WARDROBE: YOUR OLX/MAGIC BRICKS AMALGAM FOR FASHION

Submitted to:

Mrs. Sumita soni ma’am

Submitted by:

Praveen Mukati 141109029

ABOUT WARDROBE

• Wardrobe is an online dress sharing and renting platform; providing free pickup, delivery and dry cleaning services from local boutiques and international fashion houses at cheap affordable prices and user satisfaction

CHECK DESCRIPTION

BUSINESS DESCRIPTION

• Most of the designer bridal or party wear dresses that we buy are pretty costly to buy and are still costly even for renting. The problem arises especially during the wedding or party season, as we have to get the best dress, but buying it is very costly and most of the bridal and party wear dresses are used usually just one or two times. So people either have to shed a huge amount of their hard earned money just on these dresses or approach rent houses which give these dresses on higher prices.

• The unique thing about our product is that we make dresses available at very cheap prices, and also offer free pickup and delivery services to form a link between the boutiques and customers.

Marketing :

Research and Analysis :After market research, we've come to the following conclusions:

1. We want to start this venture in a Tier 3 city like Bhopal, because this avenue is

unexplored and we see a potential for our business here.

2. The target crowd is men and women from the age of 18 to 40 years, and the market

size is around 6-8 lakh people.

3. Since, this avenue is unexplored in Bhopal, we dont have any competition. This idea

is under development in a lot of other cities of India, but Bhopal is still unexplored.

4. Market share - since there is no competitor for us in city like Bhopal so there is

currently no market of online dress sharing , we'll be the first one launching this in

market so we'll be the creator of this type of market in bhopal hence owning complete

market of online dress sharing in starting , according to time there will be surely

competition and then our share will be varying.

CONTINUE..

Marketing plan

Marketing and Sales

Pricing :

Most of the prices will be in range of 1/10 to 1/5 the real price of the

dress depending on the brand and type of wear. 1000 is the fixed

minimum price on all dresses.

Advertising and promotions :

We'll be advertising through pad advertisements on youtube, and other

social media like facebook and instagram. We’ll also be having our own

youtube channel which will post videos on reviews and user

satisfaction.

Financial operations :1. Money is required for setup :- office , furniture , staff , website , branding and

advertising, transportation cost , packaging cost, site management, salary ,office costs,

licence cost, electricity cost.

2. We have some estimated rates for these requirements(per year)

Office rent = 50k*12 = 600k

Transportation = 100k

Site management = 100k

Packaging = 30k

Salary = 2200k

Advertisement = 150k

Other = 320k

Total = 3500k rupees (this is minimum )

3. Arrangement of money ( we need at least 2700k rupees , so we'll raise total 5000k

rupees for perfect settlement of at least 2 years)

3.1. 5*500k = 2500k ( from us i.e. from 5 partners )

CONTINUE..

3.2. 1000k from bank if possible( preferring govt. bank like sbi )

3.3. Remaining will raise from as many as investors (maximum 25% share we are going

to give to investors )

3.4. Estimated earning (per year)

On a single order (average ) = 1k rupees from order = 500 rupees (our share )+ 500

rupees (boutiques holder's share )

On an average 4k orders in one year , 4000k/2 = 2000k

Our targets = 4k orders , 1st year i.e. 4000k/2 = 2000k

10k orders, 2nd year i.e.10000k/2= 5000k

20k orders, 3rd year i.e. 20000k/2=10000k

After that on an average

25k orders , single year i.e. 25000k/2=12500 k

Profit = Since it is completely new for Bhopal so it is possible that we

are not going to have any profit up to initial 6 months , but once

customers are habitual with our services and we are known in city we'll

start some earning , controlling our initial loss by 1 and 1/2 year i.e. our

breakeven

point and after reaching breakeven point we'll be increasing services and

earning profit , reaching

payback time period within 4 years .

Profit per order

An order consist of delivery charge(a part of our profit because we are delivering

free of cost ) +

labour charge +other costs + profit

So per these parts 50+100+ 50 +300 = 500(atleast)

i.e. 300 rupees profit from single order

So once we get to 25k orders per year , we'll be having 25k*300=7500k i.e.

75,00,000 lac rupees

per year.

Further enhancement:- once we are settle in one city, we’ll expand to more Tier 2

and Tier 1 cities.

Operations :

We have decided to set up the office in MP Nagar, Bhopal.

Advantages :

1. All areas of city are easily accessible from here.

2. It is a location with good connectivity and transport links.

3. Most of the major local boutiques and fashion houses have showrooms and

stores nearby.

4. The tax and land rates are cheap and affordable.

5. Expenses of labour is cheaper in Bhopal as compared to bigger cities.

6. Office expenses are favourable in a city like Bhopal, to grow a business.

Taxes :

1) service tax i.e. 15%

Team :

Management Staff :

The management staff would include the following personnel.

CEO - Day to day executive responsibilities.

COO - Day to day managerial responsibilities.

Delivery team - Comprising of 2 teams of 2 people each.

Web developer and technical support - 2 people

Sales and Marketing staff - 2 people

Support staff - 4 people.

Board of Directors : CEO, COO, Investors with shares more than 10%

Critical Risks :

1. Acceptance of the idea

2. Target crowd may vary depending on use of technology

3. Tie ups with international fashion brands

4. Bhopal being a Tier 3 city

5. Lack of investors

Alternative courses of action:

•Look for investors in other metro cities.

•Relaunch the product in any other city with more favourable factors.

•Offline options for booking and delivery.

Harvest Strategy :

After reaching the break even point in a Bhopal, we will reach out to

investors in cities like Bangalore or Mumbai, and expand our offices and

venture in one of those cities depending on other factors, and we’ll keep on

expanding it to other major cities of India.