S-HAPPY

SHAPEWEAR PRODUCT
Business Proposal
TABLE OF CONTENTS
INTRODUCTION ............................................ 3
1. Importance of Export ............................... 4

2. Research Methods ................................... 5

3. Evaluation Resources Needed ................... 6

4. USA Rules That Restrict Exports .............. 7

5. Market Segmentation ............................... 8

6. Product Standardization Or Preparation ..... 9

7. Price Strategies ..................................... 10

8. Method Of Export ................................. 11

9. Middlemen Used ................................... 12

10. Mode Of International Transportation ..... 13

RECOMMENDATIONS ................................. 14
CONCLUSIONS ............................................ 15
REFERENCES .............................................. 16

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S-Happy
Business Proposal

INTRODUCTION

S-happy designed with comfort in mind. This can be seen from the use of fused seam
technology, where the silhouette-forming clothing of the body is made without stitches. The
stretch material used feels smooth and soft, but is very powerful in confirming the body's
silhouette.

S-happy is engaged in trading which sells various types of shapewear. In the future this
product aims to reach the international market, especially in America. According to a survey of
90 percent of women have never been confident in their appearance. They need body
shapewear, which can form the waist, hips, chest, thighs and shoulders.

The objective of this report is to to explain s-happy products as beauty partners for women all
over the world, specifically in New York. The scope of this report is intended mainly for the
export market to adjust the product vision.

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Business Proposal

1. IMPORTANCE OF EXPORT

Export can grow at the intensive (the growth in the value of existing products) and extensive
margin (the increase in the number of export lines). Accordingly, export diversification can be
captured along the margins: a more evenly spread of the export basket is an indication of
diversification at the intensive margin, while the greater number of export lines indicate
diversification at the extensive margin (Cadot, 2009).

Factors that can encourage producers or business players to carry out export activities include
(Directorate General for National Export Development, 2020):
a. Traditional Commodities
Usually, a company produces a commodity as a continuation or remnants of the colonial
economic era.
b. Optimizing Profit
In addition to selling a product in the country, with exports, a company can expand its sales
area to overseas.
c. Market Search
For companies that have strong domestic markets, exports are an opportunity to diversify
markets that can strengthen the position of traded commodities.
d. Utilization of excess capacity (Excess Capacity)
If the production capacity of an industry still does not exceed the capacity of the machine
then the remaining capacity (idle capacity) can be used to meet the export market.
e. Export Oriented Products
There are labor-intensive industries that are deliberately moved from industrial countries.
f. Trading House
Trading House will help exporters analyze the market or identify Buyers and provide other
useful information related to market conditions
g. High Competitiveness Commodities
Products made from Indonesian origin and have their advantages (absolute advantage) or
other products that have comparative advantages have the opportunity for the export
market.

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Business Proposal

2. RESEARCH METHODS

According to Internationale Weiterbildung und Entwicklung gGmbH (2020), export market

research is the process of gathering and evaluating information in the target foreign market
with the objective of identifying market opportunities and constraints. A company may research
a market by using either primary or secondary data sources.
a. Primary market research, is when data is collected directly from the foreign market place
through interviews, surveys and other direct contact with representatives and potential
buyers or customers. The advantage of primary market research is that it is tailored to the
company's needs and provides specific answers to specific questions. The main
disadvantages are that it is time-consuming, more complex and expensive.
b. Secondary market research, is when a company collects data from various ‘secondary’
sources, such as trade statistics for a country, trade magazines, the Internet, published
business articles, etc. This method is also known as Desk Research. Obtaining information
from secondary sources is less expensive and helps the company to weed out unpromising
markets and therefore enables the company to focus its marketing efforts on few selected
promising markets. The main disadvantage of secondary data sources is that the
information may not be reliable because it may either be outdated, not specific to your
business needs or distorted by incomplete data-gathering techniques.

However, having decided to undertake an export market research two factors will have to be
taken into consideration:
a. Whether to use desk or field research or both?
i. Information on the target market may be collected through desk research using
secondary data.
ii. Field research entails visiting the country one wants to export to. It may be costly but if
prepared well it can be very effective in collecting useful information. The field research
may be undertaken after the results of the desk research have indicated the possibility
to export to the target market.
b. Where to source the information from?

