BUSINESS FEASIBILITY

REPORT :

STYLE LOFT

BY: PRACHI AIDASANI (04)

MUSKAAN AMESUR (05)
JHEEL CHUGANI (14)

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INTRODUCTION

Do you think all these lehengas are mehenga? Do you think it is a

waste to spend tens of thousands of rupees on wedding dresses and
accessories? We bring to you Style loft where you can rent out
lehengas, sarees, sherwanis, gowns, tuxedos and accessories. Not only
that, you can also style and design your own ideas with the help of our
in house brand.
Style loft is a unique rental market for fashion where we bring to you
a wide selection of exclusive designs from various boutiques along
with an attractive range of designer clothes.
For those who have buzzing ideas of their own designs, we provide
you our in house brand with our bandwagon of stylists, tailors, etc. to
give a shape and form to your own ideas at the most reasonable prices
available.
Our website caters to all market segments and on top of that, it
doesn’t even hurt your bank account!

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 INDEX

TOPIC PG NO.
Product/service
Technology
Market environment

Competition
Industry
Marketing and sales strategy

Operating costs
Management personnel
Intellectual property

Regulations
Critical risk factors

Financial projections

Conclusion

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PRODUCT/SERVICE:

 We noticed a huge gap in the designer wear market because access to

such clothes come with a high cost. This why we came up with the idea
of renting of garments
 Style loft offers an online platform that enables women to rent its
products.
 It helps you move over bargains, discounts and sales- rent exclusive and
glamorous designer wear at a fraction of their retail price. 
  Our team of stylists and designers are constantly keyed in to the latest
trends and celebrity looks. We know what you’re looking for, even
better than you do! We offer personalized style advice based on your
need, body type and preference.
 Dress to impress for brunches, official lunches, date nights, club nights,
cocktails or weddings. Inspired by the latest global trends, you will
always be ahead of trends when you shop with us. Be on-trend for any
special occasion with our designer capes, lehengas, forward capes,
jackets, dhotis, pant-suits, anarkalis, dresses, suits, sherwanis, tuxedos,
jackets, and gowns.
 We offer the best of the latest fashion inspired by the latest in celebrity
fashion, making it a one-stop shop for trend and glamour. We believe
fashion is for everyone and don’t let your wallet tell you any different.
We make sure that our clothes not only make you feel great but are also
value for money.
 Regular quality and durability check of the garments will be conducted
by our personnel to ensure the best outfits for our valuable customers.
 With expanding years we will also be bringing big designer names on
board with us when the concept of renting has once been normalized
and widely accepted in india.

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 TECHNOLOGY:

 Since our website is our main source of connecting with our customer,
we need to have an expert of a technical team. Regular updates to the
website will be needed, the procedure to place an order should be
smooth and all payments should be secured.
 The technical team must be quick and abled enough to change the
websites coding if any risk shall occur.
 Our stock on the website must be regularly updated.

INTENDED MARKET ENVIRONMENT:

 Target Market: Middle class people and upper middle class people
 Users: anyone from the age of 13-60
 Customers: 18 and above
 Our service enables users to access heaps of trendy designer dresses
without having to pay for their market prices and thus enabling them
to save more money and rock different looks on different occasions
 On an average, 10 million weddings take place every year in india out
of which 80% are full blown hindu weddings. This, makes our model
idea very profitable and gives us scope for expansion in future.
 Initially, we are starting only in Mumbai with a vision to expand all
over india after.
 Gender: Inclusive of all gender outfits
 Style: Ethnic and western outfits available
 Occasions: weddings, parties, dates, festivals, special occasions, etc

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COMPETITION:

 Stage3.co/ Rent A Closet/ Flyrobe – already provide renting servies

(direct competition)
 Low end boutiques- sell outfits at low costs (indirect competition)
 For a similar service to enter the market is pretty easy but maintaining
a base and expanding isn’t
 DIIFICULTIES FOR A NEW VENTURE :
 High inventory costs
 Getting consent from designers
 Making a market standing , initially
 Maintaining the quality of the outfits
 Ensuring minimum damage to the outfits
 Ensuring the return of products on time
 Ensuring full payment

INDUSTRY:

 Service industry/ Fashion industry

 Growing at a CAGR of 10.6% year-on-year, the Indian fashion rental
market is touching Rs 12,000 crore, as per analyst estimates
 Fast fashion is not a sustainable practice and to top it, the shopping
behaviour of today’s millennials has changed drastically wherein they
need a new garment for every occasion. And this has led to rise in rental
market in developing economies
 This spurt in growth in the rental industry can be attributed to more
and more millennials joining the workforce with an increasing
disposable income
 Obtaining varied styles from different designers to cater to a fashion
forward consumer base is one of the difficult parts of this industry.
Staying up to date with the fashion world, understanding the current
demand and predicting the future trends only make up the tip of the
iceberg.

