Business Plan Business Plan

BLOOMDesigner Kids Wear

Presentation by:

Kriti MehtaKritika Dawar

Miriam J TStuti Goel

Executive SummaryExecutive SummarySplurging for kids is a fun thing to do-toys, chocolates, games, books, clothes…you name it. Except that

one thing that really struck us- when shopping for clothes, there is a serious dearth of good occasion wear for kids. Finding suitable clothing for marriage functions, birthdays, festivals etc for kids- all prove to be a task that sends one running in circles.

 Our idea is to launch exclusive occasion wear for kids between 3-12 years-for both western and Indian

clothing, while also providing matching accessories that may go with the outfits. The idea for providing occasion wear for kids has not been exploited to its full potential and since we intend to provide all the products under one roof we will have an edge over the other players in the market. Our mission is to provide high quality exclusive clothing for kids, in the perfect blend of fun and fashion and also providing suitable accessories while offering world class services and convenience.

 Catering to the upper middle class, our products are priced between Rs 999 to Rs 3500, market

skimming being our strategy. Outsourcing our production, the management will ensure that products are manufactured keeping ISO 9001 certified and total quality management practices which will ensure top quality products. Our manufacturing processes ensure six sigma ratings thereby claiming negligible defects in our processes (less than 3.4 in every million). We propose to start with a capital of Rs. 4 lakhs, while taking a Rs. 6 lakh loan from SBI. A property jointly owned by the founders of this business located at Karol Bagh, now valued by the bank at Rs. 10 lakh will act as collateral for the loan.

 The four partners and promoters behind the group have exceptional knowledge, expertise and

experience in the field of fashion and designing. We intend to hire a marketing team and accounts personnel. The strength of the business lies with the design team who will create products that will break the mould of the existing fashion scenario of kidswear. We propose to start with two stores- one in Saket and the other in Gurgaon- both in MGF Metropolitan mall. For promoting the store, we would offer inaugural discounts, complimentary gifts for kids; while advertising in cartoon channels and hiring child artists as our brand ambassador.

Company OverviewCompany Overview

Mission Statement To provide high quality exclusive clothing for kids, in the perfect blend of fun and fashion and also providing suitable accessories while offering world class services and convenience.

Goals and Objectives •To provide occasion wear for children. This has been an opportunity that has not been exploited to its full potential. There are many brands that offer kids wear but very few that offer designer kids wear especially for occasions. Our brand, thereby wants to make the best use of this opportunity, by offering a variety of designer kids wear for different occasions•To provide the benefit of availability of all products under one roof to the consumers. In order to match with the outfits available, the store also provides a range of accessories for every occasion and theme.•To open up retail stores in all metropolitan cities of the country

Values Bloom believes in being present at the right place, at the right time and providing the right services to the people. The group has a dedicated and well qualified team of experts who have taken the right step in entering into this market which upholds huge potential

Foundational Values Resultant ValuesIntegrity and honesty Customer Service Innovation ExcellenceCustomer orientation EmpowermentAccuracy AchievementCommitment Community BenefitEnthusiasm Competitive EdgeResponsiveness Market Leader

Relevant Skills and expertise

The four partners and promoters behind the group have exceptional knowledge, expertise and experience in the field of fashion and designing. Following are their details regarding their achievements so far:

Kriti Mehta: Kriti started her career in fashion by completing her Masters Degree in fashion design in Indian Wear from Pearl Academy of Fashion, New Delhi. After graduating, she worked with the renowned brand name Satya Paul for two years. Within a year she was promoted as the lead designer under Contemporary print designs and managed a team of 5. She then took a break and pursued a one year management course specializing in fashion retail and marketing. She then got together with her friends and started this venture.

Kritika Dawar: After graduating from a Delhi University with a degree in commerce, Kritika wanted to do more with her life then to pursue an MBA and follow the rat race. Having a flair for designing she got selected to pursue Fashion Designing in Indian Wear from Pearl Academy of Fashion, which she cleared with flying colors. She then worked with the famous designer Gaurav Gupta (Akaaro) for two years. She then went on and completed a management degree in retail and marketing.

