1.

1 Name of company

The name for this company is Happy Feet as it symbolizes a happy and comfy shoes used by
clients. Every customer need a comfortable and convenience shoes for their feet plus with the
value they desire so that it can make them happy and enjoying their walk all day long.

1.2 Nature of business

Selling many types of footwear for both male and female such as boots, heels, wedges, sandals,
sneakers, shoes, socks and etc.

1.3 Industry Profile

Malaysia has transformed from a commodity-based economy to industry-based in the recent

years, and it has strategized itself to reduce dependence on imports of raw commodities and
increase its imports of processed or finished products, boosting value-added exports. As such, in
the recent years, this phenomenon has taken effect on the fashion industry including the footwear
sector. As more and more foreign investors are penetrating the market, the local manufacturers
are taking smaller shares of the cake. As a result, local manufacturers are trying to compete
aggressively by using high quality materials. In a bid to protect the local industry, the
Government has in the last few years imposed import duty of 30% coupled with sales tax of
10%. However, following its objective to promote the local tourism industry and Malaysia as a
shopping paradise, the import duties for majority of the product groups have been abolished.

Certain type of footwear accessories as well as leather are also free of duty. In understanding the
local market scenario, foreign exporters should take into consideration a few characteristics :

The Malaysian market is dominated by local manufacturers, a few large scale retailers

and major department stores, whereby most of the concentration is in the state of

Selangor and Federal Territory, the capital of Malaysia.

 In general, although some Malaysians (mostly elites and affluent people) can afford

the finest footwear made anywhere, a significantly large number buy low priced

footwear. These are the middle income earners.

In order to attract buyers attention, foreign exporters should be flexible and be

prepared to accept smaller minimum orders than is the case in the other markets. This

is especially true for the first few seasons. Depending on the designs and styles,

buyers would like to try out the market for at least the first 6 months.

1.4 Location of business

The location of this business is at Plaza Merdeka (UG-39, Upper Ground), 93000 Kuching,
Sarawak, Malaysia.

1.5 Date of commencement

This shop started their business at 1st April 2011.

1.6 Factor in selecting the proposed ventures

The factors that affecting the choice that we made is that we saw big opportunity of selling
various types of footwear compared to other typical footwear shop at Kuching area. Many
typical footwear shop just selling a few types of footwear and not in bigger quantities of stocks.
Other than that, our purpose is to sell comfortable footwear for the clients not just attractive in
the eye and it is our priority to sell comfortable footwear to our customers.
1.7 Future prospects of the business

Our core focus is to create a distinctive shopping experience that satisfies both the rational and
emotional shopping needs of our Happy Feet customers by offering them a vast, exciting
assortment of in-season styles combined with the convenience and value they desire. We also
aim to make franchises for this shop so that we can improve our profit.