H6697 – INFORMATION ENTREPRENEURSHIP
Business Plan
PLUS LiFE
2011
By Group Trump:
Alexander Bernard Halim
G1001168K
Ho Lee Wen
G1001181E
Lee Ping Verena
G0901687K
So Jami Florence
G1001157D
Zhang Liming
G1002507C
1
Executive Summary
PLUS LiFe is a new company that aims to provide a one-stop online store for
plus-sizers from clothing to a lifestyle. PLUS LiFe website enables plus-sizers
to shop and buy quality and trendy apparels with matching accessories
anytime, anywhere, while receiving fashion and health tips. We will also be a
platform for local designers to showcase their designs under PLUS LiFe. The
company will be a partnership and managed by the five business owners Alexander Bernard Halim, Ho Lee Wen, Lee Ping Verena, So Jami Florence
and Zhang Liming.
Some 1.2 million Singaporeans made online purchases worth S$1.1 billion in
year 2010 and the number is expected to hit S$4.4 billion in 2015 according to
a survey by Paypal. Fashion remains the one of top products purchased
online accounting S$143 million (13%) of the total online purchases. Similar
to other developed countries, Singaporeans have grown bigger and fatter as
compared to two decades ago. 10% of Singaporeans are obese However,
plus-size apparels remain uncommon in Singapore and there are not many
physical and online shops that focus on plus-size apparels. There is only one
main competitor – Big AND Beautiful (BAB). Based on the current market
situation as well as the growing number of plus-sizers, there is definitely an
opportunity in the plus-size market.
PLUS LiFe website will be a one-stop retail platform for plus-sizers from
casual clothing, formal wear to a lifestyle. Our apparels will be from two
different sources – overseas suppliers and self-manufacture. Our main
apparels supply will be from China and we will also be working with a China
manufacturer to produce our own designs.
PLUS LiFe will be the fashion platform for local design students to showcase
their creative works and receive feedback and build up their design portfolio.
PLUS LiFe will market their designs under our designer collections. The
website will also provide our customers with the latest fashion news, tips on
how to dress, what type of clothes will best complement body shape, health
tips, etc.
The primary target market of PLUS LiFe will be plus-sizers who are conscious
with their image and want to look good. PLUS LiFe will translate the latest
trends from the catwalk, celebrities and streets into affordable quality stylish
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plus-size apparels. In the first two years, our concentration will be homebased (Singapore) and on the Malaysia market. PLUS LiFe wishes to expand
its marketing efforts to enter the ASEAN market from year three onwards
starting from Indonesia and eventually moving towards the Asian market. We
will also be launching our plus-size men’s collection in the fourth year.
However, because of the low barrier to the market, we will expedite its
anticipation to enter the ASEAN market if competition increases.
To achieve the expansion plan and fully exploit the market, PLUS LiFe is
seeking SGD $
400,000 as growth capital. Over the next 3 to 5 years,
PLUS LiFe would be able to generate significant earnings for its investors.
According to our estimate, PLUS LiFe is projecting a sales of SGD $
171637.28 in its first year and forecasting a yearly average growth of 35% for
the next five years. The average return of owners’ equity yearly is expected to
be 3.5. Overview figures are shown as below:
Total Revenue
$1,557,071.85
$1,600,000.00
$1,400,000.00
$1,080,292.50
$1,200,000.00
$1,000,000.00
$755,987.44
$800,000.00
$600,000.00
$400,000.00
$431,329.69
$216,125.00
$200,000.00
$0.00
YE00
YE01
YE02
YE03
YE04
Figure 1- Total Revenue
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$1,378,879.75
$1,400,000.00
