BUSINESS PLAN – BADAX FASHIONISTA
1.0 EXECUTIVE SUMMARY
Overview
BADAX Fashionista(BF) is an upscale adult male and female fashion home that will open in June 2020. BADAX Fashion Designing, which means “fashion home for classic people in the society” the Training in the name defines the training School and its essence of inclusion. BADAX Fashion Designing‘s clothing selections and exclusive personal style services, include a detailed Style Assessment, will ensure that our customers are well dressed. BADAX Fashionistawill be a woman-owned business that will be organized as a Sole Proprietorship.
BF is a unisex fashion home that will carry Ready-to-Wear (RTW) designer and casual/contemporary apparel & accessories for both men and women, our designers for native wears will be; laces, Atiku from Dubai, turkey U.S and UK. The BF customers are busy professionals who live in Oyo with a household income that is over #200,000 monthly. He/She enjoys the fashion designs and wants a place where He/she can go to get services that meet his/her busy lifestyle. BF will provide services like on spot cut and sow, selling, home delivery and selection of Aso-ebi for families having occasions.
Management
With over 3 years experience in retailing, Bukky has gathered the expertise to complement and grow the business. Our advisory team holds expertise in retail accounting, business development, legal contracts, fashion and design.
Finance
Start-up costs include inventory for the first month, and are estimated at N40,000,000 of which the owner will inject 49.5% and the remaining is the required amount from the investor. Annual gross sales are projected to grow from N10,300,000 in the first year to over N 88,500,000 by Year 5.These Sales forecasts are given as the least possible sales the company can make. Due to the demand for up-to-date fashions, inventory turns might be projected at 10 or more.
Mission Statement
- To provide professionals, families, students on training with a cutting edge fashion services that offers a comfortable and approachable environment
- To showcase quality, well-constructed fashions from prominent and cutting-edge designers
- To offer a variety of beautiful and high-end fashion accessories
- To help women learn what clothing and styles go best with their unique personalities
Keys to Success
- Having a good location in a high-shopping area
- Quality product and good relationships with vendors
- Outstanding customer service
BF Objectives
- To maintain profit margins at 15-20% through close attention to expenses and cost of goods sold
- To drive awareness and build sales through mentions in both local print and the nation’s top fashion magazines
1.1 COMPANY SUMMARY
Badax Fashionista (BF) is an upscale male and female clothing boutique, outfit accessories that are mostly imported from Dubai, UK USA etc will open in February next year. Badax Fashionista, which means “Clothing and accessories for people of class” or “corporate workers” in Nigeria, defines the boutique and its essence of inclusion. Badax Fashionista cloth selections (Aso Ebi), Jewries, Wriest watch and exclusive personal style services, which include a detailed selection of elegant Aso-ebi for occasions, will ensure that our customers are well dressed. Badax Fashionista will be a woman-owned business will be organized as a Sole Proprietorship.
Clothing for stylish men and women
BF will carry Aso ebi, Ready-to-Wear (RTW) designer and casual/contemporary apparel & accessories for man and women, and will be the exclusive Turkey, U.S, UK, Dubai etc. In addition to the imported cloths, Badax Fashionista will feature other choice selections by American and European designers. The Badax Fashionista customer is a busy professional man and woman who lives in South west with focus on Oyo state as a starting point and the customers are with a average income between 80,000 – 1,000,000.
Clothing for Occasions
BF will import classic fabrics and lace e.g voil lace, atiku and all other aso ebi invoke for families planning for ceremonies. As many as requested by families celebrating will be ordered for from our reliable producers of such fabrics and lace.
2.0 PRODUCTS AND SERVICES
Badax Fashionista will carry Aso ebi, Ready-to-Wear (RTW) designers, casual/contemporary apparel & accessories for man and women. Also Badax Fashionista will buy and sell Aso Ebi from manufacturer/wholesalers of fabrics and lace like; Voil lace, Atiku, Ankara etc along with various American & European labels shirts and t-shirts such as Tm-Lewin, Dolch and Gabberni, Jeans, etc. Badax Fashionista will also carry designer fashion accessories such as Wrist watch, Perfumes/deodorants and wardrobe accessories such as shoes, jewelries and bags.
