Indira Gandhi National Tribal University

A BUSINESS Proposal ON

NOOR FASHION GALLERY

(A Business proposal, feasibility analysis)

SUBMITTED BY SUBMITTED
TO
SHAVI KHAN Dr. Sushil K.
Singh
MBA 4TH SEMESTER Asst. Prof.
DoBM,
Why Start a Fashion Design Business?
Fashion is one aspect that cannot be done without especially in an age where
different age groups all have a large percentage of them that are geared to fashion.
A fashion design business is a business for entrepreneurs who are creative and
enterprising in nature. These individuals understand the fashion world such as the
importance of texture, color, and shape in varied clothing as well as the business of
ensuring that this creativity yields revenue and eventually profit.

While the fashion design business might seem glamorous, It is also a competitive
business and so if one intend starting this kind of business, one would need to hire
a business consultant who understands the industry thoroughly in order to take a
look at your business concept and help you draft strategies that would help you
survive and favorably compete against your competitors as well as generate
enough profit to sustain the business.

Business Overview:
The fashion design industry has no companies with a dominant market share in the
industry. The industry is one that has generated revenue of $2 billion with an
annual growth of 7.2% for between the periods of 2011 to 2016. In the India, there
are more than 19,000 fashion designer businesses employing nearly 27,000 people.

The fashion design industry is one that has trended toward growth in the last years
between 2011 and 2018. This is due to the fact that designers in order to appeal to
large section of their target market have started closing the gap between style and
value.

The industry is still projected to grow between the periods of 2019 to 2025, and the
revenue in this industry will grow too depending on increasing consumer
confidence and the rising per capita disposable income. More than two-thirds of
the establishments in the fashion design industry are located in three states –
Maharashtra, Uttar Pradesh and in Gujarat.

Maharashtra comprises 38.7% of the total industry establishments and is the home
to major designers, elite fashion schools and brand labels. The city is also one that
has a high number of retail outlets that are of high end.
There are various upcoming trends that is likely to affect the fashion design
industry and might influence employment in this industry and they include;
improved use of the internet for online shopping by customers, continued use of
cheap labors and consolidation of businesses in the retail sector.

According to the Bureau of Labor (BLS) Statistics, as at 2014, one in about four
fashion designers owned their own businesses, and was able to set up their own
independent clothing lines. Employment in the fashion design industry was
projected to grow at 3% from 2014 and last till 2024 on that same percentage
which was deemed slower than the average compared to most other industries.

Fashion Design Business Plan – Executive Summary:

Noor Fashion Gallery is established to intrigue our clients with our fashion pieces
while also identifying with the uniqueness in each of our clients. Our aim is to
become a worldwide brand name in the 2023 here in , Anuppur. We therefore are
in business in order to generate revenue, make profit whilst also favorably
competing with other leading brands in the fashion design industry in seven years
time.

Our location in Anuppur is a very strategic one as we are located in the slow
growing area but with the right strategies and plans that we have in place, we are
sure of meeting, achieving and exceeding our desired goals and intentions.

Our publicity strategies are top notch as we have hired the services of a brand
consultant to help us draft the strategies that will make us stand out from similar
fashion design businesses in the industry.

Our intention of achieving this vision is in going the extra mile to hire the right
management team that understands our core vision and principles as a business and
willing to ensure that these values are clearly communicated and implemented by
the non-management staff in the organization.

We intend to build a solid business structure by ensuring that we hire professional

and competent employees that understand the business and industry thoroughly
and are also committed to seeing that we achieve our intended goal through
increased productivity.

Seeing as technology has come to stay, we will be deploying the right technology
that will help us become efficient in producing the right designs, while also getting
the right and recent equipment are procured for use in increasing productivity.
Finally, our owners, Shavi khan and Nazni khan have the right amount of fashion
and business experience needed to ensure that Noor Fashion Gallery become the
brand leaders it intends to be. Nazni is a creative fashion designer and has been
producing designs for 5 years, while Shavi has more experience in management
and will be in charge of making decisions that will have an effect on the business,
she has over 10 years experience in management, with 4 years in a fashion design
business.

 Our Products and Services

At Noor Fashion Gallery, we intend to ensure that we deal in all forms of unique
fashion designs and accessories in our primary location here in Anuppur.

We intend to ensure that we create multiple sources of income that will be in line
with our core service; these other services might be intangible in nature and
include services such as trainings and consultancy services. Our intention of
creating multiple sources of income is so that we would be able to boost the bottom
line of our business as is permissible under the laws of the India.

