Executive Summary    

Petite bourgeoisie is a term that originally referred to the members of the lower middle social classes that included shop-keepers and government employees in the 18th and early 19th centuries. In the 21st century in Shanghai, the modern definition of “Petite bourgeoisie” is that it is a class between the workingmen and the capitalists. Moreover, it stands for the consumption habits and tastes of the working class in particular.

According to the definition of the term, the boutique Petite Bourgeoisie is such a place that is full of special tastes as well as unique lifestyles. While in the United States “Petite bourgeoisie” may seem to be derogatory, in China it refers more to the growing middle class – something that Chinese people are very proud of as they have come into their own as far as the economy goes.

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Table of Contents Executive Summary

01. Brand Concept

Brand Story

Tagline

Mission Statement

Vision Statement

02. Demographic and Target Customer

Demographics

- China

- Shanghai

- Research on the economy

- Retail industry

- Fashion in China

- Fashion in Shanghai

Location Analysis

- Transportation

- Neighbors

Survey Interpretation

- Demographics

- Shopping habits

Customer Profile

Online Store

03. Competitive Analysis SWOT analysis Competitors Competitive Advantage Brand Positioning 04. Company Structure & Operational System Ownership Organizational Chart Abilities & Responsibilities Award System & Salaries Store Policies 05. Marketing Plan Marketing Strategy Marketing Buzz Brand Events Membership Advertisements - Fashion Magazines - Local weekly magazine - Fashion Blogs - Catalogs - Chinese “Yelp” Spokesperson Return policy

06. Product Strategy

Brands

- Fujifilm

- Nathalie Garçon

- A – ZA

- BABYGHOST

- D:FUSE

Brand philosophy

Categories of Products

Pricing

Vendor’s Information

Product Exhibition

 

07. Corporate Identity Systems

LOGO

Packaging

Hang Tag

Business Card

Visual Merchandising

- Exterior Design

- Window Display

- Floor Plan

- Website

09. Financial Plan

Summary

Start Up

Assortment Plan

Profit and Loss Analysis

#ree Years Sales Plan

Cash Flow Forecast

Loan Payment

 

10. Appendix

 

11. Resume & Autobiography

 

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01. Brand Concept  

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Petite Bourgeoisie originally comes from 18th century Europe. It was specially created for the class that was

composed of shopkeepers and government employees. In addition, at that time in Europe there existed

sumptuary laws. Sumptuary laws were laws that were enacted to make sure that the lower classes dressed in a

di$erent, less opulent manner than the higher classes.

#ese no longer exist legally but logos and brands have taken their place.

In the 21st century, the spirit is spreading to Southeast

Asia, such as Shanghai in China. While luxury brands are quite popular in China, there is a growing culture of

individuals who do not wish to be a part of the luxury

business but who would like to express their individuality.

#ere is a large group of the working class who would like to wear brands that symbolize the new China and not the westernized version that has come to represent the inner spirit and pride of the new citizen.

Yanting Shao is the one who is bringing this brand to Shanghai. As a member of the 80’s generation she understands her generation’s needs from the bottom of her heart; as a local resident, she is aware that China must develop their own style and not simply adopt western fashions, most especially luxury brands. While she has an innate style of fashion she wants to bring a fresh image of fashion to her hometown. #erefore, Petite Bourgeoisie is located in Shanghai with the goal of being a fashion innovator in the middle class market. She recognizes that China cannot become an innovator until its people both know and want to develop his or her own style. Instead of being copiers, China must become innovators.

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Tagline

Life is an attitude//Fashion is a revolution.

 

Mission Statement

#e main character of our business is Ms Quality. We promise to provide the most particular and well-made garment

to our target customer at an a$ordable price. In addition, we are going to create the most interesting atmosphere during your shopping process. Petite Bourgeoisie is not only telling you the story of shopping but also the story of

lifestyle.

