T H E W O R LD - LEAD I N G APPAR E L MAN U FAC T U R I N G PAR T N E R SMART PARTNER IN APPAREL INDUSTRY SINCE 2004 2014 COMPANY BROCHURE (ENG) 1 1 LEUKON AT A GLANCE 2 COMPANY HISTORY 3 PRODUCTION FTY 4 BUSINESS AREA ❶ KNITWEAR BUSINESS ❷ SWIMWEAR BUSINESS ❸ SEAMLESS BUSINESS ❹ FABRIC BUSINESS 2 1 LEUKON AT A GLANCE ❶ INTRODUCTION Headquartered in Seoul since 2004, Leukon has been loyal to seamless industry in cooperation with many of domestic/international retailers, and cultivated its reputation of professions from all our clients who worked with us. From the very beginning of business, our goal was to advertise unique benefits of seamless wear in worldwide. We believe high-repurchase rate in the market proves end consumers’ satisfaction of what seamless wear provides on their body. GENERAL BUSSINESS CONTACT : JIN KIM (Direct) +82-2-70-4323-2378 (Email) jinkim@LEUKON.co.kr Based on the expertise of seamless technology and stable manufacturing system, LEUKON strives to become one of the leading sports/active wear manufacturers who offers a customer an opportunity to enhance the beauty of her body FABRIC CONTACT : JONG JIN PARK (Direct) +82-2-70-4742-5651 (Email) godar@qfkorea.co.kr SEAMLESS CONTACT : TONY LEE E-MAIL: oiolee@leukon.co.kr , DIRECT:+82-70-4323-8334 SWIM/ACTIVE CONTACT : EDDIE KIM, E-MAIL: eddiekim@leukon.co.kr , DIRECT:+82-70-4659-4329 1 LEUKON AT A GLANCE ❶ INTRODUCTION We, the professionals in apparel business, aim at prompt and exact communication with the tangible results to our buyers. ESTABLISHMENT DATE JULY 15TH, 2004 CEO KYU-SEUNG AHN BUSINESS AREA ALL TYPES OF KNIT PRODUCTS LOUNGEWEAR SEAMLESS WEAR JACKET SKIRTS PANTS SWIMWEAR POLO SHIRTS T-SHIRTS ETC JQD (SINGLE, DOUBLE) ENGINEER STRIPE BURN OUT PRINTED FABRIC ETC ALL TYPES OF FABRICS JERSEY LACE PONTE TERRY SEQUIN SALES (‘13) USD 25 MILLION, (‘14) USD 40 MILLION PRODUCTION BASE CHINA, S.KOREA, INDONESIA MAJOR BUYER GARMENT BUYER THE MARMAXX GROUP FOREVER21 W·MART FABRIC BUYER CHARTER CLUB INC ANN TAYLOR ANTHROPOLOGIE FREE PEOPLE 4 1 LEUKON AT A GLANCE ❶ INTRODUCTION Items : Sports/Active wear, Knit Fabric, Seamless Wear, Swimwear Sales : US$25 Million (by 2013) , Sales : US$40 Million (by 2014) SEAMLESS : 45% SWIM : 35 % SPORTS : 10% FABRIC : 10% USA : 70% KOREA : 15 % EU : 7.5% JAPAN : 7.5% 5 2 COMPANY HISTORY In the pursuit of excellence and the spirit of diligence for our world leading buyers 2004.07 FOUNDED LEUKON CEO of LEUKON , Kyu-Seung Ahn - A renamed expert in the knitwear in Korea’s one of the largest textile companies 2004.08 LAUNCHED SEAMLESS WEAR BUSINESS Drawing a big picture of the multi-functional and beautiful seamless wear to be a leading fashion item 2004.10 ~ FOUNDED LEUKON YIWU CHINA BRANCH 2008.10 ~ STARTED FABRIC BUSINESS 2009.06 ~ START SWIM/SPORTS BUSINESS WITH FOREVER 21 2014.01 ~ Real-time report system and strict production monitoring system which is available for 24/7 co-work company with YIWU QIANFENG (2009) Sub-contracted with factory SYNDIA (2010) Sub-contracted with factory WEINIDI (2010) Sub-contracted with factory RUNHUI (2012) Sub-contracted with factory DIYUAN (2013) Sub-contracted with factory SUCHI (2013) Sub-contracted with factory DUOCAI(2013) Our qualified service and production capability that we have built in China Strategic Alliance with DINO TEXTILE (2010) partnership with factory XINTIANDI (2011) Sub-contracted with factory T&F (2012) FOUNDED JOINT VENTURE “QF KOREA “ FOR DOMESTIC FASHION BUSINESS To response the domestic retailers’ need of our China-made products 3 PRODUCTION FTY Our reliable and stable mass production for all types of products is in cooperation with competent manufacturing partners in China. CHINA SWIM/SPORTS GARMENT FACTORY TEXTILE FACTORY SEAMLESS FABRIC & GARMENT FACTORY SWIM/SPORTS GARMENT FACTORY LEUKON HEADQUARTER SEOUL OFFICE YANTAI SHANGHAI KOREA YIWU Banten INDONESIA 7 4 BUSINESS AREA ❶ KNITWEAR – SUMMARY LEUKON’s knitwear is simply flooded with stylish and comfy pieces. We are sure to appeal with qualified fabric and cozy feeling in look. 1. KNITWEAR BUSINESS LEUKON has been the supplier of woman’s knitwear, in particular the loungewear and fancy garment wear to US retailers. Finely tailored pajamas are being called for continued business with US retailers such as THE MARMAXX GROUP and FOREVER 21. 2. BUSINESS PERFORMANCE In 2013, our knitwear business reached the total sales volume in USD 5 Million, and will be expecting to achieve USD 7 Million. 3. BUSINESS CONTACT Jin Kim Head of Knitwear Team (Direct) +82-2-70-4323-2378 (Email) jinkim@LEUKON.co.kr 8 4 BUSINESS AREA ❶ KNITWEAR - SEWING FTY 4. KNITWEAR SEWING FACTORY XINTIANDI CLOTHING CO., LTD BUSINESS AREAS PRODUCTION CAPACITY GENERAL INFO TOP PJ SET SKIRTS PANTS LOUNGEWEAR DRESS OTHERS C/O (CHINA) : 350,000 PCS PER MONTH IN THE USE OF 8 LINES IN 2014, ADDITIONAL 4 LINES WILL BE SET UP ESTABLISHED IN 2004 LOCATED IN NO.3 HAITE ROAD, ZHIFU DISTRICT, YANTAI, SHANDONG PROVINCE, CHINA PRODUCTION SYSTEM 1 CUTTING 2 SEWING 3 IRONING 6 5 4 FINISHING DELIVERY PACKING 9 4 BUSINESS AREA ❶ KNITWEAR - SEWING FTY 4. KNITWEAR SEWING FACTORY XINTIANDI CLOTHING CO., LTD ORGANIZATION CHART D Director C P Production Management O Operation Management Compliance Q Quality Management ▫ SAMPLE ▫ ORDER F/UP ▫ MTRL QC ▫ MECHANIC ▫ MTRL ▫ CTU QC ▫ CUT ▫ IMPORTS ▫ SEW QC ▫ SEW ▫ EXPORT ▫ FINISH QC ▫ FINISH ▫ HR ▫ PACKING/FINAL ▫ ACCOUNT 10 4 BUSINESS AREA ❶ KNITWEAR - SEWING FTY 4. KNITWEAR SEWING FACTORY XINTIANDI CLOTHING CO., LTD PRODUCT 11 4 BUSINESS AREA ❷ SWIMWEAR - SUMMARY LEUKON’s swimwear business is recording an increasing volume of production each year and keep growing upon the succeeding business of our buyers. 1. SWIMWEAR BUSINESS LEUKON ‘s swimwear business is annually growing with our production know-how and the whole understanding of buyer’s wishes of detailed fit, colors, and so on. Our main products are Junior and Plus size swim suits, and in this product category, we reached the increased sales amount at USD 7 Million for 2014 summer season only. 2. SWIMWEAR PRODUCTION LEUKON ‘s swimwear manufacturing bases are in Tangerang in Indonesia and Yantai province in China. We sub-contracted these factories in 2012 and operate for sewing in bulk production. 3. BUSINESS CONTACT EDDIE KIM, E-MAIL: eddiekim@leukon.co.kr , DIRECT:+82-70-4659-4329 12 4 BUSINESS AREA ❷ SWIMWEAR – PRODUCT LEUKON’s capability of handling various designs in a bulk production and relatively low DDP cost are proved, via massive order calls from FOREVER 21 and interests by other US retailers. 