Miriam J. Thomson: After completing an Honors Degree in Economics from Jesus and Mary’s College, Delhi University, Miriam completed a short term course in Adobe Illustrator from London College of Fashion. She also completed a summer course of stitching and sewing from Central St. Martins, London. Apart from this she also pursued a month course on introduction to Design from IED, Milan. Having a rich exposure and a multinational experience in this filed, she then pursued her design degree from Pearl Academy of Fashion in Indian Wear. She then worked with Designer Sanchita in FDCI 2008 and Designer Amber Firoz in Delhi Fashion Week. She also underwent a one month internship in Arvind Mills.

Stuti Goel: After having completed a Hotel Management degree from IHM, Pusa, Stuti enrolled herself in Pearl Academy of Fashion to pursue her Masters in Indian Wear. She worked for the famous designer Amit GT in FDCI 2008 and Julie Scarland 2009. She also pursued a month long internship with the company Yorks. After having gained such work experience, she went on to pursue a management degree in fashion merchandising and retailing from London College of Fashion.

Resources Required •Designing will be done in house;• The company will be employing around 6 employees to look after the retail outlets.• The company will be outsourcing the finished products.

Operations and Operations and Management PlanManagement Plan

CEOCEO

Director 1 Director 2 Director 3 Director 4

Accounts Manager Marketing ManagerApparel Design Director

Graphics Sr. Designer

Apparel Sr. Designer

Trend & Forecast Head

Apparel Designer

Forecast Team

SamplingTeam

Customer Service Manger

Sales

Regional Sales Manager

Promotional Sales Manager

Responsibilities of the ManagementResponsibilities of the ManagementApparel Design Director -Manage a diverse team of product designers, creating ranges for kids’s exclusive

occasion wear. -managing apparel and graphic designers through the design and product creation

process, providing direction and feedback. -Working on Seasonal design stories and creation. -Work closely with Sr. designers to translate seasonal concepts to product lines. -Attend fit and proto review sessions; make revisions to artwork & design tech

packs. -Identify solutions and resolve costing/margin issues. -create a strong synergy between design, development and product marketing.

http://www.linkedin.com/jobs?viewJob=&jobId=757405

Accounts Manager -ensuring that funds are spent and managed according to the goals, objectives and

mission of the organization. -allocation of expenditures is appropriate to the function identified for the account. -allocation of expenditures is appropriate to the function identified for the account.

Marketing Manager -Establishes marketing goals to ensure share of market and profitability of products

and/or services. -Plans the organization's advertising and promotion activities including print,

electronic, and direct mail outlets. -Guiding the customer service manager to maintain positive customer service

relationships with all customers. (https://www.jobdescription.com/content/complet1.asp)

Industry/Market AnalysisIndustry/Market Analysis Children below 18 years account for more than a third of

India’s population estimated at 950 million in 1995. Today, young children (0-6 years) account for 17.5% of India’s population, an estimated 166 million.

Close to 27 million children are born every year – and it is estimated that the same numbers will be born every year, as India’s population is expected to rise (http://wcd.nic.in/udisha/htm/catalogue/2.doc)

SIZE AND STUCTURE

According to the India Apparel Report, 2008 (Images Year Book, Vol IV), the size of kidswear market is estimated to be at Rs. 30, 510 crore

Although, most of it is dominated by the unorganised sector, the organised sector (i.e.brands), however, is growing at an average of 20 per cent against the 30-35 per cent for the overall industry.

Clearly, there is a huge potential and space for more organised players to come in and take a larger bite of the market

Customer Analysis Customer Analysis Characteristics of the Indian Kids Wear Characteristics of the Indian Kids Wear

MarketMarket Branded kids apparels is one of the most fascinating

and complex facets of retailing Large variety, segmented customer profile, changing

tastes, children’s buying behaviour, influence of parents and media makes a huge difference in the purchase decision

Apparel, by its very nature, thrives on variety and more so in the case of kids. Besides, kids have a natural tendency to outgrow their clothes very fast, necessitating change, which in this case implies new offerings

A cursory analysis of the kids buying behaviour indicates that they are an independent customer group displaying considerable ‘pester power’ that they have inculcated and now seem to be exerting.

Additionally, kids are highly self conscious and can be easily affected by peer pressure, at a very young age, and thus can be very demanding, often at the cost of the parent’s peace of mind if not their pockets. It is not uncommon to hear a kid throw a tantrum to the effect…” I don’t want to wear this….”

Today’s kids are more fashion conscious, and are ready to experiment with clothing.

Increase in the amount of disposable income, and retail blitz has brought a sea change in the Indian kids apparel market.

