Business plan for a children’s clothing store
1. SUMMARY OF THE PROJECT
The purpose of this business plan is to justify the effectiveness of the project to open a retail store of children’s and teenage clothes in a city with a population of less than 200 thousand people. The target audience of the store will be the population of the city from the age of 3 to 18 years. The store will feature a wide range of children’s clothing and accessories. The outlet will be opened in a rented premises with a total area of 100 square meters. meters, on the ground floor of a multi-storey building located on one of the main streets of the city. The store will operate in the “below average” price segment, which is due to the prevailing market conditions: a decrease in purchasing power and a drop in household incomes.
Starting investments in the opening of a children’s clothing store will amount to 1.9 million rubles. Source of financing – own funds. Payback period – 27 months. Expected revenue in the first year of operation is 500 thousand rubles, net profit is 58 thousand rubles, return on sales is 11%.
The legal form of doing business will be IP. The taxation form is simplified (“income minus expenses”). The preparatory period for the opening of the project will be 2 months. It is planned to reach the planned sales volumes by 3 months. work.
2. DESCRIPTION OF THE INDUSTRY AND COMPANY
Children’s and teenage clothing is one of three segments of the clothing market (FashionRetail), which also includes women’s clothing (which accounts for 51% of the market) and men’s clothing (31%). According to 2015 data, the share of children’s clothing in clothing retail is about 18% (see Fig. 1). Despite the fact that the clothing market in Russia is not going through the best of times, showing a decrease in volumes (see Fig. 2), children’s clothing remains its only growing segment. According to Synovate Comcon, the market growth compared to 2013 by 2015, although it slowed down from 16.5% to 1.6%, but it still exists.
In many ways, the market for children’s clothing, as well as the market for children’s products, helped to keep afloat the increase in prices. In addition, the most common opinion about the causes of crisis resistance in this area among experts is that it is not accepted to save on children. That is, for many parents it is easier to refuse to buy clothes for themselves than to purchase clothes for a child. However, the fact is that in times of crisis, the consumer has become more discriminating, approaching the choice of children’s clothing more rationally. The second trend is the transition of consumers to cheaper price segments due to reduced purchasing power.
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The concept of the project described below is to create a children’s store operating in the “below average” segment, which is most in line with market conditions. A children’s clothing retail store will be opened in a city with a population of less than 200 thousand people. The store will present a wide range of children’s and teenage clothes for children aged 0 to 14 years. The outlet will be located in a rented area of 100 square meters. meters, on the ground floor of a multi-storey building, on one of the central streets of the city.
In our store, parents with children will be able to find good-quality outerwear and underwear at affordable prices and a minimal margin, which will allow them not only to dress the child for school or winter, but also to save the family budget. Children’s clothing cannot and should not be expensive – such a statement will underlie the concept of the store. For more information on product margins, see Table. 3 business plans.
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The legal form of activity will be individual entrepreneurship on a simplified taxation system. The staffing will be 4 people, including 2 administrators and 2 sales consultants.
The total investment cost for opening a children’s clothing store will amount to 1.9 million rubles (for more details, see Table 1). The project will attract its own funds. To open a store you will need a preparatory phase for a period of 2 months.