Report on establishing a clothing line


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Report on establishing a clothing line

  1. 1. ACCA BSC APPLIED ACCOUNTANCY PROJECTS ,MBA UK ,USA ,MS,BBA,InternationalRelations Projects are availableYou can get MBA/BBA projects at low cost. I know all kind of referencing styles and providingprojects to UK and USA students for last 6 years.There is no need to worry about dead lines or plagiarism because I will provide you plagiarismfree work under dead line.Writing Help Benefits:Paper’s genuineness and uniqueness GUARANTEED!The building up of research and writing skills for boosting your academic career to the next level.
  2. 2. sparklessoft@gmail.comwww.sparklessoft.comMobile: 00923004604250skype be.superior1 Report On Establishing a Clothing Line
  3. 3. Table of Contents How To Start A Clothing Line?1.1 Industry Analysis and TrendsIt is very important to analyze the market conditions in order to start a business. Out of total retailstores, 64 % of the stores represent the non durable product stores. The revenues of the industryare approximately 1.3 trillion in dollars. The sales of the durable products are summed up as 757billion dollars.The Guide to Retail Business Planning quotes that there are sales of about $2.34 trillion which are1.5 million more than establishment in the year 1995. The sector of non durable retailers hadgrown in the year 1995. It became the second largest sector in the economy. In the recent era theretail industry has faced a lot of changes. Retail industry is the domain industry of the smallbusinesses in the economy. Small businesses represent the 75 % of retail stores. The discountstores have grown to a great extent in the recent past. Some industry analysts say that the discountstores have 3 times. The retail store like Wal-Mart is responsible for generating 1 job out of 16new vacancies in the U.S. The retail customers of this era are much changed than the retailcustomers of the last decade. The perceptions, behaviors and attitudes of customers are muchchanged. It is need of the day to make new strategies for the businesses to deal with the newchanges of he customers’ behaviors.1.2 Competition and Buying Patterns
  4. 4. Boston Rags is located in a market where a number of top businesses are operating. The traffic inthe market varies the whole day. At the times of lunch and dinners the traffic at the site becomeshigh. 20moles away is the competitor’s store which is present in the Hartford Valley Mall. TheArbitron, Spring 2000s provides the details of customer spending which is given below:Spending on the Womens and Girls Clothing:  $449.4 Thousand each Month  $103.7 Thousand each Week  $14.8 Thousand each Day  $1,477 each Hour (ten-hour business day) Spending on the Mens and Boys Clothing  $323.4 Thousand each Month  $74.6 Thousand each Week  $10.6 Thousand each Day  $1063 each Hour (ten-hour business day)1.3 Guide to start a clothing line1.3.1 Define Your CustomerIt is very important for marketers to know about the needs and wants of their customers.Companies design products for the customers so they should know what their customers need.Needs of the customers should be the main concern of a business. Businesses are prioritizing thepreferences of customers. It is also very important that companies should not just rely on thepresent needs of the customer but they should continuously monitor the changes in the needs ofcustomers. T cater the changes in customers behavior companies should design new productstargeting the new needs of customers. It is also important that businesses must predict the futureneeds of customers so that they can design products on timely basis.Following are some characteristic that define the customers of a specific business: 1. Geography of the customers
  5. 5. It is very important to know that where do customers live. People living in different places have different needs according to the temperatures, climate and economic conditions of their towns. 2. Demographics of customers It is very important to know about the customers. Age, gender, profession, and social class of customers must be known. Demographics are very important in segmenting the market. Needs of people of different ages, gender and of different social classes are different. 3. Shopping Behavior It is also important to know that from where customers do shopping. People living in backward areas and people living in urban areas have different shopping behaviors. It is important to know about the economic conditions of customers. What type of products are more appealing to customer, what is preference of customer, in which specific condition how do customers behave, all these questions are important defining dimensions of customers.1.3.2 CompetitionTo start a new business it is very important to analyze the market competitiveness. To start anapparel line competitiveness of market must be checked. It is important to know that kind ofprints are already available in the market. What types of lines are successful and what type oflines have failed and why they have failed in the market. To analyze the market conditionsdifferent tools are adopted. Present and future market conditions both are equally important. Toget a reasonable market share it is very important to analyze the competitiveness of the market.Some criteria of the analysis of market are given below:• Defining CompetitorsThe first step is to define the competitors of business. Competitors must be defined in theappropriate scenario. It he competitors are defined in a broad term or if they are defined in anarrow tern, both definitions can cause the damage to the effectiveness of the business. In themarket some businesses offer products that focus on a large audience and some businesses focus
