NATIONAL INSTITUTE OF FASHION TECHNOLOGY, KOLKATA

Entrepreneurship
Business Idea Generation, Evaluation & Selection
Ankita Dhandharia, Indranil Saha, Neelima Singh

Faculty Name: Dr. Sougata Banerjee

Mid Semester Assignment
Semester-III
Master of Fashion Management

Business Idea Generation, Evaluation & Selection

Business Idea 1:
Online Retail Website which offers Apparels & Gadget Accessories made out of Handloom
Textiles of India (charkha.com)
Introduction

An online shopping website which offers apparels and accessories made out of handloom
textiles of India
Focuses on combining Indian tradition with modern necessities
Caters to the college going students and young professionals who are attached to the
Indian traditions and who lead urban sophisticated
Imparts Indian traditional woven fabrics across wide category of apparels and accessories
both for men and women
The website has an earthy look and it reflects Indianness through its service & visual
appeal

Office Location

22A, R.B. Road, Lake Town, Kolkata

Customer Profile
Demographic Profile

Gender: Men & Women

Age: 18-28 Years

Family Income: 3.6 lakhs-6.0 lakhs/Annum

Location: Kolkata

Occupation: College Students, Young Professionals

Education: Graduation, Masters

Stage in the family life cycle): Unattached Adults, Newly Married Adults

Psychographic Profile

Social Class: High Middle Class

Values: Indian Traditional values

Lifestyles: (Reformers)

Freedom from restriction, personal growth, social awareness, value for time, independent
judgment, tolerance of complexity, anti-materialistic but intolerant of bad taste.

Curious and enquiring, support growth of new product categories.

Select brands for intrinsic quality, favoring natural simplicity, small is beautiful.

Product Features

Handloom Textiles of India

Fusion of Indian Woven fabric & Indo-western Style lines

Premium Quality

Gadget covers wrapped with Indianness

Value addition to daily necessities with Traditional richness of India

Geographic Area

Kolkata, the cultural capital of India

Initial Market Research for determining the strategies becomes handy

Huge potential market of Indian Handloom Textile products

Easily available raw material in the eastern and north-eastern part of India

The business can be expanded depending on the growth

Competitive Players in the Existing Market

Fabindia online website

Khadi Bhawan(B&M)

Tantuja (B&M)

No defined competitors who provide handloom textile covers and protectors for gadgets
and tech accessories (both Online and B&M)

Competitors Price Points

Price Range (Fabindia Online Store)
Category

Lower Price Level (INR)

Upper Price Level (INR)

Kurtis and Kurtas

490

5290

Tops & Shirts

430

2390

Dresses, Kaftans & Jumpsuits

690

1890

Dupattas, Stoles & Shawls

990

2090

Salwars & Churidars

390

1190

Saris

2660

6590

Pants & Capris

660

1590

Skirts

790

1890

Bags & Jewellery

260

8990

Kurtas

490

1990

Shirts

490

1590

Pants, Pyjamas & Churidars

530

660

Women

Men

Jackets

1690

2790

Bedsheets

790

2290

Cushion Covers

230

930

Curtains

490

1790

Quilts

1760

2290

Tablecloths

299

1860

Placemats & Napkins

290

990

Home Products

Price-point that charkha.com Offers

According to an Indian consumer behavior research, the target customer segment is price sensitive and brand savvy

In order to position chrkha.com in consumers mind, the lower price points are almost same as the biggest competitor
fabindias online website

Upper Price points are slightly lower than its competitors

Covers for tech accessories and gadgets are higher than the existing providers of similar products (e.g. chumbak.com)

Ready-to-wear Apparels (For Men & Women): Rs.499 to Rs.4999

Accessories and Tech Accessories: Rs.399 to 1499

Bed, bath, table and kitchen linen: Rs.199 to 1999

Floor coverings, upholstery fabric and curtains: Rs.399 to Rs.2599

Unique Selling Point

Fusion of Indian Woven fabric & Indo-western Style lines Online

handloom textile covers and protectors for gadgets and tech accessories

Unmatched and not-seen-before designs and silhouettes

Growth Potential

As per the Ministry of Textiles, the Indian textile industry contributed about 4% to the
country's GDP and 12% to the country's export earnings in 2013

Total cloth production in India is expected to grow to 81% by FY17

The demand is very high for premium handloom products due to increasing per capita
disposable income

According to India Online Retail Market Forecast & Opportunities 2016, The online
retail market in India is expected to grow immensely

Market Trends

From the days of Charkha, Indian handloom industry has come a long way

Mahatma Gandhi was the perfect trend setting model for early Khadis, Nehru for his
Jacket, then Indira modeled the woman category

People started looking into it willingly for its affordability and quality

Gradually, it caught the fancy of some designers who started to add variety to it with
embroidery, motifs and designs etc.

The new avatar started to catch the eyeballs of youngsters, elites and the foreigners as
well

Store chains of Fab India, Khadi Gram Udhyog etc. are some good examples of its
metamorphosis and big acceptance

Advertisements & Promotions

Social Media Page and its Promotion

Other online Promotion Activities

Exclusive product photo-shoot and featuring them in leading newspaper supplement

Sale Estimation for the Year Ending 31 March 2015

Particulars
Sales excluding Returns ( Expected )

Amount (Rs)
50,000*12

600000

10,000x12

120000

(-)COGS
Raw Material Cost
Gross Profit

480000

(-)Operating Expenses
Rent
Manufacturing Expenses

5000 x 12

60000

Stationery & Printing

2000 x 12

24000

Advertisement

10000 x 12

120000

Distribution

2000 x 12

24000

Packing expenses

450x 12

5400

Bank Charges

250 x 12

3000

PBIT (Operating Profit)