4. PRODUCT CATEGORY Please, take a look at below Junior and Plus size products we provided for our US brand buyer. JUNIOR PLUS 13 4 BUSINESS AREA ❷ SWIMWEAR – FTY 5. SWIMWEAR FACTORY PT. TREND &FASHION CO.,LTD INDONESIA FACTORY GENERAL INFO PRODUCTION WORKFORCE FACILITY ESTABLISHED IN OCT , 2010 LOCATED IN TANGERANG MANUFACTURING & EXPORTING SWIMWEAR/ACTIVEWEAR 400,000 PCS/MONTH USE OF 20 DESIGNATED LINES NO. OF KOREAN MANAGER NO. OF LOCAL MANAGER NO. OF LOCAL WORKER 2 PEOPLE 10 PEOPLE 600 PEOPLE SAMPLE/ PATTERN ROOM CUTTING DEPT. (11 TABLES) PRODUCTION DEPT. (20 LINES) Q.A & Q.C ROOM FINISHING/PACKING DEPT. WAREHOUSE (FAB. & ACC.) BUYER INSPECTION ROOM SHOWROOM DIRTY CLEANING ROOM MECHANIC ROOM CLINIC ROOM PRAY ROOM TOILET (43 UNITS) CAFETERIA 14 4 BUSINESS AREA ❸ SEAMLESS – SUMMARY At a growth rate of more than 150% from the year 2011, LEUKON has been one of the most active participants who contributes to the fast expansion of seamless wear market 1. SEAMLESS BUSINESS We provide the seamless fabrics and garments in the main use of seamless circular knitting machine by Santoni™. Fabric contents include a diverse types of yarns such as nylon, polyester, spandex, rayon, and etc. Also, the nature-sourced fibers such as cool max, bamboo, soy bean, organic yarn and others are used for seamless wear, providing many benefits on wearer’s health. 2. BUSINESS PERFORMANCE Total sales revenue of seamless apparel that LEUKON has reached in 2013 is $15.1 Million ($1.15/Won). 2013 SALES REVENUE BY SEGMENT (%) 64% SPORTS WEAR 27% INTIMATE WEAR Among the performed segments, sports wear and intimate wear have been obviously positioned as the core sales drive for 91% of total sales revenue. 9% OUTWEAR * INTIMATE WEAR: BRA, PANTY, CAMI, SHAPEWEAR, CHEMISE * OUTWEAR : TOP, CAMI, JACKET, DRESS, HOODIE, SKIRT, LEGGINGS 2 Profession in Seamless Production 3. PERFORMANCE DRIVES Core strength of LEUKON Seamless business is the virtuous circulation of superb resources that we have cultivated by continued order handling. * SPORTS WEAR: BRA, TOP, CAPRI, SHORTS 1 Mass Archives of Products & Knowledge LK CORE STRENGTH 3 Stable Manufacturing Capability 15 4 BUSINESS AREA ❸ SEAMLESS – SWOT ANALYSYS Seamless business requires both buyer and manufacturer to acknowledge the unique strength, weakness, opportunity, and threat for the successful delivery. 5. SEAMLESS BUSINESS SWOT ANALYSIS Please, see below SWOT table that gives you further understanding of seamless wear production. And, more details will be described in related ‘Seamless – Production process chart’ page. 1 STRONG SUPPORT OF HOLES, JACQUARD, CONSTRUCTION IN FAB & GAR CONDITION 2 UNLIMITED DESIGN CREATION & APPLICATION IN KNITTING PROGRAM 3 EXCELLENT STRETCH & RECOVERY AFTER FITTING AND WASHING 4 COMFY AND SOFT FEELING ON SKIN & POWERFUL BODY SHAPING EFFECT 1 MUST-MEET KNITTING TIMING (AVG. 60 DAYS BEFORE SHIPMENT DATE) TO MEET THE IHD 2 CHINA GOV. REGULATION ON SEAMLESS MANUFACTURING & DYEING FACILITY 1 MIN. 2 WEEKS OF SAMPLE LEAD TIME 2 COLOR DIFFERENCE IN GARMENT DYEING 3 NO SPEC & QUALITY CHANGE AFTER KNITTING 4 SIZE TOLERANCE FOR CHEST & BODY LENGTH 1 HIGH RE-PURCHASE RATE 2 SPEEDY BULK PRODUCTION THAT CAN MATCH AND LEAD FAST-CHANGING APPAREL TREND 3 MARKETABILITY FOR ALL TYPES OF GARMENTS 4 COMBINATION OF THE BENEFITS OF SEAMLESS & CUT & SEW WEAR 16 4 BUSINESS AREA ❸ SEAMLESS – PRODUCTION FLOW CHART For seamless wear orders, we