Executive summary of the business plan

With the change in the trend in fashion market Readymade Garment have become very
popular. Most of the people used to wear Readymade Garment in case of time saving
activity. Especially ladies, kids, teenage girls and college going girls have taken very
much interest in new designs and fashionable garments.

Today, the women especially working or homemaker want to look gorgeous without
being too traditional.

I have decided to open a readymade garment shop to introduce new category of clothes in
the market which may be something different from the clothes already available in the
market.

I have named my garment shop “SUFI DESIGN HOUZ” and gave the punch line to the
shop “completing the family”.

This tagline briefly means the shop completes every type of customer either girls, kids,
women, boys, kids, man and college going girls.

The owner of the shop is me and I have engaged three outlets for the shop which will
contribute to the sales and profits in the business and the capital is also invested by me
and my father in the business.

The shop basically targets teenage girls and college going girls as my shop has the
availability of wide variety of kurtis, tops and other accessories.

The other clothes which are available in my store are for the daily wear, party wear and
for the ceremonies.

My shop basically has jeans & trousers, shirts & tops, skirts, track suits, night wear and
bath wear. So, my shop has the products which are related to active wear, workout gear,
leather garments, headgear and baseball jackets. It covers almost all types of customers.
My shop also provides the facility for the repair such as stitching of the clothes and
altering of the clothes.
Introduction
Introduction of the retail industry

The technology advances each and every sector has been rapidly developed like a
Government Sector, Engineering Sector and many more then how can the
“READYMADE GARMENT SHOP” become backward. Each and every person wants to
look like a hero and heroine. As the fashion takes place, they want to wear more
fashionable clothes.
In movies actor and actresses are wearing different types of dresses. Every person wants
to look like them. With the increase in fashion every person want to wear that type of
cloths. Some people purchase cloth material and visit at the tailor shop for stitching the
dresses they like. But it takes too much time. Fashion is growing up day to day.
Readymade Garment Shops are opened. People are satisfied from Readymade Garment
Shop and people also save their valuable time. Readymade Garment Shop provides better
design dresses to customers.

With the change in the trend in fashion market Readymade Garment have become very
popular. Most of the people used to wear Readymade Garment Shop have become very
popular. Most of the people used to wear Readymade Garment in case of time saving
activity. Especially ladies have taken very much interest in new designs and fashionable
garments.

Readymade Garment Company like as Nain See Private Ltd, Saujnya Dresses, Ashika
Sarees and Dresses, Garden Dresses makes garment very attractive and it gives it special
effect to that garment or dresses to be very attractive. There work of various types of
stitches like “Kashmiri Buta, Kunadan Work or Jardari Work is become very famous in
new trend. There are various other companies are also work to give better quality
product. In recent years many people are interested in wearing Readymade cloths and
specially ladies have most interest in that type of cloths so when the researcher is a lady it
takes too much interest for the topic. So that researcher selected the subject Readymade
Garment Shop as the study of the project.

Retail is India's largest industry. It accounts for over 10 per cent of the India's GDP and
around eight per cent of the employment. Retail sector is one of India's fastest growing
sectors with a 5 per cent compounded annual growth rate. India's huge middle class base
and its untapped retail industry are key attractions for global retail giants planning to
enter newer markets. Driven by changing lifestyles, strong income growth and favorable
demographic patterns, Indian retail is expected to grow 25 per cent annually. It is
expected that retail in India could be worth US$ 175-200 billion by 2020.
 Tussle with private labels
Manufacturers have found it is advantageous to have their own outlets for another reason.
The increasing share of retailers' private labels is squeezing the space available for their
own brands. The likelihood of private labels emerging as a major threat to brands has
been debated endlessly.

Private labels tend to do well during recessions. Retailers enjoy better margins on their
own labels, and are also able to price them lower.

Private labels, however, plateau in the boom periods, when brands stand to gain. Players
in the branded segment also contend that customers are eventually won over to brands by
familiarity and quality assurance.

Going one step further, private labels can help build markets for brands. For instance, the
women's apparel segment is yet to take off in a big way, but private labels have managed
to do well in this segment.

The players such as Madura Garments, which have a presence in the segment through
Allen Solly, believe that once women try out private labels and get more accustomed to
Western wear, they are likely to upgrade to a more expensive brand.

Prevailing trends in Indian readymade garment industry



Textile industry in India is widely comprehensive, integrating whole range of raw
material to finished product that includes fiber manufacturing, spinning, knitting and
weaving, and garment manufacture.

