Contents

Project Brief:...............................................................................................................3
Reasons for Selection:.............................................................................................3
Products:....................................................................................................................4
Casual:....................................................................................................................4
Semi-formal:............................................................................................................4
Formal:....................................................................................................................4
Party:.......................................................................................................................4
Bridal:......................................................................................................................4
Production process flow:.............................................................................................5
Production Process Diagram:..................................................................................6
Government Initiatives:..............................................................................................7
Market Analysis..........................................................................................................7
Existing Service Provider:........................................................................................7
Basis of Competition:..............................................................................................8
Total Market Size:....................................................................................................8
Target Market:............................................................................................................8
Retail Outlet:...........................................................................................................9
Stage of Product Life Cycle:........................................................................................9
Historical Growth:....................................................................................................9
SWOT Analysis:.........................................................................................................10
Strengths:..............................................................................................................10
Weaknesses:.........................................................................................................10
Opportunities:.......................................................................................................10
Threats:.................................................................................................................10
Strategy to be Successful in Market:........................................................................11
Competitive edge:....................................................................................................11
PROJECT ECONOMICS...............................................................................................13
Key Assumptions......................................................................................................14
Key Assumptions

Fashion Enclave
 “The fashionable’s society”

Project Brief:
We are opening a new boutique for ladies wear named as “Fashion
Enclave” which offers dresses in catogeries like casual, formal, semi-formal,
Party and Bridal wear. Our retail outlet will be on Hali Road GulbergIII Lahore.

Reasons for Selection:

Clothing is a beautiful visual demonstration of the social and emotional needs of people wearing
it. It also portrays in a clearly understood visual manner, what people of different cultures and
styles want socially. Fashion, through times, has gone through so many rapid changes and
bizarre extremes that it has examples of nearly every kind of clothing function.

However, in a boutique business, the specifications and descriptions of the designs and clothes
are so general that they can fit more than one costume, which actually are quite different in
nature from each other and this is solely dependent on the taste of the people.

The range of Pakistani dresses is remarkably wide, according to the vast cultures, geographical
differences, purchasing capacities, influence of the western culture, and bewildering diversities
of the ethnic groups. One has, therefore, to sift and isolate, and then relate and bring together, the
ideas for creating various designs, which can fit in the context of the fashion in vogue and the
culture in practice.

There is a massive potential in this field, if one has the ability to design and market his/her
products through introducing innovative designs both in stitching as well as the fabric sector.

There is massive export potential in this sector, as the demand of Pakistani dresses, especially in
countries like UAE, USA, and UK, is massive due to a high number of Pakistani expatriates who
have settled in these countries. The Boutique business can also be expanded into a more
profitable venture by providing stitching facilities to other boutiques, which do not own a
stitching unit or are lacking this facility.
Products:
In our boutique we offer the following clothing:

✔ Casual
✔ Semi-formal
✔ Formal
✔ Party
✔ Bridal

Casual:
This is a ready to wear line. Casual dress is made mostly in pure cottons,
khaddars, lawn, linens and embroidered cottons. This line is primarily day
wear which is affordable and trendy.

Semi-formal:
This range is primarily evening wear- slightly more formal, it plays with
exquisite embroideries in resham and crystals on chiffons, silks and
georgettes.

Formal:
This line consists of silks, jamahwars and heavy hand embroideries in
crystals (traditional eastern embroideries).

Party:
We offer a wide range of different dresses designed especially for the parties and
special occasions and events.

Bridal:
We offer Pakistani wedding dresses in different styles from simple and elegant to
flashy and outlandish. This line of dresses include lehnga, sharara etc. for bride.

Production process flow:

The process for converting fabric in designer wear garments follows the below
Mentioned sequence:

• Design: The initial process starts from the designing phase. Various patterns of clothing
and the fashions in vogue, which also relate to the tastes of the concerned clientele, are
designed. This is done by the contracted designer as he/she will provide the basic designs
of which the fabric will be converted into the designer wear garment.

