Page 1

A sustainable and self-insulating clothing line giving back to those less fortunate.

By: Jeni Carmichael, Grace DiPaolo, Lauren Davis

Table Of Contents 2

4-13 - About Lume 14 - The Industry 26 - Key Competition 30 - Materials 40 - Product Development 50 - Environmental Impact 58 - Sourcing 64 - Engaging the Customer 70 - Branding 74 - Conclusion 76 - Cost Sheets 80 - Research


LUME - The Company Mission.

To provide a quality sustainable product that IS Fashionable AND COMFORTABLE FOR YOUR NEW BUNDLE OF JOY.


A sustainable and self-insulating clothing line Giving back to those less fortunate.


Quality, Comfort and Sustainability


(Extended values on a later page)

LUME - What we are about We believe that children hold the future in their hands. It is our generation’s responsibility to ensure the wellbeing of our children to allow healthy growth, and the opportunities to continue innovation in the future. Our focus is thus centered on the growth of our babies and the environmental impact we have on their surroundings. Using sustainable fibers and environmentally sound processes, we have created a brand that you can rely on to help your baby thrive. Our heat retention technology ensures that your baby will be warm without excess layers of clothing and blankets. Sustainability and longevity motivate the composition of our baby clothes, and we source from only the best. Just like flowers need sun, our babies need warmth and nourishment to blossom.


Concept The original Latin term “lumen” means characterized by light, or that which provides light or glow. We garnered the term “Lume” for our product line to embody the sense of warmth given from light, which is a primary aspect of our brand’s goal for children’s wear. Babies are not unable to regulate their body temperature until they reach a more stable phase of maturation. As such, newborns need to be bundled up and kept warm as their bodies learn to self-regulate temperature. Studies show that babies kept warmer grow twice as much in the process of maintaining body temperature. Additionally, the sense of comfort and safety derived from warmth gives babies one less reason to cry or become irritable.

But the need for babies to retain heat does not necessarily mean their clothing should be layered extensively or piled with blankets. We thus decided that Organic cotton, Merino Wool, Soy Cashmere and Heattech Fibers offer an ideal solution for children’s wear for the 0 to 2 years old range. The advanced Heattech Fiber converts water vapor emitted from the body into insulating thermal energy. An air pocket, or layer of air, within the fabric acts to retain the heat and offer insulation against the cold. The Fiber was created by Fast Retailing, which have made its restricted chemical list public, and requires partners to comply with strict standards on restricted chemical substances. FR also requires partners to comply with a code of conduct regarding the testing of hazardous substances in products and waste water.


Sustainability - Fabrics Soy Cashmere

The four fabrics we decided to use are

Made from soy protein, derived from the process of tofu manufacturing, using the hulls of soybeans, it is an extremely effective option for sustainable apparel as it is renewable, economical and comprehensive in prospects for recycling and Eco-friendly disposal

Heattech Created in Japan this fabric is made of Milk protein that absorbs body moisture, while hollow pockets capture air to prevent heat from leaving your body. It is soft, non-deforming, quick dry, anti-static and controls odor.

Organic Cotton

Merino Wool Wool is made of an insoluble protein called Keratin, with a cross-linked structure it is naturally resistant to water, acids, mildew, and even sunlight.


Organic Cotton uses methods and materials that have a low impact on the environment. Organic production systems replenish and maintain soil fertility, reduce the use of toxic and persistent pesticides and fertilizers, and build biologically diverse agriculture. Organic cotton is grown without the use of toxic and persistent pesticides and synthetic fertilizers.

Merchandise and Price points

WHOLESALE 8 $5.25 to $12.25


$10.00 to $30.00 9

Company Values As a company for the younger consumer we take out values very seriously. We want to be 100% transparent allowing our customer to know the In’s and out’s of our company. We value: Security Stability Perseverance Knowledge Honesty Tolerance The Environment Quality Sustainability Comfort 10

Our Video Model : Scarlet Baker

Target Market AND LIFESTYLE Ashlee Jacobson, 28 Daughter: Ava Masters in English / Temporary stay at home Mother Husband is an lawyer First Child VALS: Strivers and Experiencers Lives in Washington DC Style conscious Values Social Change, Sustainability and Technology


Lifestyle Ashlee purchases about 30 to 50 outfits for 1 year depending on babies growth, each outfit cost max $35.00. She washes the garments after each use, always in cold water and uses the dryer as little as possible. This newer family is fairly progressive and extremely focused on recycling and helping the environment, Ashlee loves to buy green products that she can recycle back at the store of purchase or at the local goodwill for re-use.


The Industry

SIZE & SCOPE • Segment includes production and retail of clothing, accessories, and footwear for newborns to age 12 • Sales of infant and toddler clothing account for 68% of the segment • Majority of sales from US and Europe • US leads 45% market share, generates sales of more than $48 billion a year • Females represent 86% of children’s wear consumers, 64% ages 25 to 44, who value the sustainability and quality of their Children’s wear is the fastest growing segment within the $450 billion global clothing apparel industry.

children’s clothing over their own ("Global Children's Wear Market)

Forecasted to reach a 15% increase over 5 years by 2014 to equal $186 billion, the children’s apparel market represents 20% of the US retail apparel industry. In fact, the sale of children’s wear accounts for nearly 11% of spending on clothing today, and renders it is among the industry’s most lucrative segments ("NPD Group Reports Kids wear Grew in the Double Digits").


Stimulated sales of children’s wear can be attributed to: •Rise in income earning families, greater working population and disposable income •More trend-conscious/fashion forward options •Coordination of trends in adult wear translated into kid’s wear •Celebrity children’s lines: Madonna for Nordstrom, Celine Dion’s own line •Willingness of parents to splurge on their children’s clothing as their financial stability is restored post-recession •Baby boomers splurge on grandchildren; growing number of specialty stores market to grandparents •Popularity of gifting families with high-value products for newborns Products in Children’s Wear Sector: •Infant and children’s wear: dresses, jackets, jumpsuits, sweaters, sleepwear, and basics for girls and boys

•Average annual growth: 1.6%. •As of 2010: 7,855 private factories in manufacturing

•Also covers children ages newborn to 12 years

•157,587 workers, compared with 15,478 establishments

•Infant wear: babies up to 18 months •Toddler wear sized 2T to 4T, kids up to three years (“Children’s & Infant’s Clothing Stores in the US Market Research Report”).

