inv2 bof business proposal & plan- details

The Business Of Fashion

CONFIDENTIAL - DO NOT DISSEMINATE. This business plan contains confidential, trade-secret information and is shared only with the understanding that you will not share its contents or

ideas with third parties without the express written consent of the plan author.

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The Business of Fashion

Little wear Business; and A Passion………..

Contact Information

MRS.NITHYA A - PROPERITOR MR. SANGEET KUMAR M V - ADVISOR

[email protected]

[email protected] NO: 9, MKP NIVAS, 5 – RVE LAYOUT.

KANGEYAM ROAD, TIRUPUR TAMILNADU-641604 http://thebof.wix.com/bof

+91 80569 01777

[email protected];

SITE NO: 9, S.F.NO-30, MUDALIPALAYAM VILLAGE. MUTHANNAMPALAYAM, TIRUPUR

TAMILNADU-641606 https ://in.l inkedin.com/in/sangeetkr

+91 80569 55577

mailto:[email protected]

mailto:[email protected]

http://thebof.wix.com/bof

mailto:[email protected];

https://in.linkedin.com/in/sangeetkr




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1.0 Executive Summary

Company Profile Summary

Ingenious and technically viable- you can’t engender a quality product without attention to detail. The BOF team has experienced fashion designers with the ability to engender full apparel and technical

packages for your developing brand.

Full Accommodation Design & Engenderment

Includes

– Initial Consultation

– Fabric/Fit

– Design Studio

– Technical Packages - CAD

– Patterns/Protos - CAD

– Logos/Labels/Trims - TrimLab

– Sales Samples

– Cut Make and Trim - Mass Production

– Packaging and Shipping

They are erudite in full product life cycle, from research through engenderment, ascertaining your product will get the attention it deserves. To have your men’s, women’s, and children’s apparel and

accessories packages done on trend + on time.

The BOF Engenders an Incipient Approach to Apparel Engenderment It’s no secret that making it in the fashion industry as an emerging designer/brand is no facile task. Between sourcing logistics, costs, engenderment, marketing and sales, launching a line is an astronomically immense endeavor that requires an abundance of commitment. Auspiciously, because of this, newcomers to the industry are getting more ingenious, and much of this ingenuity is going towards making the startup process more

facile.

BOF offers Apparel & Textile Design, Technical Design, Patternmaking, Packaging, and Manufacturing Support. We are zealous about optically discerning designers prosper by providing the implements to avail promote magnification regardless of company size. From initial design to your technical

package, we work with you and avail to guide you through the entire development process.

Our benchmark is to provide our customers expeditious fashion, twice a month we will launch 10

incipient products. Product’s with functional quality, perdurable for Indian conditions. The

BOF ken how the headache of minuscule run engenderment and all the stress that comes along with it

can sometimes bring you to tears?




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It’s so arduous. As an incipient brand, it feels like finding a manufacturer who is disposed to work with your short runs, who doesn’t push you aside when a more sizably voluminous order comes through,

and who doesn’t treat you as if you don’t ken the first thing about this business, is infeasible.

This early stage of the business– production– and the dubiousness and mystification that come with it, can make you question your decision to do this at all– it can make you feel like you were crazy to

cerebrate you could ever build a business around doing what you dote.

BOF offer tech pack engenderment, samples, and engenderment runs.

The expertise- BOF is a Master Tailor; BOF has a prosperous tailor shop, storefront, and yoga wear brand. She’s spent +15 years in this industry and kens it well. The BOF team is composed of expert

seamstresses and designers who ken how to make the highest quality habiliments and appurtenant.

BOF emanates from the designer’s perspective– BOF understands your concerns, questions, and fears

— and therefore does not judge or dismiss you as you make your way through the process.

As Ms. Nithya – Woman entrepreneur and proprietor of BOF verbalized:

“It’s about Fabric + Thread + a Dream. Let’ do this!”




