Vintage Elle is an online felt handbag company. Their business plan outlines launching a line of felt tote bags, clutches, crossbodies and laptop bags. They will source manufacturing from a partner in China and distribute products through Amazon. Financial projections estimate $4875 in revenue the first year, growing to $9355 by year 5, with net incomes of $2643 and $5942 respectively. The plan also includes sections on marketing, operations, social responsibility and implementation.

1. Business Plan of Vintage Elle
- An online handbag company

2. Table of Contents
• The Company
• Company Analysis
• Meet The Team
• Industry Overview
• Competitive Analysis – SWOT & Porter’s 5 forces
• Products
• Marketing Plan
• Operational Plan
• Corporate Social Responsibility
• Financial Plan
• Implementation Plan
• References

3. The
Company
• Vintage Elle, first of its kind, is an
online felt handbag company
• Vintage means “classic”, Elle means
“refined luxury”
• Our handbags reflect the company’s
name – classy, elegant and fashion-
centric
• A golden SWAN as our brand logo
• Partnered with Yiwu Sinohood Crafts
for manufacturing and Amazon for
distribution and selling

4. Company Analysis
• Objectives
Develop a brand player in the felt market
Establish our image as eco-friendly company
Inspire people to look beyond leather
Achieve sales target and become profitable entity
• Mission
Our Mission is being a people-oriented, environment-friendly company which meets
the demands of customers perfectly, rises to their expectations and constantly produces
high quality products.
• Vision
Our Vision is to be the biggest handbag brand name company which ensures
innovative and luxury bags that would set trends in the industry.
• Value Proposition
“We aim to manufacture designer felt handbags as a luxury symbol.
For environmentally conscious customers”.

5. Industry Overview
• Fortune Business Insights projects global
market value was USD 47.57 billion in
2020
• Worldwide handbag market expected to
reach USD 67.9 billion by 2025
• Expanding at a CAGR of 5.4% throughout
2019-2025
• Handbag market primarily dominated by
Europe and North America
• North American market share $10.34
billion USD in 2020
• Tote bag highest in demand with a share
of 41.7% in revenue
• Rise in female workforce globally
increases the demand

6. Competitive
Analysis
The key players in the Global Luxury Handbag Market are Coach, Louis
Vuitton, Gucci, Prada, Fendi, Calvin Klein, Michel Kors, Aldo. It can be
seen that V.Elle has the advantage to compete with all the brands as it has
lower price than them. Aldo competes with V. Elle in both pricing and
versatility. In short, to have an overall competitive advantage V. Elle will
have to invest in product versatility.

7. Competitive Analysis - SWOT

8. Competitive Analysis – Porter’s Five Forces

9. Products
• Tote Bags – Office appropriate, laptop-
friendly, spacious bag for women: $59.99
• Clutch Bag – Stylish felt bag with magnetic
clasp made up of wool felt: $29.99
• Cross bag – Made up of light weighted
wool and polyester felt with metal chain
strap for everyday look: $44.99
• Men’s laptop bag – Diamond grey laptop
bag made up of wool felt, classic design
for professional men: $34.99

10. Marketing Plan –
Customer Analysis
• WHO: The female of age group ranging 15-64 years is the main consumer of the
handbags market. Currently the North American market is our main domain which
is expected to reach $67.9 billion USD by 2025 but as we have an advantage of
using an international online selling platform, we expect to expand our market to
Europe and Asia as well.
• WHAT: Our target customers have a household income of $50,000 or more.
• WHY NOT: Many customers love leather due to its look and durability. Our
handbags are made up of felt which might not be desirable for some people.
• WHERE: Post covid, ecommerce has surged like never before. Our products can
be purchased on one of the booming online platforms Amazon.
• WHY: “Brands can’t ignore sustainability anymore, not when 88% of consumers
want brands to help them make a difference by being eco-friendly”(Harker, 2021).
It is just a matter of time when people will stop using leather products which come
at the cost of killing animals. Our felt handbags are eco-friendly which will rise as
a new luxury symbol and style icon in future.
• WHEN: Since we are an online company, our presence can be felt only by rigorous
advertisements on social media and ads on Amazon. These promotions will help us
in reaching out to as many people as possible. These will directly impact our online
sales of handbags.

11. Research
Methodologies
• Data Collection through Online Research
1. Secondary Data: Existing documents like
journals, articles, company’s annual reports,
government websites. Data on current global
handbag market trend from research studies by
Mortar Intelligence, a marketing consulting group
2. Primary Data of Mordor Intelligence:
Market surveys conducted to gather qualitative
insights and opinions. Data gathered to discover
market distribution across various segments,
critical market dynamics. Their modes of primary
research are telephone, email, chat interviews
and survey. This Photo by Unknown Author is licensed under CC BY

12. Market
Segmentation
Psychographic
Demographic
Behavioral
Geographical

13. Advertising and
Promotion
• Advertising with Sponsored Ads
on Amazon
• Advertising on social media – FB,
Insta, Twitter, Snapchat
• Amazon Brand Analytics – search
optimization search
• Amazon Vine – power of reviews

14. Operation Strategies
• Production at Yiwu Sinohood Crafts
1. Supply Chain Team
2. Production Planning
3. Production Control
4. Quality Control
• Distribution – Fulfillment by Amazon
1. Products should be e-commerce ready when they arrive.
E-commerce ready means products are correctly
prepped, labeled, and packed for safe and secure
shipping.
2. Since Amazon's receiving systems and catalogs are
barcode-driven, each unit will need an Amazon product
label so that the units can be associated with our
account.
3. We will be using the Manufacturer's barcode for our
handbags.
4. We will select the FBA Prep Service of Amazon so that
Amazon packages all the handbags individually in their
fulfillment center.