The industry provides almost every single aspect which is as follows:-

1. Raw material


It can be cotton, linen, and wool, silk and manmade fibers like viscose, polyester,

polypropylene and acrylic. Indian companies have marked presence in even non-
traditional segments.

2. Fabric production


It includes suiting-shirting, dress material, fabrics for shorts and trousers, denim, hosiery,
fleece flats and woolen knits, technical fabrics and so on.

3. Apparel production


 It specifies formalwear, casual wear, active sportswear, traditional wear, under garments,
outerwear, kids wear, and you name it produces.

4. Made-ups production


A wide range of bedding, towels, bath, table mats/linens, kitchen accessories and more.
Additionally, to aid above all there are well established infrastructure, multi-benefited
governmental, political and regulatory system that would lure foreign investors.

In recent years, the readymade garment segment has seen vertical growth. Accounting
nearly Rs. 20,000 crores, this industry is growing at the rate of 20 percent, with massive
visibility and consideration margins. The largest segment for the readymade garment
segment includes the age-group of 16-35 that is very brand conscious and gives priority
to high quality. Branded readymade garments account over 21 percent of the readymade
garment industry.
Description of business and target markets

Shop history

The shop “SUFI DESIGN HOUZ” is a type of discount store or a readymade garment
shop for children, women, teenage girls, kids, infants, gents and boys. The clothing line
that is unique, special, comfortable, and fun. My store targets the people which belong to
middle class and upper middle class. However, my store has no collection of the raw
materials but works for readymade garments and made-to-order preparation of clothes.
My shop has brought the store look to the masses, and made it simple and affordable for
anyone to get the readymade garment store look. All of their tops, bottoms, basics and
accessories from each individual line coordinate with one another, making it easy for
anyone to put together a well coordinated and princess worthy outfit.

Store name: - SUFI DESIGN HOUZ

Administrative address: - Shop no-12, D-12 block, SK ARCADE, Ottapalam.

Punch line: - Completing the family

Location of the shop: - Ottapalam, Shoranur, Cherpulassery

Shop area: - 10/10 square feet

Number of sales persons per shop =3

Qualification: - Minimum qualification is 10+2/Graduate

Experience: - 2 years

Essential requirements
1. Machines & equipments=6(for stitching and repairing of clothes).

2. Threads & stitching accessories.

3. Office desks & chairs

4. Desk lamps

5. Clothing stands

6. Shelves and cabinets for storage

7. Air Conditioning

8. Clothes hangers

9. Billing machine and credit card machine

10. Polybags= 40.

11. Stationary items.

12. Stools

Equipment or helpful products that you can acquire to once your business is off and
running:-

1. Dressing rooms and mirrors.

2. Warehouse and godown.

3. Additional display furnishings.

4. Draperies, floor coverings.

5. Seating (small couches, chairs).

6. The restroom.

Target markets

My shop has chosen girls, kids, women and gents as these most attractive segments to
target. These segments are the most desirable because they have desirable levels of
disposable income and they spend it. The women are used to having fashionable clothes
and accessories and it is totally consistent with their purchasing patterns that this
preference would remain unchanged once they get pregnant. Many expecting women like
to reward or pamper themselves with nice gifts when they're pregnant.

Family is interested in buying nice gifts for their expecting friends. This segment
recognizes their friend's appreciation for nice things and are looking for something that
they know they will enjoy. The output is meant to be something nice and luxurious.
Much of the current maternity wear and accessories are utility based and while they serve
their purpose, they are not the most engaging gift. Family are looking for something that
will stand out, that the new mothers will truly enjoy.

Market need

1. To give something new innovative.

2. To have the best quality in minimum price.

3. New clothes.

4. New pattern of clothes.

5. Provide in bulk.

6. New attractive designing and good fitting of the clothes.

7. Meeting each type of requirements of customers regarding clothes.

8. To meet immediate requirements of the people.

Target markets
1. Surrounding colleges and schools

2. Crowded during season sales

3. Garment following the current trend

4. Sector-3 market.

5. Sector-5 market.

6. Sector-9 market.

7. Sector-8 market.

8. Market in MURALI Enclave, Shoranur.

9. Market in S-D block, Pattambi.

Mission
1. To satisfy different types of consumers i.e. teenage girls, women and kids.

2. Have an increase in new customer base yearly.

3. To create demand for different pattern of clothes.

4. To introduce new creative things in the market.

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

Key to success
1. New trends in the fashion industry.

