The business where I have decided to invest in the future is the "Bags, luxury costumes and the formal wear local rental" in India. It's the business which is up to now not been applied and initiated at a commercial size. So there can be an opportunity for me to exploit the marketplace and become a pioneer in this field.
The idea for this business comes to mind as a result of large demographic and society in India. In India almost all of the children consider fashion as a religious beliefs and children accounts 30% of the full total population (Population council, 2007). Additionally with the expansion of the retail sector and with a contribution in 10% GDP, it is been forecasted that rental clothing sector will play a substantial role in the development of the country market (Research and Market, 2010).
2. Business descriptions
My business will essentially involve giving luxury hand bags, luxury cloths such as tuxedos, bridal wear, suits, dress and cloths for new parents on hire. In my own business, I will fundamentally buy luxury cloths from different brands. Which can be known worldwide because of their quality and durability. I will be buying cloths and hand bags from Versace, Louis Vuitton, DKNY, Dolce and Gabbana. The choice for the cloths will depend upon the existing fashion pattern and on a demand of a customer. These cloths will get on lease but at a same time will be sold-out to customers to reduce the expenditures of depreciation cost, as the style trend goes on on changing and demand for that garment will decrease.
Giving cloths on rent is not a new thing, it is been widely practiced from ages in the Europe. For example celebrities mostly work with dresses for the public occasion. Now common folks have also began to take cloths on hire, this can help them to change from the changing fashion style without doing any monetary promise of shopping for. This helps those to cut down the bills.
2. 1 Business operation
I will be heading to use my business from my native place Faridabad, Haryana, India. As there is certainly no one indulge in this kind of your business so far. The location for my business is most effective to get started on up cloth rentals services, as my town is on the periphery of the three metropolitan places. This will help me in providing services better and faster. The store will be on lease from where I will be operating my business. It'll be located on a fashion streets with many other outlets catering the local people of 1477000 (Haryana online). This will help the customers to view the number of luxury cloths and bags proposed by me, while doing home window shopping Hire it out will be open 7 days a week from 9AM to 8PM. During celebrations the working time will be increased. "Hire it out" will be supplying free account to the clients, and will be charging 1000 rupees for a dress or a bag for an individual day hire. Customers with account will be given discount, just to create trust and also to produce a brand commitment in then. New Customers can walk in a store and choose the gown of there like, which is altered as per their needs. Whereas regular customers can pick a dress from the catalogue, which will be send every month to them via mail. Dresses and bags will be provided at the customer's home prior a day of a meeting, without charging for the service.
Business plan in the original phase will be to target the neighborhood population, however in future will open up more branches in various locations. Once the business builds brand and secure its image.
2. 2 Ownership
Hire it out, is a enterprise between myself and my mom. We will be having equal shares in the company.
2. 3 Key resources of my business
The key property of my business is my co-owner; she has done masters popular designing and comes with an experience of 23 years. Her experience and presence in the fashion industry will help our business in creating an enormous customer base.
2. 4 Goals
Creating awareness about our services.
Creating an enormous customer bottom.
To start generating profit and begin extending business from neighborhood to countrywide community.
Introduction of new clothing brand and luggage with technology of profit.
But the leading aim of my business is to generate a brand image, which should be synonymous to the product quality.
3. Unique reselling proposition of my product and service
The unique advertising proposition of my product will be the faster, cheaper and better services with no additional cost or fine for delaying in delivery of rented cloths by customers. Furthermore supplying cloths and hand bags on rent can help in decrease skin tightening and emission in atmosphere, that will decrease the pollution and will keep up with the ecological balance (Times online, 2009), which is required in the current time of global caution. This itself is a motivating factor for consumers to decide on a cloths on rent to wear for a single occasion, instead of buying. Furthermore, there is certainly another USP of my products that the cloths can be modified and tailored as per the specific need and tastes of a customer. Furthermore we will be maintain the secrecy of your customers, as no one wishes to let other folks know that they employ the service of cloths on rent
3. 1 Future products
As soon as the business will start making income, "Hire it out" begins supplying jewellery, shoes and real luxury watches on rent.
4. Target Customers
My business will not target a particular segment. I will be targeting the whole local population comprising 55% men and 45% women in Faridabad (Census of India, 2001). My product services will be available to men, women also to the youth. As everybody knows, fashion is not bounded by a specific gender. Faridabad is an metropolitan city with five multinational companies and fourteen universities (www. Faridabad-online. com). So I will be emphasizing more on the children and the professionals working in these multinational companies, as they'll be the one who will be hiring luxury cloths frequently.
Youth: there are 14 universities in a city, so in universities there will be number of functions like proms, orientation, freshers and debutant balls that boys and girls would require formal wear cloths. This can make them address us to get cloths hire on hire, as it would be expensive to allow them to buy clothes for every occasion. Because they will be having limited resources. Additionally youngsters have opinion not to replicate a dress, as it symbolizes status and fashion sense.
Executives working in multinational companies: every second day there's a conference, summit or an organizations formal total annual dinner for this executives would work with cloths from us, as they'll not be able to buy a new little bit of luxury dress every second day.
Brides: brides will be employing from us expensive and luxury dresses for a married relationship. As these gowns are to wear once in an eternity. So they will not prefer to spend so much on the dress, instead they will seek the services of it for a day.