$1,200,000.00
$937,997.04
$1,000,000.00
$800,000.00
$640,998.50
$600,000.00
$358,445.50
$400,000.00
$171,637.28
$200,000.00
$0.00
YE00
YE01
YE02
YE03
YE04
Figure 2- Profit after Tax
2
Company Summary
PLUS LiFe is an upmarket online store that will open for business in May.
PLUS LiFe aims to provide a one-stop online store for plus-sizers from
clothing to a lifestyle. The PLUS LiFe website enables plus-sizers to shop and
buy quality and trendy apparels with matching accessories anytime,
anywhere, while receiving fashion and health tips. PLUS LiFe will also be a
platform for local designers to showcase their designs under PLUS LiFe
2.1
Company ownership
Plus LiFe is organized as a partnership among five persons, namely,
Alexander Bernard Halim, Ho Lee Wen, Lee Ping Verena, So Jami Florence
and Zhang Liming. Alexander will manage the website, Lee Wen takes care of
finances, Jami will handle all administrative and managerial duties while
Liming will focus on our suppliers and manufacturers in China. Verena acts as
a silent partner.
2.2
Start-up Summary
Plus LiFe start-up costs are as follows: The five partners will come up with an
initial capital of $x. Plus LiFe will start business with three months’ stock of
clothes and accessories. As Plus LiFe is an online business, the majority of
the assets will be in inventory.
4
Insert Start Up costs OR Balance Sheet at start-up point
The purpose of this business plan is to raise SGD$400,000 as growth capital.
The funds are needed for the plans to expand the market to ASEAN
countries, followed by other Asian countries within the next 5 years. Plus LIFE
also has plans to launch plus-size men’s apparel by the fourth year. The funds
will primarily be used in engaging local consultancy firms to conduct market
research and on marketing efforts. The usage breakdown of the growth
capital is as follows:
Insert a table of expenditures for $400,000
2.3
Company Locations and Facilities
Plus LiFe’s office will be located at Blk 306A Punggol Drive #12-001
Singapore 560306. This is currently under Verena’s personal ownership.
Approved by the Housing Development Board’s Home Office Scheme, the
90m2 flat will be used as an office, as well as storage for PLUS LiFe’s
inventory.
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Products
PLUS LiFe will mainly operate on women’s clothing selling, and the products
are planned to include formal wear and casual clothes (see list below). We will
strive to provide apparel with a good combine of classical design and fashion
character. The source providers will be from mainland China, and we will be
purchasing clothes directly from local manufacturers and wholesalers, and in
a variety styles and colors. Apart from apparel which will account the greatest
percentage of our business, we will also manage clothing accessories,
including hats, scarf and waistband.
Product regular adjustment will base on customer feedback, suggestions, and
sales reports, in order to build a constantly popular selection.
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3.1
Product Description
PLUS LiFe will provide clients with wide types of clothes that fall within our
mission statement. Our goal is to establish a selection which caters for plussizers’ demand, and most importantly, delivering specialised fashionable
design to our clients. Some of the products we will carry are listed below:
3.2
Products
Description
Dress
Evening dress/Casual
Shorts
Knee Length/Short/Denim
Shirts
Mini/Pencil/Mid Calf/Knee
Length/Long
Long Pants/ Jeans
Skinny/ Straight
Tops
Blouses/Casual/Tee Long
Sleeve/Tee Short
Sleeve/Cardigans
Hats
A variety of styles and colors
Scarf
A variety of styles and colors
Waistband
A variety of styles and colors
Competitive Comparison
Plus LiFe has a number of advantages that will allow us to build our brand
identity and a loyal customer base.

