GINNY

Couture House

BUSINESS PLAN 2018

GINNY CHANCHLANI
PGFD 2
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Introduction:
Ginny Chanchlani, a Haute Couture Designer and Proprietor of the label, Ginny was
born and brought up in Mumbai. Shortly after schooling from Maneckji Cooper and
graduation from Mithibai College, she enrolled at a fashion school, Pearl Academy
where she obtained a diploma in Fashion. Soon after she worked as an assistant
designer for one and an half year to gain utmost knowledge and experience before
she set up her own label in July 2018.

Executive Summary:
Ginny, label is an haute couture for women's that will open by July 2018. My
interesting and unique designs and exclusive personal style services, which include
a detailed Style Assessment, will ensure that my customers are served with the
highest and most exclusive designs. With a mission for a continuous quest for
craftsmanship, glamour and reverie. Perfection is also what our label strives to
implement during all the phases of his creations: from the concept to the conception
then the completion. Each garment is the result of a long and rigorous artisanal
savoir-faire that creates the ultimate experience in elegance.

Vision:

To generate new styles every season

To maintain profit margins at 15-20% through close attention to expenses and

cost of goods sold.

To drive awareness and build sales through mentions in both local print and
the nation's top fashion magazines

Mission:

To provide women with a boutique that offers a comfortable and approachable

environment.

To bridge gap between higher middle class and premium class.

To showcase quality, well-constructed patterns from prominent, cutting-edge

patterns.

To offer a variety of beautiful and high-end fashion accessories.

To help women understand clothing and styles go best with their unique
personalities.

To generate buzz and sales through top-notch exclusive services.

Keys to Success
1.

Having a good boutique and providing an overall shopping experience of an

atelier.

2.

Providing quality product and maintaining good relationships with vendors.

3.

Excelling customer expectations by creating value add services.

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Exclusive Haute Couture and Personalised Styling: Ginny Label will not only
provide exclusive designs but also provide services such as Style Assessments,
alterations, personal shopping, and customization to customers during store hours
and by personal appointments. Style Concierges who are trained within the image
industry will be available to customers on a daily basis. My innovative Style
Assessments and educational emphasis will aim in helping women develop their
personal styles that will enhance our reputation as a truly unique couture house.

Company Ownership:
The label is currently organized and developed by Ginny Chanchlani as a Sole
Proprietorship.

Products and Services:

Ginny Label will carry haute couture for women. The main aim of the label is to
bridge the gap between higher middle class and premium class e Kliek will also carry
designer fashion accessories such as Jamin Puech handbags, Achoo Panto scarves
and wardrobe accessories such as Tosca Delicate, sachets, lint brushes and various
De Kliek branded items.
Exclusive Personal Services:

Personality Style Assessment: The Style Assessment is a one-page quiz that

helps a woman determine the appropriate styles for her personality. The
assessment helps a customer define her personality by providing her style
words (e.g. engaging, romantic, modern) to choose from along with tips on
what clothing works well for her style personality. Style Icons are also
provided to help her visualize the appropriate look. There is normally a small
fee for the assessment, but customers are able to take the Style Assessment
for free at the Style Studio when they make their first purchase. After each
customer completes the quiz in the studio section of the boutique, she will
receive a laminated wallet card to carry around as a shopping reminder that
lists her style personality type, style words, style icons and clothing styles
appropriate for her.

Full and Self-Service "What's New" Bulletin : Behind the cash wrap area
there will be a bulletin board that is frequently updated and that lists and
displays the following details:

Featured Style - This will show a profile of one of the best-selling

designs

How to Wear - This will show how to wear a particular item for work,
weekend and going out

Coming Soon - This will feature items coming into the boutique soon.

Services - This will list all the additional style services that we offer
such as Style Concierges.

Style Concierges. I believe in bringing the best service to my customers. As

such, this will be a value added service for all my clients called Style
Concierges. In this I will be playing the role of an Image Consultant as well as
a personal stylist. I will be available to assist customers with their Style
Assessments, wardrobe planning, special orders and personal shopping. If a
customer is pressed for time, she simply can contact us to set up an
appointment and there will be someone there to greet and assist her beyond
normal business hours with her styling requirements.

