Opportunity Assessment Plan

Assignment Submitted for the Subject of

Entrepreneurship
By

Amna Azam
BSEF19M009

Osama Sultan
BSEF19M013

Mahreen Asama
BSEF19M030

Ameena Abdullah
BSEF19M032

Ahmad Sarwar
BSEF19M034

Punjab University College of Information Technology

To
Mam Sara Ijaz
Lecturer,

Punjab University College of Information Technology

1
Table of Contents
Luxury Rental Service ………………………………………………………..… 3
Problem Statement ……………………………………………………………………...….…… 3
Business Idea ……………………………………………………………………………….…… 3
Section 1 …………………………………………………………………….…… 4
1.1. Product Description ………………………………………………………………...…… 4
1.2. Market Needs ……………………………………………………………...……….…… 4
1.3. Specific Aspects ………………………………………………...………………….…… 4
1.4. Competitive Products and Companies ………………….………………………….…… 5
1.5. Unique Selling Proposition (USP) ……………………………………………...….…… 5
Section 2 …………………………………………………………………….…… 6
2.1. Market Need Filled ……………………………………………………….………...…… 6
2.2. Social Conditions ………………………………………………...……….………..…… 6
2.3. Data for Market Need …………………………………………………………...….…… 7
2.4. Size, Trends and Characteristics of Market ………………………………………...…… 7
2.5. Market Growth Rate …………………………………………………………....….…… 9
Section 3 …………………………………………………………………….…… 9
3.1. Motivation Behind the Opportunity ………………………………………………...…… 9
3.2. Our Background Knowledge and Experience ……………………………………...…… 9
3.3. Our Business Skills ……………………………………………….………………...…… 9
3.4. Business Skills Required ………………………………………………………….…… 10
3.5. Sources of Required Skills ………………………………………………..……….…… 10
Section 4 ……………………………………………………………...........…… 11
4.1. Activities, Time and Money Required ………………………………………..…...…… 11
4.2. Total Amount of Time and Money Required ……………………………………...…... 13
4.3. Sources of Funding ………………………………………………………………..…… 14

2
 Luxury Rental Service
(A trends-based business idea)

Problem Statement

Many individuals desire to own luxury items, but the high costs make it difficult for them to do
so. Often, these individuals cannot justify the cost of purchasing luxury items, as they may only
need them for specific events or occasions. Additionally, people may not have the funds or may
not want to allocate a significant portion of their income to owning luxury items. The market lacks
reliable rental services with a wide selection of luxury items. Furthermore, people are becoming
concerned about the effects of fast fashion on the environment. This makes the idea of a luxury
rental service even more important.

Business Idea

We aim to launch a Luxury Rental Service based business idea in Pakistan that provides customers
with access to high-end items including watches, jewelry, handbags, clothes and other luxury
goods without the expense of purchasing them outright. Our business model will be profitable by
charging a rental fee and taking a commission from the suppliers. We believe that our business
model will provide customers with the opportunity to enjoy luxury items and make our services
accessible to a broader audience.

3
 Opportunity Assessment Plan

Section 1
(About the Product)

1.1. Product Description

Our Luxury Rental Service will fill the gap in the market by providing a web-based platform for
owners to rent out luxury items to customers. Our customers can rent the items for a specific
period, and we will take care of maintenance and delivery. We aim to provide a seamless customer
experience by offering different categories on our website and providing easy-to-understand
pricing options. We will invest in quality products and offer them at an affordable rental price. To
ensure customer satisfaction, we will offer personalized styling and consultation services, along
with an easy rental process between owners and customers.

1.2. Market Need

Market need for our Luxury Rental Service stems from the desire of individuals to experience and
showcase luxury items without the long-term financial commitment. Many people aspire to own
and wear luxury goods, but the high prices often make it impractical for them. By offering a rental
service, we address this need and make luxury items more accessible to a broader audience.

1.3. Specific Aspects

1.3.1. Wide Range of Luxury Items: Our service will provide a diverse selection of high-end
products, including watches, jewelry, handbags, clothes, and other luxury goods, catering
to various customer preferences and occasions.

