PZ - Pooja Zaveri


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A complete Fashion Business Plan. Designed & owned by Pooja Zaveri.

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PZ - Pooja Zaveri

  1. 2. BRAND STORY 1
  2. 3. BRAND STORY <ul><li>Country of origin. </li></ul><ul><li>Yarn and Textile family business for over 30 years. </li></ul><ul><li>My fashion idol – my mom. </li></ul><ul><li>The traditional Sari – generational influence. </li></ul><ul><li>Respect the Indian heritage. </li></ul><ul><li>Growth of Indian culture. </li></ul><ul><li>Modern, yet traditional lifestyle. </li></ul><ul><li>Indian restaurants and hookah bars in San Francisco. </li></ul><ul><li>Western style of dresses with a touch of an Indian element. </li></ul>
  4. 5. <ul><li>COUNTRY PROFILE </li></ul>- United States of America <ul><li>Third most populous country globally with a population of 309,892,013. </li></ul><ul><li>50.7% are females, which makes it 157,115,251 females. </li></ul><ul><li>34.5% of females are between 20 – 45 years. </li></ul><ul><li>It has a very urbanized population, with 81% residing in cities and suburbs. </li></ul><ul><li>The national median age of females is 36.7 years. </li></ul><ul><li>Most powerful, largest and technologically, the most advanced economy in the world. </li></ul><ul><li>‘ Consumer-driven’ economy. </li></ul><ul><li>Increase in Asian, Indian and Hispanic population since 2000. </li></ul>
  5. 6. ECONOMIC OVERVIEW <ul><li>Consumer spending accelerated by 4.1%. </li></ul><ul><li>Real final sales increased 6.7% in the 4 th quarter of 2010. </li></ul><ul><li>3.1% increase in real GDP in the 4 th quarter. </li></ul><ul><li>Corporate profits rose 2.3% in the 4 th quarter. </li></ul><ul><li>Inventory investment decreased by $114.8 billion, reflecting a smaller accumulation. </li></ul>According to Bureau of Economic Analysis (BEA) on March 25, 2011 <ul><li>Unemployment rate will decline gradually through 2013. </li></ul><ul><li>Personal income increased by 0.3% ($36.0 billion) in February 2011. </li></ul><ul><li>Personal savings rate of disposable income raised to 5.8% in February 2011. </li></ul><ul><li>Consumer confidence index rose to 2.1% in February 2011. </li></ul>United States GDP Growth Rate Personal Income Chart
  6. 7. <ul><li>INDUSTRY ANALYSIS </li></ul>- Apparel &Fashion <ul><li>National Brands – 16% Other brands – 84% </li></ul><ul><li>Specialty stores & Boutiques account for 23%. </li></ul><ul><li>Consumer demand, shopping patterns and spending power influences most trends in apparel businesses. </li></ul><ul><li>Expected industry TRENDS for 2011 - Sustainability, Social Media & Globalization. </li></ul><ul><li>‘ GREEN’ factor still remains a huge competitive advantage. </li></ul><ul><li>Focus will shift to the quality of fabrics. </li></ul><ul><li>25+ year olds - Attractive group for retailers. </li></ul><ul><li>According to NDP Fashion World, women ‘s apparel sales constituted 55% in 2009. </li></ul><ul><li>Per capita expenses on women’s clothing was $615 in 2009. </li></ul><ul><li>Women between 20 - 35 years accounted for 24% of spending on apparel. </li></ul><ul><li>Women over 35 years spend the lion ’s share of retail dollars. </li></ul><ul><li>More season-less clothing to meet consumer needs and buying patterns better. </li></ul><ul><li>The consumer ‘mindset’ has changed to the awareness of necessity to save. </li></ul>
  7. 8. <ul><li>Online sales of apparel and accessories are expected to increase by 4.4% to $37.2 billion by 2012. </li></ul><ul><li>‘ The Future of ONLINE is in OFFLINE’. </li></ul>… continued <ul><li>Based on our research on Facebook, there are about 300,000 women between the ages </li></ul><ul><li>20 -45 years, in San Francisco, CA, as on April 25, 2011. </li></ul>