Target Market:
The primary customers of the label include college students and professional
woman with spending capacity over 15K a month. Her main characteristics are listed
below:
1.

Demographics

Young woman (ages 22-35)

Household income over Rs.100,000 p.m.

College students and married women

Lives in a higher-income neighbourhood.

2.

Psychographics

Looks for exclusive designs but willing to spend money on quality, core items

Would like more time or help in understanding what clothing is right for her

She wants to look her best because she wants to feel good about herself as

well as make a good impression in her friend circle.

3.

Clothes Shopping Behaviours

Spends over Rs 15,000 for clothes each month

Shops at Boutiques, designers, and luxury brands

Wears evening wear gowns and dresses

Looks for exclusive designs and fabric quality.

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Looks for classic, elegant designs overtime.

She cares about how she presents herself, enjoys fashion, and looks for quality over
quantity

Competition:
There are a number of Haute Couture Designers that will pose a threat to the
survival of the label. One such example is,
Falguni & Shane Peacock - Indian Designer
Designer duos Falguni & Shane Peacock have carved a niche for themselves. They
launched their flagship store `Peacock Pret`, retailing for both men and women wear.
This label is a three-year-old brand and it caters to both the trendy and elite. This
young label has won a very enthusiastic international repute with their high-end
couture and diffusion garments. They specialize in trousseau and custom-made
garments. They specialize in corsets, ponchos, slip dresses, embroidered shirts,
embroidered trousers and jackets. Their look is more fusion, western cut and Indian
work with a more international appeal.

Haute Couture Clothing - India :

The Indian fashion clothing industry is growing at an astonishing rate, which is
corroborated by the sharp increase in the number of fashion events being hosted in
the country. The rising income levels and changing tastes in clothing among people,
emergence of brands, acceptance of worldwide fashion trends and international
recognition of Indian designers are some of the factors that have provided a boost to
the fashion industry within the country. With the rise in affluence among a certain
section of the countrys population, a good degree of brand consciousness has
emerged among this category. This has further fuelled the growth of the fashion
clothing or haute couture clothing segment. Indias strengths as a significant hub of
the global fashion industry lie in the quality of its raw materials and the cheap costs
of labour.

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Strategy and Implementation/ Marketing Strategy Summary:

Based on research conducted on women's shopping behaviours as well as my

personal experiences, the following marketing strategies will be employed:

Develop strong relationships with customers by utilizing Style Assessment

and offering services to help each woman determine the right clothes for her.
Provide educational materials and programs that enable customers greater

decision-making confidence.
Build awareness of brand and services to exemplify strong store reputation.
Provide customers with a sense of access to "inside information" and harness
the power of a woman's personal network by leveraging marketing collateral

designed for sharing and encouraging referrals.

Utilize personal referrals and stylists to build traffic.
Publicise the label through the website and other social medias like

Facebook, Instagram etc.

In future, the Marketing And PR will be done by hiring a professional
individual or firm to be in contact with fashion magazines such as Glamour,
Vogue, Instyle and Harper's Bazaar to announce the debut of new collections
and increase visibility amongst Ginny's target market.

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4PS OF MARKETING

Product: To overcome the chances of having a same outfit as another

woman Ginny Label ensures only one piece per style. Additionally, we will
provide alterations, personal shopping services and special ordering for our
customers. Special Orders are a huge benefit to us as we excel in providing
unique designs to every client.

Pricing : 42% of women with a 25K monthly income agree, "When I really
want something, price is no object." At our label, we are very committed to
bringing high quality couture to women and the prices will reflect a range of
mid-to-high pricing. Average price points will be around 10,000-40,000. To
maintain profit margins of 20%, I will negotiate and focus on obtaining an
average 61% retail mark-up for all garments.

Place : The boutique will be located in an upscale neighbourhood in Mumbai.

A significant proportion of the target market lives in this area. I will work with
the local merchants association as well as local publications to generate PR
and shopping in the neighbourhood. I will also attract women from throughout
Mumbai as well as the few women who come to Mumbai from out of town to
shop. I intend to launch the label by July 2018 and develop a website where
fashionable customers throughout the country can go to learn more about the
boutique, the Style Assessment, how to wear certain items for day, evening
and weekend, and make personal shopping appointments.

