The Brit-Wear Fashion Company - Business Plan Example

Sur First ID) The Brit-Wear Fashion Company 12th April Word Count 530 Business idea This present report proposes for the establishment of a Fashion Company in Hong Kong, which specializes in the sale of fashion clothes that have been designed using British themes. The Fashion Company will be named ‘The Brit-Wear Fashion Company’ and it is proposed that the first retail shop should be located within the Hong Kong’s central business district, which is one of the most populated cities in the World. The Brit-Wear Fashion Company will specialize in fashion cloths for men and women. The unique aspect of the business will be the fact that designs will be developed from various themes or factors that demonstrate Britishness and instead of shipping finished clothing from the United Kingdom; the company will establish its own production plant in Hong Kong where labor is cheaper than in the UK. Research problem and objectives Collis and Hussey (2009) argued that before implementing a business idea it is always crucial to conduct a research about the market in order to establish the feasibility or the likelihood of the business idea becoming successful. Equally, before launching the Brit-Wear Fashion Company in Hong Kong it is of essence to conduct a market research focusing on the Hong Kong fashion/ clothing market. The main factors that the market research will be investigating are the market size that is available for the Brit-Wear Fashion Company in Hong Kong, the present trends that are prevailing in the Hong Kong fashion industry, the competitors present in the Hong Kong market and their unique advantage. Additionally, the demand that currently exist in the market for fashion clothes designed using British themes, and environmental factors affecting the Hong Kong fashion industry such as the economic, political, and technological issues. It is significant to note that these factors listed above are the objectives of conducting the market research. In order to attain these research objectives the researcher employed secondary research technique, which according to Collis and Hussey (2009), involves the collection of data from sources that already exists such as scholarly books, journal articles, and credible internet sites. The researcher opted to use three credible publications that contain pertinent information relating to the objectives listed above. In a scenario whereby it would be possible to conduct primary research, then the research would have seek to answers the research objectives/ question based on actual responses from participants who would have comprised of a random sample population of at least twenty men and women from Honk Kong and two prominent fashion designers based in Hong Kong. The primary research process would have been conducted using questionnaires and the two prominent fashion designers would have been further interviewed to provide further insights into the research questions. Secondary research findings In reference to the research publications that was written by Poon (2013), it is stated that clothing companies in Hong Kong have gain wide reputation for their quality production and reliability since they deliver quality clothing within a short lead-time. The Hong Kong clothing industry is a major sector within the region and it is the third top employer within the region based on the fact that there are 1,021 clothing companies that employee over ten thousand workers. According to Poon (2013), in the international arena of fashion, the Hong Kong fashion industry is a critical player since it exports most of it products to international markets that includes even the United Kingdom and some of their products are stocked in leading fashion retail stores in both America and Europe such as JCPenner, Macy’s, Sears, and The Gap. Additionally, world-renowned fashion retailers such as Ralph Lauren, Calvin Klein, and Tommy Hilfiger, among others source some of their clothes from Hong Kong. In regards to the market size of Hong Kong, Ibp Usa (2009) stated that in the 2009 census report it was established that the population of the region exceeded seven million meaning that The Brit-Wear Fashion Company is likely to benefit from a huge number of customers from the region. According to Poon (2013), among the notable market trends in the Hong Kong market are increased number of environment –conscious consumers who are keen on wearing on clothes that have been produced with minimal environmental damage. Another significant trend is the fact that the male fashion segment has grown because there is an increase in sales for men clothes compared to women clothes and lastly, there is an increased adoption of online marketing and shopping among most of the fashion companies in the region. Poon (2013) noted that among the top fashion companies in the Hong Kong who will compete with The Brit-Wear Fashion Company include U-2, Moiselle, Giordano, Esprit, JEANSWEST, Episode, Crocodile, Bossini, G-2000, and Baleno. Poon (2013) further stated that these fashion companies are well established and have a wide retail network with