong-economy-research.hktdc.com/business-news/article/Hong-Kong-Industry-Profiles/Import-and-Export-TradeIndustry-in-Hong-Kong/hkip/en/1/1X000000/1X006NJK.htm> “International profile”. International Resource Center. 1995-2013 <http://www.fedex.com/us/international/irc/profiles/irc_hk_profile.html> InterNations. N.p., n.d. Web. 1 May 2013. <http://www.internations.org/hong-kong-expats/guide/15942-jobs-business/hong-kong-business-culture-15930/hongkong-business-etiquette-2 Office of the United States Trade Representatives, . “Hong Kong.” Office of The United States Trade Representatives. N.p., n.d. Web. 28 May 2013. <http://www.ustr.gov/countries-regions/china-mongolia-taiwan/hong-kong>. “Market Overview”. Export.Gov. 13 October 2009. <http://export.gov/hongkong/doingbuisnessinhong/index.asp> The Hofstede Centre. N.p., n.d. Web. 2 May 2013. <http://geert-hofstede.com/hong-kong.html>. U.S Department of Commerce. “Foreign Trade.” United States Census Bureau. N.p., n.d. Web. 28 May 2013. <http://www.census.gov/foreign-trade/balance/c5820.html>. Williams, De’Edra. Hong Kong Business Etiquette. N.p., n.d. Web. 1 May 2013. <http://www.cyborlink.com/besite/hong_kong.htm>.“ Winstar. “USA Import Requirements.” N.p., n.d. Web. 28 May 2013. <http://www.wsgl.biz/en/support/rule/usa.htm>. World Trade Organization. “Trade Profiles: Hong Kong.” World Trade Organization. N.p., n.d. Web. 28 May 2013. <http://stat.wto.org/TariffProfile/WSDBTariffPFView.aspx?Language=E&Country=HK>.

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