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mydesign.BV

GROUP 9

E-commerce business plan – march 2009 Group 9

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mydesign.BV

E- Commerce Business Plan Date : 9 March 2009 Group 9 I.

mydesign.BV mydesign.BV is a clothing company that peculiarly based on the design and everything about vintage and retro, back to 1970-1980’s. We pride with ourselves on offering a friendly experience to the costumer to choose their own vintage and retrodesign clothes with various choice of reasonably price. mydesign.BV provide an online service of buying individual vintage clothing that honestly described and promptly delivered to the costumer. For our first step, we would consider a smallscale industry with the employee not more than 25 person. The company will be an independent factory of making clothes, especially for female, with the challenge of designing a unique vintage-retro style, and an extraordinary design that will satisfy costumer that become the vintage-retro lover.

II.

the business idea The business idea came from seeing the opportunity in the market of clothing nowadays. People seems having new taste of dressing and wearing the clothes with the influence back into around 70’s – 80’s, but still, with a bit touch of simple and modern style. The design about the vintage-retro thing become a lifestyle and many famous people (Hollywood artist, singers, actor – actress) also make it become more famous because they are also loving this kind of dress. This increase in interest is due in part to increased visibility, as vintage clothing was increasingly worn by celebrities, e.g. Julia Roberts, Chloe Sevigny, Kate Moss, and Dita von Teese. Vintage clothing is a generic term for new or second hand garments originating from a previous era [1]. But, our product is not real vintage-retro clothes (the original clothes from the past). We provide new clothes with the touch of vintage-retro and sophisticated modern way of dress. We will have our own designers that will always up to date with new design and keeping the track of designing vintage-retro clothes.

III. strategic positioning of mydesign.BV • •

Become the number one in service in 2 years Become the leading vintage designed clothing B2C e-commerce in the Netherlands in 3 years

III.i. value propositions Whom ? • This business intended to the young female modern people who loved to dress in vintage-retro design, with their own choose of model, colour, fabric and size. • Vintage-retro dress lover • Someone who like to dressed up like her favourite artist back into 70’s-80’s How? • This is a unique way of buying clothes because every design will be unique and not produced in a mass number. • The costumer will feel free to choose her clothes based on our own design, pick the favourably colour, which fabric did she want and choose her own size.

E-commerce business plan – march 2009 Group 9

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mydesign.BV •

The costumer will easily buying the clothes online from our website, easy and secured system payment, with many types of card (include : Maestro/Eurocard, Visa, VisaElectron or with PayPal, MoneyBookers, iDeal, Western Union or with the regular system of bank transfer), and will get the service of “not-more-thanONE-day“ delivery system. We will put our store in the social network system (such ; facebook, multiply, etc), in order to make a first step, developing the network, based on our existing friends. By doing the network-based marketing, it will help us to make people have higher trust to our product, and also using existing customers to help sell to new ones.

III.ii. ecosystem of our business Suppliers • We will have our own suppliers from Indonesia, China, Pakistan and Vietnam that will provide us for a unique motif from those countries, different kind of fabric that rare to find in the Netherlands • The price for the material will be much cheaper, but still, we will provide the clothes with all number one quality Partner • Delivery system : We will have partnership with company that giving service in delivery system, 1st to get our raw material from the suppliers country, 2nd to deliver our clothes to our costumer (e.g.: FedEx, DHL, etc.) •

Design : We have a big chance to have a partnership with other designer to brainstorm and having some activities to release our new product. Also we will take an opportunity to give our design clothes to be shown in a female magazine, and any kind of show by a boutique or independent store that will sell our product or clothes

III. iii. overall strategy Strategy from mydesign.BV : “unique design, my own design, vintage-retro lover !”

IV.

product and service Our product will be the dress and vintage-retro clothing for female that loved to dress with vintage and retro, with good quality, great design and reasonable price. The product will be very unique because we have our own designer that also such loving the vintage-retro thing. There are 2 main types of product, our Own and Required product: • Own product : we will sell our own product, with the design originally from our own designer. • Required product: we provide the service of required design from our costumer, based on her required style (she first must upload .jpg file, the picture of her desired style, it can be from an actress photos, picture captured in the magazine, even picture from random people from the street!) and give the preferences of fabric, motif that we provide and give the description of her size.

E-commerce business plan – march 2009 Group 9

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mydesign.BV

Product 1 Browse Website

Choose the product

Confirm and pay

Receive the product

Product 2 Provide picture&size

Choose

Confirm&give command

more

options Designed by our designers Fig 1

Services: we provide an on-line private designer for each costumer that they can upload their desired style, and we will reply the confirmation if we can do the design and the clothes, then send her our own sketch and design based on her file that she uploaded before.

V.

target market The main target of this market is females, who love to dress in vintage-retro thing style.

V.i. market niche and potential clients •

Market niche The target market segment for vintage clothing is currently active. The main segment is female upper 20 years of age. They can be ordinary with high income, or professional women having interests in this type of fashion, or they can be celebrities (actresses, pop singers, etc.). These women are also the people who can be on-line frequently.

