BUSINESS PLAN ON

CLOTHES

Presented by Balaka Deka (148905)

Nishi Vyas (148933)

Pushpika Vyas (148938)

Shravanthi (148946)

Haritha (148949)

CONTENT Company Profile Proposed Capacity Current structure of industry Marketing Plan Production process flow Products Human resource and Equipment Requirements Project Economics Threats and Key success factor

Company Name

The fashion world

Mission

“Satisfying our customers by providing them best qualitative stuff and unique designs keeping in view their comforts and excellence”.

1.Company Profile

Our Objectives

Non-financial objective

To be among the top ten favorite brands

To add new design in every season.

Financial objective:

To maintain an inflation growth in earning per year at a rate of 12%.

To obtain a return on equity of at least 30%.

Providing stitching facilities to other boutiques in which are lacking this facility.

B O U T I Q U E B U S I N E SS

Product Description

Mekhela Sador of Assamese culture is remarkably wide, according the vast cultures , geographical differences , purchasing capacities ,influence of the western culture, and bewildering diversities of the ethnic groups.

2 . P R O P O S E D C A PAC I T Y The Boutique business capacity is greatly dependent

on the market size  and  the  number  of  potential clientele one can attract

Furthermore, the women fashion wear garments will be designed through a contracted designer and then stitched through in-house stitching unit.

On average, a designer can supply forty designs per month  from  which  nearly  thirty  designs  are  selected  on  average.

Total designs selected by designer 20

No. of dresses in each design 50

Total number of dresses 1000

Approximately, total capacity of the defined unit with 5 stitching machines (basis on 8-10 hours shift) will be about 750 dresses. The breakup of the total number of dresses will be as follows:

Total Project Cost

The Boutique shop needs a total investment of about Rs. 1.83 million. This  includes  a  capital  investment of  Rs.1, 299,430 and a sum of  Rs.530, 680 as working capital.

3 . C U R R E N T S T R U C T U R E O F  T H E I N DU S T RY  

Currently, the boutique industry is relatively unorganized and is scattered in and around the posh areas of the districts of  Assam i.e. Dhubri, Barpeta, Nalbari, Kokrajhar etc.

Mostly sell the traditional dresses having indigenous/local designs, whereas the ones in Guwahati, Jorhat, Dibrugarh deal in fashion wear greatly influenced by the west and the local trends in vogue.

As such, there is no exact detail available  of the number of boutiques , especially in  women wear ,because there is no association or link between these enterprises. The reason being the business rivalries and the competitive structure of this industry .

4.MARKETING PLAN

 The marketing of boutique follows the conventional marketing pattern which  is dependent  on selection of venue of the outlet/s and the product mix (designs and sizes), as well as the promotional strategy .Furthermore, the boutique owner has to marketing techniques like:

Usage of print media

i.e. printing of posters and pamphlets as well as displaying it and distributing it at proper places.

Advertisement 

in print media i.e. newspapers and fashion magazines, etc.

Usage of electronic media

i.e. projection of the boutique in fashion programs, advertisement on television, and provision of dresses to various television plays and films.

Event arrangement 

like fashion shows and photo-shoots.

Usage of e-commerce

 i.e. launching of website and advertising on web.

Word-of-Mouth

Call the advertising department for an appointment. They show you what they offer.

Direct Mail 

Send out a post card about your business to mailing list, friends and family and maybe former co-workers.

Membership cards

Telemarketing

Exhibitions in universities

5 . P R O D U C T I O N P R O C E S S F L O W

Design

Pattern Making/Cutting:

Stitching

Finishing:

Presentation/Market

6 . P R O D U C T SProduct Mix 

Products will be priced at the high end to reflect the quality and exclusiveness associated with the brand. High-end materials such as Crinkle Chiffon, Georjet Chiffon,Pat Muga Silk, Medium Silk, Toss Pat, Kesa Pat etc will be used. This boutique will offer following product categories of men wears:

Casual Wear

Semi Formal Wear

Formal Wear

Each product category will include the following product lines:

Ethnic Wear

Formal Wear – Party dresses and special occasion dresses.

Contemporary Wear

Fusion Wear – Combination of eastern and western wear, suitable for the international market as well.

Western Wear

Tops, Pants and various other styles.

