Executive Summary Khimar Wear provides modest clothing for Muslim women athletes and sports persons. It has made a breakthrough in a very niche market and offered a unique solution to the problem of Muslim women desirous of participating in sporting activities.
Our clients are women from all sections of society who want to participate in outdoor and sporting activities and at the same time maintain their cultural and ethnic identities and also their modesty in accordance with the tenets of Islam. There have been incidents of women being forbidden to use public sporting facilities due to their costumes that covered their bodies entirely. Khimar Wear offers a solution for such women by introducing a range of products that will help avert such situations in future.
Khimar Wear observes the latest technological advancements and labour rules in its manufacturing units. It uses light-weight, stretchable and durable nylon, soft Pro-shell, Gore-Tex and Lycra as material for its products. These allow garments to be made in layers which remain ultra-light weight and very comfortable. The products are designed innovatively that allow flaps and zippers to be added at strategic positions that cannot be seen by others yet allow free breathing of the material and keep the body insulated. Microbiological activities are minimized and add a fresh and healthy feel to the garments. These are quick-drying and extremely elastic to allow for comfortable and free movements and are easy to wear and remove.
Khimar Wear products range from swimwear, snow sports garments, boxing outfits, tennis, badminton, aerobics and athletic wear. They come in a wide range of colours and sizes and are ensured for safe hazard-free wear by children and adults.
The market is available around the world, especially with the Islamic women coming to the fore and asserting their right to participate in all public activities. Khimar Wear targets the growing markets in the Middle East, Asia, Australia and Europe. Our research has shown that more than 50% women in Islamic nations would prefer to join sporting activities if they were assured of a decent sports garment that would help them preserve their modesty and their cultural values.
Khimar Wear exhibit exemplary industry standards and spends a significant portion of our investment towards research and training of the workers and staff. Our sales projections for the coming fiscal year show that sales will amount to £30m. The salary for the workers and management staff will amount to £1.2 m.
Table of Contents of Business Report
A day in the life of Khimar Wear
Trends and Sales
A day in the life of Khimar Wear
Khimar Wear is a niche product and is creating quite a space for itself in the consumer market. Khimar wear products will be available in all sporting goods retail stores as well as in shopping malls and privately owned boutiques all over the world. We envisage profitability, growth and a good market share in the coming months. It will be an alternative to products manufactured by established brands like Nike and Adidas.
This is a typical day in the life of a Khimar Wear brand manager.
8:00 am: News briefing for advertisements along with advertising agencies.
10:00 am: Addressing concerns from retail outlet owners and making corporate communications assuring consumers of the high quality standards that are being maintained in the manufacturing process.
12:00 pm: Assuring corporate associates of Khimar Wear being an asset in terms of profitability and value of the brand.
1:00 pm: Lunch with Operations Manager and get a pulse of the business.
2:30 pm: Housekeeping. Talking to marketing officers, manufacturing workers, sales officers, promotional agents and taking stock of inventory.
4:30 pm: Visiting retails stores and connecting customers at different Khimar Wear outlet locations.
5:30 pm: Speaking to sponsors and convincing them of the newer products that are being manufactured to keep up with demands of the market.
6:00 pm: Reporting to headquarters and updating senior management of the day's proceedings.
The Common Wealth Games are round the corner. There are several Islamic nations that will participate in the Common Wealth Games being held in New Delhi, India, this October. However, the Islamic nations have few women representatives. One of the reasons is that Islamic women do not have the proper sportswear that will enable them to participate in the games and maintain their ethnic and cultural norms.
Khimar Wear has come up with exciting new sports gear for women that ensures comfort, fashion and value for money. There is a whole new range of styles, colour, sizes, fabric and designs to suit the individual needs of the customers. The demand for Khimar Wear products is increasing manifold as more and more women realize the exclusiveness of the products, range, durability and brand value of Khimar Wear.