243600

(-)Commission (@1%)

2436

(-)Interest (@10%)

24360

Profit Before Tax

216804

(-)Tax (@9%)

19512.36

Profit after Tax

197291.6

Manufacturing Process

The weaver weaves some yardage and shows it as sample to us

We approve the fabric, work with the weaver to develop some samples

The price is finalized and order is placed with the weaver

The weaver brings the completed order to us

If the fabric has to be stitched, it goes to the tailor with design and measurement specifications

Photo-shoot of the samples is done

Pictures are put in the website with the size & color options, and with product descriptions and Price

Fulfillment of the Order

Orders are tracked in hourly basis

After each hour the orders are viewed and packed accordingly

A Local Courier Service ships the orders around the city

Cash/Cheque on Delivery and Online Payment both are available

Provision of gift wrap (+Rs.50) and special day deliver

Capacity and Future Growth

Only caters to market of Kolkata

Local manufacturers, easy to approach and to deal with

Expansion to other Tier One cities

Associating budding designers who are interested in Indian textiles

More intricate research on traditional fabrics and handicrafts from all part of India

A warehouse, more workforce

Potential Suppliers

Phulia Cluster

Santipur Cluster

Burdwan Cluster

Samudragarh Cluster

Nadia Cluster

MPT Bag Manufacturers, Kolkata

Shakshi Fashions (Apparel Manufacturers), Kolkata

Resources Requirement

Domain name: 10,000 INR

Cost of running a website: 20,000 INR

Travelling and exploring the clusters: 15,000 INR

Making Samples: 20,000 INR

Bulk Order Processing: 1,00,000 INR

Courier Service Charges: 5,000 INR

Advertising & Promotion: 75,000 INR

Business Idea 2:
A Male Salon and Wellness Centre Rekindle
Introduction

Exclusive male salon and spa

Comfortable atmosphere
Customer service is the top priority
Variety of services and products

Salon Location:
Address: 24, Sarat Bose Rd, Chakraberia, Ballygunge, Kolkata, West Bengal
700020
Phone: 033 2475 0166
Timing: 10:00 am to 8:00 pm

Customer Profile
1. Demographic Profile
Gender: Men
Age: 18-40 Years
Family Income: 3.6 lakhs-6.0 lakhs/Annum
Location: Kolkata
Occupation: College Students, Young Professionals, Businessmen
Education: Under- graduates, Graduates, Master

 Stage in the family life cycle: Unattached Adults, Newly Married Adults,
aged
2. Psychographic Profile
Social Class: High Middle Class, Upper Class
Values: Indian Traditional values
Voice of Customers
They indicated that appearance was extremely important in business
field.
Very few feel comfortable in a unisex salon
Some express interest in a male salon
Some express interest in waxing, manicures, facials, pedicures, skin
conditioning
Service Features
A Male Salon and Spa that provides services
Superior Quality
Personal grooming and wellness
Salon

Spa

Retail

Shampoo

Facials

Shampoo

Cut

Massage

Conditioner

Styling

Waxing

Hair Products

Treatments

Nails

Skin Care

Geographic Area
In a posh area i.e., Ballygunge Kolkata
Competitors

Local Salons
Unisex Wellness and Spa Centre
Thai Spa
Spalicious (Wellness and Spa Centre)

Price-points of Services and Products

Salon
(in Rs.)

Spa

Retail

Shampoo - 200 to 600*

Facials 350 to 1750*

Shampoo varied price

range; differs from Brand

Cut 350 to 950*

Massage - 350 to 1250*

Conditioner varied price

range; differs from Brand

Styling 350 to 950*

Waxing 350 to 600*

Hair Products varied

price range; differs from
Brand

Treatments
1350*

500

to Nails 200 to 600*

Skin Care varied price

range; differs from Brand

Benefits

Comfortable atmosphere
Professional image
These services help from stress relief
Results to better productivity at work
Provides health benefits
Many services in one location

Growth Potential
Acquire a property (primary concern)
Hire attorney
Secure location; paperwork on licenses
Hireaccountant
Business incorporation; keep start-up expenses and financials together
Renovations
Renovations
Operating systems refined
Hire masseuse, stylists and technicians
Experienced and reputable
Train employees
Expansion in areas and cities

Industry Trends

Well-Being (i.e., care for self, stress relief)

Capitalizing on the Metro sexual
Men are spending 12billion/year on grooming products
49 % of the men in U.S. is spending on personal care services
Spending capacity is increasing and so people are looking for self-relief
ideas.
29 % of spa clients nationwide are men
Industry as a whole undifferentiated and fragmented

Advertisements & Promotions

Social networking sites (like facebook and twitter)

Out of Home Advertisement
Local news paper
Internet Advertising

Investment Assumptions
Start Up Costs
Approximately 10 lakhs which will mostly be required to acquire a
property, the infrastructure and the equipments.
Revenue Growth
10% in the first 6 months, 20% in the next 6 12 months, 40% in the 2nd
year and 50% in the 3rd and 4th years
Cost of Sales
50% Commission and retail cost of sales
Operations Fulfillment

Scope of Operations
In house, inside the Centre
Ensures privacy
By Appointments only
Employees
Set break and attendance policy
Ongoing training (to keep up with the trends)
Incentives (Commission based payment and tips)
Customer Database
Stores contact information & personal preferences

Capacity & Future Growth

More services can be added

Various packages and deals can be given out
Various chains can be opened if it is successful
Expansion in other cities
Let out Franchisees

Resources

Property
Trained Masseuse
Trained Sales staff
Equipments from local suppliers

Critical Risks
Internal
Skilled Professionals
Walk ins vs. Appointment based
Cash Flow
External
Location
Customer Interest
Effective Education Marketing
Competitor