Business Plan for an Online Ethnic Women's Boutique in UK Case Study

Business Plan for an Online Ethnic Women's Boutique in UK

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Part A : Business plan

Brief about the selected business

The proposed enterprise is an online ethnic shop for women in the UK that sells a selection of apparel and accessories, as well as jewellery with a variety of cultural inspirations. The store will serve ladies from a variety of ethnic origins, celebrating the rich traditions and legacy of many civilizations. The firm will be set up as a private limited company, limiting the owners' liability and facilitating simple access to capital and investments. Women between the ages of 18 and 45 will be the major target market, with younger and older women serving as supplementary target markets. The business's early launch expenditures, which total about £50,000, include the creation of a website as well as initial inventory, marketing, and legal fees.

Opportunity map for your business idea

According to an opportunity map for the online ethnic boutique industry, there is tremendous room for expansion and profit. A growing awareness in cultural diversity and inclusion has increased demand for apparel and accessories with cultural inspiration in the UK (Mintel, 2021). With more consumers using e-commerce platforms for their purchasing requirements, the online retail business has also seen tremendous development. A further possibility for the proposed company to become a leading brand in this niche market is provided by the absence of a dominating competitor in the online ethnic boutique industry (IBISWorld, 2021). Overall, these elements foster a climate that is favourable for the development of an online ethnic boutique industry in the UK.

Market and customer analysis

In order to develop a comprehensive business plan for an online ethnic boutique for women in the UK, market analysis and customer analysis were conducted through secondary research using databases such as Mintel, MarketLine, and FAME.

Market Analysis

In order to recognise possibilities and difficulties in the industry, market analysis is essential. The COVID-19 epidemic has reportedly had an impact on the UK fashion sector, with customers giving comfort and utility top priority when making clothes selections, according to Mintel (2021). However, there is a rising demand for apparel and accessories with ethnic inspiration due to a growing awareness in cultural diversity and inclusiveness. This offers a chance for a UK-based online ethnic boutique company. Additionally, according to MarketLine (2021), the UK's online retail sector will expand over the next several years as more customers turn to e-commerce platforms for their buying requirements. This creates a big possibility for an online ethnic boutique company since it enables a larger consumer base and lower overhead expenses compared to a physical shop.

Customer Analysis

Understanding the traits, tastes, and behaviours of prospective consumers is part of customer analysis. The proposed company's primary target market is women between the ages of 18 and 45, with younger and older women serving as additional target markets. Women in the UK prioritise quality, affordability, and sustainability when making selections about apparel and accessories, according to Mintel (2021). These preferences will be catered for by the proposed firm by providing high-quality, reasonably priced, and environmentally derived items. Additionally, according to Mintel (2021), women in the UK are becoming more interested in cultural diversity and inclusion and are looking for clothing that honours many ethnic heritages. This offers an opportunity for an online ethnic boutique business to meet these clients' needs by providing a variety of items with cultural inspiration.

For an online ethnic boutique business in the UK, secondary research using databases like Mintel, MarketLine, and FAME has given useful insights into the market and client preferences. The target market, product offers, and marketing tactics have all been identified in the thorough business plan that has been created using these insights.

Competitor analysis

"Sareeka" and "Biba" are two possible rivals for the online ethnic boutique industry. While Biba is a well-known brand that offers a variety of modern ethnic wear, Sareeka is an online store that sells a variety of ethnic clothes and accessories (Sareeka, 2023). Both rivals provide a variety of items for ladies and have a strong web presence. However, the planned company would set itself apart by providing a distinctive selection of culturally-inspired goods that honour the many cultural heritages of women in the UK (Biba, 2023).

