Unique Cloth Designs for U-Design House

U-Design House is an online fashion business that creates customized clothing with excellent quality fabrics. The company faces risks such as uncertain customer demand, availability of fabrics, and the need to work overtime to meet deadlines. To mitigate these risks, U-Design House will maintain a strong connection with raw materials suppliers, hire skilled tailors, and establish a home office and store. The business plan aims to create value through intellectual property, customized designs, and in-house collections. With a target market of mid-income level ladies, the company plans to source high-quality materials and accessories at low prices and provide customers with a library of upfront trendy fabric and designs for selection.

Small Business Development
Group Business Plan
By
Student ID:
000909349
000950888
000948206
000951085
000948638
Tutor: Dr. Lewis Lee
Course: BUSI1494 Small Business Development
Coursework: Group Business Plan
Date: 21 August 2024
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Table of Contents
Executive Summary
Chapter 1 Introduction 5
Chapter 2 Management Team 9
Chapter 3 Industry Analysis 12
Chapter 4 Market Analysis 14
Chapter 5 Marketing Plan 16
Chapter 6 Operations Plan 20
Chapter 7 Financial Plan 23
Chapter 8 Critical Risk Factors 26
Chapter 9 Conclusion 27
The Reference List 28
Appendix A: Peer Review 30
Appendix B: Action Plan 31
Appendix C: Presentation PowerPoint 33
List of Charts
Chart 1 Company Structure 9
Chart 2 Apparel Retailers Rank in Terms of Fashion & Value 13
List of Tables
Table 1 Opportunities Analysis 6
Table 2 Brief description of the business model 8
Table 3 The Primary Customer 14
Table 4 3 Years Plan 19
Table 5 Statement of Profit or Loss and Other Comprehensive Income 23
Table 6 Statement of Financial Position 24
Table 7 Cash Flow for U-Design House, Year of 2017, 2018 & 2019 25
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Executive Summary
In 2016 five people with passion hearts and purpose focuses on fashion
industry established a company called U-Design House. They think everyone
has own sense of touch for fashion and their beloved style so everyone can
become a fashion designer to design their unique clothing for themselves.
Therefore, they established a platform to provide technology to make quality
clothes with their own style with acceptable price.
U-Design House focuses on women’s apparel in the first year; we may expand
to men’s apparel and set up workshop for them in second and third year. Our
target customers are 30-55 years old female groups. We provide the service for
the customers to simply design their own unique style in a few clicks on our
website. They can enjoy a perfect fit with handmade, made-to-order clothing
created by skilled tailor.
We sell the clothes with acceptable price to ensure profitability and
sustainability by paying close attention to our pricing strategy. Customers can
design and then buy it on our website directly. The best approach to
advertising is by social media such as Facebook or magazines.
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Chapter 1 Introduction
U-Design House is a local fashion company that represents long-lasting and
own style since 2016. Founded in Hong Kong by five young people with
passion and purpose focuses on fashion industry.
That five young people love long-lasting fashion; however, they look around
the world they found same style with expensive price even with good quality.
Moreover, they found there are thousands of fast fashion brands are nibbling
the traditional fashion industry. Fast fashion at low price and poor quality,
cannot lead fashion trend and made a glut of clothes which are not necessary.
They perhaps everyone has own sense of touch for fashion and their beloved
style so everyone can become fashion designer to design their unique clothing
for themselves.
Therefore they established a platform to provide technology to make quality
clothes with their own style and with acceptable price.
Mission
The mission of the U-Design House is a representative of the long-lasting and
own style with high qualities in the world. U-Design House represents
creativity and stylish products that reflect eternal values, blend classic and
innovation, and let everyone become their own fashion designer and enjoy the
process.
Vision
U-design House's vision is providing the resources to create, produce and
promote their products and services through online platform to ensure the
development of each product style with respecting customer's lifestyle and
their autonomy.
