Chemistryfolk: Fashion Retail Business Plan and Market Analysis Report

This report provides a comprehensive business plan for 'Chemistryfolk,' a new fashion retail brand focusing on fusion wear. It analyzes the Indian fashion market, highlighting growth trends, consumer behavior, and the impact of international brands. The report outlines 'Chemistryfolk's' business opportunity, including its design concept, marketing strategies (product, price, place, and promotion), and brand recognition strategies. It further evaluates the future of retail, conducting market research, competitor analysis, and a Porter's Five Forces analysis to assess challenges and opportunities. The report also includes segmentation and targeting strategies, promotion plans, and a financial analysis, projecting revenue, assets, and financial statements. The brand aims to establish itself through pop-up stores and e-commerce platforms, targeting a broad demographic with a focus on innovation and customer-centric approaches. The report is a detailed assessment of the fashion retail business landscape and the potential of 'Chemistryfolk' within it.

FASHION

Contents
Introduction................................................................................................................................2
Business opportunity for “Chemistryfolk” retail.......................................................................3
Future facing retail evaluation...................................................................................................7
Market analysis........................................................................................................................13
Cost Analysis...........................................................................................................................14
Brand management...................................................................................................................15
Financial analysis.....................................................................................................................17
Conclusion................................................................................................................................20
References................................................................................................................................21

Introduction
The report brings out a discussion on fashion industry and market factors that have made
significant changes in last few years in India. Textile industry in India is one of the oldest
industry. The fashion retail market demonstrates that there is a 6% growth each year, which
has reached to 865 billion and soon it will cross USD 490 billion by 2023 (Technopak, 2019).
With increasing personal disposable income and increasing living standards, it is perceived
that Indian customers has created new class of consumers where retail fashion sector is
exposed to international fashion and corporate events too. This exposure has led to the
introduction of international brands such as Zara, Louis Vuitton, Armani, Gucci, Versace,
Fendi, and Burberry (Business of fashion, 2019).
(Source: Singhal, 2018)
On the basis of above demand and fashion trends, this report has emphasised on creating a
new brand, which is based on fashion named as “Chemistryfolk.” The concept of
“Chemistryfolk” is based on fusion of traditional and western clothes. Aim of the

organisation is to work according to the taste of the customers so that they can change their
looks and feel confident. The primary goal is to cater wardrobe of the customers with
accessory pieces so that it can give them continuous assistance with personal opinions. The
structure of “Chemistryfolk” is same as the international brands, which is “pop-up stores.”
The reason behind the creation of pop-up store is the easy promotion of products. The
objective of report will discuss how the Chemistryfolk will establish unique retail clothing
businesses, attain greater market share, achieve profits within the year, continuously increase
the total customer base, and extend through reinvestment. Furthermore, the Chemistryfolk
wants to grab the opportunity of increasing profitability in the fashion retail industry. The
report will elaborate several retail challenges through porter five forces model and the level
of competition of retail fashion industry (Bachousi, 2019). The Chemistryfolk can maintain
its efficiency in competition through e-commerce platforms leading to competitive product
development, production, supply chain and marketing.
Furthermore, there is a financial analysis of Chemistryfolk through revenue required, assets
required, Projected P & L account, and projected Balance sheet. This plan will help to
achieve financial management, which can lead to higher profitability. Further, in order to
expand, the Chemistryfolk uses the concept of pop-up store to advertise and attain brand
name among huge audience.
Business opportunity for “Chemistryfolk” retail
Design-
As per the Indian Ministry of fashion and Textile, there are some design requirements-
1. Permanent exhibition space
2. Restaurants, night clubs, and lounges
3. Studios for picture shoots

4. Private Galleries
5. Launching centres
6. Runway ramps for the fashion weeks
7. Luxury stays for models
8. Administration offices
9. International flagship and display spaces
10. Auditorium to conduct conventions (Chen, Cheung, and Tan, 2018).
Marketing strategies-
Marketing mix is used to design the brand and identify the marketing strategies-
Product strategies-
“Chemistryfolk” have been exploring alternatives towards the standard material with the core
players focusing on sustainable substitutes, which include re-engineered and high rated
material. Several companies have been becoming pressure on fashionable organisations to
become proactive (Datta, Ailawadi, and Heerde, 2017). The company will offer Bestselling
products, Medium selling product, and Low selling products. For instance- Cool T-shirts,
Floral Shirts, Smart backpacks, Sling bags, Beach clothing, Shapewear, Party clothes,
Specific lingerie, Bodycon Dresses. Other produts includes Indo-Western, Hats Wide pants,
Footwear, Carnival clothes, Jeans, Kids Wear, and Fusion wear (Datta, Ailawadi, and
Heerde, 2017)
Price strategies –
The Chemistryfolk`s corporate goals are expanding through store expansion in huge cities
especially highly populated and high-income level to maintain same level of standards and
collection. The organisation, which is maintaining total costs for pop-up. One can pull off
short-term investment for pop-up store for $1500.