Children’s Wear Industry Statics:


and 426,027 workers in 2001 •97,950 employees and 9,306 businesses in the US as of August 2013 (“Labor Statistics: Fashion”).

UNIQUE CHARACTERISTICS Designers seeking to expand look at children’s wear as another way to deepen their relationship with their customers as well as reach out to new ones. In the 20th century after the First World War, children’s wear began to be commercially produced and distributed, since mass production stopped women from making their own clothes for themselves and their families. While children’s wear was initially reflective of adult’s clothing as seen in the colonial era, factories now produced garments specifically for children, made sturdier with the use of zippers, snaps, and durable sewing techniques techniques (“Children’s Apparel Industry”). Today, seasonal changes in consumer preferences sanction trends to dictate the success of a children’s wear retailer

Key Players in the Industry

and suggest good turnover rates (Huebsch). Varying consumer


inclinations and buying behaviors and availability of choices


affect the market, and qualify brand loyalty, design innovation,


ethical/eco-friendly practices and materials, and safety to define

Old Navy

a brand’s success (“Global Children’s Wear Market”).

GapKids/BabyGap - 1166 stores Babies R Us - 199 stores Guess Kids - 83 stores


Gymboree, Children’s Place, Carters

consumer spending And children’s wear in the retail and THE apparel industry

• US apparel market as a whole staged a marked recovery in 2011, rising by 4% to $199 billion, according to NPD Group • Menswear sales rose 4% on the year, with women’s wear increasing by 3%, but the most significant growth was children’s wear, which was up 6% (Just Style) • Survey from 2001 after 9/11 said that parents sacrificed their

own wardrobe desires to buy their children brand-name clothes even in economic distress; thus, leading luxury designers have began lines of children’s apparel in recent years • Diane von Furstenburg, Gucci, Oscar de la Renta and Lavin now showing children’s wear collections ("Children's Apparel Industry") In 2010, households spent, on average, $1,700 on apparel, footwear, and related products and services, which equaled 3.5 percent of average annual expenditures. Since 1985, as a percentage of total apparel expenditures, households spent more, on average, on apparel designed for women aged 16 and over than any other apparel product or service. The apparel manufacturing industry includes a range of manufacturing organizations of apparel; apparel contractors, cutting or sewing operations on materials owned by others; and tailors, manufacturing custom garments for individual clients ("Labor Statistics: Fashion").



Going green is also anticipated in the future of the children’s wear sector. The market for sustainable children’s wear is still nascent, but forecasted to expand significantly in the next five years. As the green market enters the mainstream, there is burgeoning demand for corporate transparency, fair trade practices and standards, and the use of eco-friendly, safe and organic fibers (Christian). More consumers are becoming aware of the hazardous toxins for stain, fire, and wrinkle, resistance in children’s wear and demanding ecological quality and processes from companies. Green living expert Annie, B. Bond says that an emergent number of consumers today consider chemical finishes, nontoxic dyes and inks, fair labor practices in purchasing clothing for their children ("Eco-Friendly Children's Clothing"). •Global Industry Analysts, Inc. project sales of $216.8 billion by 2015 •Segment’s extreme resilience during economic recession of 2008 shows considerably better sales than the men’s and women’s wear segments ("Global Children's Wear Market") •As the wealthy feel more comfortable about spending again, they increasingly want their kids to wear quality apparel; this spending is only predicted to increase with rising consumer comfort and insistence on quality (D'Innocenzio)


While conventional clothing processes may harm the environment, consumers grow increasingly responsive to the harm caused to people who make their children’s clothing. For example, each September in the second-largest cotton exporter in the world, Uzbekistan, the government closes schools because the cotton season begins, and children a young as 6 are forced to hand pick cotton until the harvest is complete; they get minimal wages and poor quality food and water, and are punished if quotas are not met. While many US retailers publically renounced the use of Uzbek cotton, others like Gymboree and Carter’s, only made this pledge this summer, after sharp and incessant pressure from Green America’s Responsible Shopper program and consumers alike. As such, Bond says the number of parents adamant in their demand to know where their child’s clothing was made, how, and by whom, is on the rise ("Eco-Friendly Children's Clothing"). •2011: 69%, 7 out of 10, consumers considered eco/sustainability at least sometimes when purchasing clothes •2012: Interest in eco-fashion purchases doubles among consumers •Primary considerations: price and availability •Eco-friendly clothing formerly misconceived as expensive •One third of consumers who don’t regularly consider sustainability in apparel purchases said they didn’t buy sustainable because it wasn’t available where they shop regularly •One in four would prefer to purchase sustainable apparel but did not know where to do so •Consumers interested in organic fibers in children’s wear: Of estimated $3 billion in sales of eco-textiles, organic fibers account for 70% of the market, global sales of about $2.1 billion •Most popular sustainable products in apparel industry: jeans, knitwear, active wear and baby clothes •Sustainable children’s wear just beginning to emerge; most of which are exclusive to e-commerce, including People Tree, Green Baby, Stella James



Fabrics and styles are often promoted at Trade shows, exhibitions organized for the largest and most influential network of buyers, brands, media and decision makers in the industry to showcase and demonstrate their products, and in trade publications including WWD and DNR Market Centers Trade shows in New York City ("Children's Apparel Industry"). MAGIC kids International shows for men’s, women’s and children’s apparel and accessories. This event that is held twice a year in Las Vegas is where the international community of fashion professionals trade information, preview trends, builds business. Other trade shows include Children’s Club trade show in NYC; Women’s and Children’s apparel market in Chicago. Designer Labels Designer labels in stores for children’s wear are geared toward people with middle and high income ("Children's Apparel Industry"). In terms of production, the far East (China, Vietnam, Cambodia) produce the majority of children’s woven bottoms, shirts and sweaters, while Greece, Spain and Israel are used for many knit apparel items ("Children's Apparel Industry"). Suppliers on the Chinese market are concentrating their efforts on research and development to bring out more comfortable, aesthetically pleasing and functional clothing for children and infants. Suppliers are using better quality materials, banking on stronger demand for exports over the year to come ("NPD Group Reports Kids wear Grew in the Double Digits").