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Opportunities
Our opportunities (Honeycutt et al, 2003) of fashion industry
Table 1 Opportunities Analysis
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OOPPORTUNITIES
- Fast fashion created environment crisis (Wicker, 2016)
- Fast fashion is deteriorating sources of the carbon emissions
that contribute to global warming. (Rosenthal, 2007)
- Most factories of fast fashion are located at Cambodia,
Malaysia, Vietnam or Thailand as employers of child labor
- Hong Kong Government support for SMEs (small and
medium enterprises since 2010
- According the program of SMEs provided over 50 thousand
positions at manufacturing industry (Support and
Consultation Centre for SMEs, 2016)

According the above opportunities, we think fast fashion will be faded out in
fashion industry in the future because the environmental crisis and the
problem of child labor that provides us an opportunity to enter the fashion
industry to promote the long-lasting wearing concept. Promotion is most
important part of our business plans to let customer know they can design their
own clothes with high quality fabric, classic and long-lasting wearing instead
of fast fashion.
We have strong mission to change the situation of fashion industry to balance
the fast fashion and tradition fashion. We all founders worked garment
industry before and understand the process of making clothing and we know
the channel to purchase high quality fabric. These are our competitive
advantage.
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Table 2 Brief Description of The Business Model
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Chapter 2 Management Team
Our management team consists of five members. Details of our experise and
experience are desribed below.
Chart 1 Company Structure
Adna Yip - Shop Manager
Ms. Yip has over ten years of working experencie in the role of sales
administrator in a manufacturing company. Ms. Yip has fashion sense and is
talented in fashion design. She will be responsible for online order status.
Once received the order, she will coordinate with the tailor and explain
customer’s specific requirements. She will monitor the production process to
ensure timely delivery of products and work with outsource IT support and
update our webpage on regular basis. Besides, Ms. Yip will also interact with
customers to get better understanding on their preferences.
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U-Design
House
Shop
Manager
Fabric
Merchandiser
Sales
Manager
Financial
Adviser
Office
Administrator

Annie Poon – Fabric Merchandiser
Ms. Poon has acted in the roles of company secretarial and executive secretary
in fashion industry and F&B companies. Ms. Poon loves ravelling, reading
and watching movies. Ms. Poon is a fashion fan and has established
connection with some local designers. She will be responsible for fabric
merchandise and communicates with local designers for potential co-operation
opportunities.
Patrick Lee – Sales Manager
Mr. Lee has 15 years of experience in sales and marketing and now serves as
Sales Officer of marine equipment and spare parts in a major shipping
company. He has extensive experience in fashion and handbags trading. He is
familiar with garment production process and has an acute touch on market
trend movements. Mr. Lee will be responsible for sales and marketing as well
as purchase of equipment e.g. cutting and sewing machines that are suitable
for our business size. Moreover, Mr. Lee will advise on the approach of our
mareketing strategies on our products.
Alice Liu – Financial Adviser
Ms. Liu served as an adminstrator in logistics, fashion and financial
companies in the past ten years. Ms. Liu is interested in exploring e-commerce
business opportunities. She will be in charge of the office accounting work and
keep the shareholders of the company informed of the financial status of the
company. She will look after the inventory of fabrics and accessories to avoid
over-stock of materials.
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Irene Ho – Office Administrator
Ms. Ho is an experienced secretary in the service industry. She will be
responsible for the administration of the company such as equipment
maintenance and day-to-day operations. Ms. Ho will work closely with the
production line to enhance smooth delivery.
Our Management Team will strive to do the best to make the business
successful and commit ourselves to achieve the best result with high quality of
our products.
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Chapter 3 Industry Analysis
Fast fashion is described as rapid change clothing collections or current
fashion trends. The fashion retailers deliver fast and trendy designs to attract
younger generation who like to catch up with the trend and are willing to
spend much money to purchase new items in each season. This “continual
introduction of new products” concept is well received by customers.
Although the price of the fast fashion is quite low, the quality of materials is
not that high.
H&M, Zara, Uniqlo, Manager and Forever 21 are the most popular fast
retailers nowadays. These retailers can manufacture the clothes within a
couple of weeks from the start up, design concept stage to final production.
Their strategy is to produce the products in small batches that rarely stay in the
store for more than two weeks. This will make the customers purchase their
items as soon as possible.
