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Varshney Capital Corp. Suite 2050 West Georgia Street Vancouver, BC V6E 3P3 Canada To Whom It May Concern: Oiseau, the French translation for “bird,” is a San Francisco based contemporary women's boutique that focuses exclusively on sustainable and eco-friendly fashion and accessories. The store will ideally be located in Downtown Vancouver.

The goal of Oiseau is to show our customer that she doesn’t have to wear hemp and tie-dye to be “green.” She can still be fun, playful, and fashionable. The store will intend to carry a mix of basic and fashion items from brands that focus on the idea of sustainability, such as Alternative Apparel, Loomstate, and Edun. Oiseau seeks to target young women aged 18-30 who are urban, trend-aware, and of course, interested in the environment and sustainability. Many of these consumers would already live and shop in the downtown area. Yet the store can also expect traffic from tourism, and from residents of other districts who visit the downtown shopping area.

Pricing will be aligned with stores with somewhat similar demographics, especially where they pertain to fashion-conscious, relatively affluent, Generation Y consumers. Essentially, Oiseau will aim to replace items that would normally be offered to this consumer with eco-friendly ones. The store will focus on products in the contemporary price point.

Notably, Oiseau will essentially have no direct competition within the downtown Vancouver area. While there are some stores focusing on eco-friendly clothing, none seem to focus solely on contemporary fashion. Store that carry eco-conscious lines are most often not promoting them as such.

Industry reports strongly suggest that not only does “green” fashion have a strong and loyal following, but that the trend is expected to grow despite economic adversity. In addition, the mission of the store is strongly aligned with the city’s overall mission. Oiseau would surely be a strong addition to Varshney Capital’s environmentally conscious portfolio. Sincerely, Raylin Wright Founder and Owner

Corporate and Product Background Oiseau, the French translation for “bird,” is a San Francisco based contemporary women's boutique that focuses exclusively on sustainable and eco-friendly fashion and accessories The company primarily targets women aged 18-30 who are urban, fashionable, trend-aware, and interested in the environment and sustainability. The target country for trade is Canada. Specifically, Oiseau intends to extend its brand to Vancouver, British Colombia. Vancouver is a relatively affluent, young, technologically savvy cosmopolitan city with a high interest in social and ethical activism.

Product Overview Greg Alterman, founder of Alternative Apparel, once said in an interview, ”Everybody has to wear clothing, so you might as well wear something good for the earth.” Oiseau seeks to carry a mix of basic and fashion items from brands that focus on the idea of sustainability. Our goal is to show our customer that she doesn’t have to wear hemp and tie-dye to be “green.” She can still be fun, playful, and fashionable. Below are brands that Oiseau feel be key performance brands because of existing market presence, assortment, and fashionability. Clothing brands will remain largely static between US and Canadian channels. Garment selections will vary based on regional differences, and of course, consumer preferences. It is important to note that Vancouver’s weather is markedly similar to San Francisco’s. Both markets could potentially learn from each other, despite geographical separation.

Alternative Apparel focuses on authenticity and comfort. In 1995, the company set out to create the perfect t-shirt – one that was “designed for fashion, made for comfort, and tailored for a flawless fit. The company has since expanded to include a multitude of fashion garments. Oiseau will carry the lined titled Alternative Earth, which focuses on eco-friendly and sustainable apparel. www.alternativeapparel.com/alternativeearth

Alternative Earth will be Oiseau’s primary source of basic items such as tee shirts (non-graphic), sweatshirts, jersey pants, and non-fashion cardigans. While Alternative Earth is a diffusion line, consumers would likely recognize Alternative Apparel.

The mission of Edun is to help build Africa as a viable source of production for fashion. Founded on the premise of trade not aid, EDUN is a for profit business that aims to raise awareness of the possibilities in Africa to encourage emulation. To help achieve this goal, EDUN is investing in the development of a community-based value chain, beginning with organic cotton. 3 www.edunonline.com

Edun would be a source of fashion apparel for Oiseau. Products would include dresses, fashion tops, sweaters and cardigans, outerwear, and select graphic tees.