Marketing mix

Any firm must use the marketing mix, sometimes referred to as the 4Ps (product, pricing, location, and promotion), in order to effectively reach its target market. Here is a marketing strategy for the envisioned ethnic women's clothing store in the UK:

• Product: The company will provide apparel, accessories, and jewellery with cultural influences that honour the diverse cultures' rich histories and customs. The company will set itself apart by providing a distinctive selection of goods that fuse conventional components with cutting-edge designs, ensuring that the goods appeal to a diverse client base (Kotler, 2018)
• Price: The costs of the goods will be reasonable and represent the good value that the company provides. The company may periodically provide regular customers discounts as an extra incentive to keep doing business with them (Baker, 2014).
• Place: An online retail platform will serve as the main distribution method for the items, allowing customers in the UK to obtain them with ease. The company will use social media tools to interact with consumers and enhance exposure. Pop-up shops may also be utilised to increase sales and public exposure (Constantinides, 2014).
• Promotion: The company will advertise its items on social media, send emails to customers, partner with influencers, and use content marketing, among other strategies. Through customised messaging and top-notch customer service, the emphasis will be on developing a strong brand identity and attracting a following of devoted customers (Jobber, 2016).

Below is the table representation of the above marketing mix:

Financial information

Below given is the simple cash flow forecast for the online ethnic boutique business, based on the start-up cost of £50,000:

According to this cash flow prediction, the company will make a total cash inflow of £225,000 in its first year and a total cash outflow of £110,000, which includes £50,000 in start-up expenses. This yields a net cash flow for the first year of the firm of £115,000. This is a basic cash flow prediction, so there could be other costs and sources of income to take into account. Therefore, before launching the firm, it is crucial to carry out a more thorough financial study.

Pricing strategy

The cost of items supplied, competitive price, and client demand will all be taken into consideration when determining the pricing strategy for the online ethnic boutique business.

The company must account for the cost of inventory, shipping, storage, and any other related expenses when calculating the cost of products sold. In order to maintain its pricing competitiveness, the company will also need to keep a careful watch on what its rivals are charging. The company may learn more about market demand and change its rates by examining rival pricing (Kotler, 2017). The company must think about client desire in addition to cost and competition. Women in the UK who are interested in ethnic fashion are the company's target market. The company will need to perform market research to learn what kinds of items and price ranges are most appealing to this group in order to gauge client demand (Hill, 2017). The pricing strategy for the online ethnic boutique business will be a combination of cost-plus pricing and competitor-based pricing as a result of the research of these aspects. Cost-plus pricing will be applied to make sure that prices give a profit margin in addition to covering the cost of items supplied. In order to stay competitive in the market and adapt to shifting demand, competitor-based pricing will be implemented (Cravens, 2017).

Overall, the pricing approach for the online ethnic boutique business will be centred on supplying distinctive, high-quality ethnic clothing at rates that satisfy the target market's needs. The company may establish itself as a recognised and trustworthy online retailer in the ethnic wear market by providing a fair and appealing pricing approach.

Legal requirements

Depending on the legal identity chosen, such as a sole trader, partnership, or private limited company, the legal requirements for an online ethnic boutique business in the UK may change. To be compliant with consumer protection laws, register for taxes like VAT and income tax, and make sure all sales and marketing efforts adhere to advertising guidelines are just a few frequent legal obligations. Compliance with data protection rules like the General Data Protection Regulation (GDPR) is a crucial legal necessity (UK Government, 2022). The company must guarantee that all client data is gathered, saved, and processed in accordance with these regulations. Additionally, it is crucial for the company to abide by all applicable health and safety laws. Also, regulations, including those pertaining to the storage and handling of goods as well as laws and rules protecting the security of both consumers and staff (Information , 2022).

Part B: Reflective Journal

I have honed my innovative attitude in three crucial areas during the preparation of my business plan: opportunity detection, risk-taking, and tenacity.

Recognising opportunities has been a crucial part of my development of an entrepreneurial attitude. I took the GET2 test at the start of the module, which revealed my areas for improvement in opportunity detection. I have learnt to recognise, assess, and take advantage of market possibilities thanks to the research I did for the business plan. I thoroughly analysed the market and my target audience and found a gap in the supply of ethnic women's clothing in the UK. This insight gave me the inspiration I needed to create a novel company concept that serves a particular target market. As a consequence, the foundation of my company strategy is a realistic possibility with room for expansion and success.

