The Business Of Fashion
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The Business of Fashion
Little wear Business; and A Passion………..
Contact Information
MRS.NITHYA A - PROPERITOR MR. SANGEET KUMAR M V - ADVISOR
bof@asia.com
nithya@thebof.in
NO: 9, MKP NIVAS, 5 – RVE LAYOUT.
KANGEYAM ROAD, TIRUPUR
TAMILNADU-641604
http://thebof.wix.com/bof
+91 80569 01777
sangeetkr@gmail.com;
SITE NO: 9, S.F.NO-30, MUDALIPALAYAM VILLAGE.
MUTHANNAMPALAYAM, TIRUPUR
TAMILNADU-641606
https://in.linkedin.com/in/sangeetkr
+91 80569 55577
The Business Of Fashion
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1.0 Executive Summary
Company Profile Summary
Ingenious and technically viable- you can’t engendera quality product without attention to detail. The
BOF team has experienced fashion designers with the ability to engender full apparel and technical
packages for your developing brand.
Full Accommodation Design & Engenderment
Includes
– Initial Consultation
– Fabric/Fit
– Design Studio
– Technical Packages - CAD
– Patterns/Protos - CAD
– Logos/Labels/Trims - TrimLab
– Sales Samples
– Cut Make and Trim - Mass Production
– Packaging and Shipping
They are erudite in full product life cycle, from research through engenderment, ascertaining your
product will get the attention it deserves. To have your men’s, women’s, and children’s apparel and
accessories packages done on trend + on time.
The BOF Engendersan IncipientApproach to Apparel EngendermentIt’sno secret that making it in the
fashion industry as an emerging designer/brand is no facile task. Between sourcing logistics, costs,
engenderment, marketing and sales, launching a line is an astronomically immense endeavor that
requires an abundance of commitment.Auspiciously, because of this, newcomers to the industry are
getting more ingenious,and muchofthis ingenuityis goingtowards making the startup processmore
facile.
BOF offers Apparel & Textile Design, TechnicalDesign, Patternmaking, Packaging, and Manufacturing
Support. We are zealous about optically discerning designers prosper by providing the implements
to avail promote magnification regardless of company size. From initial design to your technical
package, we work with you and avail to guide you through the entire development process.
Our benchmark is to provide our customers expeditious fashion, twice a month we will launch 10
incipient products. Product’s with functional quality, perdurable for Indian conditions. The
BOF ken how the headache of minuscule run engendermentand all the stress that comesalong with it
can sometimes bring you to tears?
The Business Of Fashion
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It’s so arduous. As an incipient brand, it feels like finding a manufacturer who is disposed to work with
your short runs, who doesn’t push you aside when a more sizably voluminous order comes through,
and who doesn’t treat you as if you don’t ken the first thing about this business, is infeasible.
This early stage of the business– production– and the dubiousness and mystification that come with
it, can make you question your decisionto do this at all– it can make you feellike you were crazyto
cerebrate you could ever build a business around doing what you dote.
BOF offer tech pack engenderment, samples, and engenderment runs.
The expertise- BOF is a Master Tailor; BOF has a prosperous tailor shop, storefront, and yoga wear
brand. She’s spent +15 years in this industry and kens it well. The BOF team is composed of expert
seamstresses and designers who ken how to make the highest quality habiliments and appurtenant.
BOF emanates from the designer’s perspective– BOF understands your concerns,questions, and fears
— and therefore does not judge or dismiss you as you make your way through the process.
As Ms. Nithya – Woman entrepreneur and proprietor of BOF verbalized:
“It’s about Fabric + Thread + a Dream. Let’ do this!”
The Business Of Fashion
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Market Research Summary
Designer kids wear market to hit Rs 95K crore by 2016: ASSOCHAM
Rising media exposure,high disposable income of the parents, peerpressure and brand consciousness
among children are driving the growth of kids apparel market in India from the current level of Rs.
72,000 crore to Rs 95,000 crore by 2016, a study says.
This segmentis growing at a compound annual growth rate (CAGR) of about 20 per, finds the study by
apex industry body ASSOCHAM.In recent times, kids fashion has percolated down to Tier-IIand Tier-
III cities like Dehradun, Ludhiana, Pune, Nashik, Indore, Varanasi and many other smaller cities.
“Children have become brand conscious,parents have more money (thanks to double-income families
in the cities) and peerpressure is growing. This is only segment which has not been impacted by the
economiccrisis andpoised for significant growth”,said DS Rabat,SecretaryGeneral, andASSOCHAM.
Earlier, the trend was to buy functional kids’ apparel rather than branded. Children’s garments were
usually purchased from small stores and from street shops, while branded garments were only
bought by very high-income families, the ASSOCHAM paper added.
The kids segment is the most promising in apparel retail in India. Big brands are only now realizing its
true potential. Sports goods major Reebok launchedits kids-wear brand ReebokJunior mid last year.
These brands are developing categories such as infant wear, kids' formal wear, kids' ethnic wear, swim
wear and casual wear, along with a wide range of other merchandise for children, adds the report.
Indian fashion designers are eyeing the premium space. Some have begun retailing their wares for
kids through stores such as Kidology in Delhi, Mumbai and Hyderabad, and in Mumbai.
The big business houses are also examining the opportunity includes Pantaloons’ chain and Mahindra
Retail. Online sites have also launched for shopping branded kids wear and accessories for the age
group between 2-16 years. The portal brings collection from some of the biggest brands in the
categories of apparels and accessories.
Marketing Summary
To date, BOF brand has grown through word of mouth referrals from current customers wearing the
pieces.
BOF’s key marketing strategy will be to expand awareness of the products beyond their existing
customers. To achieve this, BOF has secured an eminent team of employees for designing, product
development, pattern making, fabric, accessories and trim sourcing.
A stand-alone factory for its in-house manufacturing, quality control, lab test & checking and packing-
dispatch. A secondary strategy will be to increases our product range by offering woven fashion
styles, which includes toddler styles like woven girls top, gowns, and frocks. Boy’sstyles like washed
pants, trousers, denim products etc.
BOF’s studio and head office will be located at 10, Lakshmi Apartments’, Kangeyam Road, Tirupur.
Warehouse, manufacturing will be operated from our unit in SIDCO-TEKIC, Mudalipalayam, Tirupur-
India. Woven will be outsourced from Erode and Salem. Business owners insurance, a starting
materials inventory, and an online ecommerce accounting and inventory system will be needed.
The Business Of Fashion
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Additional machinery for CMT, work area of 5000Sq Feet will be incorporated with our new
manufacturing unit getting functional from the early 2016.
Finance Summary
BOF is looking for an investment of INR 30, 00,000 will be required to extend the product range and
provide longer credit period for the clients. INR 30, 00,000 will be needed to revitalize the business
with INR 10, 00,000 coming from previous product sales reinvested by the owner. In the first year of
business BOF is forecasting sales of INR 40, 00,000 (100000 Pcs sales) with estimated expenses of
INR 30, 00,000.
This will produce a running inventory of an additional 50000 Pcs at yearendvalued at INR 10, 00,000.In
year two, BOF estimates an increase in sales of 3% or INR 120000 with expenses increasing by 1% to
INR 40000.
The Business Of Fashion
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2.0 Company Profile
Business Overview
The Business of Fashion is kids wear & fashion accessories manufacturer. Chiefly concentrating on
fashionwear for newborn infant & kids aged up to 8 years old. Exquisitely designed, developed and
manufactured positioned on seasonal, regional fashion drift. Blend Intl fashion stirs & spark into apt
perception for kids wear. The Business of Fashion was established on 04/08/2010
One Crucial Edification about the Fashion Manufacturing Industry!!!
For some of youthis may be a flamboyantly discernible edification. But when you’re endeavoring to do
design and marketing and media outreach and customer accommodation and blogging and
everything else, it can be facile to take engenderment for granted and surmise someone else is
handling it. The thing is no one is ever going to care about your product as much as you do.
“If you invest time in your sewers, then they’ll invest their time in you”.
The Business of Fashion is a both product & service business.
