Feasibility study for adidas clothing stores

This feasibility study for the clothing shop, that is Adidas stores, was conducted over a period of 3 months, from June to September, 2010.

The business would operate as a sport brand and located in the most famous business circle, Victoria square, as research and surveys conducted during the feasibility research period indicate that the sport brand and the site would be the most profitable way.

The goals of the clothing shop are varied, including satisfying the consumers’ need, making a profit and consolidate the status of Adidas. And the main mission of the clothing shop is to provide a place and service for local consumers to get high quality sport clothing and make their life more convenient.

The feasibility research report contains the 4P analysis, that is, the product, price, promotion, place are analyzed. The strength and competition of the clothing shop are also researched.

2.0 Products and Services

2.1 Products and services description

This clothing shop sells Adidas brand sports clothing, offers an excellent environment and service for consumers, and shows a kind of taste and experience an emotion. The aim of the clothing shop is to make it become a good place for leisure shopping.

2.2 Resources and technology

Clothing store is a demanding profession requires the size and grade of the industry, products and services, after all, it is a high consumption, the consumer must care the fully reflection of their consumption value. To achieve this, there is a very high demand on the resources of investors, and technology. Joining the brand make it access to sufficient resources, advanced equipment and technology, and importantly, on the other hand, it can avoid a lot of risks.

2.3 Future products and services plans

With the shop’s development and changes in the surrounding environment, the products and services will continue to improve, including more comprehensive new products, better quality and personalized service. The shop will continuously improve under the support of Adidas brand and its own efforts.

3.0 Project Site and Construction Conditions

3.1 Project site

The city is a popular one which hosts international and domestic sporting events, such as cricket, South Australia Golf championship, classic car race, bike race. The site is determined at Victoria Square, a famous commercial circle. A survey [1] conducted there indicates that people here are willing to buy the product of Adidas, and the percentage of items are shown in figure 1.

Figure 1 Market survey

3.2 Construction conditions

Economic conditions

Adelaide’s economy is mainly manufacturing, military and research. The city has large manufacturing, military and research area. Holden car, Mitsubishi Group has manufacturing plants in Adelaide, the city also has health equipment and electronic components plant. About half of the cars produced in Australia come from Adelaide [2] . Australia’s largest oil company and the famous brewery is located in Adelaide, its per capita economic growth is higher than the Australian average [3] . Adelaide is Australia’s major arsenal, 70% military industrial company in Australia is located in Adelaide, and its gross domestic product reaches 10 billion Australian dollars.

Natural conditions

Adelaide is a Mediterranean climate, warm and rainy in winter and drying in summer [4] .

Month

Jan

Feb

Mar

Apr

May

Jun

Jul

Aug

Sep

Oct

Nov

Dec

Average high temperature°C (°F)

27.8

(82)

28.4

(83.1)

25.4

(77.7)

22.0

(71.6)

18.7

(65.7)

15.8

(60.4)

15.0

(59)

16.0

(60.8)

18.1

(64.6)

20.9

(69.6)

23.7

(74.7)

26.0

(78.8)

Average low temperature °C (°F)

15.9

(60.6)

16.2

(61.2)

14.5

(58.1)

11.7

(53.1)

9.7

(49.5)

7.6

(45.7)

7.1

(44.8)

7.7

(45.9)

9.0

(48.2)

10.7

(51.3)

12.8

(55)

14.7

(58.5)

Precipitation mm (inch)

20.0

(0.787)

18.3

(0.72)

24.3

(0.957)

36.8

(1.449)

48.9

(1.925)

56.9

(2.24)

64.2

(2.528)

52.5

(2.067)

49.9

(1.965)

43.5

(1.713)

22.7

(0.894)

24.6

(0.969)

Figure 2 Average data of Adelaide airport

Traffic conditions

Adelaide is the important traffic intersection of Australia’s east-west and north-south direction. The road is always better than many other Australian cities. Adelaide’s with a name of “20-minute city” because the car can reach from the suburbs to the city center within 20 minutes [5] . Adelaide International Airport is Australia’s newest and most advanced airport.

3.3 Supplies

Consumption of major materials

According to the project scale, this project needs all kinds of garments, including T-shirts, jackets, shorts, pants, shoes, etc., and the annual consumption is shown in the following table.

No.

Material

Unit

Annual consumption

1

T-shirts

piece

30910

2

Jackets

piece

79080

3

Shorts

pair

20450

4

Pants

pair

54770

5

Shoes

pair

76920

Figure 3 Annual consumption of materials

(2) Sources of major materials

All kinds of raw and auxiliary materials required for the project are internal stock, and hence the supply is adequate.

(3) Quality requirment of major materials

All the materials needed in the shop is checked according the corresponding standard, and satisfies the need of consumers to assure the product quality.

3.4 Logistics

The company is equipped with sufficient storage space, which can be used to solve the storage needs of finished and packing materials [6] . Raw materials in warehouse are divided by batch, and establish a strict regime of materials distribution to prevent mixing batches. Transport system adopts advanced third party logistics, which is quick, convenient and cost-saving.

4.0 Investment Objectives and Tasks

4.1 Investment objective

Become a leading sports clothing brand in the region, and make it a fashion consumer sites. 3 years to recover the total investment cost, and gradually start making profits.

