(Assignment) Business Entity My plan is to open a new showroom named ‘JBR Collections’ in the Los Angels City of USA. The showroom will deal in locally produced and imported wristwatches, wall clocks and time pieces to the elite, upper, and middle class people of the city…
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In addition, it is pointed out that America is an emerging market for high-end watches, especially the complicated and fashionable ones. In addition, despite the recession, there is a report by Johnson in the National Jeweler dated 1 April 2005 that the sale of fine watch grew by 6 %, and as per the reports, the sale of high – end watches rose in double digits. In addition, there is report that the watch market has a 9.3% increase in 2005, a figure that attracts all businessmen considering the impact of recession. However, the rise is visible in high-end products, not in low-end products. From the above analysis, I found it safe and profitable to have my business in watch and timepiece retail, especially focusing on the elite class of the society. By starting my showroom in strategic location like the city of Los Angels, a decent business is assured. As per the reports, there is a sharp increase in the sales of watches ranging above $ 10,000. In addition, there is a considerable rise in the sales of ‘steel and diamond watches’. Moreover, as per reports, the total US consumer spending on watches and other jewelry rose by 1.2 percent, as compared to 2009 (Jewelry & Watch Retail). Furthermore, according to the DJ US Consumer Goods Index, ‘consumer goods’ come fourth in the list of ‘best performing industries. Thus, it becomes evident that there is a possibility of this industry performing better than all other industries. Moreover, as per reports, the sales of Swiss watches in Chile increased by 30% in 2007 and are expected to rise more (Economic Integration). In addition, there is the logic that there will not be any fall in the sales of watches as they are all time requirement for people. So, even if there is no sharp growth in demand, there will not be any considerable fall in the sales. The only issue will be the competition from other retailers in the market. Thus, it becomes evident that retail of watches is one of the best business opportunities in the present business climate in the US. In addition, as per predictions, there is no possibility of a sharp downturn or fluctuation in the sales of watches in America. I would like to mention here the fact that American economy is on its recovery path from the recession, and hence there are new business opportunities as people are regaining their lost financial safety. As people are regaining their financial strength, it is highly likely that they will again start purchasing apparels and cosmetics, as they are an essential part of life. As compared to other such things, watches are a necessity for all people. So, taking into consideration the influence of recession, and the still weak economy, it is wise to select the retail of watches. In fact, I have selected Los Angels as the location of my showroom. There are various reasons for this selection. The first consideration is the huge population of Los Angels. It is the most populous city of California. As per reports, the population of the city is around 4.1 million (Beacon Economics, 2010) In addition, the location is the focal point of the Los Angels- Long Beach Riverside, with a total population of over 18 million. Yet another point of consideration is the higher income of people in Los Angels city. As per reports, the per capita income of people in the Los Angels city is an average of $ 55,000 (Beacon
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