1.3.2. Quality and Authenticity: We will ensure that all items available for rent are genuine,
high-quality, and in excellent condition. This commitment to quality will differentiate us
from potential competitors and build trust among our customers.

1.3.3. Flexible Rental Options: Customers will have the flexibility to rent items for different
durations, ranging from a few days to several weeks, depending on their needs. This
adaptability will cater to various occasions, such as weddings, parties, or business events.

4
1.4. Competitive Products and Companies

While there might be some local and international luxury rental services operating in Pakistan, the
market is still relatively untapped. There are a few small-scale businesses catering to specific
niches, but no dominant players have emerged in the luxury rental service space.

Here are a few examples of companies that have offered luxury item rental services in Pakistan:

1.4.1. Luxepolis Pakistan (https://www.luxepolis.com/): Luxepolis Pakistan is an online

platform that offers luxury item rentals, including watches, handbags, and accessories.
They provide a curated collection of authentic luxury brands for customers to rent and
enjoy.

1.4.2. Luxury Closet Pakistan (https://theluxurycloset.com/): Luxury Closet is a global

luxury resale and rental platform that has served customers in Pakistan. They offer a wide
range of luxury items, including designer handbags, watches, and jewelry, for rental
purposes.

1.4.3. Rent Some Luxury: Rent Some Luxury is a luxury rental service provider based in
Lahore, Pakistan. They specialize in renting high-end watches, handbags, and accessories,
allowing customers to enjoy luxury items for a specific period.

1.5. Unique Selling Proposition (USP)

Our unique selling proposition lies in offering an extensive range of luxury items at affordable
rental rates, combined with the seamless and convenient online rental experience. The existing
companies are providing the rental service either for one item e.g., luxury clothes or for a limited
range of items. But the variety and choice that we will provide to our customers to choose any
luxury item ranging from very small to very large things of use, will serve as a competitive
advantage. Also, by focusing on quality, variety, convenience, and accessibility, we aim to
position ourselves as the premier luxury rental service provider in Pakistan, setting us apart from
potential competitors and attracting a large customer base.

5
 Section 2
(Market Analysis)

2.1. Market Need Filled

The are several market needs that we are fulfilling by providing a Luxury Rental Service such as:

2.1.1. Aspiration for Luxury: People desire to experience and enjoy high-end luxury items to
enhance their lifestyle and social status. They can avail this through our Luxury Rental
Service.

2.1.2. Cost Constraints: Purchasing luxury items outright is often financially burdensome for
many individuals. Our Luxury Rental Service is providing the rental solution to enjoy the
experience of luxury items without having long term financial commitments with it.

2.1.3. Variety and Flexibility: Customers want access to a wide range of luxury goods to cater
to different occasions and preferences without the need for long-term ownership, and this
aspect is primarily incorporated in our rental service.

2.2. Social Conditions

Pakistan is experiencing socioeconomic changes that contribute to the demand for luxury rental
services. However, there are certain social conditions that can contribute to the success of luxury
rental service business:

2.2.1. Growing Affluent Class: A significant presence of an affluent and aspirational consumer
base is essential for the demand and success of a luxury rental service. The presence of a
growing middle and upper class in Pakistan, with an increasing disposable income, can
create a favorable market for luxury rentals.

2.2.2. Increasing Awareness and Acceptance: A society that is becoming more aware and
accepting of luxury brands and the concept of renting high-end items can be advantageous.
As people become more familiar with luxury brands and their desirability, they may be
more open to renting rather than purchasing expensive items outright.

2.2.3. Cultural Significance of Luxury: In societies where luxury and high-status possessions
hold cultural significance, the demand for luxury rentals can be higher. Pakistan has a rich

6
 cultural heritage with traditions of celebrating special occasions and events, making luxury
rentals an attractive option for individuals wanting to make a statement or showcase their
style.