17. Corporate Social Responsibility
• Use of Environmentally friendly
materials
• Minimizes packaging waste during
delivery
• Use cardboard as packaging
materials
• Replace styliform with molded
fiber as insulation material
• Volunteer plan
• Organize clothes donation events for
families in need.
• Recruit local high school volunteers
with rewards of scholarship plans and
work experiences.
• Give away outdated manufactured
products for unaffordable households
during donation events.
This Photo by Unknown Author is licensed under CC BY

18. Financial Plan – Start up Costs
Start Up Costs Amount
Sinohood Crafts Sourcing Fee $200
Material cost $1000
Manufacturing cost $1000
Selling fee on amazon annually $480
FBA storage fees annually $130
Amazon FBA labelling cost total $60
Fulfillment fee per unit $3
Sponsoring ads on Amazon $0.80/click
Categorial referral fee 15% of sale price
Trademark registration fee $336.50

19. Vintage Elle
Statement of Income
2022 2023 2024 2025 2026
Revenue 4875 6275 7900 8945 9355
Cost of goods sold 1100 1450 1800 2020 2130
Gross profit 3775 4825 6100 6925 7225
Operating expenses
Advertising 500 550 600 650 700
Amazon fee 480 480 480 480 480
FBA storage 130 130 130 130 130
FBA fee on sold items 330 435 540 606 639
Referral fee 731.25 941.25 1185 1341.75 1403.25
FBA label 60 60 30 60 60
Total operating expenses 2231.25 2596.25 2965 3267.75 3412.25
Net Income 2643.75 3678.75 4935 5677.25 5942.75

20. Cost structure
Variable Costs Tote Clutch Crossbody Leather bag Total
Sinohood sourcing fee 50 50 50 50 $200
Material cost 250 250 250 250 $1000
Manufacturing cost 250 250 250 250 $1000
FBA labelling cost 15 15 15 15 $60
FBA storage fee 32.5 32.5 32.5 32.5 $130
Advertising fee at Amazon 125 125 125 125 $500
Categorial referral fee 315 90 168.75 157.5 $731.25
Fulfilment by Amazon (FBA)
fee
75 75 75 75 $300
Fixed Costs
Selling fee on Amazon 120 120 120 120 $480

21. Financial Summary
Sales estimate project revenues of approximately
$4875 in the first year, and $9,355 by year 2026.
The company is estimated to have a gross profit of
$7225 by year 2026. This company was started
with an initial investment of $5000 by four
partners, each contributing $1250 CAD.
We have plans to extend our product lines. As the
company becomes profitable, we will be looking
into getting more investors to expand our business
in future.

23. Acknowledgement
I would like to express my gratitude to Jeevan Teja, Senior Business Development Executive of Mordor Intelligence who agreed to share some details on the
latest trends of global handbag industry.
Disclaimer
All the images shown in the presentation are for display purposes only. No other uses are intended. We do not have any copyrights.
References
Anderson, Charles & Johnson (2003). The impressive psychology paper. Chicago: Lucerne Publishing.
Market Research Report.(2021). The North America handbag market Fortune Business Insights. Publishing.
Prabhu. (2015). Men vs Women : Shopping Behaviour and Buying Habits https://www.j2store.org/blog/digital-marketing/men-vs-women-shopping-behaviour-and-buying-habits.html
Smith, M. (2001). Writing a successful paper. The Trey Research Monthly, 53, 149-150.Statista. (2021). Handbags. https://www.statista.com/outlook/cmo/accessories/luggage-
bags/handbags/worldwide
Purcell, L. (2020, February 6). Felt bag - Tutorial. BERNINA Blog. Retrieved September 11, 2021, from https://blog.bernina.com/en/2019/02/felt-bag-tutorial.
Amazon. (n.d.). The beginner's guide to selling on Amazon. media-amazon.com. Retrieved September 11, 2021, from https://m.media-
amazon.com/images/G/01/sell/guides/Beginners-Guide-to-Selling-on-Amazon.pdf.
Wholesale handbags from china handbags manufacturers. Best Sourcing Agent in China for Your Business. (n.d.). Retrieved September 11, 2021, from
https://leelinesourcing.com/wholesale-handbags-from-china/.
Angelina. (2015, September 8). The lifecycle of A Handbag: Designer HANDBAG blog - RIONI ®. Rioni. Retrieved September 11, 2021, from
https://www.rioni.com/blog/designer-purses-deals/the-lifecycle-of-a-handbag/.
Halton, C. (2021, May 19). Kanban definition. Investopedia. Retrieved September 11, 2021, from https://www.investopedia.com/terms/k/kanban.asp.
Handbag+accessories-Handbag+accessories manufacturers, suppliers and Exporters on Alibaba.comBag parts & accessories. (n.d.). Retrieved September 11, 2021, from
https://www.alibaba.com/trade
Dayton, H. (2021, January 4). Resources for bag making hardware. Little Stitch Studio. Retrieved September 12, 2021, from
https://www.littlestitchstudionorfolk.com/blog/2020/12/18/resources-for-bag-making-hardware-and-tools.