Online fashion stores provide a platform where customers can easily choose
all the desired fabrics, colour, size, designs etc. according to their preferences.
All you need to do is to follow the instructions step by step by clicking the
mouse, make payment and re-confirm your order – then you will get your
clothes in a fairly short time. There are thousands of online fashion shops in
the market to serve the online shoppers.
Although fast fashion is common and has a leading position in the fashion
market, it does not mean it will meet everybody’s taste and requirements.
There are a number of people who prefer unique, traditional design, fine
workmanship with high quality products. For example, young professionals in
Hong Kong with middle income will spend two to three thousand dollars to
buy their clothes each month. In addition, there lacks fashion providers who
are specialized in tailor made skirts and/or costume dressing. Therefore, we
are confident that we can develop our business in this niche market.
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Chart 2 Apparel Retailers Rank in Terms of Fashion & Value
(Lutz, 2014)
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Chapter 4 Market Analysis
(Munizzo and Musial 2010) Women's market - a high degree of
segmentation, intense market competition. The positioning of the analysis is
mainly 30-55 years old white-collar workers, entrepreneurs, civil servants and
other female groups.
Top eight factors in deciding where to shop:
1. Has reasonable prices
2. Serves customers with respect
3. Provides quality products and services
4. Handles products and services returns fairly
5. Customers can always find what he/she want
6. Provides a wide variety of items (e.g. colors, sizes)
7. Has excellent customer services
8. Easy to shop
The Primary Customer
The primary customer is a professional woman. The main characteristics are
listed below:
Table 3 The Primary Customer
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Current Trends
• People like online shopping for convenience and value; growth of sales
on the Internet
• Overbuilding by brand stores and chain stores
• Demographics, tastes and fashions are continuing changes
• Dwindling appeal of the shopping mall
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Chapter 5 Marketing Plan
1) Details of products & services (Luther, 2011)
Our customized clothing tailor for women, bringing the company's dedication
to custom-designed and tailored unique styles clothing to customers.
We allow our customers to build their perfect clothing from premium quality
fabrics, and endless variations of patterns and details. Customers can enjoy a
perfect fit with tailor made clothing created by skilful tailor.
Our products and services are:
 Customers can design and order anywhere at anytime by App runs on
desktop and mobile devices.
 Every piece of dresses and skirt is made by order. There is no inventory
and warehouse that means no additional charges can be passed on to
customers.
 All dresses and skirts will be delivered in around two weeks
2) Product strategy
Who are we selling to?
Our target customer is 30-55 years old white-collar workers, entrepreneurs,
civil servants and other female groups.
What are we selling?
We provide the service for the customers to simply design their own unique
style in a few clicks on our website. They can enjoy a perfect fit with tailor
made clothing created by skilled craftsmen.
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3) Pricing strategy
We can ensure profitability and sustainability by paying close attention to our
pricing strategy.
We will calculate the cost of our products including fixed and variable costs,
courier costs, administrative costs and selling costs compared to the market
price of similar products to fix the price.
The pricing of our products is competitive:-
We will not use Low pricing strategy. Low price strategy cannot help us to get
strong market position. I Customer cannot understand our products as a
commodity, and obscures any value-add our offer. Larger competitors has
ability to have lower operating costs will destroy any small business trying to
compete on price alone. To avoid the low price strategy starts with looking at
the demand in the market by below factors:
A. Competitive Analysis: We look at the whole package they offer such as
serving price-conscious consumers or the affluent group and the value-
added services if any.
B. Ceiling Price: The ceiling price is the highest price the market will bear.
We will do a market survey to determine the pricing range. The highest
price in the market may not be the ceiling price.
C. Price Flexibility: Most customers in most markets are sensitive to the
price of a product, we assume people will buy the products if it is cheaper
and less will buy it if it’s more expensive. But price flexibility shows
exactly how responsive customer demand is for a product based on its
price..
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D. Consumer Channels:
The simplest and shortest distribution channel is a direct channel. A direct
channel takes goods directly from us to the customers. One of the newest
means of selling in a direct channel is the Internet that allows us to serve
our customers better and at a lower price than is possible using a retailer.
