Are you about starting a baby boutique? If YES, here is a complete sample baby clothing retail store business plan template & feasibility report you can use for FREE.
Okay, so we have considered all the requirements for starting a baby clothing retail store. We also took it further by analyzing and drafting a sample baby clothing retail store marketing plan template backed up by actionable guerrilla marketing ideas for baby clothing retail stores. So let’s proceed to the business planning section.
We all understand without doubt that the general market for baby products might seem relatively recession-proof. After all, the business keeps bringing new customers no matter what’s happening with the economy in the country. When planning to start up a business just like this, it is advisable that you examine every part of the venture before you even open up your doors.
It simply means that you need to write an expressive business plan. A business plan is also important in terms of getting finances for a business and serves as a guide when changes need to be made or when preparing for future growth and expansion of the business. Below is a sample business plan for your use;
Businesses in this industry specializes in clothing retailers that sell a wide range of infant and children’s wear, such as dresses, jackets, jumpsuits, sleepwear and more. Supplementary services include basic alterations like hemming, taking in or letting out seams and lengthening or shortening sleeves.
It is believed that the baby’s and children’s Clothing Stores industry is made up of businesses that specialize in retailing apparel for children under the age of 17. We believe that over the years, a rise in the number of births had a positive impact on industry revenue.
But a reduction in the number of adolescents alters some of the gains made from the rising number of infants and toddlers in the industry. While rising consumer confidence index and strong gains in per capita income had a positive impact on demand for industry products, reducing prices are expected to reduce revenue in the overall industry.
This gigantic industry spends about 11.8% of revenue on labour costs. We also believe that this is very customer service oriented. We believe that retailers need to sustain high levels of customer service to aid customers with their purchasing decisions.
We believe that a large portion of labour in this industry is employed on a part-time or casual basis, and employment fluctuates throughout the year.
Also, in addition to customer relations, employees perform restocking, maintenance and inventory. Capital expenditure comes in the form of cash registers, computers and software and physical apparatuses such as shelves and displays.
Our world has changed due to modernization. The advent of cable television, syndicated radio programs, and the Internet has created a world where a clothing statement in Milano will be on the streets of Gotham in few days.
We believe that the speed of telecommunication system has increased young customers’ expectations and demands for products that represent their own cultural statement. This actually means that this field will keep booming as youths and parents are eager to make their kids look good.
This accurate business plan for Pocoyo Inc. offers young customers the youth-oriented products and clothing that are popular in large urban areas but not available locally. We plan to build a business that will accurately offer our customers distinctive products that will attract them and keep the looking good.
Our target customers at Pocoyo Incorporated will be kids within the age of03-18, who listens to alternative music, participates in youth sports like skateboarding and snowboarding, and looks toward alternative clothing trends in large urban areas for inspiration.
We will provide the distinctive clothing, shoes and products that are just ahead of the fashion curve for them. This Business will be established in Evansville. Evansville is a city in and the county seat of Vanderburgh County, Indiana, united states. This Scituate meets that standard we want to build around our business.
We at Pocoyo Inc. Specialize in the selling of baby and youth oriented apparel, furniture, and accessories to the general public. We at Pocoyo Inc plan to make available a large line of baby and youth clothes and footwear from a number of brand name suppliers.
We at Pocoyo Inc will also carry a full line of products from varying baby furniture manufactures. These products include changing tables, cribs, and special beds for young children.
In addition to maintain a traditional retail store, we will also launch an e-commerce based website once retail operations have commenced. This we believe will allow us at Pocoyo Inc. to rapidly turnover our inventory on a month to month basis. We will also offer young customers the following youth-oriented products and clothing:
Our Business Structure
Kieran Johnson, the founder of Pocoyo Incorporated will manage the daily operations of the business. Kieran Johnson has seven years of experience in the retail clothing industry and everything about it. After graduation with a B.A. in Sociology from the University of Washington, Kieran started as a sales associate with Angelo Litrico clothing, one of the greatest clothing lines in the world.
In just four years, Kieran was promoted to a regional sales manager for the southern United States. She has been praised as an excellent manager who is particularly good with the youngest staff members.