Therefore, some of the products and services we intend to offer are;

 Sale of fashion design wears for certain ages and sexes

 Sale of fashion accessories
 Consultancy and advisory services
 Trainings

Our Vision Statement:

Our vision is to intrigue our clients with our fashion pieces while identifying with
the uniqueness in each of our clients. We also intend to become a worldwide brand
name in the year 2023 here in Madhya Pradesh, India.

Our Mission Statement:

In order to achieve our vision, we have laid down procedures that would ensure
that most of our target market is aware of our products. We also have competent
and professional employees that would ensure that that our vision is actualized.

Our Business Structure:

In order to ensure that we set up and run a standard fashion design business here in
Anuppur – Madhya Pradesh – New York, we intend to get it right from the
beginning by ensuring that we build a business structure that is in line with our
core values and which will ensure that we can run all our intended services
smoothly without hitches.

As such, we intend to ensure that we hire the right employees who are hardworking
and competent and who not only understand the industry thoroughly but also the
business and our core values and principles and will therefore ensure that we get to
the attained level of goals and objectives through their commitment and dedication.

Also, since we intend to offer a wide range of services for our fashion design
business, we will need to employ several employees who know and understand
each task they are to handle. We also will pay our employees very well and ensure
that they are well trained in order to be able to handle the different and increasing
responsibilities assigned to them.

Therefore, the business structure we intend to build at Noor Fashion Gallery is;

 Chief Executive Officer

 Fashion Manager
 Human Resources and Admin Manager
 Purchasing Manager
 Inventory Manager
 Marketing and Sales Executives
 Accountants/Cashiers
 Customer Service Executives
 Cleaner
 Driver

Roles and Responsibilities

Chief Executive Officer:

 In charge of making strategic decisions that would affect the overall

direction of the company.
 Liaises with high end clients on behalf of the organization.
 Ensures that company policies are reviewed to remove or modify those that
aren’t working

Fashion Manager:
  In charge of creative designs by the company
 Liaises with magazine editors, other fashion managers, organizers of
pageants and catwalk on behalf of the company
 Remains updated about industry trend so as to predictably forecast what
would be fashionable and design same for the company

Human Resources and Admin Manager

 Carries out administrative tasks that ensures that the company runs smoothly
 Sources for and recruits the right employees on behalf of the company
 Conducts employee orientation and training

Purchasing Manager

 Sources for reliable vendors and manufacturers on behalf of the company

 Drafts negotiation documents that would be used to secure the materials on
behalf of the business
 Looks for back-up vendors and manufacturers on behalf of the company

Inventory Manager

 Checks the raw materials and ensure that depleted stock are replenished
 Monitors and documents outgoing materials and incoming materials
 Ensures that storage is well ventilated and that the materials are in the right
condition always

Marketing and Sales Executives

 Conducts appropriate market research in order to determine new target

markets on behalf of the company
 Conducts direct marketing to clients on behalf of the company
 Drafts and reviews marketing strategies for the company and removes
ineffective strategies

Accountants/Cashiers

 Controls the amount of physical cash used by the company to carry out
certain activities
 Ensures that the ban statement and the cash boo are appropriately reconciled
at month end
  Prepares all financial information and statements as well as tax reports on
behalf of the company and carries out internal audit as well

Customer Service Executives

 Ensures that all customer enquiries, orders and complaints are promptly
attended to
 Keeps an updated customer database on behalf of Noor Fashion Gallery.
 Keeps up with industry trends so as to have the right knowledge when
attending to clients

Cleaners

 Ensures that the office premises are clean before the start of business each
day
 Restock depleted cleaning supplies
 Carries out any other duties as might be determined by the admin manager

Driver

 Monitors the loading and offloading of materials in and out of the truck so as
to ensure that it tallies with documentation
 Ensures that materials and designs as well as other accessories are delivered
to the accurate locations each time
 Carries out any other duties as determined by the admin manager

Fashion Design Business Plan – SWOT Analysis

Making a honest assessment of our business concept by pointing out the
advantages and weaknesses we have will allow us know if we are taking the right
step into starting this business, and as such we hired the help of a reputable
business consultant from Maharashtra India.

In looking critically at our business concept, the business consultant used the
popular SWOT (strengths, weaknesses, opportunities and threats) analysis to
determine how suitable we were for the industry. Below is the result of the SWOT
analysis that was conducted on behalf of Noor Fashion Gallery;

 Strengths
Our strength lies in the fact that we create unique designs for our various clients to
meet their tastes and preferences, as well as other fashion related services. Our
several marketing and publicity strategies are already enabling us stand out from
the others in the industry.