With kidswear being considered as a part of the lifestyle segment and a strong emphasis being placed on brands, this segment proves to be a potential successful business (http://www.scribd.com/doc/18795157/Indian-Kids-Wear-Market)

Children's clothes in India started out as miniature versions of popular adult wear. Internationally, children's wear has its own trends forecasting, trade shows and a production, marketing and publicity set-up that rivals the adult business. (http://www.scribd.com/doc/18795157/Indian-Kids-Wear-Market)

A huge volume of kids apparel in India is being dominated by local and unorganized players. This gives an excellent opportunity for the organized players to lay a strong foundation in this segment. Indian market is now moving towards an international look in terms of children’s apparel. (http://www.scribd.com/doc/18795157/Indian-Kids-Wear-Market)

CompetitorsCompetitors So far, the organised market was dominated by Lakhani-So far, the organised market was dominated by Lakhani-

owned Gini & Jony Apparels with a 30 per cent market owned Gini & Jony Apparels with a 30 per cent market share, followed by Weekender Kids and Ruff Kidsshare, followed by Weekender Kids and Ruff Kids

Pantaloon has entered into a 50:50 JV with Gini & Jony to Pantaloon has entered into a 50:50 JV with Gini & Jony to set up a retail chain to market kids’ apparel. set up a retail chain to market kids’ apparel.

Raymond recently introduced its maiden kidswear brand Raymond recently introduced its maiden kidswear brand —- ‘Zapp!’, with it’s first outlet running in Ahmedabad. —- ‘Zapp!’, with it’s first outlet running in Ahmedabad.

DS Corporation, which owns 14 retail stores in India for DS Corporation, which owns 14 retail stores in India for children, and has brands such as Ruff Kids and Ruff children, and has brands such as Ruff Kids and Ruff Baby, is set for a major expansion plan. Baby, is set for a major expansion plan.

What’s more, even jeans companies such as Spykar, What’s more, even jeans companies such as Spykar, Pepe Jeans and Killer are trying to climb onto the Pepe Jeans and Killer are trying to climb onto the bandwagon. bandwagon.

International kids wear brand such as Tommy Hilfiger, International kids wear brand such as Tommy Hilfiger, Freelook Junior, Adam Kids and Walt Disney are making Freelook Junior, Adam Kids and Walt Disney are making efforts to foray into Indiaefforts to foray into India

STP STP Segmenting the market on the basis of

demographic characteristics i.e. age of kids,

3-6 yrs 6-9 yrs 9-12 yrs

Our products are targeted at the middle and upper middle class segment of the society with our products’ price range between Rs 999 and above

The positioning strategy will be based on our efforts to make the parents as well as kids aware of our brand offerings and creating interests as well as desire to purchase our products

Positioning Positioning Following methods can be followed to

create effective positioning: For Parents:

Awareness about our product offerings stressing upon the “Occasion Wear” product lines (both Indian as well as Western)

One stop shop for designer occasion wear solution for every kind of occasion. Festivals, weddings, theme parties, birthdays … the point is to take the burden off the parents shoulders in providing them solutions to dress up their kids which other competitors are not offering

For kids: Highlight our Brand Name in all

promotional campaigns. Kids these days love wearing branded clothes

Associate our brand with something they can relate to … a famous cartoon character can be an example or a famous child artist can be hired as a brand ambassador

Marketing Mix Marketing Mix Product Our core product offerings are designer occasion wear

for children, for both Indian as well as Western Wear We also offer matching accessories with apparels like

hairclips, earrings, bangles, belts, shoes, caps and bags

Our products depict latest trends and designs as designed by our own designers matching industry standards and keeping in view the needs of our target customers, thereby making them visually appealing to the kids

The fabrics used in our clothing are pure forms and synthetics and nylons are not used at all

All our products and processes are ISO 9001 certified and total quality management practices followed by our company ensures top quality products

Our manufacturing processes ensure six sigma ratings thereby claiming negligible defects in our processes (less than 3.4 in every million)

Main Product LinesMain Product Lines Indian Wear

Girls•Lehenga Choli•Salwar Suit•Churidar

Kurtas•Blouses and

Sarees•Stitched

Sarees/Lehengas

•Kurtis

Indian Wear Boys

•Kurta/Pyajamas

•Sherwanis•Dhoti/

Kurtas

Product LinesProduct Lines Western WearWestern Wear

GirlsGirls• TopsTops• T-ShirtsT-Shirts• ShirtsShirts• SkirtsSkirts• ShortsShorts• JeansJeans• TrousersTrousers• JacketsJackets• Pullovers and Pullovers and

