Ornaments Store Project

Prepared Expressly for

Ms. Yang

Director

Prepared by

Franklyn

*** Company

       

     

Submitted on June 5, 20##

In fulfillment of the course

Contents

Executive Summary………………………………..……………...5

Introduction………………………………..……………...………6

Findings………………………………..……………...…………7

   Opportunities………………………………..…………….…7               Strengths………………………………..……………...……7

   Premises………………………………..……………...……8

   Services………………………………..……………...……8

   Goods………………………………..……………..………9

   Facilities………………………………..……………...……10

   Cost Breakdowns………………………………..…………10

   Benefits………………………………..……………...…12

   Schedule………………………………..……………..…12

   Risk and Management Plans………………………………13

Conclusion………………………………..……………...……13

Reference………………………………..……………...………13

Appendixes………………………………..……………..……15

   Analysis of the business………………………………15  

   Customer profile………………………………..…………16

   Focus group report………………………………..………16

   SWOT analysis………………………………..……………16

   Action plan and activity chart……………………………17

   Costing………………………………..……………...……17

   Risk analysis and management……………………………17

   The project framework………………………………..……18

Proposal for Setting up an Ornaments Store

? Executive Summary

The project in this paper is fashionable ornaments trade. The love of beauty is an essential part of all females in nature. The shining bijouterie and pretty dresses have always been the desirability for the women to seek for. As such, the ornaments have been the hotspots in consume market all the while. With the rapid development of the ornaments trade, various ornaments stores mushroomed in recent years. Therefore, the ornaments trade has a prosperous outlook.

Considering the main customers are young ladies and students, who pursue fashion and follow the tide, the ornaments stores should be set up in shopping street, the university town or near schools or the university town. In short, the shop should be opened in crowed place.

There are various kind of goods that could be selling, such as cosmetic and its tools, headwear, hand wear, ear pendant, rings, gifts and so on. In addition, this kind of goods can be categorized to low-end products, medium products and top-grade products. We should select the right grade according to the local consumption capability and their appreciations.

The cost of such a store is, at most, 100,000 RMB, including rent, decorating expenditure, floating money for goods, propaganda expenditure and so on. Before open such a store, a business license should be registered and you should also register your revenue, the cost of which is not more than 500 RMB. By this token, the turnover of everyday will be varying from 1,000 RMB to 3,000 RMB.

Ornaments trade is a newly rising industry, which desperate from bijouterie and craftworks industry. Ornaments, as the rising point of new economy, have become mature in developed countries. The personal share rate of ornaments is very low in our country and the demanding capacity is prosperous. Therefore the potentiality of this business is great.

? Introduction

The project is fashionable ornaments trade. The ornaments have been the hotspots in consume market all the while. With the rapid development of the ornaments trade, various ornaments stores mushroomed in recent years. Therefore, the ornaments trade has a prosperous outlook.

Seen from the history of the development of Chinese ornaments industry, currently, the ornaments industry stays in a steady and fast development stage. In the next three to five years, along with the continuous fast development of civil economy and the constant improvement of material life, the consumption of ornaments industry will definitely go forward a great step. While every other industry of China is becoming more and more competitive, ornaments industry remains primary stage in competition. There is no leading brand and no brand market could take more than 5% market share. The brands that has chain stores all over the nation is very small, not to mention the brands that could promote itself and set up its own agency to improve and develop itself. This industry lacks the ability to build its own brand and the notion of marketing.

The prime customers of this industry are young ladies and the location is near or in the university town or business street. Cosmetic and its tools, headwear, hand wear, ear pendant, rings, gifts, daily commodity and so on are its main products. By knowing about the needs and desire of consumers for ornaments and the evaluation of customers for the ornaments, the manufacturer could research new product and retailers could select the appropriate products that fit the market.

The project of ornaments store needs a sum of, at most, 10,000 RMB to rent, decorate, and register the store and so on. The store would make it possible that the revenue and profit be increased by 10% annually. And, in the first year when the store is opened, net profits after tax will be increased to nearly 40,000. Besides, the daily sales would reach 1000 RMB to 3000 RMB.

