Introduction
This plan details the financial and promotion plans for Bravo Intimates. It will be located in downtown Royal Oak. This exciting endeavor will bring a needed women’s intimate apparel store to the metro area, expanding the second year to include mastectomy products. No major mastectomy store is available in the metro to serve this customer. Bravo Intimates hopes to be the most prominent regional market player by actively supporting women’s groups and community organizations. We also envision Bravo Intimates being able to connect events to in-store promotions. Our ultimate goal, to become the best intimate apparel and swimwear shop in Michigan, fitting every customer with a stylish bra or swimsuit that enhances her figure, is our ultimate goal.
A portion of all profits will be placed in an account to fund purchase our own building, tentatively scheduled for year four.
The Company
Bravo’s experienced, professional and knowledgeable management team has more than 35 years of combined experience. We have all aspects of the business covered with each member of our team working in their respective areas of expertise.
Rebecca Fall will serve as the owner/operator with 55% equity and be responsible for customer sales, buying 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 is a co-owner with 19% ownership. She will serve as the Operation Manager and be responsible for receivables and inventory control.
The store will be in Royal Oak’s downtown shopping district. South Washington street is the most upscale street in town. The space is 2,000 (10 x 200) square feet.
Products
We will only sell brands that we feel meet our standards for quality and fit. Our customers will soon be introduced to new brands.
Bravo will stock quality American and European products such as Rigby & Peller and Prima Donna. Our specialty is bra fitting for full-figured women. Bras/intimate wear will make up the majority of our merchandise. Swimwear, nightwear/At-home-wear and hosiery will follow.
Bravo will continue to grow in the following categories as it reaches its goals for sales and profitability: bra/intimate apparel and swimwear and accessories; nightwear and at-home-wear; and hosiery.
The Market
The women’’s total intimate apparel market, or innerwear market, grew by 10% during the last three years, reaching $11.8 billion. This period saw strong growth across all product categories, with Bras (17%) as well as Bottoms (12%) seeing the highest growth. Since 2008, consumers have been more aware of the importance of fitting bras correctly. For the past five years, many independent stores have seen double-digit sales growths. This is due in part to two factors. One, the clothing industry features more skin-revealing fashions that require speciality base garments. Two, fashion column writers emphasize the importance for bra fittings and mention the local specialty stores.
Bravo Intimates and Bravo Intimates accounted for $304 million of $10,702million in total sales. They also accounted for $341 millions of $11,797million of the intimate clothing market. With $914 million in revenue last year, direct mail merchants accounted for the largest share of market share. The majority of this increase was due Internet sales.
Based on the potential customers in the Royal Oak region, we have calculated that there are 94,201. This strongly suggests that there is a significant market void. This is why we believe there is a market niche for an intimate apparel shop that can cater to the needs and wants of all Tri-county ladies.
Financial Projections
These are Bravo IntimatesՉ۪s financial goals
- to achieve a net profit margin of over 7% the second year of operation and 15% the third.
- A net profit of over $100,000 in the third year and $41,000 in the second year.
For such numbers, we need to raise approximately $196,000 for start-up, which includes $80,000 for initial inventory.
To make the first year’s payments as flexible and affordable as possible, we will be looking for a five-year loan with National City Bank in Royal Oak.
1.1 Objectives
- To establish a point-of-entry shop for top lingerie and swimwear.
- To have the largest market share for specialty foundation garments in the region.
- To support women’s and community groups, connect events with in-store promotions.
- To achieve a net profit margin exceeding 7% in the second year and 15% in the third.
- To make a net profit in excess of $100,000 in the third and fourth years.
1.2 Mission
To be the top swimwear and intimate apparel store in Michigan. Every customer is fitted in a bra or swimsuit that gives her support and shapes, enhancing her overall silhouette.
1.3 Keys for Success
For the intimate apparel industry to thrive, we need to:
- A variety of foundations are available in different sizes, styles, and colors from quality brands.
- Carry fashion and basic brands that are a point of difference from our competitors.
- Help our customers to be fitted and have a wardrobe of foundations that will suit a variety fashion needs.
- Continuously evaluate our sales and adjust inventory levels as necessary.
- Provide customers with excellent customer service in a positive body image atmosphere.
- Advertise in areas where potential customers can learn more about us and our services.
- Stay up to date with technology and the latest brands.
- You can choose from a range of prices because women come in different sizes, shapes, and economic classes. The average price point is in the middle.