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Business Plan:

Trend for Rent


Group 3

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Contents
Basic Business Definition
Industry Analysis
Market Analysis
Competitor Analysis
Marketing Plan

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Contents
Operational Plan
Organizational Plan
Business Strategy
Financial Plan
Risk Management

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Basic Business
Definition
Leasing high fashion from famous brand
name with high quality, beautiful and
luxurious design that suitable for proms,
party, ceremonies, operas and other
activities.

Main
Services

Trend for Rent


Accessories,
including jewelry and
handbags, and sells
essentials,
including
lingerie,
tights, shape wear for
rent.
We have young and
dynamic stylist team
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Extra
services

Extra
Services

Setting a website and


Facebook
page
to
interact vs the customers

Sample Items

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Objectives
1

Recovering all the cost and start to make


profit in no longer than 10 months after
operating.

Achieve 20% of market share no longer than


3 years.

Finding optimal sources of costumes with


competitive price and highest quality goods,
especially Vietnamese famous designed brands.

Building closed relation with at least 250


familiar clients in the first years.

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Long-term Goals
Achieve the largest market share, about 40%
market share after 5 years, in the city for urban
wear.

Long-term
Goals

Opening more branches, Especially in Quang Ninh


and Hai Phong after 3 years.

Building the company's name recognition within


the community

Expanding more product and services for wedding


party, high fashion for Shows on television, and so
on.

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Keys to Success
Maintain enough money on hand each month to
pay the cash obligations the following month.
Clearly understand

the

urban

rent

clothing

market, distribution costs and competition, and


continually adjust accordingly.
Variety of high quality and branded clothes for
renting.
Always rely on intuition and good feelings
about the market.
Building Strong Buyer-Seller Relationships.
High quality of customer services.
Supply Chain Management Competence.

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Key Success
Factors

Industry Analysis
General Clothing Market in Vietnam
Total spending for clothes of Vietnamese
(nominal US$ million)
35,214
31,386
27,919
24,566
21,738
19,083
16,899
14,678

Total spending for clothesof Vietnamese

Linear (Total spending for clothesof Vietnamese)

Vietnam clothing sales is expected to grow at a CAGR of around 34%


during the period of 2014 to 2018
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Industry Analysis
Low to Medium Pressure

Potential Competitors

Substitute Products

Medium pressure

Low to medium pressure

The Bargaining Power of


Buyers

Bargaining Power of
Suppliers
Low pressure.

Costume Rental Market Analysis


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Market Analysis- Target Customers

Gender: Female

Age: 18 - 30

Geography: Urban
areas in Hanoi

Income: 2-10
million/ month

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Market Size
13.8 %
53.7%
Maybe I would
use that service

I do not care
about that service

32.5%
I need a service
like that

The market size of that


33%
54%

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services is estimated
about 300,000 350,000

Customer Behavior
The rental clothes demand is huge
and various
Have to appear in front of crowed
regularly, meet partners
Desire to become outstanding and
style in different events ( wedding,
proms, operas, party, etc.)
Have to participate in contest/
competition

Desire to wear famous clothes


brands (Bebe, AX Paris, Donna
Ricco,etc.) with reasonable price
Desire to have better rental
services than now (various,
beautiful, luxurious, fashionable
dresses)
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NEEDS

WANTS

LOGO

Criteria of Buying
Decision

Amount of money that customer willing to pay

Criteria of Buying decision

7%

82.2

11%

50%

69.8

33%

51.2

34.9

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100,000 - 500,000 VND

500,000 - 1,000,000 VND

> 1,000,000

Donot care about price

Competitors
Analysis
Strengths

Opportunity
Nowadays people have to
join many events, chance
for them for hiring and
selling clothes

Have developed for a long


time
Popular with the local
people & on Facebook

Not so many outstanding


stores in hiring event
clothes

SWOT Analysis

Weakness
Some of them are hard to
find the location.
Do not have various type
of costumes.
Some store just focus on
one types of clothes
Their price is still too high
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Threats
This kind of business is
easy to copy
Hard to come up with a
differentiation strategy for
competing
Many indirect competitors
& substitute