? Findings

Opportunities

As for people’s desire to pursuing fashion, especially small ornaments, ornaments business is becoming hotter and hotter, the business opportunities of ornaments is huge. In addition, the ornaments upgrade is very fast, there is no need to worry about the prospect. For there will be constant customer. Some products have taken a certain market share and you could get the most business opportunities.

l  There are various kinds of goods and the full-scale of category. The advertisement of such products has been entered into the market by the fashion information and you need not to worry about the propagandas.

l  The ornaments have their specific style and been keeping up with the fashion elements, which could attract a lot of ladies who seek for beauty.

l  These products have been under considerate observation and elaborate production. However, the price is moderate. So there are a lot of customers and the customers are constant.

l  The designer has strong capability. Even if the manufacture can’t employ a good designer, they would know what is popular now and that is their occupational acuity. Therefore, they have the ability to update their product to stimulate consumption.

Strength

The strength is very important in the competitive market. If your strength is not strong enough, you may be defeated by other rivals. Here, our ornaments shop has our own strength to compete with other counterparts. Therefore, we should take good use of the existing strength to make the business become bigger and bigger. These strengths can be illustrated as follows:

l  The price is comparatively low. We could give comparatively lower prices though buying our suppliers in some other places.

l  The patterns are various and novel. Small ornaments are famous for their diverse styles, this shop’ products are from all over the world. No doubt the patters are various.

l  They are keep up with the fashion and tide.

Premises

Opening a new ornaments store will definitely attract a lot people’s sight. We could make good use of it to make the store lively. First, the store must have some features and below are such factors.

l  The appearance of the store is attractive and it stands for the shop’s image. Ladies always buy something because of impulsion, and good outlook could stimulate their desire to go into the store. So the outlook is our first feature.

l  The display is unique and sightly. Products display is also static marketing, and handsome display could attract more customers. In this store, we have unique adornments that orderly display.

l  Products are the core competition, and any marketing couldn’t exits without product. We have wonderful product, and after the customers enjoy the display of the store, they will begin to carefully look at the products.

Services

Good services could keep more customers. So we can’t ignore the quality of services in ornaments shops. In order to increase the circulation of products, we have planned several items as follows:

l  We give membership cards to customers who applied for the member of our shop. For those customers, they could get a discount on some products. And we will send them presents on special days, such as their birthday. In addition, they will be first informed the newest products of our shop and the newest fashion information.

l  On holidays of weekend, we will hold some promotion activities. For instance, we provide discount on some products and we give customers presents if they buy some amount of products.

l  Provide warm and attentive human services by training the staff.

l  Provide background music to create a pleasant atmosphere.

Goods    

Goods are the core of a shop, not to mention an ornament shop. In this kind of shop, it will provide various kinds of goods and the scope of goods is very large. In addition, the goods in this shop should be fit for the consumption level and the age of customers. In order to meet the different needs of different customers, the shop should store different levels of goods, such as high-end, middle-end and low-end. Nowadays, most of young people pursue for individuality, therefore the goods should be special and unique, too. We could buy our supplies in minority areas or foreign countries. Below are the kinds of goods that an ornament should store.

l  The first kind must be pure ornaments. Firstly, according to the style, there are necklace, pendant, bracelet, ring, brooch, and earring and so on. Secondly, according to the material, there are silver ornament, crystal ornament and emulation ornament and so on.

l  Another kind is toys and gifts. For example, doll, music box, flowers and adornments and so on.

l  The third kind is small living goods. Such as gloves or mitten, watch, umbrella, bags, cups, scarf, and perfume and so on.

l  Many other things could be sold in this kind of shop. There is no specific bound. We could sell stationery, sun glasses, cosmetics and comb and small mirror as well.

Facilities

Planning to open a new ornament shop, we have to by some must to decorate the shop. In fact, decorating an ornaments shop is not like decorating a hotel which needs to be luxury, in stead; we should grasp one point that is showing the air of fashion. After all, ornaments are a kind of fashion tide. When decorating the shop we should take care of the style and specifications as a whole to make the shop eye-catching. In the end, our style of decoration and fascia will become our free advertisement. Next, we will talk about the concrete facilities. As for the wall and floor, we could buy some wallpaper and floor tiles according to the style and economic position. Or simply decorate them, such as whitewash or something alike. After that, we should buy the most important facilities—that are the display shelf and hangers. Because our goods are put on the shelves and hanged on the hangers, and customers who go into the shop are for them. So the display shelves should be in proper specification to hold our goods. In addition, it is better we may decorate the display shelves as well, because which could well match our goods. Anther important facility is the counter. Here, I think there is no need to say the importance of this subject. There are other facilities, like cupboards, lights and so on. If it is necessary we could also buy a video camera or computer.

