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Knittap Business PlanMY NAMENovember, 2020KnittapMY NAMEMY ADDRESSMY PHONE | MY EMAILNovember, 2020NAME OF INVESTORPOSITIONCOMPANYADDRESSDear NAME OF INVESTOR,My name is MY NAME, and I am a Vietnamese entrepreneur currently living in the United States.I am starting my own ecommerce clothing retailer that promotes Vietnamese local brands. The platform will first starts with five local brands and hopefully with your desire to help, we will build a vendor portfolio across Vietnam. We are asking that you help fund this innovative upcoming retailer by funding our platform with $50,000. With my Bachelor’s Degree in NAME OF MY PROGRAMME from the NAME OF THE SCHOOL and previous buying experience working for Libe, I have all the expertise needed to run the business smoothly and efficiently. Fashion ecommerce is not new in Vietnam. However, there is no platform that promotes local brands and integrate the technologies that I am about to show you. This is something that has been missing in Vietnam which is a main reason why we believe it is necessary for us to take advantage of this market. More and younger Vietnamese’s are interested in domestic brands. And by founding Knittap, we strongly believe we are going to make a meaningful contribution. If you are willing to loan $50,000, we will be able to use these finances to start up our company, as well as pay for the first 6 months’ monthly costs. As you’ll see in my budgets, you will see everything we need to include in launching this business. Attached is my detailed proposal. Please do not hesitate to email me if you have any questions whatsoever. I’ll be in touch next week, after you’ve had a chance to review it.Thank you, I look forward to hearing from you.Sincerely,MY NAMEIntroductionSince the free-trade movement in 1986 as part of the preparation to eventually become a World Trade Organization’s (WTO) member in 2007, Vietnam is experiencing a rapid development (Long & Le Van, 2018). During the global integration of Vietnam, fashion has become the leading industry as this sector has been rising continuously with the highest growth rate (Long & Le Van, 2018). According to the Ministry of Industry and Trade (MOIT) of Vietnam in its 2014 annual report, the fashion industry, including textile, garment, shoes, and accessories sectors. Online consumer satisfaction in the fashion industry in Vietnam plays an important role in Vietnam’s economy (Long & Le Van, 2018). At the present time, there are more than 3.5 million Vietnamese being employed, which account for more than 15% of the total workforce in the industrial sector (Long & Le Van, 2018). On the other hand, for several years, fashion items have been the main contributor to the export’s turn-over of Vietnam (Long & Le Van, 2018). In 2014, the export’s turn-over of the fashion industry was 36.37 billion of USD, which accounted for 24.2% of the total export’s turn-over of Vietnam (Long & Le Van, 2018).BackgroundKnittap is a company that is going to be a game changer for the retail world. Knittap will be a fully online e-commerce company in Vietnam, focusing on promoting local Vietnamese brands such as Subtle Studios, Nudieye, Lane JT and Must have.There is yet a platform that collects all of the local brands in Vietnam. In recent years, I have witness the shift in Vietnamese young customers towards the local brands, in respond to the increase in quality and aesthetics of the domestic products. We would like to capitalise on this shift, and at the same time promoting the development of the domestic brands.Knittap will be the platform to introduce new pieces, trends, and products under the local brands. Our pieces are selective from the local brands that already recognized by customers, as well as promote new brands that we believe to have the potential. We will present several different categories of styles so each customer has multiple options to choose from. For example, rather than being a strictly minimalistic based company, we will carry styles that range from edgy to bohemian to feminine. By doing this, the variety and product assortment is unmatched compared to other retailers. Customers going to our website would be sure to find something they love.We care deeply about consumer satisfaction, which is a measure of how products or services satisfy the buyer’s expectation (Long & Le Van, 2018). Normally, consumer satisfaction is regarded as consumer’s expectations before purchasing or using a product and the relative perception of the quality of that product following its usage (Long & Le Van, 2018). The reason why we care a lot about consumer satisfaction since it has a close relationship with consumer loyalty and eventually the profitability of a business (Long & Le Van, 2018). To promote loyalty behaviors, continuous relationship and recommendations, or word-of-mouth advertising, of the product (Long & Le Van, 2018). Therefore, for a loyal consumer, the quality of value received from one supplier is greater than that available from the others (Roger Hallowell, 2006). In the e-commerce side of the fashion industry, consumer satisfaction is particularly important due to the higher expectation of the buyer (Long & Le Van, 2018). For instance, the potential buyer can only see a fashion product with its design and color on websites but does not know whether the product would fit his/her body and how it would feel, in terms of aesthetic feel or tactile quality (Long & Le Van, 2018). These are the reasons why more and more buyers nowadays seek information about fashion products through websites but then going to the physical stores to actually try and buy them (Long & Le Van, 2018). Target MarketStudents and office employees are the most important demographic for online apparels shopping in Vietnam (Long & Le Van, 2018), and also our target customers. This group has the following typical demographic characteristics: age is not more