Also, we have hired competent employees who are not only professionals but have
the necessary expertise to enable us meet our intended goals and objectives. Also,
our owners, Shavi Khan and Nazni Khan have the right amount of fashion and
business experience needed to ensure that Noor Fashion Gallery become the brand
leaders it intends to be.

 Weaknesses

There are certain factors which we have perceived as weaknesses to our business
and that is the fact that we are located in a fashion slow industry area, especially
as Anuppur is not develop regarding fashion. Also, the industry is a bit saturated.

 Opportunities

There are several opportunities that abound for our fashion design school such as
ability to showcase our designs to the world through fashion shows and pageantries
as well as celebrity endorsement. Also, the internet is offering us vast opportunities
that will enable us showcase our designs to clients in far locations.

 Threats

While the fashion industry might seem fun and glamorous, there are threats that the
industry faces every now and then and as a business we are well prepared to meet
any threats we might face during start up and whilst running the business.

Some of the threats we are likely to face are scarcity of the raw materials,
unreliable vendors as well as arrival of more competitors into the market. We have
however laid the right strategies that will ensure that we surmount any challenges
that we are likely to face during the course of starting or running the business.

Fashion Design Business Plan – MARKET ANALYSIS

 Market Trends

The fashion industry is a glamorous and fun industry that is competitive in nature.
Running a fashion design business is time consuming and most fashion design
businesses usually fail because the entrepreneurs do not have the wherewithal to be
creative and run the business at the same time.

This is because any entrepreneur starting this business usually spends less time
designing, and more time managing production, dealing with suppliers, sending
clothes to magazines, and managing the employees’ in-between. It usually takes an
entrepreneur who has been into the business before to be able to successfully
handle the business.

This kind of business is one that requires endurance and tenacity because this is a
hyper competitive and complex industry, in which any start-up business can have
suppliers and customers in the short period of time of starting the business.

Which is why to succeed in this industry you would need to be committed first as
the chief executive officer before being a fashion designer. However, this does not
mean that you do everything yourself, as most fashion design businesses usually
hire a chief executive officer to handle the administrative affairs so that the owners
can focus on fashion designing.

Finally, fashion designing in the real business world is different from that learnt in
school. Starting and running a fashion design business would mean you developing
and ensuring you follow a creative process that is organized, which is why most
entrepreneurs looking to start their own business usually work as interns in larger
fashion houses so as to be able to understand the methodology required in running
the business.

Another option when starting this business especially if you are just skilled in
fashion designing is to find a partner that is skilled in business in order to help
manage the business part of the business.

 Our Target Market

The fashion industry is one where there are various range of available customers of
both sexes and ages. However, we do not intend to design clothes for everyone as
we intend to choose our market segment in the target market.

However, to help us know the right clients we intend for our business and also
know what it is they expect from us, especially as regards our location here in
Anuupur; we intend to conduct a thorough market research that would allow us
draft the right strategies that would suit this market.
From the result of our marketing strategy, we would be engaging in our fashion
design business in order to cater to the following group of people;

 Music and movie celebrities

 Business People
 Models
 Men and female adults
 Young adults
 Movie producers
 Fashion houses
 Retail stores
 Boutiques

Competitive Advantage

Noor Fashion Gallery is a business that hopes to be a contending leader in the

fashion industry by 2023 by offering unique quality designs to its customers here
in Anuppur, Madhya Pradesh as well as all around India.

We intend to offer only the best to our target market by conducting a research to
know what our existing and intending clients’ wants and ensure that we not only
meet but surpass their expectation.

We intend to ensure that we hire professionals and competent employees who do

not only understand the industry but are also committed to our organizational cores
and values and are committed to ensuring that we reach our desired goals and
objectives.

We will also pay our employees very well as we would ensure that their welfare
packages are the best that can be gotten amongst similar fashion design businesses
both here in Anuppur (M.P) as well as all over India

Lastly, we intend to offer the best customer care for our various customers and
ensure that all our customer care executives have updated knowledge about
industry trends so as to use this knowledge to better serve and ensure that our
customers get what they want.

Fashion Design Business Plan – SALES AND MARKETING

STRATEGY
 Sources of Income
Noor Fashion Gallery is a fashion design business that has been established with
the aim of generating revenue and making profit in the fashion industry in India.
We intend to ensure that we offer various in order to meet the various needs of our
customers.

