The Vintage Second-Hand Clothes Co., Ltd. is a wholesaler of used clothing sourced from Southeast Asia, primarily Thailand, and aims to sell these products at competitive prices in the UK market. The company plans to leverage online marketing platforms like Facebook and blogs for promotion while focusing on stylish women's clothing initially, with plans to diversify into menswear. Their business objectives include achieving £350,000 in revenue within three years and expanding operations internationally to cities like New York and Tokyo.

1. Vintage Second-Hand Clothes Wholesaler
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2. 1. Summary
Vintage Second-Hand Clothes Company sells
used clothes that the company selects and buys
from markets in Thailand and many other countries
in Asia such as China and Cambodia. The company
will promote its business through Facebook web-
page and its blogspot or website. Customers can
pay money to the company by transferring the
money to the owner’s bank account or by creditcard
via paypal system.
The company concentrates on wholesales
which means customers have to buy products in a
lot. However, the company might hold a seasonal
event to retail the products left in the stock for
longer than 1 year.
To stock the goods, the company has to rent a
warehouse located near the basement of the
business, i.e., the office.
The company will promote its business and
products through Facebook page and its blogspot
or website, aiming to create people’s awareness of
the company and its products.
The company is solely owned and operated by
XXXXX.

3. 2. Business overview
The company sells the used clothes bought from
Thailand to customers in the UK. The products of
the company include women’s tops, pants, skirts,
suits, jackets, women’s evening gowns and cocktail
dresses, blouses and accessories. After operating
the business for 6 months, the company might
extend its product lines to menswear.
The second-hand clothes market in the UK is quite
huge since new clothes are very costly. Thus, the
company believes that it can get some market
shares from the existing competitors such as
‘Trashy Flowers
(http://www.trashyflowers.com/shop/)’ and ‘Glass
Onion Vintage
(http://www.glassonionvintage.com/)’, which are
vintage clothes wholsalers as well.
Introduction
Vintage Second-Hand Clothes Co, Ltd, is solely
owned by XXXX who have noticed that the prices of
second hand- attire sold in Thaialnd and China are
very low (around 1 pound) whilst those of the
second-hand attire sold in Englad are much higher-
around 5 pounds to 100 pounds
(http://www.oxfam.org.uk/shop/second-hand-
clothes); thus, to import used clothes from Thailand
and China to sell in England deems profitable
because the company can sell the products in the
reasonable and competitive price. In addition, the

4. vintage clothes from Asian countries are stylish.
This will enable the company to sell products more
easily.
The products that the company will sell include a
wide range of vintage clothing products such as
shirts, troursers, skirts, dresses, blouses, jackets,
evening gowns, etc… (in various sizes from s to
XXXL, and made from various materials such as
satin, chiffon, linin, cotton, silk, polyester, denim,
wool, and so on.) However, the company will focus
on fashionable but casual outfits because this kind
of outfits are sold in high prices in England.
Business Objectives
Doing the business, the company aims to
accomplish the following business objectives:
1. To generate total income of 350,000 pounds
within the first three years;
2. To run a sustainable business with consistent
growth rate each year; and
3. To expand the business from London to
other urbans in other countries such as New
York (U.S.), Tokyo (Japan) and Sydney
(Australia).
Current position
Currently, the second-hand vintage clothes market
is in the growth phase because there are some
competitors in the market such as ‘Trashy Flowers’
(http://www.trashyflowers.com/shop/) which is a
wholesaler of used vintage clothes. However, the

5. number of used vintage clothes wholesalers in
England is still small. Thus, the company still has
chances to get some shares of the market. This is
the important feature of the growth phase- the
market is quite stable and there are few
competitors, but there are also opportunities for
new players to enter the market providing that the
demands can be increased (Heizer and Render,
1999).
The company has started its business by gathering
second-hand clothes from Thailand and contacting
the shipping company which will ship the products
to England by ships. The market of the second-
hand apparel in Englad is growing, the empirical
evidence of which is the great number of second-
hand suppliers most of which are from Mainland
China and European countries
(http://www.alibaba.com/showroom/second-hand-
clothes.html).
There are also many used clothes wholsalers in UK
such as ‘Trashy Flowers
(http://www.trashyflowers.com/shop/)’ and ‘Glass
Onion Vintage
(http://www.glassonionvintage.com/)’. However,
the products from these suppliers are still costly;
hence, the company’s products which are from
Thailand are supposed to be capable of competing
with those products in terms of prices and styles.
SWOT Analysis