INFANTWEAR TODDLERWEAR KIDS UNDERWEAR KIDS NIGHTWEAR
AGE GROUP – JUST BORN(0
M TO 12 M)
AGE GROUP – 1A M TO 4A
AGE GROUP – JUST BORN (0
M TO 4A)
AGE GROUP – 1A M TO 4A
GENDER – BABYBOY & BABY
GIRL
GENDER – BOY & GIRL GENDER – BOY & GIRL GENDER – BOY & GIRL
Bodysuit (unisex) T-Shirt-Girls Boys Brief Boys Pajama Set
Sleep suit (unisex) Capri-Girls Boys Sleeve less Vest Girls Pajama Set
Mitten (unisex) Blouse-Girls Boys Short Sleeve Vest Boys Shorts Set
Botties (unisex) Voile Top-Girls Girls Panties Girls Shorts Set
Cap (unisex) Skirt-Girls Girls shorty’s
Romper (unisex) Leggings-Girls Girls Body Slip
Dress (baby girl) Jeggings-Girls Girls Spaghetti Slip
Open feet sleep suit
(unisex) Jumpsuit-Girls Girls Capri Tights
Pajama set (unisex) T-shirt-Boy
Short-set (Babyboy) Short-Boy
Denim Pant-Boy
Twill pant-Boy
Dungaree-Boy
Pullover-Boy
Hooded jacket-Boy
The Business Of Fashion
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Company History
THEBUSINESS OFFASHIONwas established in 2003. The Businessof Fashion has gainedan ecumenical
following as an essential daily resource for fashion creative’s, executives and entrepreneurs in over
200 countries. It is frequently described as indispensable, required reading and an addiction. The
Group operates an extensive ecumenical sourcing network covering over 8 offices and over 100
employees in more than 4 economies across North America, Europe and Asia. In integration to the
wide range and variety of consumer products available through its sourcing network, The Business
of Fashion withal leverages its strengths in custom product design and development to provide
consummate ecumenical sourcing solutions for its customers.
Management
Our Expertise gives an edge in sourcing, which enables us to increment our client's profitability &
market reputation. Beinga quality driven company,we lay massive accentuationon the quality of our
garments. Our garments are noted for their quality workmanship. We ascertain that the fabric is of
the finest quality. An abundance of accentuation is laid on the designs, color and vigor of garments.
Distributing fashion business astuteness on emerging designers, disruptive technologies and
ecumenical brands that are making their mark on the industry at a time of unprecedented change.
Style is as consequential as quality is paramount. It’s worth pointing out now that not all fashion
businesses have to operate at the high cessation of luxury, albeit it seems that that is where every
designer wants to be. Recollect,your business conceptneeds to offer a clear proposition of value to
your customer, and that value could be world-class design at more plausible prices. Visually examine
Zara or H&Mor Coachor AmericanApparel and how they have taken clear business conceptions that
sanction them to distribute great fashion to the masses. While it may seem ideal to be a “luxury”
brand, withal recollectthat some of the most influential fashion businesses are onthe highstreet and
in your neighborhood mall, because they dress thousands of people around the world.
Understand their psychology, emotional needs and relationship with habiliments. Visualize all the
aspects of their lives and assess how your business can coalesce into making them even
preponderant.
Location
The Business of Fashion will be manufacturing. The Business of Fashion will be located at Tiruppur,
Tamilnadu, India. Tiruppur is a city in the Kongu Nadu region of the Indian state of Tamil Nadu.
Tiruppur or Tirupur is a city in the Kongu Nadu region of the Indian state of Tamil Nadu.
Tiruppur is a major textile and knit wear hub contributing to 90% of total cotton knit wear exports from
India. The textile industry provides employment to over six lakh people and contributed to exports
worth ₹200 billion (USINR 3.1 billion) in 2014-15.
Tiruppur is also known as the "knitwear capital" of India, accounting for 90% of India's cotton knitwear
export. It has spurred up the textile industry in India for the past three decades.
Tiruppur is located at 11.1075°N 77.3398°E.
The Business Of Fashion
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Goals & Objectives
Our mission is to provide best of the product; at the lowest prices.
BOF offers Apparel & Textile Design, TechnicalDesign, Patternmaking, Packaging, and Manufacturing
Support.
We are zealous about optically discerning designers prosper by providing the implements to avail
promote magnification regardless of company size. From initial design to your technical package, we
work with you and avail to guide you through the entire development process.
Our benchmark is to provide our customers expeditious fashion, twice a month we will launch 10
incipient products.
Vision & Mission
The iconic line from the movie Field of Dreams, “If you build it they will come,” has never been as
subsidiary in the explication of a vocation path like that of the fashion designer. Albeit the
commencements of the design trade require hands-on learning and training, the phrase does not
always hold true when it comes to business.
Generally verbalizing, it is mundane to have some type of quality issues with engenderment.
Customarily these things transpire as a miscommunication betweenthe designerand the contractor,
or by having the contractor follow verbal descriptions rather than an authentic sample.
Here are some suggestions to avail quality control:
•Sewby sample.This isthe most subsidiary thing. Give your contractor an impeccable sample to follow
for engenderment,this sample should be precisely how you would relish your product to look, up to
the fundamental details. Don’t leave anything open for interpretation of the contractor.
• Have your contractor make a top of engenderment(T.O.P) sample that you will approve afore they
commence sewing your consummate engenderment. This way, if they are doing something
erroneous, you’ll catch it and it can still be fine-tuned afore they perpetuate with the whole run.
• If you are located near your contractor, visit them on a conventional substratum throughout the
process, to ascertain everything is going well.
• If there are stages in the process that needextra attention, optically discern if it is possible for you to
engender “check points” where you will require to approve them once they get to this stage and
afore the product is culminated. Ascertain you designate time for them to send the product to you,if
you cannot peregrinate to them.
• Allocate more time for engenderment if possible, always have some extra days on hand (don’t let
your contractor ken this) so you can address unexpected issues when they come up.
• Find a contractor that you like and stick with them.
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• Think about the engenderment process when you are designing your product.
• Keepyour designs consistent; don’t change things all the time if you can evade it. This will confound
your contractor and open doors for mistakes.
BOF is featuringa full fledge testing Lab, a standalone Quality ManagementTeam.A planarity equipped
Sampling Department. Overseenby a Merchandising department and Account Manager to minimize
the Miss communication.
Finding the Right Sample Maker for Your Line
The process of finding the right sample maker for your product can sometimes be a challenging
experience. It can take time to find a sample maker who genuinely understands your vision, fixates
on your injunctive authorizations and does not charge a fortune to engender your samples.
Many more minuscule engenderment houses only want to do engenderment projects. These
engendermenthouseswill often take onsampling, but onlyif theyare assured that an engenderment
order will be coming in.
The expertise - BOF is a Master Tailor; BOF has a prosperous tailor shop, storefront, and yoga wear
brand. She’s spent +15 years in this industry and kens it well. The BOF team is composed of expert
seamstresses and designers who ken how to make the highest quality apparel and appendages.
Engender the Perfect Culminating physically contacts for Your Fashion Accumulation with Trim Lab.
When it comes to engenderingyour products, sourcing all of the consequential pieces(from fabric to
zipper) can be one of the most challenging things you do. You have a conception, you have an
adumbration, and you have an authentically arduous time getting what youwant… Be introduced to
our unique Trim Lab; an incipient resource that has popped up with a mission to avail you get your
hands on the trims and notions that you genuinely want for your amassment.
Legal Structure
The Business of Fashion is a corporation.
BOF will operate as a corporation for the foreseeable future. This is the norm for start-ups in this
industry.
The Business of Fashion is interested in securing not at this time.
The Business Of Fashion
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3.0 Market Research
Industry Profile & Outlook
The Business of Fashion operates primarily in the Fashion/Clothing Design industry.
Albeit the branded kids wear segmenthas recordedhigher magnification in recentyears, it still remains
a largely unbranded market, with products sold mostly through unorganizedretail channels. The low
average lifespan of children’s apparel, a result of the growing height of children, has coerced many
value-conscious parents to hold back on spending on children’s apparel, especially in the medium,
economyand low-terminus of the market.However,market dynamics vary drastically in the premium
and super-premium categories. Brands are a very paramount decision-making criterion for parents
and children in these segments. In fact, some of the designers and retailers have even commenced
catering to the ordinant dictation for children’s bespoke apparel.
Most of the organized players in the kids wear market initially focusedonly on western wearcategories
like denim, shirts, T-shirts, etc. However, brands and organized players have now commenced
foraying into children’s ethnic wear categories and are offering ethnically styled products for kids.
