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Coeur 2013 ACADEMY of ART UNIVERSITY FASHION MERCHANDISING STUDENT FINAL THESIS

KUAN-YU, HUANG 03124384

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Contents Chapter 1 Executive Summary 13 Summary

Chapter 2 Business Concept 16 19 20 21 21

Coeur Intro Inspiration & Motivation Mission & Vision Statement Objectives Unique Selling Points

Chapter 3 Marketing Background 24 Country Profile 26 City Profile 28 Location Analysis 31 The Golden Crown Hotel 32 Industry Size 34 Marketing Analysis 36 Market Value Forecast

Chapter 4 Merchandising Brands

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Summary Herve Leger Oscar de la Renta Judith Leiber Charlotte Olympia Alexander Wang Vender Information


Chapter 5 Customers Analysis 56 60 63 64 68

About Customer Demographic Segmentation Psychographic & Hierarchy of needs model analysis Customer Profile Survey Results Analysis

Chapter 6 Competition 72 Competitor Analysis 80 SWOT

Chapter 7 Marketing Plan 84 84 86 89 90

Objectives Situational Analysis Product Strategy Pricing Strategy Promotional Strategy

Chapter 8 Visual Design 97 Logo 98 Company letter 99 Business card/Shopping bag 99 Store Inspiration 100 Decor 102 Facade 104 Floor plan 106 Store Interior & Wall 108 Window display 110 Advertising 112 Facebook 113 Website 114 Events

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Chapter 9 Operations Plan 120 Operating Hours 120 Company Ownership & Structure 121 Wages 121 Employee Benefits 122 Company Organization 125 Payment

Chapter 10 Financial Plan 128 Overview 130 Traffic 130 Transaction 130 Total units per day & Total annual units 131 Total sales per day & Total annual sales 131 Monthly Sales 131 Gross Margin 131 Profit and Loss 132 IMU 132 Markdown 132 Main Expenses 133 Inventory 133 Start Up Cost 133 Cash Flow 134 Financial Planning Table

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Chapter 11 Appendix 144 Autobiography 146 Resume 149 References

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Chapter 1 10

Executive Sum


mmary

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Read us Anytime & Everywere Online

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Summary Coeur is a luxury women’s wear boutique in the Golden Crown Hotel in Taipei, Taiwan. We cover the best international high-end designer brands, including Oscar de la Renta, Herve Leger, Judith Leiber, Charlotte Olympia, and Alexander Wang. Couer will be launched during the spring 2016 season. Our target market is females between the ages of 26 and 48 who want an elegant style and high-quality products. The average retail price is $1,506. We aim to solve the problem of many female travelers who don’t bring formal clothing when they are visiting Taiwan or staying in a hotel, but who need a beautiful dress or accessories on short notice. Furthermore, our objectives are to build an impressive store image, create brand awareness, and develop a strong relationship with customers and earn their loyalty. At the same time, we aim to become a fashion landmark for women’s wear in Taiwan. The strategies of our marketing include providing stylish products, perfect service, and special events in the store, as well as offering online shopping to our valued customers. In addition, customers can order products through our website or app and our store associates will deliver the products to the customer’s hotel. This service is only available to the hotel’s customers. The service specifically considers customers who have been traveling all day and who want to enjoy private shopping and down time. Coeur’s start up cost is $252,470. We estimate the first year profit will be 3.5% and the total sales will be $720,008. The growth rate of the second year and third year will be 10% and 20%, respectively.

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Chapter 2

Business Concept 15


Coeur

is a high-end store in Taipei Golden Crown Hotel, Taiwan. The concept is to provide a regal environment showcasing a varied selection of high fashion luxury clothing. In many cases women do not anticipate the need to bring formal clothing when they are traveling or living in a hotel. They might need or want to wear a beautiful dress, accessories or shoes and not have it in their closet immediately. We want to provide distinctive products from which they may choose. The categories of products include designer dresses for all occasions; evening dresses, day dresses, wedding dresses, handbags, shoes and accessories. Coeur offers different international designers and high quality brands for women, such as Oscar de la Renta, Herve Leger, Judith Leiber, Charlotte Olympia, and Alexander Wang. No matter what the occasion, we will have a varied selection from these brands to meet their needs. Coeur’s high-end boutique aims to become a new fashion landmark that offers luxury designer brands, high-quality products, and exceptional services for women in Taipei. We want to give our customers, which include Taiwanese, visitors from Mainland Chinese, and International travelers, a different fashion perspective. Their purchases will help our clients create their own exclusive chapter in the story of their visit to Taiwan.

No. 108, Section 5, Xìnyì Rd, Xinyi District Taipei City, Taiwan 110 02-8722-1000

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Inspiration&Motivation The high-end store market has grown in Taiwan since Taiwan began accepting Chinese mainland visitors in Taiwan without the need of a visa. A high-end store in hotels is a huge opportunity because of this decision. According to Taiwan’s tourism department, more than 304,000 tourists from Mainland China visited Taiwan in the first two months of 2012. Furthermore, tourists from Mainland China have created more than NT$200 billion (US$6.94 billion) in foreign exchange reserves for Taiwan over the past three years. Recently, Taiwanese, Mainland China and other tourists enjoy shopping in Taiwan because there are more brands and better prices than in other countries. However, there is no one high-end store that offers integrated luxury items for women in Taipei’s hotels. Coeur meets this demand. Coeur high-end boutique takes its name from the French word for “heart.” We want our customers to sincerely like our products and services with their hearts; we believe that they are not settling because they have nothing to wear to an event, but making a purchase that they earnestly desire. In addition, Coeur’s pronunciation is similar to “cure.” We hope our services can cure any displeasure and fretfulness. As in the song “Cure for the Itch,” we expect everything in our Coeur high-end boutique to satisfy our different targets.

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Mission&VisionStatement Coeur provides high quality accessories and chic garments from designer brands for women who want to be fashionable, elegant and unique. �Cure for the itch and create a legend.� is our mantra. We promise to do our best to ensure that our customers enjoy our excellent fashion services and integrate our products into their life. Coeur focuses on the details. We use SPC (Statistic Process Control System) to make sure anything is of perfect quality as all of our products are imported from Europe and the United States. Statistical Process Control System is the practice of using statistical methods such as control charts and capability analysis to monitor and control a process. In SPC, we make use of statistical practices to examine a process so that suitable actions can be taken to ensure the products of quality. It preventing defects to occur and improving customer service. On the other hand, it allows quality auditors to create a complete record of defects which enables them to maintain quality at all of products.

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Objectives 1. 2. 3. 4.

Build an impressive store image and create brand awareness. Build strong relationships with customers and reinforce brand loyalty. Become a fashion landmark for women in Taiwan and enable them to enjoy their lifestyle. Achieve the sales and profitability in our business plan and expand to other districts or cities.

UniqueSellingPoints Coeur offers a variety of international designs and high-quality brands for women, such as Oscar de la Renta, Herve Leger, Judith Leiber, Charlotte Olympia, and Alexander Wang. No matter the occasion, whether a dinner, party, or wedding, these brands are excellent choices for women. Each brand is new to Taiwan except for Herve Leger. Furthermore, Coeur offers an online look book for customers. Customers can order online through our website or order by app from a smartphone. Our store associates will then deliver products to the customer’s hotel room ready to wear. This service is for hotel customers only. This service considers customers who have been traveling and playing the role of the tourist all day. Our hotel customers will feel that they have achieved a private shopping experience, which will also help the image of the hotel.

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Chapter 3

Marketing Backg

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ground

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CountryProfile Taiwan

is a dynamic multi-party democracy. The current president is Ma Ying-Jeou and the capital city is Taipei. Its estimated 2012 population was 23.3 million people and its 2012 GDP (PPP) was approximately 919 billion NT. The island of Taiwan lies some 180 kilometers (110 mi) off the southeastern coast of Mainland China, which lies across the Taiwan Strait, and has an area of 35,883 km2 (13,974 sq mi). The East China Sea lies to the north, the Philippine Sea to the east, the Luzon Strait directly to the south, and the South China Sea to the southwest. The shape of the main island of Taiwan is similar to a sweet potato, as viewed in a south to north direction; consequently, Taiwanese often refer to themselves as “children of the sweet potato.�

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Climate

Taiwan has a marine tropical climate during the summer, with sweltering, humid weather (above 30°C, 86°F) from June to September. In the winter, the weather is influenced by the nearby continent, and in the northern areas, the temperature can go as low as 8°C (46.4°F) at night. The best time of year to visit is from October to December. Spring is also nice, although it rains more than during autumn. During typhoon season, the east coast bears the brunt of the damage as it faces the Pacific Ocean.

Economy

During the latter half of the 20th century, Taiwan has been called the “Taiwan Miracle”. Taiwan is one of the “Four Asian Tigers” alongside Hong Kong, South Korea and Singapore. Today Taiwan has a dynamic, capitalist, export driven economy with gradually decreasing state involvement in investment and foreign trade. President Ma Ying-Jeou, elected in 2008 on a platform that promised a more open economic relationship with China, focuses on services, technology, and elements of manufacturing and business with China. The government statistics office raised its projection for Taiwan’s GDP growth in 2013 to 3.15% from an earlier estimate of 3.09%. The directorate merchandise exports for 2013 are expected to grow 5.11% from a year earlier, compared with an estimated 2.16% decline in 2012. Real fixed capital formation is expected to grow 3.01% in 2013, after an estimated 2.77% contraction in 2012. Taiwan’s economy is one of the richest in Asia.

Transportation

Foreign nationals from 41 countries can enter Taiwan visa-free as a visitor, provided that their passports are valid for at least 6 months upon entry. Visitors can travel to Taiwan by airplane or boat. There are two international airports, Taoyuan Airport in Taipei and Kaohsiung Airport in Kaohsiung. In Taiwan, people can take trains, planes, buses, and THSR (Taiwan High Speed Rail). All transportation in Taiwan is convenient and fast.

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CityProfile Taipei is the capital city of Taiwan. The area of Taipei is 271.7997 km2 (104.9425 sq mi). There are 12 districts and the city seat is located in Xinyi District. The government estimates the population of Taipei City to be 2.6 million people. Taipei is the political, economic, and cultural centre of Taiwan. The National Palace Museum, which boasts one of the largest collections of Chinese artifacts and artworks in the world, is located in Taipei. As a global city, railways, highspeed rail, highways, airports, and bus lines connect Taipei with the entire island. Two airports —Taipei Songshan and Taiwan Taoyuan—serve the city.

Climate

Taipei is in the northern part of Taiwan. Taipei experiences a humid subtropical climate with average annual temperatures of around 24°C (74°F). Summers are warm with sunny and humid weather and average daytime highs reaching 29°C (90°F). Winters are cool and mild with temperatures of around 11°C (52°F). Due to Taipei’s location, it is affected by the Pacific typhoon season, which occurs between June and October, and the rainy season is between May and September.

Economy

As the capital of Taiwan, Taipei has been at the center of the country’s rapid economic development. For 2012, Taipei’s average gross salary was NT$1,272,655 (US$42,422) and the average net salary was NT$ 1,018,835 (US$33,961). According to Law and Policy of Taiwan, Taiwan’s personal income tax rates are between 5% and 40%. On 28 April 2010, the Taiwan Legislature voted to amend the Income Tax Act to lower the corporate income tax rate from 20% to 17%. The corporate tax cut was effective retroactively to 1 January 2010.

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Income

The average monthly salary in Taipei in 2012 was NT$44,000 (US$1,515), lower than the NT$45,000 (US$1,550) recorded in the same period in 2003. In contrast, salaries have increased by an annual rate of 3.8% in South Korea, 1.8% in Singapore, and 0.8% in Hong Kong over the last 10 years. Taiwan’s economic growth stood at 0.6% in the first quarter of 2012 but dropped to -0.1% in the second quarter and rebounded to 1% in the third quarter. According to The Word Bank, Taiwan’s goods and services exports declined by 3.4% in the first quarter of 2012 and by 2.5% in the second quarter but rose to 1.8% in the third quarter. Investments also declined in the first three quarters in 2012. However, The World Bank projected Wednesday that Taiwan’s economy in 2013 would show the highest growth among the Four Asian Tigers, rising to 4% from a projected 1.2% for 2012. This projection, however, entirely depends on Taiwanese government policy.