6. Strength
The company can compete with other second-hand
apparel vendors by dint of several factors, namely,
1. The company can buy second-hand clothes
in very low prices, ranking from around 0.2
pound to 1 pound, depending on the quality
and style of the clothes;
2. Even though being a wholsaler, the company
buys and sells just selected goods, so every
single piece of products bought and sold has
been selected;
3. The company’s products are stylish;
4. The company can find suppliers who sell
cheap products to the company, such as
vendours in Bangkok and in Rong Kluer; and
5. The company can adjust the size of the
clothes so as to fit the sizes of English
people.
Weakness
However, the company’s business also has some
weak points, which are:
1. The shipping of the goods take a long time
from Bangkok to England;
2. The fee for the shipping service is expensive;
3. The shipped goods subject to applicable
customs and taxes;
4. During the course of the logistic, some items
might be damaged;
5. The company will have to endure the loss
stock because it may not be able to sell
some products; and

7. 6. No matter how stylish they are, second-hand
clothes are belived to be cheap.
Opportunity
The opportunities that enable the company’s
business yo become properous are:
1. Vintage clothes are ‘in’ and can be sold in
high prices; and
2. Thai baht is cheaper than English pounds,
so, buying the products in Thai baht and
selling them in English pounds, the company
will enjoy the margin caused from the
currency exchange.
Threat
The threats that will hinder the company’s
operations are:
1. The downturn of the global economy will
make people spend less money;
2. The concern about health issues (some
customers might not buy used clothes
because of these issues);
3. When the value of the English pound drops,
the company will have less revenue; and
4. The quality and styles of the products are
inconsistent because sometimes, suppliers
might not be able to supply the products that
the company really want.
Growth plan
Business growth is related to every aspect of the
business such as the investment plan, the accurate
estimate of profits and expenses, the management
of buisness, product quality and personnel.

8. Thus, in the following part of this report, such
aspects will be discussed.
As mentioned afore, the company will experience
problems concerning logistic and time spent on
logistic. This business plan will enable the company
to run its business without spending too much time
on the waiting for the shipped products which is a
cause of wastes (Heizer and Render, 1999).
In addition, the trasportation is also another factor
that causes expenses for the company.
Transportation can cause expenses on vehicles, fuel
and labour. It is another major waste that needs
management (Heizer and Render, 1999).
Implementing this business plan, the company aims
at the 10% annual increase of sales, and the total
revenue of 350,000 pounds by the end of the third
year of the operation (the total revenue from year 1
+ year 2 + year 3).
ดูในส่วนของ Finance นะคะ

9. 3. Business strategy
In this section, all the business schemes and
operations implemented here will be discussed. This
includes the overall business scheme which will be
referred to as the strategic plan of the company.
Vintage Second-Hand Clothes is emphatic on
wholesaling used apparel to customers in England
by relying on the business-to-business sales.
Therefore, the company will make trade contracts
with customers so as to supply lots of products to
customers in specific timeframes, e.g., every year,
every quarter or every season. The company will
have sales representatives contact customers
directly by walking into the customers’ shops or
offices and present the company.
In addition, the company will use the promotion
and sales via online channels such as a Facebook
page, blogs, e-mails and paypal system. This online
operation will be useful especuially in the case
where the company cannot sell some items and has
stocked them for a long period. In that case, the
company will promote such items and retail them
online.
The company divides its business plan into two
phases. The first phase is the plan for the first year
and the other phase is the plan for the next two
years.

10. In the first year, the company will emphasis on
ladies’ outfits by focussing on women’s bloses, tops,
dresses and gowns because women are believed to
be interested in clothes more than men. This is
because the company realises that womenswear
market is larger than meanswear one and that
women are more liable to buy clothes than men.
Samson and Daft (2005) suggested that the
company should be aware of certain matters when
setting a set of business strategies. Such matters
are (1) potential new entrants which include capital
requirements and business scales; (2) bargaining
powers of buyers; (3) bargaining powers of
suppliers, (4) threats from substitute products and
(5) rivalry among competitors.
To learn about these matters, the first thing the
company should do is to research on these matters
by observing the existing players in the market.
Having observed both the wholesalers and retailers
of second-hand clothes in England, the company
realised that most sellers, although selling their
products in a lot, sell their products in a high price,
for example, Trashy Flower sells its products in a
dozen in the price of 100 pounds (approximated
price) which is around 8 pounds an item
(http://www.trashyflowers.com/shop/). At the same
time, many sellers sell cheap products with normal
styles. This may not be enable the company to
compete in the market.