Promotion : Most women are intimidated by upscale fashion boutiques and

designers, as many of them can come across rude and snobby. Additionally,
the sales pressure from an associate can be a huge turn-off to a potential
customer as it doesn't allow a woman to browse and get to know the store's
products at her own pace. Hence I will have three store associates, or "style
concierges:" myself, an assistant manager, and a PT employee (both still to
be hired).

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Finance

Start-up costs include inventory for the first month, are estimated at Rs 2,
00,000 of which I will inject 100%. An additional injection of approximately Rs 2,
00,000 will occur by July 15 of Year 1.

Annual gross sales are projected to grow from 50,000 in the first year to over
Rs 160,000 by Year 3, with approximately 10% from customer special orders.
These Sales forecasts are approximately three-quarters the average of
benchmarked Haute Couture boutiques at their start. Net profits are expected at
approximately 6% through 2018, with reinvestment of 5% for growth initiatives.

I will hold Cost of Goods Sold at roughly 39% of sales revenues; as we intend
to maintain this approximately 61% markup throughout the next five years.

Due to the demand for up-to-date fashions, inventory turns are projected at 5,
which is higher than the industry average of 4.

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Start-up Summary:
Total start-up expense comes to Rs. 2,00,000. Given below is a complete
breakdown of all start-up assets that are needed, as total start-up requirements:
1. Rent (50,000 p.m)
2. Equipment (computer, sewing machine, steam iron, pattern making table )
3. Salary (Pattern Masters, Tailors and other staff)
4. Interiors
5. Logo Design
6. Label Hoarding
7. Visiting Cards
8. Customised packaging bags and warping paper
9. Website Cost
10. Copyright Charges
11. Fabrics
12. Embellishments
13. Customised shoes and bags
14. Electricity
15. Other Miscellaneous expenses

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Chart: Start-up
Start-up

2,00,000
1,80,000
1,50,000
1,20,000
100,000
80,000
50,000
20,000
$0
Expenses

Assets

Investment

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Loans

Management:
With over 2 years experience in marketing and retail, I have gathered the expertise
to complement and grow my own business. Our advisory team will hold expertise in
retail accounting, retail merchandising, legal contracts, fashion and design. A
detailed project plan has been created and all tasks are on schedule.

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Risks and Contingencies

As with any start-up business, my label is subject to certain risks, both known and
unknown, including changes to general economic conditions, changes in the level of
consumer spending on or preferences in apparel, the company's ability to
successfully implement various new supply chain and merchandising systems in a
timely and cost effective manner, unseasonable weather trends, and greater than
planned operating expenses. Some of the more predominant risks include:

Style Piracy:

Because design and styling ideas are such important

competitive weapons, they are often stolen. Fashion piracy is so common

that it is considered an integral part of the garment trade. While trademarks
and names can be registered, laws against style piracy are of little practical
value. Copying creative work is standard practice for some firms, especially
the smaller and budget houses. A style produced by many manufacturers and
"knocked-off" at successively lower price levels is often referred to as a
"ford." This term is often applied to runaway best-sellers as well. To mitigate
risk from style piracy, I will ensure that all of its designs are copyright
protected. To date, this is the best solution to design piracy because the
application process is cheap and expeditious, and the copyright protects the
creative works of fashion designers for a limited term under copyright law.
Due to the short life span of apparel designs, patent protection is neither
available nor appropriate.

Economic Stability Risk: Changes in the economy will require that the
company adjust its operations to account for financial and economical
fluctuations.

Operational Risk: Like all large companies is exposed to many types of

operational risks, including the risk of fraud by employees or outsiders,
unauthorized

transactions,

and

errors

relating

to

computer

or

telecommunications systems. To mitigate operational risks, I will maintain a

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system of controls that is designed to keep operating risk at a minimum, such

as limiting authority to conduct business activities to the appropriate functional
departments.

Early Stage Business: As a start-up company, I have limited operating history

beyond the industry experience gained by me. To mitigate risks relating to
inexperience, the label will leverage the experience of external advisors to
provide support for management decisions, as well as industry expertise and
day-to-day operations.

Market Risk

Supply Chain/Merchandising Risk

Brand Identity

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