Dedicated to creating a demand for organic cotton and socially responsible methods of production, Loomstate focuses their design approach on their respect for nature. Natural shapes and colors influence their casual clothing, which is primarily made up of graphic tees and jeans. www.loomstate.org Loomstate will likely become the primary denim brand of Oiseau, both because of their relatively wide assortment of styles, and because the brand is already well known and will be familiar to consumers. Graphic tee shirts will also be included. Loomstate does produce other garments such as fashion tops, dresses and outerwear. Oiseau will consider these items, but they will be carried to a much lesser extent than the brand’s denim or tee shirts.

Designed by a former sculptor and a fashion industry buff, Prairie Underground creates unique, earth friendly garments crafted from organic cotton and wool. www.prairieunderground.com

Prairie Underground will be Oiseau’s largest supplier of outerwear. The company carries an impressive selection of blazers and jackets, and fashion knits such as sweatshirts, leggings, and dresses.

Oiseau will also consider merchandise and clothing that promotes a charity, cause, or social issue. These items will be considered on a case-by-case basis.

In addition to providing consumer with sustainable merchandise, Oiseau seeks to educate the public on the eco-conscious lifestyle. Publications might include Boho, and Peppermint (from Australia). Books could include Green Chic, Eco-Chic: The Fashion Paradox, and Style, Naturally.

Nahui Ollin - made by impoverished Mexicans from discarded candy wrappers

Katharine Hamnett – for Enviornmental Justice Campaign to end illegal fishing

Cultural, Political, Legal, and Economic Background History “A land of vast distances and r ich natural resources, Canada became a self-governing dominion in 1867 whi le retain ing t ies to the Bri t ish crown. Economical ly and technological ly the nat ion has developed in paral le l with the US, i ts neighbor to the south across an unfort i f ied border. Canada faces the pol i t ical chal lenges of meet ing publ ic demands for qual i ty improvements in health care and educat ion services, as wel l as responding to the part icular concerns of predominant ly francophone Quebec. Canada also aims to develop i ts diverse energy resources whi le maintain ing i ts commitment to the environment.” CIA World Factbook

Geography Canada itself is a large, expansive country covering the majority of the northern portion of North America. The topography is diverse – ranging from mountainous terrains, to prairies, to vast forests, to shorelines, and even tundra in the most northern regions of the country. Vancouver itself is a Canadian coastal city located in the Lower Mainland of province British Colombia. It is located on the Burrard Peninsula, with the Burrard Inlet to the North and the Fraser River to the South. The city is located approximately 115 miles from Seattle, Washington.

Climate Vancouver is a temperate city by Canadian standards. Normally, it is classified as Oceanic or Marine West Coast. During July and August, the summer months, the climate is typically dry. These days are drier and sunnier with moderate coastal breezes. During late fall and winter, the climate is

rainy. Snow falls roughly 11 days per year, however it doesn’t often remain on the ground. On a yearly average, temperatures fall between 33 decrees Fahrenheit and 71 decrees Fahrenheit. The city famously grows palm trees as an indicator that the climate is temperate is comparison to the rest of the country. The City of Vancouver is located roughly one half hour (driving) south of several popular ski resorts.

Topography While the country of Canada is topographically diverse, the city of Vancouver is relatively conformational. While there are hills and several instances of microclimates, it is not as varied as the rest of the province or country. The North Shore Mountains serve as Vancouver’s famous backdrop. On clear days, Washington’s Mount Baker is visible to the southeast. Vancouver Island is

situated across the Strait of Georgia. Bowen Island is to the northwest. Vancouver is home to one of the largest urban parks in North America. Stanley Park, which is more than 10% larger than Central Park in New York City, covers 1001 acres.

Social Institutions

As of the 2006 Canadian census, it was reported that 85.2% of Canadian citizens were living in a private dwelling with relatives. 10.6% were living alone. 2.5% lived in private households with non-relatives, and 1.7% lived in collective dwellings. While the population of Canada shows in increase of citizens living alone, the majority of Canadians live with family members or spouses. According to a 2007 survey, 57% of Canadians agreed, “there is no such thing as a typical family.” Family structure has changed drastically over the passed 50 years, with today’s families populated by step-siblings, same-sex parents, extended relatives, and, increasingly, couples alone.

Education There is a high drive among Canadians to seek postsecondary credentials. This is having a profound impact on society overall, because it is delaying marriage and altering the form and function of Canadian families. 48% of Canadians aged 25 years to 64 years of age have either a college or university education. Canada spends roughly 7% of its GDP on education. Public education is provided, and overseen by federal, provincial, and local governments. Most school systems are structured like those of the US, with K-6 primary education, and secondary education until grade 12.