APPAREL LINES
- Turkey
- Tm-lewin
- Voil Lace
- Atiku
- Herr Frau PF Line
- Weekend MaxMini
- Hocken
- Catherine the Great
- Tosca
- Raff laurel
- James Jeans
- Trina Turk
ACCESSORIES (Wardrobe Accessories)
- Lint Brushes
- Makeup material
- Tosca Laundry Soap
- Stylist-in-a-box
- Neck lace
- Ear rings
- Hangers
- Fashion Accessories:
- Designer jewelry
- Pouch Handbags
- Belts, Scarves, Gloves, Hats
- Classic Lingerie
Badax Fashionista offers home delivery and on spot selling.
3.0 MARKET ANALYSIS
There are various economic forces that affect apparel retailers. Consumer confidence is the most important; people don’t shop when they are not feeling good. Unemployment also has an effect, in that fewer women out in the workforce means less disposable income for high-end quality clothing. Though, the large local fashion designers in Nigeria are working to bring designer apparel to the masses. Although they can’t compete on quality, their continued development of the trend could have a direct impact on retailers who sell designer clothing during tough economic times.
Fortunately, the luxury goods market, of which Badax Fashionista is a part due to the high-end brands of imported materials it will carry. According to Research report by AZ, 2020 Women’s spend so much on their daily wears (Clothing, accessories and foot wears), most especially the working class in Oyo state. “Fashion is a requirement for those who are high in their success.” -Luxury Consumer
In the luxury market, luxury consumers (defined as “affluent” who have household incomes of over 1,000,000K) spent more in 2020 than 2012 and 2013. Based on AZ 2013 research focus group reports, the report shows that women of class see apparel and accessories as more of a necessity than a luxury. This is good news to boutique retailers. There are over 80 clothing boutiques in the Legunlu Area; approximately 19 percent of these generate over 30,000,000 in sales monthly.
Apart from luxury buyer in Legunlu LGA of Oyo State, an average corporate women that earn starting from 100,000 naira monthly spends nothing less than 20% of their income on clothing, accessories and foot wears (AZ, 2020). This reason is one of the reasons why the base will be situated between Middle class and luxury households in Legunlu.
Our marketing strategy also covers friends and families outside Legunlu that are planning for an occasion and need someone to get them the kind of Aso-Ebi needed for the events.
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Market research report; AZ, 2020
3.1 TARGET MARKET SEGMENT STRATEGY
Legunlu is rated amongst the top Oyo state residential / industrial area with high literate household. At an average age of 25 years, Legunlu professionals are highly affluent, with an average family household income of 200,000. Close to 70% of the target customers living in this area have a bachelor’s degree and some other professional certificates. BF customers will learn about the outlet through the following sources:
- Friends & Customers (word of mouth and email)
- Social Media platform (Twitter, Facebook, BBM, BBM Channel, Blog, Whatsapp, Instagram)
- Women’s Fashion Magazines articles
- Fliers
THE PRIMARY CUSTOMER
The primary BF customer is a professional woman with a household income over 100,000. Her main characteristics are listed below:
Demographics
- Professional woman (ages 25-60)
- Household income starting from 100,000 monthly
- Bachelor degree holder
- Lives in an average or higher-income in Legunlu and its environs
- Friends and family outside Legunlu
Psychographics
- Looks for bargains (seasonal fashion) but willing to spend money on quality, core items
- Would like more time or help in understanding what clothing is right for her
- She wants to look her best because she wants to feel good about herself as well as make a good impression at her job
Leisure Activities
- Listens to fashion programmes
- Supports the Arts
- Reads Vogue, New Yorker, Bon Apetit, Lucky
- Watches Fashion programme, Red Carpet Shows
- Internet savvy
- Travels, owns a passport
- She enjoys eating out as well as taking time for herself at the spa or getting a mani-pedi
Clothes Shopping Behaviors
- Spends over 200,000 for clothes each year
- Shops at Boutiques and shopping mull
- Wears medium and large sizes (males & females)
- Buys classic Aso ebi, corporate /casual wears, pants etc