Therefore, we intend to generate income for Noor Fashion Gallery by offering the
following services;

 Sale of fashion design wears for certain ages and sexes

 Sale of fashion accessories
 Consultancy and advisory services
 Trainings

Sales Forecast

The fashion industry is one that will always see a surge in demand especially as
almost everyone on earth is fashion conscious either through what they put on or
see others put on.

Anuppur is one of the cities that is regarded as fast moving in fashion industry,
therefore our location in Anuppur is very strategic and will offer us the right
opportunity at ensuring that we not only generate our revenue but that we start to
make profit to cover all basic expenses and loan repayments during the first year of
business.

In carrying out a sales forecast for the company, we have been able to critically
evaluate the fashion industry in order to understand how we would likely fare once
our business starts up. The various data gotten from the feasibility study were
based on data and information that was gleaned from similar start-ups such as ours
here in Madhya Pradesh.

Below therefore is the sales projection that was conducted for Noor Fashion
Gallery;

 First Fiscal Year-: 1 CRORE

 Second Fiscal Year-: 2.5 CRORE
 Third Fiscal Year-: above 4.5 CRORE

N.B: It should be noted that the above projections were conducted based on several
factors such as there would no arrival of competitor during the time of the
projections, as well as the fact that people would continue to love our brand.
Should there be any change in the factors, it would lead to an increase or decrease
in the figures.

 Marketing Strategy and Sales Strategy

Marketing is very important and so it is therefore pertinent that the right marketing
strategies are drafted in order to achieve the desired results. However to be able to
draft the right marketing strategies, we have conducted a thorough market research
that will allow us not only understand the industry, but also ensure that we
penetrate the market and attract the number of customers.

This is why marketing is an aspect of the business that should be taken seriously as
poor strategies could lead to failure of the business or dwindling sales due to poor
efforts of the marketing team in increasing awareness and invariably sales on
behalf of the company.

Due to this, we have secured the help of a reputable marketing consultant from
Maharashtra, who not only understand the business but the whole fashion industry
and will also help in drafting effective marketing strategies that would be needed to
penetrate the target market and get a huge share of our niche market.

We have also empowered our marketing executives to ensure that they ensure that
right strategies are drafted on behalf of the company and in line with our core
ethics and values. The marketing and sales team also has the power to modify or
eliminate strategies that are deemed not to be working on behalf of the company.

Therefore, the strategies we intend to adopt while marketing our services at Noor
Fashion Gallery are;

 Ensure that we introduce our fashion design business to fashion houses,

large scale magazine editors as well as other stakeholders in the industry.
 Ensure that we place adverts on local newspapers, fashion and beauty
magazines as well as on radio and television stations
 Empower our marketing and sales team to engage in direct marketing on
behalf of Noor Fashion Gallery.
 Ensure that our business is listed on both offline and online directories
 Distribute handbills and fliers in conspicuous places in order to promote our
business
 Use the internet especially our website to promote our business
Fashion Design Business Plan – Publicity and Advertising
Strategy
The fashion design business is one that needs a lot of publicity especially as the
business industry is one that is very competitive. Any business that does not take
its publicity seriously will likely die or not make it in business. we therefore intend
to ensure that we intensify publicity for our businesses in order to increase
awareness for our products as well as promote Noor Fashion Gallery .

We intend to hire a brand consultant who is reputable and has the knowledge
regarding this industry to help us draft the right strategies that would promote our
fashion design business and also increase awareness for us with our clients – both
existing and potential. The strategies will also be one that identifies with our core
values and principles as a business.

Therefore the strategies we intend to deploy in promoting and advertising the Noor
Fashion Gallery are;

 Throw a large fashion themed party in order to create awareness about our
fashion design business
 Engage in community activities and sponsor relevant programs
 Create a website that is interactive and use that to create awareness about our
business
 Ensure that we use social media platforms such as Instagram, Twitter and
Facebook to vigorously promote Noor Fashion Gallery.
 Ensure that we place adverts on local newspapers, fashion and beauty
magazines, as well as on radio and television stations
 Engage in fashion shows, beauty shows and catwalks and other shows in
order to create awareness about Noor Fashion Gallery.
 Ensure that all our staff members wear customized clothes with an attractive
design in order to promote our business

Our Pricing Strategy

In determining the prices for our fashion design products, we would fix our prices
depending on the type of apparel and the design used. Normally the prices for our
fashion design wears depend on the type of clientele. Determining the prices for
any product or service depends on several other factors such as what the
competitors are offering, what our overheads are, and how much we are getting our
raw materials for.
However, in order to attract the right customers to our fashion design business, we
intend to lower the prices for the first 6 months and also give some well known
celebrities some of our unique designs to wear for free in order to help with
promoting our brands. However, having carefully looked through our strategies,
we are pretty sure that our profit margins for the months we intend to lower our
prices and offer discounts will not really be affected.