Politics Political System Canada functions within the framework of a constitutional monarchy and a federal system of parliamentary government with strong democratic traditions. Governmental structure was first established by the British parliament through the British North America Act. Post WWI, Canadians began to develop a strong sense of identity, and the British government showed intent to grand autonomy. The Statute of Westminster gave legal recognition in 1931.

Political Parties The two largest parties in Canada are the Conservative Party and the Liberal Party, however, many other parties have and do exist, including the Green Party and the Libertarian. The Vancouver civic government is dominated by the centre-right Non-Partisan Association.

Stability Canada is normally considered to be a stable democracy. The Economist ranked the country the third most democratic nation in its democracy index in 2006, and number 11th in 2008.

Taxation

Roughly 31% of a single person’s (with no children) income is paid to taxes. By comparison, the rate in the US is 29%. A household with two children pays approximately 21.5%. In the US, that number is 11.5%. The majority of these revenues come from property and payroll taxes.

Legal System The Canadian legal system has a foundation in the British common law system, being a former member of the United Kingdom. The constitution is the nation’s supreme law, which is similar in principle to that of the United Kingdom. Powers are also assigned to provincial and territorial governments. The Supreme Court of Canada is the highest court in the nation, and the final court of appeal in the Canadian Justice System.

Social Organizations Social Classes Roughly 3-5% of Canadians fall into the Upper Class category, with 1% being Upper-upper earners, distinguished by “old money,” and the remaining being lower-uppers, depending more on earnings and inherited wealth. Roughly 40-50% of the population is comprised of the middle class. There is considerable racial and ethnic diversity in this class. The upper-middle typically works in professional or upper-managerial fields, while the lower-uppers work in less prestigious jobs. The working class comprises approximately 1/3 of the population. They have virtually no accumulated wealth.

The remaining 20% is the lower class. Race, Ethnicity, and Subculture Vancouver is known for its distinctive ethnic mix. 51% of the city’s population belongs to a visible minority. The largest minority population is comprised of Chinese immigrants. Roughly 51% of the city’s population is

not native speaking.

Rel ig ion and Aesthet ics The largest religions in Canada are Catholic (42%) and Christian (40%). However, the population is relatively segregated, with the highest concentration of Catholics in French Quebec. Roughly 16% of the population describes themselves as having no religious affiliation Vancouver is home to a number of notable musicians throughout several decades. The Vancouver opera is the major opera in the city, and it is also home to the Vancouver symphony orchestra. The city was home to influential punk rock bands such as Subhumans. Today, it is home to a number of popular indie bands such as Destroyer and Tegan and Sarah. During the 1980s, the city was home to the Vancouver School of Conceptual Photography, which was a grouping of photographers interested in photoconceptualism. Vancouver is called “The Hollywood of the North,” and is a major film and production center. L iv ing Condit ions

Diet and Nutrition

Canada is much like the United States in respect to diet. There aren’t many traditional cultural dishes still eaten today by the majority of the population. Diet varies from region to region. People in the British Colombian province tend to eat healthier overall. There is a significant consumption of fish, largely due the coastal location. Approximately 6% of British Columbia define themselves as vegetarian, however this term is often used loosely, with many still consuming fish. Also like the United States, Canada struggles with a growing obesity rate. Of those over 18, 23% of the population was obese. 36% were overweight.

Housing Vancouver is the 4th most densely populated city in North America, after NYC, San Francisco, and Mexico City.

The vast majority of city dwellers reside in high-rise apartment complexes. The design of the city advocates high-rise buildings over expansion. In addition, many urban industrial sites are being redeveloped into lofts and studio space.

Clothing The majority of the Canadian population no longer wears cultural clothing. Vancouver citizens generally dress like people would in a typical Northwestern US city such as Seattle or Portland. In business settings, trendy clothing is often frowned upon. Women should wear more conservative dresses or business suits, and men should wear a dark, conservative suit with a tie. Casual attire is, of course, acceptable when not working.