DISTRIBUTION Lower middle-class communities typically purchase from discount and family retailers like Target and Wal-Mart, where they can also buy groceries and other household supplies (Huebsch). In fact, Of 92,400 total clothing stores (men’s, women’s, children’s and infants’, and family clothing) in the United States in the mid-2000s, 24,100 were family clothing stores employing about 589,000 workers, according to the U.S. Census Bureau (“Family Clothing Industry Retail Trade Report”). More upper middle-class families usually buy from GAP, Gymboree, The Children’s Place, or Carter’s (Huebsch). Luxury children’s sales are just a fraction, a bit over 3 percent, of the $34 billion market, but it’s growing faster than the rest of the children’s wear and clothing market, according to NPD Group Inc. For the past 12 months ended in May, children’s wear sales rose 4 percent, with the upscale component up 7 percent, according to NPD’s most recent data, which compares with a 3 percent rise for the overall clothing market (D’Innocenzio). Luxury children’s sales are just a fraction, a bit over 3 percent, of the $34 billion market, but it’s growing faster than the rest of the children’s wear and clothing market, according to NPD Group Inc. For the past 12 months ended in May, children’s wear sales rose 4 percent, with the upscale component up 7 percent, according to NPD’s most recent data, which compares with a 3 percent rise for the overall clothing market (D’Innocenzio).


LUME DISTRIBUTION Our product will be first be distributed through E-Commerce. Our own website as well as other smaller boutique children’s wear sites and brick and mortar stores that are targeted to the younger mother.


has been providing the Seattle area with sustainable, Eco-friendly clothes for a little less then 20 years they provide a range of clothing for newborns to 12 years of age with a price range of $15 to $52.

Sarah Jane is a Savannah children’s boutique, open since 2010 and providing the area with high quality children’s clothes with price points at $13 to $55. is a website for the entire family, with a burgeoning children’s page they offer a variety of

collections to choose from. With price ranges from $9 to $40 this site gives the customer great deals. A sustainable clothing line would be a great addition for this page and customer. In the future we hope to also expand to our own brick and mortar stores as well as possibly distributing this line to major department stores.


Key Competition

Carter’s, Inc. (Carter’s) is a branded marketer of apparel for babies and young children in the United States • Owns two brand names in the children’s apparel industry, Carter’s and OshKosh • Carter’s brand provides apparel for children sizes ranging from newborn to seven • OshKosh brand provides its line of apparel for children sizes newborn to 12 • Sold to national department stores, chain and specialty stores and discount retailers • 359 Carter’s and 170 OshKosh outlet and brand retail stores in the United States and 65 retail stores in Canada. • Acquired by Bonnie Togs, a Canadian children’s apparel retailer and a former international licensee • Corporate employees: 11,786 • Founded 1865 • Fortune 1000 Ranking: 841 • Corporate Sales Volume: $2,381,734,00


Gymboree Corp., a specialty retailer in San Francisco, offers apparel, accessories, and play programs for children in the U.S. and Canada. • Founded in 1976 • Parent Company: Bain Capital LLC It has four divisions: Gymboree, Gymboree Outlet, Janie and Jack, and Gymboree Play & Music • 575 stores as well as an Online store ( Division runs three play centers in California and 545 franchisee-operated play centers in the U.S. and worldwide


The Gap, Inc. (Gap Inc.) is a global specialty apparel company. Gap Inc. offers apparel, accessories, and personal care products for men, women, children, and babies under the Gap, Old Navy, Banana Republic, Piperlime, and Athleta brands. It operates in two segments. • Company-operated stores in the United States, Canada, the United Kingdom, France, Ireland, Japan, China, and Italy • Franchise agreements with unaffiliated franchisees to operate Gap and Banana Republic stores throughout Asia, Australia, Eastern Europe, Latin America, the Middle East, and Africa • 3,263 store locations, of which 3,036 stores were Company-operated and 227 stores were franchise store locations. • Corporate employees 136,000 • Year Established: 1969 • Corporate Sales Volume $15,651,000,000



Consumers today demand safe production processes to ensure that their children’s clothing is both safe and environmentally friendly, although many fabrics used in the industry are still treated with hazardous chemicals for stain, wrinkle and fire resistance. The carcinogen formaldehyde is in some permanent-press and fire-retardant clothing like children’s polyester sleepwear up to size 14. Additionally, carcinogens like chrome, copper, and zinc are often used in conventional fabric dyes that are near impossible to remove from washing. Not to mention synthetic fibers like polyester and nylon, which are often made from petrochemicals with detrimental carbon footprints on the environment, as nylon creates nitrous oxide, a greenhouse gas. Lume ensures that all fabrics are sustainable and environmentally friendly in addition to the best possible quality for children. We ensure that fabrics are treated without chemical finishes and toxic dyes and inks, and employ fair labor practices are carried out during manufacturing.


SOY CASHMERE Soy cashmere, which is also referred to as “vegetable cashmere” and “soy silk,” is made from soy protein, derived from the process of tofu manufacturing. Made from the hulls of soybeans, it is an extremely effective option for sustainable apparel as it is renewable, economical and comprehensive in prospects for recycling and eco-friendly disposal (“Soy Clothing Superior Softness”). • Fabric has garnered title “soy cashmere” due to unique softness • Causes no hazard to the environment

• Made from soybean protein, which is abundant,

• Smooth to the touch, described as a “skin on skin” sensation.

inexpensive, and widely cultivated • Unique chemical makeup promotes good health

• Biodegradable & currently the only botanic protein fiber in existence

• Contains amino acids essential for the human body (“Soy Clothing Superior Softness”)

• Production does not pollute the environment

• 45% protein content, with 16 kinds of active minerals

• Supplementary agents are not poisonous

that moisturize and nourish the skin when absorbed

• farmers maximize all residues process for animal feed or

through the fabric

other agricultural practices (“Soybean Protein Fiber”)

• Non-allergenic,

• Soy protein fibers are spun from the leftovers of the soy food industry renders environmental impact minimal (“Eco Market”)






resistance against bacteria in its molecular structure (“Soybean Protein Fiber”).

Properties & Characteristics Luxurious appearance Soft, smooth, and lightweight Light-reflecting, lustrous Anti-wrinkle Better ventilation than cotton Higher breaking strength than wool, cotton or silk No shrinkage Anti-Bacterial UV Resistance protect from sun Color-fast, excellent dyeing properties Sunlight resistant Perspiration fastness Natural competitor to silk Easy to wash and quick to dry Damaged by high heat

Soy cashmere is ideal for baby clothes. Its luxurious softness is comfortable and safe for babies’ skin, while still providing breath-ability. and warmth retention equal to wool (“Combine Nature and Nurture With Soy Baby Clothes”). To fortify soy cashmere’s heat retaining capability, it can be blended with wool, which also reduces shrinkage and augments softness (“Soy Clothing Superior Softness”). Meanwhile, our cotton blends further enhance soy cashmere’s natural luster and drape, and allow it to dry quicker.

