Overall Feasibility Analysis
The annual turnover of the Russian market of the children's goods and services, by estimations of experts, is within the limits of $4,5-7,5 billion, and now it grows on 15-25 % a year. The significant part of this turn is necessary on manufacture and realization of children's clothes: on rough estimates, in this segment $2,5-3 billion turns. Almost half of the market of children's clothes - $1,3 billion - gets to China (On materials www.roslegprom.ru and www.profile.ru).
Today there is a crisis in the parental attitude to clothes of their children. Traditional " if only it was warm " is replaced by search "more beautifully" and "more decently". And the choice of clothes for children really impresses, nothing conceding to clothes for adults. In shops the huge quantity of marks - from accessible up to elite, foreign and domestic manufacturers is presented.
Product/service feasibility
Concept Statement
The purpose of organizing a small enterprise IE "School age" is granting clothes for children of school age made by the Russian tailor enterprises.
The conception of the project – our shop has specialized in selling baby clothes in sizes 50-126 for the Russian market. By offering comfortable and colourful products of good quality, we will won the trust and support of customers. We use only materials of top quality for our baby clothes. We use soft colours that we consider most appropriate for young children. Our aim is to offer products for customers for reasonable prices. In our opinion, baby products should be merry and happy - we would like to see this happiness also in the eyes of our customers and their children.
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Overall operations plan
The market of children's toys is one of most dynamically developing, and is not going to hand over a position the nearest years. The children's toy – that goods, demand on which grows in direct ratio to increase in well-being of the population of the country and growth of birth rate. And as the policy of the state is directed on the further increase in birth rate in the country, and a lot of attention is given questions of the childhood, analysts designate the light future to the market of children's toys.
We offer a wide choice of the goods for children from 0 till 16 years: carriages, кроватки, toys, children's furniture, cosmetics, clothes and footwear, and many other things.
We carry out not only retail, but also wholesale trade. Long-term cooperation with large foreign manufacturers allows to guarantee faultless quality of the goods, safety of materials, reliability of assembly, presence of all necessary certificates and licenses.
Our shop offers wide assortment of the children's goods from Italy, France, Germany, Poland, Finland, Turkey, Russia.
INDUSTRY/MARKET ANALYSIS
Industry structure/attractiveness
As experts estimate the annual turnover of the Russian market of children's goods and services ranges between $ 7-8 billion and is growing 25% per year. A great part of this traffic is in production and realization of children's clothing. The volume of children's clothing market is estimated at more than $ 3 billion
The growth of children's products market occurs both by increasing the number of buyers, and by increasing the value of purchases – the average cost of one item of children's clothing increased in recent years by 50%. Parents spend over 10000 RUR a year buying children's clothes for each child. The main factors that increase the demand on children's clothes are: improvement of the welfare of the population; differentiation of goods in value and volume for different groups of consumers which helps to assign tasks of advertising, stimulate the use of new design, production technologies as well as new using high-tech fabrics.
Market Analysis
Even starting to think over the planning stages of business you should estimate the level of competition, which you will face, and identify ways of «victory among competitors».
In the face of strong competition sellers can attract customers mainly through low prices. You understand that in such conditions it is very difficult to organize a profitable business. In our case, we will be forced strong competition. That is why there is only one solution - to become dissimilar to other sellers in consumers’ mind. When buyer is faced to a number of virtually identical goods and sellers he chooses the best price. If we create a special view of ourselves, we will be able to establish a special price. The buyer won’t compare our price with the prices of other competitors.
Our peculiarities can be various:
Conclusion
The world practice shows that maintenance of a small business is significant in the economy of all countries, even developed, as it possesses peculiar advantages.
The benefits of small businesses include:
• rapid adaptation to local conditions;
• freedom of action of the small business;
• flexibility and speed in making and implementing decisions;
• relatively low cost of activities;
• great opportunity for individuals to realize their ideas or to demonstrate their abilities;
• lower demand in the initial capital and ability to introduce changes in goods and production process quickly in response to the demands of local markets;
• higher turnover of equity.
Future entrepreneur should be competent in the sphere of a favorable business. A clear analysis of his qualities, abilities and opportunities is needed to select a small business career. The entrepreneur should calculate the expected risks and their consequences, keep business secrets, possess all the information about their own small business activities, consumer products, customers, suppliers, competitors etc.
A scientifically developed business plan is a guide that helps a businessmen to find their way in business and withdraw great loss, to get a desired result.