CardigansCardigans

Western WearWestern Wear BoysBoys

• TuxedosTuxedos• ShirtsShirts• TrousersTrousers• JacketsJackets• Waist CoatsWaist Coats• JacketsJackets• PullloversPulllovers

Place – Distribution Place – Distribution Our distribution pattern is fairly simple. All Our distribution pattern is fairly simple. All

manufacturing takes place in house in our manufacturing takes place in house in our factories conforming to strict quality factories conforming to strict quality standards of production thereby ensuring standards of production thereby ensuring high final product qualityhigh final product quality

Raw materials are acquired from well Raw materials are acquired from well known and established suppliers known and established suppliers

The warehouses are located inside factory The warehouses are located inside factory premises as we do not carry much premises as we do not carry much inventory levels due to the nature of the inventory levels due to the nature of the fashion industry as trends and designs fashion industry as trends and designs keep changing quicklykeep changing quickly

Currently, we have two retail outlets in the Currently, we have two retail outlets in the region of Delhi NCR region. Both outlets region of Delhi NCR region. Both outlets are located in Metropolitan mall in Saket are located in Metropolitan mall in Saket and Gurgaon.and Gurgaon.

Growth trends and Future Growth trends and Future PotentialPotential

The kids wear market in the country is mainly divided into two parts organised and unorganised, with the latter having a larger part of the market share. However, the organised sector is catching up due to their inherent advantages in their product offerings (i.e. quality, designs and trends) as well as increasing craze of brands amongst children

According to Global market review of children’s wear – Forecasts to 2012, the top ten global markets (which includes India) would account for an estimate of US $92.6 billion in children’s apparel retail sale

Indian kids apparel brands are creating a niche by themselves by changing the face of Indian kids wear in India

Industry experts predict that the market will further grow to reach Rs.45, 000 crore by 2013, with branded apparels contributing to a major share.(http://www.scribd.com/doc/18795157/Indian-Kids-Wear-Market)

The volume of market share of kid‟s apparels in the total apparel market is at 24.9%, as against a 15% share in 2005. (http://www.scribd.com/doc/18795157/Indian-Kids-Wear-Market)

Urban kid’s apparel market comprises about 60% of the total kidswear market. A research states that more than 30% of the country‟s population is below 15 years of age. The density of population makes kidswear to be one of the fastest growing segments in the Indian market scenario (http://www.scribd.com/doc/18795157/Indian-Kids-Wear-Market)

Pricing Pricing Our pricing techniques mainly follow Our pricing techniques mainly follow

Market Skimming techniquesMarket Skimming techniques As most of our products are made from As most of our products are made from

high quality fabric and depict latest high quality fabric and depict latest designs and trends in fashion, they are designs and trends in fashion, they are priced a bit on the higher side to avail priced a bit on the higher side to avail profit profit

The remaining product offerings which The remaining product offerings which are basic to industry standards and are basic to industry standards and some accessories are priced according some accessories are priced according to the value they offer to the consumers, to the value they offer to the consumers, thereby targeting the lower middle class thereby targeting the lower middle class as well as to compete with other players as well as to compete with other players in the marketin the market

Promotion StrategiesPromotion Strategies

Inaugural Discount on purchases for the first month in Inaugural Discount on purchases for the first month in order to increase brand awarenessorder to increase brand awareness

Complementary gifts for kids for the first few days of Complementary gifts for kids for the first few days of opening of the storeopening of the store

Further gift vouchers for purchases exceeding a Further gift vouchers for purchases exceeding a certain limitcertain limit

Advertising strategies would mainly aim at promoting Advertising strategies would mainly aim at promoting brand awareness amongst the parents as well as brand awareness amongst the parents as well as children as both play an equal part in purchasing children as both play an equal part in purchasing decisionsdecisions

Colorful television ads on cartoon channels or during Colorful television ads on cartoon channels or during special kids events in order to attract kidsspecial kids events in order to attract kids

Interactive advertisement on internet (on kids Interactive advertisement on internet (on kids websites) and TV .websites) and TV .