  8. 9. Specialty stores & Boutiques <ul><li>Small players constitute 70% of the apparel industry. </li></ul><ul><li>Growth of ‘Lifestyle centers’. </li></ul><ul><li>Small players accounted for 31% of annual dollar sales in 2009. </li></ul><ul><li>Maintain in-store presentation, excellent customer service and brand positioning. </li></ul><ul><li>Quality and appearance, along with innovation and personal level of communication. </li></ul>Consumer spending and shopping behavior <ul><li>Conscious and practical spending. </li></ul><ul><li>Consumers will seek out for coupons and reward programs. </li></ul><ul><li>57% of people (full-time employees and students) believe that recession will end by 2012. </li></ul><ul><li>According to www.marketresearch.com , consumers haven’t cut down on ‘green’ spending. They prioritize social responsibility. </li></ul><ul><li>72% of consumers say they will make sacrifices in their spending to support the society. </li></ul>
  9. 10. Fashion forward consumers <ul><li>Three types of consumers – Conservative / traditional, Fashion-forward and Value-driven. </li></ul><ul><li>Fashion-forward consumers constitute 16% of the population. </li></ul><ul><li>FF women spend 2 times as much on apparel than conservative/traditional women. </li></ul><ul><li>FF women spend 3 times as much on apparel than value-driven women. </li></ul><ul><li>FF women account for 32% of the total women’s apparel purchases. </li></ul><ul><li>50% of the group has an average annual income of around $50,000. </li></ul>
  10. 11. Influence of new media on apparel shopping <ul><li>Email Advertising – 30% </li></ul><ul><li>Internet Advertising – 24% </li></ul><ul><li>Word-of mouth – 38% </li></ul><ul><li>Video on cellphone – 4% </li></ul><ul><li>Instant Messaging – 6% </li></ul><ul><li>Text Messaging – 6% </li></ul><ul><li>Blogging – 6% </li></ul>
  11. 12. <ul><li>LOCATION – fillmore district, san francisco, CA </li></ul>San francisco <ul><li>San Francisco is the 12 th most populous city in the US and the 4 th most in California. </li></ul><ul><li>Popular domestic and international tourist destination. </li></ul><ul><li>Small businesses and ‘start-ups’ make up 85% of the city’s establishments. </li></ul><ul><li>Offers some of the best shopping in the world. </li></ul><ul><li>Contemporary boutiques to funky outlandish stores for cosmopolitan population. </li></ul><ul><li>National brands in Union Square as well as exclusive independent boutiques in other neighborhoods such as Fillmore District, Hayes Valley, Haight-Ashbury, and Union Street. </li></ul>
  12. 13. Fillmore District <ul><li>Reflects diversity – family-owned neighborhood with ethnic restaurants of many varieties, sophisticated lounges and jazz clubs. </li></ul><ul><li>‘ Lifestyle center’ - Upscale, approachable, fashionable, elite, urban and comfortable. </li></ul><ul><li>Small independent designer boutiques such as Erica Tanov, Mio and Heidi Says as well as fashion boutiques such as Eileen Fisher and Lilith fresh out of New York, and many more. </li></ul><ul><li>Median age of women is 35.3 years. </li></ul><ul><li>‘ Green’ and ‘organic’ stores. </li></ul>
  13. 14. TARGET CUSTOMER <ul><li>A woman about 25 to 45 years old, graduate, single/married, with an average annual income of about $60,000. </li></ul><ul><li>Loves traveling and exploring places. </li></ul><ul><li>Enjoys and appreciates world cultures. </li></ul><ul><li>Cooking, gardening and wine. </li></ul><ul><li>Confident when it comes to fashion and style. </li></ul><ul><li>Enjoys practicing yoga. </li></ul><ul><li>Floral, eclectic, feminine, sophisticated. </li></ul><ul><li>Active on social networking. </li></ul><ul><li>Loves instrumentals and contemporary world fusion music. </li></ul><ul><li>She is seen shopping with her pet. </li></ul><ul><li>Pursues an active nightlife. </li></ul>
  14. 15. SWOT ANALYSIS strengths weaknesses opportunities threats <ul><li>Indian-western fusion style draped dresses. </li></ul><ul><li>Perfect location for boutique shoppers. </li></ul><ul><li>High-quality, sustainable and eco-friendly fabrics. </li></ul><ul><li>Modern, contemporary interiors. </li></ul><ul><li>Frequently changing window displays to keep it fresh. </li></ul><ul><li>Styling assistance </li></ul><ul><li>Start-up business </li></ul><ul><li>Lack of brand recognition. </li></ul><ul><li>Challenge to attract customers. </li></ul><ul><li>Concentrated product line. </li></ul><ul><li>‘ Lifestyle centers’ are growing in popularity. </li></ul><ul><li>Online shopping. </li></ul><ul><li>Product line extension. </li></ul><ul><li>Open a 2 nd store in Soho, New York. </li></ul><ul><li>Post-recession period. Consumers are still cautious. </li></ul><ul><li>Changes in consumer buying behavior. </li></ul><ul><li>More independent designer boutiques coming up. </li></ul>