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MARKETING AND SALES STRATEGIES:

OPERATING COSTS:

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MANAGERMENT PERSONNEL:

INTELLECTUAL PROPERTY:

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REGULATIONS/ ENVIRONMENTAL ISSUES:

 Shops And Establishment License For A Fashion Boutique.

 Trade License For A Fashion Boutique.

 License Fees For Licensing A Fashion Boutique.

 Service Tax Registration.

 Trade Mark Registration Of our Fashion Boutique.

(We aim to obtain all documents before launching our offline and online

store to comply with the law.)

CRITICAL RISK FACTORS:

 It is an expensive undertaking. Its model requires a tremendous amount of
capital, as demonstrated by our financial statement. We plan to have an
exit strategy to mitigate the risk of us only making loses.
 To quickly diagnose and remove stains. For this, we plan to have trained
spotters in the future.
 The business requires a deep knowledge of fibers, materials, and stain-
removing chemicals.
 Having quick repairs done to lose ends of our dresses.
 Consumers may have concerns about the financial loss if they pay the
provider for renting up-dated fashion items, but do not get what they
expect. For this, we have an offline store available with a physical set up
for all our dresses to ensure consumer confidence and trust.
 Performance risk involves the uncertainty about whether or not the
performance of the product will be as expected. To mitigate this, we
would conduct regular market research to know what the consumer
expects and wants from the market at that time.
 Rental clothes are shared and thus worn by multiple users, which raise
concerns about hygiene issues of rental items. We will have the outfits
dry cleaned after each use.

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FINANCIAL PROJECTIONS
PARTICULARS AMOUNT AMOUNT
Cost of inventory   160,000
     
Total store cost:    
Rent 30,000  
Electricity 6,000  
Furniture 100,000  
Store maintainance 10,000  
Miscellaneous 2,000 148,000
     
Total Raw Material cost: (in house brand
dresses)   100000
     
Total Website cost:    
Cost of building a website 35,000  
Maintainance of website 6,000  
Payment for domain name 850 41,850
     
Total Salaries:    
IT personnel 30,000  
Tailor 20,000  
Dyer 1,000  
Stylists 20,000 71,000
     
Cash in hand   20000
Cost of delivery   30,000
Cost of packaging   50,000
Cost of advertising   30000
General office supply   5000
TOTAL   655,850
     
     

NOTES: Total inventory cost: 20,00,000/12

Stylists: hiring interns
dyers: commission basis
delivery: 1yr contract with We-fast
advertising: digital marketing
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EACH DRESS IS RENTED APPROX 8 TIMES BEFORE IT WEARS OUT
1st year renting 200 7200000
2nd year renting 350 12600000
3rd year renting 500 18000000

TOTAL 37800000

APPROXIMATE PROFIT PER DRESS 11000

TOTAL PROFIT IN 3 YEARS 11550000

 According to our cost sheet, we will start generating from the third year
of our business.
 The business will provide a viable return on investments for the owners
and the investors.
Capital Requirements and Strategy
 An amount of Rs.78,70,200 funding the firm will need at the initial stage.
 We will be getting our funding from lending institutions who provide
small business loans and by self funding.


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CONCLUSION:
In Rent Style Loft’s perfect world, there’s less waste — both on a personal
and economic level — but not less style, for everyone. And now with the
challenge of shifting consumer behavior far past those early, trying stages,
that perfect world might not be so far out of reach.
We are a place where users can rent a piece for a one-off occasion and then
send it back. Our users are guaranteed to find new brands and pieces with
styles they’re looking for without them having to break their wallets for each
use purchase.
We may not profit for the starting few years but according to the
assumptions we’ve taken, we will start profiting in 3 years (we have taken
then the bare minimum sales figures). The rental industry has rapidly started
growing as a concept now and this could just help us prosper in every way
that we need.

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