BUSINESS PROPOSAL Bashorun Timilehin XKWISITE KOUTURE Abule Era, Ijanikin Abstract Xkwisite Kouture (XK) is a fashion design house envisioned by fashion designer Timilehen Bashorun This business Proposal serves as the framework for the development of XK. The plan highlights how the fashion house intends to debut into the intensively competitive fashion industry and provides insight on the Designs’ product offering and overall vision and mission. Through the vision of XK aims to grow into a fashion powerhouse offering high end, quality designs to a niche market at lower prices than the competition. Each XK creation expresses unique fashion expressions, merged with Nigerian culture and influenced by people, culture, history and art. XK offers a new look based on simplicity, individuality and Art. We appreciate The Christ Embassy for taking an interest helping Xkwisite Kouture implement a program that will strengthen our Brand and help our trainees succeed! 1 Table of Contents Abstract ......................................................................................................................................................... 1 1. Proposal Narrative .................................................................................................................................... 3 1.1 Background ......................................................................................................................................... 3 1.2 Development Requirements ............................................................................................................... 3 1.3 Goals & Objectives .............................................................................................................................. 3 1.4 Statement of Need .............................................................................................................................. 4 1.5 Evaluation ........................................................................................................................................... 4 2. Staff and Organizational Information ....................................................................................................... 5 2.2 Social Media Manager ........................................................................................................................ 5 2.3 Personnel Plan .................................................................................................................................... 5 3. Our product and Services .......................................................................................................................... 6 3.1 Current Goal ........................................................................................................................................ 6 3.2 The Seven Pillars of Xkwisite Kouture Designs ................................................................................... 7 4. Market Analysis ......................................................................................................................................... 8 4.1 Target Market and Positioning ........................................................................................................... 8 4.2 Customer Needs / Customer Wants ................................................................................................... 8 4.3 Market Trends ..................................................................................................................................... 8 4.4 Industry Analysis / Review of Industry Conditions ............................................................................. 8 4.5 Strengths, Weaknesses, Opportunities and Threats........................................................................... 9 5. Marketing Strategy ................................................................................................................................. 10 5.1 Marketing Summary ......................................................................................................................... 10 5.2 Integrated Marketing Communications: Online Strategy ................................................................. 10 5.3 Online Marketing Strategy ................................................................................................................ 11 6. Pricing and sales ...................................................................................................................................... 11 6.1 Pricing Strategy ................................................................................................................................. 11 6.2 Distribution Patterns/Shipping/Return Policy .................................................................................. 11 6.3 Sales Strategy .................................................................................................................................... 12 6.4 Sales Forecast.................................................................................................................................... 12 6.5 Sales Programs .................................................................................................................................. 12 7. Finance .................................................................................................................................................... 12 7.1 Key financial indicators ..................................................................................................................... 12 7.2 Potential Financial Setbacks.............................................................................................................. 