Potential clients Potential clients are people who are capable to pay for the series of product but do not currently have demands for the products. They can be students (high school, university student), young girls in arts fields, young-female executive who loves to dress in vintage-retro style, ladies who become vintage-retro lovers, women who intend to dress like her actress back in 70s-80s.

Have you already put in an offer and what were the reactions? Our colleagues are really interested in this fashion and want to buy. We are now in contact with some professionals and young women in arts fields and they react positively to this business.

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mydesign.BV V.ii. estimation of the size of the market With this business model we believe that we will have around 300 customers per month in the first 3 months. Together with the development of the business (and our reputation), we estimate the number of orders would increase 25% every month.

V.iii. how are we going to sell your products and services? •

When a client comes to the website, they can choose a design in mydesign category that she likes. The client can enter his or her size, set of colour she preferred for the design, what kind of fabric does she wants and then click Order :  For common product / Own : the customer will directly go to the page of payment system, fill in the Name and Delivery Address, get the online bill and will get more detail info about the delivery  For Required product : the customer will be informed in 12 hours about the confirmation whether we can make her desired style based on her .jpg file that is given to us, how much the price that we ask for that clothes, and the confirmation about the sketch of the clothes that is made by our designer based on her preferences

• • • •

VI.

Customers can choose to pay by cash when receive the product, or can use the epayment services from bank accounts available in the Netherlands. We are going to test market the product and services on website (with friends, volunteers, professionals, through both real and on-line social networks) on the website before starting the real sales. E-commerce plays a crucial role in this business since the Internet (on-line community) is a great market for doing this business. On-line purchasing could make customers more convenient and help them save time and money. Through the website customer can choose or decide the features of the design and the clothes she want. The system also provides the quick pricing mechanism and quick response for their order (12 hours to let them know we can produce or not).

competition The competition in this industry will be around stable clothing company with the low price clothes (H&M, C&A, etc) and common clothing store.

VI.i. who are our main competitors? •

On-line shop (e.g. eBay) There are many shops on eBay that sell vintage dress and relevant products all over the world. They provide both new and second hand vintage dress, and most with very low price (around €20).

Low price clothing company (e.g. H&M) These kind of clothing companies grew fast these years and have attracted a great deal of customers. For instance, H&M, known for its fast fashion clothing, offerings for women, men, teenagers and children. H&M has more than 1,700 stores in 33 different countries and employ over 73,000 people.

Ordinary clothing shops Both on-line and real stores, they can attract our customers to choose their products while making decisions to buy clothes.

E-commerce business plan – march 2009 Group 9

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mydesign.BV VI.ii. differentiation •

Customization: for our competitors, they provide normal cloth and some product similar with ours but these products are usually designed follow the mode. Therefore the main difference is that we allow the customers to participate in the design process in order to attract them and also offer them more diversity. For example, customers can show us the dress they want by pictures or other ways, based on their requirements our designer will design the customized product, moreover, multiple material and colours can be chosen by customer.

•

Design for you: For example, customers can show us the dress they want by pictures or other ways, based on their requirements our designer will design the customized product, moreover, multiple material and colors can be choosed by customer.

VII. personnel In the first 6 months we will outsource the website. Since website goes live: we need 24 staff (includes four of us) Maintenance team (9): people maintain this website, including 2 administrators, 1 moderators, 3 graphic designers, 3 content creators (1 full-time and 2 collaborate students) Marketing (5): 1 manager, 2 staff + 2 students Sales (4): dealing with receiving orders, purchasing raw material and order from costumer Business development (3): 1 managing suppliers, 2 creative team in brainstorming modern vintage-retro dress Producing (3): 1 person cutting-the-fabric, 2 semi-professional sewer/tailor

E-commerce business plan – march 2009 Group 9

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mydesign.BV

APPENDIX Financial Data Planning of mydesign.BV * All amount in Euros (€) Start

Year1

Year2

Fixed Assets: Building, Refurbishing

1000

4800

7800

Machines, Equipment, Inventory

5900

6041

7225

0

0

6900

10841

15025

2000

2500

3500

500

550

600

0

0

0

1000

0

2000

3500

3050

6100

Starting and First Cost( C ) (€)

10400

13891

21125

Total Investment (A+B+C) (€)

21400

13891

24125

Means of Transportation/vehicles

Total Fixes Assets (€)

0

Current Assets Stock Work in progress Debtors Cash, Bank and giro Total of Current Assets (€)

Assumption : Building, Refurbishing: As it is mentioned that we have home industry so we start work in one portion of house. Let us say in the beginning we have to pay only the advances and some refurbishing cost. For the first year we have to pay the rent that 400(per month)*12= 4800. In second year we have plan to extend our business so we will extend the building too. More advance have to pay approximate 400,and the rent will be increased from 400 to 600, I have consider some refurbishing cost too. Machines, Equipment, Inventory: In the start we need some computers and some stitching and other related machinery also we need some furniture too. In first yea to maintain the risk factor we kept some money for repairing the machinery. I have consider the depreciation of 1% from the start. In the second year we are planning to expand the business then we need more investment we have consider the further investment as 25% of start cost for machinery and 20% for furnisher 20% .For ease I am giving some calculations here: Total=875+400=1275 +6041-( Year1*1% (depriciation60.41)=7225 Means of Transportation/vehicles: Our business type do not need any means of transportation in the beginning. we’ll consider it in 4th year.