Transportation

There are four transportation options in Taipei—bus, high-speed rail, taxi, and MRT (The Mass Rapid Transit System). In Taipei City, MRT is very fast and easy to use. Taipei MRT pretty much goes everywhere people want to go. Trains are comfortable and you can usually get a seat, except during peak hours. Signage is bilingual and announcements are quad-lingual (all station announcements are in Mandarin, English, Taiwanese, and Hakka). Most places in the city centre are within about a 20-minute walk of an MRT station.

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LocationAnalysis Taipei is the prime market for fashion retailers to increase their presence. Especially for Xinyi District of Taipei City. It is a fashion center in Taipei. In 2010, Uniqlo expanded their new shops in this area. Zara also opened their first store in 2011. Luxury brand retailers also think alike. Michael Kors has just opened a shop in May 2012. Burberry and Prada opened their largest flagship stores in the Asia Pacific at the same time. Coeur will be located in Xinyi District, which is at B1 of the Golden Crown Hotel in Taipei, Taiwan. The Golden Crown Hotel is the newest modern hotel of Taiwan’s capital city, which offers high-end stores, restaurants and bars, clubs, concierge services, and various events. Coeur will be a fashion icon in Taipei City. This area always attracts large numbers of local citizens and international tourists every day. It is also a leader in the newest trends, fashion brands and innovation for people. Taipei 101, Taipei World Trade Centre, ATT 4 Fun, W Hotel and Shin Kong Mitsukoshi Department Store are all nearby. The Taoyuan International Airport is just 30 minutes away by car and Songshan International Airport just 10 minutes away.

Xinyi District Region Eastern Taipei Area 11.2077km2 Population 226,541

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The Golden Crown Hotel According to Taiwan’s tourism department, the Chinese mainland is currently the major source of tourists to Taiwan. In 2011, more than 1.78 million mainland residents visited the island, a year-on-year increase of 9.4 percent. More than 304,000 tourists from the Chinese mainland visited Taiwan in the first two months of 2012. Additionally, tourists from Mainland China have created more than NT$200 billion (US$6.94 billion) in foreign exchange reserves from their purchases for Taiwan over the past three years, the Tourism Bureau said. The Golden Crown Hotel will solve their demand. The total number of rooms is 250 in this hotel that broke ground this year and will be complete in 2016. It is an exciting process as each detail has been formulated to establish the Golden Crown Hotel as the premier destination hotel in Taipei. It combines events, wedding locales, exhibitions, art, and restaurants with innovative menus and celebrity chefs. Events include fashion shows, trade shows, new product launches, press conferences and musicals. The hotel design has a modern and geometric concept in the interior decorating ideas. The mandate of the hotel is to become a fashion hotel icon in north of Taiwan. There are 7 types of guest rooms to accommodate different consumer needs.

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Industry Size The apparel retail industry in Taiwan consists of the sale of all men’s wear, women’s wear and children’s wear. The men’s wear market includes men’s activewear, casual wear, essentials, formalwear, formalwear-occasion and outerwear. The women’s wear market includes women’s activewear, casual wear, essentials, formalwear, formalwear-occasion and outerwear. The children’s wear market includes baby clothing, boys activewear, boys casual wear, boys essentials, boys formalwear, boys formalwear-occasion, boys outerwear, girls activewear, girls casual wear, girls essentials, girls formalwear-occasion, girls outerwear and toddler clothing. According to Marketline “Taiwan-Apparel Retail”, the Taiwanese apparel retail industry had total revenues of $7,005.7 million in 2011, representing a compound annual growth rate (CAGR) of 2.4% between 2007 and 2011.The Women’s wear segment was the industry’s most significant in 2011, with total revenue of $3,289.3 million, equivalent to 47% of the industry’s overall value.

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The Taiwan women’s wear market grew by 1.7% in 2011 to reach a value of $3,289.3 million. The compound annual growth rate of the market in the period 2007– 11 was 2.7%, three tenths of a percent higher than the overall apparel industry.

Taiwan womenswear market value: $ million, 2007–11

Apparel and accessory retailers form the leading distribution channels in the Taiwanese women’s wear market, accounting for a 71.6% share of the total market’s value.

Taiwan womenswear market distribution: %share, by value, 2011

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MarketingAnalysis In 2011, sales generated through clothing, footwear and accessory retailers were the most lucrative for the Taiwanese women’s wear market with total revenues of $2.4 billion, equivalent to 71.6% of the market’s overall value. According to the article “Luxury Brands in Taiwan Gear Up for China Tourists,” the influx of Chinese tourists has generated about $3.8 billion in revenue for the island. Last year, China replaced Japan to become the largest source of visitors to Taiwan. The newly permitted entry of solo Chinese tourists has seen international and local luxury brands step up their offerings in anticipation of robust demand. Last year, Chinese nationals spent at least $34.6 million in the Taipei 101 mall, with the single biggest purchase topping $346,000. Besides Taiwanese customers, the Chinese target customers will become the biggest market of our business.

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Bain & Company, Fondazione Altagamma. Luxury Goods Worldwide Study, October 2011.

Bain & Company, Fondazione Altagamma. Luxury Goods Worldwide Study, October 2011. Greater China includes Hong Kong, Macau and Taiwan.

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MarketValueForecast Business in the global branded luxury goods market is booming with year-onyear retail expenditure for 2013 forecast to expand by 17.3%, according to a new report from Verdict Research, Global Luxury Retailing. During 2010, Asia Pacific excluding Japan overtook the Americas for the first time as the second largest luxury goods market after Europe, and the region is now on course to account for 26.8% of the market in 2013. While Asia Pacific growth is particularly driven by China, which become the largest single global luxury market, new demand from other countries in the region, including South Korea, Taiwan, and to a lesser extent India, is also responsible for the strong performance. Highlights of Verdict Research’s Global Luxury Retailing include: • • • • •

Spending on branded luxury goods is forecast to increase by nearly 65% between 2010 and 2015 Accessories are the key product category in the luxury sector and will be the fastest growing category. Luxury goods houses continue to expand aggressively in Asia Pacific to be unique. Asia growth is forecast to be 10.5% in 2013 and an average of 10.4% from 2013 through to 2016. It will overtake the US as the world’s biggest retail market in 2016 Asia’s fashion and apparel market will continue to lead global growth.

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In 2016, the Taiwan women’s wear market is forecast to have a value of $3,546.9 million, an increase of 7.8% over 2011. The compound annual growth rate of the market in the period 2011–16 is predicted to be 1.5%.

Taiwan womenswear market forecast: $ million, 2007–11

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Chapter

Merch

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handising Brands

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Coeur

shops several different international designer brands that are very popular and famous in the United States and Europe. We want our Asian customers to enjoy the same taste that could be found on the Champs Elysees or Rodeo Drive.

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HerveLeger


HerveLeger Herve Leger was born in 1985 in the north of France and is often referred to as the “King of Stripes�. Practically every one of his designs has stripes or bands designed into his garments in some form or another. These colorful designs are made from elastic bandages hand-stitched together and are very distinctive. This brand can make women look more amazing and sexy. Retail Price Range: USD $600~USD $3800

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OscardelaRenta


OscardelaRenta Oscar de la Renta is one of the world’s pre-eminent designers and a staple of the American marketplace. The company was established in 1965, and currently produces a line of accessories, bridal, home products and fragrance, in addition to its signature women’s ready-to-wear collection. Retail Price Range: USD $1690~USD $4790

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JudithLeiber


JudithLeiber Judith Leiber, the American luxury brand was founded in 1963. Judith was an immigrant from Budapest, Hungary and achieved her success by designing and producing minaudieres that were whimsical and elaborate in design and construction. They have a geometric and art deco feel to them with each piece being of very limited quantity. For over 25 years they have frequently been seen at celebrity studded events as the clutch of choice for dressy events. Her styles are endless and varied with each piece being constructed in her studio in New York. Although Judith Leiber no longer is owned or designed by Judith Leiber the new owners have maintained that exclusivity and integrity that Judith Leiber instilled in all of her products. They are considered timeless and are still carried on the red carpet just as they were a quarter of a century ago. The range of products has grown from the minaudiere and now includes jewelry as well. Retail Price Range: USD $195~USD $7995

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CharlotteOlympia


CharlotteOlympia Charlotte Olympia Dellal launched her London based shoe label ‘Charlotte Olympia’ in 2006. Charlotte Olympia designs with classic shapes and precise attention to detail. Specifically the Dolly collection is an iconic best-selling court shoe with its distinctive gold metallic signature “island” platform. Each shoe is handcrafted in Italy and finished with the brand’s signature gold spider web on the sole. It is also a favorite of Hollywood stars, such as Sarah Jessica Parker, Emma Watson, Katy Perry and top model Kate Moss. Like Judith Leiber, Charlotte injects whimsy into her pieces with her signature spider web as well as her “kitty” flats. Retail Price Range: USD $295 ~USD $1595

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AlexanderWang


AlexanderWang Alexander Wang was born in San Francisco in 1983 and was schooled at Parsons in New York. His first collection launched in 2005. The label embodies a downtown style, drawing inspiration from a French chic style. Alex not only released a ready-to-wear fashion collection, but also designed the elegant accessories for stylish women. In 2012 he was appointed Designer of the Balenciaga line; his first Balenciaga collection debuted in February of 2013 to great critical acclaim. Retail Price Range: USD $198~USD $895

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VenderInformation

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Chapter 5

Customers Analy

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ysis

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AboutCustomer Target market Our target market is visitors of ages 26-48, who temporarily reside in the Golden Crown Hotel. These high profile individuals are desire to purchase fashion and luxury items. Most are within the upper income level and are college educated or post-graduate educated women. They could be married or single, but they are very passionate about having specific accessories and stylish garments. They purchase items that they fall in love with and although they are not frivolous in their spending, they do want distinctive items that are not found everywhere and they are willing to pay for them. They love their family and enjoy their work. They are confident, goal-directed women. They aspire to create a trend or want to be in the spotlight in society. They are often noted by their peers as having impeccable taste and when travelling their purchases must meet these very high expectations that they have placed upon themselves.

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Secondary target market Our secondary target market is the family and friends of our primary target market. For example, most of these women travel around the world with their friends and family, the secondary target market could be their sister, mother and other female friends. Their ages are between generation X (1961~1981) and generation Y (1982~2003) and they also follow trends in fashion and pop culture.

Tertiary target market Our tertiary target market is local Taipei women & men. Women always desire for fashion products. Sometimes, they have events and indulge themselves with dinner at one of the three restaurants in the hotel. Men customer try to satisfy their girlfriend and wife. Their age and education is similar to the primary target market. A tertiary target market is the peripheral segment of a marketplace. They are usually new and inconspicuous. We will develop our tertiary target market and its potential is so great that we feel that they will become our secondary market. Hotel boutiques have often been overpriced and overvalued with weak assortments based more on the owner’s wardrobe than that of the target market. We will change this perspective as we want to be only the place where our guests shop but also where local women shop.

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Potential market Since our major market is focused on our hotel’s female customers, we also need to concurrently develop our potential market. The different advantage over other apparel retail stores is our brand and service. Our potential customers will be: • Department store customers The customers in this area have more consumption demand. They are demanding in that they expect high quality and a strong positive experience when they are shopping. • Other boutique customers The boutique customers have high brand loyalty. When a woman finds a store that meets her demands for service, curated product of high quality at competitive prices they support the boutique’s brand and service; if a boutique can offer a competitive environment as a department store or another boutique with service that caters to them they will frequent your boutique. • Golden Crown Hotel’s male customers Even though our target customer is female, the men may also be our customers. We have a lot of holiday and festival every year thereby increasing more demand for gifts. If we have events or holiday promotions, it will attract men to buy our products as a gift to their loved one. In addition, people tend to travel for pleasure around key events in their life such as a birthday or anniversary and when traveling they want to carry home or give to their wife a reminder of that perfect trip they shared.