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Market Research Summary

Designer kids wear market to hit Rs 95K crore by 2016: ASSOCHAM

Rising media exposure, high disposable income of the parents, peer pressure and brand consciousness among children are driving the growth of kids apparel market in India from the current level of Rs.

72,000 crore to Rs 95,000 crore by 2016, a study says.

This segment is growing at a compound annual growth rate (CAGR) of about 20 per, finds the study by apex industry body ASSOCHAM. In recent times, kids fashion has percolated down to Tier-II and Tier-

III cities like Dehradun, Ludhiana, Pune, Nashik, Indore, Varanasi and many other smaller cities.

“Children have become brand conscious, parents have more money (thanks to double -income families in the cities) and peer pressure is growing. This is only segment which has not been impacted by the

economic crisis and poised for significant growth”, said DS Rabat, Secretary General, and ASSOCHAM.

Earlier, the trend was to buy functional kids’ apparel rather than branded. Children’s garments were usually purchased from small stores and from street shops, while branded garments were only

bought by very high-income families, the ASSOCHAM paper added.

The kids segment is the most promising in apparel retail in India. Big brands are only now realizing its

true potential. Sports goods major Reebok launched its kids-wear brand Reebok Junior mid last year.

These brands are developing categories such as infant wear, kids' formal wear, kids' ethnic wear, swim wear and casual wear, along with a wide range of other merchandise for children, adds the report. Indian fashion designers are eyeing the premium space. Some have begun retailing their wares for kids through stores such as Kidology in Delhi, Mumbai and Hyderabad, and in Mumbai.

The big business houses are also examining the opportunity includes Pantaloons’ chain and Mahindra Retail. Online sites have also launched for shopping branded kids wear and accessories for the age group between 2-16 years. The portal brings collection from some of the biggest brands in the categories of apparels and accessories.

Marketing Summary

To date, BOF brand has grown through word of mouth referrals from current customers wearing the

pieces.

BOF’s key marketing strategy will be to expand awareness of the products beyond their existing customers. To achieve this, BOF has secured an eminent team of employees for designing, product

development, pattern making, fabric, accessories and trim sourcing.

A stand-alone factory for its in-house manufacturing, quality control, lab test & checking and packing- dispatch. A secondary strategy will be to increases our product range by offering woven fashion styles, which includes toddler styles like woven girls top, gowns, and frocks. Boy’s styles like washed

pants, trousers, denim products etc.

BOF’s studio and head office will be located at 10, Lakshmi Apartments’, Kangeyam Road, Tirupur. Warehouse, manufacturing will be operated from our unit in SIDCO-TEKIC, Mudalipalayam, Tirupur-India. Woven will be outsourced from Erode and Salem. Business owners insurance, a starting materials inventory, and an online ecommerce accounting and inventory system will be needed.




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Additional machinery for CMT, work area of 5000Sq Feet will be incorporated with our new

manufacturing unit getting functional from the early 2016.

Finance Summary

BOF is looking for an investment of INR 30, 00,000 will be required to extend the product range and provide longer credit period for the clients. INR 30, 00,000 will be needed to revitalize the business with INR 10, 00,000 coming from previous product sales reinvested by the owner. In the first year of business BOF is forecasting sales of INR 40, 00,000 (100000 Pcs sales) with estimated expenses of

INR 30, 00,000.

This will produce a running inventory of an additional 50000 Pcs at yearend valued at INR 10, 00,000. In year two, BOF estimates an increase in sales of 3% or INR 120000 with expenses increasing by 1% to

INR 40000.




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2.0 Company Profile

Business Overview

The Business of Fashion is kids wear & fashion accessories manufacturer. Chiefly concentrating on fashionwear for newborn infant & kids aged up to 8 years old. Exquisitely designed, developed and manufactured positioned on seasonal, regional fashion drift. Blend Intl fashion stirs & spark into apt perception for kids wear. The Business of Fashion was established on 04/08/2010

One Crucial Edification about the Fashion Manufacturing Industry!!!

