“Empowering the young women of Richmond, no matter who they are, through providing timeless staple pieces.”
The Ask
Create a professional business plan for a new fashion company. You will pitch your company’s UVP, brand strategy, product offerings, visual merchandising strategy, and a financial forecast.
The Process
With my partners, Courtney Deviney and Megan Piston, we created “Capsule Closet”, a womenswear boutique centered around timeless fashion and sustainability.
Year 1 Goals
Introduce a loyalty program, expand our online presence, and increase overall brand awareness in Richmond.
5 Year Goals
Diversify our product offerings with more sustainable pieces, introduce international shipping options, and open another retail location in a neighboring city.
UVP
Our UVP lies in offering affordable and timeless fashion pieces for women. Capsule Closet operates in the women's fashion retail industry, which is characterized by its constantly evolving nature and growing emphasis on sustainability, thus aligning with the brand's commitment to capsule wardrobe fashion.
Product Overview
Our collection is composed of versatile pieces that can be diversified through styling, allowing young women to dress them up or down based on the occasion. This multipurpose factor is what is most important to our customers, especially when presented in an affordable and accessible way. Our opening inventory cost of $24,000 will be allocated to tops, bottoms, dresses, outerwear, and accessories from vendors such as Sky to Moon, Kiwi, and Artemis Vintage.
Financial Plan
With annual sales of roughly $241,000 and annual fixed costs of $74,000, our gross profit is 44.3%. As for our pricing, our outerwear peaks at $95, bottoms at $75, tops at $55, dresses at $45, and accessories at $25. We will have $74,000 in sales over breakeven and over $32,000 in profit dollars, earning us a net profit of 15%. Roughly $61,000 will need to be allocated to pre-opening expenses.
Customer Overview
Our target market is a diverse group of 18-28 year old single females living in Richmond, Virginia, and neighboring cities. Mainly a part of Generation Z, these individuals are making significant life transitions in both housing shifts and career changes while figuring out their personal identities.
Industry Overview:
Capsule Closet is a womenswear boutique entering the apparel retailing industry in Richmond, Virginia. With their unique charm and curated selection, boutiques have been an escape from the usual brick-and-mortar store. These small, specialized shops offer a world of discovery for fashion enthusiasts looking for unique and quality styles. Consumers in Richmond are seeking more personalized shopping experiences, which Capsule Closet will offer them.
Want to Read More?
The Result
This project allowed me to combine my interests in entrepreneurship, fashion marketing and finance. I improved on my abilities to work with others and present to my peers in a professional way. I learned how to properly conduct industry research, create a company UVP and marketing plan, as well as a full year financial plan with projected earnings. Though it was a strenuous project, I now feel confident that I could pitch my own brand in the future.