 

Vision Statement

Petite Bourgeoisie will reach our target market by sourcing the best vendors in mainland China. We will price our

merchandise so that it is a$ordable but not lower end. We like to think of our brand as being innovative yet well

priced to meet our target customer demands. Because of the growing working population in Shanghai we will launch

our business here.

As we grow we will stick to the values that we have created and implemented as a way to continue to connect with our

customers as well as keeping the mix fresh. In a few decades, when people mention Petite Bourgeoisie they will say, “it

is not a piece of fabric, it is really a lifestyle.”

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02. Demographics

and Target Customer

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Demographics China China boasts a total land area of 9.6 million square kilometers and has the world’s largest population of approximately 1.3 billion. It is the largest clothing consumer as well as the largest apparel manufacturer in the world. #e average income of the urban population reached about 3243 USD, an increase of 10.7% over 2009. #e disposable income is about 2947 USD and this has increased 11.3%. According to the research on habits of consumption, in year 2009, the total volume of fashion industry reaches 10,490 billion Yuan (1,621.84 billion dollars). In 2010, the total volume of the actual retail sales for social consumer goods in China was $21,467 billion dollars and the retail business of clothing has increased 24.5%, one of the highest among consumer goods products.

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As clothing has been outpacing consumption as compared to other categories for five years, the research also shows that 49.3% of these urban women choose to buy domestic brands. While the average expense on clothing is 657 USD this figure is highly inflated by the demand for luxury goods, and although there has been much written about the luxury goods market as far as the upper echelon of Chinese society, the average consumer continues to be more price conscious and does purchase local brands.

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Shanghai Shanghai serves as the most influential economic, financial, international trade, cultural, science and technology center in China. #ere are almost 23 million residents in Shanghai and 11.12 million (48.5%) of them are female residents. Our primary target customers are females aged 23-35 living in Shanghai and the female population between 23 and 35 is 2,358,533, occupying 21.36% of the total female population. Our secondary clients will be younger females and older females in Shanghai. Age groups 16-22 made up 11.38% of the female population while ages 35-44 make up 16.25%. #e total combination is 48.99% of the total female population. #ese numbers demonstrate that Shanghai’s demographics can support Petite Bourgeoisie.

On the other hand, our primary customers are well educated. Most of them have earned a college degree or even higher. According to the population census of 2011, there are about 2,450,739 (21.95%) females that are above college level. By 2010, the average disposable income reached 4909 USD, an increase of 10.4% compared to the previous year. Ten percent of their disposable income is spent on clothing.

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Research on the economy In 2010, China’s GDP growth was 10.46%, totaling 5,745.13 billion dollars, and is expected to increase 11.79% in 2011 to 6,422.28 billion dollars. Forecasts for 2015 predict China’s GDP to reach 9,982.08 billion dollars, growing 10-12 percent per year between 2010 and 2015. As part of the economic reforms that were begun in 2006, more independence was granted to enterprises that were owned by the state government. #is meant government o&cials at local levels and managers of various plants had more authority than before. #is led to the creation of a number of various types of privately held enterprises within the services sector, as well as the consumer industry. #e banking system was also diversified, and China started to develop and grow as economic reforms in China took hold. China grew at a rapid pace as a result of these reforms and opened its economy to the world for trade and China has adopted a slow but steady method in implementing economic reforms. It has also sold the equity of some of its major Chinese state banks to overseas companies and markets. In recent years, China's role in international trade has also increased. China is investing in economies elsewhere and other countries are investing in China as well.

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Retail Industry Increasing income in China and Government e$orts in encouraging consumer expenditure have resulted in rising domestic consumer expenditure. According to Goldman Sachs Global Investment Report, it is expected that the growth rate of retail sales can be maintained at about 10% in the next 5 years. China’s clothing market has been growing at 7% and is now a USD 40 billion industry. Department stores account for approximately 55% of the market. #is includes stores like Parkson, Shanghai Bailian and foreign brands like Wal-Mart. Clothing brands sold in these department stores include both international brands such as Hugo Boss and local brands like Li Ning, Borne, and Joe One. Franchise chains and local individual clothing outlets in China account for the other 45% share and the number includes boutiques like Petite Bourgeoisie.