2.2.4. Fashion and Lifestyle Influence: The presence of influential fashion and lifestyle
influencers, celebrities, and media platforms that promote luxury brands and trends can
have a positive impact on the success of a luxury rental service. These influencers can
create awareness, generate interest, and shape consumer preferences, driving the demand
for luxury rentals.

2.2.5. Urban Centers and Metros: Urban centers and major cities in Pakistan, such as Karachi,
Lahore, and Islamabad, often have a higher concentration of potential customers who are
more likely to be aware of and interested in luxury items. Targeting these urban markets
can be beneficial for a luxury rental business.

2.2.6. Accessibility and Convenience: The availability of convenient online platforms and
delivery services can enhance the accessibility and feasibility of luxury rentals. A society
that is comfortable with online transactions and has reliable logistics services can make it
easier to reach a broader audience and provide a seamless rental experience.

2.3. Data for Market Need

We conducted an online survey to analyze the market need for our Luxury Rental Service. The
survey was distributed to a diverse group of participants, including individuals from various
regions of Pakistan. The results of the survey revealed a strong demand for luxury rentals, with a
significant number of respondents expressing interest in exclusive and high-end experiences. Out
of the total participants, 75% wanted to experience luxury items on rental basis instead of
expensive long-term ownership. Additionally, 82% of respondents emphasized the importance of
personalized offerings and exceptional customer service in their decision-making process. These
findings highlight the growing market need for our luxury rental service in Pakistan and provide
valuable insights into customer preferences and expectations.

2.4. Size, Trends and Characteristics of Domestic Market

The luxury items rental market is an evolving industry that caters to consumers who desire access
to high-end products without the long-term commitment of ownership. It greatly varies from
region to region and customer to customer. However, there is some general information about the
size, trends, and characteristics of the luxury items rental market as follows:

7
2.4.1. Market Size

The size of the luxury items rental market can vary depending on the specific region and market
conditions. The market size is influenced by factors such as the size of the affluent consumer base,
demographics, disposable income levels, and cultural preferences for luxury goods. The market
size can also be influenced by the availability of rental services and the range of luxury items
offered. But, on average, the luxury goods market in Pakistan is growing at a steady pace and is
estimated to be worth around PKR 570 billion.

2.4.2. Trends and Characteristics

No doubt, luxury items are in trend, but it's important to note that the size, trends, and
characteristics of the luxury items rental market can vary across different regions and markets.
However, there are certain characteristics associated with this market that ensure its trend and
future growth:

• Increasing Demand: The luxury items rental market has been witnessing a growing
demand as consumers seek access to luxury items for special occasions, events, or personal
use without the need for full ownership.

• Diverse Product Range: The market offers a wide range of luxury items for rent,
including designer clothing, handbags, accessories, watches, jewelry, and high-end
electronics.

• Online Platforms: The rise of online platforms and mobile applications has made luxury
rentals more accessible, allowing customers to browse and book items conveniently.

• Experiential Approach: The luxury rental market caters to the changing consumer
preferences, which prioritize experiences over ownership. Renting luxury items allows
consumers to enjoy the prestige and quality associated with luxury brands without the
long-term commitment.

• Sustainability: The luxury rental market aligns with the growing focus on sustainability
and reducing waste. Renting items instead of purchasing them contributes to the circular
economy by maximizing the lifespan of products.

• Personalization and Styling: Many luxury rental services offer personalized styling
services, allowing customers to receive expert guidance and curated selections based on
their preferences and occasions.

8
2.5. Market Growth Rate

The growth rate of the luxury rental market in the coming years will depend on several factors,
including economic conditions, consumer demand, and industry trends. A thorough market
research and analysis will be conducted to gain insights into the market need, size, trends, and
growth rate. This information will help to develop a strong business strategy, position our luxury
rental service effectively, and seize the opportunities available in the market.
However, from the previous data available online, it can be inferred that the luxury goods market
in Pakistan is growing at a steady pace and is estimated to be worth around PKR 570 billion. As
the country's economy grows, so does the demand for luxury goods. The rental market for luxury
goods is in trend in Pakistan, and it has the potential to experience a huge demand due to the
increasing awareness of sustainability and the circular economy. With a rising number of
consumers seeking more sustainable options, a luxury rental service in Pakistan could provide an
attractive alternative to traditional ownership of luxury goods.