2. To survive this global restructuring, the Flemish fashion industry is increasingly

focusing on its creativity to set itself apart from the competition.

3. Creativity is also becoming increasingly evident at retail level. The fashion retail trade

once served merely as a support channel, but has now developed into a creative element

in its own right, helping to enhance the symbolic added value of fashion items. This

development underpins multi-brand stores, single-brand stores and flagship stores.

4. Anyone offering craftsmanship skills in the fashion industry will easily be able to find

a well-paid job.

5. It is clear from discussions with stakeholders in the fashion industry that the tension

between creativity and economic reality is a stumbling block for the future of the

industry.

Objectives of the business plan

1. To create demand in different markets.

2. Strong fashion and color sense with the ability to create and adapt designs to
changing market conditions.
3. Good knowledge of fabrics, and the ability to choose the best match between garment
design and fabric.

4. To get a position of a fashion designer within a fashion industry where I can use my
best design, creative skills and experience to develop a unique product.
5. To obtain a position in the fashion design industry.

6. To get a position as a fashion designer and gain reputable work assignments to

enhance reputation and skills in this field.
7. To work in a dynamic and challenging environment, where seamless integration of
creativity can be experienced.
8. To introduce new creativity in the market.

9. Equally adept at performing as a project team member or working independently,

depending on the nature of the project at hand.

10. Proven ability to translate client garment design requirements into design illustrations
using leading design software such as Adobe Illustrator and Photoshop.

11. Significant ability to interpret people requirements and create designs that pinpoint
their target market.
Management team
Shop structure and description of management team

The employees will be motivated to work within their creative, physical and intellectual
boundaries. All duties will be divided and delegated according to strengths and
weaknesses. At my store, I will expect a high degree of customer service skills and
personality as this is essential to our success.

I will assess the productivity and perform informal employee’s evaluations of all
employees every six months. These bi-annual evaluations are conducive to the continued
growth of our small business.

Western Wear is a small business and therefore requires a simple organizational

structure. I will act a general manager. All decisions are made in-line with the company
objectives. Employee tasks are delegated based upon their level of expertise, creativity,
Strengths and weaknesses.

All sales persons and I will be responsible for all administrative functions, purchasing,
inventory control, and promotions

We will have a staff of 3 members in each shop. Both co-workers and I will assume
leadership roles within the shop and I will be responsible for daily operations, overseeing
marketing efforts, giving service and managing inventory and all other administrative
duties. A small sales staff will assist co-owners with securing sales, assisting customers
and general maintenance of stock on the floor.

The necessities for the start-up for the business:-

1. Number of salespersons: -9

2. Requirement of part-time workers: -3.

3. Number of machines: - 6

4. Chairs & tables

5. Lamps and table fans

6. Stationary products.

7. Storage cabinets.

8. Clothes hangers.

9. Decorated statues.

10. Billing machines and credit card machines.

11. Customer service.

12. Ordering of stock.

13. Cleaning staff.

15. Advertising, marketing and promotion.

Staff members

Booming a readymade garment store will employ a sales staff of 3 part-time employees.
These positions are yet to be filled. However, we feel the labor pool is such that finding
qualified employees will not be an issue. Our sales associates will be paid an hourly
wage, plus commission. Bonuses will be provided with each year of sales and service
following an annual review to encourage employee retention.

I don’t have any team of seniors but I and all 3 workers work together as a team. I train
them to sell the clothes according to the requirements of customers and pay attention to
their requirements and they try to follow my instructions to sell the clothes efficiently.

The workers who alter the clothes and gives final touch and measurement are 1 in each store.

The workers who involve in selling process are 2 in each store.

Some of the skills necessary to run this type of business other than the necessary
business skills:-

1. Retail sales and marketing.

2. The merchandising.

3. Fashion knowledge.
 4. Business ownership.

5. Clothing import.

6. Stock display.

Product Description

Casual Wear

The "casual wear" is only one of the phrases used to describe the trend away from pin
stripes and high heels. Other terms include business casual (usually means the Dockers-
khakis-polo shirt look), business appropriate (a step-up from casual), business ready
(meaning that a traditional suit must be ready to wear at all times), corporate casual,
clearly casual, resort casual"(definitely not allowed in the office), refined casual wear
(acceptable provided that you understand what it is) and perhaps most appropriately
casual confusion.

I have a variety of products to suit the needs of every individual, whether they are
dressing for success or for an afternoon of leisure.

