Business Plan for Pink and Blue Fashion Ltd

This business plan outlines the idea of Pink and Blue Fashion Ltd, a start-up retail company that aims to sell fashionable clothes for men and women. It evaluates the external environment, discusses competition and competitive advantage, and provides suggestions for the target market.

Business Plan

Table of Contents
INTRODUCTION…………………………………………………………………………. 3
OVERVIEW OF BUSINESS IDEA………………………………………………………..4
EVALUATION OF EXTERNAL ENVIRONMENT………………………………...…….5
COMPETITION AND COMPETITIVE ADVANTAGE……………………………….….6
SUGGESTIONS FOR THE PROPOSED TARGET MARKET………………………...….8
CONCLUSION…………………………………………………………………………….10
REFERENCES……………………………………………………………………………..11

INTRODUCTION
The business plan is a framework that is developed to gives direction to the business, and
sets goals and objectives of the business. (McKeever, 2016.) The detailed planning of business is
created to achieve the target. The business plan shows that the idea of a new company will work
or not and evaluate the chances of profitability. This report will show the idea of my new
business and its evaluation of the external environment. The report will also show a competitive
advantage and will discuss suggestions for the target market.
Overview of Business Idea
New business idea and evaluation external environment and competitive advantage with
suggestions.
Company name: Pink and Blue Fashion Ltd
Executive Summary
Pink and Blue is a start-up retail company that will sell fashionable clothes for men and
women for the young generation. The location of the store will be in London, the main street.
The aim is to reach the youth and sell our product to them. The initial plan is for one store but in
the future, the vision is to make Pink and Blue a fashion brand and open stores in every city of
the United Kingdom.
The idea of my business
The idea of this start-up company is for Pink and Blue Fashion is to manufacture the
clothes and set up a store to sell them. I will contact some new fashion designer who wants to set
business but can not afford the investment. I will buy clothes from them and sell them in my
store. The business idea is to provide fashionable clothes to the young generation at a low rate.
The success of the business will depend on its planning and evaluating external factors.

Key factors of my new business ideas are -
 Professional design cloths with good quality of material
 Target youth between the age of 13 - 27 age group
 Partnering with new fashion designers to expand business
 Prioritizing customers preference and working on their taste
 Rent agreement for the store
 Contact the bank for all the legal and financial work
Product Detail
 Our product will include all the clothes for boys and girls which are trending in fashion.
Various sizes like small, medium, large and extra-large will be available for the boys and
girls of age group between 13 to 27.
 The premium quality of clothing Fabric and other raw material will be used which will
include Silk Fabric, cotton, linen, leather, and chiffon.
 Unique and trending design of cloths with cloths warrantee
Our company will focus on customers' tastes and preferences. Every customer's feedback will
be noted after each purchase and in the future changes will be done accordingly. The goal is to
make Pink and Blue Fashion a clothing brand and to stable in every city of the country.
Evaluation of External Environment
The external environments are necessary to analyze as it may affect the sales and
profitability of the business. The fashion industry is a vast business and trends change very
frequently. To stay in the market it is crucial to satisfy the customers. A well-planned business
also faces issue due to external factors, to understand them PEST Analysis will be evaluated of
Pink and Blue Fashion ltd.

Political
These factors include government policy, rules, and guidelines for new ventures and for the
clothing industry. The tax policy, labor law, environmental law, safety instructions, and avoiding
health hazards products are some of the factors which affect the fashion industry. Brands like
Mark and Spencer and Nike which trade internationally, their sales decrease due to Brexit. Small
retail and new venture are also impacted by the rules of the government. (Connell, 2019.) Some
fabrics are imported from other countries and their prices are very high, which increases the price
of the product. A new venture like Pink and Blue Fashion need the support of government for the
capital purpose. The legal procedure of the loan and the interest rate on the loan affect the new
business idea. Political factors also influence the advertising, product logo, and copyright issue.
Economical
The Fashion Industry's contribution to the development of the economy of the UK is very
vast. They provide employment to people, play a major role in international trading, and
participate in the GDP of the country. In 2018 the fashion industry provided 163,000 jobs to the
UK people. The Gross value added goes to about £3.94 billion. The fashion industry is growing
at a rapid rate while increasing the share in GDP. The export data of the fashion industry is about
£461 million in 2018. (Marullo, 2016.) The economic impact will bring a positive impact on the
new venture Pink and Blue Fashion. More opportunities will be open for the company to grow in
the market. In the future, the company can also trade the products internationally.
Social
Social factors include the social-culture trend in the market fashion industry. This factor
is most important in the fashion industry as they directly affect it. There is the various social-
culture impact which influences the market of the fashion industry. The young generation wants
to follow the fashion trends in the market, but the fashion tastes and preferences of teens and
youngsters are different and unstable. Fashion changes every day, consumers want to follow
their favorites celebrities. For a big brand like Burberry to satisfy every customer is very