Recreation Because of the proximity to numerous ski resorts, many citizens of Vancouver either ski or snowboard as a form of recreation during colder months. Many people prefer simply being outdoors – walking through Stanly Park or along the many beaches. Beaches surround the city, however, the water is too cold for most water-sports. The wilderness which surrounds the city provided many opportunities for hiking and camping. There are several golf courses throughout the greater Vancouver area. Per year, the average Canadian family spends $7,994 on recreation.

Social Security

Canada operates the Old Age Security pension and the Canada Pension Plan. Old Age security is a taxable monthly social security payment available to most Canadians aged 65 or over. The basic amount is $502 per month. Recipients with a net income of over $64,700 must pay back %15 of net income. The Canada Pension Plan is a contributory, earnings-related social program. The prescribed contribution rate is roughly 5% of a salaried worker’s gross earnings. The employer matches the employee contribution. Payouts begin at age 65.

Healthcare in Canada Guided by the provisions of the Canada Health Act, adopted in 1984, healthcare in Canada is provided through a publically funded system. It is mostly free at the time of usage. The government sets federal standards to help insure quality of care.

The government covers roughly 70% of an individual’s healthcare costs. The individual pays for dental and pharmaceutical expenses. Drug prices are negotiated federally with suppliers to control costs. The elderly receive medications for free. Most employers provide supplemental health insurance to help cover the costs of prescriptions. Canada also has a Medicare system, and a single payer system. Despite reports of long wait-times for care, 87% of citizens report being satisfied with the current healthcare system.

Language While there are a multitude of languages spoken across Canada, largely in part to the large number of ethnic immigrant populations, the preferred languages are English (67.1%) and French (21.5%), however over 90% of French-preferring speakers reside in Quebec. Both languages are recognized as the nations official languages. Overall, 20% have a different language as their native language. In Vancouver, this number is reported to be as high as 53%. 35% of the nation’s population describe themselves as bilingual, with 17.4% bilingual in English and French. 83% are “unilingual.”

Population As of November 2010, the population of Canada was 33,759,742. According to the 2006 census, Vancouver had a population of 578,041, with the metropolitan area just exceeding 2.1 million. Canada’s birthrate is slowly declining overall. The current birthrate is 10.28 per 1000. This rate was the same as 2009, but 2008-2009 showed a decrease of .10%. According to the current population and birthrate, the number of live births per year is approximately 347,050. The death rate is 7.87 per 1000. The overall growth rate of the country is 0.804%.

Distribution of Population According to the CIA World Factbook, distribution is as follows: 0-14 years: 16.1% (male 2,761,711 / female 2,626,836)15-64: 68.7% (male 11,633,950 / female 11.381,735) 65+: 15.2% (male 2,220,189 / female 2,862,787) The median age of the population is 40.7 years.

80% of Canada’s population resides in urban centers, meaning an area with at least 1000 people and no fewer than 400 persons per square kilometer. There is an annual 1% rate of change. The net migration rate is 5.64 migrants per 1000. Canada’s population is divided as follows: 28% British Isles origin, 23% French origin, 15% other European, 2% Amerindian, 6% other (mostly Asian, African, Arab), and 26% mixed background. About 52% of Vancouver’s population is comprised of visible minorities, approximately 33% of which are Chinese.

Economic Statistics and Activity Canada operates in Canadian Dollars. Currently, their dollar is almost comparable to the USD. 1 CAD = 0.995 USD Canada is described as being a high-tech, affluent country. The GDP is $1.279 trillion. Canada ranks 15th in the world, between Spain and Indonesia. The Real Growth Rate is -2.5%. Canada’s GDP is comprised of 2.3% agriculture, 26.4% industry, and 71.3% service.. The personal income per capita is 38,200. Canada ranks 26th in the world. The average income per Canadian family is $70,400.

Minerals and Resources Canada’s natural resource sector is a vital part of the country’s economy. Natural resources make up approximately 12% of gross GDP. Energy accounts for 6.5%, Minerals 3.3%, and Forestry make up 1.9%

Transportation Major modes of transportation include airways, railways, and roadways. There are 9 major ports in Canada, mainly used for shipping. In metro Vancouver, many citizens simply walk to get around.

Communication Systems Major forms of communication include landlines, cell phones, and Internet. There are 18.251 million landline users, 23.081 cell phone users, and 25.086 Internet users.