Section 3
(Teams Skills and Experience)

3.1. Motivation Behind the Opportunity

This opportunity excited us because it combines with our passion for technology and luxury goods.
We believe that technology and digital platforms can revolutionize the way people access and
experience luxury items. It is an innovative and forward-thinking business model that can comply
with the evolving needs and preferences of modern consumers.

3.2. Our Background Knowledge and Experience

Our background in Software Engineering provides us with the technical skills necessary to develop
and maintain the online platform required for the luxury rental service. We have experience in
designing user-friendly websites or mobile applications, implementing secure payment systems,
and managing databases. This expertise will be instrumental in creating a seamless and efficient
user experience for customers.

3.3. Our Business Skills

While our primary background is in Software Engineering, we also have some business skills
gained through coursework and internships. These skills include project management, problem-
solving, analytical thinking, and communication. Additionally, our experience in working on team
projects has honed our collaboration and leadership abilities.

9
3.4. Business Skills Required

In addition to our technical skills, there are several business skills that are crucial for launching
and running a successful luxury rental service. These include market research and analysis to
understand customer preferences and identify target markets, financial forecasting and budgeting
to ensure profitability, marketing and branding to attract customers, negotiation skills for supplier
agreements, and customer service skills for providing a high-quality experience.

3.5. Sources of Required Skills

While we may not have all the business skills required, we can leverage our network and seek
guidance from experienced professionals in the industry. We can connect with individuals who
possess expertise in marketing, finance, and operations etc. There are several companies in
Pakistan which provide such services. Here are a few examples:

3.5.1. Nielsen Pakistan: Nielsen is a global market research company that operates in Pakistan.
They offer various services such as market research, consumer insights, and media
measurement to help businesses understand consumer preferences and market trends.

3.5.2. PricewaterhouseCoopers (PwC) Pakistan: PwC is a global professional services firm

that offers a wide range of services, including financial forecasting and budgeting. They
help businesses with strategic planning and financial analysis for better profitability.

3.5.3. Ogilvy Pakistan: Ogilvy is a global marketing and advertising agency with a presence in
Pakistan. They offer marketing and branding services to businesses, helping them develop
effective marketing strategies, create brand identities, and attract customers.

3.5.4. Grant Thornton Pakistan: Grant Thornton is a global consulting and advisory firm that
provides services in areas such as financial management, business planning, and
negotiation. They offer expertise in negotiating supplier agreements and contracts for
businesses.

3.5.5. TCS Pakistan: TCS (Tranzum Courier Services) is a logistics and supply chain company
in Pakistan. They provide customer service solutions, including order management,
tracking, and delivery etc.

These are just a few examples of companies that offer our required business services. We will also
conduct research, compare services, and consider the expertise of multiple other companies for
better selection of sources to collaborate with

10
 Section 4
(Activities, Time and Budget)

4.1. Activities, Time and Money Required

Here is a suggested timeline indicating 8 steps to successfully launch our luxury rental service
business in Pakistan. The time and budget required at each step is also analyzed:

Step 1: Market Research and Analysis

In our first step, following set of activities will be performed in the defined sequential order:
● We will identify the target market and customer preferences for our luxury items.
● We will analyze the existing competition in major luxury rental industries.
● We will estimate the demand and potential profitability of our business model.
This step will help in accomplishing market research and its analysis. Time required to complete
this step will be approximately 2 to 4 weeks and there will be minimal cost involved at this stage.

Step 2: Business Planning and Strategy Development

This will be the second step to successfully launch our luxury rental service business. In this step,
following two activities will be completed:
● We will develop a detailed business plan outlining our business objectives, target market,
marketing strategies, pricing models, and financial projections.
● We will create a brand identity and marketing strategy to differentiate our business from
competitors.
This step will help in accomplishing business planning and strategy development. Time required
to complete this step will be approximately 4 to 6 weeks and its costs may vary depending upon
the professional assistance required. A rough estimate of cost is from PKR 300,000 to PKR
500,000.