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Business Proposal

3. EVALUATION RESOURCES NEEDED

In export activities there are several documents that must be completed. According to Susilo
(2013), documents that must be prepared at the time of export activities are as follows:
a. Shipping Instruction (SI), a document that contains the work order to the freight to
transport goods exporter's exports.
b. Commercial Invoice, documents or bills of money issued by exporters addressed to
importers.
c. Packing List, packaging documents that indicate the number and type of weight of the
goods to be exported and are an explanation of the description of the goods mentioned in
the commercial invoice number.
d. Notification of export of goods, Exporters are required to notify the goods to be exported
to the customs office. The management of PEB at the customs office can be carried out by
the exporter or to the Customs Service Management Company (PPJK), which is a business
entity that carries out customs activities for and with the authority of the importer or
exporter.
e. Bill of Lading (B/L), a letter or document issued by the shipping line or freight forwarder
for each shipment of export goods. Bill of lading is usually issued on the date of departure
of the ship, bill of lading serves as evidence to take goods at destination and also as an
attachment in the process of making COO (Certificate of Origin)
f. Certificate of Origin (COO), or commonly known as certificate of origin is a document
made by the exporter and included when sending or exporting goods to a certain country,
where the recipient country has agreed to an agreement to provide goods from the country
of origin to enter the destination country.

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Business Proposal

4. USA RULES THAT RESTRICT EXPORTS

According to US Export Laws, methods of testing the level of ease of textile and garment fire,
and used grouping fabric into 3 classes based on the speed to burn. These minimum
standards stipulate that the textiles used in clothing must meet the class 1 or 2. Textile grade
3, the most dangerous flammable fabrics, it is forbidden to be traded and used by consumers.

S-Happy products are guaranteed safe. Basically, S-Happy is designed based on four
principles:
a. Functional, as a body shaper to clarify body silhouettes, streamline body silhouettes, and
increase self-confidence.
b. Comfort, where the products are made with Lycra material Beauty soft but strong, elastic
and fits in the body.
c. Fused seams technology, that does not use stitches so that there are no bone traces on
the outerwear.
d. Sexy and young design.

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Business Proposal

5. MARKET SEGMENTATION

The market of shapewear has been divided based on distribution channel into store-based and
non-store-based.
a. The store-based segment which is expected to dominate the shapewear market during the
assessment period due to higher market visibility and penetration. The market players are
expected to expand through mergers and collaborations to new locations globally giving
rise to more store-based retail in the future.
b. The non-store-based segment which is online shopping, is expected to grow fastest due
increasing internet penetration and ease of buying. Increasing disposable income and
growing athleisure market is expected to further help the market growth during the forecast
period.

Globally, the market of shapewear is getting popular among women day by day with more
females longing for toned looks and aesthetics physique without going to gym and dieting due
to lack of time and work pressure. Lightweight fabrics, evolved garment design, celebrity
branding attributes to rising demand of shapewear among women.The global shapewear
market has been segmented based on type, distribution, channel, and region. By type the
market is segmented into body briefs, seamless, controls camisols, long legs, corsets, body
shapers, and others. US is included in The North American Shapewear Market.

U.S. is the largest revenue generating country in the global compression wear and shapewear
on account of presence of large number of lifestyle users and extensive popularity of athletics
and other sports. Women generate significant revenue in the shapewear segment in U.S.
whereas men are prominent consumers of compression wear market. Several product
developments have been implemented by the marketers in the region. Compression bottoms,
sleeves, shirts and socks & others are among the most popular compression wear products in
U.S. while waist cinchers, bodysuits, briefs and others are among popular shapewear.