  6. 6. on small audience. For a new business some of the already present businesses have much largerimage and some already existing businesses have direct competition with them. After defining thecompetitors in terms of size of business the next step is to analyze the potential threats in thatsector of market. For small scale businesses it is essential to analyze the present competition aswell as future competition in the market.Oren Harari has said that the capital flows in the businesses on 24 hours basis and competitors’bravery both determine that in which direction the competition will turn. This factor also dropsthe barriers of entry in a business.• Analysis of Competitor Strengths and WeaknessesAfter defining the customers of the company the next step of competitive analysis is to determinethe strengths and weaknesses of the business competitors. It has been observed in many cases thatsmall businesses focus on the quality of the product or services. It is important to determine thequality standards of competitors but merely determining the quality of products or services is notnecessary. For a competitive analysis of the market the quality of product or service is a smallsection of the whole process. It has been said that the preferences of the customers, prices andquality of products or services are the half part of the whole story of analyzing the competition.The other half part of the story of competitive analysis is to determine the strengths andweaknesses of the competitors. The companies that are financially strong and have strong andcompetitive human resources and other assets will be the strong competitors of the future.In analyzing the strengths and weaknesses of the competitors it is important to consider themarketing efforts, customer services, production management and operations of the competitors.The areas which are not fulfilled by the competitors effectively are of important considerations.Along with strengths of the competitors, weaknesses of the competitors must be considered.It is also important to consider that what strengths and weaknesses of the business are moreimportant and what strengths and weaknesses of the businesses are less important. David Aakerhas said that businesses must focus on the following areas in order to conduct a successfulcompetitive analysis: 1. Study about the factors that contribute towards the success or failure of competitors 2. Analyze the major factors that can motivate the customers of firm
  7. 7. 3. Determine the major cost of the business 4. Study the major barriers that hinder the movement of a business with in an industry• Analysis Of Internal Strengths And WeaknessesIt is also very important to analyze the internal strengths and weaknesses of a business in order toconduct the competitive analysis of the market. In what areas company can achieve more successand in which sector company will face some problems are important considerations ofcompetitive analysis. Following are some considerations for analyzing the internal strengths andweaknesses of business: 1. Is the human resource of business competitive and talented? 2. Are sales persons of the company equipped with competitive skills? 3. Does the company have efficient inventory management? 4. Are the operations of the company efficient?After determining the strengths and weaknesses of the business company can focus on improvingits position in the market. Company can focus on the ways that can use the strengths of thecompany effectively and it can also focus on the ways of improving its weaknesses.1.3.3 Marketing PlanAfter defining the customers of business company should focus on determining the price ofproducts or services that will be charged on the customers. Where will be the advertisement ofproducts of company done? What will be budget of the whole business? Where will be theproducts sold? What will be the margin on products? What will be the cost? Al these questionsare answered in the marketing plan of a business. It is very important to consider that high qualityof products is not the guarantee of success of the business but it is the marketing of products thatmakes products successful in the market.1.3.4 Start-up Cost
