Fashion Retail Business Plan Example – Fashion Boutique Business Proposal
Fashion Retail Business Plan
1. FASHION RETAIL BUSINESS PLAN EXAMPLE Business Idea
FASHION RETAIL BUSINESS PLAN EXAMPLE COMPANY is the concept of a modern women’s fashion company with a shop presence in the FASHION RETAIL BUSINESS PLAN EXAMPLE LOCATION and associated online retail. With experience in the fashion world, FASHION RETAIL BUSINESS PLAN EXAMPLE FOUNDER already has a large social media fan base, giving her a huge marketing advantage. In addition, already established contacts with potential suppliers exist. After an intensive advertising campaign on the Internet, the online shop will be opened first, followed shortly thereafter by the shop, in a lively area of FASHION RETAIL BUSINESS PLAN EXAMPLE LOCATION with a lot of patronage. The opening will also ensure that the name of the company is known in the run-up to the opening with a promotional video with a prominent cast.
The startup company will likely be able to hold its own well among the competition, thanks to its unique selling propositions. With FASHION RETAIL BUSINESS PLAN EXAMPLE COMPANY presenting special, carefully selected items, and a strong focus on social media marketing, it clearly sets itself apart from the mass of fashion boutiques and other apparel stores in FASHION RETAIL BUSINESS PLAN EXAMPLE LOCATION, their market area can be penetrated quickly.
The founder, FASHION RETAIL BUSINESS PLAN EXAMPLE FOUNDER, is in the position to take over all activities independently as Managing Director. She has completed education as a beauty and wellness specialist, and has worked for several years in different companies with service orientation.
1.2. Product range
The fashion company will mainly focus on women’s clothing imported from the US and XXXX. With a main focus on women’s clothing, which is complemented by an exquisite selection of shoes and accessories. The boutique will stock a selection of women’s fashion items in small quantities and shopped as needed.
The product range should be composed of the latest fashion trends, stylish classics and simple basics. Above all, pieces that represent the so-called “Festival Look” are to be found in the collection. This look features special cuts and eye-catching color combinations that contrast with the more classic styles of other stores like XXXX or XXXX. These include casual blouses, denim hot pants, flutter dresses and sneakers. Just as trendy are the garments that are known as the “Bohemian Look”. These garments are similar to the festival look, but on the whole simpler, more minimalist and versatile combinations.
Both styles have in common that express this eccentricity and are well combined with each other. Especially women who like to dress individually to underline their own personality, like to dress with garments of these lines. Fittingly, there will also be a number of “Evergreens”,and timeless pieces in discreet colors or black. At the end of the year, additional cocktail and shift dresses will be imported, as the feast days and the turn of the year are often looking for chic yet affordable clothing.
What unites the entire product range is that it consists of very high-quality trend items that are offered to a quality and fashion-conscious clientele. With this goal in mind, the company will operate flexibly to import selected items with great potential through their partners.
1.2. General corporate strategy / unique selling points
In the fashion industry, it is particularly important to recognize trends and to show them in a clever way. The fact that FASHION RETAIL BUSINESS PLAN EXAMPLE FOUNDER has already had several social media accounts for a long time, and has brought a considerable number of fans there, gives her a valuable marketing channel that will help the company succeed in a very short time. Fashion-conscious young women are often online looking for new trends and researching fashion on various platforms such as XXXX. FASHION RETAIL BUSINESS PLAN EXAMPLE FOUNDER’s existing fan base makes it easy to use advertising in the form of fashion photographs.
FASHION RETAIL BUSINESS PLAN EXAMPLE FOUNDER will also be personally behind the sales counter of her fashion boutique, unlike many other competitors, where often less service-oriented and advisory-competent, and sometimes also relatively weakly motivated employees are selling.
Buying special items with high potential and fast turnaround time is an important element in successful business management. FASHION RETAIL BUSINESS PLAN EXAMPLE FOUNDER has partnerships with friendly textile manufacturers and fashion designers in XXXX and XXXX, who will constantly look for items that meet these criteria.
Obtaining a substantial customer base and possibly other suitable collaborative and advertising partners is an important part of the overall business strategy. The founder expects that her personal expertise as a trendsetter and her focus on friendly care will be the deciding factor that will make the boutique one of the best fashion stores in her district. In order to fulfill this goal, one will take a lot of time for each individual customer, and be able to give the customers the impression that they can have specific knowledge (eg typology, materials, origin, design philosophy, appropriate make-up / accessories, etc.) any time. It has to be done here with a particularly competent fashion advice.