Some of the company's products includes:-

o Men's Pullover, Long Sleeve, Small to 5XL

o Men's/Women's Pullover, Short Sleeve, Small to 5XL
  T-Shirts
o Men's, Long Sleeve, Small to 5XL
o Men's, Short Sleeve, Small to 5XL
o Women's, Long Sleeve, Small to 5XL
o Women's, Short Sleeve, Small to 5XL
  Denim Jackets 
o Men's, Small to 5XL
o Women's, Small to 5XL
 Denim Pants
· Men's/Women's

 Foot wear & Acessories 
Men's/Women's

Active wear/Sportswear

At leisure lifestyle apparel, from yoga pants to terry track suits, is on the rise, and I offer
a range of high-performance clothing for active sport, trekking, climbing, and travel that
is suitable for the street, and practical for the gym. The collection is characterized by
modern, comfortable, high-tech fabrics and functional, ergonomic designs.
 The active wear product includes the following:-


 Sweatshirts 
o Men's/Women's, Long Sleeve, Small to 5XL
o Men's/Women's, Short Sleeve, Small to 5XL
 Sweat suits (Velour)

o Men's/Women's, Small to 5XL

Sports styling will continue to dictate many casual designs throughout 2004, although
natural looks where the fabric makes the statement will also be important. Sportswear and
sports styling will continue to grip consumers who desire comfort in everyday wear, yet,
as couch potatoes, hardly ever indulge in the activities for which the clothes were
originally designed.

Workout Gear

The colorful fashion trainers, rather than traditional running trainers, will accommodate
the massive shift in shoe buying habits. Keyholes, zip inserts, and satin contrast strips and
bindings will continue to feature in mass casual wear emphasizing the sporty feel.

I offer a line of workout gear that brings together a combination of high-end, high-tech,
and unique fabrics with today’s hot fashion trends.

The store workout gear includes:-

 Workout Tops 
o Women's, Small to 3XL
  Workout Bottoms
o Women's, Small to 3XL
  Socks (100% Cotton)
o Women's, Fits Up to Shoe Size 15
  Jacket (Cotton/Polyester Blend)
o Women's, Small to 3XL

Smart consumers are driving the performance fabrics of today. They want products with
more comfort, more durability, and more fashion, which in turn will make their lives
easier. In answer to the consumers' needs companies such as follow-me, appeal are
developing techniques that manage moisture better, so it dries faster improving dye-
techniques to enhance color-fastness and designing garments that keep people warm
without weighing them down.
 Leather Garments

The leather motorcycle jacket is much more than a coat - it's a mentality. From the early
twentieth century, airplanes, automobiles, and motorcycles redefined freedom, idealized
speed, and captured the hearts of men and women alike. The leather jackets developed to
protect pilots, racers, and motorists from the elements came to symbolize a romantic
sense of rugged adventure. In particular, motorcycle jackets maintained this ideal for
decades to come. I carry on this American-made tradition of the classic, leather,
motorcycle jacket.

 Motorcycle Jackets (100% Black Leather)

o Men's/Women's, Small to 4XL
  Leather Pants (100% Black Leather)
o Men's/Women's, Small to 4XL

Leather jackets are the most versatile and classic article of clothing the consumer can
own. They may be extremely stylish and popular, following fashion trends from year to
year, but the truth is that they are never out of style.

Consumers can find leather jackets in various shapes and sizes or different lengths (such
as trench coat, knee, three quarter, and hip), depending upon the consumer's body type,
height, style, and taste. Even square-shaped, leather bomber jackets have made their
return and continue to be popular. All leather jackets are stylish.

Headgear

During the summer, fedoras and mesh caps made of natural grasses found favor among
both men and women. Another common sight was unlikely combinations of feminine
clothes and baseball caps, while, as an extension of the layered look, turbans were also a
hit. This fall has witnessed the renewed popularity of the rounded, visored berets known
as "caskets" that have been a conspicuous presence since last year. Hats and caps are
coming out in a variety of materials, colors, and shapes, including woolen caps with
designs knitted in and hats made of furry materials like angora.

As to why hats have become entrenched as a fashion accessory over the past few years,
we believe that headwear offers the easiest means of self-expression in the context of a
general trend for casual fashion. Even a person dressed in a simple outfit like pants and a
T-shirt can instantly express his or her personal style just by putting on a hat.
 Hats are becoming as much an integral part of young people's wardrobes as other fashion
items, and I have a variety of hats to suit everyone's taste.