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DemographicSegmentation Coeur’s target market is focused on females between the ages of 26-48 with college or higher education degrees. According to the Taipei City Government data, there are over 2 million people who live in Taipei City. Our target potential is 21% of Taipei City’s population with an annual income of USD 18,180. In Xinyi District, our target is 10% of population in this area. In addition to these residents there are over 50 thousand Asian visitors who came to Taiwan in July of 2012. Of these, 51% were female visitors and 41% is within our target market. Also, there are 14% Taiwanese visitors who come to Taipei for work and play and stay at hotels.

Data from Taipei City Government

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Data from Tourism Bureau, M.O.T.C. Republic of China

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Psychographic&Hierarchy ofneedsmodelanalysis Psychographic Segmentationon

Everyone yearns for luxury and well-designed and high-end merchandise, particularly in fashion since these items are symbols of good taste and wealth. There is no doubt why everyone wants to have luxury items. Coeur meets customers’ psychological needs: • • • • • •

Customers are aesthetic people and try to find something to fit their taste. They are looking for a quality product with a rich texture. They want to be unique. They have the advantage of a superior education, so they want to purchase items that reflect their intellect and style. They are always in the spotlight but keep a low profile. They have an active social life.

Hierarchy of needs model analysis For Coeur’s customers, they are in social and esteem level. First, Coeur is a women high-end boutique and we offer high quality and chic fashion products to our target. It means they approval our brand and service in society. They want to have a good association with other people or friends. They try to get more respect and attention in social life. Also, our customers education and income is higher, their purpose is self-fulfillment. For example, a woman is our target and she is a company’s manager. She gains a lot of respect and appreciation by her talent. She also likes fashion and stylish goods. She study a lot of fashion information and try to become a fashion icon of her company. As a whole, our target belongs to the higher level of hierarchy of needs model. 63

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CustomerProfile Primary Target Customer -Emily Cheng Secondary Target Customer -Eunice Yen Tertiary Target Customer -Jack

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Emily Cheng Age: 28 Occupation: Restaurant operator & chef Location: Xinyi, Taipei Marital Status: Single

Emily Cheng is the September Café’s operator and chef. She lives in Xinyi, Taipei and holds a master’s degree in product design from Nuova Accademia di Belle Arti Milano. Her annual income at September Café is approximately 38,000 USD. She works 4 days a week. The workday of a chef is long and hard. When she is free, she enjoys shopping and social events. She always reads Bon Appétit. Sometimes, she browses Vogue and Harper’s Bazaar and she likes high-heel shoes and handbags more than other products, although she cannot really use them on a daily basis. Quality and service are her rationales for purchasing. Attention to detail in service influences her decision to purchase items. Also, quality represents her taste. Because of her vocation, she understands that the way she merchandises herself is important, just as it is important to merchandise the menu and the food that she supplies to her customers. Her favorite brand is Herve Leger and Charlotte Olympia because she feels that they are understated yet elegant, sophisticated but not showy. She believes that the personality of these brands aligns with her personality. As a student of product design, she also understands the value of good design. She purchases a product just like she prepares and serves foods in her café restaurant. “If a product is not perfect, it shouldn’t be presented to the customer,” she said. Coeur offers different curated international designers and high-quality brands for women. She is very excited and expects to shop with the Coeur boutique. 65

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Eunice Yen Age: 34 Occupation: Flight attendant Location: Xindian, New Taipei City Marital Status: Married

Eunice Yen is a flight attendant with Singapore Airlines. She lives in Xindian, which is near Taipei. She holds a college degree from Tzu Chi University in Taiwan where her major was communication studies. She has worked for Singapore Airlines for two years. Her annual income is 26,000 USD. She is also a blog writer, through which she documents her life as a flight attendant. Her blog allows her to write about her inspiration and passion for travel and to introduce unknown and upcoming spots and brands to her readers. She also reads fashion blogs and websites. Most of the time, she follows fashion information from Style.com. As she wears a uniform at work, after work, she wants to be stylish. Because her job involves flying around the world, she knows a lot of designer high-end brands from Europe or North America. Her favorite brand is Oscar de la Renta. Oscar de la Renta dresses are also of high quality, but they also are designed to highlight a woman’s perfect elegant style. She is really happy that Coeur will carry Oscar de la Renta because she will shop this brand in Taiwan.

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Jack Age: 42 Occupation: Columnists Location: Neihu, Taipei Marital Status: Married

Jack is a writer and columnists. He introduces recipes to people on his blog. He released his book, Jack’s Kitchen, in 2011. He is famous in Taiwan, so he can get some brand endorsement, such as CK, XBOX, and Ford. He holds a marketing management degree from the University of Southern California. He and his wife, Lisa, were recently married in 2011. They are both stylish people, so they like to follow fashion and trends. His monthly income is about 13,333 USD. He said he likes to buy gifts for his wife when he travels to other countries or festivals. He wants to get her high–quality gifts, so he always picks up high-end brands products for her. As a celebrity, he wants to keep a low profile. He does not like shopping in department stores. He likes choosing a boutique or store in his hotel. He usually shops at the Regent Hotel because he can keep a low profile and find a variety of brands. He and his wife hope more designer brands will come to Taiwan.

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Survey Results Analysis Coeur conducted 80 Taiwanese and Chinese female respond the survey through SurveyMonkey. 85% customers want to shop in our boutique. Other results of this survey listed as below:

Customer • 76.25% of respondents are between 25~30 years old, 16.25% of customers

are between 31~40 and only 7.5% customers are between 41~50. (This result supports Coeur’s target market but most of customers are younger female.)

• 66.25% of the respondents have master degree. (It shows our customers have achieved high-level education.) • 73.75% of the respondents have annual income under USD $34,000. 23.75% of customers have annual income between USD $34,001~100,000. And 2.5% people are more than USD $ 100,000. (According to the Taipei City Government data, our target potential is 21% of Taipei City’s population with an annual income of USD 20,911. The General annual income is USD 29,573. Compare with this result, our target can afford our price.)

• 50% of our respondents, they usually travel every six months. 32.5% customers travel every year and 16.25% people travel every month. (This result not only supports Coeur’s customers include tourists but also shows lots of purchase demand in hotel.)

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Purchasing Behavior • 53.75% of the respondents shopping in the hotel’s high-end boutique once

a year. 30% of customers shopping once every six month. 13.75% people shopping once a month.

• 31.75% of the respondents care what brands in the hotel’s high-end boutique. 23.81% customers care quality. 17.99% people care location. (Its all fit our offer to customers.) • 42.5% of the respondents often purchase apparel. 28.75% customers shop bags and 28.75% people choose shoes and accessories.

Service • •

66.25% of the respondents like to be notified our boutique’s information and & promotions by email. 48.75% of the respondents like we hold a big sale event to customers.

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Chapter 6

Competition 71


CompetitiveAnalysis A high-end boutique, that provides premium brands and chic garments for women, is a huge market opportunity in Taiwan. Specifically it partners with hotels, which not only stimulates sales to people from different countries, but also results in brand and store awareness. We have a few competitors, such as Taipei Howard Hotel’s boutiques and Taipei Regent Hotel’s galleria store, and we also have indirect competitors such as Taipei 101.

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Direct competitor • Howard’s boutique center - Shiatzy Chen Shiatzy Chen is a Taiwanese fashion house in Howard’s Boutique Center, whose founder and brand innovator is Wang Chen Tsai-Hsia. Shiatzy Chen opened its doors in 1978 in Taipei, their target market aged from 28~45. The products include women’s wear, shoes and bags. The store has also launched men’s wear and bags. The design includes contemporary Eastern styles with superb craftsmanship. The prices range from USD $223~USD $1178. Unique selling point: They mix Western-style cut that differs from traditional Chinese fashions, with eastern elements. The cut of the latter is usually flat and lines are not overtly emphasized. Strengths: 1. Paris fashion show. 2. Market position. 3. Has men’s wear. Weaknesses: 1. Traditional style. 2. Fewer young customers. 3. No online store. Store Information Howard Hotel +886 2 2542 5506 No. 49-1, Sec. 2, Zhongshan North Road, Section 1, Taipei 10685 www.shiatzychen.com 75

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Direct competitor • Regent galleria - Dearken Dearken is a high-end store from Design Group. It provides two international brands, Victoria by Victoria Beckham and Manolo Blahnik in 2010. Each brand style is considered premium and keeps a low profile. They focus on target customer who aged from 27~45. The design of Victoria by Victoria Beckham has charming details and includes light, bright and breezy pieces. Manolo Blahnik is a Spanish designer. He creates the most sought after shoes in the world. Manolo Blahnik shoes complete the perfect ensemble; placed on a pedestal, they become an object of art. In addition, his shoes are extremely comfortable and well made. The Price Range from: USD $560 ~USD $1395. Unique selling point: They offer new international designer brands and customized service to customers. Strengths: 1. Location. 2. Customization. 3. Celebrity endorsements. Weaknesses: 1. Low brand awareness. 2. Lack of advertising. 3. No website. Store Information Regent Hotel B2 B2, No. 41, Chung Shan North Road, Taipei, Taipei 104

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Indirect competitor • Taipei 101 Mall Taipei 101 is a landmark skyscraper located in Taipei. It rises to a height of 508 metres and was the world’s tallest building until the opening of the Burj Khalifa in Dubai. This tower opened in 2003 and it includes finance, headquarters of business and industrial, shopping mall and all kinds of entertainment. The shopping mall provides a selection of international trendy fashion brands. The aim of target market is tourist and high-end customers. Because its reputation and location, more and more brand opens their first Taiwan Flagship Store at the Taipei 101 Shopping Mall. Such as Louis Vuitton, Dior, Burberry and Gucci. Unique selling point: The building itself is a scenic spot. Strengths: 1. Brand. 2. One-stop shop. 3. Landmark. Weaknesses: 1. Crowded. 2. Traffic Jam. 3. Limited parking space. Store Information Taipei 101 Mall +886 2 8101 8960 No.7, Sec.5, Xin Yi Roadd. Taipei, Taiwan, 110 http://www.taipei-101.com.tw

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SWOTAnalysis

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Strength: Coeur located in Xinyi District. Xinyi is a one-of-a-kind tourism area in Taiwan. It is the center of fashion and a place where Taipei’s future is being created. The district has convenient transportation links to other parts of the city and region. The Coeur boutique sells the world’s best premium brands. It is different than other boutiques and department stores in Xinyi. In Taipei, there is only one place that sells Herve Leger – the Regent Hotel in Chung Shan. But we are the only one high-end boutique that sells Herve Leger, Oscar de la Renta, Judith Leiber, Charlotte Olympia and Alexander Wang. We have selected our brands because of their price points, their image and their limited availability in Taiwan. Weaknesses: Coeur is the new boutique in Taipei. We are just beginning. Other boutiques have more experience and a stable customer roster than us. We need to work hard to build our position in Taiwan. On the other hand, we focus on female clothing, shoes and accessories but we do not carry men’s wear. Opportunities: According to the Tourism Bureau, M.O.T.C. Rep. of China (Taiwan), there were 522,977 visitors who came to Taiwan in 2012. July alone 357,120 tourists visited Taiwan and 235,447 of these were from China. Last year, China replaced Japan to become the largest source of visitors to Taiwan. In 2011, sales generated through clothing, footwear and accessory retailers were the highest ever for the Taiwanese women’s wear market with total revenues of $2.4 billion, equivalent to 71.6% of the market’s overall value. In the future, we will offer an online store to other country’s customers, such as China so that they will not have to come to Taiwan but can purchase from their smart phone and our website. Threats: Because of our reliance on foundries and independent contractors located in Taiwan and The People’s Republic of China, and because we have offices in these locations, our business may be harmed by political instability in Taiwan, including the worsening of the strained relations between The People’s Republic of China and Taiwan. Also if relations between the United States and The People’s Republic of China are strained due to foreign relations events this will impact our business. If any of our suppliers experienced a substantial disruption in their operations, as a result of a natural disaster, political unrest, economic instability, acts of terrorism 81 or war, equipment failure or other cause, it could harm our business.


