Introduction
This plan outlines the financial and promotional plans of Bra~vo Intimates, to be located in downtown Royal Oak, Michigan. This exciting endeavor will bring a needed women's intimate apparel store to the metro area, expanding the second year to include mastectomy products. There is no major mastectomy store in the metro area to service this special customer. We envision Bra~vo Intimates will be able to achieve the greatest portion of market share in the region through active support of women's and community organizations, connecting events to in-store promotions. Our ultimate goal is to be the premier intimate apparel and swimwear store in Michigan, fitting every customer in a fashionable bra or swimsuit, giving her incredible support and shape, therefore enhancing her entire silhouette!
A portion of all profits will be placed in an account to fund purchase our own building, tentatively scheduled for year four.
The Company
Bra~vo has a very strong, experienced and professional management team, with over 35 years of combined experience. With each member working in their area of specialization we have every aspect of the business covered.
Rebecca Autumn will be: Owner/Operator with 55% ownership and will be responsible for buying, customer sales and fittings.
Lucille Winters will be: Co-owner with 26% ownership and will act as merchandising consultant, employee training and part-time sales.
Deborah Summers will be: Co-owner with 19% ownership and will act as Operation Manager responsible for payable and receivables, inventory control, in store promotions, billing and sales.
The store will be located in the downtown shopping district of Royal Oak, Michigan. Situated on South Washington street, the main upscale avenue in town. The space is 2,000 (10 x 200) square feet.
The Products
Our shop will sell only those brands that we have found that meet our fit and quality requirements. We will be introducing new brands to our customers.
Bra~vo will carry quality European and American products, such as Rigby & Peller, Prima Donna, Wacoal, OnGossomer, Lise Charmel, and Feline and Ratratti, purchased through reputable U.S. distributors in a variety of sizes, colors and styles. Our expertise and concentration is in bra fitting full-busted and full-figured women. The initial percentage of our merchandise will be in bras/intimate apparel followed by swimwear, nightwear/At Home-wear and hosiery.
As Bra~vo achieves its sales and profitability goals, upon our first year anniversary, we will expand in the following categories; bra/intimate apparel, swimwear and accessories, nightwear and at home-wear, and hosiery.
The Market
From 1997 to 1999 the total women's intimate apparel, or innerwear, market grew by 10%, to £11.8 billion. All product categories saw robust growth during this period, with the highest growth occurring in Bras (17%) and Bottoms (12%). Consumer awareness of proper bra fitting has been on the increase for the last eight years. Many independent stores across the country have been experiencing double digit sales increases for the last five years. This has been due to two factors,the clothing industry has featured more skin exposing fashions that require speciality foundation garments, and fashion column writers have been stressing the importance of bra fitting along with mentioning the speciality stores in the area and their services.
Non-Chain Speciality stores such as Bra~vo Intimates captured £304 million of the total £10,702 million market in 1997 and in 1999, £341 million of £11,797 million of the intimate apparel market. Direct mail merchants gained the largest portion of market share in the past two years, at £914 million in 1999. Most of the increase was due to Internet sales.
We have estimated the number of prospective customers in the Royal Oak area as 94,201, and, knowing the missed opportunities of our competitors, this strongly indicates that there is a large void in the market. Therefore we see an underserved market niche opportunity for an intimate apparel store that can serve all the needs of the Tri-county woman.
Financial Projections
Bra~vo Intimates' financial goals are the following:
- to achieve a net profit margin of over 7% the second year of operation and 15% the third.
- To achieve a net profit of £41,000 the second year and over £100,000 the third year
In order to achieve such figures, we have start-up requirements of approximately £196,000, including £80,000 in initial inventory.
We will seek a five year loan, working with National City Bank in Royal Oak, to make the first year's payments as flexible as possible.
Highlights
1.1 Objectives
- To create a point of destination shop for premier lingerie, swimwear and personalized fitting service.
- To achieve the greatest portion of market share in the region for speciality foundation garments.
- To be active in supporting women's and community organizations, connecting events to in-store promotions.
- To achieve a net profit margin of over 7% the second year of operation and 15% the third.
- To achieve a net profit of £41,000 the second year and over £100,000 the third year.
1.2 Mission
To be the premier intimate apparel and swimwear store in Michigan, fitting every customer in a fashionable bra or swimsuit, giving her incredible support and shape, therefore enhancing her entire silhouette!
1.3 Keys to Success
To succeed in the intimate apparel business we know we must:
- Carry an assortment of foundations in various sizes, styles and colors, in quality brands.
- Carry fashion and basic brands that are a point of difference from our competitors.
- Educate and advise our customers on being fitted, and to have a wardrobe of foundations for a variety of fashion needs.
- Continuously review our sales and adjust inventory levels accordingly.
- Provide customers with excellent customer service in a positive body image atmosphere.
- Advertise in areas that our potential customers will learn about us and the services we offer.
- Keep informed of trends, technology and new brands.
- Have a variety of price points, knowing that women come in all shapes, sizes and economic levels, with the average price point in a middle range.