As always, follow the care labels attached to your garment. Soy clothing is easy wash and dries quickly. It is important to remember that high heat damages the fabric. For the most optimized lifespan, it is best to be gentle in washing soy cashmere pieces. No dry cleaning is necessary, and it is best hand washed or gently cycled in cold water with like colors. Additionally, soy cashmere clothing conserves energy as it does not require a dryer, instead its natural drying properties are optimized when garments are hang dried, or laid flat to dry. Soy cashmere garments can be ironed on a low setting without steam, although its natural drape does not require ironing. Its natural softness requires no chlorine bleach or fabric softener to attain (“Eco Market”) .


merino wool

Merino wool is exceptionally soft and naturally

breathable. It regulates body temperature and in addition to its remarkable warmth-to-weight ratio, merino wool retains warmth even when wet. The fibers are gentle and malleable, providing easy stretch to accommodate movement, and control odors. It is produced without the use of environmentally detrimental chemicals like • Composed primarily of Keratin, an insoluble protein with natural resistance to water, acid, mildew, and even sunlight chlorine, and in some of our products, it is blended with 100% recycled polyester, which increases durability, • Renewable and biodegradable • Farmers use excess wool fibers as natural fertilizers, since wicking and faster drying time. over time the keratin protein releases nitrogen-based • Comes from Australian merino sheep

nutrients and sulfur into the soil nourishes soil (“Renewable

• Lume carefully selects farms from fair-trade

CMSE Standard from CSIRO” 1-5).

compliant manufacturers • Sheep are unmulesed and organically fed to build healthy immune systems, resist hazardous parasites, and prohibit genetic modification

• Must meet the Global Organic Textile Standards (GOTS) as dictated by the international Textile Exchange for ecological fabrics • All practices of production must meet Bluesign Certification

• Pastures for these organic sheep do not use harmful

standards to reduce the quantity of water and energy expended

agricultural chemicals, and instead promote healthy

in production, and to minimize pollution through the use safe

soil, air, irrigation and humane treatment of the

dyes and finishes (“Fabric: Merino Wool Baselayers”).

animals (“Organic Wool”).


Organic merino wool is free of chemical residues; its insulating, moisture absorbing, and non-irritating capabilities render it perfect for regulating babies’ body temperature and maintaining comfort whilst their temperature contrivances are still nascent. In fact, medical research from Cambridge University shows that merino wool has a “sooth, swaddling effect on babies;” which results in reduced stress, better sleep cycles, greater overall contentment, and healthy ability to process nutrients and gain weight. Similarly, the British Medical Journal stated in 2011 that lying directly on lambswool blankets made babies feel more relaxed and decreases their stressed activity rate, thus allowing for more restful sleep and faster growth rates. • Untreated by anti-shrinking agents to avoid the use of In fact, many hospitals in the UK, Australia and New Zealand

hazardous chemicals, extra care should be taken in

lined incubators for premature babies and babies with low birth

washing garments. While hand washing in lukewarm

weight with wool pads for this reason ("Organic Wool").

water is ideal, clothing should be put on the gentle cycle with cold water if it is put in the washing machine, since if the water is too warm the garment will shrink. • Naturally soft this wool does not require any fabric softener. • Effectively dried by being hung up or laid flat. • Should not be bleached, and approved, safe liquid wool detergent should always be used (“Organic



ORGANIC COTTON Organic Cotton is grown using practices and materials with little impact on the environment, focusing on the renewal and maintenance of soil fertility, rejection of hazardous pesticides and detrimental fertilizers, and prohibition of genetically modified seeds. The process is monitored to ensure its positive impact on the environment, and according to Organic Exchange Farm and Fiber reports, production of organic cotton in only increasing in popularity, and now accounts for approximately .82 of the world’s cotton production (“Organic Cotton Facts”).

While traditionally grown cotton uses about 25% of the world’s insecticides and over 10% of pesticides, the closely monitored production of organic cotton aims to minimize these hazardous effects on the environment (“Organic Cotton: Growing Together”). In fact, according to the Textile Exchange, approximately 6.9 million pounds of chemicals are sprayed on cotton crops annually in the state of California alone. These chemicals in addition to the extensive use of man made fertilizers, additives in the soil, defoliants and other harmful substances affect the soil, air, water, and animals in the area (“Fabric: Organic

36 Cotton”).

• Known for its durability, comfort, and sustainability (“Organic Cotton Facts”) • Soft texture and breath ability • Unlike synthetic fibers, organic cotton does not pill, emit static, or age prematurely, and unlike conventional cotton, it does not retain any harmful toxic residues or finishes • Structural makeup is bound by cellulose, which gives cotton significant strength, durability, and absorbency. Biodegradable, can be blended with 100% recycled polyester to reduce its tendency to wrinkle • Lightweight but warm, with notable stability, ability to hold its shape, smoothness and moisture absorbency all contributes to its appeal for baby clothes (“Fibers: Cotton”).

In caring for garments made of organic cotton, it is important not to over heat them to avoid shrinkage and untimely deterioration. Drying with high heat can cause more then 4% shrinkage. Hang drying is most effective, and if using a dryer, it is best to use an air cycle with no heat. Maintenance of organic cotton product is easy, and uses very little energy.


HEATTECH • Mix of rayon and natural amino acids from milk protein • 20 million units sold in 2011 according to Uniqlo minimal carbon footprint • The 8 functions of HeatTech: heat





wicking; quick dry; anti odor; odor control; Heat Tech fibers offer an ideal solution for babies’ clothing. The fiber

stretchable comfort; and anti-static (“HeatTech

converts water vapor emitted from the body into insulating thermal

Japan Technology”).

energy. An air pocket, or layer of air, within the fabric acts to retain the heat and offer insulation against the cold. The fiber was created

• Heattech garments should be handled

by Fast Retailing, which has made its restricted chemical list public,

gently; machine-washed on a gentle cycle

and requires partners to comply with strict standards on restricted

with cold water and garments should not be

chemical substances. FR also requires partners to comply with a

put in the dryer.

code of conduct regarding the testing of hazardous substances in products and wastewater (“HeatTech Japan Technology”).