Business-to-Consumer Channels:
A business-to-consumer market, or B2C, is the sale of goods and services
from us to the end user. We will source the raw materials delivery from
wholesalers and sell the products at a higher price to the consumer, thus
earning a profit. The types of product features consumer’s desire
including value, convenience, efficiency in operation, dependability in
use, and/or improvement in earnings. In B2C marketing situations, we
must always:
Channels for Services:
Because services are intangible, there is no need to worry about storage,
transportation, and the other functions of physical distribution. In most
cases, the products will be delivered directly from us to the customers.
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E. Promotional strategy
The best approach to advertising is to think of it in terms of media and
which media will be most effective in reaching our target market. Then
we can make decisions about how much of our annual advertising budget
we are going to spend on each medium.
Our customers will know us through the following sources:
 Friends & Customers (word of mouth and email)
 Personal shoppers and stylists
 Women's Fashion Magazines articles
 Local press mentions and advertisements
 Travel and shopping books and websites
 Facebook page and advertisements
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Chapter 6 Operations Plan
U-design House’s business is about owned and online shopping of business
models. The official website launch an online shopping service since its
business start-up in 2016. We ensure to give customers the safe and greatest
online shopping experience and get a normally on-time delivery.
The online business of process design is to design appropriate capacity to meet
customers’ requirements. Online shoppers can easily launch their own design
clothing through our web-based book scrapping tool. As we plan, the target for
our workshop location is in Sham Shui Po District in year 2019. To review the
business operations including all the activities necessary for addressing
customer real needs. This includes improvements to our business activities to
better show the effective use of the resources and relationships relevant to
suppliers and delivering services and products to customers.
All of the operational activities achieved fashion market share in a series of
unique product ranges. We do brining heart of everything to our customers.
Our company has a strategy to deliver sustainable value to the resources and
making high quality, female clothing, offering customers through their
workshops and websites. In the planning and control session of e-commerce
business, its products and services of inventory record and can be calculated
the operation forecast and monitor the demand. The production nature of the
design environment, its clearly defined sourcing plans and procedure. Control
of production and service through set up standardized and monitored access
and the out of control possessing enhanced safety. (Marks and Spencer,
2016)
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 Plan deals with the day-to-day operations of U-Design House
We estimate we will receive 10-30 orders every day. Once an order is
received, the job will delegated to the team. We have a computer-based
scheduling calendar where all our members have full access to view the
daily operational activities, numbers of orders, available raw materials,
production progress etc. to monitor the daily workflow.
We do not keep fabrics in stock because we get it from the connection
suppliers within a day. Our planning system prints out the jobs daily to be
done the next day and the fabrics which are likely to be needed for each
job. This allows us to pick out the fabrics for each job so that a tailor can
collect them fat first the next morning without any delay. (Slack et al,
2013)
 An overview of the manufacturing plan (or service delivery plan) should
be followed by a description of the network of supplies, business
partners, and service providers that will be necessary to build the product
or produce the service the firm will sell
There are three types of work that we have to organize. The first is
performing alternation job on customers’ cloths. Customers will usually
want this done as soon as possible. The second type of job is routine
serving. It is usually not urgent so customers are generally willing to
negotiate a time for this. The remainder of our work involves working on
the unique cloths which our “designer” has bought-in. (Slack et al, 2013)
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 Any risks or regulations pertaining to the operations of the firm should be
disclosed
Customers may want extra work doing, and if tailor is sick, which
reduces our capacity. Occasionally fabrics may not be available so we
have to discuss with the customer to reschedule the delivery time. We can
cope with most of these uncertainties because we are flexible in terms of
the skills we have and also are willing to work overtime when needed. If
there is a chance that the clothing may not be ready for them, it should
not come as a surprise when they try and receive it. (Slack et al, 2013)
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Chapter 7 Financial Plan
Assumptions applied in calculating the forecast of the inventory level is lower
due to our strong connections raw materials suppliers. Our forecasting on the
payback period of U-Design House is 10 years and this availability and ensure
its return on capital is 5% because of this performance create value by
intellectual property. Customized Design and in-house collections can gives its
greater organizing and better control on the souring that how we make
amendment and meet customer love. Simplicity and teamwork while running
the business profitably for ours and investors. (Marks and Spencer, 2016)
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Chapter 8 Critical Risk Factors
We have to determine the way to make profit when we only serve such a small
amount of customers but not start our business into mass production.