than 35, and monthly income is not more than USD 700 (Long & Le Van, 2018). They are also the type of consumers who prefer the newness in products and services, are price-conscious with online products, and respond well with promotions (Long & Le Van, 2018). Moreover, we aim at keeping customers’ satisfaction throughout their online purchase experience. This means that the interest of consumers should be maintained from the start of the buying process, when they continue to find more suitable websites. To achieve this, we focus on marketing activities and website UX design, which are the two main factors that according to Long and Le Van (2018), should be carefully delivered by online retailers. In the customers’ next step of their buying process, we focus on technology and products that are also important determinants that covert targeted consumers to actual customers, after their searching and comparing different products on the website (Long & Le Van, 2018). In their final step, we make sure to keep customers’ belief and trust in the process of Delivery and Payment. This is the final key factor to keep consumers stay with e-commerce (Long & Le Van, 2018).To achieve customers’ satisfaction, we also focus on using technology to render personalization in customers’ shopping experience. The personalized experience would be achieved through deep learning, based on user’s interactions with the portal. As Knittap would be a completely online e-commerce, it is more important to decode the “context” or the implicit need state of the user based on explicit signals their browse and purchase history like click stream (Arora & Warrier, 2016). Unlike movies, music, books that also rely on customers' personal choices and social proofing elements to evaluate their purchase possibility, fashion bears a striking difference with those products (Arora & Warrier, 2016). This is because fashion products have a very short life span, and fashion needs to be fresh and diverse (Arora & Warrier, 2016).Fashion field is characterized by ephemeral, seasonal, and fast-changing products (Arora & Warrier, 2016). This causes two issues with the fashion domain: one is manual curated fashion taxonomy is inherently unsalable and the other is sparse and volatile transactions signals at a product level (Arora & Warrier, 2016). Approaches that are pure content-based without considering the context will hence fall short. Another notable difference that differentiate fashion products with other personal products is that fashion can emerge in multiple contexts (Arora & Warrier, 2016). This means that a song, or a movie, or a book could offer the whole context in the product itself (Arora & Warrier, 2016). A T-shirt, however, could have been purchased with the customer's intention to match with existing jeans, or to pair it up with new chinos, or just a new entry into a user’s wardrobe collection (Arora & Warrier, 2016). Understanding the context behind customer’s purchase is important to provide the right personalized experience, by for example, offering personalized recommendations for the customers (Arora & Warrier, 2016). Customer loyalty is very different when it comes to purchasing on the Internet, compared to the traditional ways. One determining factor is website quality (Nguyen et al., 2016). Besides, there are customers’ trust and perceived enjoyment during their online shopping loyalty, and the role of electronic word of mouth (Nguyen et al., 2016).We focuses on providing good online website quality to retain existed customers. The website will be designed to be easy and quick to use. One of the issues for customers’ concerns is the loss of personal data and perceived risk in security when shopping online (Nguyen et al., 2016). Therefore we invest in providing a secure system, and a secure payment mechanism (Nguyen et al., 2016). Moreover, local vendors participating in our platform are requested to have all of their information accurate and complete, to ensure customers’ perceived reliability (Nguyen et al., 2016). We also invest in fulfillment/reliability, which would increase the website quality, and could attract more new customers in the competitive market (Nguyen et al., 2016). Our customer service would take care of customers’ comments or complaints. Knittap manages vendors based on feedback from buyers (Jinarat, n.d.). Online reviews plays an important role when consumers in situations where they feel lack of knowledge and confidence (Astuti & Dewi, 2019). Research shows that consumers have a greater influence on consumer reviews, compared to independent experts’ advice or businesses (Astuti & Dewi, 2019). This gives customers such authority because this way provides information to them as an opportunity to get information between customer service vendors and buyers. Online reviews is an independent and trusted source that offer potential customers enables them to identify distrust to vendors, as well as avoid payments to unreliable and dubious products (Datta, 2011). Online reviews provide a scape for comfortable learning of people's experiences, at the time they want, and without direct vendor pressure (Astuti & Dewi, 2019). We prevent this by carefully select our vendors. Therefore, we expect that the consumer reviews on Knittap would be a positive power shift tool, which allows consumers to get positive information. The Aesthetic of the WebsitePhoto 1. Website design(Taken from )The Product AssortmentPhoto 1. Striped Crochet Blouse(taken from libeworkshop)Photo 2. Dress(taken from uptoseconds)Photo 3. Corset(taken from pur.braslove)Photo 4. Fitness wear for men(taken from omgsportswearvietnam)Photo 5. Tote bag (taken from ) BudgetOverallStart-up costsEstimated CostsRetail License$50Advertising$45,000Inventory $45,000Equipment$45,000Total$135,050Monthly budgetMonthly BudgetEstimated CostPayroll$4,000Monthly Projected SalesEstimated TotalTotal Income$15,000Total Monthly budget$9,550Total