Designing advertisements in a way so as to project a Designing advertisements in a way so as to project a cooler image of kids wearing our brand of clothes in cooler image of kids wearing our brand of clothes in those commercialsthose commercials

Hiring famous child actors as our brand ambassadorHiring famous child actors as our brand ambassador

Financial PlanFinancial Plan

Saket Gurgaon TotalPer Day Walkins 40 60 100

Conversions (30%) 12 18 30* Outfit (50 %) 6 9 15* Shoes (20 %) 2 3 5

* Accessories (30%) 4 6 10

Monthly Sales Saket Gurgaon Total* Outfit 180 270 450* Shoes 60 90 150

* Accessories 120 180 300Total 360 540 900

BUDGETED PROJECTIONS - OCT 2009

Nov Projections have been increased by 5% and Dec have been increased by 15%.

CLOTHES OCT NOV DEC QUATERLY ACCESSORIES OCT NOV DEC QUATERLYBudgeted Sales 450 475 580 1505 Budgeted Sales 300 330 400 1030

Add: Desired Ending Inventory 48 58 65 171 Add: Desired Ending Inventory 33 40 45 118Total Needs 498 533 645 1676 Total Needs 333 370 445 1148

Less: Beginning Entry 45 48 58 151 Less: Beginning Entry 30 33 40 103Required Production 453 485 587 1525 Required Production 303 337 405 1045

Cost per Unit 800 800 1200 2800 Cost per Unit 250 250 300 800Sales Price Per Unit 1500 1500 2000 5000 Sales Price Per Unit 450 450 500 1400

Production Cost 362400 388000 704400 1454800 Production Cost 75750 84250 121500 281500Sales Cost 675000 712500 1160000 2547500 Sales Cost 135000 148500 200000 483500

Gross Profit 312600 324500 455600 1092700 Gross Profit 59250 64250 78500 202000

SHOES OCT NOV DEC QUATERLYBudgeted Sales 150 160 180 490 OCT NOV DEC QUATERLY

Add: Desired Ending Inventory 16 18 20 54 Total Production Cost 558950 601850 989700 2150500Total Needs 166 178 200 544 Total Sale Price 990000 1053000 1576000 3619000

Less: Beginning Entry 15 16 18 49 Total Gross Profit 431050 451150 586300 1468500Required Production 151 162 182 495

Cost per Unit 800 800 900 2500Sales Price Per Unit 1200 1200 1200 3600

Production Cost 120800 129600 163800 414200Sales Cost 180000 192000 216000 588000

Gross Profit 59200 62400 52200 173800

QUARTERLY PURCHASE BUDGET

COSTING PER UNITCOSTING PER UNIT

MaterialConsumpti

onWastage

+shrinkage(in%)Net

consumptionCost Per Mtr/Pc Amount

Fabric 1.5 9% 1.635 225 367.88

Buttons 6 5% 6.3 5 31.50

Fusing 0.25 5% 0.2625 20 5.25

Lining 1.25 5% 1.3125 35 45.94

Thread 1 NA 1 4 4.00

Main label 1 3% 1.03 3 3.09

Wash care label 1 3% 1.03 2 2.06

Price Tag 1 3% 1.03 2 2.06

Brand Promotional Tag

1 3%1.03 3 3.09

Price sticker 1 5% 1.05 1 1.05

Polybag 1 3% 1.03 1.5 1.55

Carton (10 PC per carton) 0.1 NA 0.1 15 1.50

468.96TOTAL DIRECT MATERIAL

Direct Labor Cost Per Unit CostCutting 30

Sewing 65

Embriodery 80Washing 5Finishing 15

Packing 5Any Other direct Cost 5

Total Direct Labor Cost 205

Direct Expenses Per unit costOutsorcing Cost 120

Total Direct Expenses 120

TOTAL DIRECT MATERIAL 468.96Total Direct Labor Cost 205.00Total Direct Expenses 120.00

Total Prime Cost 793.96

Total Prime Cost

BREAK EVEN ANALYSISBREAK EVEN ANALYSIS

ReferencesReferences

http://www.apunkachoice.com/scoop/fashion/20041026-0.html http://www.scribd.com/doc/18795157/Indian-Kids-Wear-Market www.corbis.com http://www.ventureintelligence.in/blog/2006/11/kids-wear-

market.html http://www.financialexpress.com/news/capturing-childrens-

apparel-market-in-india/184879/ http://www.financialexpress.com/news/capturing-childrens-

apparel-market-in-india/184879/0 http://www.scribd.com/doc/18795157/Indian-Kids-Wear-Market

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