A Clothing Retail Store In Andhra Pradesh

Introduction

It is situated in southern coast of India and its capital is Hyderabad. Telugu is the official language and kuchipudi is the state dance of Andhra Pradesh

Name of the store:- SHINNING STAR STORE

Description of clothing retail store

Cloth retailing is one of the top retailers in India because fashion has become very much popular among youngsters and even middle age. In India western culture is followed nowadays and our country is following their style like anything. Becoming the owner of clothing retail store is not that easy it requires lot of planning and hard work. In this venture we should know the ins and outs of the fashion retail business. The hours of operation will be Monday to Saturday 10 a.m to 8 p.m . The competitors are shopper’s stop , Westside , palem leathers , pantaloons , Bombay store , Max , etc.

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Environmental scanning of Andhra Pradesh

I am opening a clothing retail store in Andhra Pradesh and the city that i have selected is Hyderabad .Andhra Pradesh. The retail industry in Hyderabad is on the rise. The reason for choosing this city is that its 6th metropolis in India , development ,advancement of the infrastructure , due to its size and population. The clothing retail store will be free from any political and social barrier as I am opening according to government policies and society.

Retail store identity-

The brand name is KELVIN and logo

Types of retailers

My store is a speciality store majority of western and rest is Indian wears . Its for family shopping

Company ownership

My store is organised as a sole proprietorship me and my manager handle all his administrative and managerial duties of the clothing retail store

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Vision of the retail store-

To sell products according to customers and satisfy their needs to build long term relationship and to stay in the market for long run. To be best clothing retailer among other retail store.

Mission of the retail store-

To satisfy customers in terms of services and provide them best quality clothes according to their tastes and preferences at cheaper rate than competitors and assortments of all sizes and styles. We believe in providing excellent and superior services and making shopping a relaxed and pleasurable experience.

Objectives

The primary objective is to provide one-stop-shopping for all the members of a family

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To create shopping environment

To make shopping convenient.

To attain a position in urban areas of Hyderabad

To build long term relationship with customers

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To gain profit

To ensure that our customers get the best value, quality and satisfaction from using the services given by my store

Goals·

To become a profitable business

Gain profits

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to provide them fresh stock

Selling clothes according to new fashion

Goodwill in the market

Establishing for a long run

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To create customer and seller relationship

To maximise customers

Business plan-

Without business plan we can’t move forward in opening a retail store. too It involves both time and money budget. We need to frame out our business policies like working hours ,rules and regulations, inventory and need to work out on our advertising and marketing plan as well as employee details ,expansion plans, use of profit, investment and partnership policies.

2. Selling products of the retail store-

Our products will range from basics to stylish wear.Women’s clothes ,children’s wear ,men’s wear ,casual and sports wear .

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Services-

Free delivery

E-retailing

Credit card payment

Online transaction

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Guide

Parking facilities

Help desk

Proper assortment

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3.Marketing plan

All goods will be purchased according to the customer tastes and preferences and all sizes of men , women and children.

Pricing strategy

We base the product lines that we carry on their reputation and quality as western and Indian wear apparel. Most of our lines come with a suggested retail price that we will follow. We will provide discounts and special offers seasonally and occasionally. The most important thing is that we will provide them products at cheaper rate than competitors.

Promotion strategy

It is done by

advertising

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providing free samples

posters and banners

online advertising

pamphlets

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brand ambassador

radio , etc.

Positioning-

We will offer name brand western and Indian wear in a larger assortment of styles and sizes that aren’t always readily available in the mass. To give customers excellent experience through our stores and provide them whole product line and services.

Barriers

Competition

Input cost

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Inflation

Less productive labour

Increase in taxes

Economies of scale

SWOT Analysis

Strength-

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Demographic factors

Shopping Convenience

Availability of resources

Organized Retail

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Weaknesses-

New retail store

Taxation hurdle

Developing supply chain

Oppurtunities –

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Sure! Need ideas? We’ll pitch topics based on your subject and interests—catchy and doable. Pick one, and we’ll run with it, or tweak it together.

Location

Market Growth

E-Retailing

Lifestyle and convenient retailing

Threats-

Competition from shoppers stop,pantaloons,

Inflation

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Market analysis of the retail store

There are four factors which are taken into consideration when market analysis is done for the clothing retail store:-

target market- I am opening the store in Hyderabad city in suburban and urban areas. As the popularity increases we expect to see an assortment of curiosity seekers, and local residents as well as the seasonal purchases. And for those who find difficulty while purchasing western and Indian clothes at one place.

customers- they will be of high and middle income group

competitors – shoppers stop , Westside , Bombay store , pantaloons , palem leathers , etc.