difficult. The trending fashion is sometimes not socially acceptable for society, for example
using animal skin as fabric on clothes. (Sudha and Sheena, 2017.) Many customers avoid animal
skin clothing products. In modern culture, customers prefer the eco-friendly product. A new
venture like Pink and Blue Fashion may face the threat from branded products, as the young
generation emphasizes on brand.
Technological
In the world of Globalization technology in every industry is very essential. Online
marketing and online shopping are trending among every age of people. The consumer of the
fashion industry is well-aware of recent fashion, fabrics, and raw material because of technology,
which has made their choices particular. Pink and Blue should think of online selling or
developing their own websites to reach their target customers. The best use of technology used
by the fashion brand Mark and Spencer that they have come with Artificial Intelligence in their
store for ease of business. (Vanderploeg and et.al., 2017.) Technology favors the fashion
industry as it attracts more and more customers. The new venture Pink and Blue should also
technology in the stores and in the marketing. The company can use bar codes on its products
and start online shopping to reach customers easily.
Competition and competitive advantage
The fashion and clothing industry is very vast at global presence. Increasing the global
competition and facing the challenges to be in demand of customers is a tough job for
organizations. The market segment of the young generation prefers fashionable and trendy
clothes at a low rate. The local competitors of the fashion industry are Mark & Spencer,
Debenhams, John Lewis, Sewport, Hawthorn, Bridge and stitch, Unlimited fashion. The fashion
industry also faced challenges from International Competitors like Zara, H & M, Mango, Monte
Carlo, Forever21, and Polo Ralph Lauren. (UK fashion industry statistics. 2018.) The local
brands that originated in the UK are preferred by many customers over global brands. They
produce in less quantity but provide customized and quality products to customers. Global

brands stores are almost there in every big city, covering about 5000 stores in the UK. Mark and
Spencer have 1500 stores in Uk with 32 million customers and earn up to £58.1 million in 2019.
For a new venture like Pink and Blur Fashion, there is some advantage of competition of
local and global brands. As a new and small business in the fashion industry to study the
strategies and plans of other competitors is very helpful in the growth of the company. Here are
some competitive advantages -
 Looking at the trend - The taste and preferences of customers change very
frequently in the fashion market. Understand the trend going among young
generations and manufacture trending clothes. As a small company Pink and Blue
can do production in less quantity as fashion changes very fast. The global brand
will plan, manufactures, advertise, distribute its product before that trending
clothes will be available with the new venture.
 Improves the quality - One of the advantages of competition is that it works on
the quality of products and try to bring some unique features in its products. For
example, Debenhams has always worked on its quality improvement and work
on the customers' preferences. (Bonetti and Perry, 2017.) The sale of Mark and
Spencer was increased after the company focus on the quality of the product. The
Pink and Blue goal is to provide quality clothes to its customers.
 Transparency - Competition develops transparency between the company and its
customers. For the past few years’ competition among various fashion, industries
have expanded, and now the companies are adopting the policy of translucency
for maintaining customers loyal to their brand. In the digital world, customers
want to know about the clothing they are buying and the material and features
included in it. Customers rely on the information provided about fabric and
material used. (Yang and et.al., 2020.)Brand such as Everlane adopted the policy
of radical transparency, as they share their supplier's information, price
distribution, and fabric used on the digital platform.