  15. 16. COMPETITOR ANALYSIS major competitors Independent designer boutiques around Fillmore District such as:
  16. 17. potential competitors union square as a shopping neighborhood
  17. 18. SURVEY RESULTS Shopping once in 2 weeks loves boutiqu e shopping Eco-conscious 113 people surveyed on facebook 24x7 spends $100 - $300 on a dress Expects styling assistance Annual household income of $75k - $100k 25-35 years old
  18. 19. CORPORATE SOCIAL RESPONSIBILITY <ul><li>PZ will donate 2% of sales to ACA. </li></ul><ul><li>Protects pets, wildlife and endangered </li></ul><ul><li>species. </li></ul><ul><li>Awarded “Best in America” by </li></ul><ul><li>Independent Charities of America. </li></ul>
  20. 21. COMPANY STRUCTURE <ul><li>LOCATION – 2342, Fillmore Street, San Francisco, CA – 94115. </li></ul><ul><li>STORE HOURS – Monday to Saturday - 11am to 7pm. </li></ul><ul><li> Sunday - 11 am to 6pm. </li></ul><ul><li>EMPLOYEES - We will have 1 full-time store manager, 1 part-time sales associate, </li></ul><ul><li>1 accountant, 1 pattern-maker / tailor. </li></ul><ul><li>We will offer an INTERNSHIP program with school credit for students. </li></ul><ul><li>PAYMENT METHODS – Cash, All credit cards including Amex, Traveller’s checks. </li></ul><ul><li>RETURN POLICY – Exchange or Store Credit within 30 days from date of purchase. </li></ul>
  21. 22. COMPETITIVE ADVANTAGE <ul><li>Cross-cultural fashion – western dresses with embellishments. </li></ul><ul><li>LOW cost of inventory for HIGH quality merchandise. </li></ul><ul><li>PZ Look-book. </li></ul><ul><li>Personal styling assistance. </li></ul><ul><li>100% eco-friendly and sustainable fabrics. </li></ul>
  22. 23. MARKETING PLAN 4
  23. 24. MARKETING STRATEGIES <ul><li>3% of our gross annual sales towards marketing. </li></ul><ul><li>Grand opening party </li></ul><ul><li>Strong presence in Social Media sites. </li></ul><ul><li>Website and Blog. </li></ul><ul><li>Mobile presence. </li></ul><ul><li>PZ Family program </li></ul><ul><li>Personal hand-written postcards. </li></ul><ul><li>Frequent changes in visual display. </li></ul><ul><li>Corporate social responsibility. </li></ul><ul><li>Scent marketing. </li></ul><ul><li>PZ Lookbook </li></ul><ul><li>Build relationships with our customers. </li></ul>
  24. 25. LOGO 5
  25. 26. LOGO Colors - Chocolate Brown Font - Zapfino Lime Green <ul><li>BROWN </li></ul><ul><li>Earthy, natural color for traditional </li></ul><ul><li>primitive things. </li></ul><ul><li>Warm, comfortable feeling of home-coming and relaxation. </li></ul><ul><li>In polished form, it seems sophisticated evoking culture and maturity. </li></ul>… reasons for choosing the colors <ul><li>GREEN </li></ul><ul><li>A concept; not just a color. </li></ul><ul><li>Growth, desire to expand or increase. </li></ul><ul><li>Nature, fertility, life, freshness and sustainability. </li></ul><ul><li>Self-respect and well-being. </li></ul>
  26. 27. INTERIORS 6
  27. 28. CONCEPT <ul><li>Aesthetically pleasing, stylish, natural, unfinished WOODEN look. </li></ul><ul><li>Hints of stainless STEEL adds a spark to the matte wood. </li></ul><ul><li>Accents of GREEN adds a fun element. </li></ul><ul><li>Contemporary fluid interiors. </li></ul><ul><li>Concept of fusion – traditional carpet and pieces of decoration. </li></ul>
  28. 29. <ul><li>Parquet flooring. </li></ul><ul><li>2 fitting rooms / 1 storage room </li></ul><ul><li>Round couch in the center of the store over a vintage carpet. </li></ul><ul><li>4 organic shaped mid-floor fixtures for apparel. </li></ul><ul><li>Wall units on primary and secondary walls. </li></ul><ul><li>3-tiered tables to display accessories. </li></ul><ul><li>Cash wrap desk near the entrance. </li></ul><ul><li>Awning façade </li></ul>