takes 150 days from PO issuance date to In-house date. It’s very important to draw knitting timing as earliest as possible to meet IHD. 5. SEAMLESS PRODUCTION FLOW CHART - 150 DAYS - 90 DAYS - 30 DAYS Ⅳ. S/H Ⅳ. EX-FACTORY 7 DAYS Ⅲ. BULK PRODUCTION Ⅱ. PRE-PRODUCTION DEVELOP REQUEST 2nd PROTO 42 18 FIT SAMPLE PP SAMPLE PO ISSUANCE DAYS (ENDING DATE – STARTING DATE) PACKING 20 CUTTING GARMENT DYEING 60 DAYS Ⅰ. ORDER PLACEMENT KNITTING FINISHING INSPECTION 53 DAYS 43 30 DAYS PROD. STAGE TRIM DYEING SEWING Knitting timing is the key to meet the delivery date, on condition that we take 60 days to finish the bulk production ready to ship. 17 4 BUSINESS AREA ❸ SEAMLESS – PRODUCTION KNOWLEDGE (1) For seamless wear production, unique rules exist to inform our buyer as seamless production knowledge . 5. SEAMLESS PRODUCTION – KEY PRODUCTION KNOWLEDGE (1) 1 + 150 DAYS OF PRODUCTION PERIOD Is the average time we estimate for a new style, on condition that we receive the buyer’s sample comment in a week. 2 2 WEEKS OF SAMPLE LEAD TIME Is taken to make a sample on each stage. For every sample, we revise the knitting program, order the yarns, and knit down. 3 CERTAIN SPECS NEEDS TO BE CONFIRMED With the buyer (ex. body width in Fit sample) to proceed next sample. 4 PP APPROVAL TIMING IS KEY To start knitting 60 days before IHD. Then, we make a final correction on knitting program and make a size sample for 7 days. In costing stage In proto stage 150 Days to IHD for new order Prompt fabric quality approval In all sample stages Fit comment in 7-10 days from the submission date In Fit stage In PP stage No change on Chest spec Change on body length (on condition) Before Bulk production Prompt PP approval – the key to meet IHD 18 4 BUSINESS AREA ❸ SEAMLESS – PRODUCTION KNOWLEDGE (2) For seamless wear production, unique rules exist to inform our buyer as seamless production knowledge . 5. SEAMLESS PRODUCTION – KEY PRODUCTION KNOWLEDGE (2) 5 SMALLER BODY SPEC THAN CUT & SEW GARMENT Seamless wear has high tension and stretch, since its circular knit condition keeps no seam from fabric condition. 6 WIDTH TOLERANCE (FLAT) AT ½” Is needed, since chest size mostly results from machine size (ex. Chest 13” from 13” knitting machine, except hole styles) 7 TOLERANCE IN WIDE RANGE We apply these key seamless production knowledge & know- how for successful production Is in need due to 1) cutting in “Pieces”, 2) garment w/ cutting line affected by bulk dyeing, and 3) absolutely comfy fitting. 8 SAMPLE DYEING IN ANY COLORS UNTIL PP STAGE The factory dyes the sample mostly in proceeding bulk lot, to saturate the dyestuff in good condition. 19 4 BUSINESS AREA ❸ SEAMLESS - SPORTS WEAR Benefits of seamless sports wear could be available in all kinds of sports from indoor sports like Yoga to extreme sports like rock climbing Through the 10 years of LEUKON’s involvement and devotion in seamless apparel industry, we have made an extensive growth of sales volume in sports wear and consider it as our core business area. For our namely specialty brand clients, we are investing magnificent time in the findings of extensive functions and immediate application of trendy designs with Nylon/Spandex seamless fabrics. QUICK DRY RACERBACK WICKING SPAGHETTI BACK VENTILATION MESH PANELS COMPRESSION HOLE BACK ANTI-BACTERIAL