11. Therefore, the company decides to sell stylish
clothes in cheap prices by dividing products into
three categories, namely, the category of shirts and
skirts, the category of mini and middie dresses
(cocktail dresses) and blouse, and the category of
luxurious evening gowns.
The price of the product of each category is
different from each other. A product of the first
category costs 10 pounds, one of the second
category will be sold for 20 pounds and one of the
last category is worth 50 pounds.
To differentiate its products from competitors’, the
company will concentrate on clothes produced,
made and manufactured in Asain countries lest the
products of the company would be the same as
those sold by competitors.
The company will also do a research work to learn
about the styles that most prospected customers
prefer such as printed dress, mini dresses; and the
owner of the company or the owner’s relatives will
go to the places where second-hand clothes are
sold in cheap prices such as Ratchada Night Bazarr,
Rong Kluer Market (located near the Thailand-
Cambodia frontier), Jatujak Week-End market and
so on to select the products piece by piece. This will
enable the company to have just the products that
can be sold.

12. After selecting enough products, the company will
promote the products on websites or blogspots. In
addition, the owner of the company or the sales
representative might make direct approaches to
customers in UK so as to inform them about the
company and the products. Receiving an order, the
company will have all the products shipped by ship.
This process might take around 2 months which is a
long period but it is inevitable. However, if any
customer requires faster delivery, the company will
have the products sent by air. This process might
take just a week but the fee is higher. ปรกติส่งทาง
เรือก็สองเดือนแล้วนิ
As for the plan for the next two years, it will start
with a research work on the preferences of the
people. This information will enable the company to
understand what can be added to the product list,
such as shoes, acessories, men’s shirts and men’s
suites. Then, the company will find additional
products to sell to customer.
Also, the company will expand its business to other
urbans such as New York (U.S.), Paris (France) or
many other cities. This will increase the sales and
revenue of the company.
In the phase, the company is supposed to have
some cash flow (the money obtained from selling
the products in the first year); therefore, the
company can invest more money in promotion
campaigns.

13. In addition, the strategic and action plan for the
next two years will include several marketing
activities such as to give 20% discount for any
customer whose order is greater than 1,000 pieces
per order.
Marketing activities will create loyalty in old
customers and attract attention of new ones; thus,
in these two years, the sales volume of the
products is expected in increase more than10%
each year.
Core values
The company puts its emphasis on selling good and
stylish second-hand vintage outfits to customers in
England. Therefore, all the items sold by the
company must look unique and stylish.
Furthermore, the company will never sell copied or
plagiarised products such as fake Louise Vuitton
products lest the company would experience legal
problems.
4. Marketing
As mentioned afore, the company will concentrate
on business settlement in the first year; thus,
during the year, the company will promote its
business on Facebook page, blogs writtem by the
owner of the company and brochures. In the first

14. year, thus, the company will create customers’
awareness of the company.
The company will also make direct approaches to
customers in UK (especially London) so as to
introduce the business and pursuade the customers
to buy the products.
As a wholesaler, the company will sell at least a
dozen of products per order; however, the company
will emphasise the motto ‘The More The Cheaper’
so as to urge customers to buy more.
After the first year, in the next two years, the
company will carry out more marketing activities so
as to keep old customers and to attract new
customers at the same time.
Distribution channels
The company will sell products online via Paypal
system because it is based in Thailand but the
customers are in England. Online payment system
is a convenient and safe system for the business.
The tactics that the company will implement are
divided into two phases: the first year phase and
the next two years phase.
As for the first year phase, the company (the
owner) will introduce the business on Facebook

15. web-page, blogspots and websites. In addition, the
company will approach some retail shops in
England so as to promote the business.
The tactics that the company will use in the next
two years are related to the prices of the products.
In other words, the company will use price factor to
keep old customers and to attract new ones.
However, the company will not just decrease the
product prices by holding a sale season. Rather, the
company will hold a marketing campaign that
encourage buyers to buy at least 1,000 pieces per
order to receive 20% discount.
In addition, the company will offer cheap size
adjustment services (5 pounds per piece) whereby
customers can choose the clothes they want and
ask the company to adjust the size of the items
they order. This can be done because the fee of
size adjustment services in Thailand is very cheap
(not more than 2 pounds a piece). This service will
enable the company to differentiate its business.