Competitors
Analysis
6/104 Nguyn Phc Lai
Street, La Thnh
District, Hanoi
Est. annual sales:
2,160,000,000 VND
Kilometers from your
location: 3
Yrs. in business: 4 years

Chie
Cosplay
Shop

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NANA Shop

Add: 77 Cu Giy Street,


Cu Giy District, Hanoi
Est. annual sales:
5,040,000,000 VND
Kilometers from your
location: 3
Yrs. in business: 2 years

3 Main Direct
Competitors
Lavender
Shop

73/12 B Street,
Long Bin District,
Hanoi
Est. annual sales:
14,400,000,000 VND
Kilometers from
your location: 12
Yrs. in business: 4
years

Our Competitive
Advantages
1

We just focus on providing dresses, which


originate famous brands in domestic and in
the world with reasonable price for events.
We also provide some of complementary
services, including leasing accompanied
accessories and free makeup service for
customers.

We also provide stylist advice and fix the


costume according to the demands of
customers as fast as possible.
We have many after-sale activities like bill
discount, gifts,

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Marketing Plan
Product
Price
Place
Promotion

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Overall Strategy
We
focus
on
product
differentiation
We tend to compete in focused
niches, which aged 18 30 and
their income is from 2 10
million VND.

Product strategy
1
We exist in order to give
every
woman
the
chance to access to
remarkable
luxury
experiences and we
write the new rules by
changing the meaning
of
ownership
and
reinventing retail to be
smarter.

Actual
services
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2
We focus strongly on the
typical
and
unique
dresses with the features
of courteousness, not
very
sexy
but
still
charming and attractive,
suitable
Vietnamese
women

Products

3
Mixed stretch will be
used
intelligently
depending
on
the
market segment

Product
line

Pricing Strategy
Objectives
Market share:
Short
termYouths,
(3
Target
customer:
years):
20% people
otaku,
cos-player,
Long
term (5
interest
Japanese
culture
years): 40%
Status quo
oriented: non
price
competition

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Pricepolicies
Pricing
just equals
10 15% the price
tag.
At
the
first
period,
focusing
two price-level:
100k500k
VND
500k
1000k
VND
Developing
a
premium product
that can warrant
a higher price.

Discount policies

Reducing prices
to reward
customer
responses.
Quantity
discount.
Having another
strategy and
adjusting price
reasonably
(dynamic pricing,
promotional
pricing).

Place Strategy
Provide
goods
directly at
store

Design a
website
serves for
online sale

Create a
Facebook
page to
interact with
customers

Channel type : Direct distribution

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Promotion Strategy
Promotion purpose
Advertising the information of the store to the consumer
Creating the curiosity and attractiveness to the consumer
Gaining gross sale for the store

Budget
Advertising budget: 2% -5% of net revenues

Method
Choose the method which approaches the target customers
most effectiveness, lowest
We focus on channel: Magazine, Social media, Facebook,
Discount activities and events..
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Operation Plan
Location
101 Lang Street, Nga Tu So, Thanh
Xuan, Hanoi
Populous area ( near headquarters,
offices, companies and universities ,etc.)
Convenient transportation
Good security

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Operation Plan

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Operational Plan
Business Process
Input

Order clothes from famous high fashion brands


via online website and sign contracts directly with
the manufactories in Cambodia, Thailand, China
and The Philippines.

Preparing

Dried clean and laundry, encode and tide the price


tags to items.
Publishing Catalogue and post photos on the
Website and Facebook.

Beautiful items are show in showroom.