branches in major cities across the world. Because of the fact that more than one thousand fashion companies are located in Hong Kong it means that there is a big demand for fashion clothes within the region and the high population number creates a huge demand for fashion clothes within the region. In regards to environmental factors, it is noted that Hong Kong has a very vibrant economy and it among the leading financial centers in the world. The region has one of the highest per capita rates in the world meaning that the standard of living is quite high. Thirdly, the region thrives as a financial center because of low tax rates, and free trade (Yao and Yeung, 2003). In regards to politics, Yao and Yeung (2003) stated that the region is democratic compared to the mainland Chain, and this fact makes the region attractive for foreign direct investments. Furthermore, the well developed technological and transport infrastructures make the region appealing to foreign direct investments. Interpretation of the findings From the findings, it is evidently clear that Hong Kong is a well-established center for fashion since there are many high profile players in the local fashion industry who also participate and play a major role in the international fashion industry. The high number of fashion companies further justifies that the region offers a unique potential for fashion companies and hence why there are more than a thousand fashion companies within the region. The research noted that major Hong Kong fashion companies export their fashion clothes to foreign market while the rest sell their clothes locally meaning that local market is already flooded with local fashion clothes that have been manufactured by local fashion companies. This present an opportunity to a foreign company such as The Brit-Wear Fashion Company that sells fashion clothes that have been designed using themes or concepts only found in Great Britain, which will then bring into the local market unique fashion clothes that bear no similarities with local designs. It is noted from the findings that Hong Kong has a huge population, which infers that the market size is equally huge and therefore, the Brit-Wear Fashion Company is likely to record huge sales if it conducts an effective marketing campaign within the region. The big population also infers that there is a huge demand for clothes within the region and hence the reason why there are many fashion companies in the region. From the market trends that have been identified it is correct to state that if the Brit-Wear Fashion Company focuses on producing more fashion clothes for men then it is likely to benefit from the increased demand arising from the male fashion segment in Hong Kong. Secondly, the company should develop a vibrant online presence where it will conduct its marketing campaign and sells its fashion clothes. With over a thousand fashion companies within the region it means that competition is extremely high and in order win a sizeable market share, the Brit-Wear Fashion Company will have to bring into the market clothes that are unique and distinct from others produced by the local companies. The environmental factors within the region encourage the establishment of businesses and this will equally boost the business of the Brit-Wear Fashion Company. Summary The idea of forming the Brit-Wear Fashion Company is based on the fact that Hong Kong fashion market is largely dominated by local fashion companies that only specialize in the production of clothes that bear local designs. Therefore, the market currently has a gap, which presents a business opportunity for fashion companies that produce clothes using foreign designs and it is deemed that these foreign fashion clothes will give the local residents a sense of uniqueness, class, and even distinction. The image attached at the appendix demonstrates how the Brit-Wear Fashion Company intends to produce clothes based on British themes, which will make them unique and competitive in the Hong Kong market. The findings indicated that Hong Kong has a huge market share for fashion clothes mainly because of its huge population, and presently there is an increased demand for men clothing. Thirdly, the market has numerous competitors who also produce for the international market and therefore, they will present a stiff competition to the Brit-Wear Fashion Company. Lastly, the Hong Kong market is encouraging and appealing to foreign investors because of the favorable environmental factors. References Collis, J. and Hussey, R. (2009). Business Research: A Practical Guide for Undergraduate and Postgraduate Students. (3rd edition). UK: Palgrave Macmillan Ibp Usa (2009). Hong Kong Clothing and Textile Industry Handbook. USA: International Business Publications Poon, D. (2013). Clothing Industry in Hong Kong. Retrieved from: http://hong-kong-economy-research.hktdc.com/business-news/article/Hong-Kong-Industry-Profiles/Clothing-Industry-in-Hong-Kong/hkip/en/1/1X000000/1X003DCL.htm. Accessed on [12.04.2013] Yao, L. and Yeung, K. (2003). The China and Hong Kong Denim Industry. Cambridge, UK: Woodhead Publishing Appendix Read More