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Profit margins for retail chains in China are high. Due to the lower costs of manufacturing in China, profit margins by these clothing brands can be as high as 58.35%. #e cities of influence for fashion in China are Shanghai, Shenzhen, Beijing and Guangzhou. In addition locals and tourists travel to Guangzhou, Shanghai, Shenzhen for major fashion brands at cheaper prices. For manufacturing, most of the manufactures are located in Zhejiang province and Guangdong Province and there are di$erent specialty regions and For example, Ningbo (Zhejiang Province) is more famous for manufacturing bags while Guangdong especially Guangzhou is more famous for apparel.

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Fashion in China Comprising a 5,000 years old cultural tradition, China is a large and diverse destination with a response to fashion. Fashion in China has improved and is emerging as a statement of style where local people adapt the latest trends of dressing along with decorating themselves up. As far as arts, cra's, clothing, and collectibles are concerned China has always been ahead in keeping up with the latest fashion trends. In the past sumptuary laws existed that delineate the common people from the nobility, in the same manner that these laws existed in Europe. #e 20th century has brought greater democratization to what can be worn and the opening of China to western culture in 1984 has increased this spectrum.

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Fashion in Shanghai A'er Milan, Paris, London and New York, Shanghai is going to vie for the title of the Oriental Fashion Capital. Shanghai fashion has taken up a significant position in the history of development of the typical Chinese costumes. In the early days, Shanghai was famous for its fashion and style. But it has been noticed that the fashion of Shanghai is showing more of a relaxed and more westernized sense of style. Shanghai is still recognized as one of the premier destinations in the world of fashion.

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Loca9on  Analysis   Julu Road As one of the important streets where most middle class people like to spend their leisure time, Julu Road has the advantage of being convenient, quiet and filled with an artistic atmosphere.

Influenced by European style architecture and culture, the street is full of exotic touches that add to its charm. It is the mix of European history and Chinese culture as well as the combination of modern style and vintage. #ese contrasting variables make it one of the most sought a'er locations for a business establishment.

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Transportation Julu Road is two blocks away from the central Huahai Road - one of the most bustling streets in Shanghai and it is crowded with people, o&ces, restaurants and shopping malls.

#ere are at least six subway lines that take you to Julu Road and the nearest one is only five minutes away. Also Yanan Road highway is just around it and it is easy to find a parking place there. Either driving or taking public transportation makes this location highly accessible.

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Neighbors Boutique – #ere are several boutiques located on Julu Road. #e independent designers occupy the majority of these boutiques. Shopping on this road and entering into each of them will o$er a di$erent vibe.

Bookstore – Dukou bookstore has a simple look that looks like someone’s backyard creating a homey environment that makes people want to spend time there. #ey carry di$erent kinds of books such as design, art, architecture and many other topics. Sometimes they provide co$ee in the store and people can stay there for the whole a'ernoon. Café - Life Café has a quaint and mysterious blue door and it seems that you are the guest in someone’s house. #ey play blues and jazz to make you relax and spend leisure time. #e place is decorated with flowers and the cats make you feel that you are back home with your feline friends. #e floral sofa, delicate teapot and delicious homemade cakes take you back to 19th century Europe. Art Galleries – Black Apple Gallery is a modern gallery that always has the latest artists’ art works. #ey don’t have the most famous artists but they have the most interesting and latest art pieces. In addition, it includes photography works as well as painting works. Bar - Limelight Grill & Bar serves Italian food as well as o$ering nightly performances. #ey have custom-designed furniture and French windows. Clients will be served as kings and queens. Specialty

Di$erently from Central Huahai Road’s hustle and bustle, Julu Road is more quiet and peaceful and even-tempered. Compared with the business atmosphere, our clients prefer the artistic atmosphere on Julu Road. Selected as one of the most favorite streets to spend the middle class’s leisure time, Julu Road is no doubt the best choice to be our location. It o$ers a charming interlude to a busy lifestyle.