Brands and retailer aforetime catering only to adults have elongated their product lines to include
childrenand are endeavoringto transform themselvesas a consummate family shopping destination.
In this reverence, even international brands have commenced offering children’s apparel. Some
Indian manufacturers who had anteriorly been focusing solely on the export market have
commencedreorienting themselves to meet the growing demand within the country. Consequently
they have come up with their own brands and independent retail operations.
Urban India today is characterized by a nuclear family with double income parents who are inclined to
spend extrahigherportion of their wallets on their children.Consequently the spending on children’s
apparel, with better brand image and quality has received a boost. Concurrently, Indian kids in both
urban and semi-urban India are increasingly exposed to sundry media and are thus cognizant about
brands which cater to them. They have additionally commenced participating actively in purchase
decisions relating to their apparel.
Despite the intriguing magnification story of the kids wear segment,a lot remains to be achievedin this
market. The opportunities within the kids wear market are definitely lucrative, but tapping these
requires well-formulated strategies and high calibers of commitment. Brands and retailers
additionally have to ascertain better perforation beyond urban pockets and cater to the price-
sensitive children’s segments in semi-urban and rural India. Some of the kids wear brands have
struggled in terms of orchestrating store expansions with adequate prudence and analysis and thus
have beencoercedinto rolling back plans or have got entangled in high debt traps and unwarranted
business litigations. Incipient entrants could minimize their own learning curve by learning from the
challenges and roadblocks faced by the early entrants as well as subsisting players. The ability of
brands and retailers to address the categorical requisites of children as well as their parents and to
offer fashion solutions rather than mere products will be critical for their prosperity.
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Local Market
Most companies concur that there is a market for just about every player in India. Home-grown
children's wear brands are banking on their expertise in engenderment,sourcing, and design. "India
is the most immenselycolossal kids' wearmarket in the world. The Indian consumption story is intact.
It's a great opportunity. In the next 10 months, we will hit the market."
Target Market
The Business of Fashion is focused on selling to Consumers (B2C).
Infant & Kid swear aged 0 – 8 (demographics) New born, Household income: INR 5,000 - 25,000
(demographics) Consumers that look to support local businesses and the community (behavior)
Consumers desiring products that provide quality and value as well as reflect the history of Nova
Scotia (psychographic) NRI visiting south India looking for a bulk buying or regular buying to reduce
buying in GCC or abroad.
Keys to Success
Critical factor of success of our collaboration, is to continue offering more product in the scope of
targeted market. Concentrate more on the product development to come up with indigenous
Sophisticated, urban and modern themed apparels
Consistently construct uniqueapparel, which come with the best price. International quality standards.
Apparel designs which is unique and which is having a renowned look and comparable to famous
brands in the Indian and GCC market. Cotton is the most preferred material due to its non-allergic,
comfortable, and easy caring virtues
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4.0 Sales & Marketing
Pricing Strategy – Competitors Comparisons
COMPETITOR
BRAND
TARGET GROUP PRICE RANGE POSITIONING
SHOPPERS STOP 0-16 years Rs 299- Rs 5000 Middle and premium
segment
LILLIPUT 0-11 Years Rs 349- Rs 1799 Middle and premium
segment
RUFF KIDS 4-16 Years Rs 600 onwards Premium segment
ZAPP (RAYMONDS) 0-11 Years Rs 299- Rs 1399 Middle and premium
segment
CATMOSS 0-16 Years Rs 345 onwards Middle and premium
segment
GINI & JONY 0-16 Years Rs 600- Rs 2500+ Premium segment
UNITED COLOURS OF
BENETTON
1-12 Years Rs 999- Rs 3999 Premium segment
WEEKENDER 2-12 Years Rs 349- Rs 1799 Middle and Premium
segment
The Business of Fashion Pricing strategy and Ranges is as follows.
BRAND PRODUCT
RANGE
PRICE RANGE PRODUCT
CLASS
SIZES AVAILABLE
BOF"S Tops 249-999 Regular,
occasional,
party wear
XS/S/M/L/XL/XXL
Girls
Skirts 249-999 Regular,
occasional,
party wear
XS/S/M/L/XL/XXL
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Frocks 249-999 Regular,
occasional,
party wear
XS/S/M/L/XL/XXL
Capris 299-799 Regular XS/S/M/L/XL/XXL
Cotton
Trousers
349-799 Regular S/M/L/XL/XXL
Denim Jeans 699-999 Denims S/M/L/XL/XXL
BOF"S T-Shirts 249-699 Regular,
Occasional
XS/S/M/L/XL/XXL
Boys
Shirts 249-999 Regular,
occasional,
party wear
XS/S/M/L/XL/XXL
Cotton
trousers
499-799 Regular S/M/L/XL/XXL
Denim jeans 699-999 Denims S/M/L/XL/XXL
Capris 299-799 Regular XS/S/M/L/XL/XXL
BOF' is to market the products to little once.And the young mothers, who are professionals therefore
the discretionary income available to those segments is varied. In order to appeal to the younger
mothers, less established market they will have a starting point. Theirpricing strategy also lends itself
to a spontaneous purchase
Positioning Statement
We position our self as a mid-market and mass market kids wear brand for the customers who seek
value for mazumain everypurchase theymake that is a highbenefit to cost ratio. We provide a ladder
to those people who are agog to switch from lower segment to medium segment products of
superior quality but at affordable price range.
Marketing Strategy
UNIQUE SELLING PROPOSITION
 Our garments maintain shape and colour after multiple washes.
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 AZO free finish for environment amicableness.
 We endeavor to make our quality accommodations and products available to everyone who desires
to experience the privilege.
 Our store and amassment concept gels well with the modernistic “cheerful, trendy, independent,
ingenious, colorful children characters”.
 We diligently cull the designs that determine the world trends in line with the desiderata and
authoritatively mandates of ages 3-14.
 Priority of customer preference to buy a particular brand is based on “affordability, design, brand
popularity and fitting.”
 mother-centric : Selling propositions - Buying decision of infant wear (0-3years) & kids wear (3-8
years) is done exclusively by mothers only.
 environment friendliness, organic fashion sustainable fashion, fair-trade fashion
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5.0 Operations
Location(s)
Tiruppur is also known as the "knitwear capital" of India, accounting for 90% of India's cotton knitwear
export. It has spurred up the textile industry in India for the past three decades. It contributes to a
huge amount of foreign exchange inIndia. In the Fiscal year 2013,exports were 17,500 Lakh Pcs. The
city provides employment to around 400, 000 workers, with the average salary per worker being
around 9,000 permonth. Tiruppur has a good educational infrastructure.The city itself has only a few
engineering colleges, but the proximal areas and nearby cities of Coimbatore
Legal Issues
The Business of Fashion anticipates the following legal issues:
 business licenses
 import/export
 registering employees
 Contract agreements (partnerships, independent contractors etc.)
Government of Tamilnadu commercial taxes department Tamilnadu value added tax act, 2006
Form D certificate of registration
Registration Name: The Business of Fashion
Tax Payers Identification Number (TIN) - 33452426590 Dated: 10/05/2012
Form B certificate of registration
Registration Name: The Business of Fashion
CST Number: 1100794 Dated: 10/05/2012
Insurance Issues
The Business of Fashion requires insurance for owners, partners and key employees, insurance for
business property and earnings.
Human Resources
The Business of Fashion will have 1 - 10 full time staff.
The Business of Fashion will have 0 part time staff.