• Pattern Making/Cutting: Based on the designs selected, patterns for cutting are
developed and based on these patterns, fabric is cut, embodied, block printed, and
processed accordingly.

• Stitching: The cutting is then followed by stitching, which can either be done by the in-
house stitching unit or by outsourcing it. Labels are also attached to the apparels in this
process.

• Finishing: The final phase is that of finishing, in which the garment will be checked for
quality control and will cleaned (if required) for final presentation at the outlet. The
garments will also be tagged for identification of sizes, prices, addresses, handling
instructions, etc.

• Presentation/Market: Once the designer wear garment is ready after going through the
above-mentioned process, it is presented at the outlet/shop for sale to the clientele.

Production Process Diagram:

Government Initiatives:
In order to promote value added industry and to develop the fashion and design
industry, Government has decided to take steps which include increased number of
fashion institutes, faculty development, industry linkages, special programs for local
brands and designers recognition, affiliation with international fashion institutes,
dissemination of information on new fashion trends, product development centers,
introduction and availability of new fibers and their processing etc. on public-private
partnership basis.

Market Analysis
Existing Service Provider:
Following are the major key players and existing service provider in this business:

✔ Bareeze
✔ Satrangi
✔ Tana Bana
✔ Maria B
✔ Ideas by Gul Ahmed
✔ Hajra Hayat Collection
✔ Resham Ghar
✔ meenakar

Some individual fashion designer in this field is:

• Deepak Perwani
• Amir Adnan
• Hassan Shehryar
• Nomi Ansari
• Nilofar Shahid
• Tazeen Hassan
• Salman’s
Basis of Competition:
We are competing in the market on the basis of price. By offering ready to sell
dresses at low prices while maintaining a reasonable quality, we can make a strong
presence in the market.

Total Market Size:

Currently, the boutique industry is scattered in and around the posh areas of the
metropolitan cities of Pakistan i.e. Lahore, Islamabad, Karachi, Peshawar, and
Quetta. The boutiques in Peshawar and Quetta, mostly sell the traditional dresses
having indigenous/local designs, whereas the ones in Lahore, Islamabad, and
Karachi deal in fashion wear greatly influenced by the west and the local trends in
vogue.

As such, there is no exact detail available of the number of boutiques, especially in

women wear, because there is no association or link between these enterprises. The
main reason is the business rivalries and the competitive structure of the industry.
However, one can name a few major players in the business such as Indifference,
Generation, Parahan, Nee Punhal, Bossini, Kapre Waghera, Maria B, Nina’s, and
some individual designer players like Beegee’s, Nilofar Shahid, Nadia Mistri, Amir
Adnan, Shayan Malik, and Sahar Saigol. In Pakistan Boutiques are working to
provide the up to date and latest fashion clothes for fashion loving Pakistani. Also
fashion designers are working in Pakistan they provide their services on individual
basis in the form of their personal boutiques and outlets while some of them are
also providing their services collectively. Traditional dresses like embroidered
Shalwar Qamiz, Sari, Gharara, lehanga and others are available on approximately all
Pakistani boutiques. Western dresses are also available at Pakistani boutiques.
Typical Pakistani boutiques provide both party wear and casual wear dresses in pre
stitch and unstitch forms.
Target Market:
Our target market includes the following:

 Elite Class
 Middle Class

Retail Outlet:
We are opening our retail outlet on Hali Road near Main Market Gulberg III.

Stage of Product Life Cycle:

Boutique industry in Pakistan is yet in its progressing stages. It has moved ahead
from being embryonic but hasn’t spurted. However, threat of competitors is still an
important factor that govern the operations of this industry; particularly the rivalry
between fashion designers of Karachi and Lahore in terms of ideals have prompted
every company in the industry to strive to develop a competitive edge and
nationally expand as large as possible. This is mainly because the few designers
that exist at present are equal in size and capability.