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Boutique

Dukou Bookstore

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Life Café

Black Apple Gallery Limelight Grill & Bar 19  

Survey  Interpreta9on Demographics In order to have a thorough understanding of our clients, we launched our “Your shopping habits” survey in “Sojump” website and received 101 valid responses to our questionnaires. Our main respondents are female residents in Shanghai.

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•  The  result  also  shows  that  central  Huaihai  Road,  Changle  Road  and  Julu  road  are  their  favorite  place  to  spend  their  leisure  9me.

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•  Shopping  habits

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Summary Petite Bourgeoisie’s primary target is female locals aged 23-35; with the secondary being young girls aged 16-22. #e primary customers are well-educated, professional young women. As the new 80’s generation, whatever their marital status is, they have the freedom to choose their own fashion. Although the “monthly salary” pie shows that there are about 38.46% respondents who make less than 500 dollars per month, 61.53% of them have the ability to purchase our brand. Our clients like to hang out with friends; go shopping in Central Huaihai Rd and Julu Rd (our store location); have a'ernoon tea in some special bookstores and Café as well. #e Petite Bourgeoisie woman is extremely di$erent from ordinary ladies. She likes jazz, classical music and light rock music. Her favorite singers are Bob Dylan and the Beatles while most people prefer Lady Gaga. She would like to read fashion news such as the discount in Chanel rather than political issues. Milan Kundera’s philosophic books are more attractive to her than Dan Brown’s Da Vinci Code. Vogue and In style are more interesting to her than ladies’ home journal. Otherwise, she prefers emotional movies like “#e Bridge of Madison Country” to Hollywood movies. Appreciating impressionist exhibitions is also one of her favorite hobbies.

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Customer  Profile

Name: Nico Ren Age: 25 Education: Bachelor of Sciences in Business Administration

Position: Branding and Development O&cer

Company: Ma Belle Jewelry Company Limited Monthly Salary: 8,000+

Location: Shanghai 25  

Nico was born in 1986 and she is representative of the traditional 80’s generation in Shanghai. A'er graduating from one of the best universities in Shanghai, she obtained the Branding and Development o&cer’s position in Ma Belle Jewelry Company Limited. Uniqueness, Quality and Excellence in cra' are some of the key aspects Ma Belle looks at before deciding to distribute a brand in Asia.

O$ering exquisite fashion accessories that will seduce their clientele is their primary objective. Ma Belle was established in 1993 and the first store they opened in mainland China was in Shanghai. #ey currently own almost 100 stores in mainland China. #eir annual sales volume is about $16,653,053.

As a typical white-collar worker, she likes shopping, travelling, watching movies and appreciating art works. She follows pop culture by reading blogs and magazines such as Monocle that focuses on not only China and Southeast Asia and not only fashion but instead address global issues and trends. She also likes to keep in touch with Japanese pop culture by reading Japanese magazines, as this is a trend in China right now. She also understands that in Japan the appetite for luxury has been diminished not only because of the economy but also because of the earthquake and tsunami that have le' people thinking more about life and their needs, not necessarily their wants. She thinks that this trend also could spread to China where there has become an increased commitment to Chinese fashion and how to promote it.

For her, fashion is the key element to distinguish her from some other people. As opposed to luxury brands, she prefers unique designs and interesting life concepts. Surrounded by the modern and artistic atmosphere in Shanghai, she likes to display this in what she wears. Although she believes in supporting Chinese brands she is more interested in the cool factor of the brand. She is not a traditional girl and she displays this in terms of how she works. Her non-traditional approach as earned her increased status and accolades at work. She likes her looks to reflect this unconventional but forward-thinking mindset. She is a driven personality and although she dates she is not really looking for a serious relationship right now as it would distract her from her upward career climb. 26  

Online  Store

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Due to the large pressure and busy daily work, more and more people prefer to shop online because it is a more convenient and e&cient way to purchase clothing, shoes and accessories. In deference to our brand philosophy, which is to cater to the customer, we are going to provide an online shopping service.

