1 Executive Summary
PLUS LiFe is a new company that aims to provide a one-stop online store for plus-sizers from clothing to a lifestyle. PLUS LiFe website enables plus-sizers to shop and buy quality and trendy apparels with matching accessories anytime, anywhere, while receiving fashion and health tips. We will also be a platform for local designers to showcase their designs under PLUS LiFe. The company will be a partnership and managed by the five business owners - Alexander Bernard Halim, Ho Lee Wen, Lee Ping Verena, So Jami Florence and Zhang Liming.
Some 1.2 million Singaporeans made online purchases worth S$1.1 billion in year 2010 and the number is expected to hit S$4.4 billion in 2015 according to a survey by Paypal. Fashion remains the one of top products purchased online accounting S$143 million (13%) of the total online purchases. Similar to other developed countries, Singaporeans have grown bigger and fatter as compared to two decades ago. 10% of Singaporeans are obese However, plus-size apparels remain uncommon in Singapore and there are not many physical and online shops that focus on plus-size apparels. There is only one main competitor – Big AND Beautiful (BAB). Based on the current market situation as well as the growing number of plus-sizers, there is definitely an opportunity in the plus-size market.
PLUS LiFe website will be a one-stop retail platform for plus-sizers from casual clothing, formal wear to a lifestyle. Our apparels will be from two different sources – overseas suppliers and self-manufacture. Our main apparels supply will be from China and we will also be working with a China manufacturer to produce our own designs.
PLUS LiFe will be the fashion platform for local design students to showcase their creative works and receive feedback and build up their design portfolio. PLUS LiFe will market their designs under our designer collections. The website will also provide our customers with the latest fashion news, tips on how to dress, what type of clothes will best complement body shape, health tips, etc.
The primary target market of PLUS LiFe will be plus-sizers who are conscious with their image and want to look good. PLUS LiFe will translate the latest trends from the catwalk, celebrities and streets into affordable quality stylish plus-size apparels. In the first two years, our concentration will be home-based (Singapore) and on the Malaysia market. PLUS LiFe wishes to expand its marketing efforts to enter the ASEAN market from year three onwards starting from Indonesia and eventually moving towards the Asian market. We will also be launching our plus-size men’s collection in the fourth year. However, because of the low barrier to the market, we will expedite its anticipation to enter the ASEAN market if competition increases.
To achieve the expansion plan and fully exploit the market, PLUS LiFe is seeking SGD $ 400,000 as growth capital. Over the next 3 to 5 years, PLUS LiFe would be able to generate significant earnings for its investors.
According to our estimate, PLUS LiFe is projecting a sales of SGD $ 171637.28 in its first year and forecasting a yearly average growth of 35% for the next five years. The average return of owners’ equity yearly is expected to be 3.5. Overview figures are shown as below:
Figure 1- Total Revenue
Figure 2- Profit after Tax
2 Company Summary
PLUS LiFe is an upmarket online store that will open for business in May. PLUS LiFe aims to provide a one-stop online store for plus-sizers from clothing to a lifestyle. The PLUS LiFe website enables plus-sizers to shop and buy quality and trendy apparels with matching accessories anytime, anywhere, while receiving fashion and health tips. PLUS LiFe will also be a platform for local designers to showcase their designs under PLUS LiFe
2.1 Company ownership
Plus LiFe is organized as a partnership among five persons, namely, Alexander Bernard Halim, Ho Lee Wen, Lee Ping Verena, So Jami Florence and Zhang Liming. Alexander will manage the website, Lee Wen takes care of finances, Jami will handle all administrative and managerial duties while Liming will focus on our suppliers and manufacturers in China. Verena acts as a silent partner.
2.2 Start-up Summary
Plus LiFe start-up costs are as follows: The five partners will come up with an initial capital of $x. Plus LiFe will start business with three months’ stock of clothes and accessories. As Plus LiFe is an online business, the majority of the assets will be in inventory.