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Process/Production
Operation of Garments Manufacturing are given below in details:
SL
No. Operation Job Method
1 Design/Sketch
It isgivenbybuyerstomanufacturers
containing sketches including
measurements of particular styles Manual/Computerized
2 Basic Block
Basic block is an individual
component of garments without any
style of design (without Allowance,
Style, Design) Manual/Computerized
3
Working
Pattern
When a pattern is made for a
particular style with net dimension
regarding the basic block along with
allowance then it is called working
pattern. Manual/Computerized
4
Sample
Garments
To make a sample, this will be
approved by buyer. After making a
sample, it is sent to buyer for approval
to rectify the faults Manual
5
Approved
Sample
Afterrectifythefaults,sampleisagain
sentto buyers.If it is ok then, then it is
called approved sample Manual
6 Costing Fabric Costing Manual
Making Charged
Trimmings
Profit
7
Production
Pattern
Makingallowance withnetdimension
for bulk production Manual/Computerized
8 Grading
If the buyer requires different sizes,
so should be grade as S, M, L, XL, XXL Manual/Computerized
9
Marker
Making
Marker isa thinpaperwhichcontains
all the componentsfordifferentsizesfor
a particular style of garments Manual/Computerized
10
Fabric
Spreading
To spread the fabrics on table
properly for cutting Manual/Computerized
11 Cutting
To cut fabric according to marker
dimension Manual/Computerized
12
Sorting &
Bundling
Sort out the fabric according to size
and for each size make in individual
bundles Manual
The Business Of Fashion
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17
13 Sewing To assemble a full garments Manual
14
Ironing &
Finishing
After sewing we will get a complete
garment which is treated with steam
ironing & also several finishing
processes are done for example extra
loose thread cutting Manual
15 Inspection Shouldbe approvedas initial sample Manual
16 Packing Treated by Polyethylene bag Manual
17 Cartooning
After packing, it should be placed In
cartooning for export Manual
18 Dispatching Ready for export Manual
Risk Assessment
1. Bench-mark Marketing Function :
The complexities of business world are escalating marketing risks. For survival and growth
organizations need resilient marketing and sales functions. With new competition and changing
regulations, organizations need to reinvent business models. Hence, as a first step risk managers
need to bench-mark the organization’s marketing function.
2.Evaluate Cost-cutting Measures;
a) Advertising: explore cheaperadvertising models – social media,internet etc.and reduce budgets
on paper and television media.
b) Discounts: Another option adopted to increase sales is to discount all products by a certain
percentage.
3.Assess Strategy and Systems
4.Core products: Does the strategy focus on core products? Hence,the organization will be unable to
adapt strategy to the changing marketing trends and customer behavior.
5.New products: focus on products that cater to the new customer requirements and changes in
behavior. Closing thoughts with economies slowing down, the marketing functions are facing many
challenges.
6.Customers are better informed through social media and internet,competitors copy products faster,
and price of the product is a driving factor. Risk managers can contribute by conducting risk
assessments of the marketing function and helping the teams in identifying the upside and downside
risks to their strategies.
7.This is a good place to add to profitability.
8.Serving a heterogeneous market (CUSTOMERS) - India is characterized by varying consumer tastes,
preferences and buying habits. India’s states have unique languages, cuisine, geography, etc. and
The Business Of Fashion
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ideas with third parties without the express written consent of the plan author.
18
many retailers believe that consumers’tastes and preferencesvaryby state, city, and catchmentarea
and even by street! This makes it seem that India is a collection of 28 countries instead of 28 states!
9.Developinga long-term investment horizon (INVESTMENT)- Domestic and global retailers view India
as a long-term investment proposition and suggest that patience, deep pockets and customization
of products and services are required for success.
10. Focusing on innovation, customization and new product development (PRODUCTS) - Global
retailers are, through the launch of India - inspired products, positioning themselves as international
retailers who understand the nuancesof serving Indian customers in terms of offering themthe right
product, at the right price and through the right distribution channel.
11. Operating within the current regulatory framework (BUSINESS ENVIRONMENT) - Global retailers
should realize that international strategies may not always be the best for the Indian market; some
amount of customization may be required to succeed in the Indian marketplace. Retailers need to
comply with national- and state-level legislation, tax issues and regulatory frameworks. Selected
trends in India’s retail sector include—
12. Improving operational effectiveness— Retail Consumer; companies are optimizing operations,
streamlining the movement of goods, increasing efficiencies and assessing stores. Retailers are
assessing their supply chains, renegotiating rental agreements (since rental rates have fallen),
establishing shop-in-shop formats and are closing underperforming stores
13. Focusing on product development— Indian Retail Consumer; companies are launching private
labels in a range of categories, including apparel, beauty care, consumer durables, FMCG, food,
footwear, home goods, household cleaners, etc. While these products may have a “no frills”
approach in packaging and marketing, they satisfy consumers’ value preferences. India’s major
retailers expecttoincrease the range andvisibility of private label offerings, derive anincreasedshare
of revenue from the sales of these products, embark upon promotional offers and sales for such
offerings and offer some of their private label products through other retailers’ outlets.
14. Increasingly sophisticated consumers— The Internet/media, global lifestyle influencers,
increasing incomes, overseas travel and a preoccupation with celebrity culture are making Indians
more aware than before. Sophisticated consumers are demanding accessto new products in health
foods and beverages, dietary supplements, health and wellness, skincare, etc.
15. Embarking upon a greenagenda—although nascentin India, some retailers are revising business
strategies and embarking upon sustainable business practices to appeal to environmentally-aware
consumers.Competitive forces are playing a role in encouragingthe use of biodegradable packaging,
adopting sustainable business practices, reducing carbon footprint, etc.
If after a full yearof business, sales are less than INR 4,00,000 BOF's would needto close its doors and
shut down its operation. Existing product inventory would remain on the Etsy store until the four
month listing period had expiredoruntil the following Novemberwhen itwill be sold at a ‘warehouse’
sale 50% off to capitalize on existing stock
The Business Of Fashion
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19
6.0 Financials
Start-Up Costs & Break Even
No
January
The Businessof Fashion’s startup cost table can be found in the attached financial spreadsheet that has
been included as a separate document in the Appendix.
Breakeven analysis
100000 / (40 - 100) = -1667
Sales Forecast
Key Assumptions for BOF's May – June, August-Sep, December-Jan will be the highest sales months
due to the NRI festivals, local festivals Average sale will be INR 50 No online sales for first three
months Product sales broken out as 90% from market and 10% through local retailers Eachcustomer
will purchase one products
Enter in an amount. - INR 45
Enter a number from 0 to 100. - INR 30
Year One Sales Forecast Including Assumptions
Month 1 - INR 900000.00 - 80
Month 2 - INR 900000.00 - 80
Month 3 - INR 450000.00 - 70
Month 4 - INR 900000.00 - 80
Month 5 - INR 900000.00 - 80
Month 6 - INR 450000.00 - 70
Month 7 - INR 900000.00 - 80
Month 8 - INR 900000.00 - 80
The Business Of Fashion
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ideas with third parties without the express written consent of the plan author.
20
Month 9 - INR 450000.00 - 80
Month 10 - INR 900000.00 - 70
Month 11 - INR 1350000.00 - 70
Month 12 - INR 1350000.00 – 70
Enter in an amount. - INR 50
Enter a number from 0 to 100. - INR 40
Cash flow
The Business of Fashion’s detailed cashflow for year1 and year2 can be found in the attached financial
spreadsheet that has been included as a separate document in the Appendix.
Income Statement
The Business of Fashion’s income statement can be found in the attached financial spreadsheet that
has been included as a separate document in the Appendix.

INV2 BOF BUSINESS PROPOSAL & PLAN- DETAILS

  • 1.
    The Business OfFashion CONFIDENTIAL - DO NOT DISSEMINATE. This business plan contains confidential, trade-secret information and is shared only with the understanding that you will not share its contents or ideas with third parties without the express written consent of the plan author. 1 The Business of Fashion Little wear Business; and A Passion……….. Contact Information MRS.NITHYA A - PROPERITOR MR. SANGEET KUMAR M V - ADVISOR bof@asia.com nithya@thebof.in NO: 9, MKP NIVAS, 5 – RVE LAYOUT. KANGEYAM ROAD, TIRUPUR TAMILNADU-641604 http://thebof.wix.com/bof +91 80569 01777 sangeetkr@gmail.com; SITE NO: 9, S.F.NO-30, MUDALIPALAYAM VILLAGE. MUTHANNAMPALAYAM, TIRUPUR TAMILNADU-641606 https://in.linkedin.com/in/sangeetkr +91 80569 55577
  • 2.