Product Development



Final Product Line Fabric: HeatTech Retail: $19.00 Cost:$5.50

Fabric: Organic Cotton Retail: $10.00 Cost:$3.50

Fabric: Organic Cotton Retail: $25.00 Cost:$8.75 44

Fabric: HeatTech Retail: $10.00 Cost:$5.50 Fabric: HeatTech Retail: $17.00 Cost:$5.07

Fabric: Organic Cotton Retail: $20.00 Cost:$3.30


Fabric: HeatTech Retail: $25.00 Cost:$5.13

Fabric: HeatTech Retail: $19.00 Cost:$5.50 Fabric: HeatTech Retail: $17.00 Cost:$5.07 Fabric: Merino Wool Retail: $22.00 Cost:$4.22 Fabric: Soy Cashmere Retail: $20.00 Cost:$4.00 46

Fabric: Merino Wool Retail: $15.00 Cost:$5.00 Fabric: Merino Wool Retail: $8.00 Cost:$3.50

Fabric: HeatTech Retail: $19.00 Cost:$5.50

Fabric: Organic Cotton Retail: $20.00 Cost:$3.30


Fabric: Soy Cashmere Retail: $20.00 Cost:$4.00

Fabric: Soy Cashmere Retail: $16.00 Cost:$3.71

Fabric: Organic Cotton Retail: $20.00 Cost:$4.00

Fabric: Merino Wool Retail: $25.00 cost:$5.20


Fabrics: Heattech Organic Cotton Merino Wool Soy Cashmere Components: Thread

List of Materials




Recycled Cotton Recycled Cotton 49

Environmental Impact Sustainable - Nike Score 50 Water Cost - $0.63 Energy Cost - $2.28 CO2 Emissions - .24% Waste - 0 Lbs / Week External Energy - $ 5.04


Non-Sustainable - Nike Score 40 Water Cost - $4.71 Energy Cost - $9.03 CO2 Emissions - 1.56% Waste - 1.25 Lbs/Week External Energy - $ 33.18




Our Heattech garments ranked a 50 on the Nike Design Tool, which is better, then the Acrylic Rayon that ranked a 40. Uniqlo’s Heattech is made of state-of-the-art materials so people can stay comfortably warm or cool at all times. Babies who wear these products will rely less on air conditions and heating. This material has eliminated the use of hazardous chemicals throughout the life cycle of all of its products. To wash the product, it can be machine-washed and line dried using less energy. Acrylic Rayon is made from chemicals breaking down wood and processed into a liquid. It is a very delicate material and needs to be cared for in order to maximize the lifespan. It takes a lot of energy to create these products. Heattech is made to be sustainable and made to last forever.


Organic Cotton

Organic Cotton:

Organic cotton garments will reduce worries about poisoning workers, contaminating water supplies or depleting soil nutrients. Our products are GOTS certified, which can assure you that it has been processed in an Eco Way. Our Organic Cotton scored a 70 on the Nike Design Tool which has the lightest impact on the environment. Other brands are using a cotton with PU laminate and scored a 50 on the Nike Design tool. In the care of our customer our organic cotton products can be basic washed in large loads using less water. We prefer these products are line dried, to save energy. Organic cotton uses as low as 10.6 gallons/pounds for rain fed cotton. Regular cotton uses about 200 gallons/pounds. In the end no process is without impact however we have to consider the positives and negative of the full life-cycle of the product rather then just a single factor, and we aim to reduce impact to the greatest extent possible.


Organic Cotton

Sustainable - Nike Score 70 Water Cost - $7.54 Energy Cost - $9.30 CO2 Emissions - 0.49% Waste - 0 Lbs / Week External Energy - $11.75 Non-Sustainable - Nike Score 50 Water Cost - $9.42 Energy Cost - $10.40 CO2 Emissions - 0.52% Waste - 1.25 Lbs/Week External Energy - $12.55


Merino Wool:

Merino Wool

Our products made from Merino wool scored a 55 on the Nike Design Tool. Our merino wool is wrinkle-resistant, doesn’t attract dust, and resists stains and odors, which means that it can go longer between washes. They can also be machine-washed and line dried. Our products benefit the environment, the animals and the farming communities. These wool products give enough exposure to the natural environment that it will ultimately break down to organic carbon. This won’t happen in the lifetime of the garment’s owner, but it is biodegradable. In the industry a lot of companies are using Wool with an acrylic laminate. This only scored a 40 on the Nike Design Tool and only ranked good within the environment. Many Wool farmers have grown the scale of their operations and outgrew the ability of the land to sustain them. This has caused soil erosion. Regular wool also uses a toxic chemical, which rids the sheep of parasites, which can harm the environment. When washing this wool you should normally soak them in water before you wash them. This can waste more water.


Sustainable - Nike Score 55 Water Cost - $5.65 Energy Cost - $ 10.40 CO2 Emissions -0.49% Waste - 0 Lbs / Week External Energy - $11.57

Merino Wool

Non-Sustainable - Nike Score 40 Water Cost - $7.54 Energy Cost - $14.40 CO2 Emissions - 0.73% Waste - 1.25 Lbs/Week External Energy - $ 15.13


Sustainable - Nike Score 55 Water Cost - $3.77 Energy Cost - $10.40 CO2 Emissions - 0.49% Waste - 0 Lbs / Week External Energy - $10.09

Soy Cashmere

Non-Sustainable - Nike Score 40 Water Cost - $9.42 Energy Cost - $15.05 CO2 Emissions - 0.73% Waste - 1.25 Lbs/Week External Energy - $16.80

Soy Cashmere:

Our soy cashmere products support Mother Nature by being grown without fertilizers, pesticides and herbicides. Fertility is added back to the soil rather then depleting it, making soy agriculture an ecologically sound option. It ranked a 55 on the Nike Design Tool vs. a 40 for Acrylic with a polyester coating. The soy proteins are extracted from the residual by-product of soybean oil or tofu production. This is recycling at its best. The soy protein is liquefied and is biodegradable. The pigment of the fibers makes it easy to dye and you can even use less dye. Acrylic Polyester wreaks havoc on the environment. The factories are responsible for massive amounts of air pollution and water pollution. The dying, washing, and chemical treatments waste large amounts of water. When being washed by the consumer, they are to be washed with warm water and machine dried at a low temperature. They also need to be ironed which uses more energy.