For some of you this may be a flamboyantly discernible edification. But when you’re endeavoring to do design and marketing and media outreach and customer accommodation and blogging and everything else, it can be facile to take engenderment for granted and surmise someone else is

handling it. The thing is no one is ever going to care about your product as much as you do.

“If you invest time in your sewers, then they’ll invest their time in you”.

The Business of Fashion is a both product & service business.

INFANTWEAR TODDLERWEAR KIDS UNDERWEAR KIDS NIGHTWEAR

AGE GROUP – JUST BORN(0 M TO 12 M)

AGE GROUP – 1A M TO 4A AGE GROUP – JUST BORN (0

M TO 4A) AGE GROUP – 1A M TO 4A

GENDER – BABY BOY & BABY

GIRL GENDER – BOY & GIRL GENDER – BOY & GIRL GENDER – BOY & GIRL

Bodysuit (unisex) T-Shirt-Girls Boys Brief Boys Pajama Set

Sleep suit (unisex) Capri-Girls Boys Sleeve less Vest Girls Pajama Set

Mitten (unisex) Blouse-Girls Boys Short Sleeve Vest Boys Shorts Set

Botties (unisex) Voile Top-Girls Girls Panties Girls Shorts Set

Cap (unisex) Skirt-Girls Girls shorty’s

Romper (unisex) Leggings-Girls Girls Body Slip

Dress (baby girl) Jeggings-Girls Girls Spaghetti Slip Open feet sleep suit

(unisex) Jumpsuit-Girls Girls Capri Tights

Pajama set (unisex) T-shirt-Boy

Short-set (Babyboy) Short-Boy

Denim Pant-Boy

Twill pant-Boy

Dungaree-Boy

Pullover-Boy

Hooded jacket-Boy




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Company History

THE BUSINESS OF FASHION was established in 2003. The Business of Fashion has gained an ecumenical following as an essential daily resource for fashion creative’s, executives and entrepreneurs in over 200 countries. It is frequently described as indispensable, required reading and an addiction. The Group operates an extensive ecumenical sourcing network covering over 8 offices and over 100 employees in more than 4 economies across North America, Europe and Asia. In integration to the wide range and variety of consumer products available through its sourcing network, The Business of Fashion withal leverages its strengths in custom product design and development to provide

consummate ecumenical sourcing solutions for its customers.

Management

Our Expertise gives an edge in sourcing, which enables us to increment our client's profitability & market reputation. Being a quality driven company, we lay massive accentuation on the quality of our garments. Our garments are noted for their quality workmanship. We ascertain that the fabric is of

the finest quality. An abundance of accentuation is laid on the designs, color and vigor of garments.

Distributing fashion business astuteness on emerging designers, disruptive technologies and ecumenical brands that are making their mark on the industry at a time of unprecedented change. Style is as consequential as quality is paramount. It’s worth pointing out now that not all fashion businesses have to operate at the high cessation of luxury, albeit it seems that that is where every designer wants to be. Recollect, your business concept needs to offer a clear proposition of value to your customer, and that value could be world-class design at more plausible prices. Visually examine Zara or H&M or Coach or American Apparel and how they have taken clear business conceptions that sanction them to distribute great fashion to the masses. While it may seem ideal to be a “luxury” brand, withal recollect that some of the most influential fashion businesses are on the high street and

in your neighborhood mall, because they dress thousands of people around the world.

Understand their psychology, emotional needs and relationship with habiliments. Visualize all the aspects of their lives and assess how your business can coalesce into making them even

preponderant.

Location

The Business of Fashion will be manufacturing. The Business of Fashion will be located at Tiruppur, Tamilnadu, India. Tiruppur is a city in the Kongu Nadu region of the Indian state of Tamil Nadu.

Tiruppur or Tirupur is a city in the Kongu Nadu region of the Indian state of Tamil Nadu.