Chapter 7

Marketing Plan

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Objectives 1. 2. 3. 4.

Build an impressive store image and create brand awareness. Build good relationships with customers and build brand loyalty. Become a fashion landmark for women in Taiwan. Achieve the sales and profitability objectives and expand to other districts or cities.

SituationalAnalysis The upper tier women’s market has grown in Taiwan with the no visa requirement for Chinese mainland visitors that was introduced in 2011 creating opportunity for higher end hotels as well as higher end stores within those hotels. According to Taiwan’s tourism department, more than 304,000 tourists from the Mainland China visited Taiwan in the first two months of 2012. Furthermore, tourists from Mainland China have generated more than NT$200 billion (US$6.94 billion) in sales since this introduction. Also, the women’s wear segment was the apparel retail industry’s most productive in 2011, with total revenue of $3,289.3 million, equivalent to 47% of the industry’s overall value. In 2016, the Taiwan women’s wear market is forecast to have a value of $3,546.9 million.

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ProductStrategy Coeur provides high quality accessories and chic garments of luxury designer brands for females. Here are some variables that will affect our purchasing decisions: Brand name Coeur offers different international designers and high quality brands for women, such as Oscar de la Renta, Herve Leger, Judith Leiber, Charlotte Olympia, and Alexander Wang. Functionality To provide a solution for women who have not brought formal clothing with them when they travel to Taiwan we will provide product that fills this need. Styling Coeur provides high quality accessories and chic garments from premium brands to women who want to be fashionable, elegant and unique. Our mission statement is “Cure for the itch and create a legend.� We promise to do our best to ensure that our customers enjoy our excellent fashion services and integrate our products into their life. Quality Coeur promises 100% high quality products and 100% chic fabric garments to our customers. Packaging Basically we offer different size bags for different products, we also have gift boxes and packaging. 86

86


Repairs and Support Coeur will provide quick and efficient repair services and support for all of our products although if we cannot perform the service our self and the item needs to go back to the manufacturer it will cause a delay. We do not anticipate this happening as we routinely inspect our merchandise to ensure that it is “floor ready� when it comes into our store. Service Return Coeur will accept merchandise in its original condition for a refund of the purchase price when accompanied by the original receipt. Shipping and Delivery Orders placed with free same day deliveries are just for Golden Crown Hotel customers. We will deliver their order to their room and make sure that it is ready to be worn immediately. For other customers, we offer next day, two-day and ground delivery, the shipping fees depend on local or international woldwide and how many products that customers purchase. Tailoring service Our most important responsibility is to make sure our customer comfortable with their clothes, so we offer after-purchase alteration service for our apparel, such as shortening hemlines and jacket sleeves. The basic alteration is free and other extra charges according to request. 87

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PricingStrategy Coeur price position is similar with other high-end stores, we believe a product of quality is worth the investment.

Suggested retail price We hope that most guests could purchase from our boutique, so our accessories range from $345 to $5995, the garments range from $780 to $5790 and the shoes prices range from $495 to $1371. Discount price Coeur offers a 20% discount for VIP customers, holiday promotion and clearance. Also they can get hotel room discount and restaurant discount in Golden Crown Hotel. This strategy will help increase customer’s loyalty and it will attract potential customers.

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PromotionalStrategy Coeur will use some media to promote our product to drive sales both during our sale events and on a routine basis. The elements of our promotional mix strategy include advertising, print media, social media, sales promotion, public relation, special event and sponsorship. Advertising Advertising can be conducted at the global, national, regional or local levels; it can promote our products or brands globally. Coeur will do advertising on the Internet, magazines and a LED wall. This method will directly attract customers who like our boutique. Print media This part includes direct mail, post card and catalog. We will show our latest information to our customers by direct mail for every month. The post card provides news of new arrivals as well as event information only for members and VIP customers. The catalog is present in the store.

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Social Media Since Internet usage has become widespread, more and more companies use social media to increase sales. Burberry is a good example of this dynamic strategy; Burberry’s social media use was seen last September with the unveiling of its 2012 collection on Twitter and Instagram right before it hit the runway. The show was also live streamed on Burberry’s YouTube channel. Since then, Burberry’s following has grown to over 800,000 on Twitter and over 11.6 million on Facebook, while its YouTube channel has received over 12 million views. Since then, the company has seen its profits increase by 21% Coeur will use a Facebook fans page, weibo and YouTube channel. It will help us interact more spontaneously with our customer, thereby enhancing our store position and brand image. Each channel can show our new products, event information, and advertising and solve customers’ questions while gathering suggestions from our target market. Finally, we value our customers and they help us thrive and grow.

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Sales Promotions Coeur will host sale promotions after Christmas every year. We also will do clearances every Dec 30 to Jan 25. It can help us increase sales and clear out old inventory. Special Events Coeur will present fashion show every season. These will highlight new trends and designs for our customers. We will combine with artists to provide exhibitions or charity parties. We hope to give new ideas to our customers with different industries that are part of their lifestyle such as artists and musicians. We also provide VIP customers with a night out to create community and environment for our customers. Sponsorship Through movie sponsorship via magazines, celebrities and TV program we will become more well-known. If the movie or a start is very popular, it will not only promote our product but also attract more and more people to purchase from us. For example, 007 always wears Omega watches in the Bond movies making Omega more desirable to its consumer base because men like to be like 007.

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Smart phone APP An app is a new method to promote our products. Like the Internet it is a fast and efficient way to access information and obtain feedback directly. It is convenient and immediate. That is really important for customers. Coeur will present our APP in the future, it will include, product information, price, store policy, service, store location and news. Customer will shop by this APP, regardless of what phone or method they use iPhone, iPad or other smart phone.

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Chapter 8

Visual Design

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Logo Coeur high-end boutique takes its name from the French word for “heart.” We want our customers to sincerely like our products and services with their hearts; we believe that they are not settling because they have nothing to wear to an event, but making a purchase that they earnestly desire. In addition, Coeur’s pronunciation is similar to “cure.” We hope our services can cure any displeasure and fretfulness. As in the song “Cure for the Itch,” we expect everything in our Coeur high-end boutique to satisfy our different targets.

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Company Letter

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Businesscard

Shoppingbag

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StoreInspiration

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Decor Crystal Light Mirror

Display Island

Cashier Sofa

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Facade

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Boutique size is about 1775 square feet. The exterior of Coeur used carbon and fiberglass, it is both shockproof and damp-proof. Also, this material is insulative so the store can keep quiet and fire safety. The design idea from geometry, we believe this new look store combine with geometry and fashion will bring a new view to our customer.

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Floorplan Top

Side

Front

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Fitting room

Cashier Clothing stander

Shadw Box for accessories

Sofa

Mirror

Crystal light

Shoes display Display island

Table Window display Stockroom

Entry

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StoreInterior&Wall

4. Shoes display. 5. Accessories display shows by shadowbox.

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1. Entry of store. 2. The store interior idea from geometry. 3. Feature wall of clothing.

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Windowdisplay

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The window display concept is Fly Your Dream. The Coeur boutique offers Luxury designer brand to female and each products for them like dreams come true. Thw two mannequins are symbol of standing right now and forward to the future. 109

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Advertising

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Apple Daily Newspaper

VOGUE

China Airline Magazine MRT Station

Airport

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Facebook

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Website ABOUT POLICY CAREERS F&Q CONTACT US MY COEUR

Herve Leger Oscar de la Renta Judith Leiber Charlotte Olympia Alexander Wang

No. 108, Section 5, Xìnyì Rd, Xinyi District, Taipei City, Taiwan 110 (02)8722-1000

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Events

Coeur Opening Party

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Coeur x MOET x Golden Crown Hotel Limited Champange When the Coerur Opening Party, we hope all of our customer enjoy our this event. At the same time, we provide the Coeur limited champange to our customer if they purchase with US$80000 a day. 750 ML

Coeur x Be@rbrick Bearbrick (rendered Be@rbrick) is a collectible toy designed and produced by the Japanese company MediCom Toy Incorporated. It is really famous and cute. Fendi and CHANEL has launched this toy also. We provide the Coeur limited 100% bearbrick to customers if they purchase with US$8000 a day. Size: 1 x 1 x 2 inches

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Fashion Show Coeur will present our first fashion show on an airplane in July 2016. The concept of this event is “Flying to the Sky“, we hope our target enjoy their life, their dream and their flight. This event will release the latest pre-F/W collection products to customers. China Airlines and Golden Crown Hotel support this event, and our value customers have chance to get free ticket and hotel discount. It is the first fashion show on an airplane, we believe our customers will “Flying their Dream” with this event.

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Chapter 9 Operations Plan 118


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OperatingHours Monday - Sunday 10am - 9 pm

CompanyOwnership &Structure Coeur is an independent retail business owned and founded by Kuan-Yu, Huang. We start our business by 70% founder’s capital and 30% bank loan. Huang will perform the responsibility of store operator of the enterprise, and will be responsible for all decisions made of company at the same time. We will have three full-time employees in our team. One is a store manager and two sales assistants. Each weeks, months and years, we have business purpose. Store manager and employees will help to perform the goal of the Coeur’s business and make perfect service to our value customers. We will require and educate our employees to build relationships with customers and fully understand our products.

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Wages Our full-time employees will work 12 hours per day. We require one employee in the store every hour at least because they have a half hour lunch time and dinnertime for each day. Our employees’ wage: • Store Manager $2000/month • Sales Associate $1000/month*2 • Accounting/Books $250/month

EmployeeBenefits Coeur really care about our employees’ health and life because we hope all join us people is our family. We provide health insurance and 7 days to vacation for each employee. On the other hand, employees are allowed to purchase two items a 20% discount. Employee have been with company over one year will be 30% discount.

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CompanyOrganization

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Operator Kuan-Yu, Huang, the operator and founder of the Coeur, the key holder of the store, take care of every aspect of the store both on the operational and business levels. Responsibilities: • Responsible for the creation and management of the company culture. • Plan a budget or financial statement for the store. • Lead and motivate a team, ensuring that store standards within first class. • Have a conference with team and hotel governor and negotiate with vendor. • Figure out sourcing up-and-coming brands and by traveling to explore designs trends and get more profit. Store Manager The manager will be responsible for taking care of the operation and staff every day. Driving sales performance and ensuring customers service is the main duty. Full-time associates will be trained by and working with the store manager. Responsibilities • Manage the sales and merchandise, make sure the store is running smoothly. • Interview the hiring people and train them performance their duty. • Check the inventory on a frequent basis and make sure that orders in when they are supposed to be. • Lead and motivate a team, also achieve the business schedule and goal. • Deal with the cash inflow and outflow. • Have a conference with operator to report the sales schedule. • Make sure customers are satisfied with products and service.

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Sales Associates Sales associate is the first line with our target market. Their tasks is communicating with our customers and ensure them enjoy our products and service every day. And their responsibilities are in charge of the daily cashier, visual merchandising and sales of the boutique. Responsibilities • Provide and maintain positive customer relationships. • Develop a customer information database. • Demonstrate knowledge of store products and vendors. • Receive and process cash, check and charge/credit payments. • Make sure customers are satisfied with products and service. • Ensure customers order items delivery and return. Accounting Accounting is keeping a business operating and responsible for the validity of the financial statements they work on, performing duties in accordance with all applicable principles, standards and laws. Responsibilities • Prepare financial reports, including balance sheets, profit and loss statement, cash flow, tax return issue and relevant documents. • Prepare and review budget, revenue, expense, payroll entries, invoices, and other accounting documents. • Act as financial consultant for company.