Entire Line Sustainable - Water Cost - $124.36 Energy Cost - $108.72 CO2 Emissions - 5.86% Waste - 0 Lbs / Week External Energy - $133.62 Non-Sustainable - Water Cost - $70.36 Energy Cost - $165.42 CO2 Emissions - 12.70% Waste - 20Lbs/Week External Energy - $277.04

Entire Line:

When it comes to the entirety of the Lume line, it provides you with more energy effective options for materials to save the most amount of energy and water. A conventional line of apparel wastes about $165.42 of energy and $70.36 in water, and emits an annual average of 12.70% CO2. On the other hand, Lume garments reduces energy costs to $108.72, water costs to$124.36, and external environmental costs at $133.62. Apparel overall totals just 5.86% carbon emissions per household, which is 6.84% less than a traditional line, as the brand is characterized by conserving energy in all processes and production. Furthermore, Lume refrains from the use of detrimental chemicals in treating fibers, using organic materials and natural processes that leave the most minimal carbon footprint on the environment. Our goal is to optimize the potential of sustainable materials and manufacturing practices, delivering a product that our customer will love and share with other and their surroundings.


Where will our product come from? Organic Cotton - Organic Cotton Plus -

HeatTech - Swicofil to Fabman Fabrics Japan to India


HeatTech is a protein fiber, derived from skim milk. The main components of this fiber are casein proteins, drawn from the milk. HeatTecht is manufactured by Swicofil in Japan, they spin protein fluid by means of a Bio-engineering technique. It is healthy against the skin, has good moisture absorption and conduction. Once the fiber is produced, the fabric is woven from a specially designed hollow fiber thread that traps pockets of warm air, insulating your body in the same way a heavier wool would, without the bulk. These hollow fibers trap pockets of warm air, insulating your body. HeatTech fabric includes a mix of rayon, and this milk protein fiber that is eminently chemicalintensive and polluting, to turn your body’s perspiration into heat. Fabman Fabrics has a specialty in sustainable fabrics. They practice corporate social responsibility and adhere to ethical labor guidelines. They concern themselves with safe, fair, legal and humane working conditions for all employees and recognize the value, effort and skill of each employee.

Organic Cotton Plus starts with seed preparation, making sure the seeds are GMO free then healthy soil is added. The soil retains moisture from increased organic matter. Once the fibers are harvested the warp fibers are stabilized using double-plying or nontoxic cornstarch and safe peroxide is used to bleach the cotton. In the finishing process the fabric is soft scoured in warm water with soda ash, for a pH of 7.5 to 8. If your product needs dye that process is low-impact fiber-reactive or natural dyes with low metal and sulfur content are used. If the cotton is printed low-impact, water-based inks and/or pigments are used with no heavy metals. The cost is slightly higher for Organic Cotton but the long-term advantages are priceless. In 1991, OCP became one of the first certified organic farms in the country. Today, through production both in the U.S. and overseas, they have increased their line of fabrics to include knits, Eco-­ dyed fabrics, notions, and much more. In addition, OCP became the first fabric retailer in the U.S. to be fully GOTS certified­right through packing in their warehouse.


Soy Cashmere - Fabman Fabrics - India Is a botanic protein fiber and made of Soybean cake which is derived after extracting out oil by means of bioengineering technology, it is then placed under distillation and spherical proteins are collected. The structure of spherical protein changes under the functioning of auxiliary agent and biological enzyme and converted into liquid protein. This liquid protein is

Merino Wool - Zenger - Australia

cooked & added with high polymers and finally converted into

Sheep are not harmed at all in the process of extracting their

fibers by wet spinning process. This fiber is further stabilized

wool. The wool is shaved from the sheep then carded and

and finally cut into short staples after curling and thermoforming.

spun, the yarn is technologically developed through advanced

Fabman Fabrics has a specialty in sustainable fabrics. They

fabrication methods. The Yarn is spun “low-torque”, which

practice corporate social responsibility and adhere to ethical

gives our garments a better handle, quality and consistency.

labor guidelines. They concern themselves with safe, fair,

Zenger is a licensed under “Australian Alpaca Association”.

legal and humane working conditions for all employees and

This represents an assurance of quality and reliability. Zenger

recognize the value, effort and skill of each employee.

is one of the largest wool product manufacturers in Australia. For Zenger, Australia is the world leader of the finest quality Merino wool, for this reason they source their most important raw material locally. Quality is at the forefront of Zenger’s business decisions. Hence many of their finished products are of the finest quality.


How Much Will it cost? 10 yds will be used of each fabric

Sourcing :


Texas to Savannah...$61.39 (Truck Freight)

HeatTech.................................$50.00 Organic Cotton......................$30.00 Soy Cashmere.......................$45.00 Merino Wool...........................$40.00

Japan to India.........$4,346 (have fta)

(Sea Freight)

India to U.S................$5,034 (have fta)

(Sea Freight)

Australia to U.S......$2,540 (have fta)

(Sea Freight)

Labor: (Per-Garment)

U.S..............................$1.70 India...........................$0.68 Japan........................$0.97 Australia..................$2.00

Components: Snaps.......................................$0.07 a piece


Buttons....................................$0.03 a piece


Elastic......................................$0.20 / YD


*See Appendix for Cost sheets

Engaging the Consumer

Worn, Washed, Cleaned How will it be worn: Our consumer will dress their baby in a variety of different outfits using our line. Our line is mix-and-match and can be warn many ways. The clothes will typically fit for a few months so they get their moneys worth. Our products maintain quality and can be passed on to friends.

How will it be washed: Merino Wool: We recommend that you wash your Lume garments on a normal warm or cool machine wash cycle with regular powder or liquid detergent, not wool detergent. Don’t use fabric softener or bleach. Separate lights and darks as usual. Also, do not expose any Merino garment to heat and do not tumble dry. Line dry for best results.


Pilling is a natural process that is inherent in merino fabric due to the fact that merino is a staple fiber. Generally if pilling occurs, it’s because the shorter fibers are working their way to the surface of the fabric. The best way to avoid pilling is to wash a new Lume garment within 3 wears. To alleviate the pilling, we suggest that you wash the garment with a coarser fabric such as denim jeans (ensure all zippers are closed). The fabric will improve over time as the shorter fibers are removed. Merino fibers have the characteristic of drawing moisture away from the body and either absorbing or releasing this moisture, which eliminates clamminess and ensures that the garments remain odorfree.

