Market Analysis
Target Market
At the moment, the clothing that our company is selling is mainly based towards teenage girls
and women between the ages of 15 to probably 40. We do not have any specific race that we are
selling towards, all though our clothing may not be accepted by some religions of other countries
where skin is not allowed to be shown. Our clothes are not too provocative; we keep our
products classy and elegant.
Target Market Strategy
We will focus our clothing for the time being towards women and teens to show them that
quality clothing can be affordable. We will put advertisements in places where women gather
informing them of our new store and what we are offering for them.
Market Needs
The fashion industry is offering great quality and well put together clothing to women at
increasingly expensive prices. These prices need to go down because only the wealthy can afford
them. At Lovely, we will:
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Maintain affordable prices on good quality clothing and apparel.
Offer deals on our already low prices
Offer these classy and affordable clothing to all sizes.
Ask the people what they think so that they have a say in our company and can provide
us with information on what they would like to see from us.
Market Trends
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The fashion industry is constantly changing due to the change of seasons. New clothing is
coming out everyday. At Lovely, we will:
Keep our clothes up to date with the latest styles.
Purchase clothes that look like what you see in magazines, but sell them at affordable
prices.
Ask the people what they want in order to keep them happy.
Maintain prices that are acceptable.
Industry Analysis
Women’s and teenage girl’s clothing are sold in a variety of places. If you walk through a mall
almost every other store has something to offer.
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Small Stores and Businesses: Small stores such as Charlotte Russe and Forever 21 have
clothes that are similar to what my company will be selling at decent prices. They are not
expensive clothes, and tend to usually be affordable.
Large Stores and Companies: Stores such as Macy’s and Nordstrom sell great quality
clothing for women and girls, but their prices are extremely high and not everyone can
afford them.
Competitors
Because my company is an affordable company with quality clothing my main competitors will
be stores such as Charlotte Russe, Forever 21, and WetSeal. Like mine, all of these companies
sell clothing at pretty decent prices.
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“Charlotte Russe is a growing, mall-based specialty retailer of fashionable, value-priced
apparel and accessories. We are focused on providing exciting, fashion-forward
merchandise that appeals to customers across age and socioeconomic boundaries, with a
core emphasis on the lifestyle trends of young women in their teens and twenties.”
(CharlotteRusse.com)
Forever 21- “Celebrated by many style conscious and trend-savvy shoppers, Forever 21
has quickly become the source for the most current fashions at the greatest value. Forever
21 is growing quickly, featuring new and exciting store environments, a constant flow of
fun and creative clothing designs and the accessories to make your look come together at
the right price. A phenomenon in the fashion world, Forever 21 provides shoppers with
an unprecedented selection of today's fashions, always changing and always in style.”
(Forever 21)
Wet Seal- “The Wet Seal, Inc. is a leading specialty retailer of fashionable and
contemporary apparel and accessory items. As of December 31, 2011, the Company
operated a total of 559 stores in 47 states and Puerto Rico, including 473 Wet Seal
stores.” (WetSeal.com)
SWOT Analysis
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Strengths: Lovely offers fashionable clothing to women at a discounted price. We sell
clothes aimed towards teenagers, around 15 and up, to around the age of 40 in a variety
of different sizes. On the website, we have a couple of different tabs. Most of them are
the clothing products but we also have an online newsletter. In the newsletter, we will
provide readers with what is “in style.” We will also show the images of what the
celebrities are wearing and what we have on our website that looks similar to what they
have on but for an affordable price. On our website, we offer everything from clothing to
accessories including shoes. In the near future, we will begin to sell jewelry, handbags
and men’s wear as well. We appeal to women on the run, with a busy or hectic life
because we offer clothing that they like and do not have to go to the store for. They can
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simply just go online and quickly search and shop. Our store will be saving people time
and money so now they can spend it on other necessities that they need in their life. We
will also be offering deals to new and returning customers as well as those that sign up
for our newsletter.
Weaknesses: We believe that our company will be hard to start because we will really
have to search for deals. We want to have the most affordable store possible. We also
believe that it may be hard to advertise due to money issues but will try to make fliers,
send out emails, and hope that word of mouth works out for us. We will also have many
competitors who already have their name out there and are known for their deals and
discounts that they do. We will not have much money to start off with but we are hoping
to make that back quickly.
Opportunities: With our business, we are hoping to maybe be able to partner with other
companies so get our name out better. At lovely we are also hoping to some day be able
to sell more than what we offer now. We want to be able to sell fragrances, handbags, and
also create a men’s line. One day we would also like to be able to make our own clothing
line rather than buying bulk from other companies so we can have our name on our
products. This will allow us to prosper and make more of a profit because we will no
longer have to pay other brands for their clothing and only have to pay to create our own.
We are also hoping to one day be able to open an actual store in a mall or outlet shopping
center.
Threats: Lovely’s threats are mainly the companies that we will be competing against in
the market. We want to be able to have the best sales and deals possible so that we can
keep customers returning to us but we do not know how well this will go because we
need to get out name out first. Companies like Charlotte Russe and Forever 21 have deals
almost every day and actually have their own stores so many know about them. Because
we are just starting off, not many will know of us and this will be a problem. We will
have to do as much advertising as possible.
PEST Analysis
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Political: At Lovely, we must make sure that we follow all government rules and
regulations in order to be considered a legitimate authorized business. We must take into
consideration:
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Tax policies for different states when taxing a person.
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Employment laws.
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Trade restrictions.
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Political stability.
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Environmental regulations in the area in which we obtain our warehouse.
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Economic: In order to be a strong and successful company, Lovely must pay attention to
economic stability. By studying the effects of the economy on our business we will be
able to maintain: demands on products to keep the customers happy and supply them
with what they want. It is important that we watch the following for our business because
when any of them go up or down, it could impact our company negatively or positively.
○Economic Stability.
○Economic Growth.
○Interest Rates.
○Inflation Rates.
○Exchange Rates.
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Socio-Culture: At Lovely, Society and Culture are the two most important aspects that we
are trying to reach out to. We want everyone to feel welcome so we must do what we can
to show this. Because this is so important to us, we must consider:
○Age distribution.
■Provide advertising in areas that have the age groups we are aiming
towards.
○Consumer behaviors.
■To see who is buying our products more frequently.
■To listen to what they have to say about our products.
○Religion and culture.
■At Lovely, we know that our clothes will not fit into, or be accepted by
all cultures, but we will offer what we have all over and by seeing who buys our
clothing, we will learn from that and sell to who we attract.
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Technological: Because Lovely is an online based store right now, this is one of the most
important factors for us. Because of the adaption of almost everything becoming
technological, we believe that we will be able to prosper quite well with our business
because it is all Internet based. But because this involves a lot of technology, we will
have to consider:
○Technology incentives.
○Technological changes/advances.
○Internet usage rates on given days.
○Back up all files elsewhere besides on computers.
○What we would do if Internet were to go down for a day.