- Looks for classic, basic items each season, with 1-2 trendy items
- She cares about how she presents herself, enjoys fashion, and looks for quality over quantity
Customer Needs, Expectations and Buying Patterns
The BF targeted customer loves to shop and enjoys going to boutiques. They are knowledgeable about designer fashions and tends to shop for seasonal wardrobes twice a year plus picks up various fashion and basic pieces throughout the year. Many times she shops to “browse.” By offering fashionable accessories and wardrobe organization items, BF will be able to grab a larger share of their wardrobe budget. our target customer are people that are used to coming into the store and browsing through the clothing items and trying on what interests her. They expects a warm and comfortable environment and nice dressing rooms and even sometimes taking the products to them. These set of people enjoys being left alone but also enjoys the special touches of personal shopping assistance and having the ability to special order items. Our customers will also include Directors or CEO-level job and that could potentially be reached through her office for personal shopping services.
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“Why People Buy,” AZ, 2020
BF Shopping Behavior Research of Legunlu, 2020
Economic, Cultural and Environmental Conditions
Weather, seasonal events, holiday shopping, competitor marketing, Oyo tourism and the strength of the dollar can all affect the performance of BF. On a macro-economic level, consumer confidence, interest rates and inflation rates all have an effect. Rising unemployment, political concerns and deflation also pose risks.
Positive Factors:
| Clothing Industry | Impact on BF |
| Very low interest rates | Cost of financing low |
| Easy availability of consumer product | Higher purchasing rate |
| An accessible location | increase in patronage and attractiveness of new customers |
| A relatively low personal savings rate | Increased consumer spending |
Negative Factors:
| Clothing Industry | Impact on BF |
| Weakening consumer confidence (influenced by global terrorism, tension & uncertainty) | Decreased sales |
| Slowly increasing unemployment | Value and sale shopping (can also be positive impact) |
| (Negative side of:) Significant continued layoffs at larger corporations require job migration and lead to large numbers of consumers employed as temp workers | Reduction in working women who can buy luxury items |
Competition and Buying Patterns
BFhas stiff local competition with the many wonderful boutiques in Los Angeles. Direct competitors include those boutiques that carry some of the brands that BF plans on carrying or could move easily into carrying, and are located in Legunlu. Indirect competitors are those boutiques in Legunlu that focus on a different target market or do not carry lines that BF will carry, in addition to well-known boutiques in other metropolitan areas.
Direct Competition: are outlets around the boutique located street that sells wears.
Indirect Competition: Are outlets that are not in the same area but have a strong brand in the market, also online stores that sells our kind of products e.g Jumai
Main Competition:
From a “look & feel” perspective, as well as consideration of designer lines that BF will carry, boutique outlets for luxury customers in Legunlu are considered the main competition.
4.0 STRATEGY AND IMPLEMENTATION SUMMARY
The targeted customer of BF are Corporate male/female whose monthly income ranges from 100,000 -1,000,000.The primary focus for BF marketing strategy must be to increase sales and profitability in its core card business quickly without resorting to the expense of direct mail flyers that have not been thoroughly market-tested. This can be achieved by gaining entry into the large business supply retailers, and to take the necessary steps to make BF social media platform a useful sales generating tool. Friends and customers on our social media platforms will always be invited when BF will be displaying new order.
4.1 COMPETITIVE EDGE
Positioning Statement
BF provides professional women/man with upscale designer clothing and exclusive personal services. Our main competitive advantage is the unique Style Assessment and education emphasis in helping women/men develop their personal style.