 Payment Options

Because we intend to have a whole lot of customers, we at Noor Fashion Design

Business have come up with different payment options so as to suit the different
styles and preferences of our customers.

Therefore, the payment options that we intend to make to all our customers are;

 Payment via cash

 Payment via check
 Payment via credit card
 Payment via Point of Sale (POS) Machine
 Payment via online payment portal

The above payment options that we have chosen are ones that will help us achieve
all our plans without any hitches whatsoever for our customers as well as
ourselves.

 Start – Up Expenditure (Budget)

In starting a new business, there are certain aspects of the business the bulk of the
capital is spent on. In starting our fashion design business and running it to a
certain standard, we expect to spend the bulk of our capital on raw materials,
leasing a facility, paying the salaries of employees as well as utility bills.

Therefore the key areas where we intend to spend our start-up capital on are;

 Total fee for registering the business in India – 52400 INR

 Obtaining of licenses and permits as well as accounting software – 87500
INR
 Cost of hiring a business consultant – 10500 INR
 Marketing promotion expenses (grand opening expenses and general
marketing expenses) – 210000
  Insurance coverage (workers’ compensation, general liability) – 140000
INR
 Operational cost for the first 6 months (salaries of employees and payment
of utility) – 7000000 INR
 Other start-up expenses (stationery, phones, computers, and printers) –
350000 INR
 Cost of start-up inventory (raw materials, design accessories, table, shelves,
bins, and cash register) – 140000 INR
 Cost of purchasing a fairly used vehicle – 350000 INR
 Leasing a facility for the period of one year – 350000 INR
 Cost of launching a website – 35000 INR
 Cost of throwing a grand opening party – 70000 INR
 Miscellaneous – 350000 INR

From the above analysis, we would need an estimate of 13335000 INR in order to
successfully start and run our fashion design business here in Madhya Pradesh. It
should be noted that the bulk of our capital would be used to pay employees
salaries for a period of six months, lease a fairly used vehicle as well as lease a
facility that we would use for the period of one year.

Generating Funding / Startup Capital for Noor Fashion Gallery

Noor Fashion Gallery is a business started and run by two friends,Shavi and Nazni
Both are fashion designers with a degree in business and so have decided to seek
for several sources whilst looking for funds in starting our business. We have
therefore decided to restrict the sources of start-up capital to 4 major sources.

Therefore the areas which we intend to generate our start-up capital;

 Generate part of our start-up capital from our personal savings

 Source for soft loans from family members
 Apply for loan from the bank
 Apply for loan from a private investor

The bank loan is expected to be repaid in 5 years at a 2% interest rate. Also, we

approached a private investor in the fashion industry, who is interested in
mentoring us whilst also giving us a loan of 3500000 INR for our business.

Fashion Design Business Plan – Sustainability and Expansion

Strategy
Every business is not only established to fill a need, compete favorably against
competitors or generate revenue that will ensure that it makes enough profit but a
business is also established that it might exist for as long as the owners want it to
and even grow and expand as well.

However, in other to sustain a business there are several factors such as

competence of employees, reinvestment strategy as well as retaining of loyal
clients amongst others that will be deployed to ensure that the business continues
in existence.

Sourcing for and hiring competent employees is very important because having the
right employees will lead to a growth in the business and ensure that there are less
hiccups for the business during the course of start-up. We will ensure that our
employees undergo continuous training and also that our human resources manager
conduct performance appraisals every now and then in order to ensure that
productivity is attained for the company.

Also, we intend to pay our employees very well, as their welfare packages are
already the best as could be attained across the industry for similar start-ups such
as ours.

To ensure that our business grows to the standard that we intend for it, we intend to
re-invest our profits back into the business. This act will enable us boost our
bottom line and ensure that we can suitably expand when we need to. Our re-
investment strategy is carefully planned as we also intend to pay back our loans
during this period.

Finally, we know how important our customers are to our business, because
without our clients our fashion design business will not exist. We therefore intend
to offer our clients incentives that will ensure that they become repeat customers.

Also, we have trained our customer service executives to be able to handle our
customers no matter the situation. Our customer service is already adjudged the
best in the industry for a new start-up regardless of the fact that we haven’t been
long in the business. We now that if we carry out these measures, we are likely to
not only sustained but also expand our business as well.