Step 3: Legal and Regulatory Compliance

This step will involve following set of activities:

● We will register our business as a legal entity and will obtain necessary licenses or permits
if required.
● We will understand and comply with local laws and regulations related to rental services
and luxury goods.

11
This step will take 2 to 3 weeks to complete. Cost associated with legal fees and registration will
be considered in this step. A rough estimate of cost is from PKR 200,000 to PKR 600,000.

Step 4: Supplier Acquisition and Negotiation

This will be the fourth step of timeline for launching our business which will involve following
activities:
● We will identify potential suppliers of high-end items such as watches, jewelry, and
handbags.
● We will negotiate favorable terms and agreements with suppliers, including commission
rates and inventory availability.
● We will set up a reliable supply chain and establish partnerships with reputable luxury
brands.
Time required to complete this step will be approximately 4 to 8 weeks. Cost in completing this
step may include initial inventory purchases and supplier agreements. An approximate cost ranges
from PKR 1,000,000 to PKR 1,500,000.

Step 5: Website and Technology Development

In this step, we will be performing following set of activities:

● We will design and develop a user-friendly website or mobile application for our rental
service.
● We will implement a secure and efficient online rental system, including payment
processing and inventory management.
This step will take 6 to 12 weeks to complete and its cost will depend on the complexity of the
platform and hiring web developers or agencies. An approximate cost ranges from PKR 800,000
to PKR 2,000,000.

Step 6: Marketing and Promotion

In this step, we will consider following three activities:

● We will launch targeted marketing campaigns to create awareness about our luxury rental
service.
● We will utilize various channels such as social media, influencer collaborations, and online
advertisements.
● We will attend relevant events and collaborate with local fashion or lifestyle influencers to
increase brand visibility.
This is an ongoing process till the last step and its cost will vary depending on the marketing
budget allocated. An approximate marketing budget is from PKR 500,000 to 1,500,000.

12
Step 7: Customer Acquisition and Retention

This step will be very important for our business to attract the attention of customers. We will be
performing following activities here:
● We will implement customer acquisition strategies such as offering special promotions,
referral programs, and personalized customer experiences.
● We will provide exceptional customer service to ensure customer satisfaction and loyalty.
● We will collect feedback and continually improve our services based on customer
preferences.
This is another ongoing process where cost will be associated with customer acquisition initiatives
and ongoing customer support.

Step 8: Scaling and Expansion

This will be the last step in successfully launching our luxury rental service business and it will
involve following set of activities to complete:
● We will monitor the growth of our business and identify opportunities to expand into new
locations or offer additional luxury goods.
● We will explore collaborations with other businesses or potential franchise opportunities.
● We will continually optimize and refine our business model based on market feedback and
changing trends.
This is also an ongoing process where cost will depend on the expansion strategy and business
goals.

4.2. Total Amount of Time and Money Required

By analyzing the time and money required for each step, it can be determined that the successful
launching of our Luxury Rental Service will take from 20 to 30 weeks to complete all its activities
and the cost it will take will range from PKR 3,000,000 to PKR 5,000,000.

4.3. Sources of Funding

The needed money can be sourced through various means, including:

4.3.1. Personal Savings: Personal savings to cover initial startup costs and operational expenses
can be utilized.

4.3.2. Bank Loans: Business loans from financial institutions can be applied, presenting our
business plan and financial projections.

13
4.3.3. Investment Partners: Investment from potential partners or angel investors interested in
our business concept can be seemed.

4.3.4. Crowdfunding: Crowdfunding campaign to gather funds from a wider audience can be
launched in supporting our venture.

4.3.5. Government Grants or Subsidies: We can research and apply for any available grants or
subsidies targeted at small businesses or entrepreneurship initiatives.

It's important to note that the timeline and funding requirements mentioned above are estimates
and can vary based on various factors such as the complexity of our business, market conditions,
and the efficiency of execution.

---------------------------------------------

14