Product Mix 

Category % of total outfits

Casual wear 34%

Semi formal wear 33%

Formal wear 33%

Average Sale Price

Category Avg. price per outfit

Casual wear 3,200

Semi formal wear 6000

Formal wear 15,500

Costs of Goods Sold and other Expenses

Category Cost (percentage of sales)

Casual wear 35%

Semi formal wear 32%

Formal wear 30%

7 . H U M A N R E S O U RC E R E Q U I R E M E N T SPositions Required Salary per month Salary per

annumProduction staff      Designer 1 15,000 1,80,000Tailor 5 7,000 4,20,000Press/ironman/ Finishing

1 4,000 48,000

Dyer 1 5,000 60,000Total     7,08,000Administrative Salaries

   

Sales girl 2 6,000 1,44,000Office boy 1 3,500 42,000Guard 1 5,000 60,000Peon/ Sweeper 2 2,500 60,000Total 14   3,06,000

8. MACHINERY/EQUIPMENT DETAILS

Stitching Machinery No. Rs/unit Rs

Single needle lock stitching m/c

8 19,900 1,59,200

Over lock m/c 1 56,800 56,800

Embroidery 1 29,900 29,900

Total     2,45,900

O F F I C E E Q U I P M E N T

Other equipment No. Rs/Unit Rs

Computers 1 25,000 25,00

Computer printer 1 12,000 12,000

Telephones 2 3,500 7,000

Fax m/c 1 12,000 12,000

Software 1 30,000 30,000

Total   86,000  

P R E M I S E S F O R S H O P A N D S T I T C H I N G U N I T

The size of the shop should be at least 800 Sq.ft i.e. 20 feet front and 40 feet depth.

The shop will be obtained on rental basis, and the rent estimation for such a shop is Rs 56,000/month.

Rent cost detailSecurity for renting shop/outlet (Rent @ Rs.56,000per month. 3 months rent as security)

1,68,000

Interior decoration (installing lighting, mannequins,hanging racks, mirrors, glass panes, cash counter,and other décor, etc.)

4,37,884

Security for renting a house for installing the stitching unit (Rent @ Rs15,000 per month)

45,000

I N F R A S T R U C T U R E R E Q U I R E M E N T S

Description Sq. ft

Main shop 600

Try room 36

Small store 100

Kitchen 64

Building for stitching unit 10 Marla house

9 . P R O J E C T E C O N O M I C S

Project CostDescription Cost(Rs)Machinery and equipment 1,66,300

Furniture and fixture (Interior decoration)

4,37,884

Office equipment 86,000

Security deposits for premises 2,13,000

Pre-operating expenses  

Salaries 31,000

Promotional expenses 67,246

Total capital cost 1,299,430

Working capital  

Raw material( Fabric & Accessories) 1,04,680

Prepaid rent( Boutique and stitching unit)

4,26,000

Total working capital 5,30,680

Project cost 1,830,110

Project ReturnsInternal rate of return 67%

Payback period (years) 1.50

Net present value(NPV) 3,684,374

Financing plan

Financing   Rs

Equity 60% 1,098,066

Debt 40% 7,32,044

10.KEY SUCCESS FACTORS

There are a number of factors, which contribute towards the success of a project. In case of the project of Boutiquesome of the Key Success Factors are as follows:

Proper care while producing dresses should be adopted

Proper Inventory management i.e. keeping minimum inventory as per past sales trends.

The dress designs should be according to the emerging trends and fashions.

Designing of dresses according to the consumer tastes/preferences gathered through consumer surveys.

The location of the outlet should be properly selected and attractively decorated so as to target the clientele effectively.

The customer satisfaction should be given due importance, because it is the customer satisfaction, which can increase the sales. Hence, excellent customer service should be provided.

11. THREATS FOR THE BUSINESS 

Competitive Structure of the market

The market of the boutiques is highly competitive; therefore if the entrepreneur is not well responsive to the tastes and response of the clientele as well as the fashions in vogue he/she may not be able to capitalize the opportunity properly.

Do not partner with a competing store.

Pilferage in the designs

The designs which a designer produces can be sold by the staff even before that design is launched and that can pose serious threat to the business because in the fashion industry it is the uniqueness of the design which matters.

Selection of the wrong venue

Selection of the wrong venue can be a major hurdle in achieving the desired business objectives. Selection of the wrong design

If the designs are not selected according to the tastes of the clientele then it can be detrimental for the business, so the clientele taste should be properly tracked.

Improper documentation of the sales receipt record may lead to problems with Tax department.

THANK YOU