Tiruppur is a major textile and knit wear hub contributing to 90% of total cotton knit wear exports from India. The textile industry provides employment to over six lakh people and contributed to exports

worth ₹200 billion (USINR 3.1 billion) in 2014-15.

Tiruppur is also known as the "knitwear capital" of India, accounting for 90% of India's cotton knitwear

export. It has spurred up the textile industry in India for the past three decades.

Tiruppur is located at 11.1075°N 77.3398°E.




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Goals & Objectives

Our mission is to provide best of the product; at the lowest prices.

BOF offers Apparel & Textile Design, Technical Design, Patternmaking, Packaging, and Manufacturing

Support.

We are zealous about optically discerning designers prosper by providing the implements to avail promote magnification regardless of company size. From initial design to your technical package, we

work with you and avail to guide you through the entire development process.

Our benchmark is to provide our customers expeditious fashion, twice a month we will launch 10

incipient products.

Vision & Mission

The iconic line from the movie Field of Dreams, “If you build it they will come,” has never been as subsidiary in the explication of a vocation path like that of the fashion designer. Albeit the commencements of the design trade require hands-on learning and training, the phrase does not

always hold true when it comes to business.

Generally verbalizing, it is mundane to have some type of quality issues with engenderment. Customarily these things transpire as a miscommunication between the designer and the contractor,

or by having the contractor follow verbal descriptions rather than an authentic sample.

Here are some suggestions to avail quality control:

• Sew by sample. This is the most subsidiary thing. Give your contractor an impeccable sample to follow for engenderment, this sample should be precisely how you would relish your product to look, up to

the fundamental details. Don’t leave anything open for interpretation of the contractor.

• Have your contractor make a top of engenderment (T.O.P) sample that you will approve afore they commence sewing your consummate engenderment. This way, if they are doing something

erroneous, you’ll catch it and it can still be fine-tuned afore they perpetuate with the whole run.

• If you are located near your contractor, visit them on a conventional substratum throughout the

process, to ascertain everything is going well.

• If there are stages in the process that need extra attention, optically discern if it is possible for you to engender “check points” where you will require to approve them once they get to this stage and afore the product is culminated. Ascertain you designate time for them to send the product to you, if

you cannot peregrinate to them.

• Allocate more time for engenderment if possible, always have some extra days on hand (don’t let

your contractor ken this) so you can address unexpected issues when they come up.

• Find a contractor that you like and stick with them.




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• Think about the engenderment process when you are designing your product.

• Keep your designs consistent; don’t change things all the time if you can evade it. This will confound

your contractor and open doors for mistakes.

BOF is featuring a full fledge testing Lab, a standalone Quality Management Team. A planarity equipped Sampling Department. Overseen by a Merchandising department and Account Manager to minimize

the Miss communication.

Finding the Right Sample Maker for Your Line

The process of finding the right sample maker for your product can sometimes be a challenging experience. It can take time to find a sample maker who genuinely understands your vision, fixates

on your injunctive authorizations and does not charge a fortune to engender your samples.

Many more minuscule engenderment houses only want to do engenderment projects. These engenderment houses will often take on sampling, but only if they are assured that an engenderment

order will be coming in.

The expertise - BOF is a Master Tailor; BOF has a prosperous tailor shop, storefront, and yoga wear brand. She’s spent +15 years in this industry and kens it well. The BOF team is composed of expert

seamstresses and designers who ken how to make the highest quality apparel and appendages.

Engender the Perfect Culminating physically contacts for Your Fashion Accumulation with Trim Lab.

When it comes to engendering your products, sourcing all of the consequential pieces (from fabric to zipper) can be one of the most challenging things you do. You have a conception, you have an adumbration, and you have an authentically arduous time getting what you want… Be introduced to our unique Trim Lab; an incipient resource that has popped up with a mission to avail you get your

hands on the trims and notions that you genuinely want for your amassment.

Legal Structure

The Business of Fashion is a corporation.