16. Operational Costs
The company will have so many expenses during this
year. These expenses are expense for legal activities (to
registered the company) concerning business settlement
and formation (as required by the Business Registration
Act of Thailand B.E. 2499 (1956) and B.E. 2549 (2006)
and other applicable laws) and accounting activity. The
company will control the invested money to be no more
than 10,000 pounds.
In addition to the budget for starting the
business, the company will have some other
expenses such as the shipping fee, the
customs and taxes, the warehouse rental fee,
the staffs’ wages and the transportation fee
(for the delivery of the products to the
customers and for the business owner’s trips
to England, Cambodia or China to buy and
sell products).
The expenses of the second-hand clothes and
the expenses from the shipping of the
products and the trasportation as well as the
customs and taxes vary accordingly to many
factors such as the total weight of the
products, and the policies of Thailand and
England ; thus they can be regarded as the
variable cost and will be averaged for each
piece of product, which should not be more
than 5 pounds a piece.

17. The rental fee of the warehouse (around 500
pounds a month) and the staffs’ wages (around
300 pounds per person per month) are regarded
as the fixed cost because the company has to
pay an exact amount of money each month
for these expenses.
In addition, the company plans to spend not more
than 300 pounds a month on electricity and water
supply (the warehouse is in Thailand).

18. 5. Team and management structure
Skills, experience, training and retention
The company will rent a warehouse in Thailand and
will build a small office where the products are
adjusted (size adjustment), fixed, cleaned and
stocked. Thus, the company will hire 8 operation
staffs to do all the tasks and 2 other staffs to do the
Quality Control tasks.
Both the production staffs and the QC ones will be
trained so as that they will know the company’s
standards and be able to judge whether a piece of
product can be accepted or not.
In addition, the company will hire 2 security staffs
(one for the day time and another for the night
time) from a supplier. The security guards from the
professional suppliers will be well-trained; thus, the
company need not train them.
However, the company will, on the daily basis,
provide a check-list for each staff and ask the staff
to check the activity that he/she has performed
during that day.
As for the product selection, the owner of the
company will be incharge of this task so as that all
th eproducts will be what the company really wants
to sell.

19. Management systems
Th ecompany will apply the MRP (Material
Requirements Planning) principle (Heizer and
Render, 1999) which suggested that everything has
to be stocked so as to be delivered to the
customers in an immediate manner. In this case,
there is no material but the owner has to stock the
products by buying them in a lot at a time, which
will enable the owner to save money spent on the
trip to thailand (to buy products) and to ship the
products from Thailand to England because the
logistic fee will be charged by weight not pieces of
shipped items.
To manage the inventory, the owner has to check
how many products are stocked at the first place
and monitor the sales of the products to check how
many products are left in the inventory.
To manage the products left in the stoock for more
than a specific period, such as one year or three
months, the company will mix them with some
popular products and ask the customer to buy that
lot of products in a special price (such as 90% from
the actual price).
Otherwise, the company might retail the left-over
products by adjusting their sizes or modifyoing their
styles so as to make them more interesting. This
will enable the company to sell such products even
in higher prices.

21. 7.Financial budgets and forecasts
The company has planned to budget 10,000 pounds
for the settlement of the business. This 10,000
pounds will be spent on legal activities, accounting
activities and equipments (computer). For the each
of the latter years, the budget will be 10,000
pounds which will be for promotional activities (the
discounts, and other events) and other matters
such as accounting activities.
In addition, the company has to bear the variable
cost of each product. This variable cost consists f
the price of the product, the averaged shipping fee
and the tax (customs) for eaxh piece of product,
which should not be more than 5 pounds because
the company will import a ton of product at a time.
As for the finance issue, the company will analyse
the break even point at the first place to see how
many products should be sold in order to meet the
break even point.
The formula to calculate the break even point is
Q = FC / (UP - VC)
where:
Q = Break-even Point, i.e., Units of production (Q),
FC = Fixed Costs,
VC = Variable Costs per Unit