  8. 8. To start a business cost must be estimated. It is very costly to introduce new apparel lines in themarket so the cost should be estimated very carefully. Following points must be considered inestimating the cost of the new apparel lines:• What will be the traveling expenses involved in promoting the new apparel lines?• What kind of sales force will be hired? What will be the cost of hiring them?• What will be the cost in the production possesses of introducing new apparel lines?• What will be the cost of making prototypes of the business?Small scale apparel lines having customized strategy are very expensive to start. To reduce thecosts of the production alternatives of the fabrics must be considered. It is important to considerthat where will be the lines introduced in an expensive market like Italy or in a less expensivemarket like China.1.3.5 FinancingAt this stage of introducing the apparel lines competitors have been analyzed in terms of theirstrengths and weaknesses, costs have been estimated and marketing plan has been analyzed. Thenext step is to determine the ways of financing the project. Following rae some sources offinancing a new business: • Savings of the entrepreneurs • Loans from relatives and friends • Taking loans by mortgaging the personal assets • Searching investors from the market • Taking loams from banks1.3.6 Know Your Launch Date
  9. 9. To introduce new products or businesses it is very important to consider the timings of theintroduction of businesses. In case of clothing business seasons play very crucial role. Buyers buyspecific types of clothes on specific times. To start a new business it is important to observe thepast events on which some business lunches proved to be successful and the events on whichbusiness launches have proved to failure. Special events and seasons are very important in thelaunch of new apparel lines.1.3.7 Write Business PlanThis is the stage where all the important considerations have been made. At this stage businessplan should be written down. Writing a business plan increases the probability of success of abusiness. Business plan must be focused. It should provide all the details of the business. Forevery business writing of business plan is very important but if the business owner wants tosecure the financial position of the business then writing the business plan becomes highlyimportant.It is very important to deliver the business idea in an effective way. It must be written inpersuasive language and it must present a clear picture of the business. Business idea must beresearched and it should be made feasible.1.4 Success Story of Zara Clothing BrandZara is the retail unit which is based in Spain. Inditex SA is the parent company of Zara. It is verysuccessful retailer in the Spain and all over the world. It operates in 81 countries of the world andhas 1500 stores. The company operates in clothing industry. It offers women clothing andaccessories with unique styles and at competitive prices. Zara had started in 1975. It is veryastonishing to quote that Zara does not uses advertisement for the promotion of products. Itfocuses on the locations of the stores to attract customers.Zara has vertically integrated itself. The success of Zara owes a great deal to the verticalintegration and its art of designing the products in a very short time. Company uses the sales staffin order to analyze the needs, trends and wants of the customers. After analyzing the needs andtrends of the customers company produces products for the customers and introduces largerquantities in the market. It dispatches the new products in the market two times in one week.
  10. 10. The success of the company depends on the following three factors: • Short delivery times in delivering the stylish clothes • Limited supply • Large quantity of designsIt is on the credit of Zara that it launches more than 12000 designs every year. Like othercompanies in the clothing business company does not use the low cost labor but it uses 80 % ofits labor from Spain and other countries in the Europe that are high labor cost countries. Zarastores are designed in very stylish way. When customers walk in the stores they feel happy.Fashion products of Zara are unique that cannot be found on the other stores of market. Thestyles of Zara are not seen in the other stress of the market.Very significant resource of the Zara is its staff. All the staff members and management team ofZara is engaged in sending orders and in facilitating the company by providing insights aboutstyles. Staff of Zara uses technological means to identify the trends of customers. To track theinformation staff uses modern computers customized with hand held operations. The goods ofZara move across 2000 kilometers by some underground tracks. It is ensured that the orders of thecompany are delivered to the specified destinations. 60000 clothing items of the company aredistributed in one hour by optical scanners.The fashion products are delivered to the customers when the season of fashion is very hot. Theproducts are delivered to the customers at very low prices as compared to the prices of otherstores in the market. Along with women clothing Zara sell men clothing and accessories. It offersproducts with distinguishing features. It has also started “Home Store”. There are now 284 homestores of the company across the world. Its stores are present in the major markets of theworld.The parent company of the Zara is engaged in the production of other clothing brands likeMassimo, Oysho, and Berska.1.5 Success Story of VAN SCHAACKVan Schaack is a store that focuses on the males. It focuses on the males of urban areas with ageranging from 25 tears to 50 years. The target market of Van Schaack consists of the males thatare conscious of fashion and have youthful masculine image. The customers of the Van Schaackwork out in gyms to keep them fit. This attribute of customer is also included in the products of