BOF will operate as a corporation for the foreseeable future. This is the norm for start-ups in this

industry.

The Business of Fashion is interested in securing not at this time.




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3.0 Market Research

Industry Profile & Outlook

The Business of Fashion operates primarily in the Fashion/Clothing Design industry.

Albeit the branded kids wear segment has recorded higher magnification in recent years, it still remains a largely unbranded market, with products sold mostly through unorganized retail channels. The low average lifespan of children’s apparel, a result of the growing height of children, has coerced many value-conscious parents to hold back on spending on children’s apparel, especially in the medium, economy and low-terminus of the market. However, market dynamics vary drastically in the premium and super-premium categories. Brands are a very paramount decision-making criterion for parents and children in these segments. In fact, some of the designers and retailers have even commenced

catering to the ordinant dictation for children’s bespoke apparel.

Most of the organized players in the kids wear market initially focused only on western wear categories like denim, shirts, T-shirts, etc. However, brands and organized players have now commenced foraying into children’s ethnic wear categories and are offering ethnically styled products for kids. Brands and retailer aforetime catering only to adults have elongated their product lines to include children and are endeavoring to transform themselves as a consummate family shopping destination. In this reverence, even international brands have commenced offering children’s apparel. Some Indian manufacturers who had anteriorly been focusing solely on the export market have commenced reorienting themselves to meet the growing demand within the country. Consequently

they have come up with their own brands and independent retail operations.

Urban India today is characterized by a nuclear family with double income parents who are inclined to spend extra higher portion of their wallets on their children. Consequently the spending on children’s apparel, with better brand image and quality has received a boost. Concurrently, Indian kids in both urban and semi-urban India are increasingly exposed to sundry media and are thus cognizant about brands which cater to them. They have additionally commenced participating actively in purchase

decisions relating to their apparel.

Despite the intriguing magnification story of the kids wear segment, a lot remains to be achieved in this market. The opportunities within the kids wear market are definitely lucrative, but tapping these requires well-formulated strategies and high calibers of commitment. Brands and retailers additionally have to ascertain better perforation beyond urban pockets and cater to the price -sensitive children’s segments in semi-urban and rural India. Some of the kids wear brands have struggled in terms of orchestrating store expansions with adequate prudence and analysis and thus have been coerced into rolling back plans or have got entangled in high debt traps and unwarranted business litigations. Incipient entrants could minimize their own learning curve by learning from the challenges and roadblocks faced by the early entrants as well as subsisting players. The ability of brands and retailers to address the categorical requisites of children as well as their parents and to

offer fashion solutions rather than mere products will be critical for their prosperity.




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Local Market

Most companies concur that there is a market for just about every player in India. Home-grown children's wear brands are banking on their expertise in engenderment, sourcing, and design. "India is the most immensely colossal kids' wear market in the world. The Indian consumption story is intact.

It's a great opportunity. In the next 10 months, we will hit the market."

Target Market

The Business of Fashion is focused on selling to Consumers (B2C).

Infant & Kid swear aged 0 – 8 (demographics) New born, Household income: INR 5,000 - 25,000 (demographics) Consumers that look to support local businesses and the community (behavior) Consumers desiring products that provide quality and value as well as reflect the history of Nova Scotia (psychographic) NRI visiting south India looking for a bulk buying or regular buying to reduce

buying in GCC or abroad.