#ere are 13 billion people in China and 4.2 billion of them are using the Internet. Eighty-eight percent of people in China have experienced at least one online shopping experience. Additionally, the total online sales amount of fashion industry has achieved 178 billion dollars and hosts the highest percentage (25%) among any other online retail industry.

As Petite Bourgeoisie is going to open the first store in Shanghai and will not expand to other cities in China in the first three years, online shopping is an e$ective way for us to spread our brand all over China as well as promote our brand to people all over the world.

According to the survey, 83.65% people shop on Taobao, our largest competitor in the online business. Taobao is the most popular Chinese language web site for online shopping. Founded by the Alibaba Group in May 2003, it facilitates business-to-consumer and consumer-to-consumer retail by providing a platform for businesses and individual entrepreneurs to open online retail stores that mainly cater to consumers in Mainland China, Hong Kong, Macau and Taiwan.

Taobao hosted 3.7 billion users in China up until the end of 2010 and it occupies 80% market share among all the online businesses. Also its trading volume for clothing in 2010 totaled 148.67 billion dollars. According to their analysis, 37.92% of them are female clients aged 25-29; 25.13% are female clients aged 30-34 and 21.72% of them are young ladies aged 18-24. Taobao owns the majority of our target customers. It is a big challenge for us to declare war on Taobao.

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03. Competitive Analysis

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SWOT  analysis Strengths • Freshness: because we are new and developing new talent with seasoned merchandisers to oversee this new talent we bring a great deal of creativity to the market

• New concept: we are launching a concept that is lifestyle oriented and not simply another clothing store. Our merchandise mix fits the needs of our primary target market – young upwardly mobile, college graduates who are just going out into the world. • Location: this close to a high tra&c area where many young people congregate a'er work as it is nearby a large business center that employs many recent college grads.

• Online shopping: we o$er online shopping with optional store pickup to make it convenient for our customers. • Niche business: as a new business model this is a niche business

• Service: we strongly believe in customer service and that retaining our customers is the most crucial element to our success • Limited production runs: we believe that by not overproducing, we will stimulate desire

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Weaknesses: • Niche business: as a new business model this is a niche business and we cannot guarantee immediate success • Lack of experience: although we have strong teams, we are still fresh and not that experienced in the fashion market and also we need time to mold our company • New business: as a new business we have costs that are higher than the rest of our competitors that we will have to absorb and monitor • Service: our strong commitment to service will be more costly than our competitors’ business models

• Minimal sta&ng: because we are new our team must wear many hats – everyone will be aiding in the e&ciency of our brand

• Limited production: limited production will lead to impacted gross margin • Lack of capital: as a new business we will be limited in our capital

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Opportunities: • Wholesale: as we are starting with retail business, we are also able to develop the wholesale market in the near future • New lines: we have the opportunity to develop new lines such as menswear and children’s wear

• New demographics: we have the ability to expand into a larger demographic

• Global growth: Petit Bourgeoisie is going to have boutiques in di$erent cities all over the world • China could o$er tax incentives to encourage new, local, entrepreneurial businesses.