Brand Positioning
The name RANTI was chosen to give our prospective customers a kind of western feelings of what they are coming to buy and also a classic fabrics and wears that were imported. Classic clobber is added to the overall name to suggest that customers can come to the boutique to classic and exceptional lace, Atiku, office ware and accessories for themselves. By combining Badax Fashionista, BF looks to be the leader in providing exceptional service and assistance for corporate and family male and female fashion needs. The elegance of the name suggests the types of clothing and accessories that will be featured.
Brand Personality
Innovative | Stylish | Contemporary | Modern | Fresh | Approachable | Elegant
The overall brand personality of BF aspires to be fashionable, customer-oriented, innovative, refreshing, stylish and educational. The boutique is a place where women/man can go to transform themselves with beautiful clothes and take advantage of the Style Assessment and other services that help them determine the right clothes for their unique selves. We are a shop that educates. We help our customers learn about the designers, gather with their friends, and have fun during the process in a conducive environment.
Promotion
The following promotional tactics for generating buzz and awareness about BF will be implemented:
- Personal selling and word of mouth via networks of friends, stylists and customers
- Unique visual displays in storefront on a weekly basis
- Constant adverts on social media platforms
- Sales Promotion such as store events and bi-annual sales
Other important marketing strategies, such as developing strong customer relationships (retention), will utilize a different mix of marketing programs.
4.2 MARKETING STRATEGY
Badax Fashionista will for a start build on relationship with family and friends occasions is selling most of our products. Also constantly, we will be advertising on major social media platform where our targeted customers her, moreover, referrer would not be overlook.
4.3 SALES STRATEGY
Sales Strategy
Product/Service Selection
To overcome seasonality concerns, BF will carry 20 percent of merchandise in fashion and wardrobe accessories. Additionally, BF will provide alterations, personal shopping services and special ordering for our customers. Special Orders are a huge benefit as BF obtains full-price sell-through and there is no floor space needed to sell the article.
Pricing
In the feasibility study conducted in Legunlu, 49% of households with a 100,000 income monthly agree, “When I really want something, price is no object.” At BF, we are very committed to bringing high quality clothing to women and men and the prices will reflect a range of mid-to-high pricing. Profit margins of 15-20% we be obtained on each sales.
Location
BF will be located in an upscale neighborhood in Legunlu. A significant proportion of the target market lives in this area. BF will work with the local merchants association as well as local publications to generate PR and shopping in the neighborhood. BF will also attract customers from throughout other LGA close to Legunlu as well as the few people of that targeted status who come to Legunlu from out of town to shop.
Style Concierges
Most potential buyers especially women are intimidated by upscale fashion boutiques, as many sales associates can come across rude and snobby. Additionally, the sales pressure from an associate can be a huge turn-off to a potential customer as it doesn’t allow a woman to browse and get to know the store’s products at her own pace.
Sales Forecast
BF will start with a minimum of 20 customers in that area after the opening of the boutique. Each month, the sales forecast and open-to-buy (OTB) plan will be reviewed with BF inventory service provider, Retail Merchandising Service Automation (RMSA), against the previous month’s sales to ascertain any adjustments and make the appropriate changes. With average monthly sales of 500,000 naira monthly, at least a 15-20% profit will be recoded
4.4 MILESTONES
All the mention milestones in the above table will be sole carried out by BF manager in the person of Toni Ranti. She will be responsible for networking with her male / female friends at events and every other places in Oyo state.
5.0 MANAGEMENT SUMMARY
Toni will be the sole manager of the company. She started the business two years ago. She has good bargaining skills, outstanding inter and intra personal skills combine with good communication skills. Also an additional staff that will be sales representative will be employ.
Also a skillful marketer /sales representative will be employed by the company in order to achieve the proposed sales plan.
6.0 FINANCIAL PLAN
The business intends to grow faster. as proposed in the sales forecast and cash flow a minimum of 10% increase on the number of customers will be always be maintain by BF.