Place strategies-
Chemistryfolk” Fashion Fusion retail house can establish total costs of “30 days store as Pop-
up” at Indian rupee 30000 at places like Delhi, and Mumbai.
(Source: Kundicevic, 2018)
Promotion strategies-
The Chemistryfolk has to create and build its brand image among the customers.
Chemistryfolk” Fashion Fusion retail house will have limited stores visible across globe
because of its entry in fashion industry. The organisation will use usage based positioning
strategies to highlight customer`s centric approach while satisfying the wants of customers all
over the world. To assist the Indian fashion industry, business will be promoted through
fusion wear. With corporation to the space, which can finally nurture and assist in upcoming
fashion designers in India to allocate them marketing support. The Chemistryfolk decides to
create a personalised and customised portfolio set, which can assist to accomplish top trends
such as innovation, digitalisation, and fashionable (Ismail, 2018).

(Source: Kundicevic, 2018)
Brand recognition
Brand recognition is developed as fashion hub with a mixture of business, culture, fashion,
entertainment, and leisure with unique identification and recognition. The goal can be
developing an appropriate space. It has to permanent to high ending for the Indian fashion
while integrating it to the varied aspects (Yu et al., 2018).
Beyond china-
China has continued to avail exciting opportunities as it avails leading role in global fashion
industry. Successful players has become over-reliant on China for the raw material because of
its low cost availability. For the next generation, traditional engagement models struggle for
social media platforms (ICT) where players depend on rethinking the strategy and then
finding several ways to maximise the return earned through marketing. Content is an
important ingredient for every market by using persuasive calls towards the action.

The Chemistryfolk can offer bestselling products, medium selling products, and low selling
products. These products will include items that include sophisticated and modern fusion
based items for medium and high-income level people.
Bestselling products Medium selling products Low selling products
Cool T-shirts Floral Shirts Theme based such as-
Smart backpacks Sling bags Beach clothing
Shapewear Party clothes Specific lingerie
Bodycon Dresses Indo-Western Hats
Wide pants Footwear Carnival clothes
Jeans Kids Wear
Fusion wear
undergarments
Future facing retail evaluation
Market research with analysis of fashion trends-
The economy of nation seemed to be over 6 percent CAGR for the last 25 years. Personal
consumption is the primary driver of the economic situations, which expects 975 Euros by
the end of 2022. Several challenges in this sector includes increasing consumerism, creation
of unique experience, and inventory management (statista, 2019).

(Source: statista, 2019)
The above graph depicts the increasing demand of apparels and clothing in the Indian
economy, which has been increasing from 2016 to 2017 and 2023. Domestic textile was
nearly US $96245 billion in 2017, US $102153 billion in 2018 and it is expected that it will
increase more than US $145831 billion by 2021 (statista, 2019).
Increasing Consumerism- Customers have several options from which one can select
products, which they specially like. Most importantly, consumers can access many channels
from the retail stores including e-commerce platform. For instance- customers demand
apparels visible on media, which is carried by the favourite celebrity (Warnaby, and Shi,
2018).

(Source: IZest, 2019)
Porter five forces analysis will analyse the challenges faced by the chemistryfolk”-
Threat of new entrants
A business must have large investment for its start-up with product differentiation. Start-ups
often face issues in making its brand identity. The cost of switching is quite high. The start-
ups will need investment to access online platforms. Accessibility to the raw material is quite
limited (Ge, and Li, 2019).
Bargaining power of customers
The consumers are quite sensitive in terms of price. Therefore, bargaining power of
customers is quite high as they are extensive range of companies to buy clothes. There are
many substitutes and the switching cost is quite high (Abalkhail, 2019).