These include the following:-

 Ski Hat (Wool)


  Men's/Women's, One-Size-Fits-All
 Beanie (Polyester/Cotton)
Men's/Women's, One-Size-Fits-All
 Fitted Baseball Cap (Cotton)

Men's/Women's, One-Size-Fits-All
  Sun Visor
Men's/Women's, One-Size-Fits-All

Hats have always combined fashion with practicality, offering protection from both the
summer sun and the winter cold. Right now, hats are experiencing a boom in popularity
that has made them an essential item regardless of the season. More and more people are
wearing hats of distinctive designs that, unlike the past hat booms are not constrained by
fashion trends.
Environmental scanning of business
Industry analysis

Market segmentation

My store intends to target men, women, and children in the Tri-State Area who require
competitively priced, branded clothing. Within all groups, there are no color barriers and
customers have diverse backgrounds. The consumers range between one year and 60
years of age.

According to the NPD, women spend about 80% of all money that goes for sportswear.
They control 96% of the dollars spent on their own clothes, 93% of those spent on
children's, and 60% of those spent for men's sports apparel.

During 1999, the women's consumer segment, a constant consumer group, dominated the
U.S. apparel sales market. Women's apparel sales growth was 3.7% and represented 52%
of all apparel sales, whereas men's apparel growth was 4.1% and accounted for 31% of
total apparel sales. Women tend to buy at a constant rate, whereas men's apparel sales
have been growing.

Individuals under the age of 20 wear about 43% of sports apparel, but individuals aged 45
and older accounted for 25% of the market in 1999. Girl's and boy's apparel rose 0.5%
and 3.8%, respectively.

The category of clothes is explained is as follows:-

Adult Apparel

The production of adult apparel, particularly women's clothing, occupies the largest
sector of the apparel industry. In 1990, over 1,000,000 workers were employed to
produce an almost infinite variety of dresses, suits, coats, and sportswear.

Traditionally, the women's apparel business has operated on a five-season basis i.e. fall
line merchandise is usually offered to retail store buyers in April; holiday collections in
June; early spring, resort, and cruise wear in October; spring and summer clothes in
January, may and early fall fashions in March and April.

Men's clothing design and sales are in a state of upheaval. In the past, manufacturers
presented two new lines of classic clothing each year, changing fabrics for seasons.
Today, many firms produce highly styled clothes for department store boutiques and
small specialty shops which cater to the fashion-conscious man. Their problems with
seasons, lines and style acceptance parallel those of women's wear producers.

Other than children's wear, the market for men's clothing has grown faster than any other
sales category in the industry. The introduction of state of the art permanent-press fabrics
probably initiated this sales increase, but the acceptance of casual fashion in men's wear,
spurred by the growing youth market, has been the main factor.

Although the larger firms are continuing to gain ground compared to smaller firms, and
brand-name merchandise already has a large share of the market, the preference for major
brands is not longer unanimous. Retailers are now much more open to adding new
product lines. The current interest in personalized trends, which more closely reflect the
consumer's identity, provides an opening for small and lesser-known collections.

The "cheap chic" trend is also spurring consumers to expect more at a lower cost, seeing
little difference in style from one brand to another.

Sportswear

Individuals under the age of 20 wear about 43% of sports apparel, but individuals aged 45
and older accounted for 25% of the market in 1999. The widening age gap between
youthful and not-so-youthful wearers represents a multitude of challenges in designing,
marketing, and branding for sportswear manufacturers.

The growth of the sportswear industry is particularly marked among female consumers,
who now see themselves as more athletic and have begin to wear these collections as
street clothes. Since women are more "outfit-oriented" than men when it comes to
exercise clothing, they represent a target clientele for this industry. The junior market
segment is also of primary important in this industry, as sportswear is often tied in to
fashion.

A product's technical characteristics are also very important in this industry, competing
with the "sport-fashion" factor in the final buying decision. Technical consumers are
much more consistent in their buying habits and provide stability during economic slow
downs.

Junior Clothing

The strong growth in demand in the junior clothing industry has, so far, been able to
minimize the unfortunate effects of the economic slowdown, but heavy competition in
the market makes retailers very conscious of fluctuations in demand. Competition in the
junior market segment has shot up in recent years, with a twofold increase in the number
of junior clothing chains.

Popularity and brand visibility are very important factors in buying decisions made by
this market segment; this reduces the maneuverability of small manufacturers who want
to position themselves in the market. It is crucial to follow trends because this segment
follows fashion cycles closely. It is possible to position one's self with very up-to-date
collections at lower prices than well-known collections; however, this means following
the market closely and providing the resources necessary for product visibility.