Kieran is also a member of the popular alternative band, Infantile Syndrome. We at Pocoyo Incorporated believe that the combination of these two professional experiences makes Kieran Johnson uniquely qualified to understand the demands of our target customers and how to reach them. Below are the structures we hope to start Pocoyo Inc.
Chief Executive Officer – CEO
Store Manager
Merchandize Manager
Sales and Marketing Manager
Information Technologist
Accountant / Cashier
Cleaners
The business plan of Pocoyo Incorporated will tell us what to do and how to manage our business and all other activities. This is the reason why we were very careful to conduct a SWOT Analysis. We at Pocoyo Incorporated are very much aware of the large quantity of retail stores in Evansville even in the same location as us.
It is the reason why we are leaving no stone unturned to make sure that we establish a business that will take over the Industry.
We at Pocoyo Incorporated also know that if a proper SWOT analysis is conducted for our business, we will be able to position our business to maximize our strength, leverage on the opportunities that will be available to us, mitigate our risks and be well equipped to confront our threats.
The SWOT Analysis for our business was conducted by Leather Business Consult. This firm is known to be the leading figure in business improvement and consulting. They did their job judiciously and they also worked with the available workforce we have at Pocoyo Inc, before coming up with the SWOT Analysis that is summarized below;
Strength
Weakness
Opportunities
Threat
It is important to note that the world children’s clothing market is expected to exceed $201 billion by 2016, representing 19% market expansion since 2009. The Americas have a regional stake of over 38% in the global market.
Just in the G8 countries alone, the children’s clothing market is expected to exceed $120 billion in 2016, representing almost 2% yearly growth over a five-year period. It has been noted that the US leads the G8 with a 45% market share.
Also, the US children’s clothing market generates sales of more than $48 billion a year. The US market is expected to reach almost $67 billion in 2017. We believe that the children and infant clothing industry is made up of the design, manufacture and retail of children’s clothes, which are made in a large range of materials including cotton, wool, and linen and may others.
We at Pocoyo have also noted that clothing styles and types change from one country to the next, depending on culture and temperature. We also understand the fact that clothing protects children from various potentially harmful threats such as the elements.
But Western clothing styles keeps being seen in increasing numbers of other countries outside of the West. It is without doubt that the children clothing represents the most rapidly growing sector in the clothing market, accounting for almost 11% of EU spending on clothing.
Increase birth rates and greater spending on clothing per child are driving demand in the industry. The industry is constantly becoming increasingly competitive, and retailers other than those involved strictly in children’s wear are dedicating more and more space to promotional activities for children’s wear. It is also a known fact that retailers are also offering their branded products at stores carrying multiple brands.
Just like we have stated, the children clothes and products is a billion dollar niche in the clothing industry. It has been estimated that over the past ten years, there has been a notable change in population dynamics in the U.S.
It is important to note that the non-metropolitan population has been increasing at the almost the same rate as the urban population. Evansville’s current population is over 117,000 residents. The city is 250 miles from the closest urban centre.
Without doubt Evansville’s young people don’t live near a large urban centre that offers the diversity in clothing products that the youth culture demands. We believe that this have created a small market niche for businesses to sell clothing and products.
We have also noted our target market and the best way to reach them. Listed below are the market group we hope to attract:
Our competitive advantage
Our competitive advantage at Pocoyo Incorporated is to offer product lines will make a pronounced statement but won’t leave us broke.
We understand that the major brands are costly and not distinctive enough to satisfy the ever changing taste of our target customers. We at Pocoyo Incorporated offer products that are just ahead of the curve and very easy to buy so that our customers will come back to the store often to check out what’s new and patronise our business.
We understand that the products for our targeted market are seen as part of a lifestyle statement. We’re so focused on serving the Evansville youth while earning substantial income.
We also want to represent their style and life choices. We also believe that we will create a loyal customer base that will see us take over the industry. We also believe that we have the required experience and workforce to take over the said industry.
Our major source of revenue is the sale of clothing and footwear for children between 3-18 years old. We plan to carry an expansive inventory of products from many brand name merchandisers. We all know that major branded label apparel manufacturers such as Nike, Reebok, Polo, J. Crew, and Anne Geddes have all launched lines specifically geared for children and kids.