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Business Proposal

6. PRODUCT STANDARDIZATION OR PREPARATION

To enter the market of the New York, Indonesian export products must pay attention to the
quality standards and systems in New York. New York imposes a national standard called New
York Standards. However, there are some international standards that can be a reference for
imported products in New York. The international standards that can be a reference are: ISO
(International Standardization Organization), IEC (International Electrotechnical Commission),
ASTM (American Society of Testing Materials), EN (European Norm), DIN (Deusche Industrie
Norm), and NF (Norm Francaises). For this shapewear products there are several
standardization that we follow:
a. The New York Certification (KC) mark is a mandatory certification that must be seen on
shapewear, as stated in the Self Regulatory Safety Confirmation Act or the Safety Quality
Act of the Quality Control and Safety Management of Industrial Products Law.
b. Imports of banned retail products are spun silk and silk yarn. Fabrics with silk material with
a content of less than 85% can be imported but only with the approval of the bank and the
approval of the New York Export Import Association of Textiles, which has become an
institution that controls the trade in silk products (silk).
c. Textile (included shapewear) products for babies (under 36 months) (including outerwear,
underwear, shoes, handkerchiefs, hats, t-shirts, skirts, pants, sleeping pads, etc.) and
accessories for children following the Self Regulatory Safety Confirmation standards Act
Manufacturers and importers for these products must carry out tests at authorized
inspection and testing institutions. These products must meet the standards required to
issue NYC marks and import or sell in New York.
d. Textile products in direct contact with leather, leather products and carpets related to the
Safety Quality Mark Act.

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Business Proposal

7. PRICE STRATEGIES

Prices on the international market are not engraved on stone, they must be evaluated at
regular intervals and adjusted if necessary. Likewise, pricing objectives may vary depending
on the product life cycle stage and specific competitive situation. The four price approaches
most often encountered are market skimming, market penetration, market holding, and cost-
plus pricing method. In setting the selling price, our company always tries to set prices that can
be reached by consumers. The selling price is influenced by the cost of goods, costs and
profits desired by the company. The method of determining the selling price of products used
by this company is to use the Cost Plus Pricing method, which is to add up the cost per unit
with an amount to cover the desired profit on the unit. The selling price of the product is
determined by adding a number of benefits to the costs of production. These costs include
promotional costs, salary costs and administrative costs. In determining this price, the
company also considers several factors, namely consumers, raw materials, workers,
production value, art value, time of work completion.

Companies that are involved in exports often use a strategy called cost plus pricing strategy to
gain a foothold in the global market. There are two cost plus pricing methods. The older
method is the historical cost accounting method, which determines the sum of all direct and
indirect manufacturing process costs and general and administrative costs. An approach that
has been recently used is recognized as an estimated future cost method.

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Business Proposal

8. METHOD OF EXPORT

The method used in the export of shapewear is a Letter of Credit (L / C). Letter of Credit (LC)
is a transaction guarantee letter issued by the LC issuing Bank, in this case referred to as the
Issuing Bank in which the Bank is located in the country of origin of the importer and forwarded
to the exporter / seller, in this case referred to as Beneficiary through a Bank appointed in the
country of the exporter originating, in this case the Bank is referred to as advising / conforming
bank. The payment method that is commonly used in import and export trade is by opening an
L / C, because both exporters and importers can feel secure that their rights have certainty. A
simple process is also a consideration that can be used as a reason for the use of L / C in the
payment of international trade transactions. The process that will be carried out in the export of
shapewear products are:
a. An agreement between the importer and the exporter occurs, which is usually set forth in a
sales contract or other media agreement.
b. The importer submits an application for opening the L / C to the Bank that will issue
(Issuing bank) at the request of the Exporter.
c. Issuing Bank, as the guarantor bank, gives the guarantee to the exporter, so that in this
process the role of the issuing bank changes to become advising bank. In practice, given
the distance between the issuing bank and the exporter which is usually in a different
country, the issuing bank can ask another party / bank as an advising bank but in concept,
the issuing bank can directly contact the exporter related to the L / C to the exporter If
possible.
d. The exporter who has received the L / C carries out the shipment of goods and makes the
documents required by the L / C.
e. The exporter submits the documents to the issuing bank to obtain payment and the issuing
bank also makes payments to the exporter based on the submission of documents in
accordance with the requirements and agreements of all parties.
f. The issuing bank bills the payment to the importer by submitting documents and the
importer makes payment to the issuing bank to obtain documents for the release of goods.

