Circular Business Model
Utility Thread is a brand that above all else is designed to be circular through the physical garments, the textiles we use, and the end of life opportunities we offer. Check out our circular business model below that discusses how we fit into Target's current product assortment, and how we are going above and beyond to add value to the company and the guests we serve.
Expense
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Partnerships:
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Huston Textile Co.: prices range from $33.95-$54.83 per yard, the fabric we are most interested in for our line is called the car canvas and sells for $33.95 per yard.
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Nature USA: They provide two options the first being Private Label: A typical development cost for the first proto is $1000 and $2000 per style. And the second is Eco-Banks and the pricing for that was not available.
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LEADS Cotton: Price for partnership was not found, but Target’s website shows they are a partner so we can infer that it would be within budget to continue using them.
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BCI Cotton: Target Corp. has been a member since 2017, although the price of membership is not available to the public we can infer that the pricing would be acceptable. We also do not know if Target has been using BCI Cotton grown in other countries or the US, but BCI has farms in the US cotton belt that Target could use.
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Renewal Workshop: Would be a circular end of life option for Target, they take in lightly to well worn products and repurpose them into new items or recycle them. Pricing is not available for how much this would cost.
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Black Earth Compost: There is a commercial service that they provide but i was not able to get any information from that.
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Advertising:
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A 30-second ad = $345,000 to produce
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Although we do not have access to Target's advertising budget, it is safe to assume that they have a portion sectioned off for new brands. Target can also integrate Utility Threads advertising into Universal Thread taking a portion of their advertising money.
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Revenue
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With no foreign travel for the production of these products we have deduced that Target will see a slight raise in revenue by taking advantage of US only transportation.
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Trains: Trains are 4x more fuel efficient than trucks, carry more, and can travel far distances faster. An inter-modal train can move one ton of freight over 400 miles on just a gallon of fuel.
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Semi-Trucks: Predictable schedules, cost effective for short distances. Pricing is difficult to find for pricing of truck shipments.
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Cargo Plane: Air freight rates generally range from $1.50–$4.50 per kilogram, while the value of air cargo typically exceeds $4.00 per kilogram. Pricing is sensitive to oil prices, and is often used for items that are time sensitive.
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Overall it is difficult to determine the most cost efficient way of moving product since exact pricing is difficult to find. I was unable to find exactly how Target ships products currently. Target does have some information on how China ships their products but that was all; and given our products are made and produced in the U.S. that is not applicable.
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Revenue will also be coming in from the sales of the Utility Thread produces.
Benefit
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By producing products in the US Target is promoting local jobs, and helping the local economy
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By partnering with Huston Textile Co., Nature USA, LEADS Cotton, or BCI Cotton Target is supporting US cotton farms and smaller businesses
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By creating circular products Target is investing in the well being of the Environment, creating trust with eco-conscious customers
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Surveys have shown that Target customers are willing to pay more for locally made clothing, it also promotes Target to make well made long lasting products leading to more customer loyalty
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Creating this line also benefits Target because it shows that they are listening to customers wants and needs, and following through to satisfy them
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Black Earth Compost: Working with Black Earth Target is finding a solution for products that otherwise did not have a circular end of life option