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Business plan for the start-up of a clothes shop in China: Frenchy

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  1. Presentation of the company
    1. The Company 'Frenchy'
    2. Legal form of business
    3. Company ownership
    4. Organization of the company
    5. China: area that 'Frenchy' wants to exploit
  2. Market analysis
    1. China: Market presentation
    2. Middle market
    3. The Chineese clothes market
  3. Current situation analysis
    1. Analysis of the 7 P's
    2. Analysis of the 3 C's
    3. Positioning
  4. Marketing Strategy
    1. Why does 'Frenchy' expand in China?
    2. Analysis of the 3 V's
    3. Porter's five forces
    4. Supporting Marketing Programs
  5. Implementation and Financial Aspects
    1. Expenses and Liquidity
    2. Company resources
    3. Key fators for setting up of a shop

We are going to launch a new brand in the most famous emerging market in the world: China.

The concept is to launch a semi-luxury clothing company with the brand name ?Frenchy'.
Our objectives are very simple; we want to open a French clothing shop in China, because this market is growing and we think that it could be a real opportunity for us.

We are going to target the middle class market which represents the next generation of ?powerful-buyers'.
Through this business plan, we will explain the different steps that are required to commence our business in the fast growing Chinese market. We will begin by explaining the conception of our idea and its characteristics. Then, we will explain the market analysis that we made in order to understand the market expectations and to recognize our competitors. We will analyze the Chinese market to define how to penetrate it. This part is very important for us, because by learning about the market, we can change and adapt our strategy.

Then we will develop a part of the marketing mix; this part is about our price strategy, the offer that we are going to propose to consumers and the way we will develop our communication strategy in order to be quickly known in the big cities.
Finally, we will present a brief financial analysis.

[...] Skimming Strategy Higher price than the competitors High profit margin to quickly recover the first investment Quality involves High Price Target ?Frenchy' will enter the Chinese market with a specific target: Active women living in Chinese cities 25 45 years old With high purchasing power Positioning ?Luxury image in retail' Top of the line clothes This study aims to analyze how the ?Frenchy' brand could enter the Chinese clothes market. In fact, in order to be efficient and to develop ?Frenchy' in a good way in the Chinese market, it is necessary to study the Chinese needs, the Chinese environment and a lot of key factors which involve success or failure. [...]

[...] Key factors for the setting up of a shop Expected Turnover: ?600,000 per year approximately ?12,000 /week Entrance Fee: ?7500 Minimum initial and personal capital: ?80,000 Distribution area: 100,000 inhabitants minimum Medium area: 150 m2 Total investment without key money: ?200,000 Workforce: Saleswomen: 5 for 1 store + Trainees 130 ?150,000/ year At the Beginning: 4 stores in the four biggest cities in China. Then: If the 4 stores are successful, more stores will be established Conclusion To conclude, we could say that the Chinese market is a big opportunity for our brand ?Frenchy'. [...]

[...] STRENGTHS WEAKNESSES Good brand image No experience in the international French clothes brand market New collections every season Frenchy doesn't have the glamour Good quality product quotient such as Gucci and Dior International development policy Frenchy is not a famous brand Strategy: innovation and Prices are too expensive for an diversification emerging market such as China Presence of Frenchy on the web Products are not attractive for Possibility to order products, young women (15-25) thanks to the website Big capacity of adaptation to the market EXTERNAL ANALYSIS On the one hand, the Chinese middle market represents a large number of opportunities for ?Frenchy'. [...]

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