Cost breakdown

The cost of an ornament shop is varying according to your expectation, for there are many elements that could affect the cost, for example, the level of decoration, the quality of facilities and the dimensions of the shop and so on. In another words, if you want to open a high-level ornament shop, the cost must be higher. Instead, if you just want a middleclass ornament shop, the cost could be less. Generally speaking, whatever kind of shop, the cost will be no more than 100,000 RMB and no less than 20,000 RMB. Expenses for specific items are listed as follows:

Rent: the first thing of opening a shop is to find a proper front shop and rent it. The cost of renting a shop is also varying from 20## RMB to 10,000 RMB according to the acre of the shop and region.

Standard shop: the acre of the shop is usually 20 square meters and the cost may be varying from 1400 RMB to 1800 RMB.

Decoration: the cost of buying decorating materials and employing interior decorating workers will vary from 6000 RMB to 20,000 RMB. Now we are talking about the standard shop.

Labor costs            1,000

Lumber                150

Paint                  400

Lighting & pipes       3,000

Flooring              1,000

Glue & Tools            50

Windows & doors      3,000

Equipment: according to the shop itself, the equipment cost is different. However, the cost of equipment in an ordinary ornament shop is no less than 10,000 RMB.

Shelves and latch hook     1,000

Counter and chairs         700

Computer               5,000

Air condition            4,000

Camera video            3,000

Budget: The monthly increase in the operating budget would be

Wages                       7,000

Equipment maintenance         1,000

Electricity cost                 300

Benefits

The benefit of an ornament shop is very good. Generally speaking, one product can make a benefit which is three to eight times than the product itself. However, the benefit varies by the area and seasons. So, we have to well plan that how to get the largest benefit. As for the fever that young people are pursuing for fashion is becoming hotter and hotter, the industry of ornaments will definitely become more prosperous. Furthermore, as the frequency on the updating of this kind of products is very fast, so people will buy them over and over again to meet their needs. Therefore, there is one point that we should take care of, which is that before we buy our supplies, we should make a survey that which kind of ornaments are populous and make a plan that which products could buy more and which should buy less.

Now let’s talk about the specific benefit. We keep storing products that worth 30,000 RMB in the shop monthly. Supposing the average daily sales of the products is 1,000 RMB and the monthly vested capital is 30,000 RMB, the monthly benefit will be 30,000 RMB. Besides, we buy our supplies 10,000 RMB every month. Removing the wages of shop assistants and other fees, the net profit will be 2,000 monthly. Therefore, careful plan is necessary if you want to open an ornament shop.

As a matter of fact, the monthly income varies in different seasons. All the above analyses are the average condition.

Schedule

This project will nearly take two months to finish. After you plan to open an ornament shop, you will first select the proper store for your further invest. And this will take a month. Next, there are a lot of cockamamie things to do, such as decorating the store. In this process, we should invite an interior designer to draw a decorating plan with us first. Then comes the related business, for example, buying the materials, asking workers and doing the decoration. Probably this process will take two to three weeks. After all these have done, you need to buy your supplier and put them rightly on the appropriate places. In fact, this process should have been conceived when you have the thought to open an ornament shop. You have to make a research to find out what kind of product you need to store. Usually, this procedure will take one week. As it is known to all, next you will be the boss of the shop.

Risk and Management Plans

As a coin has two covers, every thing also has two sides. Therefore, it is necessary for us to think about the risks beforehand. If you don’t think this kind of things, when they happen, you may be shocked and don’t know what to do. As for the demand of market is becoming larger and larger, people who are doing business of ornaments is increasing. Consequently, the market competitive is becoming more and fiercer. You may be under great pressure. Risks like that there are not many customers come into the shop or buy you products, and some goods are lost or stolen by someone are the frequent ones. All these may happen. You have to be ready for the risk and make good management plans for this. Below are some corresponding measures.

l  Considering the big competition, we should keep our products new, full and fashionable. Besides, ornaments upgrade very fast, so the stock-up cycle should be shortened. In order to achieve that we could buy suppliers once a week or at least stock up some new things. Of course, we should decide as circumstances require.

l  Carry out market research for the customers’ assessments towards the provided products to guarantee the popularity of certain special ornaments. In addition, we should read newspaper, magazines and watch TV frequently to know the latest fashion trend and the tide, making our ornamental vision discerning.

l  In order to decrease the frequency that some goods are lost or stolen, we should keep proper amount of sales persons in the shop. Set camera video in the shop to monitor the whole staff and customers.