22. UP = Unit Price
Therefore,
Break-Even Point Q = Fixed Cost / (Unit Price -
Variable Unit Cost)
(http://home.ubalt.edu/ntsbarsh/Business-
stat/otherapplets/BreakEven.htm).
From the formula, the break even point of the
company is
(Assuming that all the products are sold for 10
pounds; the fixed cost is the budget of the first year
(10,000 pounds), the warehouse rental fee (500
pounds * 12 months = 6,000 pounds), the
electricity and water supply (300 pounds*12
months = 3,600 pounds) and the wages of all staffs
(300 pounds*12 staffs*12 months = 43,200
pounds). Therefore, the fixed cost is 10,000 +
6,000 + 3,600 = 43,200 = 62,800 pounds). The
variable cost is the price of each product+ the
averaged shipping fee and tax for each product +
and the postal service for delivering each product to
each customer, which is estimated to be 5 pounds.)
Q = 62800/ (10-5)
Q = 62800/5
Q = 12560
Therefore, the company must sell at least 12,560
products in the first year unless it wants to have a
deficit.
For the latter years, the company plans to budget
5,000 pounds for accounting activities, the

23. maintenance of the equipments and the bonus for
the staffs. The variable cost is still the same.
Thus, the break even point (Q) of each of the next
two years is
Fixed Cost = 5000 + 6000 + 3600 + 43200 =
557,800 pounds;
Variable Cost = 5 pounds;
Product Price = 10 pounds;
Q = 57800/ (10-5)
Q = 57800/5
Q = 11560
Thus, for the second year and the third year, the
company needs to sell at least 11,560 pieces of
products each year lest it would have a deficit.
Since the total income for the three years must be
350,000 pounds, the number of the products to be
sold is (assuming that a product costs 10 pounds)
350,000/10 = 35,000 pieces in three year, or
35,000/3 = 11,667 pieces a year. However, if the
company sells just 11,667 pieces of products in the
first year, it will have a deficit.
The company has estimated its income for the first
year to be 150,000 pounds. The revenue is
estimated to increase by 10% each year; therefore,
the estimated revenues for the second and the third
years are 165,000 pounds and 181,500 pounds
respectively.

24. Thus, granting that a product costs 10 pounds, the
company must sell at least 15,000 pieces of
products in the first year, 16,500 pieces in the
second year and 18,150 pieces in the third year.
References
Book References
Heizer, Jay and Render, Barry (1999), Operations
Management, 5th ed., New Jersey: Prentice
Hall.
Somson, danny and Daft, Richard L. (2005),
Management, 2nd ed., Victoria: Thomson
Learning Australia.
Online References

25. Appendix 1
Balance Sheet (Predicted)
As at 31st December, 2011
Assets
English Pounds
Current Assets
Cash and Cash Equivalents
150,000.00
Non-Current Assets
Other Current assets (Equipments and
Brochures) 10,000.00
100,000 pieces of attire (5 pounds each)
500,000.00

26. Total Assets
660,000.00
Appendix 2
Cash Flow Statement
For Period of 1st January 2011 to 31st
December 2011
English
Pounds
Total Revenues
150,000.00
Expenses

27. Legal Activities
Equipments
Accounting Activities
10,000.00
Staffs
43,200.00
Warehouse
6,000.00
Electricity and Water
3,600.00
Total Expenses
66,400.00
Net Profit (Loss)
83,600.00
Appendix 3
Sales and Profit Forecast for the Second and
the Third Years

28. * With the 10% annual increase
** The estimated figures are in English
Pounds
1st Year 2nd Year 3rd Year
Total 150,000.0 165,000.0 181,500.0
Income 0 0 0
Expenses
Expenses 10,000.00 5,000.00 5,000.00
on
Business
Settlemen
t and
Promotion
s
Staffs’ 43,200.00 43,200.00 43,200.00
Wages
Warehous 6,000.00 6,000.00 6,000.00
e
Electricity 3,600.00 3,600.00 3,600.00
and Water
Supply
Total 66,400.00 61,400.00 61,400.00
Expense
Annual 83,600.00 103,600.0 120,100.0
Profit 0 0
Total 307,300.00
Profit