Khimar Wear has reached out to customers across the globe and has made purchasing easier by opening e-stores for online purchase and facilitates order placing. The online transactions alone, on an annual basis are estimated to be £10m catering to customers in the Middle East and Asian Islamic countries. New research shows that there will be a substantial hike in the sales of Khimar Wear products during the Common Wealth Games 2010. Therefore, great attention has been paid to manufacturing products that offer a good mix of sports gear.
World famous lawn tennis champion, Sania Mirza and famous boxer, Laila Ali, have been chosen to be the brand ambassadors for Khimar Wear products. They maintain that comfort is as much a part of being a sports woman as appearance is and prefer to wear Khimar Wear for their ultra light wear, quick drying, and super elasticity of the materials that go into making Khimar Wear sports clothes.
Australia has a huge market for business buyers as well as buyers of consumer products. Even though the consumers far outnumber the business buyers, the volume of sales in the business market is greater than that of the consumer market. Since making any kind of purchase involves making a decision by the customer, the product should be marketed in a way that the customer can make a positive and quick decision. In order to introduce a new and innovative product one needs to study and analyze the behaviour of the consumer.
Khimar Wear understands the need for Muslim women to work out and participate freely in sporting activities as alternative to sedentary pursuits like home-making and reinforcing their femininity and ladylike behaviour. A sedentary lifestyle can lead to health problems like increased chances of coronary diseases, diabetes, obesity, high blood pressure, etc. The general belief that Islam forbids women from participating in sports is not entirely correct. It is recommended in Islam that women should not participate in mixed gender sports and must cover their bodies appropriately while engaging in public sporting activities.
The famous swimsuit brand Burqini designed by Aheda Zanetti, came into being as she understood the need for women to get healthy exercise and at the same time maintain their modesty. She was able to make a niche in the market by exploiting this need and filling the gap. Khimar Wear specializes in all sports dresses for Islamic women. All sporting dresses follow the Islamic prescription of covering their arms, legs and head. Like Shelina Zahra Janmohamed has mentioned in the prologue of her book, Love in a Headscarf, Muslim women don't need to "fit into other people's boxes" (2009). Khimar Wear provides women this option of being themselves and deciding to follow their hearts and remain true to their ethnicity.
Sporting activities, physical exercise and following health routines to maintain good health is becoming very popular and is a necessity in coping with the stresses of our hectic and fast-paced world. Sports equipment and sports costumes manufacturers have responded positively to this increasing area of consumer demand and come up with various innovative ideas and products.
Sports wear needs to address a few key areas such as comfort, stretch ability, material that allows the skin to breathe, sweat absorbent and allow heat to escape from the body in a regulated manner. In order to achieve all of these people usually need to wear multi-layered clothing which can be cumbersome and restricting.
Khimar Wear takes all of this into consideration and has come up with a unique brand of sportswear for women, keeping Muslim women in focus. The vision is to help Islamic women come out of their sedentary lifestyles and enjoy the benefits of sports and physical activities. The advantage is twofold:
It will encourage Muslim women to participate in sports and maintain their modesty
It will help the sporting world to tap into a potential source of talent
The purpose of this report is to bring to the notice of investors and stake holders the uniqueness and marketability of Khimar Wear products. Khimar Wear pays particular attention to the quality of products, reasonable pricing, advertising, and bringing a change in the lifestyle of a very important section of global population. It also strives to break down gender bias in sports and affords the opportunity for all women to buy these attractive sports clothing and feel drawn towards sporting activities.
Overview of the Sports Garments Industry:
The global sports garments industry has witnessed significant changes in the past several years. The garment manufacturing industry in general and the sports clothes manufactures like Nike, Speedo, Adidas, etc. Have a formal presence in developing countries as well. Since the market has expanded these companies are constantly on the lookout for cheaper sources of raw material and manufacturing capabilities. The sports garments supply is also increasing globally and flexible export policies and legislation has made it possible for more new ventures from developing countries to establish their brands in the global market.