Heattech: Machine wash cold, gentle cycle Organic Cotton: Do not over heat your garments. Drying with high heat can cause more then 4% shrinkage. Hang dry and if using a dryer use air cycle with no heat. Product uses very little energy because they are all hang dry. Soy Cashmere: As always, follow the care labels attached to your garment. Soy clothing is easy wash and dries quickly. Just remember that high heat damages the fabric. To make any of your clothing last longer, it’s wise to be a bit gentle.

Soy protein fiber promotes health with it’s unique natural health functions. Soy silk fiber possesses amino acids essential for the human body. Vegetable cashmere is rich with 45% protein content in the fiber. It is said to contain 18 kinds of active minerals which aid in biochemistry when naturally absorbed through the skin.

How is it likely to be owned: Our products are high quality and long lasting. We hope our consumers take advantage of their lifespan and pass them down to friends or future children.

- No dry cleaning is necessary - Hand wash or gently cycle in cold water - Wash dark colors separately - Hang or lay flat to dry Vegetable cashmere garments can be ironed on a low setting without steam.


Life after consumer How will product be disposed: When our consumers are done using the product they have many options for what they can do with our product. First: They can pass the product down to a friend or a new child. Because of the durability and long life our products hold. If not passed down to friends, we hope our consumers will donate our products to goodwill. Many people can’t afford lots of baby clothes and these warm clothes being available at a discounted price will be helpful within communities.



Derived from a recyclable milk protein fiber, HeatTech

Organic Cotton

capabilities, but a recent study it has determined that the

Recycled helps reduce the harsh dyes, energy, water and

insulating qualities can help save around 580,000 KW

human labor required. Recycling discarded fibers also helps

of electricity and can reduce carbon emission by 1.04

divert millions of tons of textile waste entering our landfills

Metric tons.

each year.

is still in the testing process to determine its recycling


Merino Wool Wool is made of an insoluble protein called Keratin, with a cross-linked structure that makes it naturally resistant to water, acids, mildew, and even sunlight. According to Australia’s top research institute, CSIRO, wool is only susceptible to a few specific insects, such as carpet beetles and webbing clothes moths, so the garments won’t degrade while you’re wearing it if you keep it clean and stored in a dryer environment. In soil, however, mildew and rot allow micro-organisms to attack the weak points of Keratin’s crosslinked structure. Wool then biodegrades over time, slowly releasing nitrogen based nutrients and sulfur into the soil that can be as good as some fertilizers.

Send back to us:

We are going to offer a 4th and best option to send your product back when you are completely done using it. With the fabric that we get in return, we are going to make little stuffed animals that will be donated to Project Night Night which provides Night Night Packages, free of charge, to homeless children from birth to pre-teen who need our childhood essentials to feel secure, cozy, ready to learn, and significant. Each Night Night Package contains a new security blanket, an age-appropriate children’s book, and a stuffed animal all nestled inside of a new canvas tote bag. Project Night Night establishes a foundation for lasting change through the handson volunteer opportunities that we provide to tens of thousands of individuals each year.

Soy Clothing made from soy are also biodegradable, and hence minimize pollution when discarded in landfills.



Logo, hang-tags, labels, Packaging This product is made with:

Organic Cotton Moreno Wool Heattech Technology A sustainable and self-insulating clothing line giving back to those less fortunate.

The sun represents the idea that flowers need sun to grow and babies need the warmth to grow. Our name “LUME� embody the sense of warmth given from light.

Branding cost included in above costing. Page 62

Soy Cashmere

Our Hang tag will be made from Recycled cotton, listed on the back will be what the garment is made of, Our products will be made with a mixture of the 4 fabrics listed on this hang tag.


LUME Machine wash/ cold/Gentle Cycle/Tumble Dry Normal

0-3 Our tag will be made from Recycled cotton, with size and maintenance directions on the tag.

Our packaging will consist of a reusable bag, so this bag could be used for everything from groceries to a baby bag for carrying all your babies needs.


Our hangers for this line will be made of recycled cardboard.

Conclusion & Appendix

As a brand, we feel that Lume has the opportunity to provide sustainable children’s wear in an already thriving industry segment. With the rising demand of parents to know that their children’s clothing is safe and environmentally friendly, Lume ensures that its product contributes the global community in a positive way, even after babies outgrow the clothes. Emphasizing re-usability, recycling, and donating to causes that benefit children (Project Night Night), Lume strives to deliver beneficial and ethical products and processes alike. Tapping into the psychographics of present-day consumers, Lume is differentiated from its competitors by its focus on the vitality of the longevity of our product’s life cycle, and consideration for our children’s futures in a safer world. The impact our brand has on the environment is very little in comparison to other brands such as gap kids. We strive to make sure that the materials that are put into our clothing as well as the manufacturers are the best they can be to our environment. Our materials do not require hazardous chemicals to give them the heat retaining quality and can all be line dried reducing the use of excess energy. The afterlife of our product requires very little effort with a huge impact on waste. Our materials are either biodegradable, or recyclable giving them more then one purpose, plus we give them a second chance here at Lume along with giving back to the community. Most children’s brands use materials such as rayon, non-organic cotton and wool, which harm the environment in production. The quality of the clothing within our competitors is often less cheap which gives consumers no other option other then to throw away the apparel. We have priced our products at a very similar price to our competitors. This gives us an advantage, because we have quality, sustainability, price and value to our benefit when our consumers are shopping. Our prices are what our competitor looks for while shopping and because of our interchangeable line of clothing, it gives consumers a reason to purchase more items. In general, the consumer may not be saving any money by purchasing our product, however, they are protecting the environment, and giving back to the community through project night night. We hope that our consumers will be loyal and help spread the awareness of our brand. We want them to continue to shop from us for baby gifts, future children, and other needs. We are here for them, and they are here for us.