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Payment Coeur accepts the following forms of payment for purchases: Cash Check (VIP only) Visa Mastercard JCB American express

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Chapter 10 Financial Plan

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Overview The total units of Coeur are 478. We have three times a year for travel expenses in April, September, and January. We need to keep running the latest S/S collection and F/W collection for our customers. Furthermore, we need go to trade shows and pick up the most popular products for our valued customers. The sales will focus on February and December, which is 14% and 12% because the Chinese New Year and Valentine’s Day in February and the Christmas Day in December. The customers have more desire for shopping on these months and we will offer them a big sale. Our huge expense is ads. The total of the ads expense is US$87,239. Coeur is a new boutique in Taipei, Taiwan. Our awareness is weak. For the first year, we put a lot of expense into ads. No matter whether the vehicle is the airport, MRT station, newspaper, magazine or website, we hope through these channels people will be able to find us. Coeur’s planned total sales for the first year is US$720,008 with a gross margin of US$349,989 that is equal to 48.6% of total sales. The first year profit is 3.5%. The second year sales projection is US$792,009. Third year sales projection is US$871,210. • • • • •

Coeur’s first year sale estimate is US$720,008 Total Units is 478 Average Item Retail Price is US$1,506.3 Average Unit per Customer = 1 Average Customer Transaction= US$1,506.3

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Traffic Coeur is located in Xinyi District and near Taipei City Hall MRT Station. According to Taipei MRT (Mass Rapid Transit) statistic, there are over 80,000 people movable within this area per day. We pretend there is 10% of these people go shopping nearby this area. Also, there are 1% of them visit Coeur. That means the visitor volume of Coeur is 80 people per day. Furthermore, we pretend 1.6% of them purchase in Coeur per day. It means we got 1.6 buying customers per day. 80,000 x 10%=8,000/day 8,000 x 1%=80 visitors/day 80 x 1.6%=1.3 buying customers/day

Transaction We expect customers at least buy 1 product.

Total units per day & Total annual units Coeur sells 1.3 items per day. The annual days open for the business is 365 days. The total annual units are 474.5. • •

Total units per day = 1.3 Total annual units =474.5

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Total sales per day & Total annual sales The price range of Coeur’s products is US$345 to US$5,995. • •

Total sales per day is US$1,958.19 (1,506.3 x 1.3 = 1,958.19) Total annual sales is US$714,739.35 (1,958.19 x 365 = 714,739.35)

Monthly sales

The best sales month will focus on February because the Chinese New Year and Valentine’s Day in February. People will spend their money for gifts. Besides, December is the big sales month also because of Christmas day and annual sales at this time. The purchase demand will increase with these months. We set up 5% for April because of the weather is not steady in this month. Gross margin • • •

Year1: 48.6% Year2: 48.9% Year3: 49.4%

According to the number showed above, Coeur gross margin is growing from year 1 to year 3. Because we know more about our target needs and demands it will make our sales increase and decline the markdown in the business. Profit and Loss Our sales target for the first year is US$720,008 (3.5%). The number comes from 48.6% gross margin and 44.5% expense.

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IMU As a luxury retailer, our products through a main company or a single manufacturing supplier. Even though we have long cooperation with them, we still can’t get more bargains. Overall, our initial markup at 50%, which is at a normal markup rate. Markdown • • •

Year1: 2.8% Year2: 2.3% Year3: 1.3%

In the beginning, we are not familiar with customers’ needs, so we carry a lot of products to fulfill the customers’ demands. After that, we can reduce markdown % in year 2 and 3. Main Expenses • Rent Coeur’s boutique size is about 1775 square feet. Furthermore, the Xinyi District is a really high-price area in Taipei; it affects the rent become expensive. The rent of Coeur is US$10,000 per month. It is the biggest expense of Coeur, which is 16.7% of all expense. • Marketing Total cost of marketing is US$87,319 in year 1, which is 12.1% of all expense. • Wages Labor cost is US$4,000 per month, which is 6.7% of all expense. • Build brand awareness cost The total cost of builds brand awareness and advertising is US$87,239.

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Inventory The inventory of Coeur is three months for spring (Feb.-Apr.), summer (May-Sep.), Fall & Winter (Oct.-Jan). Taiwan is subtropical climate, so we set up summer is longer than other season. April, September and January, we have new inventory coming to the store. Start Up Cost According to the estimate, we will need US$252,470 to open the store. Cash Flow Before opening the business we will have US$252,470 and after the entire star up expenses we will have US$180,684 remaining in cash.

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FinancialPlanningTable Start Up Cost Item

Technology and Phones

Cash Register, Fax/Copie Phones,Softwa

Selling Floor and Backstock Fixtures

Floor Fixtures/Shelves, Displa Cases

Leasehold Improvements (Material & Labor)

Flooring, Paint, Electrical, Ligh Rooms, Doors, Signage, Aw

Rent Deposit Wages and Salaries Marketing Startup Opening Inventory

3 Months Rent De 3 Months

Initial Marketing Ca

Cost BOM$ Inven

Other Start Up Expenses

Permits, Insurance, Utility De

Contingency Reserve

Extra Cash for Unforeseen Repairs

Working Capital

Total

134

Detail

Cash Needed in ďŹ rst months t positive


er, Printer, PC, are

$ Amount

Depreciate ?

# Months of Useful Life

Monthly Depreciation Expense

$

1,810.00

Yes

60

$

30.17

$

43,000.00

Yes

60

$

716.67

$

23,000.00

Yes

60

$

383.33

$

30,000.00

No

n/a

$

12,000.00

No

n/a

ampaign

$

8,683.00

No

n/a

ntory

$

90,001.00

No

n/a

eposits, Supplies

$

3,976.00

No

n/a

$

15,000.00

No

n/a

$

25,000.00

No

n/a

$

252,470.00

$

1,130.17

ay Tables, Jewelry

ht Fixtures, Fitting wning & Labor

eposit

n Expenses and

to keep bank funds

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Assortment Plan

Season SPRING SPRING SPRING SPRING SPRING SPRING SPRING SPRING SPRING SPRING SPRING SPRING SPRING SPRING SPRING SPRING SPRING SPRING SPRING SPRING SPRING SPRING SPRING SPRING SPRING SPRING SPRING SPRING SPRING SPRING SPRING SPRING SPRING SPRING SPRING SPRING SPRING SPRING SPRING SPRING SPRING SPRING SPRING SPRING SPRING SPRING SPRING SPRING SPRING SPRING SPRING SPRING SPRING SPRING SPRING

136

Class Vendor Dress Herve Leger Dress Herve Leger Dress Herve Leger Dress Herve Leger Dress Herve Leger Dress Herve Leger Dress Herve Leger Dress Herve Leger Dress Herve Leger Dress Herve Leger Gown Oscar de la Renta Gown Oscar de la Renta Dress Oscar de la Renta Dress Oscar de la Renta Dress Oscar de la Renta Dress Oscar de la Renta Dress Oscar de la Renta Blouse & SkirtOscar de la Renta Vest Oscar de la Renta Skirt Oscar de la Renta Blouse Oscar de la Renta Skirt Oscar de la Renta Handbag Judith Leiber Handbag Judith Leiber Handbag Judith Leiber Handbag Judith Leiber Handbag Judith Leiber Handbag Judith Leiber Handbag Judith Leiber Handbag Judith Leiber Handbag Judith Leiber Handbag Judith Leiber Shoes Charlotte Olympia Shoes Charlotte Olympia Shoes Charlotte Olympia Shoes Charlotte Olympia Shoes Charlotte Olympia Shoes Charlotte Olympia Shoes Charlotte Olympia Shoes Charlotte Olympia Shoes Charlotte Olympia Shoes Charlotte Olympia Handbag Charlotte Olympia Handbag Charlotte Olympia Handbag Charlotte Olympia Shoes Alexander Wang Shoes Alexander Wang Shoes Alexander Wang Bag Alexander Wang Bag Alexander Wang Bag Alexander Wang Bag Alexander Wang Bag Alexander Wang Bag Alexander Wang sunglasses Alexander Wang Totals

SKU 11405400 11405401 11405402 11405403 11405404 11405405 11405406 11405407 11405408 11405409 11405410 11405411 11405412 11405413 11405414 11405415 11405416 11405417 11405418 11405419 11405420 11405421 11405422 11405423 11405424 11405425 11405426 11405427 11405428 11405429 11405430 11405431 11405432 11405433 11405434 11405435 11405436 11405437 11405438 11405439 11405440 11405441 11405442 11405443 11405444 11405445 11405446 11405447 11405448 11405449 11405450 11405451 11405452 11405453 11405454

Item Zinnia Sleeveless Dress Pailey Combo Dress Zeina Sleeveless Dress Sarai Sleeveless Dress Marina Cocktail Dress Eliza Dress with Mesh Trim One Shoulder Dress Signature Essentials Scoop Neck Dres Sleeveless Maxi Dress Strapless A-Line Dress Sequined Scoop-Back Gown Faille Strapless Gown Crepe Peplum Dress Iris-Print Sheath Dress Check Tweed Sheath Dress Pocketed Wool Crepe Shift Dress, Violet Petal-Collar Dress & Floral Belt, Geranium Silk Cuff Links Blouse & Pleated Lace-Trim Skirt Silk Knit Peplum Vest Side-Zip Silk Knit Skirt Ruffle Chiffon Blousee Taffeta Lace Party Skirt Slide Lock Minaudiere Russian Doll Minaudiere Jolson Laser-Cut Pouchette Clutch Bag Ritz Fizz Clutch Zahara Flower-Flap Shoulder Bag New Rose American Beauty Clutch Bag Brooke Floral Clutch Bag Eidi Python Clutch Bag Leopard-Print Hexagonal Clutch Bag French Poodle Minaudiere Charlotte Olympia Fleur Ankle-Wrap Platform Sandal, Pink CHARLOTTE OLYMPIA 140mm Leopard Print Ponyskin Polly Pumps CHARLOTTE OLYMPIA Black Nappa Leather & Gold Dolly Pumps Charlotte Olympia Love Dolly silk-twill pumps Charlotte Olympia Jingle Bell Dolly Platform Pumps Charlotte Olympia Dolly Suede Glitter Sole Platform Pumps Charlotte Olympia Kitty embroidered velvet pumps CHARLOTTE OLYMPIA 'Dolly' platform pump Charlotte Olympia Josephine Pump CHARLOTTE OLYMPIA Black Suede Spiderweb Octavia Sandals Charlotte Olympia Pandora Colour Box Clutch CHARLOTTE OLYMPIA C' Est La Vie Crepe De Chine Clutch Charlotte Olympia - Kiss-Kid Clutch Bags Snake-effect leather wedges Aminata Liya Ankle Strap Pumps Prisma Tote Pelican Sling Bag Diego Bucket Bag Rocco Duffel Bag Marion Bag ADumbo Clutch Extreme angular-frame acetate sunglasses

Color Pink Radiant Sun Combo Bare

Blue Sapphiree

White Bare White Black/Red/Orange Black Light Crimson ULTRAMARINE EVERGREEN Black Iris Black & White Violet GERANIUM Black & White Black Black & White Black Black Red/Gold/Green/Pink/B GOLD/JET MULTI Black & Navy Dark blue/ Navy/Black/ Plum SILVER/ROSE MULTI CHAMPAGNE/GOLD White

LEOPARD SILVER/JET MULTI Pink LEOPARD/RED Black & Gold White & Red Red & Gold Black Navy LEOPARD Black & Red Black Blue/Red/Black MULTI Red Black and white snakeRed Truffle Red Almond Tang Black/White Black Acid Gold