We will be among the list of the first few online shopping providers for
plus-sizers in Singapore.

The PLUS LiFe membership scheme which includes flexible discount,
incentive gift, etc., will be built to cultivate customer loyalty.
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
We will function as a platform for local designers to showcase their
designs.

We will also release the latest fashion information and dressing tips to our
clients.

We will maintain a detailed record on each customer, logging addresses,
their purchases, size for customer follow-up and in-house promotional
purposes.
3.3
Sales Literature
PLUS LiFe will employ a series of advertising and sales program to enhance
Web traffic, thus increasing brand identity.

2,000 to 3,000 delicate hand fan with PLUS LiFe logo and brief
introduction will be distributed throughout major MRT and bus exchange in
Singapore.

Exhibition boards in 3 to 5 main MRT stations will be rent to advertise our
Plus LiFe business.

PLUS LiFe design competition will be promoted around Cavalry Italian
Design School, Raffles Design Institute and other renowned design
schools in Singapore, to attract attention from these future fashion
designers.

Membership scheme will entitle the customer to a certain amount of
discount on the sixth purchase after five purchases.
3.4
Sourcing
Our clothing source will mainly be acquired from South China, considering the
relatively low production cost and the diversified product types there.

We will hire a local based in Guang Dong province in China, as Guang
Dong is regarded as “the world factory” and has the lowest price
comparing with other parts of China. This person will be in charge of
routine contacts issues with the local manufacturers and other suppliers
for us.
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
Most of our products will be purchased directly from the manufacturers to
make sure a competitive price. And for some products which may be
difficult to buy from the factory, we will contact with regional wholesalers
and try to build a long partnership. We will place our monthly orders with
them and review new products regularly.

For the purchased products, we will work directly with the manufacturer
and sales representatives to utilize product catalogs and tag PLUS LiFe
brand.

We will also work to solidify our relationships with the vendors so that we
may achieve decreased cost of goods.

To promote the original works from Singapore local designers, some well
design standing out from the PLUS LiFe design competition will be put into
production line, to gradually form our unique collection.
Some of the major wholesale clothing centres in Guang Dong Province are
listed below:
The Baima Clothing Center is one of the largest clothing wholesalers in
Guang Dong Province, which was founded in 1991. It began the apparel
business in 1993. Baima has united regional wholesalers under one roof,
more than 2,000 manufactures from Pearl river delta region and Yangtze river
delta are located here. Currently, its market has crossed five continents
including North Europe, Middle East, Southeast Asia, North Africa and South
America,
and
the
average
annual
deal
values
CNY3
billon
(http://www.baima.com/).
The Guang Dong clothing Wholesale Network is one of the earliest entrants in
this industry. It mainly operates women apparel with Japanese and South
Korean Design. From 2003, it focused its business on online wholesale. The
product update frequency of it is high, and for each week, new design will
coming into its sale collection. This will benefit our selection variety
(http://www.cicicam.com/).
We believe we can gain an edge through these marketing programs and
strategic alliances purchase.
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3.5
Future Products
We are planning to launch men’s collection in the fourth year, which will
Include tops, pants, suits etc., to achieve and exceed our sales and
profitability goals. Besides, we will gradually add local student designers’ work
to the product line to create our own personal in-house label. And products
will also be expanded according to customers’ suggestions and feedback.
4
Market Analysis Summary
The primary target customer of Plus LiFe will be plus-size women in
Singapore, and then in the following years, as male’s collection be added, our
target will incorporate men. Meanwhile, the market region will expand into
Malaysia, Indonesia and even other ASEAN countries, to increase our
customer base if the prospect will be good.
4.1
Market Segmentation
Plus-Size Women (age 18-25): This group is the youngest part in our
customer pool. It will be constituted mainly by college students. The latest
trends from the fashion industry will regularly be practising into this stylish
plus-size line, considering their strong desire to follow the fashion.
Plus-Size Women (age 26-35): This community of women probably have
entered into the career for several years, so this product line will concentrate
on office dress, since plus size formal wear could hardly be found in the
current market.
Plus-Size Women (age 36-45): As women in this age group are very likely to
gain weight and become a plus-sizer, this group will be our primary market
focus. Also considering their relatively larger purchasing power, comparing to
the former two groups, this collection line will carry a combination of smart
casual and formal office dress.
Because Plus LiFe offers a variety of well-designed apparel and clothing
accessories, along with plus size lifestyle information in our website, we think
that we will be able to create a recognized brand in the near future.
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Market Segmentation
Age 26-35
Age 36-45
Age 18-25
4.2
Target Market Segment Strategy
The goal of Plus LiFe is to serve the plus-size community that have difficulty
finding clothes suitable for them. Currently, plus-size apparel is not the main
concern for most designers and manufacturers, which lead to this is still an
under-tapped market area.
4.2.1 Market Needs
T
There are several important needs in the plus-size wear business that are
being either underserved or not met at all. Plus LiFe plans to meet and
service those needs.

Generally, there is a size segment missing in most brands, most of them are
seldom to provide a large assortment of sizes to accommodate the various
body shapes. Consequently, it is rather difficult for plus-sizers to shop their
clothes. And many plus-sizers have to approach to tailors for fitted clothes.

Even being provided, most plus size products in the market are lacking of
fashion design.