Keys to Success

Critical factor of success of our collaboration, is to continue offering more product in the scope of targeted market. Concentrate more on the product development to come up with indigenous

Sophisticated, urban and modern themed apparels

Consistently construct unique apparel, which come with the best price. International quality standards. Apparel designs which is unique and which is having a renowned look and comparable to famous brands in the Indian and GCC market. Cotton is the most preferred material due to its non-allergic,

comfortable, and easy caring virtues




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4.0 Sales & Marketing

Pricing Strategy – Competitors Comparisons

COMPETITOR BRAND

TARGET GROUP PRICE RANGE POSITIONING

SHOPPERS STOP 0-16 years Rs 299- Rs 5000 Middle and premium segment

LILLIPUT 0-11 Years Rs 349- Rs 1799 Middle and premium segment

RUFF KIDS 4-16 Years Rs 600 onwards Premium segment

ZAPP (RAYMONDS) 0-11 Years Rs 299- Rs 1399 Middle and premium segment

CATMOSS 0-16 Years Rs 345 onwards Middle and premium segment

GINI & JONY 0-16 Years Rs 600- Rs 2500+ Premium segment

UNITED COLOURS OF BENETTON

1-12 Years Rs 999- Rs 3999 Premium segment

WEEKENDER 2-12 Years Rs 349- Rs 1799 Middle and Premium segment

The Business of Fashion Pricing strategy and Ranges is as follows.

BRAND PRODUCT RANGE

PRICE RANGE PRODUCT CLASS

SIZES AVAILABLE

BOF"S Tops 249-999 Regular, occasional, party wear

XS/S/M/L/XL/XXL

Girls

Skirts 249-999 Regular, occasional, party wear

XS/S/M/L/XL/XXL




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Frocks 249-999 Regular, occasional, party wear

XS/S/M/L/XL/XXL

Capris 299-799 Regular XS/S/M/L/XL/XXL

Cotton Trousers

349-799 Regular S/M/L/XL/XXL

Denim Jeans 699-999 Denims S/M/L/XL/XXL

BOF"S T-Shirts 249-699 Regular, Occasional

XS/S/M/L/XL/XXL

Boys

Shirts 249-999 Regular, occasional, party wear

XS/S/M/L/XL/XXL

Cotton trousers

499-799 Regular S/M/L/XL/XXL

Denim jeans 699-999 Denims S/M/L/XL/XXL

Capris 299-799 Regular XS/S/M/L/XL/XXL

BOF' is to market the products to little once. And the young mothers, who are professionals therefore the discretionary income available to those segments is varied. In order to appeal to the younger mothers, less established market they will have a starting point. Their pricing strategy also lends itself

to a spontaneous purchase

Positioning Statement

We position our self as a mid-market and mass market kids wear brand for the customers who seek value for mazuma in every purchase they make that is a high benefit to cost ratio. We provide a ladder to those people who are agog to switch from lower segment to medium segment products of

superior quality but at affordable price range.

Marketing Strategy

UNIQUE SELLING PROPOSITION

Our garments maintain shape and colour after multiple washes.




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AZO free finish for environment amicableness.

We endeavor to make our quality accommodations and products available to everyone who desires

to experience the privilege.

Our store and amassment concept gels well with the modernistic “cheerful, trendy, independent,

ingenious, colorful children characters”.

We diligently cull the designs that determine the world trends in line with the desiderata and

authoritatively mandates of ages 3-14.

Priority of customer preference to buy a particular brand is based on “affordability, design, brand

popularity and fitting.”

mother-centric : Selling propositions - Buying decision of infant wear (0-3years) & kids wear (3-8

years) is done exclusively by mothers only.

environment friendliness, organic fashion sustainable fashion, fair-trade fashion




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5.0 Operations

Location(s)

Tiruppur is also known as the "knitwear capital" of India, accounting for 90% of India's cotton knitwear export. It has spurred up the textile industry in India for the past three decades. It contributes to a huge amount of foreign exchange in India. In the Fiscal year 2013, exports were 17, 500 Lakh Pcs. The city provides employment to around 400, 000 workers, with the average salary per worker being around 9,000 per month. Tiruppur has a good educational infrastructure. The city itself has only a few

engineering colleges, but the proximal areas and nearby cities of Coimbatore

Legal Issues

The Business of Fashion anticipates the following legal issues:

business licenses

import/export

registering employees

Contract agreements (partnerships, independent contractors etc.)