My thinking has become more risk-taking, which is another facet of my entrepreneurial mindset. Before taking this session, I tended to steer clear of danger and choose the tried-and-true path. However, I have discovered the value of taking measured risks as a result of developing my business plan. I understood that establishing a business is dangerous, but if the risks are well managed, there may be substantial benefits. The results of the market study show that there is increasing demand for UK-based online fashion retail. In light of this, I made the decision to launch an online ethnic shop for ladies, despite the market's intense competition. But I have faith in my ability to set my company apart from the competition and offer my clients a distinctive value proposition.

And last, persistence has been a critical component of my development of an entrepreneurial attitude. Writing a business plan may be difficult and needs a lot of focus and commitment. But I've come to see that persistence is crucial for being successful as an entrepreneur. I had to overcome a number of challenges, including pricing strategy and financial estimates, which needed a lot of study and deliberation. To overcome these obstacles and create a solid business plan, I stayed tenacious and focused.

My innovative mentality showed a noticeable improvement on the GET2 test that was given at the beginning and conclusion of the programme. My scores in opportunity recognition were initially only ordinary, but thanks to the study done for the business plan, I was able to dramatically raise them. My risk-taking and persistence ratings were already rather high, but they significantly increased as the company plan was being written. Overall, the module has helped me cultivate an entrepreneurial attitude and given me the resources and skills I need to launch and manage a successful firm.

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Conclusion

In conclusion, creating a company strategy has considerably advanced my entrepreneurial thinking. I was able to detect and assess opportunities via the study of the market and my target audience, and by taking measured risks, I was able to create a distinctive value offer. The business plan writing process was difficult, but with persistence, I was able to get beyond the difficulties and create a solid strategy. My entrepreneurial attitude significantly improved on the GET2 test, which supports the usefulness of the training in fostering such a mindset. I am sure that having the obtained information and abilities will help me launch and manage a successful business.

References

Baker, M. J. (2014). Marketing Strategy and Management (5th ed.). Palgrave Macmillan.

Biba. (2023). Biba - Women Ethnic Wear: Kurtis, Suits, & Salwar Kameez. Retrieved from https://www.biba.in/

Constantinides, E. (2014). Foundations of Marketing Theory: Toward a General Theory of Marketing. Routledge.

Cravens, D. W., & Piercy, N. F. (2017). Strategic marketing (11th ed.). New York, NY: McGraw-Hill Education.

FAME. (2022). A Bureau van Dijk product. Retrieved from https://www.bvdinfo.com/en-gb/our-products/data/international-products/fame.

Hill, C. W., & Jones, G. R. (2017). Strategic management theory: An integrated approach. Cengage Learning.

IBISWorld (2021). Online Women's Clothing Retailing in the UK - Market Research Report.

Jobber, D., & Ellis-Chadwick, F. (2016). Principles and Practice of Marketing (8th ed.). McGraw-Hill Education.

Kotler, P., & Armstrong, G. (2018). Principles of Marketing (17th ed.). Pearson Education.

Kotler, P., Armstrong, G., Harris, L. C., & Piercy, N. (2017). Principles of marketing. Pearson Education Limited.

MarketLine. (2022). Womenswear in the United Kingdom. Retrieved from https://advantage.marketline.com/Product?pid=MLIP0427-0003.

Mintel (2021). Fashion: Incl Impact of COVID-19 - UK.

Mintel. (2022). Womenswear UK. Retrieved from https://reports.mintel.com/display/1035361/.

Sareeka. (2023). Sareeka - The Best Online Indian Ethnic Wear Store. Retrieved from https://www.sareeka.com/

UK Government. (2022). Starting a business: Legal obligations. Retrieved from https://www.gov.uk/starting-up-a-business/legal-obligations.

Information Commissioner’s Office. (2022). Guide to the General Data Protection Regulation (GDPR). Retrieved from https://ico.org.uk/for-organisations/guide-to-data-protection/guide-to-the-general-data-protection-regulation-gdpr/.