Consumer preferences in fast moving world have changed a lot. Players in the retail fashion
sector, which find it difficult when creating unique experiences for customers and also gain
customer attention. Brands have obtain superior loyalty as it can create positive engagement
in customers. Retail stores fashion use numerous tools, which include customers in availing
in-store entertainment, and implement the dress into its look by using models. Retail stores
focus on store interiors, which can improve overall customer journey leading to greater sales
(Abalkhail, 2019).
Bargaining power of suppliers-
The bargaining power of suppliers is also high as there are many local suppliers to
multinational organisation, which they transform into a quality cloth (Abalkhail, 2019). The
switching cost is quite high as the supply chain has to be effective, which can add value to
raw material and finally to the product.
Competitive rivalry-
The number of competitors is high such as Shoppers stop, Westside, lifestyle, H&M, and
Gucci. The level of industry growth is fast as this account for nearly 10 percent of the total
GDP. This competitive power of competitors needs chemistry to become competitive
(Abalkhail, 2019).
Threat of Substitute goods-
This industry has the closest availability of the substitutes. This may include max, Lifestyles,
and Big bazaar. There is almost a negligible difference of prices between the product and its
substitutes.
Segmentation and targeting

The business is a new venture under development who employs both men and women aged
between 18 to 50. The Chemistryfolk undertakes to make marketing programs and other
strategies. Designing the acts to reach the customers include selecting proper publication,
having the objective for the advertisement, include audience, inform buyers, illustrate
customer`s attention, attracting them with good and reasonable offers. Segmentation is done
on the basis of-
Geographical segmentation Metro cities where fashion trends are
adopted quickly especially Delhi, Mumbai,
and Kolkata.
Demographics segmentation men and women aged between 18 to 50
Both job as well self-employed people
Behavioural and Psychographic
segmentation
Lifestyle preferences, loves to look trendy,
and stages of life ranging between 18-50
(age).
The Chemistryfolk has to be creative in regards to the unusual avenues such as fax-on-
demand, online marketing, and fax newsletters. Promotions will compare results, examine,
track the responses, and measure the profitability to check whether these promotions are
profitable or not. The plan for advertisement will include-
1. Advertising budget is equal to the nearly 4-5 percent of projected sales. Establishment
of target market and customers for broadcast advertisement. Setting rough budget as
advertisement broadcasted expense.
2. Contact the sales manager to advertise them on TV and other radio stations.
Communicating to business and collecting information from the audience to deliver

products. Most attractive deal is on the basis of most cost effective way to reach
audience. Direct mail program will be created with the available resources from DMA
(direct Marketing Association).
(Source: Bachousi, 2019)
3. One can target the advertisement focusing on the possibility to media, which can
ultimately reach the audience. Other sources of marketing will include brochures,
postcards, sales letters, newsletters, and the wide variety of marketing materials. Point
of purchase will appear in all the stores including pop-up store, where it is designed to
affect the buying behaviour of the customers. POP advertisement can take several
forms with instance of counter cards, window displays, floor standing, animated
displays, streamers, and banners.

(Source: IZest, 2019)
Market analysis
Competitors
In the current situation, it is seen that top stores in the world include John Lewis, M&S,
Hermes international, Prada, Versace, Gucci, Louis Vuitton, Burberry, H&M, New Look, and
Zara. Competition in this industry always remained a tough task as the competitors have such
a long history (since 1947 and 1975).
Marks and Spencers- The Chemistryfolk initiated online video with Marks and Spencers
website. Great example of e-commerce in practises reveals that compelling videos increase
sales. The Chemistryfolk is well known for its innovative method, which retailer keen to
derive methods of increasing online business when retaining the customers visiting the site.
Engagement level are refined and measured with an aim to enhance quality of editorial with
the rate of conversions (Thompson, and McLarney, 2017).
To maintain the brand consistency where the channels are being managed by central
commissioning team, which consists of staff from M&S. The team plans future content and
measure consumer response.

In order to overcome the competition rivalry, it is seen that Chemistryfolk” Fashion Fusion
retail house offers fusion style of apparels. Chemistryfolk” Fashion Fusion retail house will
offer exclusive clothing collection of stylish outerwear and accessories for women. In-house
team with fresh talent from renowned colleges work under experienced designers to get
exclusive coordinated shoes, accessories, stylish clothes for females with contemporary edge
in fashion retail industry (Yu et al., 2018).
Cost Analysis
As the range will target medium and high-income level people or customers. The range for
each item is 30-35 percent above the costs incurred by the Chemistryfolk at different level of
Chemistryfolk. Furthermore, the items will include items for high profile and presentable
clothes at permanent exhibition space, Restaurants, nightclubs, and lounges, Studios for
picture shoots, private Galleries, Launching centres, Runway ramps for the fashion weeks,
luxury stays for models, Administration offices, International flagship and display spaces,
and Auditorium to conduct conventions (IZest, 2019).
Range proposals-
Bestselling products Medium selling products Low selling products
Cool T-shirts Floral Shirts Theme based such as-
Smart backpacks Sling bags Beach clothing
Shapewear Party clothes Specific lingerie
Bodycon Dresses Indo-Western Hats
Wide pants Footwear Carnival clothes
Jeans Kids Wear
Fusion wear
undergarments