    The Business OfFashion CONFIDENTIAL - DO NOT DISSEMINATE. This business plan contains confidential, trade-secret information and is shared only with the understanding that you will not share its contents or ideas with third parties without the express written consent of the plan author. 2 1.0 Executive Summary Company Profile Summary Ingenious and technically viable- you can’t engendera quality product without attention to detail. The BOF team has experienced fashion designers with the ability to engender full apparel and technical packages for your developing brand. Full Accommodation Design & Engenderment Includes – Initial Consultation – Fabric/Fit – Design Studio – Technical Packages - CAD – Patterns/Protos - CAD – Logos/Labels/Trims - TrimLab – Sales Samples – Cut Make and Trim - Mass Production – Packaging and Shipping They are erudite in full product life cycle, from research through engenderment, ascertaining your product will get the attention it deserves. To have your men’s, women’s, and children’s apparel and accessories packages done on trend + on time. The BOF Engendersan IncipientApproach to Apparel EngendermentIt’sno secret that making it in the fashion industry as an emerging designer/brand is no facile task. Between sourcing logistics, costs, engenderment, marketing and sales, launching a line is an astronomically immense endeavor that requires an abundance of commitment.Auspiciously, because of this, newcomers to the industry are getting more ingenious,and muchofthis ingenuityis goingtowards making the startup processmore facile. BOF offers Apparel & Textile Design, TechnicalDesign, Patternmaking, Packaging, and Manufacturing Support. We are zealous about optically discerning designers prosper by providing the implements to avail promote magnification regardless of company size. From initial design to your technical package, we work with you and avail to guide you through the entire development process. Our benchmark is to provide our customers expeditious fashion, twice a month we will launch 10 incipient products. Product’s with functional quality, perdurable for Indian conditions. The BOF ken how the headache of minuscule run engendermentand all the stress that comesalong with it can sometimes bring you to tears?
  • 3.
    The Business OfFashion CONFIDENTIAL - DO NOT DISSEMINATE. This business plan contains confidential, trade-secret information and is shared only with the understanding that you will not share its contents or ideas with third parties without the express written consent of the plan author. 3 It’s so arduous. As an incipient brand, it feels like finding a manufacturer who is disposed to work with your short runs, who doesn’t push you aside when a more sizably voluminous order comes through, and who doesn’t treat you as if you don’t ken the first thing about this business, is infeasible. This early stage of the business– production– and the dubiousness and mystification that come with it, can make you question your decisionto do this at all– it can make you feellike you were crazyto cerebrate you could ever build a business around doing what you dote. BOF offer tech pack engenderment, samples, and engenderment runs. The expertise- BOF is a Master Tailor; BOF has a prosperous tailor shop, storefront, and yoga wear brand. She’s spent +15 years in this industry and kens it well. The BOF team is composed of expert seamstresses and designers who ken how to make the highest quality habiliments and appurtenant. BOF emanates from the designer’s perspective– BOF understands your concerns,questions, and fears — and therefore does not judge or dismiss you as you make your way through the process. As Ms. Nithya – Woman entrepreneur and proprietor of BOF verbalized: “It’s about Fabric + Thread + a Dream. Let’ do this!”
  • 4.
    The Business OfFashion CONFIDENTIAL - DO NOT DISSEMINATE. This business plan contains confidential, trade-secret information and is shared only with the understanding that you will not share its contents or ideas with third parties without the express written consent of the plan author. 4 Market Research Summary Designer kids wear market to hit Rs 95K crore by 2016: ASSOCHAM Rising media exposure,high disposable income of the parents, peerpressure and brand consciousness among children are driving the growth of kids apparel market in India from the current level of Rs. 72,000 crore to Rs 95,000 crore by 2016, a study says. This segmentis growing at a compound annual growth rate (CAGR) of about 20 per, finds the study by apex industry body ASSOCHAM.In recent times, kids fashion has percolated down to Tier-IIand Tier- III cities like Dehradun, Ludhiana, Pune, Nashik, Indore, Varanasi and many other smaller cities. “Children have become brand conscious,parents have more money (thanks to double-income families in the cities) and peerpressure is growing. This is only segment which has not been impacted by the economiccrisis andpoised for significant growth”,said DS Rabat,SecretaryGeneral, andASSOCHAM. Earlier, the trend was to buy functional kids’ apparel rather than branded. Children’s garments were usually purchased from small stores and from street shops, while branded garments were only bought by very high-income families, the ASSOCHAM paper added. The kids segment is the most promising in apparel retail in India. Big brands are only now realizing its true potential. Sports goods major Reebok launchedits kids-wear brand ReebokJunior mid last year. These brands are developing categories such as infant wear, kids' formal wear, kids' ethnic wear, swim wear and casual wear, along with a wide range of other merchandise for children, adds the report. Indian fashion designers are eyeing the premium space. Some have begun retailing their wares for kids through stores such as Kidology in Delhi, Mumbai and Hyderabad, and in Mumbai. The big business houses are also examining the opportunity includes Pantaloons’ chain and Mahindra Retail. Online sites have also launched for shopping branded kids wear and accessories for the age group between 2-16 years. The portal brings collection from some of the biggest brands in the categories of apparels and accessories. Marketing Summary To date, BOF brand has grown through word of mouth referrals from current customers wearing the pieces. BOF’s key marketing strategy will be to expand awareness of the products beyond their existing customers. To achieve this, BOF has secured an eminent team of employees for designing, product development, pattern making, fabric, accessories and trim sourcing. A stand-alone factory for its in-house manufacturing, quality control, lab test & checking and packing- dispatch. A secondary strategy will be to increases our product range by offering woven fashion styles, which includes toddler styles like woven girls top, gowns, and frocks. Boy’sstyles like washed pants, trousers, denim products etc. BOF’s studio and head office will be located at 10, Lakshmi Apartments’, Kangeyam Road, Tirupur. Warehouse, manufacturing will be operated from our unit in SIDCO-TEKIC, Mudalipalayam, Tirupur- India. Woven will be outsourced from Erode and Salem. Business owners insurance, a starting materials inventory, and an online ecommerce accounting and inventory system will be needed.
  • 5.
    The Business OfFashion CONFIDENTIAL - DO NOT DISSEMINATE. This business plan contains confidential, trade-secret information and is shared only with the understanding that you will not share its contents or ideas with third parties without the express written consent of the plan author. 5 Additional machinery for CMT, work area of 5000Sq Feet will be incorporated with our new manufacturing unit getting functional from the early 2016. Finance Summary BOF is looking for an investment of INR 30, 00,000 will be required to extend the product range and provide longer credit period for the clients. INR 30, 00,000 will be needed to revitalize the business with INR 10, 00,000 coming from previous product sales reinvested by the owner. In the first year of business BOF is forecasting sales of INR 40, 00,000 (100000 Pcs sales) with estimated expenses of INR 30, 00,000. This will produce a running inventory of an additional 50000 Pcs at yearendvalued at INR 10, 00,000.In year two, BOF estimates an increase in sales of 3% or INR 120000 with expenses increasing by 1% to INR 40000.
  • 6.
    The Business OfFashion CONFIDENTIAL - DO NOT DISSEMINATE. This business plan contains confidential, trade-secret information and is shared only with the understanding that you will not share its contents or ideas with third parties without the express written consent of the plan author. 6 2.0 Company Profile Business Overview The Business of Fashion is kids wear & fashion accessories manufacturer. Chiefly concentrating on fashionwear for newborn infant & kids aged up to 8 years old. Exquisitely designed, developed and manufactured positioned on seasonal, regional fashion drift. Blend Intl fashion stirs & spark into apt perception for kids wear. The Business of Fashion was established on 04/08/2010 One Crucial Edification about the Fashion Manufacturing Industry!!! For some of youthis may be a flamboyantly discernible edification. But when you’re endeavoring to do design and marketing and media outreach and customer accommodation and blogging and everything else, it can be facile to take engenderment for granted and surmise someone else is handling it. The thing is no one is ever going to care about your product as much as you do. “If you invest time in your sewers, then they’ll invest their time in you”. The Business of Fashion is a both product & service business. INFANTWEAR TODDLERWEAR KIDS UNDERWEAR KIDS NIGHTWEAR AGE GROUP – JUST BORN(0 M TO 12 M) AGE GROUP – 1A M TO 4A AGE GROUP – JUST BORN (0 M TO 4A) AGE GROUP – 1A M TO 4A GENDER – BABYBOY & BABY GIRL GENDER – BOY & GIRL GENDER – BOY & GIRL GENDER – BOY & GIRL Bodysuit (unisex) T-Shirt-Girls Boys Brief Boys Pajama Set Sleep suit (unisex) Capri-Girls Boys Sleeve less Vest Girls Pajama Set Mitten (unisex) Blouse-Girls Boys Short Sleeve Vest Boys Shorts Set Botties (unisex) Voile Top-Girls Girls Panties Girls Shorts Set Cap (unisex) Skirt-Girls Girls shorty’s Romper (unisex) Leggings-Girls Girls Body Slip Dress (baby girl) Jeggings-Girls Girls Spaghetti Slip Open feet sleep suit (unisex) Jumpsuit-Girls Girls Capri Tights Pajama set (unisex) T-shirt-Boy Short-set (Babyboy) Short-Boy Denim Pant-Boy Twill pant-Boy Dungaree-Boy Pullover-Boy Hooded jacket-Boy
  • 7.