Appendix Cost Sheets


LUME Cost Sheet Description: Children's Wear

Season: S/S 14


$/yard* Yield** Total $5.00 0.808 $4.04



$4.04 Units

Buttons Thread Size Label TOTAL COMPONENT COSTS


Hangtag and price ticket Size Ticket


TOTAL PACKAGING COSTS LABOR Per-Garment TOTAL LABOR OTHER Freight 40 ft Duty Broker Inland Insurance Margin TOTAL OTHER

$/unit Quantity** $Total 1 $0.03 1.010 0.0303 225.61 $0.00126 0.2843 1 $0.03 1.010 0.0303 $/unit Quantity $Total 1 $0.05 1.01 0.0505 1 $0.04 1.01 0.0404

10 Min

Per Entry Per trip

Avg Retail Price $18



Cost/Min $Total 0.14 1.4000 Cost $Total $4,346 $0.2200 Duty-Free $250 $0.0200 $167 $0.1600 Avg Cost








72% $0.40 $5.07

Organic Cotton LUME Cost Sheet Description: Children's Wear

Season: S/S 14


$/yard* Yield** Total $3.00 0.707 $2.12

Organic Cotton


$2.12 Units

Buttons Thread Size Label TOTAL COMPONENT COSTS


Hangtag and price ticket Size Ticket


$/unit Quantity** $Total 1 $0.03 1.010 0.0303 225.61 $0.00126 0.2843 1 $0.03 1.010 0.0303 $/unit Quantity $Total 1 $0.05 1.01 0.0505 1 $0.04 1.01 0.0404

TOTAL PACKAGING COSTS LABOR Per-Garment TOTAL LABOR OTHER Freight 40 ft Duty Broker Per Entry Inland Insurance Per trip Margin Avg Retail Price $18 TOTAL OTHER


Cost/Min $Total 0.17 1.0100 Cost

$Total $61 $0.1900 Duty-Free $50 $0.0200 $40 $0.1600 Avg Cost $3.1000








83% $0.37 $3.10

Merino Wool

LUME Cost Sheet Description: Children's Wear

Season: S/S 14


$/yard* Yield** Total 4.00 0.808 $3.23

Merino Wool


$3.23 Units

Buttons Thread Size Label TOTAL COMPONENT COSTS


Hangtag and price ticket Size Ticket


TOTAL PACKAGING COSTS LABOR Per-Garment TOTAL LABOR OTHER Freight 40 ft Duty Broker Inland Insurance Margin TOTAL OTHER

Quantity** $Total $/unit 1 $0.03 1.0100 225.61 $0.00126 1 $0.03 1.0100

$/unit Quantity $Total 1 $0.05 1.0100 1 $0.04 1.0100 Cost/Min $Total 0.1500

Per Entry Per trip

Avg Retail Price $18








0.051 0.040


Cost $Total $2,540 0.190 Duty-Free $250 0.020 $167 0.160 Avg Cost


0.030 0.284 0.030


77% $0.37 $4.19

Soy Cashmere

LUME Cost Sheet Description: Children's Wear

Season: S/S 14


$/yard* Yield** Total $4.50 0.606 $2.73

Soy Cashmere



Units Buttons Thread Size Label TOTAL COMPONENT COSTS


Hangtag and price ticket Size Ticket


1 225.61 1

1 1

TOTAL PACKAGING COSTS LABOR Per-Garment 10 TOTAL LABOR OTHER Freight 40 ft Duty Broker Inland Insurance Margin Avg Retail Price TOTAL OTHER


$/unit Quantity** $Total $0.03 1.010 0.0303 $0.00126 0.2843 $0.03 1.010 0.0303 $/unit Quantity $Total $0.05 1.01 0.0505 $0.04 1.01 0.0404


Cost/Min $Total 0.14 1.0100

Per Entry Per trip $18

Cost $Total $5,034 $0.2100 Duty-Free $450 $0.0400 $300 $0.1800 Avg Cost $3.7300








79% $0.43 $3.73


Just Style. “NPD Group: Apparel market up 4% in 2011.” MrketPlace. Business Journals, Inc., 3 Apr 2012. Web. <>. “Labor Statistics: Fashion.” Bureau of Labor Statistics. United States Department of Labor, n.d. Web. <>. “NPD Group Reports Kidswear Grew in the Double Digits.” NPD Group. NPD Group Inc., 21 May 2013. Web. <>. “Organic Cotton Facts.” Organic Trade Association. Organic Trade Association, n.d. Web. < html>. “Organic Wool.” Nature Baby. Nature Baby, n.d. Web. <>. “Research & Markets: 2013 Global Children’s anResearch & Markets: 2013 Global Children’s and Infants Clothing Stores Industry Market Report.” MrketPlace. Business Wire, Inc., 7 Aug 2013. Web. < >. “Renewable & Biodegradable Wool.” Renewable CMSE Standard from CSIRO. (2013): 1-5. Web. 14 Oct. 2013. < Standard.pdf>. “Soy Clothing Superior Softness.” Cool Organic Clothing “Care What You Wear...”., n.d. Web. <>. “Soy Fabric.” The Eco Market., n.d. Web. <>. “Soybean Protein Fiber.” Swicofil. Swicofil: Passion for Success, n.d. Web. <>. “Textile Sourcing: Soy Fabric.” StartUp Fashion . StartUp Fashion, Inc., 6 Aug 2013. Web. <>.


“Children’s Apparel Industry.” Prezi. Prezi, Inc., 5 Nov 2012. Web. < >. “Children’s Apparel Industry Report.” Herald Tribune. Herald Tribune Publishing, n.d. Web. <>. “Children’s & Infant’s Clothing Stores in the US Market Research Report.” IBISWorld. IBISWorld, Inc., n.d. Web. < . htm>. Christian, Bonnie. “Green Fashion Industry: Why Is It So Hard To Be Ethical .” Huffington Post.,Inc., 22 Dec 2011. Web. < >. “Combine Nature and Nurture With Soy Baby Clothes.” Cool Organic Clothing “Care What You Wear...”. Cool-Organic, n.d. Web. < html>. “Eco-Friendly Children’s Clothing.” Green America. Green America Network, n.d. Web. <>. “Fabric: Merino Wool Baselayers.” Patagonia. Patagonia, Inc., n.d. Web. <>. Fabric: Organic Cotton.” Patagonia. Patagonia, Inc., n.d. Web. < >. “Family Clothing Industry Retail Trade Report.” HighBeam Business. Cengage Learning, Inc., n.d. Web. < >. “Fibers: Cotton.” AHA Bolivia Ethica Manufacturing. AHA Bolivia, n.d. Web. <>. “Global Children’s Wear Market.” PRWeb. Vocus PRW, LLC., 13 Jan 2011. Web. <>. “HeatTech Japan Technology.” Uniqlo. Uniqlo Co., Ltd., n.d. Web. <>. Huebsch, Russell. “ Negatives About the Children’s Clothing Industry.” Chron Business. Hearst Corporation, n.d. Web. <>.