This industry is still not mature enough in its life cycle. There is not much time
before these few designers are faced with increased competition particularly as
standards of living become high and international designers set up their business in
the country. Competitive rivalry in this case is comparatively high.

Historical Growth:
Following table represents the historical Performance of readymade garments in
terms of exports.

Year Export Value Export % share of

In (billion US$) Quantity total Export.

In Mn Doz

1997 0.74 29 8.5

1998 0.75 27 8.8

1999 0.65 28 7.7

2000 0.77 31 8.7

2001 0.83 36 9.0

2002 0.88 41 8.9

2003 1.09 36 9.7

2004 0.99 28 8.1

2005 1.09 34 7.6

2006 1.31 37 8.0

SWOT Analysis:
Strengths:

• Ability of fulfilling the customized order of customers.

• Wide product line.
• Availability of workforce.
• Low labor cost.
• Easy availability of raw materials.
• High demand and supply Gap as buyers are much more.

Weaknesses:

• Lack of brand awareness.

• Fashion industry has not yet matured in Pakistan.
• Highly Volatile i.e. rapidly changing the fashion and tastes of people

Opportunities:

• Increasing trend of people towards designer clothing.

• Prospect sales through e-commerce channel.
• Enter new product markets.
• Expanding the number of retail outlets.
• Export Opportunities
Threats:

• The market of the boutiques is highly competitive; therefore if the

entrepreneur is not well responsive to the tastes and response of the
clientele as well as the fashions in vogue he/she may not be able to capitalize
the opportunity properly.
• Selection of the wrong venue can be a major hurdle in achieving the desired
business Objectives.
• Economic recession and political situation in the country.
• Established strong competitors

Strategy to be Successful in Market:

Following are the strategies to be adopted to be successful in the market

• Proper care while producing dresses should be adopted

• Proper Inventory management.
• The dress designs should be according to the emerging trends and fashions.
• Designing of dresses according to the consumer tastes/preferences.
• The location of the outlet should be properly selected and attractively
decorated so as to target the consumer effectively.
• The customer satisfaction should be given due importance, because it is the
customer satisfaction, which can increase the sales. Hence, excellent
customer service should be provided.
• Strong relationship with vendors.

Competitive edge:
The most significant competitive advantage we will have over our competitors is
dedication to providing an approachable retail atmosphere with top-notch customer
service and charging suitable prices. Our unique selling proposition is the integrated
concept of personal style services that educate shoppers on designers, to
personalized Style Assessments, on-site alterations in case of customized products,
and our own unique Style dresses and wardrobe accessories.
 PROJECT ECONOMICS

Fixed Asset Expenditures

113,00
Equipment 0
437,83
Furniture & Fixture (Interior Decoration) 8
44,00
Machinery 0
150,00
Security Deposits for Premises 0

Pre Operating Expenses

130,00
Salaries 0
75,00
Promotional Expenses 0
50,00
registration Fee 0

Working Capital
415,00
Raw material ( Fabric & Accessories) 0
150,00
Prepaid Rent (Boutique and Stitching Unit) 0

565,00
Total Working Capital 0
200,00
Cash in hand 0
Project Cost 1,764,838

project Returns
125.
Internal Rate of Return (IRR) 08

Payback Period (Years) 1.54

Net Present Value (NPV) 34,135,145

Financial Plan
0.
Equity 7 1,235,387
0. 529,45
Debt 3 1
 Key Assumptions
Production Assumptions
Production Capacity (No. of dresses per month) 1000
Capacity Utilization for the first year 55%

operating Assumptions
Hours operational per day 8
Days operational per month (Production) 25
Days operational per month (Boutique) 25

Cash Flow Assumptions

Account Payable (Percentage of Cost of Goods Sold) 2%
Growth in Last year 0%
Account Receivable (percentage of Sales) 2%
Growth in Last year 0%

Expense Assumptions
Promotion Expenses after Year 1 (percentage of sales) 2%
Raw Material Price Growth rate 1%
Payroll growth rate 5%
Rent growth rate 10%