1.3. Vision/Mission
FASHION RETAIL BUSINESS PLAN EXAMPLE COMPANY aims first to expand its existing online fan base, to find a suitable location for the fashion business in FASHION RETAIL BUSINESS PLAN EXAMPLE LOCATION, and then to create a well-known address for fashion-conscious young women in FASHION RETAIL BUSINESS PLAN EXAMPLE LOCATION. Above all, the establishment of a modern, interactive web shop and activities on important social media channels, are to be extended.
Customers should be so completely convinced by the fashion awareness and flair of the founder, the service quality and the uniqueness of the product range that they keep coming back.
In the first three years, besides the managing director herself, up to ten employees will work in the shop. The annual turnover in the first year should be approximately at $XXXX (USD)
2. Market Analysis
In order to be able to assess the market entry prospects of FASHION RETAIL BUSINESS PLAN EXAMPLE COMPANY well, it is worth taking a look at the overall local consumer climate, the online trade including the fashion industry as well as the consumer conditions prevailing in FASHION RETAIL BUSINESS PLAN EXAMPLE LOCATION. The local competition and the advantages of the site will be discussed in more detail in the subsequent parts of the business plan.
According to the XXXX Consumer Climate Index, the mood among consumers is also stable at XXXX. In the period from January to June, the overall consumer confidence indicator of X.X climbed to X.X points and is expected to rise above XX points in July. The economic expectations of consumers increase with a clear increase of X, X points to XX points, thus rising into the upper positive range. Consumers continue to believe that the economy is growing, which is reflected in their consumption behavior. The good labor market situation is also the reason for this rising optimism. With XX, X million employees, this is the highest level since XXXX.
This is also linked to the optimistic income expectations, which has increased significantly compared to spring. With XX, X points is also a record high since the XXXX. The slight decline in the propensity to buy is, according to XXXX, not to be interpreted negatively, since this relates primarily to larger purchases, which require a low interest value. However, as income expectations and employment figures are extremely positive, there is no danger to the founder’s plans. The propensity to consume in FASHION RETAIL BUSINESS PLAN EXAMPLE REGION remains at a high level.
Consumer climate FASHION RETAIL BUSINESS PLAN EXAMPLE REGION
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Source:XXXX
The retail sector is profiting significantly from the consumer climate in FASHION RETAIL BUSINESS PLAN EXAMPLE REGION. According to the local Federal Statistical Office, sales of non-food products in February XXXX are higher than in the previous year at X, X% (adjusted for price) and X, X% (nominal). In particular, the Internet and mail order business recorded above-average growth rates (price-adjusted + XX, X% and nominal + XX, X%).
According to the Federal Statistical Office, the clothing and accessories sector has an average annual expenditure per household of $XXXX (USD). On an annual average, XXXX resulted in a total of XX XXX million dollars. A number that has risen steadily in recent years, as shown in the table below.
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Source: XXXX
Although FASHION RETAIL BUSINESS PLAN EXAMPLE LOCATION is located at the per capita purchasing power in one of the rear seats, the city still offers a good sales market with its large population. FASHION RETAIL BUSINESS PLAN EXAMPLE LOCATION tops the table of the highest-spending cities with a total of XXX million dollars. Therefore, the city is also an attractive location for many retail companies, especially in the fashion industry.
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Source: XXXX
In addition to the total purchasing power in the city, comes the high tourist volume. According to the XXXX, X million visitors came to FASHION RETAIL BUSINESS PLAN EXAMPLE LOCATION last year, making the city one of the most visited cities in XXXX, Suming up to around $XXXX (USD) value, without expenses for overnight stay. Retail also benefits from sales of $XXXX (USD). As can be seen in the table below, sales increased by XX% over the course of XX years.
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Source: FASHION RETAIL BUSINESS PLAN EXAMPLE LOCATION (FASHION RETAIL BUSINESS PLAN EXAMPLE LOCATION Tourism & Congress)
In addition to the data about FASHION RETAIL BUSINESS PLAN EXAMPLE LOCATION, online trading numbers are also important for the start-up company. According to the latest XXXX study in XXXX (“XXXX Online-Trade XXXX”), FASHION RETAIL BUSINESS PLAN EXAMPLE LOCATION’s desire to buy, is reflected in online trading. Since XXXX, this segment has been growing at an annual average of four billion dollars.