Principal Industries

Canada’s GDP is comprised of 2.3% agriculture, 26.4% industry, and 71.3% service. Agriculture includes wheat, barley, tobacco, fruits and vegetables, dairy, fish, and forest products. Industries include transportation equipment, chemicals, petroleum, natural gas, and wood and paper product. US responsible for 75% of Canadian exports thanks to NAFTA Banks emerged in 2009 from financial crisis among the strongest in the world. Major exports include motor vehicles and parts, industrial machinery, aircraft, telecommunications equipment, chemicals, plastics, wood pulp, timber, crude petroleum, natural gas, electricity, aluminum. Major export partners include the US: 75%, UK: 3.37%, China: 3.09%. Exports account for $323.4 billion Imports include machinery and equipment, motor vehicles and parts, crude oil, chemicals, electricity, durable consumer goods. Import Partners: US – 51.1%, China – 10.8%, Mexico -4.56%. Imports - $327.2 billion The labor force is comprised of 18.39 million people. Unemployment is estimated at 8.3%. As of September, the inflation rate was 1.9%.

Retailers Vancouver is much like any major US city in terms of retailers – there is a wide variety, and selection is often dependent on the neighborhood. Countrywide, major mass retailers include Costco, The Real Canadian Superstore (comparable to Wal-Mart), and Value Villiage, which is another discount chain. Drugstores and beauty supply stores include The Body Shop, Sephora, and Pharma Plus. Women’s wear retailers include Zara, Esprit, and Jacob. Because Vancouver is a major tourist city, most retailers accept cash and major credit cards. Some restaurants and gift shops will accept US Dollars. Vancouver openly encourages business entrepreneurship. The city encourages prospective business owners to seek funding in the form of venture capitalists. The city’s website also lists reasons why investors should choose to fund the city. Steps to operating a business are extremely informal. The city provides a list of business categories (Oiseau would fall under Retail – General) and actively encourages growth. For a small retailer (under 4,700 square feet), a business license is just under $150 per annum. Vancouver encourages partnering with a venture capitalist to ensure adequate funding. Ultimately, Vancouver presents itself to the public much like a corporation would.

Media Canada is much like the US in terms of media available to citizens. The vast majority has access to Internet and television. 2 Public television broadcasting networks exist each with large network affiliates. Several private networks; overall, there are about 150 television stations. There are multi-channel satellite and cable systems to provide access to stations, including US ones. The Canadian broadcasting Corporation operates 4 radio networks, and there are roughly 2000 licensed radio stations throughout the country.

Market Analysis Blocktalk.ca, a demographics firm in Canada, segmented residents of downtown Vancouver, and classified 68.6% as being “Grads & Pads.” They are said to be,

“A collection of young, ethnically-diverse city dwellers living near universities, Grads & Pads represents the nation's most liberal lifestyle. Its residents are a progressive mix of well-educated singles, students and recent grads, service workers and professionals ... With three-quarters of the adults unattached, Grads & Pads residents are night owls who frequent health clubs, rock concerts, art galleries and ballet performances. They like to drink: beer, tequila, rum, gin - you name it. They're also political activists who work for social causes, write to public officials and volunteer for political parties and politicians who typically support their liberal views.” The site notes that the medium income of this demographic is $42,289. The site also notes that this demographic is interested in community involvement, ethical consumerism, and are most-often liberal. The female half of this demographic would be the ideal consumer. Secondary consumers would include tourists, consumers looking for fashionable items, and consumers interested in eco-friendly products, but who are not necessarily fashion or trend aware. The site states that there are 21,800 total adults residing in downtown Vancouver. Oiseau has a key consumer base of 7,477. The second key demographic residing downtown is called “Electric Avenues.” These are upper middle class urban singles. They often hold white-collar jobs. This demographic is openly progressive with social views. The site notes that while this group is not ostentatious when it comes to dress, they do spend “freely” on designer clothing, and are willing to pay more for eco-friendly products. The median income of this group is $62,000. They comprise 9.2% of downtown Vancouver. This would be an additional target consumer base of 1,003. The downtown area is home to shops that reflect the mostly young professional neighborhood. Prevalent retailers include Zara Woman, BCBG, and Aritzia.