Financial Assumptions
10
Project Life Years
Debt: 30%
Equity 70%
Interest Rate on Long Term Debt 18%
Debt Tenure (year) 10
117,81
Debt Payment per year 1
Number of Payments per year 1
Tax rate 35%
(Interest rate is expected to be high as business is just starting up.
So
its about 18% including 6% risk rate.)
Return on Equity 18%

Rent Cost Detail

Per
Per Month Year
Rent for shop 35000 420000
Rent for house 15000 180000

Per 3
Prepaid Rent (Three Months Advance) Month Month
Shop 35000 105000
house 15000 45000
15000
Total Prepaid Rent 0

Security Deposit for Premises

Per
Per Month Year
Security for Renting Shop
@ Rs. 35000 Per month (3 Months Rent as a security) 35000 105000
security for renting a house for installing a stitching
Unit
@ 15000 per month (3 month rent as a security) 15000 45000
Total Security for premises 150000

Infrastructure Requirements Sq. Ft

Main shop 600
Try Room 36
small Store 100
Kitchen 64
10
Marla
Building For Stitching Unit House

Depreciation Assumptions
Fixed Assets @ straight line method having salvage 59483.
value Nil (year) 10 8
 20833.
Amortization of preliminary Expenses 16.67% 33
Amortization period 6

Maintenance Cost
Maintenance Cost (% of Sales) 2% 297594
Growth rate (Per Annum) 5%

Production Assumptions
Casual Wear 38% 2000
Semi Formal Wear 15% 3200
Formal Wear 23% 5500
Party Wear 23% 7000
Bridal wear 1% 50000
Total 100%

CGS Assumptions
Casual Wear 40%
Semi Formal Wear 40%
Formal Wear 40%
Party Wear 40%
Bridal wear 40%

Boutique Timing
10:30:A
Winter 12:00 PM M
12:00
Summer 12:00 PM AM

Utility Bills
Per
Per Month Year
Electricity 10000 120000
Telephone 2000 24000
Water 250 3000
 14700
Total Utility Bills 12250 0

Preliminary Expenses
Promotional Expenses 75000
Registration Fee 50000
12500
Total Preliminary Expenses 0
life (years) 6
Straight
method Line
salvage Value 0

Machinery detail
Stitching Machinery Number Rs./unit Total
Single Needle Lock Stitching Machine 4 4500 18000
Over lock Machine 1 10000 10000
Embroidery 2 8000 16000
Total 44000

Machinery Life (Years) 10

Salvage Value 0
Straight
Depreciation Method Line

Total
Other Equipment's
Per Per
units Month Year
UPS 1 45000 45000
Computer 1 25000 25000
Printer 1 4000 4000
Telephone 2 2000 4000
Fax Machine 1 5000 5000
Software's 1 30000 30000
11300
Total 0

Equipment Life (Life) 10

Salvage Value 0
 Straight
Depreciation Method Line

Interior Decoration
Interior Decoration (Installing Lighting, Mallequins,
Hanging Racks, Mirrors, Glass pans, Cash Counter, 43783
and Other Decorations, etc.) 8

Life (year) 10
Salvage Value 0
Straight
Depreciation Method Line

5948
Total Fixed Assets 38

Raw Material
Crepe 100000
Shafoon 100000
Jorjet 100000
Silk 100000
Moti Sitare 10000
Other material 5000
Total 415000

Increase in Raw material (Per Annum) 5%

Last Year Growth 0%

Finished Goods
165330
Finished Goods (production -sales) 0
Last Year Growth 0%

Sales
sales (percentage of production) 90%

Drawings
Owner draws (Percentage of Net Profits) 35%

Closing
607560
Account Receivable (Percentage recovered) 80% .4
-
Account Payable (Percentage paid) 100% 404198
Security (Percentage recovered) 100% 150000
490515
Stock (Raw Material) 80% .2
337533
Finished Goods 80% 6