12 2 1. Proposal Narrative 1.1 Background Xkwisite Kouture was founded in trained over 27 Trainees and empowered teenagers in its community, with passion for the fashion and design. A significant number of this personnel have gone ahead to start their own brands, a few of them are Old Lob, JennyBest Fashion, Glow Couture, Praise Stitches and Gifted Hand. Xkwisite Kouture is known to deliver fashionable to notch Apparel products to its clients at affordable and competitive prices with a track record of fulfilling each individual client specific fashion needs. With our current strategic demographic positioning at Abule-Era, Ijanikin, Lagos we have been able to provide satisfactory and quality services to our consumer base at a competitive delivery time. 1.2 Development Requirements A Social media manager will be hired to get our social media presence up and running and to ensure the best search engine optimization. XK will set up the social networking sites and contribute a steady stream of commentary to our potential customers. The Social media manager must ensure the perfect the look and functioning of our Online Business profiles. Photos will need to be taken of all our products on live models. 1.3 Goals & Objectives The goal XK Training Academy is to enable Young entrepreneurs and students with interest in the business and fashion industry develop and learn proficient skills to improve their skills to the point where they can succeed the competitive apparel industry. The main objectives include: 1. Providing an enabling environment that facilitate skill acquisition and development within a specific time frame 2. Enabling poor trainees with poor retention facility access for development through the help of assistive supportive Facilitator. 3. Providing individuals with the necessary skills and business know how that will help them increase their possibility of success in the business market on their own. 3 Timeline for Training A B C D E F G H Activities Obtain equipment’s and training materials Training session for Instructors Student Introduction Test Initial comprehension Speed and capacity Begin first Study phase Test Comprehension Improvement Prepare Result Reports Recommendation/Certificate Preparation 1.4 Statement of Need This proposal seeks for an investment of 300,000 Naira in Capacity building grant. This investment will be use to acquire the following items listed below. 1. Training Space 2. Adjustable Mannequin for fashion illustration 3. overlook machines 4. Miscellaneous TOTAL Price 150,000 Naira 100,000 Naira 35,000 Naira 15,000 Naira 300,000 Naira The budget includes funds for Training Space, Adjustable Mannequin for fashion illustration, overlook machine, Miscellaneous. This will provide for independent and assistive Training workstations. This will give students the greatest flexibility in using their Machines, tools and other training materials. 1.5 Evaluation 1. Standardized training tests will be conducted at the start of the program and again at the end of the training to determine increases in skill level and comprehension of the trainees. 2.With the introduction of a proposed online strategy, data will be collected from our online platforms and the online business repository and analyzed with the help consultants to help better strategize. In order to be well positioned to fulfill changing customer needs. 3. A 3-point milestones are stated below that will help measure success and progress and encourage continuous improvement of the XK brand. 4 Implementation Timeline Goal #1 April May 1a: Confratute #2 June July Aug. Sept. Oct. Nov. Dec. 1b: Provide Training and ongoing support to operating team Operation planning #3 Operation Cycle 1 Jan. Feb. Mar. Operation Cycle 2 3a: 3a: Evaluation Evaluation 3b) Community Resource identification and cataloguing 2. Staff and Organizational Information 2.1 Ownership XK is fully owned and managed by Timilehin Bashorun. As currently set up, Mr Timilehin also serves as the head designer and will handle all managerial and administrative duties for the time being. MANAGEMENT TEAM Xkwisite Kouture’ founder, Bashorun Timilehin, is currently the company’s only manager. As the company expands, more people will be hired to contribute to the company daily operations. The manager’s responsibilities include: • Complying with regulations and any related codes. • Making decisions in general. • Evaluating the key product decisions. • Ensuring proper financing. 2.2 Social Media Manager Motunrayo Ayegbokiki, holds a degree in Education from Tai Solarin University. She is also providing support for this program and has taken responsibility for Marketing and community involvement. 2.3 Personnel Plan As the business grows, we will contract with designers, consultants, and customer service representatives. We will look for people with needed specialized skills as well as interpersonal skills as our company grows. 5 3. Our product and Services XK is passionate about creating fashionable clothing with low environmental impact and our vendors play a key role in this. The close relationships will ensure high quality output, shorten production time, prevent a shortage in fabrics, and reduced costs compared to sourcing the fabrics through suppliers based in Overseas. Following the establishment of our online platform all products will be posting apparels for sale via the fashion social media, the social media pages will offer full access to the latest offerings and allow clients to experience the brand’s product offerings and designer updates 24-hours a day from the comfort of their homes. In the future, as the brand picks up and begins to achieve brand recognition, it is intended that XK will have other brick and mortars stores strategically positioned in other locations in Lagos and eventually nationwide. With the end goal of having the XK brand as an identifiable and relatable global brand. 