Marketing Recommendations Vancouver is a city where not only citizens, but also the entire city itself are interested in the green movement. The city actively promotes “green business” ventures, and is currently aiming to become the greenest city by 2020. While Vancouver’s largest economy is technological, there is growing interest from outside sources in the city’s green movement. Vancouver is home to Eco Fashion Week – an event comprised solely of eco-friendly designers and brands. The event’s figurehead is Giselle Bundchen. The

event is also comprised of a trade show. This would be an ideal event for Oiseau to attend. “We have the smallest carbon footprint of any major city in North America and we’re a leader in green building, planning and technology. We also have a bold new ambition: to be the greenest city in the world by 2020. And you can be part of it.”

Price Pricing will be aligned with stores with somewhat similar demographics, especially where they pertain to fashion-conscious, relatively affluent, Generation Y consumers. Essentially, Oiseau will seek to replace items that would normally be offered to this consumer with eco-friendly ones. The store will focus on products in the contemporary price point.

Placement Oiseau is a brick-and-mortar retail store. There are no plans for a warehouse-type facility, therefore if an e-commerce site existed, merchandise would come directly from the store itself. Oiseau will utilize a traditional marketing channel, as merchandise will be purchased from third-party vendors. The intermediaries used would be company sales representatives for the selected brands. Producer ⇒ Wholesaler ⇒ Retailer ⇒ Consumer

Promotion Media- advertisements would be places in local magazines or publication. Because of the high tourism rate, media in other areas such as Seattle will be considered Packaging - a reusable shopping bag would be given to the consumer to strengthen the idea of sustainability Sales Promotion - associated would be required to be well informed of product attributes as well as industry details such as why organic cotton is superior, etc. Point of Purchase - the store will carry books and publications that inform customers about the eco-friendly lifestyle Direct Marketing - the store will utilize social networking sites such as Twitter and Facebook to inform consumers about new merchandise, trends, sales, events, etc. Emails could also be sent to consumers on a mailing list.

Special Events - many boutiques host special nights where a designer or person of interest in present. Oiseau will utilize this tactic in an effort to gain interest for the store and to draw in new consumers. Oiseau will likely be present at events that concern fashion or a sustainable lifestyle. For instance, presence at events such as Eco Fashion Week would be ideal.

SWOT Analysis

Strengths •Strong brand image •Entering “green” market during growth

phase •No direct competition •Unique store concept

Weaknesses •Limited vendor selection •Requires highly informed store

personnel •Must be able to sell product on

aesthetics •No similar stores means difficult to tell

if concept will work •Concept trumps product

Opportunities •Can easily expand to include

cosmetics, men’s, etc. •“Green” market expected to grow •Many smaller vendors do not require

large purchase orders •More brands are adopting “eco”

product, meaning larger selection

Threats •Volatile economic climate •More stores may carry “green”

fashions if the trend grows •Little market data •Many e-commerce sites focusing on

eco-fashion

Branding The logo of Oiseau is a green bird. The bird, of course, relates to the name, which is the French translation. Consumers can also connect the color to the idea of eco-friendly merchandise, and to nature. The typeface is clean and modern, and is meant to appeal to the store’s contemporary demographic.

Bird silhouette is cut out

Branch embossed - convex on front

Recycled cardboard

Bird silhouette is cut out

Branch embossed - concave on back

Packaging In lieu of traditional bags, Oiseau would utilize reusable shopping bags made from organic cotton. This would serve to strengthen the idea of the sustainability, even after the consumer has left the store. Business Card Front:

Back:

Letterhead

Branch embossed – concave on back

2185 Fillmore Street San Francisco, Ca 94115 • 415.607.5609 • oiseausf.com

Credits http://www.blocktalk.ca/vancouver/downtown/lifestyle/ http://vancouver.ca/business.htm http://vancouver.ca/bylaws/4450c.PDF http://www.downtownvancouver.com/directory/womens_fashions/ http://kubas.com/mmrr/retailers.html http://en.wikipedia.org/wiki/Vancouver http://geography.howstuffworks.com/canada/geography-of-vancouver.htm http://www.infoplease.com/ipa/A0107386.html?pageno=2 http://www.cccabc.bc.ca/res/pubs/pdf/Family_Diversity.pdf http://wps.prenhall.com/ca_ph_macionis_sociology_5/23/6031/1544106.cw/index.html http://www.cyborlink.com/besite/canada.htm https://www.cia.gov/library/publications/the-world-factbook/geos/ca.html