Since we now talking about tailor made fashion with excellent quality fabric,
our main expense will be the salary of hiring a skilful tailor, this limits our
capacity of production and the number of orders.
Since we start our business online, but not a solid place, we have to find
somewhere to store our semi-products and finished products before sending
out to our customer, all of our living place will be considered as home office
and store, as long as when we will set up a real workshop. This will be an
obstacle to our business.
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Chapter 9 Conclusions
Nowadays, the online shopping industry is growing rapidly. According to a
study on online shopping behavior conducted by Nielsen in March 2016,
clothing occupies 52% of the category purchased in the past 12 months. (The
Nielsen Company, 2016)
Starting a business is no easy task especially the online fashion business.
Despite the various online fashion providers, giant fashion retailers such as
Zara and H&M also open their online shops. The competition is so fierce that
customers can always get whatever and whenever they look for from
thousands of online shops.
Although the online fashion market is almost satuated, we take a different
view on this. Unlike the fast fashion retailers, our business concept is to build
up our brand image that represens personal style with high quality and
uniqueness. Through our web-based tools, customers can choose the materials
and styles at their choice. This may also inspire their fashion design talents
and creativities.
Our target customers are mid-income level ladies with a monthly salary of
HK$25,000 to HK$30,000 who may spend over HK$10,000 on clothing each
year. We will source high quality materials and accessories at low prices at
different channels. Through our good connection with the local designers, we
will provide our customers with a library of upfront trendy fabric and designs
for selection. Given our expereince and enthusiasm in the fashion industry
plus our seamless co-operation, we are confident that U-Design House can be
a successful and susustainable business.
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The References List
Honeycutt, Earl D. et al (2003) Sales Management: A Global Perspective,
New York: Routledge
Luther, William M. (2011) The Marketing Plan: How to Prepare and
Implement It, 4th Edition, New York: AMACOM
Lutz, Ashley (2014) This Chart Shows Gap’s Biggest Problem [Online],
Available at: http://www.businessinsider.com/gap-shopping-brand-chart-2014-
5?utm_source=feedburner&utm_medium=feed&utm_campaign=Feed
%3A+businessinsider+%28Business+Insider%29 [Accessed: 31 Oct 2016]
Marks and Spencer (2016) M&S Annual Report 2016 [Online], Available at:
http://annualreport.marksandspencer.com/M&S_AnnualReport_2016.pdf
[Accessed: 27 July 2016]
Munizzo, Mark A. and Musial, Lisa Virruso (2010) General Market Analysis
and Highest and Best Use (Appraisal Essentials), Mason: Cengage Learning
Rosenthal, Elisabeth (2007) ‘Fast Clothes’ versus ‘Green Clothes’ [Online],
Available at:
http://www.nytimes.com/2007/01/24/business/worldbusiness/24iht-
clothing.4332207.html?_r=0 [Accessed: 22 Oct 2016]
Slack N., et al (2013) Operations Management, 7th edition, UK: Pearson.
Support and Consultation Centre for SMEs (2016) Small and medium
enterprises (SMEs), [Online], Available at:
https://www.success.tid.gov.hk/english/aboutus/sme/service_detail_6863.html
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[Accessed: 22 Oct 2016]
The Nielsen Company (2016) Things You Must Know About Hong Kong
Online Shoppers, [Online], Available at:
http://www.nielsen.com/hk/en/insights/news/2016/things-you-must-know-
about-hong-kong-online-shoppers.html [Accessed: 27 Oct 2016]
Wicker, Alden (2016) Fast Fashion is Creating an Environmental Crisis
[Online], Available at: http://www.newsweek.com/2016/09/09/old-clothes-
fashion-waste-crisis-494824.html [Accessed: 22 Oct 2016]
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Appendix C:
Presentation PowerPoint

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