Question 2: Feasibility Analysis

2.1 Overview
The product of the project calling for capital is Emwear branded home wear fashion
founded by CEO Nguyen Thi Thuy Trang in 2016. Although Emwear home wear
fashion brand was born a year before the broadcast of the program "Billion-dollar
deal" season 1 was first aired in 2017, but at that time Emwear home wear products
seemed to be still a new product for the Vietnamese market. Two big cities, Hanoi and
Ho Chi Minh City, are aged from 20 to 35 years old and have an average monthly
income of VND 8 million or more. In the future, expand regional production and
export to overseas markets. Customer needs in this project are home clothes combined
with luxurious, modern but discreet sleepers, comfortable materials.
2.2 Target market
Emwear's immediate goal is to increase its coverage in the market, at the same time
research, launch fashion products, implement a strategy to promote pajamas by not
only online marketing but also customers coming to Emwear are also word of mouth
from one person to another. Facebook is the most used and promoted channel to reach
customers, then it will go to partner e-commerce channels such as Zalora, Robins,
Ferosh, offline with stores ...In order for product images, brands to be known and used
by more people, more customers, more promotions so that product images, impressive
colors of the brand are known and used more usefully. Currently, the number of
returning customers is stable by 25-35% per month, revenue in the first 6 months of
2018 exceeds the target by 150%.

2.3 Market analysis

2.3.1 Market segmentation

Many figures show that Binh Duong has risen to become a bright spot attracting many
foreign investments. This province is gradually becoming a reliable destination for
many foreign investors. From 2020-2025, Binh Duong province attracts FDI of 9.56
billion USD.
This is a good sign for the economy in Binh Duong
The economy is gradually developing, so life here will also develop
People have more demand for services, such as
 This province is also a bright spot in urban development, many new urban
areas are created, industrial - service complexes, etc,...
 Transport infrastructure in Binh Duong is also increasingly being upgraded
 The market segment for products that Emwear sells in Binh Duong does not
have many competitors
A potential new destination for Emwear:

 Store location: on Thich Quang Duc Street in Binh Duong (a busy street with
many business shops).
 Facilities: The store will have an area of 40m2, including product display
space, sales space, fitting room, warehouse, etc
 The products will be displayed on the rack with an eye-catching, scientific and
colorful arrangement to help customers easily choose the right product
according to their needs. The lighting design inside the store is moderately
bright, the store will also be located in a sunny location to create a fresh, lively
feeling.

2.3.2 Market Growth

In order to survive strongly in the competitive market, the store must always focus on
developing product creation strategies as well as marketing strategies to be able to get
closer to customers. Emwear brand will always update buyer trends to have many
trendy designs as well as meet consumer preferences. Many models as well as many
different colors for customers to have more choices, from elegant and soft to luxurious
and seductive.

2.3.3 Market Potential

Because it is a potential location, when operating here, we must try to create trust with
customers. Choose a sunny area to create a fresh, lively feeling suitable for the store's
products. Reasonable and unique quality clothes will impress first-time visitors.
Creating an impression will help customers remember the store and will be able to
come back whenever there is a need to shop in the area. In addition, it will also have
the effect of word-of-mouth marketing that will introduce them to their friends and
relatives. Thereby showing the development potential of this land.
According to Wikipedia, in 2022 the total population of Binh Duong province is
2,678,220 people. The average product price that I learned from other stores like
MiuLeo, Chibest Binh Duong,... is about 300,000VND/suit.
From there, it is estimated that the total revenue:
Total = 2,678,220 x 300,000 =803,466,000,000 VND
And the number of leads we initially targeted was about 25%. From this the total
potential revenue is
Estimated market potential = 803,466,000,000 x 20% = VND 160,693,200,000
When we researched the market in that area, we estimated there are about 25 stores in
Binh Duong province, with an area of about 50m2 per store. In the area where we
opened stores, specifically in the center of Binh Duong province, there are about 5
stores with the same model as us. Thereby we calculate the target area:
Area: 50 x 25=1250m2
Target area = 50 x 5 = 250m2
Our store area is about 40m2.
40
From there, calculate % Market Share = =0.14%
40+250