ZIPPER 20 4 BUSINESS AREA ❸ SEAMLESS – INTIMATE WEAR Relaxed and snug fit gives comfort and keeps women’s body In beautiful shape Lingerie is one of the product areas where the seamless technology could be utilized the most in providing the comfortable fit in women’s relaxed time. Based on the understanding of women’s wants and needs of the fit, we are confident in the detailed fit guidance to improve their body shape in high-tensioned fabrics. BRAS CAMIS ROMPER BANDEAU BRIEFS THONG SHORTS BIKINI 21 4 BUSINESS AREA ❸ SEAMLESS – OUTWEAR Most effective seamless product that maximizes at ease the result of ‘jacquard and construction variations’ The strength of seamless technology could be named ‘unlimited designs of jacquard patterns and construction’ that are programmed before knitting and immediately applied to seamless fabrics that no additional artwork are not needed after knitting. Visualization of those variations on the seamless fabrics would be more exquisitely displayed. Thus, it makes our outwear product look more luxurious upon programmed fine texture. We are further than welcomed if you suggest the artwork. SEAMLESS CONTACT : TONY LEE E-MAIL: oiolee@leukon.co.kr , DIRECT:+82-70-4323-8334 EXAMPLE – PATTERN, HOLE, JACQUARD 22 4 BUSINESS AREA ❹ FABRIC LEUKON’s fabric is in massive need of int’l retailers for the production of various types of garments such as sports wear, intimate wear, leggings and etc. 1. FABRIC BUSINESS LEUKON has been exporting both all kinds of knitwear fabrics and circular knit seamless fabric to our long-standing US buyers. With the rising request of business relationship with LEUKON to source qualified fabrics, LEUKON has expanded its buyer pool to domestic retailers. In China, we do have sub-contracted factories, Qianfeng Import & Export Co. for seamless fabric production and Dino Textile for knit fabric sourcing. 2. PRODUCT Based on a stable manufacturing system and the partnership with the subcontracted factories in China, LEUKON’s primary export fabric items are for below garment ALL KINDS OF FABRIC FABRIC SOURCE FOR SPORTS WEAR DRESS INTIMATE WEAR LEGGINGS LOUNGE WEAR OUTWEAR 23 4 BUSINESS AREA ❹ FABRIC LEUKON’s fabric is in massive need of int’l retailers for the production of various types of garments such as sports wear, intimate wear, leggings and etc. 3. BUSINESS PERFORMANCE In 2013, our fabric business reached the total sales revenue in total USD 5 Million, and is growing upon the new buyers’ contact in 2014. [ Revenue Composition ] KNITWEAR FABRIC (65%) SEAMLESS FABRIC (25%) DOMESTIC (10%) 4. BUSINESS PARTNERS Overseas Buyer Domestic Buyer 5. BUSINESS CONTACT Jong-Jin Park Head of Fabric Business Team (Direct) +82-2-70-4742-5651 (Email) godar@qfkorea.co.kr 24 4 BUSINESS AREA ❹ FABRIC – FTY 6. KNIT FABRIC FACTORY DINO TEXTILE BUSINESS AREAS PRODUCTION JERSEY SEQUIN LACE PONTE BURN OUT JQD (SINGLE/DOUBLE) FOIL PRINT TERRY PRINTED FABRIC 1,200,000 YDS PER MONTH USD 33 MILLION SALES GENERAL INFO ESTABLISHED IN 1996 LOCATED IN NO. 1288 LIAN ROAD MINHANG AREA, SHANGHAI, CHINA PRODUCTION SYSTEM 1 KNITTING 2 INSPECTION 3 7 6 DELIVERY DYING « PRINT PACKING 4 5 INSPECTION FINISHING / INSPECTION 25 We hope to contribute in your company growth by providing the qualified products & We build a continuing relationship to grow together in future. 26