Insert Start Up costs OR Balance Sheet at start-up point
The purpose of this business plan is to raise SGD$400,000 as growth capital. The funds are needed for the plans to expand the market to ASEAN countries, followed by other Asian countries within the next 5 years. Plus LIFE also has plans to launch plus-size men’s apparel by the fourth year. The funds will primarily be used in engaging local consultancy firms to conduct market research and on marketing efforts. The usage breakdown of the growth capital is as follows:
Insert a table of expenditures for $400,000
2.3 Company Locations and Facilities
Plus LiFe’s office will be located at Blk 306A Punggol Drive #12-001 Singapore 560306. This is currently under Verena’s personal ownership. Approved by the Housing Development Board’s Home Office Scheme, the 90m2 flat will be used as an office, as well as storage for PLUS LiFe’s inventory.
3 Products
PLUS LiFe will mainly operate on women’s clothing selling, and the products are planned to include formal wear and casual clothes (see list below). We will strive to provide apparel with a good combine of classical design and fashion character. The source providers will be from mainland China, and we will be purchasing clothes directly from local manufacturers and wholesalers, and in a variety styles and colors. Apart from apparel which will account the greatest percentage of our business, we will also manage clothing accessories, including hats, scarf and waistband.
Product regular adjustment will base oncustomerfeedback,suggestions, and sales reports, in order to build a constantly popular selection.
3.1 Product Description
PLUS LiFe will provide clients with wide types of clothesthat fall within our mission statement. Our goal is to establish a selection which caters for plus-sizers’ demand, and most importantly, delivering specialised fashionable design to our clients. Some of the products we will carry are listed below:
Products / DescriptionDress / Evening dress/Casual
Shorts / Knee Length/Short/Denim
Shirts / Mini/Pencil/Mid Calf/Knee Length/Long
Long Pants/ Jeans / Skinny/ Straight
Tops / Blouses/Casual/Tee Long Sleeve/Tee Short Sleeve/Cardigans
Hats / A variety of styles and colors
Scarf / A variety of styles and colors
Waistband / A variety of styles and colors
3.2 Competitive Comparison
Plus LiFe has a number of advantages that will allowus to build our brand identity and a loyal customer base.
· We will be among the list of the first few online shopping providers for plus-sizers in Singapore.
· The PLUS LiFe membership scheme which includes flexible discount, incentive gift, etc., will be built to cultivate customer loyalty.
· We will function as a platform for local designers to showcase their designs.
· We will also release the latest fashion information and dressing tips to our clients.
· We will maintain a detailed record on each customer, logging addresses, their purchases, size for customer follow-up and in-house promotional purposes.
3.3 Sales Literature
PLUS LiFe will employ a series ofadvertising and sales program to enhance Web traffic, thus increasing brand identity.
· 2,000 to 3,000 delicate hand fan with PLUS LiFe logo and brief introduction will be distributed throughout major MRT and bus exchange in Singapore.
· Exhibition boards in 3 to 5 main MRT stations will be rent to advertise our Plus LiFe business.
· PLUS LiFe design competition will be promoted around Cavalry Italian Design School, Raffles Design Institute and other renowned design schools in Singapore, to attract attention from these future fashion designers.
· Membership scheme will entitle the customer to a certain amount of discount on the sixth purchase after five purchases.
3.4 Sourcing
Our clothing source will mainly be acquired from South China, considering the relatively low production cost and the diversified product types there.
· We will hire a local based in Guang Dong province in China, as Guang Dong is regarded as “the world factory” and has the lowest price comparing with other parts of China. This person will be in charge of routine contacts issues with the local manufacturers and other suppliers for us.
· Most of our products will be purchased directly from the manufacturersto make sure a competitive price. And for some products which may be difficult to buy from the factory, we will contact with regional wholesalers and try to build a long partnership. We will place our monthly orders with them and reviewnew products regularly.
· For the purchased products, we will work directly with the manufacturer and sales representatives to utilize product catalogs and tag PLUS LiFe brand.
· We will also work to solidify our relationships with the vendors so that we may achieve decreased cost of goods.
· To promote the original works from Singapore local designers, some well design standing out from the PLUS LiFe design competition will be put into production line, to gradually form our unique collection.