Children's Wear

Manufacturers of children's clothing produce large lines from which the store buyer
makes purchases three times a year to cover the main selling seasons of spring and
summer, back-to-school and holidays. Although children's apparel is a basic family
requirement, the fashion revolution is affecting even these styles. Mothers (controlling
93% of all apparel dollars spent on children's wear) want their children to have the latest
"look." Children's wear manufacturers are becoming highly skilled at producing high
fashion apparel. Kid's fashions have been one of the fastest growing categories of
apparel. To keep pace with this trend, manufacturers have adopted the production and
sales techniques used in women's apparel. This has led to enormous numbers of children's
wear departments and specialty stores throughout the nation.

The children's wear industry has grown considerably in recent years, but still remains a
small market segment and can be difficult for small manufacturers to enter. Since
children's wear trends increasingly mirror those of adult apparel, children's collections
must not only please children, but also be very similar to current trends in the adult
market. This calls for constant monitoring of the market and a high degree of flexibility
and quick adaptation. Major firms that market adult collections at the same time as
children's copies have a head start in this regard. Price, nonetheless, remains a decisive
factor in making purchases, given the speed at which children outgrow their clothes.
Manufacturers who are competitive in this regard and have the flexibility to adapt their
products to fashion trends can find worthwhile niches.

Target Market Segment Strategy

My shop has chosen girls, kids and women as the three most attractive segments to target.
These segments are the most desirable because they have desirable levels of disposable
income and they spend it. The women are used to having fashionable clothes and
accessories and it is totally consistent with their purchasing patterns that this preference
would remain unchanged once they get pregnant. Many expecting women like to reward
or pamper themselves with nice gifts when they're pregnant.

Family is interested in buying nice gifts for their expecting friends. This segment
recognizes their friend's appreciation for nice things and are looking for something that
they know they will enjoy. The output is meant to be something nice and luxurious.
Much of the current maternity wear and accessories are utility based and while they serve
their purpose, they are not the most engaging gift. Family are looking for something that
will stand out, that the new mothers will truly enjoy.

List of main competitors

1. Mocca: - Shop no-7, D-10 block, sector-7, cherpulassery.

2. Mens Square: - Shop no-16, B-4 block, sector-7, cherpulassery.

3. Dhoom: -Shop no-12, A-4 block, sector-7, cherpulassery.

4. Rewa: - Shop no-18, D-12 block, sector-7, shoranur.

5. Pantaloons: - Shop no-24, B-6 block, sector-7, pattambi.

6. Factory outlet: -Shop no-14, D-12 block, sector-7, ottapalam.

Basic need of the existing customers

1. To give something new innovation.

2. To have the best quality in minimum price.

3. New designs.

4. New pattern of clothes.

5. Provide in bulk.

6. New attractive designing and good fitting of the clothes.

7. New fashion clothes/latest trends of clothes.

8. Ethnic wear.

Competitor analysis

S.W.O.T. analysis of the competitors

Strengths

1. Changing consumer habits and lifestyles.

2. Plastic card revolution.

3. Greater availability of quality retail space.

4. Huge profits.

5. Competent to other competitors.

6. Home delivery.
7. Having the large number of outlets covering the whole country.

8. Having large inventory.

Weakness

1. Policy related issues

a) Lack of industry status for retail.

b) Numerous license, permits and registration requirement.
c) Farmer and retailer unfriendly APMC act.

2. Limited consumer insight

a) Lack of detailed region specific customer data.

b) Less data on spending pattern.
3. Inadequate human resources

a) Lack of trained personnel at all level.

b) Stringent employment and industry laws.
c) Fragment approach to human resources.

4. Taxation hurdle

a) Inconsistent taxes like octori & freight and entry tax structure.
b) Vat (value added tax) and multiple taxation issues.
c) Large grey market presence.

5. Underdeveloped supply chain

a) Underdeveloped logistics infrastructure.

b) Absence of national cold chain networks.
c) Lack of national distribution networks and hubs.
6. Lack of adequate utilities

a) Lack of basic infrastructure like power, creates difficulty in sustaining retail

operations across the large geographical spread of the country.
b) Transport facility
c) Communication problem

Opportunities

1. Potential for investment.

2. Locational advantage.

3. Sectors with high growth potential.

4. Fastest growing formats.

5. Rural retail.

Threats

1. Political issues.
2. Social issues.

3. The inflation.

4. The nostalgia.

5. Lack of differentiation among the malls that are coming.

6. Poor inventory turns and stock availability measures.

Manufacturing and operations
 My store does not provide the facility of the making and production of the clothes but I
have few suppliers who supply clothes in bulk ever quarter of the month. Since it is a
retail garment store I don’t prepare clothes and also small amount of capital is invested in
the business.
But my future plan is to introduce hand-made clothes in the market where my store is
located and also targets other markets and make my store a big showroom.
Currently, it is a trial business and analyse if the business will make profit in coming few
years or not.