? Conclusion

In conclusion, the project of opening an ornament store is practical and feasible. Seen from the historical development of Chinese ornaments industry, we can see that ornaments industry stays in a stable but constantly fast rising stage. In three to five years, along with the continuously fast growing of civil economy and people’s material living level, the consumption in ornaments industry will definitely develop a big step forward.

In the mean while, for ornaments practitioners, market competitive pressure is becoming bigger and bigger as time goes by. If a company wants to win the market advantages, he must forecast and meet the requirements of customers and know about the features of customers, as well as their purchasing reasons, course and affecting factors. Only when you understand the general acting discipline in customers’ purchasing process and find out the bidirectional mutual relation between factors which affect purchasing actions and marketing, can you make out practical market strategies.

In the end, I would like to meet with you at your convenience to discuss this plan thoroughly. At the same time, I would be willing to explain any details or your doubtful points and provide you with any additional data that you may require. Please call me when it is convenient for you as I know that your have a very tight schedule.

? References

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? Appendixes

Analysis of the business

Seen from the historical development of Chinese ornaments industry, we can see that ornaments industry stays in a stable but constantly fast rising stage. In three to five years, along with the continuously fast growing of civil economy and people’s material living level, the consumption in ornaments industry will definitely develop a big step forward. While every other industry of China is becoming more and more competitive, ornaments industry remains primary stage in competition. There is no leading brand and no brand market could take more than 5% market share. The brands that have chain stores all over the nation are very small. So the prosperity of this kind of industry is quite huge.

Customer profile

For the ornaments shops, the prime customers are students and ladies and those who pursue for fashion and beauty. However, some males may also go into this kind of shop. Considering the type of the customers, we can see the average age of the customers will be not more than thirty. As for the occupation of the customers’, there is no dividing line. People from all works of life may be our customers. Maybe, high-income people will not come into the shops. Usually, the average income of the customer of this kind of shop is not very high, but there are also exceptions. Generally speaking, they are in the middle level. In addition, their interests, most of them, seeking for beauty and their way of life are different.

Focus group report

For every industry, customers’ complain is unavoidable. In the ornaments shop, the main complain from customers’ maybe that the goods are not full. In other words, some customers can’t find the product they need in the shop. Another thing is that the service in the shop is not very good and the shop assistants are unzealous. As the shop owner, you should be sensitive to all of this and take actions instantly to solve the problems in case you lost customers.

SWOT analysis

The strength of the ornaments shop is very strong. For example, the price is comparatively low, the patterns are various and novel and the ornaments are kept up with the fashion and tide. The weakness of the ornaments shop is that the business changes according to the seasons and weather. So maybe in some time, the business is very good and there are many customers come to buy your product, but in some time maybe not.

There are many opportunities for the ornaments shop. As for people’s desire to pursuing fashion, especially small ornaments, is becoming hotter and hotter, the business opportunities of ornaments is huge. In addition, some products have taken a certain market share and you could get the most business opportunities. Therefore, the opportunities for ornaments shop are prosperous. The threat comes from their competitors. So you should be careful all the time to make yourself unbeatable.

Action plan and activity chart

Costing

The cost of an ornament shop is varying according to your expectation, for there are many elements that could affect the cost. Generally speaking, whatever kind of shop, the cost will be no more than 100,000 RMB and no less than 20,000 RMB. Thereamong, the cost of labor is about 1,000 RMB, the cost of material is 1,600RMB, the cost of equipments is14, 000RMB and the cost of utilities is 7,000RMB.

Risk analysis and management

Risk is the kind of thing that we must consider beforehand. If we don’t care, we may close the shop at the end. For instance, there are not many customers come into the shop or buy you products, and some goods are lost or stolen by someone are the frequent ones. We should take effective actions to prevent this kind of things happen. We should keep our products new, full and fashionable and shorten the stock-up circle. Furthermore, carry out market research for the customers’ assessments towards the provided products to guarantee the popularity of certain special ornaments. In addition, we should read newspaper, magazines and watch TV frequently to know the latest fashion trend and the tide, making our ornamental vision discerning. At last, we should keep proper amount of sales persons in the shop. Set camera video in the shop to monitor the whole staff and customers.

The project framework

The goal of the project is to open an ornament shop. In order to make this project realized and the shop vigorous, we have a lot of things to do. Such as decorating the shop, buying suppliers and setting the shop and so on. The inputs are various ornaments and equipments and the outputs are the products you want to sell.