Fashion Designing Business Plan

 

EXECUTIVE SUMMARY

ABC   is a manufacturer and retailer of an upscale clothing line targeted at male and females between the ages of 26 and 55.  ABC   not only develops the clothing line, but will support it with advertising and promotion campaigns. ABC    plans to strengthen partnerships with retailers by hiring an independent consultant merchandise placement specialist, thereby developing brand awareness.  ABC   intends to market its line as an alternative to existing upscale clothing lines and differentiate itself by marketing strategies, exclusiveness, and high brand awareness.

ABC is a Company that creates chic lines of clothing for women that love what they choose to wear and care how they present their image in public.  It's a line made exclusively for the fashion forward and bold - the young men and woman who are not afraid to stand out and break outside of the norm.

The key message associated with the ABC line is classy, upscale, versatile, and high-quality clothing.  The Company's promotional plan is diverse and includes a range of marketing communications.  In the future, the company hopes to develop lines of clothing for men, women and children.

The project cost is put at M11.389m with the existing amount expended on the project put at N3.475m (31% of the total project cost) The applicant proposed to further spend another N2.25m (20% while the loan of N6.0 m (51%) would be required from a financial institution to ensured that the project is enhanced for growth.

From the profit and loss analysis, a loss of N1.63m was recorded in the first year, but subsequently the profit from year 2 to year 5 is progressively increased from N1.602m to N12.144m. From the economic analysis of the project, a net present value at a discounted rate of 5% is N6.361 with benefit cost ratio put at 1.04 and internal rate of return greater than 50%

The sensitivity analysis at 10% increase in the cost of material input and 10% decrease shows a positive net cash balance showing that the project is feasible

SUMMARY OF PROJECT COST

SUMMARY OF TOTAL PROJECT COST AND FINANCING PLAN
S/NO	ITEMS	BANK	APPLIC. CONTRI. (N)			TOTAL
		CONTR. (N)	EXISTING	PROPOSED	TOTAL	COST (N)
1	INVESTMENT ITEMS
1.1	Machinery & Equipment	1,354,000	3,475,000	-	3,475,000	4,829,000
	SUB-TOTAL 1	1,354,000	3,475,000	-	3,475,000	4,829,000
	Contingency 10%	135,400	-	-	-	135,400
	TOTAL      1	1,489,400	3,475,000	-	3,475,000	4,964,400
	OPERATING EXPENSES
2	Management & Labour		-	340,000		-
2.1	Direct Material & Sales Cost	7,437,000	-		-	7,437,000
2.2	Utilities	-	-	1,264,000	1,264,000	1,264,000
2.3	Repairs and Maintenance	-		600,000	600,000	600,000
2.4	Project Insurance	250,000	-		-	250,000
2.5	Collateral Fee 5% of L.V			500,000
2.6	Appraisal Fees (2% of L.V.)			200,000
	TOTAL 2	7,687,000	-	2,904,000	1,864,000	9,551,000
	Contingency 10%	823,600
	GRAND TOTAL	10,000,000	3,475,000	2,904,000	5,339,000	14,515,400
	%Contribution	69	24	20	37	100

 

1.1        Objectives

ABC’s objectives are to make a profit from direct sales to corporate organizations, retail stores distributors (B2B) and individual customers (B2C). This objective is to be reached by attaining the numbers below:

ABC intends to be the major producer of comfort and functional clothing from Africa. With our base of professional, dedicated and creative staffs we intend to package, brand and sell our products to Africans and foreigners. Therefore we offer a host of products and services specifically tailored to stir up an appreciation within the target market. We are confident that within 2 year we would have a minimum of 15 distributors with a minimum order of 1million naira monthly, be on all the known online stores and an end-of-year revenue of Nineteen million naira with 100% increase by the second year, and a 15% by the third year.  

Some core focus areas for the company includes expansion, quality production of the products and delivery of services, capturing the expected target market, sustaining its place in the industry and being a very profitable establishment

1.1.1  Business Concept:

Name- ABC  -

Location-  

 Facebook: ABC imageNG: This one of our sales platform

Instagram: ABCimageNG- This is another of our sales platform Konga: This is also one of our Sales platform

1.1.2   Mission

Our mission is to be a major source and supplier of quality clothing in the African market and beyond

To produce clothes that both enhances the confidence of the wearer, and are durable, suiting various climate.

 This is to be the foremost producer of Pro-African attire and formal wears by 2021.

1.1.3 Vision:

 Is to be a world class garment company located in Nigeria.

Present Status

ABC started in 2014 with the production of shirts only; we have however grown into a full blown male garment company. We currently have a very strong online presence which account to 70% of our sales, and we have been able to export our products to 20 countries.

Our facebook page has reached it maximum limit of 5,000 friends and over 30,000 followers and over 1500 followers on instagram. We have 2 distributors in the US, 1 in Antigua and we are currently finishing talks with 2 in Ghana and 1 in the UK. Our products provide our customers the quality, style, comfort and durability they desire.

Our major focus and strength for now is on adult males.

In the shortest possible time we also hope to diversify into Recycling of fashion waste, fabric sales, children’s wears boxers shot and other male accessories. This is because it’s part of the product life circle.

 

1.2   The Opportunity

The Nigeria fashion industry is fast growing and becoming a trend in the international arena causing an increase in the demand for Nigeria attire. We are taking advantage of this by bringing in distributors to handle the demand in the different countries and regions.

The uniqueness of our products both in style, innovation and comfort (functionality) has created a nitch for us causing us to stand out amidst competition.

Our aggressive marketing strategy has put us in the fore.

Because of the functionality of our products, which protects the clothes from embarrassing sweat patch the demand will go beyond Nigeria, to other parts of the tropical region as a solution to the unavoidable effect of sweating on the clothes

Other opportunities include:

1. Sales of fabrics: We want to be able to stock fabrics for sell and use, this will increase our sales, reduce our cost production, and warehousing
2. Production and sales of children’s wears(males)
3. Production and sales of other male clothing like boxers, pajamas, pocket square, neck ties etc.
4. Wholesale: we have had many offers from customer who wanted to buy wholesale but could not fulfill their orders because we lacked the capacity.
5. Trainings.  
6. Fashion wastes Recycling 

1.3     The Business Model

Our business model is to create products that stand out in Quality, Design, and Functionality. Being able to get all 3 components in one product for us is key. It means the customer doesn’t have to buy 3 different products or even do without 1 .in buying just 1 product you are getting the 3 thus saving cost.

We have a wide range of male product line such that irrespective of your need there is a line of product that suits you.

We also have customize outfits, so irrespective of the customer size, which could be irregular (longer arms, pot belly, bigger thighs) he gets what he wants.

Our business is largely online, and as such we run lots of adverts, locate ourselves on various online platforms.

We want to be known as a local brand, as such we are looking to get more distributors of our products in the different countries where we have shipped before and more.

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