Due to advancement in fabric technology and the innovations in the sports wear industry Muslim women can now participate in full time sporting careers and amateurs enthusiastic about sports can also participate in sporting activities without fear of fatwas and public ridicule. In recent times sports clothes made from high-tech fabrics such as lightweight lycra, nylon and soft shells has become popular as they help to keep out moisture, provide insulation and are good for durability.
Trends and Sales in Sports Wear Industry
The global market for garments industry in general has shrunk at around 1.8% (Just-Style 2010) due to global meltdown and financial crisis in the developed countries. This has impacted the sportswear industry as well. Though, the recent FIFA World Cup championships and the coming Common Wealth Games have reversed the ominous trends.
China continues to expand its sports clothing exports in spite of imposition of export quotas by Europe and America. China has broken into the Asian and Australian markets and continues to lead in sports garment and sports equipment industry.
Developing countries, particularly those in Asia, are expanding their manufacturing and marketing capabilities due to low cost of production. Countries like India, Bangladesh and Vietnam are making their presence felt in the sports garment industry.
Countries like Turkey and Brazil are emerging as potential investors and market for the sports garment industry.
As this study reveals that in future, the cost of production, tariff preferences, availability of raw material, and standard of labour and political and economic stability will be the major factors that will affect the sports garments industry. An increasing awareness and inclusion of women in the sporting arena will increase the demand for fashion in sports garments and also be responsible for the growth of this industry.
Infrastructure for manufacturing Khimar Wear products is in place.
Multiple locations and easily available outlets is suitable for capturing markets.
Very focussed and devoted management and staff/ workers.
Well rounded and organized business venture.
Lack of awareness and advertisement amongst prospective customers.
New to the industry and therefore, lacking in experience in sales and marketing practices.
Sports garment industry is poised for rapid growth particularly in Middle Eastern countries and Australia.
Potential to diversify into fashion clothing and sports equipment industry.
Global sporting events like the Common Wealth Games, Olympic Games offer huge potentials for an expanding market.
Economic downturn in developed and developing countries may temporarily reduce the buying capabilities of customers.
Major players like Nike and Speedo may enter the targeted area for Khimar Wear.
Porter's Analysis of Khimar Wear
In this project, Porter's five forces analysis has been applied to Khimar Wear for being a new venture. The results of the analysis have been discussed below:
Potential Rivals: Competition is cut-throat amongst a few companies that focus in manufacturing and marketing sportswear for women. The leading brands in the industry at the present moment are Burqini and Mycozies.
Competitive Analysis: Direct & Indirect competitors; assessment of competitive advantage; strategy canvas- factors of competition must be clear & level of offering justified; factors of competition to be consistent with business opportunity in day in life- focus of value canvas one axis is offering (high-low) and the other factors of competition.
Market analysis- target market description; target market size
It is crucial that your business plan states your business concept and value proposition. Since this part of the business plan follows the executive summary and company history, readers already should have a general idea of your company. The business concept, however, comprises your vision of the company, explaining the value your product or service will bring to the customer, why you are especially qualified to offer it, as well describing your offering's uniqueness and growth potential.
This in turn enables you, as well as interested parties and potential investors to research and analyze the concept for feasibility, both from a market and financial perspective.
The Feasibility Test
Think of a feasibility test as a reality check for your big idea. According to Entrepreneurship For Dummies by Kathleen Allen, a feasibility test weighs the validity of your business concept by examining four points:
The product your firm will offer
The customer you will target
Your value proposition
How you will get the product to its intended users
By this stage you should have a firm grasp on what product or service you intend to offer, as well as who you believe will be your primary customer. The final item requires weighing various distribution channels, but, again, should be answerable with a little leg work.
The Value Proposition
In essence, your value proposition is what makes customers choose you, instead of the competition. It's part marketing, part operations and part strategy.
On a subconscious level, customers will compare the value proposition of your company against those of your competitors when deciding where to take their business. With that in mind, a few things to remember when writing your value proposition:
Keep it short and uncluttered. Your value proposition explains why customers should buy from you. If you can't sum it up in 10 words or less, chances are you won't be able to execute it, either.