    The Business OfFashion CONFIDENTIAL - DO NOT DISSEMINATE. This business plan contains confidential, trade-secret information and is shared only with the understanding that you will not share its contents or ideas with third parties without the express written consent of the plan author. 7 Company History THEBUSINESS OFFASHIONwas established in 2003. The Businessof Fashion has gainedan ecumenical following as an essential daily resource for fashion creative’s, executives and entrepreneurs in over 200 countries. It is frequently described as indispensable, required reading and an addiction. The Group operates an extensive ecumenical sourcing network covering over 8 offices and over 100 employees in more than 4 economies across North America, Europe and Asia. In integration to the wide range and variety of consumer products available through its sourcing network, The Business of Fashion withal leverages its strengths in custom product design and development to provide consummate ecumenical sourcing solutions for its customers. Management Our Expertise gives an edge in sourcing, which enables us to increment our client's profitability & market reputation. Beinga quality driven company,we lay massive accentuationon the quality of our garments. Our garments are noted for their quality workmanship. We ascertain that the fabric is of the finest quality. An abundance of accentuation is laid on the designs, color and vigor of garments. Distributing fashion business astuteness on emerging designers, disruptive technologies and ecumenical brands that are making their mark on the industry at a time of unprecedented change. Style is as consequential as quality is paramount. It’s worth pointing out now that not all fashion businesses have to operate at the high cessation of luxury, albeit it seems that that is where every designer wants to be. Recollect,your business conceptneeds to offer a clear proposition of value to your customer, and that value could be world-class design at more plausible prices. Visually examine Zara or H&Mor Coachor AmericanApparel and how they have taken clear business conceptions that sanction them to distribute great fashion to the masses. While it may seem ideal to be a “luxury” brand, withal recollectthat some of the most influential fashion businesses are onthe highstreet and in your neighborhood mall, because they dress thousands of people around the world. Understand their psychology, emotional needs and relationship with habiliments. Visualize all the aspects of their lives and assess how your business can coalesce into making them even preponderant. Location The Business of Fashion will be manufacturing. The Business of Fashion will be located at Tiruppur, Tamilnadu, India. Tiruppur is a city in the Kongu Nadu region of the Indian state of Tamil Nadu. Tiruppur or Tirupur is a city in the Kongu Nadu region of the Indian state of Tamil Nadu. Tiruppur is a major textile and knit wear hub contributing to 90% of total cotton knit wear exports from India. The textile industry provides employment to over six lakh people and contributed to exports worth ₹200 billion (USINR 3.1 billion) in 2014-15. Tiruppur is also known as the "knitwear capital" of India, accounting for 90% of India's cotton knitwear export. It has spurred up the textile industry in India for the past three decades. Tiruppur is located at 11.1075°N 77.3398°E.
  • 8.
    The Business OfFashion CONFIDENTIAL - DO NOT DISSEMINATE. This business plan contains confidential, trade-secret information and is shared only with the understanding that you will not share its contents or ideas with third parties without the express written consent of the plan author. 8 Goals & Objectives Our mission is to provide best of the product; at the lowest prices. BOF offers Apparel & Textile Design, TechnicalDesign, Patternmaking, Packaging, and Manufacturing Support. We are zealous about optically discerning designers prosper by providing the implements to avail promote magnification regardless of company size. From initial design to your technical package, we work with you and avail to guide you through the entire development process. Our benchmark is to provide our customers expeditious fashion, twice a month we will launch 10 incipient products. Vision & Mission The iconic line from the movie Field of Dreams, “If you build it they will come,” has never been as subsidiary in the explication of a vocation path like that of the fashion designer. Albeit the commencements of the design trade require hands-on learning and training, the phrase does not always hold true when it comes to business. Generally verbalizing, it is mundane to have some type of quality issues with engenderment. Customarily these things transpire as a miscommunication betweenthe designerand the contractor, or by having the contractor follow verbal descriptions rather than an authentic sample. Here are some suggestions to avail quality control: •Sewby sample.This isthe most subsidiary thing. Give your contractor an impeccable sample to follow for engenderment,this sample should be precisely how you would relish your product to look, up to the fundamental details. Don’t leave anything open for interpretation of the contractor. • Have your contractor make a top of engenderment(T.O.P) sample that you will approve afore they commence sewing your consummate engenderment. This way, if they are doing something erroneous, you’ll catch it and it can still be fine-tuned afore they perpetuate with the whole run. • If you are located near your contractor, visit them on a conventional substratum throughout the process, to ascertain everything is going well. • If there are stages in the process that needextra attention, optically discern if it is possible for you to engender “check points” where you will require to approve them once they get to this stage and afore the product is culminated. Ascertain you designate time for them to send the product to you,if you cannot peregrinate to them. • Allocate more time for engenderment if possible, always have some extra days on hand (don’t let your contractor ken this) so you can address unexpected issues when they come up. • Find a contractor that you like and stick with them.
  • 9.
    The Business OfFashion CONFIDENTIAL - DO NOT DISSEMINATE. This business plan contains confidential, trade-secret information and is shared only with the understanding that you will not share its contents or ideas with third parties without the express written consent of the plan author. 9 • Think about the engenderment process when you are designing your product. • Keepyour designs consistent; don’t change things all the time if you can evade it. This will confound your contractor and open doors for mistakes. BOF is featuringa full fledge testing Lab, a standalone Quality ManagementTeam.A planarity equipped Sampling Department. Overseenby a Merchandising department and Account Manager to minimize the Miss communication. Finding the Right Sample Maker for Your Line The process of finding the right sample maker for your product can sometimes be a challenging experience. It can take time to find a sample maker who genuinely understands your vision, fixates on your injunctive authorizations and does not charge a fortune to engender your samples. Many more minuscule engenderment houses only want to do engenderment projects. These engendermenthouseswill often take onsampling, but onlyif theyare assured that an engenderment order will be coming in. The expertise - BOF is a Master Tailor; BOF has a prosperous tailor shop, storefront, and yoga wear brand. She’s spent +15 years in this industry and kens it well. The BOF team is composed of expert seamstresses and designers who ken how to make the highest quality apparel and appendages. Engender the Perfect Culminating physically contacts for Your Fashion Accumulation with Trim Lab. When it comes to engenderingyour products, sourcing all of the consequential pieces(from fabric to zipper) can be one of the most challenging things you do. You have a conception, you have an adumbration, and you have an authentically arduous time getting what youwant… Be introduced to our unique Trim Lab; an incipient resource that has popped up with a mission to avail you get your hands on the trims and notions that you genuinely want for your amassment. Legal Structure The Business of Fashion is a corporation. BOF will operate as a corporation for the foreseeable future. This is the norm for start-ups in this industry. The Business of Fashion is interested in securing not at this time.
  • 10.