Location of production facilities

The production activity should be located where a firm can be most productive and yield
the highest revenues per unit of investment.

A highly productive business outlet:-

 Is one that is near to the market, so that the demand for units of output is high
relative to costs of making that input?

 Is one that is close to a skilled labor force? The easier it is for the firm to attract
labor with appropriate skills the more likely it is to produce high value outputs
and low costs per unit of output.

 One that locates close to high value raw materials. The further materials have to
travel the lower the productivity of the plant will be.

The effective location for production will include some or all of the following factors:-

1. The closeness to point of sale. The higher the sales revenue, the higher the productivity
will be.

2. Near to skilled labor source.

3. Have room for expansion.

4. Have good communication links.

5. Closeness to raw materials.

6. Away from centers of population - for noisy, environmentally unfriendly industry.

Location of my store and production facility

The stores currently operates out of a warehouse and office building located in Ottapalam
, cherpulassery and shoranur.. The 20 square foot facility provides enough room for
storage of the stock which is received from the suppliers and storing in bulk as well as
administrative office space. A two year lease has been signed at Rs.2, 000 per square foot
with options to extend the lease. The facility can be expanded an additional 30 square feet
at any time to accommodate growth of the store.

The small warehouse is bought on rent. The amount of the rent is nearly Rs. 4,000 per
month which is paid every month even if the store earns profit or not.

Once when the business will earn supernormal profits the there is a plan to hire own ware
house which is much bigger in size as compared the current rented warehouse so that
more and more stock can be stored and kept safe in the warehouse.

Factors to be Considered in Choosing Retail Locations:-

1. Size of the city's trading area.

2. Population and population trends in the trading area.

3. Total purchasing power and the distribution of the purchasing power.

4. Total retail trade potential for different lines of trade.

5. Number, size, and quality of competition.

6. Progressiveness of competition.
Plans for expansion

Our retail growth strategy is to increase retail sales and profitability by expanding our
network of retail store and improving the performance of existing store.

Our retail locations build brand awareness and contribute to market penetration and
growth of the brand in concert with our wholesale operations. The store will also consider
opening stores in the different states in the next years.

My long-term plan for the business

1. To invest more in the future to expand the business.

2. To keep my own inventory of different stuff of clothes.

3. To engage the fashion designers to make hand-made creative and more beautiful
clothes.
4. To advertise my shop through online advertising.

5. To arrange workers up to 20.

6. To keep more accessories like jewellery, make-up accessories.

7. To arrange latest equipments for stitching clothes.

8. To earn the profits 5 times of the today’s profits.

9. To built a big showroom from the small store.

10. To expand the business in the whole country and opening of the stores in different
states.
Market research
Existing demand of target market

1. Medium demand in the market where my shop is located.

2. The buyers are generally belong to low and middle income group levels.

3. Moderate availability of the branded stock in most of the shops.

4. The people who have high demand are girls, women and school going kids.

5. Mostly the daily wear clothes and household items are highly demanded.

6. The specialty stores have grown in popularity with the 13-to 25-year-old segment and

department stores have declined in popularity with the same age group.

7. Minimum percent of consumer bought the majority of their casual wear at department

stores and 21 percent of their dress wears in the area where my shop is located.

Competition

It is located on a strip that includes a variety of businesses, but none of which create any
competition. The other competitive edge we have developed is the atmosphere and
reputation.
Traffic is moderate to heavy, especially near the lunch and dinner hours. The closest
competing urban wear store is at least 10 miles away, located in Rohini area. There are no
other urban wear stores in the direct vicinity of my shop location.
Our location of the shop is a very important competitive edge. We are there, right at the
point of entering or exiting the market. The nearest competitor is at least 5 miles away.
We will also offer more personal attention to our customers than the larger mall retail
stores.
Strengths and weakness of the industry- barrier to entry

Strengths of my shop

1. Current location in the center has high traffic, in an area with several other shops
targeting the same market which draws people to the area.