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mydesign.BV Stock: We begin with the stock of about 2000. For that we can offer best services in less time. we will keep the starting stock along that and assume the 25% increase in the stock in first year. Due to extension in the business we will add more money in the stock to fulfil the increasing demand of customer. I have planned to increase approx 50% of start. Work in progress: It is our business strategy that in the start we will not spend much money on the inprogress work. In the first year we can analyze the customer demand trend and can spend more money on the in-progress work. I have assumed the increase about 10% so 500+50=550. I consider the same assumptions for the second year too now the total is 550+50=600 Debtors: Our business type do not support any debtors. Cash, Bank and giro: We kept a reasonable amount of money in bank or in hand to be on safe side for any kind of demand, shortage or brakeage etc. In first year we carry the same money will not increase it but due to extension in business in second year we will increase the money. Start

Year1

Year2

3000

3000

5000

0

0

200

5000

5000

7000

8000

8000

12200

0

0

0

Bank Credit

2000

2000

2000

Other Credit

0

0

0

1000

1000

1000

0

0

0

3000

3000

3000

11000

11000

15200

List of own Contributions Savings Profit that remain in the company Loan without interest Total of own capital (A) (€) Foreign Capital (Long Term) Mortgage

Foreign Capital (Short Term)/current liability Suppliers Credit Advance Payment Total of foreign capital ( B ) (€) Total available capital ( A+B ) (€)

Assumption : Savings: Owner added money in the start and then in the second year not in the first year. Profit that remain in the company: It is revealed from the calculation that in the first year profit will not considerable so we will keep the 10% of the profit from second year. Loan without interest: This is the money we get from family and in the second year we get 20% more investment in the business from family. Mortgage: Not applicable on us.

E-commerce business plan – march 2009 Group 9

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mydesign.BV Bank Credit: This bank credit is on 5% interest. Suppliers Credit: In the beginning we took a shipment in which there was 1000 credit. we continue with this in the first and second year Advance Payment: No advance payment exist in our business in such a beginner level. May be we will have in the 5th or 6th year of business. Year1

Year2

Turnover (Sales Excl..VAT)

2000

3000

Costs of Buying/use of raw material

1500

1650

600

600

2100

2250

1400

1600

Production Cost

550

600

Transportation./Shipping cost

250

275

Offices and inventory

300

300

General Costs

100

100

Interests Deprecations

100 59,

100 60.41

Total Costs (E ) (€)

2700

3035.41

Net Results(D-E) Special income and costs Result before taxes Result after Taxes(€)

-600 1000 400 324

-785.41 1500 714.59 578.8179

Services third parties Gross Profit/Added Value ( D ) (€) Cost Personal Cost

Assumption : Costs of Buying/use of raw material: We’ll mostly buy the products made by the suppliers. We will buy raw material in limited quantity only and will increase it 10% in second year. Services third parties: These are the services provided by the people in Indonesia, Pakistan china and Yatnaam and the Charges by credit cards companies and online securities etc. Personal Cost: This can be the salary of the owner that will increase 12% per annum. Production Cost: I have consider the production cost is equal to the cost of work in progress Transportation./Shipping cost : I have assumed that we will have two shipments per year and each shipment cost me 150 Euro. In the second year I have assumed the increase in fair so shipment cost increase automatically. Offices and inventory :It is a rough estimate 30*12 =360 and I have not considered any increase in second year. Interests: This is the interest we are paying in bank credit that is 5% Deprecations : It has been calculated in the fixed assets portion. I have consider it 1% of start. Special income and costs: These are the incomes from savings and from other sources to support the newly born business. Taxes: I have assumed taxes as 19% of sales.

E-commerce business plan – march 2009 Group 9

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mydesign.BV

Month 1 to 12 of Year 1 to 2 In: 1. Start(cash, bank, giro)

1000

1000

2. Cash sales 3. Debtors 4. Other income 5. VAT back 6. Vat on sales, debtors 7. Total income(€)

2000 0 1000 1500 380 5880

2500 0 1200 1500 475 6675

Out: 8. Buys

2500

3500

9. Company cost (excl. VAT) 10. Interest + repayment 11. Private withdrawals 12. Investments 13. VAT on buys/costs/investments 14. VAT on taxes 15. Total costs(€)

100 59 200 0 475

100 60,41 200

3334

4525,41

16. End result (7-15)= start of next month

2546

2149,59

665

Assumption : Assumptions about income statement has been discussed earlier in other tables. So this table can been seen as the calculation table to give a bird’s eye view of our business. Design for the website (need further design and planning) :

Reference [1] [2]

http://en.wikipedia.org/wiki/Vintage_clothing cover of this business plan © Hera Kusyuniansari; www.heraindesign.com

E-commerce business plan – march 2009 Group 9

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Group 9 - mydesignbv