TEAM MEMBERS: AVISHEK SIKDER JINUJITH MOHAN JISHA JOHNY KRIPA K.

K PRATHIBHA PRAKASH UNNIMAYA SHIV

AJI

EXECUTIVE SUMMARY
Todays kids are more fashion conscious, and are ready to experiment with clothing. Increase in the amount of disposable income, and retail blitz has brought a sea change in the Indian kids apparel market. With kids wear being considered as a part of the lifestyle segment and a strong emphasis is being placed on brands, this segment proves to be a potential business. Market for kids apparel is the fastest growing industry in India. Manufacturers are coming up with fancy materials targeting kids who are more interested in the upcoming fashion trends. Childrens garments are available in various forms and designs.

 Vision To be distinguished kids wear retailer known nationwide for the quality of products setting new trends and lifestyles. Mission To offer continuous value added products to our customers. To accomplish this, we focus on exceptional design, innovation, quality, convenience and interactive communication

Company summary
Owners background Started with six members who were involved in textile industry. Fresh MBA graduates with a common interest gathered together to start a kids wear retail store. Focused mainly on targeting the large mass of kids in India.

Products
- Girls' Jeans & Tops - Girls' Sweaters & Jackets - Girls' Dresses & Pants - Outfits -Boys' Jeans & Tops - Boys T-shirts & shirts - Boys' Sweaters & Jackets - Boys' Overalls & Pants - Gifts & Accessories

Target audiences
Twinkle Kids Wear (TKW) is a retail store for kids wear with good quality and latest trends available. primary targetage-5-11 Secondary targetsfamily: Our target markets or kids clothing are parents(mother/father)

SWOT Analysis
Strength:
Huge Product Line with variations. Business will have longer hours and better prices as compared to competitors. Discounts are available for bundle buying. Expertise in getting new products to the market quickly Expertise in providing good customer service Online selling could be a competitive edge over similar rivals Customization available for individual customers

Weakness:
New in business as compare to rivals. Huge capital required to start business as credit is not easily available from supplier in start. Marketing expense in the start will be huge, to establish brand name required lot of advertising.

Opportunity:
Seasonal business: In summer demand is very high as new academic session starts and also a wedding season Sector is growing fast in state and in the area our business is operating Girls wear demand is huge so adding value in this category will be the great advantage High birth rate since past years is another opportunity for kids wear section Animated movies increased the demands and popularity of printed shirts for kids

Threats Competition is high and big retail chains introduced their kids shops in the city and penetrating in market People are more conscious for pricing and going for discounts.

Market analysis summary

In India, the market for kids wear is witnessing rapid growth. Currently, the kids wear segment reflects huge opportunities for growth in the Indian apparel retail segment, as compared to mens and womens wear segments. Continuing baby boom is kicking up business opportunities for both domestic & foreign apparel makers. Children are growing quickly and are generally rough on clothing, so parents tend to look at apparel that are both disposal and functional. The market size for kidswear is around Rs 6,000 crore of which only Rs 180 crore is branded. The market is growing at 22 per cent. The kids segment contributes 30% of the rs.43000 cr ready made apparel market.

 According to India apparel report 2008 the size of kids wear market is estimated to be at Rs 30510 crores which will further grow to reach Rs 45,000 crores by 2013, with branded apparels contributing to a major share. Urban kids apparel market comprises about 60% of the total kids wear market. The market size for kidswear is around Rs 6,000 crores of which only Rs 180 crore is branded. The market is growing at 22 per cent. The kids segment contributes 30% of the Rs 43,000 crores ready made apparel market.

Major competitors in Indian kids wear market

Gini and jony Lilliput Catmos Zapp Weekender Ruffkids Lil tomatoes

Palm Tree Levis sykes jr Spykar Freedom wear Benetton kids Colorplus junior Planet kids Sach

Marketing strategy
Basic strategy of our business is to launch kids wear by the next two months. Initially we will launch normal kids wear which will cater the needs of masses. By the end of the year, we will launch customized products to cater to the need of every individual customer. Later on, school accessories and school wear are also in the pipe line

Sales strategy
Location: Trichur center, round road. TKW will sell products by following methods: Retail Store: We will open stores all over India. Online Selling: we will offer our main products on the website which will provide convenience to customers.

Strategy and implementation strategy

Twinkle will focus on becoming the coolest place in the state to shop for alternative clothes, shoes, and baby-oriented products.

Competitive edge
The major brands are expensive and not distinctive enough to satisfy the ever changing taste of our target customers. Twinkle offers products that are just ahead of the curve and so affordable that our customers will return to the store often to check out whats new.

Management summary
MR.JINUJITH MOHAN , owner of Twinkle, will manage the daily operations of the store. Twinkle kids wear operates with 5 people staff. It helps them controlling budget and decreasing overhead expenses as well.

FINANCIAL PLAN
Startup Expense Summary Twinkle Kids Wear Sources of Capital Investment requirement Total Investment Startup Expenses Retail store development In-store Staff Capital Expenditures Consulting Services Promotion Total Start-up Expenses 346,000 290,000 150,000 90,000 5,000 881,000

1,000,000 1,000,000

Profit & loss projection(3 years) (in rs)

Year 1 Sales Direct Cost of Sales Total Cost of Sales Gross Margin Gross Margin % Expenses Payroll Sales and Marketing and Other Expenses Depreciation Utilities Insurance 54,000 30,000 7,140 6,000 6,000 62,000 40,000 7,140 6,000 6,000 70,000 50,000 7,140 6,000 6,000 196,650 51,110 51,110 145,540 74.01% Year 2 242,000 62,000 62,000 180,000 74.38% Year 3 275,000 73,000 73,000 202,000 73.45%

Rent
Payroll Taxes

24,000
8,100

24,000
9,300

24,000
10,500

(in rs) Total Operating Expenses 135,240 154,440 173,640

Profit Before Interest and Taxes EBITDA Interest Expense Taxes Incurred

10,300 17,440 4,480 1,746

25,560 32,700 3,560 6,600

28,360 35,500 2,600 7,728

Net Profit Net Profit/Sales

4,074 2.07%

15,400 6.36%

18,032 6.56%

Projected Balance Sheet

(in rs)
Assets Current Assets Cash Inventory Other Current Assets Total Current Assets Long-term Assets Long-term Assets Accumulated Depreciation Total Long-term Assets Total Assets 5,000 7,140 (2,140) 52,382 5,000 14,280 (9,280) 65,547 5,000 21,420 (16,420) 74,631 50,157 3,465 900 54,522 53,048 20,879 900 74,827 66,290 23,861 900 91,051 Year 1 Year 2 Year 3

(in rs)
Liabilities and Capital Year 1 Year 2 Year 3

Current Liabilities Accounts Payable Current Borrowing Other Current Liabilities 7,008 0 0 14,373 0 0 15,025 0 0

Subtotal Current Liabilities

Long-term Liabilities Total Liabilities Paid-in Capital Retained Earnings

7,008
40,400 47,408 10,000 (9,100)

14,373
30,800 45,173 10,000 (5,026)

15,025
21,200 36,225 10,000 10,374

Earnings
Total Capital Total Liabilities and Capital Net Worth

4,074
4,974 52,382 4,974

15,400
20,374 65,547 20,374

18,032
38,406 74,631 38,406