Some of the major wholesale clothing centres in Guang Dong Province are listed below:
The Baima Clothing Center is one of the largest clothing wholesalers in Guang Dong Province, which was founded in 1991. It began the apparel business in 1993. Baima has united regional wholesalers under one roof, more than 2,000 manufactures from Pearl river delta region and Yangtze river delta are located here. Currently, its market has crossed five continents including North Europe, Middle East, Southeast Asia, North Africa and South America, and the average annual deal values CNY3 billon (http://www.baima.com/).
The Guang Dong clothing Wholesale Network is one of the earliest entrants in this industry. It mainly operates women apparel with Japanese and South Korean Design. From 2003, it focused its business on online wholesale. The product update frequency of it is high, and for each week, new design will coming into its sale collection. This will benefit our selection variety (http://www.cicicam.com/).
We believe we can gainan edge through these marketing programs and strategic alliances purchase.
3.5 Future Products
We are planning to launch men’s collection in the fourth year, which will Include tops, pants, suits etc., to achieve and exceed our sales and profitability goals. Besides, we will gradually add local student designers’ work tothe product line to create ourown personal in-house label. And products willalso be expanded according to customers’ suggestions and feedback.
4 Market Analysis Summary
The primary target customer of Plus LiFe will be plus-size women in Singapore, and then in the following years, as male’s collection be added, our target will incorporate men. Meanwhile, the market region will expand into Malaysia, Indonesia and even other ASEAN countries, to increase our customer base if the prospect will be good.
4.1 Market Segmentation
Plus-Size Women (age 18-25): This group is the youngest part in our customer pool. It will be constituted mainly by college students. The latest trends from the fashion industry will regularly be practising into this stylish plus-size line, considering their strong desire to follow the fashion.
Plus-Size Women (age 26-35): This community of women probably have entered into the career for several years, so this product line will concentrate on office dress, since plus size formal wear could hardly be found in the current market.
Plus-Size Women (age 36-45): As women in this age group are very likely to gain weight and become a plus-sizer, this group will be our primary market focus. Also considering their relatively larger purchasing power, comparing to the former two groups, this collection line will carry a combination of smart casual and formal office dress.
Because Plus LiFe offers a variety of well-designed apparel and clothing accessories, along with plus size lifestyle information in our website, we think that we will be able to create a recognized brand in the near future.
4.2 Target Market Segment Strategy
The goal of Plus LiFe is to serve the plus-size communitythat have difficulty finding clothes suitable for them. Currently, plus-size apparel is not the main concern for most designers and manufacturers, which lead to this is still an under-tapped market area.
4.2.1 Market Needs
T There are several important needs in the plus-size wear business that are being either underserved or not met at all. Plus LiFe plans to meet and service those needs.
· Generally, there is a size segment missing in most brands, most of them are seldom to provide a large assortment of sizes to accommodate thevarious body shapes. Consequently, it is rather difficult for plus-sizers to shop their clothes. And many plus-sizers have to approach to tailors for fitted clothes.
· Even being provided, most plus size products in the market are lacking of fashion design.
· Plus-size customer profile has been rarely concerned, and little amount of specialised deign for this group of people.
Our focus and attention will be concentrated to address all these needs, and explore this potential market.
4.2.2 Market Trends
Today, many people like shopping online for its convenience, according to a survey (Paypal), Singaporean had spent S$1.1 billion for online shopping, of this a large proportion goes to fashion. And woman is the majority of fashion buyers, “within a decade, the companies that do the best job of marketing to women will dominate every significant product and service category" (Faith Popcorn), which has well reflect the bloom trend of this business sector.
Apart from providing our clients with clothing, Plus Life also intends to use its website to heighten the awareness of the healthy living to the clients and promote the beauty of plus life.
4.2.3 Industry Analysis
Economic, Cultural and Environmental Conditions
Holiday shopping, competitor marketing, the economy and the strength of the dollar can all affect the performance of PLUS LiFe. On a macro-economic level, consumer confidence, interest rates and inflation rates all have an effect. Rising unemployment, political concerns and deflation also pose risks.