Market Potential
Target customers 20%
City population 2,678,220
Unit cost 300,000
Total 803,466,000,000
Estimated market potential 160,693,200,000

Trade area 1,250

Target area 250
Your store 40
% Market share 13.79%
Estimated sales in 2024 22,164,579,310VND

Table 1. Market Potential

2.3.4 Project Income

From the above calculated research results. We estimate revenue for 2024
Estimated sales in 2024 = 13.97% 𝑥 160,693,200,000 = 22,448,840,040 VND
The following is our restaurant's five-year estimate table
 2024 2025 2026 2027 2028

22,448,840,0 33,673,260,0 48,826,227,0 68,356,717,9 92,281,569,1

Sales 40 60 87 22 94
% +/- 50% 45% 40% 35%

10,101,978,0 15,152,967,0 21,971,802,1 30,760,523,0 41,526,706,1

COGS 18 27 89 65 37
%/Sales 45% 45% 45% 45% 45%

1,680,000,00 1,680,000,00 1,680,000,00 1,680,000,00 1,680,000,00

Rent 0 0 0 0 0

5,050,989,00 7,323,934,06 10,253,507,6 13,842,235,3

Wages 378,000,000 9 3 88 79
%/Sales 2% 15% 15% 15% 15%
Owner's
salary 168,000,000 168,000,000 168,000,000 168,000,000 168,000,000
Employee
benefits 31,500,000 32,760,000 34,070,400 35,433,216 36,850,545

Advertisin 1,151,625,49 1,669,856,96 2,337,799,75 3,156,029,66

g 84,000,000 4 6 3 6
%/Sales 0.37% 3.42% 3.42% 3.42% 3.42%
Licences
and taxes 2,500,000 2,500,000 2,500,000 2,500,000 2,500,000

SG&A 1,571,418,80 2,357,128,20 3,417,835,89 4,784,970,25 6,459,709,84

expenses 3 4 6 5 4
%/Sales 7% 7% 7% 7% 7%
Interest
expenses 38,400,000 33,280,000 27,688,960 14,398,259 -
Payment
loan 100,000,000 100,000,000 200,000,000 200,000,000 -
%
Interest
rate 6.40% 6.66% 6.92% 7.20% 7.49%
Loan
amount 600,000,000 500,000,000 400,000,000 200,000,000
Depreciati
on 110,000,000 110,000,000 110,000,000 110,000,000 110,000,000
Other
expenses - - - - -
 %/Sales

Profit 8,183,043,21 7,834,010,32 12,220,538,6 18,009,585,6 25,299,537,6

before tax 9 6 12 86 23

Table 2.Expected revenue

The expected revenue in 2024 is VND 22,448,840,040. From there we will forecast
revenue for the next 4 years, and calculate revenue as a percentage. For 2025, revenue
will increase by at least 50%, because when we first invested, we could not operate
well, capacity was not guaranteed, there was no specific strategy. For subsequent
years, this percentage will decrease year by year, in the following order: 2026 (45%),
2027 (40%), 2028 (35%). And the annual revenue will be calculated as follows, taking
the previous year's revenue and multiplying it by (1+% of that year's growth) to get
that year's revenue. Revenue for the years is as follows:
In 2024: VND 22,448,840,040
2025: Cell 2025 = 22,448,840,040 X (1+50%) = 33,673,260,060 VND
2026: Cell 2026 = 33,673,260,060 X (1+ 45%) = 48,826,227,087 VND
2027: Cell 2027 = 48,826,227,087 X (1+ 40%) = 68,356,717,922 VND
2028: Cell 2028 = 68,356,717,922 X (1+ 35%) = 92,281,569,194 VND