Plus-size customer profile has been rarely concerned, and little amount of
specialised deign for this group of people.
Our focus and attention will be concentrated to address all these needs, and
explore this potential market.
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4.2.2 Market Trends
Today, many people like shopping online for its convenience, according to a
survey (Paypal), Singaporean had spent S$1.1 billion for online shopping, of
this a large proportion goes to fashion. And woman is the majority of fashion
buyers, “within a decade, the companies that do the best job of marketing to
women will dominate every significant product and service category" (Faith
Popcorn), which has well reflect the bloom trend of this business sector.
Apart from providing our clients with clothing, Plus Life also intends to use its
website to heighten the awareness of the healthy living to the clients and
promote the beauty of plus life.
4.2.3 Industry Analysis
Economic, Cultural and Environmental Conditions
Holiday shopping, competitor marketing, the economy and the strength of the
dollar can all affect the performance of PLUS LiFe. On a macro-economic
level, consumer confidence, interest rates and inflation rates all have an
effect. Rising unemployment, political concerns and deflation also pose risks.
Positive Factors:
Clothing Industry
Impact on PLUS
LiFe
Very low interest rates
Cost of financing
low
Easy availability of consumer credit
Higher ticket sizes
on credit card
purchases
Relatively low unemployment, and very
low inflation
Stable employees
& businesses
The appreciation of Singapore Dollar
against RMB
Encourage import
11
Negative Factors:
4.3
Clothing Industry
Impact on PLUS
LiFe
Weakening consumer confidence (still
influenced by global recession &
uncertainty)
Decreased sales
Slowly increasing unemployment
Value and sale
shopping
The appreciation of RMB
Discourage export
Main Competitors
Plus Life has one main on-line competitor in Singapore.
Big And Beautiful (B.A.B.) is a renowned retailer specialised in operating
plus-size women dress, which started in 2008 in Singapore. Its physical shop
located in New Bridge Road, and to meet its increasing customer demand, it
has launched online access. Its products comprise clothes, shoes and
accessories which range from a variety of types. And apart from selling
clothes, B.A.B also feature and share interesting articles, like where to shop,
where to have fun, and how to, etc. to make the site informative.
In 2010, B.A.B held the campaign “Celebrating Curves” which is a 6 months
march, filled with events, workshops, fashion shows, photo exhibitions to
promote the beauty of plus-size life. And in 2011, it has created a calendar
which features curvaceous ladies artistically nude also to declare beauty of
plus size style. Its marketing strategy also includes funding Singapore’s
inaugural plus size beauty pageant which called “Miss & Ms Amazing Beauty
Pageant”.
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5
Strategy and Implementation Summary
For an on-line business, having a good strategy and implementation is crucial
to its success. Plus Life’s business is to be the on-line store for plus sizers
which is a relatively unserved and undertapped market.
Our vision is to
steadily increase our market share and expand overseas with a focus on local
designer wear.
5.1
Competitive Edge

Our on-line store will be the on-line plus size store that offers the
convenience of hassle-free shopping in the latest fashion styles from our
local designers
5.2

The Plus Life membership scheme will entitle members to a loyalty of 15%
on the sixth purchase

Plus size will keep a personal record of your purchase and will be able to
make recommendations on your next visit
Marketing Strategy
Plus Life’s will be marketed as the one-stop website for plus-sizers for trendy
designer clothing. It will focus on the uniqueness of its collection, which is
based on local designers. For plus sizers, the convenience of shopping online for something that fits them easily, in latest trends, is no longer a dream, it
is a reality.
5.2.1 Pricing Strategy
The pricing strategy in Plus Size is
(Can’t really articulate what is our pricing strategy??)
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5.2.2 Promotion Strategy
There will be an initial soft launch of the website in May, followed by a major
launch a month later in-conjunction with the Great Singapore Sale.

A fashion show showcasing the “launch series” for plus sizes on the
catwalk at the Singapore Fashion Week.

Ms Haryani, a famous Singapore Celebrity will don on our classic
collection. She has also agreed to be our spokesperson and model for our
line of plus size apparel.
5.2.3 Distribution Strategy
The on-line web-site will be the “shop front” for our on-line customers. The
catalogue of the latest designs will be easily available through the on-line
store for ordering at customer’s convenience.
Customer’s order will be
delivered within 3 working days.
We have also spoken to the chain of
seven-eleven stores in Singapore, who has agreed to be our point of
distribution, thus customers can also have the option of picking up their
products at these convenient pick-up points in the neighbourhood.
5.2.4 Marketing Programmes
Our marketing programmes include having:

Sponsorship of Ms Haryani’s cloths for her TV show series, thus creating
awareness of our unique collection

Quarterly fashion shows at the Art’s house, showing casing our local
designers works using plus size models.