Profit$5,450Yearly Projected SalesEstimated TotalTotal income$253,000Total Yearly Budget$114,600Total Profit$138,400MonthExpected IncomeJanuary$20,000February$25,000March $23,000April$20,000May$15,000June$25,000July $25,000August$15,000September$25,000October$20,000November $10,000December$30,000Total$253,000The budget for Knittap averages what it would be to run in the context of Vietnam. The amounts shown in our table are estimated costs and our anticipated profits.SWOT AnalysisOur competitors consist of fashion ecommerce such as SheIn and AirSpace, as well as general ecommerce platforms that offer cloths such as Shopee, Lazada, Tiki, and Sendo. All of these retailers pay some attention to trends, however, there are also differences that set us apart from those companies. Knittap focuses of only local brands, with a concentration of customer experience, fuelled by deep learning. Our weaknesses may stem from the fact that we would be a new platform. However, we believe this will not last long as our business model and identity is unique. Promotion and marketingOur promotion and marketing strategies are scientific-based. We would make use of the following channels to promote our brand:1. Advertising Investing advertising to attract consumers’ attention. Advertising are channel through electronic media, print media and social media (Dung & Vinh, 2019).2. Sales Promotion on the Website Knittap’s website itself would be used as a sales promotion media that has the ability to reach an unlimited and wide range of time and place (Rahayu & Fatima, 2019). This promotional costs is cheaper than other media channels. We ensure that the website can be accessed 24 hours non-stop anytime and anywhere. 3) Promo Code We provides promotions not only for products for frequent customers, or in special events such as Christmas or New Year (Rahayu & Fatima, 2019). 4) Influencer MarketingYoung customers in Vietnam respond well to online figures. We would collaborate with names such as Quynh Anh Shyn, Khanh Linh, or Son Tung MPT to promote our brands. 5) Word of Mouth Word of mouth strategy is a means of marketing communication strategies that are effective enough to increase sales since this marketing communication strategy is carried out personally. This strategy tool is performed by consumers' relatives or acquaintances, and is the best way to promote trust. This technique is regarded persuasive compared to other advertising media (Rahayu & Fatima, 2019). 6) Social medianKnittap would make use of social media introduce our products, services, and brands. Social media or social networking sites like Facebook, Twitter, and Instagram are now used as promotional media (Rahayu & Fatima, 2019). These platforms are heavily used by young Vietnamese, which promise to be effective in gaining new potential customers. BiographyThe founder of Knittap is a young and motivated entrepreneur from Vietnam. The founder is now studying in the United States. The founder has worked in several areas of the retail industry where she was able to learn more about multiple positions from operations, receiving, management, and visual merchandising. She has previously worked as a sales assistant for the Libé, a prominent local brand in Vietnam, where she constantly dealt with inventory, new product, and trends every single day. She feels the needs to make use of technology to make radical changes in the fashion industry of Vietnam. All of the skills the founder possesses are extremely necessary and valuable in running Knittap. The founder is well aware about what is missing in Vietnam, and with her creation of Knittap, she is filling the gap of the fashion ecommerce market in Vietnam. The founder is familiar with all areas in Hanoi and Ho Chi Minh City thanks to her upbringing in Hanoi for 18 years, and her summer working experiences in Ho Chi Minh City, giving her the opportunity to provide her expertise and knowledge about different regions of Vietnam when opening her ecommerce firm. Madison is known for her entrepreneurial spirit, and good leadership potential. She is always trying to uplift anyone surrounding her through her sweet personality and her semi-smart sense of humour. She is very positive person, with a strong belief that everyone is gifted in their own way, and with suitable leadership, she could inspire anyone. She is also a proud Vietnamese, which inspires her to build Knittap to enhance local brands. Her favourite quote is: Tell me that I can’t, I will show you I can”. ReferenceAstuti, R., & Dewi, A. P. (2019, April). THE INFLUENCE OF CONSUMER REVIEWS PRICES AND ONLINE ON PRODUCT PURCHASE DECISIONS IN FASHION CATEGORY IN SHOPEE"(CASE STUDY OF FACULTY OF ECONOMICS AND BUSINESS, UNIVERSITY OF MUHAMMADIYAH SUMATERA UTARA). In?Journal of International Conference Proceedings?(Vol. 2, No. 1, p. 95). , S., & Warrier, D. (2016). Decoding fashion contexts using word embeddings. In KDD Workshop on Machine learning meets fashion., P. (2011). A preliminary study of ecommerce adoption in developing countries.?Information systems journal,?21(1), 3-32., D. T., & Vinh, D. H. (2019). E-Commerce In Vietnam: Opportunities And Challenges.?Socio-Economic And Environmental Issues In Development,?244., S. K., & Fatima, F. N. (2019, November). Marketing Communication Strategy with E-Commerce. In?IOP Conference Series: Materials Science and Engineering?(Vol. 662, No. 3, p. 032058). IOP Publishing. , V. (n.d.) eCommerce Infrastructure in Thailand and Its Neighboring Countries., N. D. B., & Le Van, N. T. (2018). Online consumer satisfaction in fashion industry in Vietnam.Nguyen, D. P., Tieu, M. T., Doan, N. C., & Le, D. H. (2016). Studying customer loyalty of e-commerce-case study: Zalora (Doctoral dissertation, FUG HCM). Hallowell. The relationships of consumer satisfaction, consumer loyalty and profitability: an empirical study, Harvard Business School, 1996, pages 1-6. ................
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