2. Our innovation is in our sales technique and point of sale displays.

3. Unique brands protected by sole supply agreements.

4. Successful relationship marketing.

5. Shop size is restrictive.

6. Our product is effective quality despite low level brands, high margin and low volume
in comparison.
7. The stock is the same as our competitors. One can pick and choose what styles to
stock.

8. Branded and local clothes are available in my shop.

9. Easy to attract people in the market.

Weaknesses of my shop

1. We only sell a few of brands of clothes.

2. Small store size and inability to find an expansion, resulting in stocking a limited
product range.

3. Shop name is not well known.

4. Limited industry experience and industry knowledge.

5. Yet there are no contractual restrictions to us adding products to the store, store size is
an issue.

6. There is not a lot of competitive advertising in the market where my shop is located
and price is not so much of an issue to our customers.

Barriers and obstacles faced while entering in the market

1.The need of the huge capital to start up such as equipment, building, and raw materials
and we have not invested much in the beginning.

2. The large and experienced retail owners can generally produce goods at lower costs
than small and inexperienced retailers.

3. The government regulations may make entry more difficult or impossible. In the
extreme case, a government may make competition illegal and establish a statutory
monopoly. Requirements for licenses and permits may raise the investment needed to
enter a market, creating an effective barrier to entry.

4. The sunk costs and lost money cannot be recovered if a retailer decides to leave a
market.
5. The incumbent retailers can seek to make it difficult for new competitors and entrants
by spending heavily on advertising that new retailers would find more difficult to afford.

6. If a single retail shop owner has control of a resource essential for a certain industry,
then other retail shop owners are unable to compete in the market.

7. When a good or service has a value that depends on the number of existing customers,
then competing players may have difficulties in entering a market where an established
retail shop and a showroom has already captured a significant user base.
Marketing plan
Distribution strategy

The distribution involves a number of activities centered on a physical flow of goods and
information. At one time the term distribution applied only to the outbound side of supply
chain management, but it now includes both inbound and outbound.

Management of the inbound flow involves these elements:-

1. Material planning and control.

2. The purchasing.

3. The receiving.

4. Physical management of materials via warehousing and storage.

5. Materials handling or handling of the stock.

Management of the outbound flow involves these elements:-

1. Order processing.

2. Warehousing and storage.

3. Finished goods management.

4. Material handling and packaging.

5. The shipping.

6. The transportation.

Distribution channels are formed to solve three critical distribution problems: functional
performance, reduced complexity and specialization.
The distribution strategy defines how you are going to create and satisfy demand for your
products. A distribution strategy defines how you are going to move products from point
of creation to points of consumption, in a cost-effective manner. It must also define how
to manage the brand.

For my shop:-

The suppliers supply the stock to my shop every 15 days and sometimes also asked if
there is an urgent requirement of clothes in my shop.

No particular procedure for distribution is followed but the salespersons in my store

communicate to the people who came to my shop and ask their requirements. Then, they
start serve the customers by showing clothes to them.

Pricing strategy

Pricing is the process of determining what a company will receive in exchange for its
products. Pricing factors are manufacturing cost, market place, competition, market
condition and quality of product. Pricing is also a key variable in microeconomic price
allocation theory. Pricing is a fundamental aspect of financial modeling and is one of the
four Ps of the marketing mix. The other three aspects are product, promotion, and place.
Price is the only revenue generating element amongst the four Ps, the rest being cost
centers.

Pricing is the manual or automatic process of applying prices to purchase and sales
orders, based on factors such as: a fixed amount, quantity break, promotion or sales
campaign, specific vendor quote, price prevailing on entry, shipment or invoice date,
combination of multiple orders or lines, and many others. Automated systems require
more setup and maintenance but may prevent pricing errors. The needs of the consumer
can be converted into demand only if the consumer has the willingness and capacity to
buy the product.
Financial decisions
 Financial statements and cash flows

Financial planning is the task of determining how a business will afford to achieve its
strategic goals and objectives. Usually, a company creates a Financial Plan immediately
after the vision and objectives have been set. It describes about the activities, resources,
equipment and materials that are needed to achieve these objectives, as well as the
timeframes involved.

Basically, the financial plan section of the business plan consists of three financial
statements, the income statement, the cash flow projection and the balance sheet and a
brief explanation/analysis of these three statements.

The list of operating expenses may include:-

1. Salaries (staff salaries).

2. The telecommunications.

3. The utilities.

4. The inventory.

5. The storage of the inventory.

6. The promotion of the shop and stock.

7. Office supplies.

8. The maintenance.