  11. 11. Van Schaack. The core customers of the company remain fit, have youthful image, keepthemselves active, have casual lifestyles and like sports. The customers of company love to go toparties with friends. To carry on all these activities customers of the company want fashionableclothes. The need of the customers is fulfilled by Van Schaack.Van Schaack focuses on fulfilling the needs of its customers. Prompts of the company are takenfrom other successful men stores like Men Tour and Mike Kaplan. The company takes cues fromthese big stores. From these two big stores the best thins are borrowed. From Men Tour lifestyleof customers is borrowed. From Mike Kaplan marketing is borrowed. The strength of Men Tourlies in its operations of catalogue.The success of Van Schaack depends on its five years business plan. The core customers of thecompany live in the urban areas and business plan considers it. The company is focusing onexpansion of its stores in urban areas. The company is foreseeing to expand its business to betterlines of sports wear, active wear and cosmetics in the environment which is quite stylish.Van Schaack works in an environment that is very open. Main competitor of the company is ManTour. The other competitors of the company are the stores that offer sports wears at moderateprices like Runway.s Runway is a specialty store. Other competition of the company comes fromdepartmental stores like Crystal, Wolfgang, and Bachman.Van Schaack is thinking to mold its approach. It is focusing on providing stylish merchandise ofsports wear. The colors, styles and outlook of the products will be more fashionable. The outlookof the sportswear of company will resemble to the products of Mike Kaplan. The companybelieves that more masculine products appeal to the males. It is also focusing on the better qualityof products. The company is trying to incorporate the features in products that are missing in thecompetitor’s products.1.6 A sample business plan for starting a clothing line1.6.1 Introduction of the Clothing lineThe name selected for a new business line is J&Z. The line will serve the customers of all agesby providing clothes. The line will consider the needs, tastes, trends and ideas of the customers.The stores of company will have the clothes pf customers of all ages. Te stores will be the onestop stores from where customers of all ages can shop their clothes. The aim of the store is toprovide clothes to the customers of all ages and also to provide accessories like bags, glasses,
  12. 12. jewelry and other fashion accessories. Along with products company also focuses on providingservices to the customers that can satisfy them. The distribution of products will not be done onlybe means of physical distributions but also through e-commerce. By doing business via e-Commerce the company can reach customers at large distances. Company can have access to themass market without affecting the advertisement cost. By doing e- commerce business companycan focus on delivering products to larger number of customers without opening new stores.To start the business financial plan of the business has been designed that composes of allocationof resources and capital budgeting. It is very important to manage the finances of the companywhen the business has been started. It is hoped that the J&Z will satisfy the needs of thecustomers. J&Z is planning to target customers by providing them high quality products andquality customer services. Company aims at providing new trends to the customers by deliveringproducts through e- Commerce.1.6.2 Objectives of J&Z Clothing LineTo start a business the aims and objectives are designed. It is very important to design theobjectives of the company that are clear and achievable. Objectives of the company are made toachieve the long term goals of the company. Following are the objectives of the company J&Z: • Providing customer satisfaction to all customers of all ages by providing them stylish clothes of new trends and ideas. • Launching stores in the main market of the city so that company can reah a large number of customers • Providing jobs to the people in fashion industry • Attaining profits in the first year of opening stores that would lead to the success of stores • Achieving high customer loyalty by providing them high quality products. Cost of creating new customers is quite high. so company will focus of retaining present customers • Creating high image of store in the market by providing high quality. J&Z focuses on all age groups so company aims at establishing one stop stores. • Company aims at providing products with distinguishing features.