Another source of revenue for us at Pocoyo Incorporated is the sale of furniture for kids. Much like apparel inventories, we at Pocoyo Incorporated will stock a large selection of cribs, changing tables, dressers, and beds for children between new-borns, toddlers and teenagers.
Also in addition to furniture, apparel, and footwear, we will also carry a line of diaper bags, strollers, and other items normally associated with managing the needs of young infants and toddlers. Other products we will be selling that will cover the need of growing kids between 3 to 10 yet as include;
It is very important to note that the lack of information on the market size of our target segment in our business location, it would be difficult to provide a figure for the market share. But our plan at Pocoyo Incorporated is to be able to capture 0.5% of the market by year 3 of the segment in the target area of Evansville. Listed below is an accurate sales forecast for Pocoyo Inc.
We believe that as a firm, we will establish our own line of products, and we will need to apply for intellectual properties, patents, trademarks, design registration, and copyrights to make sure that you’re able to keep these intangibles as part of our business and leverage these at a later time when the brand of the firm has grown and there is demand for its products already.
Our major supplier will be the tailors providing the fabrics and also other suppliers providing key materials and equipment for the firm to complete the creation of the children’s clothes.
We very much understand how important pricing can be for us at Pocoyo Inc. We also know that the success we hope to achieve in terms of pricing rests on our bargaining power. Which is why our merchandise Manager will have to come together with the Chief Executive Officer to ascertain the price of our goods, and also the price of the inventories we purchase.
We also plan to inculcate all our expenses in our pricing in other maximize profits that will helps manage our business successfully. We hope to inculcate the following into the business price wise;
Payment Options
Pocoyo Inc. Is a business that is very much aware that the payment options we provide will serves as a factor that brings our business closer to the heart of the people, and we are very much prepared to make use of that extensively. Pocoyo Inc. will be bringing payment options that are unique and will make the payment for the service we offer very easy for our customers.
We also hope to provide these services by partnering with a renowned bank in the country. Our bank account numbers will be made available on our website and promotional materials so that it will be easier for clients to make payments when necessary.
We at Pocoyo Incorporated understand that it isn’t an easy task to start a retail business and can be dictated by a lot of facts. Factors like the location of the business, business niche, the size of the business, and of course the state of the economy.
We at Pocoyo Incorporated believe will be the forerunner of the industry, which is why we are very careful to note all important facts. We hope to spend our start up capital in the following way;
From our Analysis above, we need $1,084,450 to start Pocoyo Inc. We are very much prepared to organise and manage our business to maximize profits and become the lead figure in the industry.
Pocoyo Inc. is a standard kids clothing retail shop that will be located in the heart of Evansville. This business was founded and will be managed by Kieran Johnson, an experienced individual in the field. The business will be financed by Kieran Johnson and his immediate family members. Which is why the generating of start up capital has been restricted to just Kieran Johnson.
We at Pocoyo Incorporated will utilise the start-up capital in building the business and will not tap any additional sources of funds in the first year of the business. Our start up capital just like we stated above will be sourced from the owner, there has not been any security guaranteed to other capital providers, since these have not been tapped.
We at Pocoyo Incorporated plan to utilise internal cash generated to provide for the funding requirements of the business. Our key performance metric to be used as the business is grown is the sales growth over the first few years.
Our major aim is to establish a high quality children’s clothing offering targeting the market in the United States. Our advantage at Pocoyo will be the offering (high quality children’s clothing at affordable prices since brand premium is minimised) and customer service (personal touch given in the retail store unlike versus competitors).
Our focus in the first year is in building the brand of Pocoyo and increase exposure among the target market. We also hope to ensure efficient operations from concept to product development to creation of the children’s clothes. We also hope to provide Customised customer service providing opinions when asked for and allowing for customisation of clothes to ensure fit of clothes with children.
We at Pocoyo sees the key breakdown of the our product line in terms of product and age We have made sure to inculcate the needs of our customers and employees into our long term plan. Our core objectives at Pocoyo are to develop product and brand awareness of our business among the target market identified for the products.
We also want to create a strong demand from the ‘niche’ market through targeted marketing initiatives and word-of-mouth build-up, and achieve profitability within two years. Our plan is to also capture enough share of the market to be recognised as a competitor among the competitors in the high quality children’s clothing sector.
Checklist/Milestone