XXXX grew the local online market by XX, X percent and XXXX by just under XX% to a market volume of XX billion dollars. The total turnover of online commerce compared to neighbors is shown in the following figure. Only XXXX is ahead of FASHION RETAIL BUSINESS PLAN EXAMPLE REGION with a larger volume of sales.
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Source: deals.com
Within the online trade segment, apparel products are in first place with more than 20 billion dollars.
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Source: XXXX
According to a survey by “XXXX”, by the year XXXX the online trade in clothing and footwear in SHORT BUSINESS PLAN EXAMPLE REGION is expected to grow annually by an estimated X, XX%.
Overall, the market view from the various perspectives gives a positive impression of the plans of FASHION RETAIL BUSINESS PLAN EXAMPLE COMPANY. In all likelihood, customers will quickly perceive the offer online as well as directly at the location of the company and use it accordingly. Over time, every satisfied customer generates positive online reviews and word of mouth, making the growing customer base a reliable source of revenue for FASHION RETAIL BUSINESS PLAN EXAMPLE FOUNDER and her associates.
FASHION RETAIL BUSINESS PLAN EXAMPLE COMPANY will have to prevail in an already respectable competitive environment. No matter where you settle down, there will always be a number of boutiques in the neighborhood. The competitive environment is difficult because FASHION RETAIL BUSINESS PLAN EXAMPLE COMPANY faces a multitude of companies with similar business interests, especially in e-commerce. The number of apparel and footwear providers is in the tens of thousands, in this region alone. However, very few of these vendors really have a profile and many do not have the know-how to set up a comprehensive social media presence.
As with most industries, three factors that play a crucial role in commerce and determine the success and failure of start-ups are: price, quality and the communication policy that companies use to highlight individual strengths.
Through a clever combination of social media activities and articles in the shop, targeted accents can be set that will set FASHION RETAIL BUSINESS PLAN EXAMPLE COMPANY apart from other online shops as well as from the many small boutiques.
The customer also expects a certain quality level of care when visiting a boutique for trendy fashion. Lack of availability and the expertise of one of the major fashion retailers is why customers choose a smaller boutique and do not shop directly at the XXXX or XXXX retail outlets in the FASHION RETAIL BUSINESS PLAN EXAMPLE LOCATION center, for example. For this reason, it is so valuable that the founder herself will be behind the sales counter at the FASHION RETAIL BUSINESS PLAN EXAMPLE COMPANY boutique. The service and especially FASHION RETAIL BUSINESS PLAN EXAMPLE FOUNDER herself will be the figurehead for the company.
In purchasing, therefore, the sources of supply must be selected with the utmost care. In a highly competitive environment, the boutique cannot afford to have dissatisfied customers and lose market share due to shortcomings in the goods sold.
One will usually only have one opportunity to satisfy the guest. If this opportunity is missed, the customer will seek out one of the many other providers, most notably through the internet and the risk of receiving poor ratings, such as through XXXX or XXXX. These new circumstances represent another reason why the founder will have to be 100% present with each individual customer, to oversee that their wishes are fulfilled entirety.
2.2 Target group
The target group of FASHION RETAIL BUSINESS PLAN EXAMPLE COMPANY can be generally referred to as young professionals. These are highly qualified and belong to the technology-affinitive generation X and Y. Their good training opens up good earnings prospects already at the start of their careers and in later professional life. They are always online and usually have several social media profiles. They are well-informed and follow their buying decisions for reviews and recommendations. Therefore, this will be the main focus of communication policy when it comes to selecting suitable media in this area.
2.3 Risk analysis
The risks the founder feels exposed to are primarily operational risks. For example, it is important, because of the high rent and energy costs, to have substantial fixed cost block, and that sales are generated quickly enough.
Health and accident insurance are very carefully assessed to be legally secured. Insurance will also be used for damage and theft. Because of the nature of the business, it is extremely important not to compromise on performance and to focus on quality and reliability. Only in this way can the right ambience be created and long-term customer loyalty built up.
Since a well-designed website, and local search engine optimization should be operated, benevolent customer opinions are extremely important, provided that they are communicated on the rating portals (for example, XXXX, XXXX, etc.).Due to the experience and qualifications of the founder, the numerous challenges of the business model are very likely to be handled well.
The following SWOT table shows the strengths, weaknesses, opportunities and threats in a clear format.