  13. 13. • To become a trend setter in the market by launching new cloth lines with new styles • To establish a strong relations with the customers in order to create loyalty • Company aims at raising its voice for saving animals. It also aims to raise charities • To develop a strategy that focuses on the growth of business across the world • Clothes will be sold at different prices ranging from low to high1.6.3 Mission of the J&S Clothing StoreMission of the business is very important to design. The mission of J&Z is to make customersexperimenting on new styles. The mission of the company is to serve its customer by providingthem convenient shopping experience and by providing them new trends of clothes. Many modesare used for selling products of the company so it makes convenience for the customers to shopfrom any location.Customers will experience the new ideas of the company at competitive prices. The companytargets customers of all ages with differentiating offers. Company wants that customer willrecognize it when they go in the market for shopping. All these things must be provided with highquality. There must be financial soundness in the business as well. Company should make profitsfor the investors. The products of the company should reflect the lifestyles and high quality.The company also aims at raising it voice for the different communities. In magazines,newspapers and Journals Company will raise its voice. Company will also establish relations withthe different communities so that the company can grow faster.The company has mission to be an environment friendly company. It assures its customers that itwill obey all laws regarding safety of environment and animals. Company will not violate theanimals or other environmental factors while extracting raw materials for the products.The clothing industry is very saturated at this time. The mission of the company is to create jobsfor the people in the fashion industry and help the economy.1.6.4 Keys to Success
  14. 14. The aim of the company is to create a mark in the industry. Company has recognized somesuccessful factors for itself. Company has to manage its operations and resources effectively sothat it can lead to success. The company has to manage the operations so that the investors can gethigher rates of returns.There must be reasonable financial resources for the company so that it can succeed in the market.There must be enough financial resources that can fulfill the needs of the company in the longrun. There must be some back resources of the company that can help the company in difficulttimes.There would be an appropriate business policy of the company that targets at a managing thestores of the company. There must be a proper planning about the schedules of introducing newproducts. There must also be a proper policy designed for offering the discounts on differentproducts.In order to become efficient and to manage the liquidity of the company no credit shopping willbe offered to the customers. The company is a manufacturing and retail firm and it will not grantcredit to its customers so that credit efficiency can be achieved.There must be contingency planning about critical situations. Company should respond to theneeds of the customers in real time. There must be up to data planning of the company regardingdifferent issues. Customers of the company will be given different discounts and promotions.The company will conduct different researches in order to analyze the trends of the market and toanalyze the new needs of customers. There will be questionnaire survey in order to find theperceptions of customers about the company’s products. The survey will b conducted physicallyand through online. Suggestions from the customers will be appreciated and will be consideredfor improving the business. By analyzing the needs of customers company can design productsfor the customers on timely basis and this can provide a competitive edge for the company.Company will have a clear picture of understanding of the market trends. The company shouldrespond to the environmental changes in real time. The success of companies depends on how thecompany achieves the objectives in a changing environment. This can be achieved if companyadapts to the changing environment.The success of the company also depends on the pricing strategies. The company will offerproducts to the customers of different ages at reasonable prices. There will be range of pricesavailable to the customers.
  15. 15. Company focuses on providing satisfaction to the customers. The products and stores aredesigned in such a way that customers feel a sense of satisfaction after purchasing from thecompany. There are number of choices offered to the customers. A range of products at differentprices are available. The company has to create an atmosphere in the market that has long lastingimpact on the customers and when customers come back at stores they get satisfied.To achieve the objectives of the company it is very important to make the employees motivated.Motivated employees work for the company with more efforts. Employees of the company aremotivated by providing them higher salaries, flexible working conditions, flexible timings andfreedom of work. Employees will be encouraged to work hard for the company. Trust will beestablished between the company and its employees.1.6.5 Company OwnershipThe will be a retail clothing store having focus on the urban areas. The ownership of the companywill be between two partners. 