    The Business OfFashion CONFIDENTIAL - DO NOT DISSEMINATE. This business plan contains confidential, trade-secret information and is shared only with the understanding that you will not share its contents or ideas with third parties without the express written consent of the plan author. 10 3.0 Market Research Industry Profile & Outlook The Business of Fashion operates primarily in the Fashion/Clothing Design industry. Albeit the branded kids wear segmenthas recordedhigher magnification in recentyears, it still remains a largely unbranded market, with products sold mostly through unorganizedretail channels. The low average lifespan of children’s apparel, a result of the growing height of children, has coerced many value-conscious parents to hold back on spending on children’s apparel, especially in the medium, economyand low-terminus of the market.However,market dynamics vary drastically in the premium and super-premium categories. Brands are a very paramount decision-making criterion for parents and children in these segments. In fact, some of the designers and retailers have even commenced catering to the ordinant dictation for children’s bespoke apparel. Most of the organized players in the kids wear market initially focusedonly on western wearcategories like denim, shirts, T-shirts, etc. However, brands and organized players have now commenced foraying into children’s ethnic wear categories and are offering ethnically styled products for kids. Brands and retailer aforetime catering only to adults have elongated their product lines to include childrenand are endeavoringto transform themselvesas a consummate family shopping destination. In this reverence, even international brands have commenced offering children’s apparel. Some Indian manufacturers who had anteriorly been focusing solely on the export market have commencedreorienting themselves to meet the growing demand within the country. Consequently they have come up with their own brands and independent retail operations. Urban India today is characterized by a nuclear family with double income parents who are inclined to spend extrahigherportion of their wallets on their children.Consequently the spending on children’s apparel, with better brand image and quality has received a boost. Concurrently, Indian kids in both urban and semi-urban India are increasingly exposed to sundry media and are thus cognizant about brands which cater to them. They have additionally commenced participating actively in purchase decisions relating to their apparel. Despite the intriguing magnification story of the kids wear segment,a lot remains to be achievedin this market. The opportunities within the kids wear market are definitely lucrative, but tapping these requires well-formulated strategies and high calibers of commitment. Brands and retailers additionally have to ascertain better perforation beyond urban pockets and cater to the price- sensitive children’s segments in semi-urban and rural India. Some of the kids wear brands have struggled in terms of orchestrating store expansions with adequate prudence and analysis and thus have beencoercedinto rolling back plans or have got entangled in high debt traps and unwarranted business litigations. Incipient entrants could minimize their own learning curve by learning from the challenges and roadblocks faced by the early entrants as well as subsisting players. The ability of brands and retailers to address the categorical requisites of children as well as their parents and to offer fashion solutions rather than mere products will be critical for their prosperity.
  • 11.
    The Business OfFashion CONFIDENTIAL - DO NOT DISSEMINATE. This business plan contains confidential, trade-secret information and is shared only with the understanding that you will not share its contents or ideas with third parties without the express written consent of the plan author. 11 Local Market Most companies concur that there is a market for just about every player in India. Home-grown children's wear brands are banking on their expertise in engenderment,sourcing, and design. "India is the most immenselycolossal kids' wearmarket in the world. The Indian consumption story is intact. It's a great opportunity. In the next 10 months, we will hit the market." Target Market The Business of Fashion is focused on selling to Consumers (B2C). Infant & Kid swear aged 0 – 8 (demographics) New born, Household income: INR 5,000 - 25,000 (demographics) Consumers that look to support local businesses and the community (behavior) Consumers desiring products that provide quality and value as well as reflect the history of Nova Scotia (psychographic) NRI visiting south India looking for a bulk buying or regular buying to reduce buying in GCC or abroad. Keys to Success Critical factor of success of our collaboration, is to continue offering more product in the scope of targeted market. Concentrate more on the product development to come up with indigenous Sophisticated, urban and modern themed apparels Consistently construct uniqueapparel, which come with the best price. International quality standards. Apparel designs which is unique and which is having a renowned look and comparable to famous brands in the Indian and GCC market. Cotton is the most preferred material due to its non-allergic, comfortable, and easy caring virtues
  • 12.
    The Business OfFashion CONFIDENTIAL - DO NOT DISSEMINATE. This business plan contains confidential, trade-secret information and is shared only with the understanding that you will not share its contents or ideas with third parties without the express written consent of the plan author. 12 4.0 Sales & Marketing Pricing Strategy – Competitors Comparisons COMPETITOR BRAND TARGET GROUP PRICE RANGE POSITIONING SHOPPERS STOP 0-16 years Rs 299- Rs 5000 Middle and premium segment LILLIPUT 0-11 Years Rs 349- Rs 1799 Middle and premium segment RUFF KIDS 4-16 Years Rs 600 onwards Premium segment ZAPP (RAYMONDS) 0-11 Years Rs 299- Rs 1399 Middle and premium segment CATMOSS 0-16 Years Rs 345 onwards Middle and premium segment GINI & JONY 0-16 Years Rs 600- Rs 2500+ Premium segment UNITED COLOURS OF BENETTON 1-12 Years Rs 999- Rs 3999 Premium segment WEEKENDER 2-12 Years Rs 349- Rs 1799 Middle and Premium segment The Business of Fashion Pricing strategy and Ranges is as follows. BRAND PRODUCT RANGE PRICE RANGE PRODUCT CLASS SIZES AVAILABLE BOF"S Tops 249-999 Regular, occasional, party wear XS/S/M/L/XL/XXL Girls Skirts 249-999 Regular, occasional, party wear XS/S/M/L/XL/XXL
  • 13.
    The Business OfFashion CONFIDENTIAL - DO NOT DISSEMINATE. This business plan contains confidential, trade-secret information and is shared only with the understanding that you will not share its contents or ideas with third parties without the express written consent of the plan author. 13 Frocks 249-999 Regular, occasional, party wear XS/S/M/L/XL/XXL Capris 299-799 Regular XS/S/M/L/XL/XXL Cotton Trousers 349-799 Regular S/M/L/XL/XXL Denim Jeans 699-999 Denims S/M/L/XL/XXL BOF"S T-Shirts 249-699 Regular, Occasional XS/S/M/L/XL/XXL Boys Shirts 249-999 Regular, occasional, party wear XS/S/M/L/XL/XXL Cotton trousers 499-799 Regular S/M/L/XL/XXL Denim jeans 699-999 Denims S/M/L/XL/XXL Capris 299-799 Regular XS/S/M/L/XL/XXL BOF' is to market the products to little once.And the young mothers, who are professionals therefore the discretionary income available to those segments is varied. In order to appeal to the younger mothers, less established market they will have a starting point. Theirpricing strategy also lends itself to a spontaneous purchase Positioning Statement We position our self as a mid-market and mass market kids wear brand for the customers who seek value for mazumain everypurchase theymake that is a highbenefit to cost ratio. We provide a ladder to those people who are agog to switch from lower segment to medium segment products of superior quality but at affordable price range. Marketing Strategy UNIQUE SELLING PROPOSITION  Our garments maintain shape and colour after multiple washes.
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    The Business OfFashion CONFIDENTIAL - DO NOT DISSEMINATE. This business plan contains confidential, trade-secret information and is shared only with the understanding that you will not share its contents or ideas with third parties without the express written consent of the plan author. 14  AZO free finish for environment amicableness.  We endeavor to make our quality accommodations and products available to everyone who desires to experience the privilege.  Our store and amassment concept gels well with the modernistic “cheerful, trendy, independent, ingenious, colorful children characters”.  We diligently cull the designs that determine the world trends in line with the desiderata and authoritatively mandates of ages 3-14.  Priority of customer preference to buy a particular brand is based on “affordability, design, brand popularity and fitting.”  mother-centric : Selling propositions - Buying decision of infant wear (0-3years) & kids wear (3-8 years) is done exclusively by mothers only.  environment friendliness, organic fashion sustainable fashion, fair-trade fashion
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    The Business OfFashion CONFIDENTIAL - DO NOT DISSEMINATE. This business plan contains confidential, trade-secret information and is shared only with the understanding that you will not share its contents or ideas with third parties without the express written consent of the plan author. 15 5.0 Operations Location(s) Tiruppur is also known as the "knitwear capital" of India, accounting for 90% of India's cotton knitwear export. It has spurred up the textile industry in India for the past three decades. It contributes to a huge amount of foreign exchange inIndia. In the Fiscal year 2013,exports were 17,500 Lakh Pcs. The city provides employment to around 400, 000 workers, with the average salary per worker being around 9,000 permonth. Tiruppur has a good educational infrastructure.The city itself has only a few engineering colleges, but the proximal areas and nearby cities of Coimbatore Legal Issues The Business of Fashion anticipates the following legal issues:  business licenses  import/export  registering employees  Contract agreements (partnerships, independent contractors etc.) Government of Tamilnadu commercial taxes department Tamilnadu value added tax act, 2006 Form D certificate of registration Registration Name: The Business of Fashion Tax Payers Identification Number (TIN) - 33452426590 Dated: 10/05/2012 Form B certificate of registration Registration Name: The Business of Fashion CST Number: 1100794 Dated: 10/05/2012 Insurance Issues The Business of Fashion requires insurance for owners, partners and key employees, insurance for business property and earnings. Human Resources The Business of Fashion will have 1 - 10 full time staff. The Business of Fashion will have 0 part time staff.