Government of Tamilnadu commercial taxes department Tamilnadu value added tax act, 2006

Form D certificate of registration

Registration Name: The Business of Fashion

Tax Payers Identification Number (TIN) - 33452426590 Dated: 10/05/2012

Form B certificate of registration

Registration Name: The Business of Fashion

CST Number: 1100794 Dated: 10/05/2012

Insurance Issues

The Business of Fashion requires insurance for owners, partners and key employees, insurance for

business property and earnings.

Human Resources

The Business of Fashion will have 1 - 10 full time staff.

The Business of Fashion will have 0 part time staff.




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Process/Production

Operation of Garments Manufacturing are given below in details: SL

No. Operation Job Method

1 Design/Sketch

It is given by buyers to manufacturers containing sketches including measurements of particular styles Manual/Computerized

2 Basic Block

Basic block is an individual component of garments without any style of design (without Allowance, Style, Design) Manual/Computerized

3 Working

Pattern

When a pattern is made for a particular style with net dimension regarding the basic block along with allowance then it is called working pattern. Manual/Computerized

4 Sample

Garments

To make a sample, this will be approved by buyer. After making a sample, it is sent to buyer for approval to rectify the faults Manual

5 Approved

Sample

After rectify the faults, sample is again sent to buyers. If it is ok then , then it is called approved sample Manual

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Costing

Fabric Costing Manual

Making Charged

Trimmings

Profit

7 Production

Pattern Making allowance with net dimension

for bulk production Manual/Computerized

8 Grading If the buyer requires different sizes,

so should be grade as S, M, L, XL, XXL Manual/Computerized

9 Marker

Making

Marker is a thin paper which contains all the components for different sizes for a particular style of garments Manual/Computerized

10 Fabric

Spreading To spread the fabrics on table

properly for cutting Manual/Computerized

11 Cutting To cut fabric according to marker

dimension Manual/Computerized

12 Sorting &

Bundling

Sort out the fabric according to size and for each size make in individual bundles Manual




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13 Sewing To assemble a full garments Manual

14 Ironing &

Finishing

After sewing we will get a complete garment which is treated with steam ironing & also several finishing processes are done for example extra loose thread cutting Manual

15 Inspection Should be approved as initial sample Manual

16 Packing Treated by Polyethylene bag Manual

17 Cartooning After packing, it should be placed In

cartooning for export Manual

18 Dispatching Ready for export Manual

Risk Assessment

1. Bench-mark Marketing Function :

The complexities of business world are escalating marketing risks. For survival and growth organizations need resilient marketing and sales functions. With new competition and changing regulations, organizations need to reinvent business models. Hence, as a first step risk managers

need to bench-mark the organization’s marketing function.

2. Evaluate Cost-cutting Measures;

a) Advertising: explore cheaper advertising models – social media, internet etc. and reduce budgets

on paper and television media.

b) Discounts: Another option adopted to increase sales is to discount all products by a certain

percentage.

3. Assess Strategy and Systems

4.Core products: Does the strategy focus on core products? Hence, the organization will be unable to adapt strategy to the changing marketing trends and customer behavior.

5. New products: focus on products that cater to the new customer requirements and changes in behavior. Closing thoughts with economies slowing down, the marketing functions are facing many

challenges.

6.Customers are better informed through social media and internet, competitors copy products faster, and price of the product is a driving factor. Risk managers can contribute by conducting risk assessments of the marketing function and helping the teams in identifying the upside and downside risks to their strategies.

7. This is a good place to add to profitability.

8.Serving a heterogeneous market (CUSTOMERS) - India is characterized by varying consumer tastes, preferences and buying habits. India’s states have unique languages, cuisine, geography, etc. and




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many retailers believe that consumers’ tastes and preferences vary by state, city, and catchment area

and even by street! This makes it seem that India is a collection of 28 countries instead of 28 states!

9.Developing a long-term investment horizon (INVESTMENT) - Domestic and global retailers view India as a long-term investment proposition and suggest that patience, deep pockets and customization

of products and services are required for success.