Black

/RHINE

-effect leather

50% IMU %

XXS,XS,S,M,L XXS,XS,S,M,L XXS,XS,S,M,L XXS,XS,S,M,L XXS,XS,S,M,L XXS,XS,S,M,L XXS,XS,S XS,S,M,L XXS,XS,S XXS,XS,S,M,L XS,S,M,L XS,S,M,L XS,S,M,L XS,S,M,L XS,S,M,L XS,S,M,L XS,S,M,L XS,S,M,L XS,S,M,L XS,S,M,L XS,S,M,L XS,S,M,L One size One size One size One size One size One size One size One size One size One size 35, 35.5, 36.5, 35, 35.5, 36.5, 35, 36, 37, 38, 34, 35, 36, 37, 34, 35, 36, 37, 35, 35.5, 36.5, 35, 35.5, 36.5, 35, 35.5, 36.5, 37, 38, 39, 40 35, 36, 37, 38, One size One size One size 35, 36, 37, 38, 35, 36, 37, 38, 35, 36, 37, 38, None None None None None None None

Sizes

37.5, 38,38.5 37.5, 38 39, 40 38, 39 38, 39, 40 37.5 37.5, 38 37.5, 38,38.5 39, 40, 41

39, 40, 41 39 39

Target Whls Target Retail $490.00 $980.00 $625.00 $1,250.00 $575.00 $1,150.00 $525.00 $1,050.00 $525.00 $1,050.00 $1,475.00 $2,950.00 $1,035.00 $2,070.00 $390.00 $780.00 $675.00 $1,350.00 $795.00 $1,590.00 $1,995.00 $3,990.00 $2,895.00 $5,790.00 $1,175.00 $2,350.00 $875.00 $1,750.00 $745.00 $1,490.00 $745.00 $1,490.00 $1,095.00 $2,190.00 $970.00 $1,940.00 $1,145.00 $2,290.00 $995.00 $1,990.00 $395.00 $790.00 $995.00 $1,990.00 $997.50 $1,995.00 $2,497.50 $4,995.00 $1,247.50 $2,495.00 $1,347.50 $2,695.00 $1,747.50 $3,495.00 $2,997.50 $5,995.00 $1,497.50 $2,995.00 $1,497.50 $2,995.00 $1,997.50 $3,995.00 $2,597.50 $5,195.00 $547.50 $1,095.00 $480.00 $960.00 $472.50 $945.00 $445.00 $890.00 $442.00 $884.00 $685.50 $1,371.00 $347.50 $695.00 $547.50 $1,095.00 $447.50 $895.00 $562.50 $1,125.00 $448.00 $896.00 $797.50 $1,595.00 $111.50 $223.00 $357.50 $715.00 $312.50 $625.00 $247.50 $495.00 $412.50 $825.00 $462.50 $925.00 $425.00 $850.00 $447.50 $895.00 $325.00 $650.00 $225.00 $450.00 $172.50 $345.00 ######## $98,564.00

Projected SEASON unit Projected annual sales $$ sales 20 $19,600.00 10 $12,500.00 10 $11,500.00 10 $10,500.00 10 $10,500.00 6 $17,700.00 6 $12,420.00 10 $7,800.00 10 $13,500.00 10 $15,900.00 5 $19,950.00 5 $28,950.00 5 $11,750.00 10 $17,500.00 10 $14,900.00 10 $14,900.00 5 $10,950.00 10 $19,400.00 5 $11,450.00 10 $19,900.00 12 $9,480.00 10 $19,900.00 8 $15,960.00 5 $24,975.00 5 $12,475.00 6 $16,170.00 6 $20,970.00 6 $35,970.00 6 $17,970.00 6 $17,970.00 5 $19,975.00 4 $20,780.00 10 $10,950.00 10 $9,600.00 10 $9,450.00 12 $10,680.00 12 $10,608.00 10 $13,710.00 10 $6,950.00 12 $13,140.00 10 $8,950.00 14 $15,750.00 6 $5,376.00 6 $9,570.00 8 $1,784.00 12 $8,580.00 12 $7,500.00 15 $7,425.00 7 $5,775.00 7 $6,475.00 7 $5,950.00 6 $5,370.00 8 $5,200.00 8 $3,600.00 10 $3,450.00 478 $720,008.00

Spring/Summer Fall Winter Limited Opening Units

5 2.5 2.5 2.5 2.5 1.5 1.5 2.5 2.5 2.5 1.25 1.25 1.25 2.5 2.5 2.5 1.25 2.5 1.25 2.5 3 2.5 2 1.25 1.25 1.5 1.5 1.5 1.5 1.5 1.25 1 2.5 2.5 2.5 3 3 2.5 2.5 3 2.5 3.5 1.5 1.5 2 3 3 3.75 1.75 1.75 1.75 1.5 2 2 2.5 120

Opening Opening COG Retail $2,450 $4,900 $1,563 $3,125 $1,438 $2,875 $1,313 $2,625 $1,313 $2,625 $2,213 $4,425 $1,553 $3,105 $975 $1,950 $1,688 $3,375 $1,988 $3,975 $2,494 $4,988 $3,619 $7,238 $1,469 $2,938 $2,188 $4,375 $1,863 $3,725 $1,863 $3,725 $1,369 $2,738 $2,425 $4,850 $1,431 $2,863 $2,488 $4,975 $1,185 $2,370 $2,488 $4,975 $1,995 $3,990 $3,122 $6,244 $1,559 $3,119 $2,021 $4,043 $2,621 $5,243 $4,496 $8,993 $2,246 $4,493 $2,246 $4,493 $2,497 $4,994 $2,598 $5,195 $1,369 $2,738 $1,200 $2,400 $1,181 $2,363 $1,335 $2,670 $1,326 $2,652 $1,714 $3,428 $869 $1,738 $1,643 $3,285 $1,119 $2,238 $1,969 $3,938 $672 $1,344 $1,196 $2,393 $223 $446 $1,073 $2,145 $938 $1,875 $928 $1,856 $722 $1,444 $809 $1,619 $744 $1,488 $671 $1,343 $650 $1,300 $450 $900 $431 $863 $90,001 $180,002