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Business Proposal

9. MIDDLEMEN USED

According to Kotler and Armstrong (2001) middleman are defined as follows: Middleman is a
distribution channel firm that helps company find customer or make sales to them. So the
intermediary is a liaison between producers and consumers where intermediaries buy goods
from producers and sell them to consumers or industrial users. The core of intermediary
operations (brokers) lies in an active and important role in negotiating everything that concerns
the purchase and sale of goods and is expected to be active with retailers or intermediaries
expected to increase sales volume.

For middleman, our company will use merchant middleman like regular wholesaler that located
in New York. Reasons why we chosen regular wholesaler as middleman because they are full
function middleman; they can sell to retailers of consumers, can buy a lot from the
manufacturer, the risk is borne since the goods leave the factory

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S-Happy
Business Proposal

10. MODE OF INTERNATIONAL TRANSPORTATION

Choosing the right method of transportation is essential for successful exports our shapewear
company ensure that products arrive in New York on time and at the most economic cost. To
ship our products from Indonesia to New York, our company uses sea shipping services. Most
of the products exported from Indonesia to New York are transported by sea. This is ideal for
large items, bulk commodities, and non-urgent or inexpensive goods. Canada has a large
container port called New York and New Jersey. Shipping from Indonesia to New York by sea
usually takes about 30 days, but delays are quite common. Routes with multiple transshipment
can cause delays, so we will provide extra deadlines for their products to be shipped to New
York. Given New York’s vast territory, our company will consolidate shipments to the country’s
two main consumer markets and downtown city - Manhattan, and Brooklyn. Goods are usually
sent to these two cities by train. Delay in transporting goods in New York is not uncommon,
especially between November and April, when snow and bad weather can slow things down.

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Business Proposal

RECOMMENDATIONS

Based on the findings of this proposal, recommendations that can be submitted for exporting
S-Happy products as follows:
a. The research method that can be used in exporting S-Happy products is using secondary
market research, because obtaining information from secondary sources is less expensive
and helps the company to market out unpromising markets and therefore enables the
company to focus its marketing efforts on few selected promising markets.
b. All of the documents that needed must be prepared at the time of export activities, because
before conducting export companies must prepare and complete all the necessary
documents.
c. The product design should match the needs of the target market and are not included in the
textile grade 3.
d. The market of shapewear for U.S preferably use online shopping because it is expected to
grow fastest due increasing internet penetration and ease of buying.
e. Shapewear products preferably using the form midman retail/famous agent in New York,
for marketing in New York can not always be controlled, so as to cooperate with midman
can streamline marketing activities and products can be outbid.
f. Shapewear products should have certain characteristics and qualities that are not owned
by other similar products, so they have a unique value compared to those already on the
market.

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Business Proposal

CONCLUSIONS

Based on the recommendation of this proposal, the conclusions that can be drawn as follows:
a. The research method that can be used in exporting S-Happy products is using secondary
market research.
b. All of the documents that needed must be prepared at the time of export activities.
c. The product design should match the needs of the target market.
d. The market of shapewear for U.S preferably use online shopping.
e. Shapewear products preferably using the form midman retail/famous agent in New York.
f. Shapewear products should have certain characteristics and qualities that are not owned
by other similar products.

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REFERENCES

Cadot, O. 2009. Export Diversification: What's behind the Hump?. Revised version.

Directorate General for National Export Development. 2020. Mengapa Ekspor.

(http://djpen.kemendag.go.id/app_frontend/contents/74-mengapa-ekspor). Accessed on
31st January 2020.

Internationale Weiterbildung und Entwicklung gGmbH. 2020. An Export Guide for SMEs in
Southern Africa. TRADE AFRICA Trade Promotion Program.

Kompas. 2012. Body Shapewear, Langsing Dalam Sekejap.

(https://lifestyle.kompas.com/read/2012/11/09/23585499/Body.Shapewear..Langsing.da
lam.Sekejap). Accessed on 31st January 2020.

Kotler, P. and G. Armstrong. 2001. Principles of Marketing. Prentice Hall.

Market Research Future. 2020. Shapewear Market Research Report – Global Forecast till
2023. (https://www.marketresearchfuture.com/reports/shapewear-market-7273).
Accessed on 31st January 2020.

Susilo, A. 2013. Panduan Pintar Ekspor Impor. Jakarta: TransMedia.

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