Fashion- seasonal or the occasional and the latest trends prevails in that city.

Market share-

Our intension will be to gain 80% market share by focusing on positioning , location , other brands ,promotions, etc.

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Organisational structure-

Owner

Store manager

Cashier

Salesmen

4.Operational plan-

Location

I am opening this retail store in Hyderabad

There are major factors on which location depends –

your ability to pay for it ,land cost

the visibility of that location to the target segment you plan to focus on.

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No. of other clothing retail store in that area

Lifestyle of that particular area

Demographic factors like age ,sex ,etc.

Competition in that area

The place is 1000 square feet and has been taken on lease for two years.

Key supplier-

Supply chain management is very necessary because of inventory management so that we will earn maximum if there will be no shortage of stock anytime. The clothes will be imported from Delhi and Mumbai.

Store layout-

We follow the pattern of free form layout as it provides relaxing environment and facilitates shopping and browsing. Products are placed in a systematic manner. The store will be double storeyed on ground floor kids section, 1st floor for women’s section and 2nd floor for men’s section. We’ll provide convenient shopping to our customers

Credit policy-

Being a retail environment we will not be selling on credit we’ll accept cash , checks , and all major credit cards because through there is reduction in bad debts.

Merchandise Management System:

The order received from a vendor are kept in warehouse and inventory is raised when there is shortage of stock . Therefore there is need to keep a record of total orders received and sale. There is a need to manage the merchandise so as to keep minimum level of stock which should be there all the time in store. To run retail store well we have to look upon our inventory time to time. We should give both the quality and compatibility to customers.

Store management-

Its very important for the retail store to manage their store. Employees will be encouraged to work in their creative , physical and intellectual boundaries. Duties will be delegated according to strengths and weakness . All decisions are made in-line with the company objectives and employees tasks are delegated based upon their level of expertise , creativity ,etc. Medical benefits are also given to employees . All Entire workforce of the clothing retail store.

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Owner

1 store manager

3 cashiers

6 salesperson

Security guard

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Delivery vans, bikes and boys

Merchandise will be purchased according to company’s mission and customer focus of outfitting all sizes including women’s plus sizes , men’s big and tall and for kids of 1 day to 16 yrs.

I would use the round track for displaying the clothes in the retail store.

Human resource management-

In clothing retail store we need both skilled and unskilled labour and follow the policy of customer relationship management.

I would follow these steps in my clothing retail store:-

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Retail market & financial

Retail site location

Customer relationship management (CRM)

Information & Distribution system.

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5. Financial plan

Requirement

There is a need of 5 crores to open clothing retail store . We have planned to open a retail store that is in Hyderabad. Supplement financing is also required to work on site preparation , inventory , and operational expenses. The loan amount appears in the long term

Use of fund

Funds will be used to pay renovation , construction ,sales counter ,painting, carpeting , lighting, décor & display fixtures .We will also purchase inventory , cash register and computer equipments and also an inventory management system and rest will be the operating cost. In future we’ll reinvest residual profits into company expansion and personnel.

Projected cash flow

Our business will collect immediate payments from the customer. So it will much likely to the income statement. Our cash flow statement clearly demonstrates our ability to cover all the bills.

Projected balance sheet

Clothing retail store will launch in Hyderabad with an equity of 2 crores and 1crore in loans. Credit amount and suppliers term for inventory will appear in the balance sheet as a short term liabilities. All the other details will also be shown in the balance sheet.

Customers on Average/day

Expected Growth on sale

Sale/Day

Sale /Month

Sale Yearly

140*100 on Average

14000

420000

5040000

Second Year

25%

17500

525000

6300000

Third year

25%

21875

656250

7875000

Expected Break Even Point/store

Break even analysis has been completed on the basis of average costs/prices.The following chart shows what we need to sell per month to break even, according to these assumptions:

Expected Break Even Point/store

Break Even Analysis

PV Ratio=

Contribution

*100

Particulars

Amount

Sales

Sales

5040000

Variable cost

3252000

35%

Contribution

1788000

BEP Points=

Fixed Cost/PV Ratio

Fixed Cost

1357500

3826510

Net Profit

430500

Future expectations

If we will achieve and exceed our sales and profitability goals we will increase the product line and expand our line of brands with those that have been repeatedly requested by our customers.

Keys to success of the retail store

Targeting customer

Assortments of all sizes to fit the customers

Advertising and promotion in targeted areas

Latest trends in the market

Valuable customer service

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