 Progress in sustainability - The fashion industry affects the environment in some
or other way. Customers are also aware of the environment and prefer to go green
while purchasing. The fashion industry is making some changes in the process of
manufacturing, to maintain sustainability in the market. (Gardetti and Torres,
2017.) Many brands have adopted the process of recycling and bring innovation
to the clothing industry. One of the examples of sustainability is H&M will be
using natural coffee dyes and leather products from wine derivative products.
 Boosting Economy - Competition helps in increasing the economy. Competition
creates an innovative idea, which brings the invention of new and better products.
Like the use of technology in the clothing business, which was adopted by Mark
and Spencer. Innovation serves beneficial for customers and in growing GDP of
the country. (Casadei and Gilbert, 2018.) Creativity in the fashion business also
improves the standard of living. It brings different products which are not
common, and make their own trends.
Suggestions for the proposed target market
The targeted market for Pink and Blue Fashion are boys and girls of the age group 13 to
27. The main aim is to sell fashionable clothes to the young generation, schools, and college-
going students, who can purchase a quality product at low prices. (Macchion and et.al., 2017.)
Some suggestions are to be remembered for the young generation for fashion purchase.
 The trending clothes are only to be manufactured for youth. They prefer to buy
clothes which are trendy and look fashionable in them.
 Fashion tends to volatile, it changes very fast. The company should not
manufacturer the same type of clothes in large quantity, as when it goes out of
fashion customers will not prefer to buy it.

 Pink and Blue fashion is new in the market, so to attract the customers the
company should bring some offers or free accessories with cloths. It will bring
more customers to the store.
 As the young generations prefer good quality at low prices, it would be better for
Pink and Blue to make the price of cloths affordable for every customer.
 To compete with so many brands already established in the fashion industry, Pink
and Blue should add some unique features to its clothes like styling colors.
 Marketing is very important for any new product, build an effective marketing
plan which helps to boost sales.

CONCLUSION
In this report market research was done on the new business idea, which implied fashion
business. The business idea to enter the fashion industry is briefed in the above report. Some key
factors of a new venture named Pink and Blue Fashion ltd are analyzed, and it suggested that the
focus will be on the quality of clothing and preference of the customer. The targeted group is the
young generation. The impact of the external environment like political, technological were
studied. The report also discusses the competitors of Pink and Blue and their advantages to the
company. Next, some suggestions were sorted for the young generation to buy products of Pink
and Blue.

REFERENCES
Books and journals
Bonetti, F. and Perry, P., 2017. A review of consumer-facing digital technologies across different
types of fashion store formats. In Advanced fashion technology and operations
management (pp. 137-163). IGI Global.
Casadei, P. and Gilbert, D., 2018. Unpicking the fashion city: Global perspectives on design,
manufacturing and symbolic production in urban formations. In Creative Industries
and Entrepreneurship. Edward Elgar Publishing.
Connell, K.Y.H., 2019. Utilizing Political Consumerism to Challenge the 21st Century Fast
Fashion Industry. The Oxford Handbook of Political Consumerism. p.293.
Gardetti, M.A. and Torres, A.L. eds., 2017. Sustainability in fashion and textiles: values, design,
production and consumption. Routledge.
Macchion, L., and et.al., 2017. Improving innovation performance through environmental
practices in the fashion industry: the moderating effect of internationalisation and the
influence of collaboration. Production Planning & Control. 28(3). pp.190-201.
Marullo, G., 2016. George Simmel's contribution on fashion and economics.
McKeever, M., 2016. How to write a business plan. Nolo.
Sudha, M. and Sheena, K., 2017. Impact of influencers in consumer decision process: the fashion
industry. SCMS Journal of Indian Management. 14(3). pp.14-30.
Vanderploeg, A., and et.al., 2017. The application of 3D printing technology in the fashion
industry. International Journal of Fashion Design, Technology and Education. 10(2).
pp.170-179.

Yang, R., and et.al., 2020. Everlane: a ‘radically transparent’fashion company disrupting the
industry. International expansion strategy.
Online
UK fashion industry statistics. 2018. [ONLINE] Available through: <
https://fashionunited.uk/uk-fashion-industry-statistics/