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4. About the location
FASHION RETAIL BUSINESS PLAN EXAMPLE LOCATION has become more and more of a magnet for people from all over the world over the past decade. Relatively low rents in all city locations, a well-developed infrastructure and a high quality of life, make the city one of the most attractive locations for young companies in FASHION RETAIL BUSINESS PLAN EXAMPLE REGION. Above all, people who are involved in the IT and media industries as well as in the creative industries, come to FASHION RETAIL BUSINESS PLAN EXAMPLE LOCATION and settle here.
One reason for this, in addition to the young, trendy scene, is the wide range of consulting and funding opportunities for start-ups and young companies. FASHION RETAIL BUSINESS PLAN EXAMPLE LOCATION also entered the fashion metropolis list a few years ago with Fashion Week. More and more fashionable designers and fashion chains settle in the city. With around X.XXX fashion companies, FASHION RETAIL BUSINESS PLAN EXAMPLE LOCATION is now the hippest fashion landscape in FASHION RETAIL BUSINESS PLAN EXAMPLE REGION. The courses offered in this area are also expanding. A total of XX schools offer training and study courses in this area. On the one hand, there are interested buyers for a fashion company, on the other hand FASHION RETAIL BUSINESS PLAN EXAMPLE LOCATION always provides important inspirations, which can be set as trends in the fashion industry.
5. Partner
There are already numerous business contacts with potential suppliers. Some of the contemplated suppliers are longtime friends of the FASHION RETAIL BUSINESS PLAN EXAMPLE FOUNDER and therefore considered to be particularly reliable and flexible. In addition, the long acquaintance between founder and supplier ensures that only quality-tested goods actually find their way to the founding company.
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6. Marketing plan
6.1 Pricing strategy
Women’s clothing of FASHION RETAIL BUSINESS PLAN EXAMPLE COMPANY will be located primarily in the mid-range price range. Since the goods can be purchased reasonably priced, the margin is high. That’s why special promotions and online sales can be used to offer special marketing promotions that add additional advertising to the company.
6.2 Communication policy
FASHION RETAIL BUSINESS PLAN EXAMPLE COMPANY will choose the marketing mix in the light of a fiercely competitive environment, as mentioned above, in order to build the most effective media presence possible. The already very popular XXXX account of FASHION RETAIL BUSINESS PLAN EXAMPLE FOUNDER, will make it possible to approach a large audience right from the beginning of the company. Especially fashion that can be found on the streets of FASHION RETAIL BUSINESS PLAN EXAMPLE LOCATION, is currently being shared and commented on social network. Models are randomly photographed on the street and the clothes presented. With the good reputation that FASHION RETAIL BUSINESS PLAN EXAMPLE LOCATION has achieved internationally in fashion, fashion-conscious people around the world are constantly looking for inspiration and trends from the capital. A favorable and effective marketing method for the company is offered through an attractive website with integrated online shop, young women worldwide can buy the featured articles. Here there will be combination packages, that is, price offers, when the entire outfit is purchased at once.
In-house guided events such as workshops or fashion previews will also be part of the marketing activities. Customers are registered with their e-mail address and signed agreement to contact them for marketing purposes and can be made aware of actions, events, styling workshops etc. within the scope of legal possibilities with e-mail marketing.
Being present at industry events (fashion shows, press and other industry information and networking events) is important for effective communication with customers and potential partners. There will also be a public launch event for the opening of the shop in FASHION RETAIL BUSINESS PLAN EXAMPLE LOCATION. Here are invited both, local personalities as well as representatives from the media and fashion industry.
Internet presence and local search engine optimization will be an important success factor for the long-term business success, as it will fulfill important functions as a passively accessible information and contact platform around the clock.
To be consistent with the company, the corporate identity plays a special role. Communicating a consistent look helps customers quickly memorize the business. All funds used for internal and external corporate communication are therefore given a uniform design.
7. About the founder
FASHION RETAIL BUSINESS PLAN EXAMPLE FOUNDER is the Managing Director of FASHION RETAIL BUSINESS PLAN EXAMPLE COMPANY. Her qualifications are at a level appropriate to her business. She has completed training as a beauty and wellness specialist and has already worked in sales and service in various companies. Due to her bilingual upbringing as well as many stays abroad, FASHION RETAIL BUSINESS PLAN EXAMPLE FOUNDER has language skills in five foreign languages. In addition to local languaje and XXXX, she is fluent in XXXX, XXXX and XXXX.
