Women S Clothing Boutique Business Plan - Free Download
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Women S Clothing Boutique Business Plan
Women's Clothing Boutique Business Plan
Market Analysis Summary
There are various economic forces that affect apparel retailers. Consumer confidence is the most
important; people don't shop when they are not feeling good. Unemployment also has an effect, in that
fewer women out in the workforce means less disposable income for high-end quality clothing. Thus, the
large discounters (Target, Sears and Wal*Mart) are now working with top designers to bring designer
apparel to the masses. Although they can't compete on quality, their continued development of the trend
could have a direct impact on retailers who sell designer clothing during tough economic times.
Fortunately, the luxury goods market, of which De Kliek is a part due to the high-end brands it will carry,
has remained recession-proof, as clearly indicated by the successful 2003 results for Coach, Tiffany and
Saks. According to Women's Wear Daily, luxury firms forecast a strong 2004, particularly for accessories
and footwear. However, the strong Euro and slowdown in wealth creation are big concerns and
managing a balanced quality-price ratio is the key to success for luxury retailers.
In the luxury market, luxury consumers (defined as "affluents" who have household incomes of over
$100K) spent more in 2003 than 2002. [1] Based on focus groups, United Marketing believes luxury
consumers see apparel and accessories as more of a necessity than a luxury. This is good news to
boutique retailers. There are over 800 clothing boutiques in the LA Area; approximately 19 percent of
these generate over $500K in sales.[2] In fact, women's clothing stores in Los Angeles have a 62%
higher sales growth rate than the national average; this can be attributed to the fact that the average
household in Los Angeles is considered affluent.
1) Luxury Market Report, Unity Marketing, 2003
2) Local Marketing Research Profile of LA, Bizminer, Jan. 2004.
4.1 Market Segmentation
Market Needs
If you were to overhear women talking in a dressing room, you would more than likely hear them
comment on something they've tried on and question how they should wear it or what it will go with in
their closet. Research has shown that women are stressed, have little time to shop, and would generally
like help in determining the right clothes and styles to wear. With over 61 million U.S. women between
the ages of 25-54 spending over $34 billion in apparel each year, there are sure to be some mistakes
made in clothing choices. Television shows such as BBC's "What Not to Wear" and Style's "Fashion
Emergency" clearly speak to a woman's confusion about what looks best on her. Even women who can
afford a professional stylist feel helpless and often jokingly request that their stylist come to their home
every morning to help them get dressed.
"Within a decade, the companies that do the best job of marketing to women will dominate every
significant product and service category." -Faith Popcorn
One gender in particular influences the majority of the retail marketplace: women. Women comprise 51%
(145 million) of the U.S. population [1] and control or influence 81% of all household purchase decisions.
[2] Women are now earning more college and master's degrees than men, which translates into more
senior positions & higher pay. [3] Overall, women represent 47% of the total U.S. civilian workforce and
as that continues to grow, demands for their time also increase. Balancing work and family are the #1
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Women S Clothing Boutique Business Plan