Be precise. Your customers have specific needs; your value proposition should offer targeted solutions
This is about your customer, not you. Your value proposition should discuss only what matters to your customers and the value you can bring to them.
Value comes in numerous forms. Money, time, convenience and superior service are a few of the ways you can help deliver value to your customers.
The last part of the business concept is how you will deliver your product to your customers. There are several factors to consider when plotting your distribution strategy:
Will you set up a brick-and-mortar shop or office, sell online or both?
What unique obstacles exist for your company in these two different channels?
If your company sells a product, will you have the space to keep enough inventory on hand, or will customers have to agree to waiting periods?
Can you strike exclusive deals with any particular distributor or retailer? Do your competitors have any such deals that hinder your operation?
Remember, vision is important if your business is going to grow. The more focused your business concept is, the greater the likelihood that you'll attract investors and customers.
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Technical feasibility- is the innovation technically feasible; cost of dev must be identified; IP issues like patents etc- protect IP
What is a Technical Feasibility Study?
The Technical Feasibility Study assesses the details of how you will deliver a product or service (i.e., materials, labor, transportation, where your business will be located, technology needed, etc.). Think of the technical feasibility study as the logistical or tactical plan of how your business will produce, store, deliver, and track its products or services.
A technical feasibility study is an excellent tool for trouble-shooting and long-term planning. In some regards it serves as a flow chart of how your products and services evolve and move through your business to physically reach your market.
The Technical Feasibility Study Must Support Your Financial Information
Do not make the mistake of trying to entice investors with your staggering growth projections and potential returns on their investment that only includes income (revenue) to the business. With any increase in revenue there is always an increase in expenses. Expenses for technical requirements (i.e., materials and labor) should be noted in the technical feasibility study.
You should also not strictly rely on feasibility study conclusions to impress an investor. An experienced investor or lending institution will read your entire report and come to their own conclusions. Therefore, it is critical that the technical and financial data in your study reconcile. If other parts of your feasibility study shows growth, you will also have to project labor and other costs and the technical ability to support that growth.
The technical component serves as the written explanation of financial data because if offers you a place to include detailed information about why an expense has been projected high or low, or why it is even necessary. It demonstrates to potential investors and lenders (and in some cases, potential clients) that you have thought about the long-term needs your business will have as it grows.
Preparing an Outline for Writing Your Technical Feasibility Study
The order that you present technical information is not as important as making sure you have all the components to show how you can run your business.
You do not have to include specific financial information in the technical portion of your feasibility study, but all information in this component must support your financial data represented elsewhere. Basic things that most businesses need to include in their technical feasibility study include:
Transportation or Shipping
Calculating Material Requirements
In this section you list the materials you need to produce a product or service, and where you will get those materials. Include information such as if volume discounts will be available as your business grows, or if you ever plan to manufacture your own parts at some point in time.
Things to include in your list of materials:
Parts needed to produce a product,
Supplies (glue, nails, etc.), and
Other materials that are involved in producing or manufacturing your product.
You do not need to include actual financial data in this portion of the study but financial data supporting your narrative assessment should be included in a separate spreadsheet as an attachment.
Marketing Plan- sales strategy & cost as in financial plan; pricing plan, advertizing and promotional activities- how will product benefit community
Management feasibility- Type of organization you are proposing; legal structure & management resources; internal management and team capability; HR needs; external resources
Khimar Wear Private Limited
Manufacturer, Distributor and Whole Sales
Sportswear for Muslim women
Khimar Swimwear, Khimar Snow Sportswear, Khimar Tennis
Number of Employees:
5-10 staff, 50 workers
Sydney / Australia
Financial Feasibility- funding requirements; detailed financial statements. When will this generate profit
Exit/ growth strategy- for existing company's stages of potential growth; new products etc. For new ventures- additional investment and break even -profit generating stage
Conclusion Link back Day in the Life & reinforce USP; how and degree of value add to org & investors