Lingerie Retail Clothing Store Business Plan Leave a comment

Introduction

This plan describes the financial and promotional strategies of Bravo intimates, which will be located downtown Royal Oak, Michigan. This exciting venture will provide a need-based women’s apparel store in the metro area. The second season will be expanded to include mastectomy supplies. No major mastectomy store is available in the metro to serve this customer. Bravo Intimates is expected to have the largest market share in the area through its active support of women’s organizations and communities, as well as connecting events with in-store promotions. Our ultimate goal is for Bravo Intimates to be Michigan’s premier swimwear and intimate apparel store. We will fit every customer in fashionable swimwear or bras, and enhance her silhouette.

A portion will be put in a bank account to help us purchase our own building. We are tentatively planning for year 4.

The Company

Bravo’s management team is strong and experienced, with more than 35 years combined experience. We have all aspects of the business covered with each member of our team working in their respective areas of expertise.

Rebecca Fall will serve as the owner/operator with 55% equity and be responsible for customer sales, buying and fittings.

Lucille Snows is a co-owner, with 26% ownership. She acts as a merchandising consultant and employee training.

Deborah Summers – She will be a 19% owner and act as an Operation manager responsible for accounts payables, inventory control and in-store promotions.

The store will be located in the downtown shopping district of Royal Oak, Michigan. The store is located on South Washington Street, which is the main upscale street in town. It measures 2,000 square feet (10 x 200).

The Products

We will only sell brands that we feel meet our standards for quality and fit. We will be introducing new brands to our customers.

Bravo will stock quality American and European products such as Rigby & Peller and Prima Donna. Our expertise and concentration is in bra fitting full-busted and full-figured women. Our first product will consist of bras/intimate clothing, followed by swimwear/At Home-wear, and hosiery.

Bravo will expand as it meets its sales and profitability goals. On our first anniversary, we will be expanding in the following categories: bra/intimate clothing, swimwear & accessories, nightwear & at home-wear, hosiery.

The Market

During the last three years the total women’s intimate apparel, or innerwear, market grew by 10%, to $11.8 billion. All product categories saw strong growth during this time, with the most notable growth being Bras (17%) or Bottoms (12%) The last eight years have seen a rise in consumer awareness about proper bra fitting. Since 2005, independent stores all over the country have experienced double-digit sales increases. This has been due to two factors,the clothing industry has featured more skin exposing fashions that require speciality foundation garments, and fashion column writers have been stressing the importance of bra fitting along with mentioning the speciality stores in the area and their services.

Bravo Intimates was able to capture $304 million from the $10,702m market. This is in addition to $341 million of $11,797 millions that Bravo Intimates had accumulated over the past two years. The largest market share was gained by direct mail merchants in the last two years. They accounted for $914 million of the total market. Most of the increase was due to Internet sales.

We have estimated the number of prospective customers in the Royal Oak area as 94,201, and, knowing the missed opportunities of our competitors, this strongly indicates that there is a large void in the market. Accordingly, we see a niche market for intimate apparel stores that can meet all the needs of Tri-county women.

Financial Projections

Bravo Intimates’#8217 are following these financial goals:

• to achieve a net profit margin of over 7% the second year of operation and 15% the third.
• To make a net profit exceeding $100,000 the third and fourth years.

For such numbers, we need to raise approximately $196,000 for start-up, which includes $80,000 for initial inventory.

We will apply for a five-year loan through National City Bank in Royal Oak. To make the first payment as flexible as possible,

1.1 Objectives

• To establish a point-of-entry shop for top lingerie and swimwear.

• To attain the largest market share possible in the region for speciality garments foundation clothes.

• To actively support women’s and other community organizations by connecting events to in store promotions

• To achieve a net margin of more than 7% the second and 15% the third year.

• A net profit over $100,000 in the third year, and $41,000 the second.

1.2 Mission

To be Michigan’s premier swimwear and intimate apparel shop.

1.3 Keys To Success

To succeed in the intimate apparel business we know we must:

• Quality brands carry a range of foundations in various sizes, styles, colours, and quality.

• Our competitors are not able to compete with us if we don’t carry basic and fashion brands.

• Assist customers in fitting and building a wardrobe for all fashion needs.

• Continuously monitor our sales and adjust inventories accordingly.

• Excellent customer service is essential to a positive body image environment.

• Advertise in areas where our potential customers are likely to learn about us.

• Keep up-to-date with the latest trends and technology.

• Have a variety of price points, knowing that women come in all shapes, sizes and economic levels, with the average price point in a middle range.