Output

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How our service will be


produced?
Rental price
First time rented items: 15 to 17 percent of the tag,
depended on the nature of clothes
More than 3-time rented items: 10 to 12 percent of the price
tag depend on the quality.
Salvage high fashion costumes which have been used with
low price, 10% of original price

Rental policy
Deposit policies: identity card and deposit 80 percent price
of the items. And we sign the contract with clients
information.
When you bring back the item rented: Make sure that the
items are still in good conditions, no stains unmovable, or
fade
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Organizational Plan
Legal structure: Limited Liability Company with at
least 2 shareholder

Executive
Director
Manager
Accountin
g
(1)

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Sales
(6)

Marketing
(2)

Guardian
(2)

Business Strategy
SWOT Analysis

STRENGTHS
Series of complementary service
Trendy and up dated dresses
regularly
Stable and big market
Outstanding staffs skills and
design
Government policies

WEAKNESSES
Problems in price adjustment
( mainly depending on
suppliers)
New start up in this field
Problems in retiring old
dresses
Limitation of money and
experience
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OPPORTUNITIES
Huge market size
High demand and increase rapidly
in the future
Customers dissatisfaction with
rental clothes service now.
Easy to borrow money from bank
with low interest.

THREATS
May have higher price than
other stores
Dresses cant return
Some accompanied service
can be copied
Limitation of staffs so its
difficult to control when
crowed

Business Strategy

LOGO

Growth Strategy
Scope of products and
services offered

Focus on current
products and
services

Focus on current
markets

Increase penetration of
current markets
(1)

Develop new products


Develop new products
and services

Develop new markets


for current product
and services
(3)
Develop new product or

or services for current

services and new

markets

markets

(2)

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Develop new market

(4)

Business Strategy
Sale Strategy
Sales goals

Customer
Service

Sales
activities

Explain
why were
the best

Target
accounts
Display
importance

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Financial Plan
Significant Assumptions

In the first year, each day there will be an average of 20 clients.


Each customer pay is 500,000 VND in average.
The annual number of clients is estimated to increase by 10%- 15% per year.
Clothes will be leased from 10-15 times.
Salvage value of clothes is 10% original price.
In the first quarter, operating expense is equivalent to 1/3 of the initial investment.
The 2nd and 3rd year, assuming that total operating expenses increased by 7% over
the first year, and the 4th and 5th year will be increased by 15% and 20% over the
first year respectively.
Short-term interest rate is 5.5% a year
Salary of employees is expected to increase by 5% each year.
We will pay dividend of 25% of net profits each year from year the 3rd year of
operations, 75% of the profits are retained in order to expand the company's
operations.
The average price for each clothes is 3,000,000 VND
Assuming the equipment has depreciation period of 5 years.

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Summary of Sources
Owners
Investment
300 million VND

SOURCES

Borrow from
family & friend
150 million VND

Requested from
Bank
200 million VND

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650
million
VND

Start-up Costs
Money Unit: thousand VND

Remodeling and decorating


Interior and Exterior signs
Installation of Fixtures and Equipment
Telephone and Internet Installation
Rent deposit
Licenses and permits

69,400
2,000
57,700
3,000
45,000
1,000

Legal, fashion professional fees (for Start-up)

15,000

Advertising and Promotion (for Start-up)

15,500

Clothes (beginning)
Training
Others
Total:
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180,000
12,000
5,000
405,600

Summary of Revenues
and Profit Money Unit: million VND
Year 1
Revenues

Year 2

Year 3

Year 4

Year 5

1,875

4,125.6

4,546.4

5,228.4

6,012.7

1,001.8

2,147.5

2,441.1

2,773.8

3,158.1

Operation Expense

594.5

1,120.8

1,192.9

1,293.8

1,395.6

Net Profit

223.0

633.1

677.2

873.4

1,111.9

% of Revenues

11.9%

15.3%

14.9%

16.7%

18.5%

BEP Revenues

1,298.3

2,346.2

2,576.6

2,722.3

2,862.9

Cost of Revenues

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Risk Management
Competit
or
Custome
r

Safety

Product
Managem
ent

HR

Sources of
Goods

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LOGO

Thank You!

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