4.2 Investment tasks

(1) Stabilize capital, implement an ideal investment channels for investors and provide them with a stable and reasonable income.

(2) Successfully complete the construction and development of brand stores, and gradually make the capital investment to generate income.

(3) Use the existing sites to upgrade Adidas brand, increase brand awareness and customer amount to achieve mutually profit.

4.3 The key to success

(1) The good cooperation of investors and owners, and the best combination advantages of both resources.

(2) Sufficient market demand, active and effective campaign.

(3) The location of the grasp. Clothing store is in the address of beauty and in a business circle.

5.0 The Market Analysis

5.1 The market demand

Our consumer demand is still relatively ample. On the one hand, there are stable and old customers, on the other hand, there are beautiful natural and relatively stable business district.

(1) Stability of the old client resources. This part of the consumer is the natural client resources after the completion of the new brand stores. When they face more appeal, better products and services of the brand stores, they will continually become the loyal customers of the brand.

The residential area

Enterprises in the region

Schools in the region

In general, the target consumers are sufficient, but here there is a lack of brand appeal on the scale of the clothing store, we shop here just to fill this market gap.

5.2 Industry development trends

(1) The clothing market is growing rapidly [7] , and it has become a major trend of consumption, the market early training has ended.

(2) The taste of the consumer is becoming increasingly high. The culture charm is the charm of the market. Consumers are starting to cognitive clothing brand, clothing style and know how to enjoy the fun. The rapid development of sports clothing market is closely related to the natural sport interest of the consumer.

(3) Education level, family income and frequency of exercise show a significant positive correlation [8] .

(4) The competition within the industry and associated industries is increasingly intense. There are more and more clothing stores in the city. Meanwhile, other brands of sports clothing are all relevant alternatives.

5.3 Competition comparisons

(1) Indirect competition with the strong brand stores. Currently the city has more than 10 sports clothing stores, of which the largest competitor of Adidas, Nike, 4. Peripheral consumer source will be diverted by these indirect competitors.

(2) Direct competitors. Some of the other sports clothing in the region is the direct competitors. Their size is not too large, but they have some characteristics, price and quality are good. These stores still have a certain competition.

However, peer competition situation, mainly small-scale, has a certain personality clothing store in the region, is good for us. In contrast, our shop has a considerable advantage on brand appeal, management level, product and service quality, scale and finance.

The fashion and taste of the clothing shop determine its share of emotional consumption, and consumers are very concerned about the brand and grade factors. This can also explain the large number of consumers prefer to find clothing store downtown.

6.0 Promotion Strategy

6.1 Market strategy

Target market

The target market contains the region’s consumers in the business district, with monthly income of 1,000 $A. The majority are well-educated, and they pursuit fashion and taste, mainly youngster and the middle-aged.

Marketing planning

Utilize the brand and resources advantages, and establish rapidly the popularity and reputation of Adidas to solid the old consumer source, getting back the consumers attracted by strong brand stores and local specialty shops.

Although the Adidas brand is strong, this region is likely to have other strong brand clothing store in the future. Therefore, we must use all the opportunities and resources now, making a good service marketing and more personalized service, build our own brand to consolidate the customer loyalty.

6.2 Promotion

The most important thing is to make the shop known by the consumers nearby as quickly as possible.

(1) Advertising

For district residents, deliver fine single-page advertisement and small gifts, one-page form can also be made the form of discount vouchers.

(2) Event marketing

Hold student party and reading activities. Contact the University’s student union and several important regional organizations; hold a number of salon parties and school activities and this is helpful in raising quality to attract students and young consumers.

When the time is ripe, we can also organize an activity with “movement and life” as the theme of the essay writing.

(3) Service marketing

Besides brand identity, service for clothing is also important to consumers. To do this, more personalized service is needed. Establish membership card. Member’s name is printed on the card, such as bank card. Membership card discount rate was not high, such as 9.8 fold. However, on the one hand, it can give consumers a sense of respectability, and on the other hand, it is easy for attendant to call the consumers. Especially if consumers and other people are together, and the attendants can publicly call him (her) Mr. (Miss), they will feel they are respected and welcomed.

(4) Personalized service

Put some promotional materials in the table, and the content of which is about the knowledge and stories of the Adidas. On the one hand, it can enhance the taste and the atmosphere, and on the other hand, it can increase the favorable impression of consumers. For many consumers who come together, we can explain the brand with specialized person. If they are interested, you can introduce the brand name, the origin and other relevant knowledge to them.

7.0 Financial Plan

7.1 Financial overview

No.

Name

Amount ($A)

1

Rent

650,000 / year

2

Joining fees

200 00/ year

3

Decoration and reconstruction

60 000

4

Salaries

40,000 / month

5

Water and electricity

10,000 / month

6

Other costs

10,000 / month

7

Other charges

50 000

Figure 4 Financial overview

7.2 Device configuration

No.

Device type

Name

Quantity

Unit price

($A)

Total price

($A)

1

Business equipment

Container

2

1200

2400

2

TV

2

6000

12000

3

Computer

2

4000

8000

4

Sofa

3

5000

15000

5

Cash register

2

3000

6000

6

Office Equipment

Air conditioner

3

3000

9000

7

telephone

2

200

400

8

Fax machine

1

1500

1500

9

Printer

1

1500

1500

Total

18

55880

Figure 5 Device configuration expenditure