FASHION RETAIL BUSINESS PLAN EXAMPLE FOUNDER describes herself as a hardworking, strong and communicative person and has numerous local contacts in FASHION RETAIL BUSINESS PLAN EXAMPLE LOCATION. With this mix of skills and soft skills, she will be able to meet the requirements of Managing Director of FASHION RETAIL BUSINESS PLAN EXAMPLE COMPANY with sovereignty and success.
- Employees
In order to protect the starting resources in the initial phase, initially only two sales assistants are to be hired as temporary employees who support the Managing Director. These are primarily responsible for advising clients in the presence business. As soon as the business figures allow it, more forces will be hired. In the first year, up to XX employees are planned.
In addition to the two sales forces initially hired, a showcase designer for the decoration of the shop windows, a cleaner and three temporary helpers for the shop are to be contracted in the course of the year. The contracts with the five additional employees should initially run on $XXXX (USD) basis.
For the online shop, a force is additionally planned, which takes care of orders and shipping. This should also support the fixed staff in the store in the processing of orders. As a comprehensive task here at least one XX-hour job is scheduled. Since the marketing for shop and online shop occupies a central place, also here, in the second half of the business year, another full-time employee is to be hired, which should concentrate above all on the social media area. In the first half of the year, this position will be taken over by an intern who supports FASHION RETAIL BUSINESS PLAN EXAMPLE FOUNDER with online marketing. This should be taken after the first half of the year, with good suitability, as a full-time force. All tasks related to the design (design logos, print materials, etc.) are set to a freelancer, which is called up when needed.
However,.FASHION RETAIL BUSINESS PLAN EXAMPLE FOUNDER will continue to do the main work at all times, working in addition to the management and accounting duties in operations, and maintaining contacts with customers, suppliers and other potential partners of the company.
The foundation is the form of an entrepreneurial company to avoid a private liability, and to enter the business with a respected legal form. The fact that additional shareholders can easily be integrated into the enterprise, as well as well-planned costs for construction and maintenance of the GmbH are further advantages which promoted the decision for this legal form.
The legal form is also a legal person. Contracts can be concluded and accounts can be opened in the name of the UG. Makes it easier to sell the company.
10. Accounting
Necessary routine work in connection with taxes, electricity, internet and telephone bills as well as account statements are handed over to a tax consultant on a monthly basis. The tax consultant is also entrusted with the preparation of sales tax filing and annual financial statements.
11. Financing plan
11.1. Investment and cost structure
The initial investments, which mainly consist of building up the operational infrastructure, amount to $XXXX (USD). The total acquisition costs initially relate to the expansion of the website, and online shop. From the third month on, the design of the store and the warehouse will be used at this early stage to allow the earliest possible opening of stores. This is to guarantee that sales can be achieved as soon as possible.
Fixed costs
The fixed cost share is mainly attributable to rent, marketing expenses and personnel expenses. Operating costs such as electricity, accounting, telephone and insurance costs as well as travel expenses also represent a share of the expected fixed costs. Care is taken to conclude long-term contracts in order to avoid possible fluctuations in fixed costs, and to ensure maximum planning security.
The variable costs, which consist primarily of the purchases of goods and insurance, and customs costs incurred for imports and exports, will increase in the course of business activity. To a lesser extent marketing costs can also be added to the variable costs. These are not subject to any particular fluctuations due to a balanced communication strategy.
11.2. Sales and operating income
As expected, sales of FASHION RETAIL BUSINESS PLAN EXAMPLE COMPANY will increase due to the business model. Apart from minor fluctuations, continuous sales growth is expected beyond the first financial year.
After a total turnover of $XXXX (USD)in the first financial year, a considerable increase in sales is expected in the second financial year. In the third financial year, total revenue will amount to $XXXX (USD).
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A Figure X: Sales trend X. – X. fiscal year
Source: Financial plan
Due to the high profitability of the business project, a positive pre-tax profit can already be expected from the first month. Depreciation charges will result in a slight decline in profits in the twelfth month of the first fiscal year, but this will not adversely affect the full year pre-tax profit. From the third financial year, the pre-tax profit will increase to $XXXX (USD)
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Figure X: Operating profit before taxes
Source: Financial plan
11.3. Capital
The founder Ms. FASHION RETAIL BUSINESS PLAN EXAMPLE FOUNDER currently has no equity capital and would like to use this business plan to finance a target debt financing of apprx. XXX.XXX euros in order to create the material basis for a quick, uncomplicated launch.