10. Focusing on innovation, customization and new product development (PRODUCTS) - Global retailers are, through the launch of India - inspired products, positioning themselves as international retailers who understand the nuances of serving Indian customers in terms of offering them the right

product, at the right price and through the right distribution channel.

11. Operating within the current regulatory framework (BUSINESS ENVIRONMENT) - Global retailers should realize that international strategies may not always be the best for the Indian market; some amount of customization may be required to succeed in the Indian marketplace. Retailers need to comply with national- and state-level legislation, tax issues and regulatory frameworks. Selected

trends in India’s retail sector include—

12. Improving operational effectiveness— Retail Consumer; companies are optimizing operations, streamlining the movement of goods, increasing efficiencies and assessing stores. Retailers are assessing their supply chains, renegotiating rental agreements (since rental rates have fallen),

establishing shop-in-shop formats and are closing underperforming stores

13. Focusing on product development— Indian Retail Consumer; companies are launching private labels in a range of categories, including apparel, beauty care, consumer durables, FMCG, food, footwear, home goods, household cleaners, etc. While these products may have a “no frills” approach in packaging and marketing, they satisfy consumers’ value preferences. India’s major retailers expect to increase the range and visibility of private label offerings, derive an increased share of revenue from the sales of these products, embark upon promotional offers and sales for such

offerings and offer some of their private label products through other retailers’ outlets.

14. Increasingly sophisticated consumers— The Internet/media, global lifestyle influencers, increasing incomes, overseas travel and a preoccupation with celebrity culture are making Indians more aware than before. Sophisticated consumers are demanding access to new products in health

foods and beverages, dietary supplements, health and wellness, skincare, etc.

15. Embarking upon a green agenda—although nascent in India, some retailers are revising business strategies and embarking upon sustainable business practices to appeal to environmentally-aware consumers. Competitive forces are playing a role in encouraging the use of biodegradable packaging,

adopting sustainable business practices, reducing carbon footprint, etc.

If after a full year of business, sales are less than INR 4,00,000 BOF's would need to close its doors and shut down its operation. Existing product inventory would remain on the Etsy store until the four month listing period had expired or until the following November when it will be sold at a ‘warehouse’

sale 50% off to capitalize on existing stock




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6.0 Financials

Start-Up Costs & Break Even

No

January

The Business of Fashion’s startup cost table can be found in the attached financial spreadsheet that has

been included as a separate document in the Appendix.

Breakeven analysis

100000 / (40 - 100) = -1667

Sales Forecast

Key Assumptions for BOF's May – June, August-Sep, December-Jan will be the highest sales months due to the NRI festivals, local festivals Average sale will be INR 50 No online sales for first three months Product sales broken out as 90% from market and 10% through local retailers Each customer

will purchase one products

Enter in an amount. - INR 45

Enter a number from 0 to 100. - INR 30

Year One Sales Forecast Including Assumptions

Month 1 - INR 900000.00 - 80 Month 2 - INR 900000.00 - 80 Month 3 - INR 450000.00 - 70 Month 4 - INR 900000.00 - 80 Month 5 - INR 900000.00 - 80 Month 6 - INR 450000.00 - 70 Month 7 - INR 900000.00 - 80 Month 8 - INR 900000.00 - 80




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Month 9 - INR 450000.00 - 80 Month 10 - INR 900000.00 - 70 Month 11 - INR 1350000.00 - 70 Month 12 - INR 1350000.00 – 70

Enter in an amount. - INR 50

Enter a number from 0 to 100. - INR 40

Cash flow

The Business of Fashion’s detailed cash flow for year 1 and year 2 can be found in the attached financial

spreadsheet that has been included as a separate document in the Appendix.

Income Statement

The Business of Fashion’s income statement can be found in the attached financial spreadsheet that

has been included as a separate document in the Appendix.

inv2 bof business proposal & plan- details

Documents