AMDP Memo Rough Draft

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To: Clark Hansen, CEO, Anima Mundi Development Partners
From: Allegra Vianson
Date: March 1, 2019
Subject: Investment Opportunity: Veja Sneakers


Triple Bottom Line
The Triple Bottom Line changes the traditional view of a firm's financial bottom line to also include its social responsibility and business ethics. The Triple Bottom Line consists of three parts: social responsibility, economic value, and environmental impact.

-people
-planet
-profit

Social Enterprise
A social enterprise is an organization that uses its commercial efforts to improve the wellbeing of others financially, socially, and environmentally.

Carbon Footprint
An organization's carbon footprint is the total amount of carbon dioxide and carbon compounds are emitted due to their practices.

Corporate Social Responsibility
Corporate Social Responsibility is the concept that firms, including private companies, are responsible to ensure benefits to their stakeholders (ie customers, society-at-large) through social, environmental, and economic best practices.

VEJA SNEAKERS

Inspired during an audit of a Chinese garment factory Francois-Ghislain Morillion and Sebastien Kopp set out to fix the working conditions in the fashion industry. While working with the founder of France's first fair trade company AlterEco, the 24-year-olds thought about the production of streetwear sneakers they grew up loving in the 90s. It was then that they envisioned a complete recreation of the production cycle of sneakers, from raw materials and packaging, having a positive impact environmentally and socially.

Since selling their first sneaker in Paris in 2005, Veja has sold over 3 million sneakers in 50 countries. Veja has contracts with organic cotton and leather producers in Brasil. Rubber soles are sourced from the Seringueiros in the Amazon Rainforest. They created the first sneaker completely made of recycled plastic by inventing a material named "B-Mesh". B-Mesh consists of plastic recycled from the streets of Rio de Janeiro and Sao Paulo.

While sourcing their raw materials under fair trade and ensuring excellent work conditions for their employees, creating a Veja sneaker costs 5-7 times more than the average sneaker on the market. Veja makes up for this COGS by not making any efforts on advertising. The founders note that a streetwear brand typically spends 70% of its revenue towards advertising- by avoiding this, Veja can source sustainably and still price their product competitively. Veja states that opposed to advertising, they'd rather rely on a "collective intelligence" to sell their shoes.


Comments

  1. Anonymous2 March 2019 at 12:33

    Hi Allegra,

    I think the company is interesting, and I wish I can know more about how their working conditions are different than other shoe companies. And I am also wondering how much of an impact the differences can make on the consumers.

    Thanks,
    Claire Lin

    ReplyDelete
  2. EthSBan4 March 2019 at 08:01

    Your definitions look great, but I believe you need to include an introductory paragraph or two explaining the investment opportunity. You could also help your definition of the triple bottom line by explaining each of the 3 parts.

    -Ethan

    ReplyDelete
  3. Free Your Mind!4 March 2019 at 12:52

    Hi Allegra,

    I think your company is interesting and I agree with Claire, for the rest of your draft you can maybe give some more context on the issue,

    ReplyDelete
    Replies
    1. Free Your Mind!4 March 2019 at 12:57

      I meant to complete that thought thought: but yes, I think it would be helpful if there was a bit more context. I think you did a spectacular job at defining the definitions. It's extremely concise but it was also well-explained!

      -Clifton

      Delete
  4. Anonymous6 March 2019 at 13:14

    Love that you chose this company! I worked at Madewell and we sold Veja! I never knew they were a sustainable brand.

    All of your definitions were very concise yet detailed enough to explain the standards of AMDP. Great job!

    -Olivia o

    ReplyDelete

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