After calculating revenue, we will continue to forecast the cost of goods sold. For the
clothing store business, our cost price is 45% of our revenue. If this rate is reached, it
will be easy to bring profit. bring profit to the store, but also ensure the quality of
products at the store.
In terms of rent, the store area is about 40m2. According to my research, the price of
1m2 of land in Binh Duong area is quite good compared to other jaw gates, the price
is about 400,000 VND/m2, estimated in 1 year. lost about 1,680,000,000 cash.
Next comes the salary cost, which will be about 4,500,000 VND for 1 employee to
work there, and I hired 7 employees and was divided: 1 manager, 4 product custodians
and 1 cashier and 1 security guard.
The total annual salary paid to employees in 2024 is VND 378,000,000.
And in subsequent years, I will rely on 2024's ratio to 15% revenue and will apply this
fifth rate to subsequent years. If employees work for a long time, there will be bonuses
for employees, which can be called 13th month salary, the total bonus in 2024 will be
31,500,000 VND for 7 people, the following years will increase according to inflation
at 4%.
With an area of 40m2, for those who are new to business and have such a large area,
there will be 1 more manager, and 1 more manager.
Although 1 manager is a family member, the salary will still be calculated as 2 people
to know more accurately about the cash flow and profit of the shop.
Management salary is about 7,000,000 VND/person.
Total management salary in 2024 and retention for the following years is VND
168,000,000
In Binh Duong, I know that the cost of advertising on platforms and social networks
such as TikTok, Facebook in 1 month is about 7,000,000 VND, the total amount for
2024 is 84,000,000.
Subsequent years are calculated as a 2024 percentage of 3.42%.
All types of coffee shop business documents, for business households, cost 1,500,000
VND/year according to Anpha accountant, which provides the service of issuing
coffee shop business registration certificates. License tax for total revenue of less than
VND 10 billion is VND 1,000,000.
The total amount payable is VND 2,500,000. Management expenses are forecast to be
about 7% of revenue and remain the same for each year.
Initially, as a new business, we decided to borrow VND 600,000,000 from TP Bank,
with an annual interest rate of 6.4%. And we plan to pay within 4 years.
In 2024, we have just started our business and do not have much profit yet, so we will
pay 100,000,000 plus interest of 38,400,000 VND.
The following year, I also paid 100,000,000 plus interest on a loan of 33,280,000
VND.
In 2026, we can pay 200,000,000 plus interest of 27,688,960 VND.
In the past year, we have paid off the remaining debt of 200,000,000 plus interest of
14,398,259.
Finally, there is the annual depreciation expense.
Initially, we spent 400,000,000 VND to invest in buying tables, chairs and related
items.
And add 150,000,000 VND for the cost of decorating the surroundings.
I calculate depreciation for 5 years, so it will cost 110,000,000 VND per year for this
cost.
Aggregate profit for 5 years after the above expenses
In 2024, a loss of VND 1,411,768,649
In 2025, a loss of VND 1,035,193,895
In 2026, a loss of VND 639,807,508
In 2027, it will start to be profitable, reaching VND 5,101,118
Profit in 2028 is VND 993,483,456
Enterprises with losses in the first three years follow a downtrend, profits from the 4th
year can be considered for business and put into operation.

HTTPS://KOFFIS.WIN/CEO-Startup-Triu-Two-Emver-Niguyen-The-Tui-Trang-
Dung-Po-Kyo-Goya-Vana-Ki-Da-Head-Sach-Dean-20210212140401789.Chen
https://mver.win/v/Block/News/San-Dung-Ko-C%A1%BB%A7-9S-Sin-D%A1%Pa
%B9B-Sung%A1%Pa%ATP-D%K6%B0%K6%A1ng-Hi%A1%PP%87U-D
%A1%PP%93-N%A1%PP%A7-Mwer-K%A1%PP%8D-T-Kong-2-T%A1%PP%B7-
D%A1%PP%Up-Shark-Tank-V%A1%BB%87D-Nam
https://cafef.vn/ceo-emwear-tay-mo-khoi-nghiep-vi-khong-co-gi-de-mat-nuoi-giac-
mo-san-xuat-thoi-trang-khong-co-hang-ton-kho-o-viet-nam-2022092108414558.chn