Homely women: this segment will be the majority one approaching to hire luxury cloths and hand bags from us on rent. As there are interpersonal occasions like get together, charity occurrences and open public functions where mostly homely women get involved.
Travelers: though in this portion, we will never be having many clients, but still each and every customer issues a whole lot in a company. THEREFORE I will be providing services to travelers, who are on a brief visit to a fresh country and who do not want to carry an excess baggage with them. Our services will deliver them luxury cloths and totes at their living place for example hotel, prior to their date of introduction. For this they need to choose dresses online and need to pay for the shipment cost.
4. 1 Customers perspectives
"Employ the service of it out" prepared a questionnaire, that was allocated among Indian students learning in Bangor College or university and it was also mailed to friends working back in India. Questionnaire was send to 40 people out of which 32 people replied. It had been seen that children accounts more, who'll be hiring cloths on rent and second in list was homely women.
4. 2 Competitor's analysis
Luxury local rental clothing industry is a competitive industry. But "Hire it out" will be having no immediate competition with any of its rivals. As all the rivals are working their business from the remote control area, that to without variety and exclusivity of luxury cloths (Times of India, 2009). So far "Hire it out" has recognized three of its competitors that are big bazaar, DCM clothing and exotique garments (Sinha, 2009). The downside of most these operators are they are charging for the regular membership and for the home delivery services (PRlog, 2009), which "Hire it out" will never be charging from its customers. Additionally these providers do not dry-clean each and every time, after they are being use by a customers. For the dry out clean of any cloth they demand extra from the clients and at the same time do not keep up with the secrecy of the clients, which "Hire it out" maintains. So overall "Hire it out" has a differential advantage over its customers through Employ the service of it out is carrying out a no frill strategy.
5. Execution and strategy
5. 1 Philosophy
My business strategy will be to add on my knowledge, personal experience and a mixture of marketing skills to cater customers' needs. So that we can be considered a pioneer in this competitive industry and develop a brand name. Which may be synonymous to luxury clothing industry.
5. 2 Marketing strategy
At the present time, marketing is an important tool. It isn't only about creating a brand image but also about setting up a romantic relationship with customers. My marketing strategy will comprise of both these factors. I will be adding banners, logos and slogans of "Hire it out" throughout the town to create understanding also to make inhabitants know that we are the development setters in this field.
To build relationship with customers, I will be giving out discount coupons as a reward. If the existing customers refers a new customers to the business. Furthermore I am mailing customers a reviews form, so that I could know about the knowledge, goals and changes they wish to bring in business.
In the initial phase of the marketing, I am focusing more on the local community as the business needs to be established. For this I will depend upon the local printing like local newspaper, pamphlets and local tv set channels. I am going to also be using direct mailing method and will send mails to local population with discount coupons.
In the advance stage of my business, when business begins generating income then only I'll bring in the utilization of internet to promote of my business. As it is very expensive to buy a website and to employ the service of a web custom to make a site.
5. 3 Management style
As myself and my mom are the co-owners of the business enterprise. We are caring for the daily procedures and you will be buying luxury cloths and carriers. We are employing three people out of which two will be for the sales and leading office work. Previous one for the tailoring services
5. 4 Command: as I will be having a level in marketing I will be looking after the client relationship, delivery of cloths and maintaing the financial records. Whereas my co-owner will be looking after the inventory, daily operations and guidance of staff
5. 5 Staff: we will be hiring three employees out of which two will be the in your free time employees and one will be the permanent. In your free time employees will be indulging in sales and forward office work. While permanent employee will be performing a tailoring work. This measure is performed to decrease the expenses and diversify those possessions on some other things.
6. Financial implication
Hire it out will demand an Rs 35 lakhs ruppes to begin up the business. Out which Rs 10 lakhs will be my very own capital and rest will be on loan. For the loan either I will go directly to the private equity company or even to the SIDBI (Small sectors development bank of India) both these businesses promote young business owner and provides loans if the theory for the business enterprise is feasible and profitable. The advantage of nearing SIDBI is that they gives you repayment for the charges (invoice discontinuity center), which no other standard bank or private equity firms give. In addition to this, SIDBI provides more facilities like finance for the capital expenses and working capital (The economic times, 2007).
6. 1 Use of funds
Funds will be diversify for the reconstruction of the shop as well as for buying things such as luxury cloths, totes, computer systems. Most of all some part of the funds will also be used for buying the inventory control system as well as for paying maintaince of employees and their earnings.
6. 2 Chance even analysis
I am carrying this out break even analysis on a yearly basis. In this I will be including, interest for the loan, depreciation cost for the dresses and the device. I am taking interest rate and high grade rate as per the ongoing rate in India. Predetermined expenses will be the predicted ideals.
Hire it out has a complete budget of Rupees 35 lakhs to create an enterprise, out of which Rs 10 lakhs will the personal capital employed and Rs 25 lakhs will be on the loan. Loan is used at a @8% per annum and depreciation cost is @20%per annum. Hire for showroom is Rs 5000 monthly, salary to personnel is Rs 20000 per month and electricity and water demand be Rs 2000 monthly.
As shop is considered on a lease, to reduce the fixed property bills and out of five people employed in the business, two are family people. Who have equal share running a business, they can lessen the incomes and on supervision charges to create profit. Work with it out assumes that they can start generating gain the end of time.
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