As the range has been offering all types of clothes including its specialisation such as best
selling items, medium selling items and low selling items. The price level of bestselling
product has moderate pricing, which is somewhere equal to other medium brands.
Brand management
Options-
The options will include clothes ranging from regular to occasional with fusion wear. It will
include cool- T-shirts, Smart backpacks, Shape wear, Bodycon Dresses, wide pants, Jeans,
Fusion wear, and undergarments. Furthermore, medium-selling products such as Floral
Shirts, Sling bags, Party clothes, Indo-Western, Footwear, and Kids Wear. Low selling
products will include Beach clothing, Specific lingerie, Hats, and Carnival clothes (Klein et
al., 2016).
Styling
The stylist of the brand are available in the store itself. The pop-up store will also have
designers and stylist. Moreover, the brand management has become important in this
competitive world.
Product mix
Product mix is the group or set of items that has to be offered to the customers, which include
luxury market. With increasing challenging market conditions, luxury goods and favouring
fashion newness offerings, and show the sign of recovery. Luxury industry works in a
fluctuating and volatility with diplomatic. Most importantly, luxury demand. The product will
include genre, sizes, style, fashion, service, support, framing, options, prints, and originals.
The brand identifies high and medium brand level in a practical way by offering fashionable

with high quality. The Chemistryfolk uses repair and support in regards to the return policy
within few days. Services will include chargeable, free delivery (inclusive of return policy),
and with the use of internet (Klein et al., 2016). The product is central point where marketing
energy should focus. Funding out how it is important to make the product availing them
manufacturing and finance department not being the responsibility of marketing function. It
is related with what actually the product means to customer. Consumer continued to find out
the polarised spending on the brands, orienting the luxury items towards mass-market brand.
Pop-up concept
(Source: Bachousi, 2019)
Pop-up store is short term and temporary retail, which uses physical space while creating
long lasting impression with the potential customers. Pop-up store can be very effective for
Chemistryfolk” Fashion Fusion retail house to advertise and get attention of the customers. It
is an effective method to allow the people to explore the fashion industry (Starkey, and

Parsons, 2019). Regular store and many other brands chose to remain unique and engage in
physical shopping experience. There are many considerations to attract people of medium
and high-income level group-
1. Manage as per the special events- This technique will allow the organisation to check
the demand and preferences of the fusion wear, which has always remained speciality
of the Chemistryfolk. Homemade brand “Fusion wear” will avail the physically tested
pop-up store. Furthermore, the organisation will be able to open more stores with
maximum collection of what was actually preferred during sale (Promotional offers)
(Kimani, and Mutsotso, 2018). Introducing the brand during peak sale brand is the
best time to open pop-up for the smart move. Pop-up store can drive retention even
after the shop is closed.
2. Using the creative marketing methods- The tool is appropriate to validate the
product`s demand and supply where real product validation happens only when
customer pays. Each segment of range offered by the Chemistryfolk has been
manufactured in small proportion to test at pop-up and look after the demand of the
customers (Kimani, and Mutsotso, 2018).
Financial analysis
The financial plan comprises of three estimated financial statements such as income
statement, cash flow statement, short-term projections, and long-term projections. Short-term
projections includes weekly plans, and monthly plans. Long-term projections will include
property, unsold inventory, outstanding invoices, cash in hand, and liabilities. This sector will
include projected expenses, projected cash flow statement, projected balance sheet, and
projected profit and loss account (Zimakova, Kovalevskaja, and NI, 2016).
Start-up plan and cost-

Start-up costs are the expenses, which are incurred before the organisation starts running.
Other incurring expenses include registration charge, promotional actions, preliminary
expenses, and employee training. Realistic start-up costs include core elements of financial
plan. Start-up expenses are incurred prior to launch and further, first year expenses are
incurred after launching and appearing it on P&L account. Start-up costs are the expenses,
which are launched without bringing any revenue (Li, and Zhang, 2017). Non-recurring costs
include setting up business, accountant fees, and employee training. Start-up assets are the
part of start-up costs, which one need to incur especially long-term assets include equipment,
machinery, inventory, plant, ready to start and selling goods and services.
Expenses Amount ($)
opening ceremony 3,000.00
Advance Rent 2,000.00
Equipments 2,000.00
Advertising 700.00
Carpet 1,200.00
Legal and Accounting 300.00
Floor tiles 900.00
Travel 4,000.00
Office supplies 350.00
repair and maintence 6,000.00
Insurance 200.00
Wages and salaries (3 workers*$400) 1,200.00
cash 1,00,000.00
Total 1,21,850.00
Start-up costs
Projected Profit and loss account
The income statement is a formal documented to prepare through accounting and finance
officers in the Chemistryfolk. It will provide details of the revenues and associating them
with owners and investors. Projected income statements will allow investors to compare it

