- Resume of the project
Project goal: raising of funds for Development of manufacturing and trading textile enterprise.
General information:
Operations on implementation of the target goal is planned to be implemented on the basis of the existing enterprise.
The product, which is produced by enterprise, recommended itself as one of the best on the market of advertising and promotional products in cost/quality ratio. All products have their own individual approach and artist built.
4 brand marks
Own base of suppliers
The main activity areas of the enterprise in the framework of the project will be the fabrication and implementation of the sewing product made of textile with wide texture diapason. It will allow operatively follow the fashion , effectively use purchased equipment, keep the competitive ability at the appropriate level, reach the profitability ratio, generate the high profit and create new workplaces.
Products which are planned to be produced: women, teenagers, kids’ cloth, home textiles.
Advantages: high quality of the product and reasonable price, brand packaging, which helps to identify the manufacturer. It will create the prerequisites for new brand recognition on the textile market and will encourage its promotion.
The qualification of the company allows coming over to implementation of the project, as during the period of the existence of business the enterprise developed its own suppliers` base and has an experience in purchasing the necessary materials and component parts in optimum price and short terms.
Consumers of the product are the wide range of buyers, among which the majority are clients with average and above average income.
Price discovery:
Gross margin is from 25% to 50%. Gross margin depend on model and prime cost of the product.
Retail margin is from 100% to 300%, it will depend on model and prime cost of the product.
Prices are formed on the basis of prime cost of the produced product and also prices o similar products of competitor brands. The price on unique products can be higher than competitors`, but only for 9-12%.
Demand on original and at the same time comfortable and functional products is always high (takin into account the seasonality factor). Consumers are interested in inexpensive and simultaneously unique product.
Strategy elements for reaching the high level of demand and high competitive ability: high quality of the product, active marketing, band and product advertising, competitive prices on product and quality client service.
Main goals of the enterprise: increase in sales, quality service, gaining of profit, increase of share of enterprise production on existing market.
- Competitors
Women cloth
|
Name |
Advantages |
Disadvantages |
Implementation |
|
Oodji |
Range refreshing, wide model product line |
Uninteresting model line, artificially high price in the quality of the product ratio. |
Presence in the majority of Ukrainian shopping molls |
|
TALLY WEiJL |
Interesting models, reasonable price. |
Limited range, limited color range, one of three cloth, which are bought in this shop will not survive 3 washings. |
Presence in shopping molls |
|
Кира Пластинина |
For last two years the quality of the product the quality decreased, high prices, huge content of synthetic fabric |
Range paucity, high price |
Presence in shopping molls |
|
Peacocks |
Wide range, low prices |
Law quality |
Presence in shopping molls |
|
LOVE REPUBLIC |
Wide model line, good quality of the product, sales |
High prices |
Presence in shopping molls |
Cloth for teenagers
|
Name |
Advantages |
Disadvantages |
Implementation |
|
HOUSE |
Wide range, reasonable prices |
Rarely refreshing model line, high load of the shop and as a result it is hard to find the needed product |
Presence in shopping molls |
|
CroppTown |
Wide range, reasonable prices |
Rarely refreshing model line, high load of the shop and as a result it is hard to find the needed product. Huge content of synthetic fabric, lack of bright colors. |
Presence in shopping molls |
There are only two main competitors on kid’s cloth market - «Antoshka» and «Smyk» chains. Along with wide range of the products, prices on it are very high.
- Implementation of investments
Budget is optimized for 6 month of aggressive development.
$ 14 000 (rate - 26 UAH. for 1cu = 364 000) – operating expense
$ 47 600 (rate - 26 UAH. for 1cu = 1 237 600) – leasing of premises
$ 84 000 (rate - 26 UAH. for 1cu = 2 184 000) – purchasing of row product for product line for 6 month
$ 9 540 (rate - 26 UAH. for 1cu = 248 040) – advertising
$ 31 620 (rate - 26 UAH. for 1cu = 822 120) – salary fund
ALTOGETHER: $ 186 760
- FINANCES
Current:
Internet sales:
Sales (July 2014 - April 2015) - 571 000 UAH.
Profit (July 2014 - April 2015) - 380 500 UAH.
Shopping-clubs:
Sales (July 2014 - April 2015) - 493 000 UAH.
Profit (July 2014 - April 2015) - 203 000 UAH.
Bulk sale:
Sales (July 2014 - Apil 2015) - 601 000 UAH.
Profit (July 2014 - April 2015) - 201 000 UAH.
Cashflow forecast:
Implementation capacity includes selling though the retailment shops, small ad big wholesale, internet and shop-clubs` sales.
In 6 months after start-up
|
Volume of production pu/mon. |
Average margin in UAH/pu |
Sales revenue in UAH./mon. |
|
7 560,00 |
118,00 |
892 080,00 |
In 12 months
|
Volume of production pu /mon. |
Average margin in UAH/pu |
Sales revenue in UAH./mon. |
|
9 828,00 |
96,00 |
943 488,00 |
In 24 months
|
Volume of production pu. /mon. |
Average margin in UAH/pu |
Sales revenue in UAH |
|
10 810,00 |
96,00 |
1 037 836,00 |
Profitability of the investment project in 36 months:
|
|
Volume of production |
Expanses on product unit |
Average margin in UAH/pu |
Sales revenue in UAH |
Profit |
Profitability |
|
1-12 mon. |
64 800 |
200,00 |
118,00 |
20 217 600,00 |
7 646 400,00 |
35,9 % |
|
12-24 mon. |
90 720 |
180,00 |
96,00 |
28 304 640,00 |
8 709 120,00 |
42,3% |
|
24-36 mon. |
108 84 |
165,00 |
96,00 |
33 965 568,00 |
10 450 944,00 |
47,1% |
- COMMERCIAL PROPOSAL
There are 3 variants of cooperation with investor.
- Proposal to investor - 50% of company share. Interests, which were received from the company, are drawn by investor according to agreed schedule during the whole period of studio existence.
- Investor gets back 50% of invested money, and after that investor becomes the co—owner of the company on the condition that 30% - investor`s share and 770% - company share. Interests, which were received from the company, are drawn by investor according to agreed schedule during the whole period of studio existence.
- Credit granting for 25%. Investor gets back his investments and additional 25% of original amount.
Business plan and further information is available on demand.