50% of the shares of company will be in the hands of NancySeymour and 50 % shares will be owned by Joanne Arbor. The business will be apartnership business between these two partners. At the start it will be partnership andafterwards it will become a Liability Corporation.1.6.6 Start-up SummaryTotal start up cost of the business is expected to be $53,743. In this cost fixtures, andequipments are included. In this cost there is inventory of $19000. The investment of owneris $18,299. The additional funds of the business include $35,444.The business will be started in the month of December because at that time the event ofChristmas attracts a number of customers towards stores fro shopping of clothes. Afterestablishment of the business it must be made cyclical because of cyclical demand of clothes.1.6.7 Company Location and FacilitiesThe location of the store will be 423 West Oaks Boulevard, Hartford, Connecticut. The areaof the store will approximately be 2500 square feet. The store will contain two dressingrooms and one common room. There is a large parking place available outside the store. Inthe market a number of businesses are operating. Amongst the hot businesses of the market
  16. 16. the store has been established. It facilitates the store to generate a constant inflow ofcustomers in the stores.1.6.8 Business OperationsThere are a number of clothing stores available in the market. To make them differentiated theremust be some different products in the stores along with clothes that can attract the attention ofcustomers. The products available to the customers include Sweaters, jackets, Suits, jogging suits,jogging tracks, children’s products, dress shirts, sports wear. The timings of the store will be form10A.M to 10P.M. The store will be opened 7 days in week. On Sundays the timings of the storewill be 11:00 A.M. to 8:00 P.M. There will be two employees in the stores who will bepresent in the store for the whole day. They will be awarded with hourly wages. The wagerate of workers is decided to be $6 per hour. In the firs year of business the employees willnot be awarded with the benefits.The items will be purchased from a number of suppliers. The suppliers of the company includeBRG Sportswear, ABX and Mark Zap Clothing. The inventory turnover of the company isestimated to be 8 times in one year. The starting inventory of the company is decided to be$19000 having mark up of 100 percent.Following is the detail of operations of the company: • There will be a layaway of 30 days having 50 % non refundable portion • The policy of exchange will be of 30 days. There will be no refunding of cash. • For return of cheque, $25 will be charged. • There will be permission of taking 2 items in the dressing room in one time. • Credit cards will be accepted. • There will be no dealing in granting credit to the customers.1.6.9 ProductsThere has been increase of the urban dressing just after the increase of the pop trends in the musicindustry.
  17. 17. Boston Rags will focus on selling the products related to hip hop trends of the market. BostonRags decides to carry the products that are simple in designs. With even simple designs theirproducts offer chameleon touch. The products can fit into any kind of arrangement. Mark Zapsays that this type of product has expected sales of about $15 million to $18 million. The sales ofproduct depend on the type of stores. There are new trends in the market that are very simple andeasy to wear. The clothing can be available in the fashion shows and at different festivals.1.6.10 Market SegmentationHartford Chamber of Commerce describes that there are almost 150000 males and about 165000females living in the Hartford County. The total number of people in the country is 315000. Thereare about 186000 people whose ages range from 18 tears to 54 years. There are approximately 76% people in the country whose household income exceeds $15000. The target market of BostonRags is the customers of age ranging from 18 years to 54 years. The target of the company will bethe customers having household income more than $15000 or more than this.1.6.11 Target Market and Program StrategiesNear the stores of the business a new residential development has been done. The prices of housesin the development housing plan are about $100000. There is also campus of CentralConnecticut State University along the store site. All this area has potential customers of thecompany. The customers of the company are employed women and men. To promote theproducts of the company flyers and other documents are used. Some of the marketingstrategies of the company are given below: • Design attractive advertisements to attract customers • Select appropriate publication for promotion • Define a specific goal of advertisement • Involve the customers • Provide information to the buyer • Five appropriate headings on the advertisement to attract customers