$1,506.29 39.833333

137


Sales & Inventory Flow by month Jan-Yr0

Feb-Yr1

BOM Net Sales COGS GM$ GM%

$

MD$ MD% Purchases -Retail Purchases -Cost

$180,002 $90,001

Shrinkage EOM Avg Stk Stk:Sls Turn

Mar-Yr1

$180,002

$180,002

$100,801 52,921 $47,881 47.5%

Apr-Yr1

$129,601

$

$43,200 21,989 $21,211 49.1%

May-Yr1

$129,601

$

$36,000 18,270 $17,730 49.3%

Jun-Yr1

$165,602

$

$50,401 25,729 $24,671 49.0%

Jul-Yr

$194,402

$

$43,200 21,989 $21,211 49.1%

Aug-Yr1

$194,402

$

$72,000.8 37,080 $34,920 48.5%

Sep-Yr1

$165,602

$

$79,200.9 40,788 $38,412 48.5%

Oct-Yr1

$129,601

$

$43,200.5 21,989 $21,211 49.1%

Nov-Yr1

$172,802

$

$43,200.5 21,989 $21,211 49.1%

Dec-Yr1

$208,802

$

$43,200.5 21,989 $21,211 49.1%

Jan-Yr1

$276,483

$

$86,401.0 44,496 $41,904 48.5%

$

Q1-Yr1

Q2-Yr1

Q3-Yr1

Q4-Yr1

$237,603

$180,002

$165,602

$165,602

$208,802

Yr1 Total

$79,200.9 40,788 $38,412 48.5%

$180,002 $93,180 $86,822 48.2%

$165,602 $84,799 $80,803 48.8%

$165,602 $84,767 $80,835 48.8%

$208,802 $107,274 $101,528 48.6%

$720,008 $370,019 $349,989 48.6%

$5,040 5.0%

$778 1.8%

$540 1.5%

$1,058 2.1%

$778 1.8%

$2,160 3.0%

$2,376 3.0%

$778 1.8%

$778 1.8%

$778 1.8%

$2,592 3.0%

$2,376 3.0%

$6,358 3.5%

$3,996 2.4%

$3,931 2.4%

$5,746 2.8%

$20,031 2.8%

$56,449 $28,754

$44,410 $22,594

$72,901 $37,530

$80,763 $41,570

$44,410 $22,594

$46,081 $23,429

$46,369 $23,573

$87,611 $45,101

$80,410 $41,393

$112,091 $58,540

$50,977 $25,797

$42,768 $21,582

$353,762 $178,879

$171,254 $87,593

$214,390 $110,068

$205,836 $105,920

$945,241 $482,459

$1,008

$432

$360

$504

$432

$720

$792

$432

$432

$432

$864

$792

$1,800

$1,656

$1,656

$2,088

$7,200

$129,601

$129,601

$165,602

$194,402

$194,402

$165,602

$129,601

$172,802

$208,802

$276,483

$237,603

$198,002

$165,602

$165,602

$208,802

$198,002

$154,802 1.8

$129,601 3.0

$147,602 3.6

$180,002 3.3

$194,402 4.5

$180,002 2.7

$147,602 2.1

$151,202 3.0

$190,802 4.0

$242,643 4.8

$257,043 3.2

$217,802 3.0

$151,202

$180,002

$169,202

$230,223

$183,602

1.2

0.9

1.0

0.9

3.92

Jan-Yr2

Q1-Yr2

Q2-Yr2

Q3-Yr2

Q4-Yr2

BOM

$198,002

$114,841

$118,801

$142,562

$170,282

$190,082

$158,402

$118,801

$142,562

$186,122

$243,147

$235,227

$198,002

$142,562

$158,402

$186,122

Net Sales

$110,881

$47,521

$39,600

$55,441

$47,521

$79,201

$87,121

$47,521

COGS

$57,935

$24,069

$19,998

$28,164

$24,069

$40,590

$44,649

$24,069

$47,521 $24,069

$47,521 $24,069

$95,041 $48,709

$87,121 $44,649

$198,002 $102,003

$182,162 $92,823

$182,162 $92,788

$229,683 $117,427

GM$

$52,946

$23,451

$19,602

$27,277

$23,451

$38,610

$42,471

$23,451

GM%

47.8%

49.4%

49.5%

49.2%

49.4%

48.8%

48.8%

49.4%

49.4%

49.4%

48.8%

48.8%

48.5%

49.0%

49.1%

48.9%

MD$

$4,990

$618

$396

$887

$618

$1,980

$2,178

$618

$618

Feb-Yr2

MD%

Mar-Yr2

Apr-Yr2

May-Yr2

Jun-Yr2

Jul-Yr2

Aug-Yr2

Sep-Yr2

Oct-Yr2

$23,451

Nov-Yr2

$23,451

$618

Dec-Yr2

$46,333

$2,376

$42,471

$2,178

$95,999 $6,003

$89,339 $3,485

$89,374 $3,414

$112,255 $5,172

Yr2 Total

$792,009 $405,041

$386,968 48.9%

$18,074

4.5%

1.3%

1.0%

1.6%

1.3%

2.5%

2.5%

1.3%

1.3%

1.3%

2.5%

2.5%

3.0%

1.9%

1.9%

2.3%

2.3%

Purchases -Retail

$33,819

$52,574

$64,153

$84,602

$68,414

$50,293

$50,570

$72,374

$92,174

$90,447

$50,966

$150,545

$203,309

$816,023

$26,287

$32,076

$42,301

$34,207

$25,146

$25,285

$36,187

$107,559

$247,051

$16,909

$101,654

$215,118

Purchases -Cost

$46,087

$105,638

Shrinkage

$1,109

$475

$396

$554

$475

$792

$871

$475

$475

$475

$950

$871

$1,980

$1,822

$1,822

$2,297

$7,920

EOM

$114,841

$118,801

$142,562

$170,282

$190,082

$158,402

$118,801

$142,562

$186,122

$243,147

$235,227

$196,022

$142,562

$158,402

$186,122

$196,022

Avg Stk

$156,422

$116,821

$130,681

$156,422

$180,182

$174,242

$138,602

$130,681

$164,342

$214,634

$239,187

$215,624

$143,552

$165,332

$151,472

$215,129

$176,222

1.4

1.1

1.2

1.1

4.49

Stk:Sls

1.8

2.4

3.0

2.6

3.6

2.4

1.8

3.0

2.5

$52,819

3.9

$45,224

2.6

$25,483

2.7

Turn

Feb-Yr3

Mar-Yr3

Apr-Yr3

May-Yr3

Jun-Yr3

Jul-Yr3

Aug-Yr3

Sep-Yr3

Oct-Yr3

Nov-Yr3

Dec-Yr3

Jan-Yr3

$75,273

$123,526

$408,011

Q1-Yr3

Q2-Yr3

Q3-Yr3

Q4-Yr3

BOM

$196,022

$95,833

$104,545

$113,257

$139,394

$182,954

$148,106

$104,545

$104,545

$156,818

$200,378

$217,802

$196,022

$113,257

$148,106

$156,818

Yr3 Total

Net Sales

$121,969

$52,273

$43,560

$60,985

$52,273

$87,121

$95,833

$52,273

$52,273

$52,273

$104,545

$95,833

$217,802

$200,378

$200,378

$252,651

$871,210

COGS

$63,119

$26,215

$21,802

$30,675

$26,215

$44,214

$48,635

$26,215

$26,215

$26,215

$53,057

$48,635

$111,136

$101,104

$101,065

$127,907

$441,211 $429,999

GM$

$58,850

$26,058

$21,758

$30,309

$26,058

$42,907

$47,198

$26,058

$26,058

$26,058

$51,488

$47,198

$106,667

$99,274

$99,314

$124,744

GM%

48.3%

49.9%

50.0%

49.7%

49.9%

49.3%

49.3%

49.9%

49.9%

49.9%

49.3%

49.3%

49.0%

49.5%

49.6%

49.4%

49.4%

MD$

$4,269

$157

$44

$366

$157

$1,307

$1,437

$157

$157

$157

$1,568

$1,437

$4,469

$1,830

$1,751

$3,162

$11,212

MD%

3.5%

0.3%

0.1%

0.6%

0.3%

1.5%

1.5%

0.3%

0.3%

0.3%

1.5%

1.5%

2.1%

0.9%

0.9%

1.3%

1.3%

Purchases -Retail

$27,269

$61,664

$52,752

$88,097

$96,513

$54,451

$54,668

$52,952

$105,225

$96,513

$124,583

$54,668

$141,685

$239,060

$212,845

$275,764

$869,354

Purchases -Cost

$13,634

$30,832

$26,376

$44,048

$48,256

$27,225

$27,334

$26,476

$52,612

$48,256

$62,291

$27,334

$70,842

$119,530

$106,423

$137,882

$434,677

Shrinkage

$1,220

$523

$436

$610

$523

$871

$958

$523

$523

$523

$1,045

$958

$2,178

$2,004

$2,004

$2,527

$8,712

EOM

$95,833

$104,545

$113,257

$139,394

$182,954

$148,106

$104,545

$104,545

$156,818

$200,378

$217,802

$174,242

$113,257

$148,106

$156,818

$174,242

Avg Stk

$145,928

$100,189

$108,901

$126,325

$161,174

$165,530

$126,325

$104,545

$130,681

$178,598

$209,090

$196,022

$127,414

$145,928

$128,503

$187,310

$157,689

1.7

1.4

1.6

1.3

5.52

Stk:Sls Turn

138

1.6

1.8

2.4

1.9

2.7

2.1

1.5

2.0

2.0

3.0

1.9

2.3


Loan Payment Month 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41 42 43 44 45 46 47 48 49 50 51 52 53 54 55 56 57 58 59 60

Balance of Loan $75,741 $74,479 $73,216 $71,954 $70,692 $69,429 $68,167 $66,905 $65,642 $64,380 $63,118 $61,855 $60,593 $59,330 $58,068 $56,806 $55,543 $54,281 $53,019 $51,756 $50,494 $49,232 $47,969 $46,707 $45,445 $44,182 $42,920 $41,658 $40,395 $39,133 $37,871 $36,608 $35,346 $34,083 $32,821 $31,559 $30,296 $29,034 $27,772 $26,509 $25,247 $23,985 $22,722 $21,460 $20,198 $18,935 $17,673 $16,411 $15,148 $13,886 $12,624 $11,361 $10,099 $8,836 $7,574 $6,312 $5,049 $3,787 $2,525 $1,262

Principal $1,262 $1,262 $1,262 $1,262 $1,262 $1,262 $1,262 $1,262 $1,262 $1,262 $1,262 $1,262 $1,262 $1,262 $1,262 $1,262 $1,262 $1,262 $1,262 $1,262 $1,262 $1,262 $1,262 $1,262 $1,262 $1,262 $1,262 $1,262 $1,262 $1,262 $1,262 $1,262 $1,262 $1,262 $1,262 $1,262 $1,262 $1,262 $1,262 $1,262 $1,262 $1,262 $1,262 $1,262 $1,262 $1,262 $1,262 $1,262 $1,262 $1,262 $1,262 $1,262 $1,262 $1,262 $1,262 $1,262 $1,262 $1,262 $1,262 $1,262

Interest $227 $223 $220 $216 $212 $208 $205 $201 $197 $193 $189 $186 $182 $178 $174 $170 $167 $163 $159 $155 $151 $148 $144 $140 $136 $133 $129 $125 $121 $117 $114 $110 $106 $102 $98 $95 $91 $87 $83 $80 $76 $72 $68 $64 $61 $57 $53 $49 $45 $42 $38 $34 $30 $27 $23 $19 $15 $11 $8 $0

Total Payment Due $1,490 $1,486 $1,482 $1,478 $1,474 $1,471 $1,467 $1,463 $1,459 $1,455 $1,452 $1,448 $1,444 $1,440 $1,437 $1,433 $1,429 $1,425 $1,421 $1,418 $1,414 $1,410 $1,406 $1,402 $1,399 $1,395 $1,391 $1,387 $1,384 $1,380 $1,376 $1,372 $1,368 $1,365 $1,361 $1,357 $1,353 $1,349 $1,346 $1,342 $1,338 $1,334 $1,331 $1,327 $1,323 $1,319 $1,315 $1,312 $1,308 $1,304 $1,300 $1,296 $1,293 $1,289 $1,285 $1,281 $1,277 $1,274 $1,270 $1,262

139


Sales & Inventory Flow Year 1-3 Year 1 BOM

Year 2

Year 3

$180,002 $198,002 $196,022

Sales $720,008 $792,009 $871,210 Purchases $945,241 $816,023 $869,354

Q1-Yr1

Q2-Yr1

Q3-Yr1

EOM

$198,002 $196,022 $174,242

Avg Inv Turn

$183,602 $176,222 $157,689 3.92 4.49 5.52

Q4-Yr1

Yr1 Total

Q1-Yr2

Q2-Yr2

Q3-Yr2

Q4-Yr2

Yr2 Total

Q1-Yr3

Q2-Yr3

Q3-Yr3

Q4-Yr3

Yr3 Total

BOM Inventory

$180,002 $165,602 $165,602 $208,802

$198,002

$142,562

$158,402

$186,122

Total Net Sales COGS GM$ GM%

$180,002 $165,602 $165,602 $208,802 $720,008 $93,180 $84,799 $84,767 $107,274 $370,019 $86,822 $80,803 $80,835 $101,528 $349,989 48.2% 48.8% 48.8% 48.6% 48.6%

$198,002 $102,003 $95,999 48.5%

$182,162 $92,823 $89,339 49.0%

$182,162 $92,788 $89,374 49.1%

$229,683 $117,427 $112,255 48.9%

$792,009 $405,041 $386,968 48.9%

$217,802 $200,378 $200,378 $252,651 $871,210 $111,136 $101,104 $101,065 $127,907 $441,211 $106,667 $99,274 $99,314 $124,744 $429,999 49.0% 49.5% 49.6% 49.4% 49.4%

Purchases -Retail Purchases -Cost

$353,762 $171,254 $214,390 $205,836 $945,241 $178,879 $87,593 $110,068 $105,920 $482,459

$150,545 $75,273

$203,309 $101,654

$215,118 $107,559

$247,051 $123,526

$816,023 $408,011

$141,685 $239,060 $212,845 $275,764 $869,354 $70,842 $119,530 $106,423 $137,882 $434,677

$165,602 $165,602 $208,802 $198,002

$142,562

$158,402

$186,122

$196,022

$143,552

$165,332

$151,472

$215,129

$176,222

1.38

1.10

1.20

1.07

4.49

EOM Inventory

BOM/Avg Inventory $151,202 $180,002 $169,202 $230,223 $183,602 Turn

1.19

0.92

0.98

0.91

3.92

$196,022 $113,257 $148,106 $156,818

$113,257 $148,106 $156,818 $174,242 $127,414 $145,928 $128,503 $187,310 $157,689 1.71

1.37

1.56

1.35

5.52

Cash Flow Forecast Jan - Yr 0

Feb - Yr 1

Mar - Yr 1

Apr - Yr 1

$19,950

$3,568

-$7,119

-$24,545

-$25,200

$0

$18,000

Less: Shrink and MDs (cost)

$3,024

$605

Plus: Depreciation Expense

$1,130

Less: Principal Payments

Startup Loan/Personal $$

$252,470

Less: Start-up Capital Expenditures

$71,786

Equals: Available Start-up $$

$180,684

ProďŹ t or <Loss> (GM$-Expenses) Less: Monthly Incr. of Inv ( at Cost)

$90,001

May - Yr 1 Jun - Yr 1

Jul - Yr 1

Aug - Yr 1

Sep - Yr 1

Oct - Yr 1 Nov - Yr 1 Dec - Yr 1 Jan - Yr 1

Yr 1

$3,579

$15,372

$13,955

-$3,798

-$27,846

$3,598

$16,082

$12,518

$25,314

$14,400

$0

-$14,400

-$18,000

$21,600

$18,000

$33,840

-$19,440

-$19,800

$99,001

$450

$781

$605

$1,440

$1,584

$605

$605

$605

$1,728

$1,584

$13,615

$1,130

$1,130

$1,130

$1,130

$1,130

$1,130

$1,130

$1,130

$1,130

$1,130

$1,130

$13,562

$1,262

$1,262

$1,262

$1,262

$1,262

$1,262

$1,262

$1,262

$1,262

$1,262

$1,262

$1,262

$15,148

Equals: Monthly Working Cash

-$90,001

$41,994

$2,831

-$25,701

-$39,859

$2,842

$28,200

$30,239

-$26,136

-$46,583

-$30,979

$33,662

$30,602

-$88,889

Equals: Monthly Net Cash

$90,683

$41,994

$2,831

-$25,701

-$39,859

$2,842

$28,200

$30,239

-$26,136

-$46,583

-$30,979

$33,662

$30,602

$91,795

Cumulative Net Cash

$90,683

$132,677

$135,508

$109,807

$69,948

$72,791

$100,991

$131,229

$105,094

$58,511

$27,531

$61,193

$91,795

140


P&L Feb-Yr1 Mar-Yr1 Net Sales $100,801 $43,200 COGS $52,921 $21,989 Merchandise GM$ $47,881 $21,211

Apr-Yr1 $36,000 $18,270 $17,730

May-Yr1 $50,401 $25,729 $24,671

Jun-Yr1 Jul-Yr1 Aug-Yr1 Sep-Yr1 $43,200 $72,001 $79,201 $43,200 $21,989 $37,080 $40,788 $21,989 $21,211 $34,920 $38,412 $21,211