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    The Business OfFashion CONFIDENTIAL - DO NOT DISSEMINATE. This business plan contains confidential, trade-secret information and is shared only with the understanding that you will not share its contents or ideas with third parties without the express written consent of the plan author. 16 Process/Production Operation of Garments Manufacturing are given below in details: SL No. Operation Job Method 1 Design/Sketch It isgivenbybuyerstomanufacturers containing sketches including measurements of particular styles Manual/Computerized 2 Basic Block Basic block is an individual component of garments without any style of design (without Allowance, Style, Design) Manual/Computerized 3 Working Pattern When a pattern is made for a particular style with net dimension regarding the basic block along with allowance then it is called working pattern. Manual/Computerized 4 Sample Garments To make a sample, this will be approved by buyer. After making a sample, it is sent to buyer for approval to rectify the faults Manual 5 Approved Sample Afterrectifythefaults,sampleisagain sentto buyers.If it is ok then, then it is called approved sample Manual 6 Costing Fabric Costing Manual Making Charged Trimmings Profit 7 Production Pattern Makingallowance withnetdimension for bulk production Manual/Computerized 8 Grading If the buyer requires different sizes, so should be grade as S, M, L, XL, XXL Manual/Computerized 9 Marker Making Marker isa thinpaperwhichcontains all the componentsfordifferentsizesfor a particular style of garments Manual/Computerized 10 Fabric Spreading To spread the fabrics on table properly for cutting Manual/Computerized 11 Cutting To cut fabric according to marker dimension Manual/Computerized 12 Sorting & Bundling Sort out the fabric according to size and for each size make in individual bundles Manual
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    The Business OfFashion CONFIDENTIAL - DO NOT DISSEMINATE. This business plan contains confidential, trade-secret information and is shared only with the understanding that you will not share its contents or ideas with third parties without the express written consent of the plan author. 17 13 Sewing To assemble a full garments Manual 14 Ironing & Finishing After sewing we will get a complete garment which is treated with steam ironing & also several finishing processes are done for example extra loose thread cutting Manual 15 Inspection Shouldbe approvedas initial sample Manual 16 Packing Treated by Polyethylene bag Manual 17 Cartooning After packing, it should be placed In cartooning for export Manual 18 Dispatching Ready for export Manual Risk Assessment 1. Bench-mark Marketing Function : The complexities of business world are escalating marketing risks. For survival and growth organizations need resilient marketing and sales functions. With new competition and changing regulations, organizations need to reinvent business models. Hence, as a first step risk managers need to bench-mark the organization’s marketing function. 2.Evaluate Cost-cutting Measures; a) Advertising: explore cheaperadvertising models – social media,internet etc.and reduce budgets on paper and television media. b) Discounts: Another option adopted to increase sales is to discount all products by a certain percentage. 3.Assess Strategy and Systems 4.Core products: Does the strategy focus on core products? Hence,the organization will be unable to adapt strategy to the changing marketing trends and customer behavior. 5.New products: focus on products that cater to the new customer requirements and changes in behavior. Closing thoughts with economies slowing down, the marketing functions are facing many challenges. 6.Customers are better informed through social media and internet,competitors copy products faster, and price of the product is a driving factor. Risk managers can contribute by conducting risk assessments of the marketing function and helping the teams in identifying the upside and downside risks to their strategies. 7.This is a good place to add to profitability. 8.Serving a heterogeneous market (CUSTOMERS) - India is characterized by varying consumer tastes, preferences and buying habits. India’s states have unique languages, cuisine, geography, etc. and
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    The Business OfFashion CONFIDENTIAL - DO NOT DISSEMINATE. This business plan contains confidential, trade-secret information and is shared only with the understanding that you will not share its contents or ideas with third parties without the express written consent of the plan author. 18 many retailers believe that consumers’tastes and preferencesvaryby state, city, and catchmentarea and even by street! This makes it seem that India is a collection of 28 countries instead of 28 states! 9.Developinga long-term investment horizon (INVESTMENT)- Domestic and global retailers view India as a long-term investment proposition and suggest that patience, deep pockets and customization of products and services are required for success. 10. Focusing on innovation, customization and new product development (PRODUCTS) - Global retailers are, through the launch of India - inspired products, positioning themselves as international retailers who understand the nuancesof serving Indian customers in terms of offering themthe right product, at the right price and through the right distribution channel. 11. Operating within the current regulatory framework (BUSINESS ENVIRONMENT) - Global retailers should realize that international strategies may not always be the best for the Indian market; some amount of customization may be required to succeed in the Indian marketplace. Retailers need to comply with national- and state-level legislation, tax issues and regulatory frameworks. Selected trends in India’s retail sector include— 12. Improving operational effectiveness— Retail Consumer; companies are optimizing operations, streamlining the movement of goods, increasing efficiencies and assessing stores. Retailers are assessing their supply chains, renegotiating rental agreements (since rental rates have fallen), establishing shop-in-shop formats and are closing underperforming stores 13. Focusing on product development— Indian Retail Consumer; companies are launching private labels in a range of categories, including apparel, beauty care, consumer durables, FMCG, food, footwear, home goods, household cleaners, etc. While these products may have a “no frills” approach in packaging and marketing, they satisfy consumers’ value preferences. India’s major retailers expecttoincrease the range andvisibility of private label offerings, derive anincreasedshare of revenue from the sales of these products, embark upon promotional offers and sales for such offerings and offer some of their private label products through other retailers’ outlets. 14. Increasingly sophisticated consumers— The Internet/media, global lifestyle influencers, increasing incomes, overseas travel and a preoccupation with celebrity culture are making Indians more aware than before. Sophisticated consumers are demanding accessto new products in health foods and beverages, dietary supplements, health and wellness, skincare, etc. 15. Embarking upon a greenagenda—although nascentin India, some retailers are revising business strategies and embarking upon sustainable business practices to appeal to environmentally-aware consumers.Competitive forces are playing a role in encouragingthe use of biodegradable packaging, adopting sustainable business practices, reducing carbon footprint, etc. If after a full yearof business, sales are less than INR 4,00,000 BOF's would needto close its doors and shut down its operation. Existing product inventory would remain on the Etsy store until the four month listing period had expiredoruntil the following Novemberwhen itwill be sold at a ‘warehouse’ sale 50% off to capitalize on existing stock
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    The Business OfFashion CONFIDENTIAL - DO NOT DISSEMINATE. This business plan contains confidential, trade-secret information and is shared only with the understanding that you will not share its contents or ideas with third parties without the express written consent of the plan author. 19 6.0 Financials Start-Up Costs & Break Even No January The Businessof Fashion’s startup cost table can be found in the attached financial spreadsheet that has been included as a separate document in the Appendix. Breakeven analysis 100000 / (40 - 100) = -1667 Sales Forecast Key Assumptions for BOF's May – June, August-Sep, December-Jan will be the highest sales months due to the NRI festivals, local festivals Average sale will be INR 50 No online sales for first three months Product sales broken out as 90% from market and 10% through local retailers Eachcustomer will purchase one products Enter in an amount. - INR 45 Enter a number from 0 to 100. - INR 30 Year One Sales Forecast Including Assumptions Month 1 - INR 900000.00 - 80 Month 2 - INR 900000.00 - 80 Month 3 - INR 450000.00 - 70 Month 4 - INR 900000.00 - 80 Month 5 - INR 900000.00 - 80 Month 6 - INR 450000.00 - 70 Month 7 - INR 900000.00 - 80 Month 8 - INR 900000.00 - 80
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    The Business OfFashion CONFIDENTIAL - DO NOT DISSEMINATE. This business plan contains confidential, trade-secret information and is shared only with the understanding that you will not share its contents or ideas with third parties without the express written consent of the plan author. 20 Month 9 - INR 450000.00 - 80 Month 10 - INR 900000.00 - 70 Month 11 - INR 1350000.00 - 70 Month 12 - INR 1350000.00 – 70 Enter in an amount. - INR 50 Enter a number from 0 to 100. - INR 40 Cash flow The Business of Fashion’s detailed cashflow for year1 and year2 can be found in the attached financial spreadsheet that has been included as a separate document in the Appendix. Income Statement The Business of Fashion’s income statement can be found in the attached financial spreadsheet that has been included as a separate document in the Appendix.