Business plan for the start-up of a clothes shop in China: Frenchy

Résumé du document

We are going to launch a new brand in the most famous emerging market in the world: China.

The concept is to launch a semi-luxury clothing company with the brand name ‘Frenchy'.
Our objectives are very simple; we want to open a French clothing shop in China, because this market is growing and we think that it could be a real opportunity for us.

We are going to target the middle class market which represents the next generation of ‘powerful-buyers'.
Through this business plan, we will explain the different steps that are required to commence our business in the fast growing Chinese market. We will begin by explaining the conception of our idea and its characteristics. Then, we will explain the market analysis that we made in order to understand the market expectations and to recognize our competitors. We will analyze the Chinese market to define how to penetrate it. This part is very important for us, because by learning about the market, we can change and adapt our strategy.

Then we will develop a part of the marketing mix; this part is about our price strategy, the offer that we are going to propose to consumers and the way we will develop our communication strategy in order to be quickly known in the big cities.
Finally, we will present a brief financial analysis.

Extraits

[...] Finally, we can add that ‘middle market' would represent 180 million people in 2010. The Chinese Clothes Market ( Total market size growth and trends The number of Chinese people being part of what we can assimilate as the middle class represents more than 200 million; half of them can consume imported goods regularly. The wages remain still modest for this category, in spite of a progression of 10% per annum (maximum of 2000 euros per annum with Shenzhen and Beijing). [...]

[...] INTERNAL ANALYSIS ‘Frenchy' represents a perfect French brand, with beautiful clothes and a luxury image. ‘Frenchy' targets active women with high purchasing power. But, the company has some weaknesses that affect its establishment in the Chinese market and its development. EXTERNAL ANALYSIS On the one hand, the Chinese middle market represents a large number of opportunities for ‘Frenchy'. This emerging market can bring success and cash if it is well used. But on the other hand, China is a developing country which appeals to a lot of companies, so the competition is stiff in this market. [...]

[...] But the shops are what the clients are referring to when they think about ‘Frenchy'. They need to be smooth, glamorous, luxurious, with an excellent use of light. Also, the decoration needs to match with the current collection. The showroom needs to match not just the new models but the colors and the materials as well. If the current collection is brown with metallic tones, then the decor of the shop needs to reflect it. ( Advertising on wall It needs to be big enough to convey the brand's image and monetary power. [...]

[...] So ‘Frenchy' will use its French origin to promote its image. ( How to promote ‘Frenchy'? The first step of the promotion policy should be to develop advertising campaigns in fashion magazines like ‘Elle'. Those magazines are already presenting products which although a bit more expensive, can be afforded by common women. These advertisements have to give an image of young people (25 35 year old women), with high quality clothes of Frenchy's collection. The overall color should be gold, brown and black to refer to quality. [...]

[...] In fact, they are seduced by the French way, the natural and luxurious texture and we propose this kind of texture at affordable prices. We are the brand which can satisfy the demand of Chinese women well. The Chinese market represents a good opportunity for the firm and ‘Frenchy' has to develop its brand in this market to ensure its long-term success. To conclude, we could say that in order to enter the growing ‘middle market' in China, the ‘Frenchy' brand has to adapt its strategy (for example, the size of clothes). [...]