Oct-Yr1 Nov-Yr1 Dec-Yr1 Jan-Yr1 Yr1 Total $43,200 $43,200 $86,401 $79,201 $720,008 $21,989 $21,989 $44,496 $40,788 $370,019 $21,211 $21,211 $41,904 $38,412 $349,989

%/Sls 100.0% 51.4% 48.6%

Research & Development

$0

$0

$1,389

$0

$0

$0

$0

$1,389

$0

$0

$0

$1,389

$4,167

0.6%

Merch. GM w/ R&D

$47,881

$21,211

$16,341

$24,671

$21,211

$34,920

$38,412

$19,822

$21,211

$21,211

$41,904

$37,023

$345,822

48.0%

Wages Commissions Rent Marketing Expense Travel expense Health Insurance Insurance Accounting/Books Banking Interest Expense Depreciation Utilities & Security Telephone Supplies Misc. Repairs et al Credit Card Transaction Fee Shrinkage Total Expense

$4,000 $0 $10,000 $8,343 $0 $160 $300 $250 $30 $227 $1,130 $850 $30 $50 $40 $2,016 $504 $27,930

$4,000 $0 $10,000 $170 $0 $160 $300 $250 $30 $223 $1,130 $180 $30 $50 $40 $864 $216 $17,644

$4,000 $0 $10,000 $170 $6,000 $160 $300 $250 $30 $220 $1,130 $180 $30 $50 $40 $720 $180 $23,460

$4,000 $0 $10,000 $31,570 $0 $160 $300 $250 $30 $216 $1,130 $180 $30 $50 $40 $1,008 $252 $49,216

$4,000 $0 $10,000 $170 $0 $160 $300 $250 $30 $212 $1,130 $180 $30 $50 $40 $864 $216 $17,632

$4,000 $0 $10,000 $1,370 $0 $160 $300 $250 $30 $208 $1,130 $180 $30 $50 $40 $1,440 $360 $19,548

$4,000 $0 $10,000 $6,103 $0 $160 $300 $250 $30 $205 $1,130 $180 $30 $50 $40 $1,584 $396 $24,458

$4,000 $0 $10,000 $170 $6,000 $160 $300 $250 $30 $201 $1,130 $180 $30 $50 $40 $864 $216 $23,621

$4,000 $0 $10,000 $31,610 $0 $160 $300 $250 $30 $197 $1,130 $180 $30 $50 $40 $864 $216 $49,057

$4,000 $0 $10,000 $170 $0 $160 $300 $250 $30 $193 $1,130 $180 $30 $50 $40 $864 $216 $17,613

$4,000 $0 $10,000 $7,303 $0 $160 $300 $250 $30 $189 $1,130 $180 $30 $50 $40 $1,728 $432 $25,823

$4,000 $0 $10,000 $170 $6,000 $160 $300 $250 $30 $186 $1,130 $180 $30 $50 $40 $1,584 $396 $24,506

$48,000 $0 $120,000 $87,319 $18,000 $1,920 $3,600 $3,000 $360 $2,477 $13,562 $2,830 $360 $600 $480 $14,400 $3,600 $320,508

6.7% 0.0% 16.7% 12.1% 2.5% 0.3% 0.5% 0.4% 0.0% 0.3% 1.9% 0.4% 0.0% 0.1% 0.1% 2.0% 0.5% 44.5%

Profit/Loss

$19,950

$3,568

-$7,119

-$24,545

$3,579

$15,372

$13,955

-$3,798

-$27,846

$3,598

$16,082

$12,518

$25,314

3.5%

Credit Card Trans Fee rate

2%

Fixed Expenses Variable Expenses Total Expenses Operating Margin %

$16,760 $10,666 $27,426 42.7%

$16,090 $1,337 $17,428 17.8%

$16,090 $1,190 $17,280 2.5%

$16,090 $32,874 $48,964 -98.5%

$16,090 $1,326 $17,416 17.9%

$16,090 $3,098 $19,188 45.1%

$16,090 $7,972 $24,062 37.4%

$16,090 $1,315 $17,405 17.9%

$16,090 $32,751 $48,841 -130.3%

$16,090 $1,307 $17,397 18.0%

$16,090 $9,300 $25,391 39.4%

$16,090 $2,020 $18,110 52.9%

$193,752 $105,156 $298,908 58.5%

26.9% 14.6% 41.5%

BreakEven$ Volume BreakEven Sales per day BreakEven Sales per hour

$64,202 $2,140 $268

$97,696 $3,257 $407

$680,268 $22,676 $2,834

-$49,726 -$1,658 -$207

$97,340 $3,245 $406

$42,593 $1,420 $177

$64,406 $2,147 $268

$96,986 $3,233 $404

-$37,496 -$1,250 -$156

$96,752 $3,225 $403

$64,429 $2,148 $268

$34,263 $1,251,713 $1,142 $41,724 $143 $5,215

Marketing Calender detail Feb Website Event (Grand Opening) Magazine Print ADS (VOGUE) Apple Daily Newspaper ADS 17.58*17.9cm The Inflight Magazine of China Airlines ADS Online searches (Google) PR: Pace Wu Yahoo Ad Banner (PPC) Airport Billboard Taipei Metro Platform Ads Catalogs printing x300 Production Costs

$40 $1,700 $2,400 $133 $0 $170 $0 $0 $0 $2,000 $500 $1,400

Mar $0 $0 $0 $0 $0 $170 $0 $0 $0 $0 $0 $0

Apr $0 $0 $0 $0 $0 $170 $0 $0 $0 $0 $0 $0

May $0 $0 $0 $0 $11,667 $170 $0 $0 $18,033 $0 $500 $1,200

Jun $40 $0 $0 $0 $0 $170 $0 $0 $0 $0 $0 $0

Jul $0 $1,200 $0 $0 $0 $170 $0 $0 $0 $0 $0 $0

Aug $0 $0 $2,400 $133 $0 $170 $0 $0 $0 $2,000 $0 $1,400

Sep $0 $0 $0 $0 $0 $170 $0 $0 $0 $0 $0 $0

Oct $40 $0 $0 $0 $11,667 $170 $0 $0 $18,033 $0 $500 $1,200

Nov $0 $0 $0 $0 $0 $170 $0 $0 $0 $0 $0 $0

Dec $0 $1,200 $2,400 $133 $0 $170 $0 $0 $0 $2,000 $0 $1,400

Jan $0 $0 $0 $0 $0 $170 $0 $0 $0 $0 $0 $0

Total $120 $ 4,100 $ 7,200 $ 399 $ 23,334 $ 2,040 $ $ $ 36,066 $ 6,000 $ 1,500 $ 6,600 $ $ $ $ $ $ $ $ $ $ $ $ $ $ -

141

Place holder Total $ 8,343

$ 170

$ 170

$ 31,570

$ 170

$ 1,370

$ 6,103

$ 170

$ 31,610

$ 170

$ 7,303

$ 170

$ 87,239


142


Chapter 11 Appendix 143


Autobiography I was born in Taipei, Taiwan and graduated from Tajen University with a degree in Management of Information Systems. At Tajen University in Taiwan, while studying Management of Information Systems, I served as the major administrator for the Department Student Association. I scheduled the associationâ&#x20AC;&#x2122;s planning, promoted new events and association news, designed our department t-shirt and communicated with association members. It was just like operating a brand company. I have always had an ardent interest and curiosity in apparel, accessories, magazines, exceptional architecture and designer merchandise. I choose which apparel to buy based on its special packaging, price, quality, service and brand image. I am always interested in ascertaining the type of person, the situation, and the method of thinking that motivates a person to create such novel merchandise. I believe that merchandising is not just a business; it can change society, values, and even peopleâ&#x20AC;&#x2122;s relationships. Therefore, I have chosen the Academy of Art University to study Fashion Merchandising. In the future, I expect that I will first be a marketing project director. Next, I want to promote our family business in the hotel and restaurant industry. I am an only child, so I hope my family business will be successful forever. This is both my expectation and my ambition.

144

144


145

145


Resume Kuan-Yu, Huang 1510 Eddy Street Apt. 702, San Francisco, California, 94115 415-632-7619 jason66674@gmail.com Education • Fashion Merchandising, MFA, 2013 Academy of Art University, San Francisco, California •

Management of Information Systems, BA, 2009 Tajen University, Pingtung, Taiwan

Portfolio •

2012 Product Sourcing Class Add new brands to Unionmade men’s boutique and organize its financial planning

2012 Trend Analysis Class Created a new trendy product (Spy recycle sunglasses)

2011 Visual Merchandising Class Built a FENDI high end store and design store display

2011 Fashion Marketing Class • Rebuilt Forever21 brand image, promotion and strategy • Rebuilt Paul Smith advertising campaign and promotion • Created a promotion with Kris Van Assche and Mercedes Benz

146

2011 Dynamic of Fashion Class Created a new Levi’s store, including a window display, display island and interior 146


Experience

Internship, 2013 Emporior Armani Retail Store, San Francisco USA

• • •

Marketing Planer, 2011 Reikyokugen BBQ Restaurant, Taipei, Taiwan

• • •

Assistant Secretary, 2007 Student Association, Tajen University, Pingtung, Taiwan

• • • • • • •

Telemarketer, 2005 Rulin Tutor School, Taipei, Taiwan

• • • • •

Understanding store operation and logistics management Created store visual merchandising Assisted marketing department to promote store merchandising

Research for target market Schedules for planning and strategy Created promotion activity

Scheduled association’s meetings Recorded meeting minutes Created and published activities statement Promoted new events and association news Managed and updated files Communicated with association’s members Designed student association t-shirt

Recommended that students come to this program Promoted new events and new programs Developed our tutor school enrollment Communicated with students and parents Solved consumer problems 147

147


Languages

Chinese Mandarin, Taiwanese, English

Skills

Photoshop, Photo Impact, Excel, Word, PowerPoint, 3D Maxs, Illustrator

148

148


References -Taipei City Government, www.taipei.gov.tw -National Statistics, R.O.C (Taiwan), www.stat.gov.tw/mp.asp?mp=4 -Ministry of Economic Affairs, R.O.C, www.moea.gov.tw/Mns/populace/home/Home.aspx -Department of Budget, Accounting & Statistics Taipei City Government, www.dbas.taipei.gov.tw/ -Metro Taipei, www.trtc.com.tw/ -Tourism Bureau, M.O.T.C. Republic of China, admin.taiwan.net.tw/public/public.aspx?no=315 -Nicole Miller Official Site, www.nicolemiller.com -HERVE LEGER Official Site, www.herveleger.com -Judith Leiber Official Site, www.judithleiber.com -CHARLOTTE OLYMPIA Official Site, www.charlotteolympia.com -Alexander Wang Official Site, www.alexanderwang.com -Victoria by Victoria Beckham, www.victoriabeckham.com -Regent Hotel Taipei, www.regenttaipei.com/en/# -Shiatzy Chen, www.shiatzychen.com -Howard Hotel Taipei, www.howard-hotels.com.tw/ -SHOPSTYLE, www.shopstyle.com -Michelle Gibley (2012), Cheap China Transitions to Luxury, http://www.schwab.com/public/schwab/resource_center/expert_insight/investing_ strategies/international/cheap_china_transitions_luxury.html -MarketLine, Apparel Retail in Taiwan, http://www.marketresearch.com/MarketLine-v3883/Apparel-Retail-Taiwan-7457568/ -Grail Research (2009), The Global Fashion Industry â&#x20AC;&#x201C; Grow in Emerging Markets -MarketPublishers (2011), Taiwan: Clothing Industry Guide -MarketPublishers (2012), Apparel Retail in Taiwan -MarketLine (2012), Womenswear in Taiwan -Department of Investment Services, Ministry of Economic Affairs (2008), Taiwan Textile Industry Analysis & Investment Opportunities 149 149


150

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