3.1 Current Goal Initially, distribution of XK designs will be carried out through an interactive online Platform. which will allow the Fashion House to showcase her work. Consumers will be able to view and purchase the different articles of clothing available each season. 6 3.2 The Seven Pillars of Xkwisite Kouture Designs The seven key themes provide the foundation for X&K designs. These are described as pillars and are illustrated in Figure 7 below The Xkwisite 7 pillar 1. High Quality – Every garment produced by XK is produced from the highest quality fabrics available using the highest quality craftsmanship. Garments made from ecofriendly fabrics. 2. Affordability – While utmost care is taken in sourcing the highest quality fabrics, clients of XK will not have to part with thousands of Naira that these dresses and gowns typically cost. The XK customer will be able to dress look and feel like their favorite celebrity at a fraction of the typical cost. Important to note is that quality will not be compromised. XK uses the same quality fabrics as top gown designers and each gown and dress is made using topnotch workmanship. 3. Local Production – XK designs are produced in the beautiful city of Lagos. 4. Fast Delivery – All XK Apparel products are delivered at a swift and timely manner to its consumer, on or before its giving or expected delivery date and time. 7 5. Philanthropy – A significant aspect of the XK brand. Designer Timilehin is committed to giving back to his communities. A percentage of the proceeds from the sales of several items are donated to less privilege communities and people. 6. Consumer Centric– Like the Popular Saying in Nigeria, “Customer is always right”. The XK Team is committed is committed to fulfil her consumer needs and desires 7. Trendy and Modern – XK offers a new look based on simplicity, individuality and Artistry. XK embellishes luxury fabrics with intricate details such as hand stitching and homemade accents to add individuality and personality to each piece 4. Market Analysis 4.1 Target Market and Positioning The XK customer is openly position to satisfy the needs of infants, kids, teenagers and adults of both genders. XK is willing to take fashion risks to cross fashion’s boundaries by mixing different textures, colors, fabrics and designs. The profile of the target customer is Vast and versatile. from the average joe consumer to the Nigerian socialite. The XK line will offer customers a variety of colors and fabrics to fit with their lifestyle. The designs will allow the wearer to stand out and challenge traditional fashion, XK quality designs will enable the wearer to go through their activities with maximum comfort and minimum stress. 4.2 Customer Needs / Customer Wants XK customers will be offered a variety of colors and fabrics so their clothing fits with their lifestyles. The intricate designs will allow the wearer to stand out, challenging mass-market fashion offerings. 4.3 Market Trends The Fashion clothing market will always have high demand. According to the Nigerian financial reports the market for Apparel wears is expected to reach 1.2 billion Dollars by the end of 2021. This growth is largely driving by increasing disposable incomes and fashion awareness. In addition, there is a growing demand for stylish and modern clothing. Nigerians today are increasingly looking for distinctive styles, patterns and fabrics which Xkwisite Kouture (XK) is keenly aware of. XK will offer customers fashions that are on-trend and up-to-date with the seasons. 4.4 Industry Analysis / Review of Industry Conditions Apparel fashion changes quickly and is constantly shifting. Inventory will need to turn over in at least a month to three months, if not faster to keep up with trends. XK will keep up with 8 trends and be careful about pricing in order to maintain profitability. The fashion industry is always changing. In order to be a player in this market, it is important to keep a balanced inventory. It’s important not to overstock nor to under stock clothing. Success requires an impressive knowledge of fashion and attention to the numbers. A great attitude and excellent social skills will also help a person go far in this business. This growing industry includes established firms that control a large market share. It has room for people who have captured the zeitgeist by their offerings. Some people trying to make it in fashion fall short on capital. If a person has good business knowledge and capital to back them up, then there is opportunity to go far. 4.5 Strengths, Weaknesses, Opportunities and Threats A SWOT analysis has been carried out to identify key challenges and propellers of XK. It is undeniable that while there are numerous opportunities in the fashion industry to cater to clients’ needs, there are also challenges and threats that XK anticipates that it will face. A summary of the SWOT analysis is provided below. Strength a. We create Designs that inspire the imagination Weakness a. We are relatively new in the market b. We offer luxury designs for affordable prices b. we are small and with limited resources c. We offer cutting edge designs c. We are small with limited Staff. d. Our speed to market is excellent Opportunities a. We are small which makes us manurable and allow us change positively quickly b. there is an opportunity to explore the online market which will enable us save on overhead c. our ideas are young and fresh Threats a. still learning