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Green Design – The Company
Green Design Group LLC, “Green” or “The Company” was formed on March 1, 1997, after operating as a sole proprietorship for three years. The Company is located at 150 Morris Avenue, Springfield, New Jersey, 07081.
Green is a marketing and design firm headed by Margaret R. Green. She brings over eleven years experience as a leading apparel designer in the active sportswear market. The Company has established clients and contacts. Revenues for 1996 were $150,000.
Green Design Group LLC seeks to leverage its track record of product sales and establish a presence in product manufacturing to offer clients a complete package, including: (1) apparel marketing development, (2) apparel design and development, (3) sourcing, (4) manufacturing and (5) importing. The Company provides concepts and creativity along with the expertise and know-how to design, manufacture and import apparel products to increase brand recognition and sales.
Potential customers are defined in three target groups: (1) Sport apparel companies which desire to broaden their apparel product range, (2) Retail distribution outlets which desire to purchase private label apparel concepts and (3) Established consumer brands which do not currently provide apparel and accessory products for their consumers.
The first group of clients to be targeted are sport apparel companies seeking a design consultant for their apparel collections. These customers outsource the concept development and design of their apparel and accessory products. They seek design expertise to (1) spearhead design and development of their apparel product collection, (2) complement in-house design and development services and (3) create new apparel collections to complement their existing businesses. Green has a proven track record in increasing productsales and a particular expertise in the design and development of sports licensed products and outerwear products which is valuable to sport apparel companies seeking to enter these lucrative and growing apparel sectors of the sports market.
The second group of targeted clients are retail distribution outlets which seek to sell private-label merchandise designed and developed exclusively for their stores. These clients include sporting good chains and department store chains with more than 20 outlets. These stores can build equity in their brand names, by selling private-label merchandise which has high gross margins and which offer customers high quality products priced lower than nationally advertised brands. For retail chains, contracting private-label merchandise of commodity products is a proven business strategy resulting in increased gross margins and brand recognition. Upon reaching sales objectives in commodity products, retail chains increase its product assortment to include merchandised apparel and accessory private-label collections.
The third group of targeted clients are established consumer brands not currently marketing apparel and accessory products to their consumers. They seek a tactical alliance in which Green Design Group LLC develops and implements the creative direction, product development and manufacturing of their line extensions. These customers have expertise in related sports product lines, such as footwear, accessories or hard goods, e.g. golf clubs, in-line skates or soccer athletic shoes. Customers choose to outsource these services rather than add the infrastructure within their companies. Unlike licensing, however, they desire to retain the sales and marketing functions of their apparel lines often using the same channels of distribution.
Also among the third group of targeted clients, are corporations which use apparel and accessory products in corporate promotional and marketing programs. Green develops a corporate identity in apparel and each program is exclusively manufactured to meet the needs of the corporate client.
Revenues are derived in three ways: (1) design consulting fees, (2) design royalty fees and (3) production commissions.
Consulting fees for apparel design begin at $55,000 per season. Green Design Group LLC assists in defining marketing programs and sales projections. Green tailors product design and development to fulfill these marketing and sales objectives.
Design royalty fees are a means in which a client can secure the services of Green Design Group LLC without paying the above mentioned design fee. Royalties vary from 1% – 5% of gross product sales depending upon the up-front fee. Currently, Green has one such arrangement. This could also include warrants and equity in a start-up company in exchange for design services.
In addition, royalty fees are collected when Green initiates the marketing and concept development of new apparel products. As in a joint venture arrangement, Green provides the product expertise and another company provides financing, sales and marketing. Green earns a percentage of sales and currently has one such arrangement.
Production commissions are earned by managing the production of apparel and accessory products. Fees range from 4% – 20% of the FOB (Freight-On-Board) cost. Actual fees depend upon the extent of the client’s involvement in the financing and importing processes.
New business development with sport apparel companies will concentrate on customers which also require production and manufacturing assistance. This is a separate business activity and will be paid in addition to the design fee. Production commissions will be 4% of (FOB) prices. Green acts as the production agent in securing manufacturing facilities, insuring quality standards and guaranteeing on-time deliveries.
For retail distribution chains, production commissions will be 20% of the FOB price. This includes research and development expenses, concept proposals and design fees. For promotional programs, product prices will be 25% of the FOB. These customers are not likely to be repeat customers. Promotional products are part of a marketing campaign or customer loyalty program and change as new marketing programs are initiated. (See Appendix B which illustrates the pricing structure compared to a traditional branded apparel company.)
|Green Design Group, LLC|
|Table of Contents||Appendices|
|1. Executive Summary
3. Product & Services
5. Sales & Marketing
8. Historical Financials
9. Projected Financials
Projected Income Statements
Projected Cash Flow Statements
Projected 4 Year Income Statement
Resume & Business
|© Green Design Group LLC. April 1,1997.|