with organisational performance to other companies (Zimakova, Kovalevskaja, and NI,
2016).
2019 2020 2021 2022 2023
Sales 24,80,000.00 $27,28,000 $32,73,600 $39,28,320 $47,13,984
Miscellaneous income $2,48,000 $2,72,800 $3,27,360 $3,92,832 $4,71,398
A. Total $27,28,000 $30,00,800 $36,00,960 $43,21,152 $51,85,382
B. Cost of Sales $14,88,000 $15,00,400 $18,00,480 $21,60,576 $25,92,691
C. Gross Profit (A-B) $12,40,000 $15,00,400 $18,00,480 $21,60,576 $25,92,691
D. Operating Expenses
Salary $1,200 $1,380 $1,656 $1,904 $2,381
Rent $12,000 $12,600 $13,230 $13,892 $14,586
Utilities $2,000 $2,100 $2,205 $2,315 $2,431
Insurance $500 $525 $551 $579 $608
Depreciation $400 $440 $462 $485 $509
Marketing $10,000 $10,500 $11,025 $11,576 $12,155
Maintenance & Repairs $5,000 $5,250 $5,513 $5,788 $6,078
Other $2,500 $2,625 $2,756 $2,894 $3,039
Total $33,600 $35,420 $37,398 $39,434 $41,786
Operating profit $12,06,400 $14,64,980 $17,63,082 $21,21,143 $25,50,905
Less: Interest $15,000 $17,500 $20,000 $22,500 $25,000
Profit before tax $11,91,400 $14,47,480 $17,43,082 $20,98,643 $25,25,905
Less: Tax @ 30% $3,57,420 $4,34,244 $5,22,925 $6,29,593 $7,57,772
Net Profit AT $8,33,980 $10,13,236 $12,20,157 $14,69,050 $17,68,134
"Chemistryfolk” Fashion Fusion retail house
Profit & Loss Statement
Amount ($)
Projected Balance sheet
Balance sheet shows the financial estimations of assets, capital, and liabilities. It will help to
understand where P&L shows performance of month, quarter, and year (Li, and Zhang,
2017).
Assets 2019 2020 2021 2022 2023
Current $5,00,000 $6,00,000 $7,20,000 $8,64,000 $10,36,800
Fixed $7,00,000 $7,00,000 $7,00,000 $7,00,000 $7,00,000
Other assets $1,40,000 $1,00,000 $1,00,000 $1,00,000 $1,00,000
Total Assets $13,40,000 $14,00,000 $15,20,000 $16,64,000 $18,36,800
Liabilities
Current $3,00,000 $3,60,000 $4,32,000 $5,18,400 $6,22,080
Non-Current (Borrowings) $3,00,000 $3,50,000 $4,00,000 $4,50,000 $5,00,000
Total Liabilities $6,00,000 $7,10,000 $8,32,000 $9,68,400 $11,22,080
Equity $7,40,000 $6,90,000 $6,88,000 $6,95,600 $7,14,720
Total Liabilities & Equity $13,40,000 $14,00,000 $15,20,000 $16,64,000 $18,36,800
Balance Sheet
Amount ($)
"Chemistryfolk” Fashion Fusion retail house

Conclusion
From the above discussion, it can be seen that the Chemistryfolk will start as a retail fashion
store with the specialisation in fusion wear both in terms of western wear, and in terms of
occasional wear. The Chemistryfolk plans to grab the emerging business opportunity in
Indian fashionable market. The report has the projected balance sheet, profit and loss account,
and estimated start-up costs for the business. The opportunity includes the create a stake in
the Customer`s mind. This Chemistryfolk aims its specific designs including fashion, trends,
implementation, and the marketing strategy. The brand management includes the styles,
patterns, product mix, options, prints, and originals with the pricing strategy, which the
Chemistryfolk will charge from the customers. Furthermore, market analysis includes trend
analysis of the fashion industry, the identification of the target market and segmentation
based on income groups and their living standards. There are several challenges faced by the
fashion retail industry such as increasing challenges in fashion industry. Furthermore,
marketing is important, as the Chemistryfolk has to focus on pop-up stores and the items
being offered there with appropriate accessories and wearables in terms of textiles. The
current business trends in the fashion industry elaborates that cost analysis of every brand,
which includes start-up costs and managing the finance through equity and appropriate debt.
This has finally helped to create the business plan in an effective manner.

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