  29. 30. MUSIC 7
  30. 31. Acid jazz Light-techno Indian classical lounge aesthetic contemporary fusion Modern electronic club music soft instrumental Midival Punditz Avatars of Dub Mystic Dunes Thievery corporation
  31. 32. PRODUCT PLAN 8
  32. 33. SPRING/SUMMER 2012 <ul><li>Inspired by a traditional dance form of India. </li></ul><ul><li>Brightly colored costumes with embellishments. </li></ul><ul><li>Silhouettes are flared, empire-waist with mandarin collar. </li></ul>Line Concept
  33. 34. Merchandise Layout
  34. 35. Merchandise Layout
  35. 36. FABRICS <ul><li>Eco-friendly & sustainable. </li></ul><ul><li>Comforts mind, body and soul. </li></ul><ul><li>Modal, Bamboo, Viscose Rayon, Silk and their blends. </li></ul><ul><li>MODAL - Resistant to pilling, crease, age, shrinkage and wash. </li></ul><ul><li> Recyclable & Biodegradable. </li></ul><ul><li> Currently the ‘wonder’ fabric. </li></ul><ul><li>BAMBOO – Ability to retain its natural characteristics, keeping it organic. </li></ul><ul><li> Durable, breathable, soft (compared to cashmere) </li></ul><ul><li> Anti-bacterial, anti-fungal, anti-static. </li></ul><ul><li> Natural moisture wicking quality. </li></ul><ul><li> Cooler in summer and warmer in winter. </li></ul><ul><li> Drapes well. </li></ul><ul><li> </li></ul>
  36. 37. PROFILE OF SUPPLIERS <ul><li>Rajvir Industries Limited. </li></ul><ul><li>The Kothari Fabs </li></ul><ul><li> </li></ul>fabric suppliers manufacturer ’ s garment accessories suppliers <ul><li>Emperor International Limited </li></ul><ul><li>Prachi Exports Ltd. </li></ul><ul><li>VGR Impex </li></ul><ul><li>R.K. Enterprises </li></ul><ul><li>Mehta Zippers </li></ul><ul><li> </li></ul>
  37. 38. PRODUCTION TIMELINE SPRING 2012 SUMMER 2012 FALL 2012 WINTER 2012 SPRING 2013 YEAR 2012 Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec                           Research,design & placing order                                                   Sampling, Production & Finishing                                                   Packaging, Shipping & Receive Order                                                   New collection in the boutique                         YEAR 2011 Oct Nov Dec         Research,design & placing order               Sampling, Production & Finishing               Packaging, Shipping & Receive Order               `New collection in the boutique                
  40. 41. FINANCIAL PLAN 9
  41. 42. FINANCIAL SUMMARY <ul><li>Initial Investment - $46,500. </li></ul><ul><li>Funding - Bank Loan </li></ul><ul><li> (re-payment in 5 years) </li></ul><ul><li>Initial Cost of goods and inventory - $13,200 </li></ul><ul><li>3% of sales on marketing activities </li></ul><ul><li>Total sales during the 1 st year - $250,000 – 1 st year </li></ul><ul><li> $265,000 – 2 nd year </li></ul><ul><li> $290,000 – 3 rd year </li></ul><ul><li>Initial turnover rate - 4.6 – 1 st year </li></ul><ul><li> 5.0 – 2 nd year </li></ul><ul><li> 9.0 – 3 rd year </li></ul>
  42. 43. <ul><li>Sales by Quarter – 1 st - $78,000 </li></ul><ul><li> 2 nd $59,000 </li></ul><ul><li> 3 rd $85,000 </li></ul><ul><li> 4 th $88,000 </li></ul><ul><li>Markdowns - 10% </li></ul><ul><li>Shrinkage - 2% </li></ul><ul><li>Average Gross Margin at Cost - 80% </li></ul><ul><li>Average no. of customers/day - 12 to 15 </li></ul><ul><li>Average no. of items sold per day - 5 </li></ul><ul><li>Average sales per day - $660 </li></ul><ul><li>Payment Terms for manufacturers - 50/50 </li></ul><ul><li> vendors - Full amount at the time </li></ul><ul><li> of order. </li></ul><ul><li>PROFIT % - 4.1% </li></ul><ul><li> </li></ul>… continued
  43. 44. <ul><li>ACKNOWLEDGEMENT </li></ul><ul><li>My Family </li></ul><ul><li>Judith Toerge , thesis wrap-up & financial planning </li></ul><ul><li>Sharon Murphy , product sourcing </li></ul><ul><li>Ellen Sears , retail management </li></ul><ul><li>Patti Taylor , trend forecasting & product assortment planning </li></ul><ul><li>Russell Clower , visual merchandising </li></ul><ul><li>Ricardo Sison , marketing research </li></ul>