  18. 18. • Be specific in message • Provide good offers to the customers • Be a creative player in selecting media for the advertisement1.6.12 Advertising and Promotional StrategyBoston Rags will select the promotions on a very limited scale before targeting a large audience.On a small scale the products will be tested. The tests of products include variations in the offers,changes in the message of the advertisement and promotions. The message will be tested byproviding variations in the text, image and presentation. The testing of the promotions providesearly reaction of the audience. The response of the audience can be checked by the messagesbefore the actual launch of the offer. This can assist the company in making breakeven strategies.The testing of promotions helps in the carrying of successful ideas and it eradicates theunsuccessful ideas of the business. Testing of the business ideas provides help to analyze the cost,profit and response of the market to the offering of the company.The advertisement budget of the company will be decided about 2 to 3 percent of the total sales ofthe company that are averaged to be $5,627 in one month after the start of the business. Theadvertisement budget of the company is based on the cost method. The cost method saysthat a company on advertisement more than it has. Boston Rags decides to increase theamount n its opening.Following steps are considered in order to analyze that the amount spent on the advertisement iseffectively used: • Establish the target markets of the company by defining the customers in appropriate way. Define the customer who will be given the reach of advertisement. • Set a budget on rough basis for the advertisement • Contact the T.V stations and radio stations for the advertisement of products of the company • Speak to the business people and take views of them about broadcasting advertisement • Ask about delivering the products to the audience • Make investigation about the design of commercials
  19. 19. After making a design of the advertisement the cost is estimated. Cost is estimated on the basis oftargeting customers. In the next step the cost is negotiated with the other party. After negotiationmost attractive deal is made through which company can reach a large audience in cost effectiveway. The direct mail campaigns are also launched. The reactions on the mails are also noted. Themails that have effective communication are saved and the reaction is taken on them. In the orderform some stickers having marks of Yes or No are also pasted so that reader may also getinvolved in the campaign. The direct mailing program is maintained by associating it with DirectMarketing Association (DMA).The advertisement is focused on a narrow audience. In the advertisement campaign age ofcustomers, income, social status, location and interests are considered as main concerns of theadvertisement campaign.1.6.13 Strategic AlliancesMs. Seymour and Ms. Arbor who are the partners of J&Z have built some strategic associations inorder to get help in the business. These associations are: • SBA Business Information Center • Community Capital Development Corporation • Hartford Area Investment Fund • BRG Sportswear, Inc. • White Sail • USA 66 • Wonder, Inc. • ABX • Mark Zap Clothing, Inc.1.6.14 RisksThere s a dual risk in to retailers of clothing industry. First the market growth is very slow.Second the demographics and trends of the market change very quickly. There have been somestructural changes in the market. Boston Rags will adjust the strategies of the company with thenew trends. The new marketing techniques will be adopted such as catalogue marketing,electronic mailing, small store and quality customer services. By doing this company can get a
  20. 20. good market position. The owners are contributing equal capital. There is a risk of 34 % in theinvestment of the owners’ money.1.6.15 Important AssumptionsFinancial plan of the company is based on some important assumptions that are listed below: • String economic conditions are assumed in the market rather than recession • It is assumed that there are no changes in the future about clothing styles.References:Retail Clothing Store Business Plan - Executive summary, Company summary, Products, Marketanalysis summary Online Available at: Accessed on 27Jan, 2012
  21. 21. Retail Clothing Store Business Plan - Executive summary, Company summary, Products, Marketanalysis summary Online Available at: Accessed on 27Jan, 2012Retail Clothing Store Business Plan - Executive summary, Company summary, Products, Marketanalysis summary Online Available at: Accessed on 27Jan, 2012Retail Clothing Store Business Plan - Executive summary, Company summary, Products, Marketanalysis summary Online Available at: Accessed on 27Jan, 2012Retail Clothing Store Business Plan - Executive summary, Company summary, Products, Marketanalysis summary Online Available at: Accessed on27 Jan, 2012Retail Clothing Store Business Plan - Executive summary, Company summary, Products, Marketanalysis summary Online Available at: Accessed on 27Jan, 2012Retail Clothing Store Business Plan - Executive summary, Company summary, Products, Marketanalysis summary Online Available at: Accessed on 27Jan, 2012Competitive Analysis - advantage, disadvantages, cost, Elements of competitive analysis OnlineAvailable at: Accessed on 27 Jan, 2012
  22. 22. Competitive Analysis - advantage, disadvantages, cost, Elements of competitive analysis OnlineAvailable at: Accessed on 27 Jan, 2012Mens Clothing Retailer Business Plan - Van schaack principle, the customer, the store,Competitionstrategy Online Available at: Accessed on 27 Jan, 2012 Mens Clothing Retailer Business Plan - Van schaack principle, The customer, The store,Competitionstrategy Online Available at: Accessed on 27 Jan, 2012Retail Clothing Store Business Plan - Executive summary, Company summary, Products, Marketanalysis summary Online Available at: Accessed on 27 Jan, 2012Retail Clothing Store Business Plan - Executive summary, Company summary, Products, Marketanalysis summary Online Available at: Accessed on 27 Jan, 2012