Participating in the annual “Singapore Fashion Week”

Reaching out to our customers through social media platforms such as
Facebook, Forums

Offering one-time discount coupons to generate traffic to website

Local fashion competitions to promote ourselves as a platform for local
designers to showcase their products
5.2.5 Positioning Statement
Plus Life apparels showcases the beauty of the full-bodied women in the
latest fashion styles, enhancing a woman’s femininity.
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5.3
Sales Strategy
A simple in-house CRM system has been designed to track each purchase of
our customer. Based on this, a profile of the customer’s interest and style is
captured and maintained as our database. The merchandiser is then able to
retrieve and analyse the information and focus on the customer’s
requirements and the popular buys.
For our first-time customers, they will be offered a 7-day return/exchange
policy just like that of a physical store, allowing them to try our products with
ease of mind. For our loyal customers who already are familiar with our
quality and design, they are offered the membership programme on their sixth
purchase. This sixth purchase policy can be shortened to only three
purchases if they introduce another customer who buys from our on-line store.
5.3.1 Sales Forecast
The forecasted sales for Plus Life is highlighted in the chart below.
expect sales to take off ___ after launching our on-line store in May.
We
Growth is expected to increase by __________
(Anlaysis from Chart)
6
Web Plan Summary
As a start up in the e-commerce market, Plus Life wants to maximize the
investment on technology. We don’t want to spend too much on technology to
sell our product, and the important thing is it needs to be scalable, so not only
doesn’t need a big initial investment, but also align with the growth projection
of Plus Life.
To achieve the web technology objective, we decided to go with an open
source solution, and finding a web hosting partner to host it outside. We
choose Magento as our web site solution, and we host in on Magento Go.
Magento is an open source ecommerce web application launched on March
31, 2008. It was created by Varien, building on components of the Zend
Framework.
15
Magento Go is a turnkey service for building and running an online store. No
hardware, software or coding required. Magento Go offers several different
hosting plans, so it will suit our needs from a start up until our projected
growth for the next 5 years.
Using this technology & hosting services, there will be no initial investment in
hardware, software, and no need to hire a programmer.
7
Management Summary
As Plus Size is a start-up company, the initial composition of the company will
be small. With the limited resources, all works will be delegated amongst the
five partners according to their experiences and expertise.
7.1
The profile of each of the partners is indicated below:
(have put some profile in for you guys... you can take a look and improve or
amend)
Alexander Bernard Halim
Mr Halim is a web-designer for the past 7 years. He has extensive training in
computer graphic packages and is well versed in programming and web
development languages and technologies. He has helped created websites
for on-line retailing for the past 3 years.
Ho Lee Wen
Ms Ho is a successful financial controller who has served on several planning
and policy-making committees. Her experience is in directing and coordinating financial planning and budget management. Her past portfolio also
includes preparation of financial outlooks and forecasts, establishing long and
short-term budget policies and procedures.
Lee Ping Verena
Ms Lee has been directing and managing her own business for the last five
years. Her ability to strategise effectively to chart business growth is the
driving force behind her successful business.
So Jami Florence
16
Ms So was the regional manager of a award-winning retail clothes chain in
Singapore. She brings with her experience in corporate and retail marketing
in the local context. She was involved in developing and maintaining highly
successful marketing campaigns that translated to steep increases in sale.
Zhang Liming
Ms Zhang is a knowledgeable top notch designer with a local boutique for the
last three years. She also has vast experience in merchandising and stock
management.
Her experience and knowledge in China’s clothing
manufacturing and production industry proves to be a vital asset for Plus Life.
7.2
Organisation structure and Management Team
With only a start-up of five personnel, the organisation structure will be simple.
Verena Lee will act as General Manager and will be responsible for the overall
operational aspect of the company.
Lee Wen will manage and make
decisions on financial matters at PLUS Life. Jami will be responsible for all
administrative, marketing and promotional functions. Liming will handle the
inventory and supplies, ensuring sufficient stocks and taking care of our
suppliers and manufacturers in China.
Alexander, our web expert will take
care or the day-to-day management and design of the website.
7.3
Personnel Plan
Year 1
Year 2
Year 3
Alexander Bernard Halim
Ho Lee Wen
Verena Lee Ping
So Jami Florence
Zhang Liming
Total Payroll
17
How much will we be paid ??
8
Financial Plan
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