industry requirement b. competitors are more seasoned in the industry c. we are new in the industry don’t have the insider advantage most established fashion giants have 9 5. Marketing Strategy 5.1 Marketing Summary Xkwisite Kouture is aware that its success in reaching its target market will largely be dependent on its ability to utilize the web as a marketing avenue. Everything from Social media to online web search engines. XK will have an extremely strong presence on the web. 5.2 Integrated Marketing Communications: Online Strategy Xkwisite Kouture seek to develop a community of fashion-conscious Entrepreneurs who express themselves through their Designs. Individuals will be able to Register with our Academy and develop their skills. Initially XK will exclusively rely on interpersonal social networking avenues to market the product and training program. XK aims to position itself as the fashion choice of modern, independent, and edgy Nigerian, who is in control of her destiny. XK places a high value on the uniqueness of our customers. It strives as much as possible to personally engage potential customers in our networks. Mr Timilehin places a strong emphasis on the ability to interact directly with the customer. Having a strong online presence will enable XK facilitates her interaction via social networking sites including Facebook, , Instagram, YouTube, Flicker, Twitter, Pinterest, and Word Press. Online Participants will be able to join the XK networks and interact with the designer. These methods are cost effective, yet highly interactive and interpersonal. To further, market the brand, a weekly blog featuring different aspects of current and future designs, showing who is wearing XK, and listing upcoming XK events, as well as other fashion news and advice will be offered by The Lead Designer. This will enable consumers to follow the brand as it grows in popularity. 10 5.3 Online Marketing Strategy Our Social platforms will feature XK fashion experts and will link with other networking sites. Designer Timi will be actively engaged on all the major social media platforms. XK plans to established an online presence both as Training Academy and a Design Apparel Brand. Updates to the different social media sites will be carried out by our allocated marketing personnel. We feel that maintaining direct contact with our clients and followers is key to being able to cater to their wants and also enhances loyalty. However, XK recognizes that as business picks up, this may be a challenge and there may be a need to hire more staffs to manage the social media presence. This decision will be made later. 6. Pricing and sales 6.1 Pricing Strategy Our prices will reflect the quality of the design and materials within them. Pricing will be done at 100% profit margin based on the cost to produce each garment. Garments will thus be sold at double the cost of production per garment. This pricing strategy takes into account the entire cost of goods sold both fixed and variable which includes the cost of the samples for each garment and will allow the company to cover operating expenses and overhead costs. 6.2 Distribution Patterns/Shipping/Return Policy Clothing purchasers are accustomed to making their purchase at brick and mortar stores, but in the current business environment, this is changing to on-line purchasing. Once a product is posted on the Online Platforms, we will offer fast delivering 2 to 7 days for shipment within Lagos. Garments will be placed in a XK garment bag and packed in a larger XK shipping box. Our shipping charge breakdown will follow the courier services pricing structure. Packages arrive within the specified business day, provided order is placed before 4 PM . At XK, it is our intention that our clients are fully satisfied with their purchases. If for any reason our clients are not completely satisfied, they may exchange, replace or credit their purchase as long as garments are returned in saleable condition. 11 6.3 Sales Strategy We will sell people on our company and our quality products. Once people begin to trust XK to connect them with products that suit their needs, its customers will keep coming back time after time. 6.4 Sales Forecast XK anticipates first year sales to be Profitable. Its plan is to increase sales by 35 percent in each year after. An anticipated profit of 25 percent year-over-year for the following five years is expected. Beyond five years, we hope to continue that trend. As volume and revenue increase, XK will be able to expand further. 6.5 Sales Programs XK intends to keep a database of all our customers to send them posts of fashion trends and promotions that we will have. A customer incentive program will give a discount of 20% off the next purchase after a customer spends a decided amount of money that will be decided upon by the management. 7. Finance 7.1 Key financial indicators The financial indicator of success for XK is revenue growth. Significant profits aren’t expected for the coming years. An increase of 35 per cent from the first year of the online business will provide the basis for the company to keep moving forward. 7.2 Potential Financial Setbacks There are considerable potential financial setbacks to consider in this plan. But the hardest part will be the first year of introducing our proposed new services. As the brand becomes more recognized by the public, there will be an increasing number of people wanting to buy the clothing and merchandise. It is unknown what will happen during the Phase, but giving that the company had made sustainable profit with her current limitations, then there is a good indication that rapid growth will follow its proposed improvements. 12