"reats:

• Competition: global competition is growing an will increase from stores such as H&M and Zara

• Concept copying: larger companies can copy our concept and launch to a larger format; we may lose our clients due to those similar small boutiques located within the same street • Production costs: because of the growth in the Chinese economy wages are increasing

• Material costs: prices of commodities such as cotton are increasing globally

• Oil: the situation in the Middle East could continue and contribute to rising oil prices that impact production costs

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Compe.tors H & M H&M o$ers a broad and varied range that allows customers to find their own personal style at an inexpensive price. #e collections are created with H&M’s broad clientele in mind and the aim is to satisfy many di$erent tastes and requirements. ZARA

#is is a store that also has fairly reasonable prices but is doing a higher quality fast fashion. Zara’s target market is a young, educated one that likes fashion and is sensitive to fashion. #eir lead-time can be shortened to two weeks and it makes fashion run really fast. Uniqlo Uniqlo is a fashion Japanese brand with both basic and fashion items with high-quality clothing at reasonable prices. Also it targets young and sophisticated women. #ey provide di$erent colors for each item that makes them special from other brands. Uniqlo is also renowned for its very colorful marketing – in strategy and research and execution. Ochirly Ochirly provides the middle class in China with rich and sophisticated products. It combines art with fashion, modern with classic so that it creates the first mix and match story in 21st century Chinese fashion industry. #ey are about 10 years old and are located in department stores so that they are very neat and clean with young and hip sales associates. #ey originated in Italy and are now headquartered in Shanghai.

Small Independent Boutiques #ese kinds of boutiques are located on the same street as Petite Bourgeoisie. Some independent designers open their boutiques on this street and they provide their creative and unique clothing that cannot be provided by any other stores. Some of them have been around for a while but some have not been in business for very long. #eir product sourcing tends to be from Cheap Road where everyone can go, even end use customers. #ey also tend to open online boutiques to help nourish their business. #ese independent stores used to be located on Chang Le Road but have now moved to Ju Lu Road as higher rental prices are attracting more expensive retailers on Chang Le Road.

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Compe..ve  Advantages

Petite Bourgeoisie is in direct competition with fast fashion retailers such as H & M and Zara in Shanghai. Having a clear sense of our main competitors, Petite Bourgeoisie draws a specific picture in our advantages due to the location, vibe and merchandise mix.

Petite Bourgeoisie is located on the most artistic street that is two blocks away from the public transportation and business circle that makes it the best choice for working women to shop. Besides, Petite Bourgeoisie is going to create an in-store vibe that makes the customer feel as though she is understood best in this city at Petite Bourgeoisie – a real soul mate. #e attractive lifestyle products will be spread throughout the whole store that leads you to want to stay there for the whole day without moving a step.

Last but not least, the mix of our merchandise will be the most important factor to di$erentiate us from other competitors. We encourage our buyers to look at new and emerging brands to keep us from becoming stale.

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Brand  Posi9oning

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04. Company Structure &

Organizational System 36  

Ownership Petite Bourgeoisie is a family company 100% owned by Yanting Shao. Startup expenses ($196,340) will be financed by 30% ($58,902) from the bank loan and 70% ($ 137,438) from Petite Bourgeoisie Group.

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Abili9es  and  responsibili9es CEO • develop long-term strategy for the Petite Bourgeoisie brand • establish company culture, regulation, sales goals and spirit

• train, motivate and promote employees, responsible for HR management

• develop pricing strategies, balancing firm objectives and customer satisfaction

Store Manager • complete store operational requirements

• ensure availability of merchandise and maintain inventories

• identify current and future customer requirements and guarantee customer satisfaction • determine marketing strategy changes by reviewing operating and financial statements and departmental sales records • coach and train sales associates with technological knowledge and updated merchandise information

Sales Associate

• merchandise products with professional service and technical skills • responsible for maintaining store display and maintenance of quality standards of store

• gather feedback from clients

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Buyer • understand the past, present and predict the future trends of fashion and how these are connected to our target market

• gather information from target market and search for vendors that meet our theme and fashion story • contact with vendors, negotiate prices and build a strong relationship with them

• make calendars and guarantee supply • attend fashion exhibitions and communicate with designers to catch up with the latest fashion

Accountant • develop the annual operating budget with CEO on the fiscal aspects of program planning, salary recommendations, and other administrative actions • prepare profit and loss statements and monthly closing and cost accounting reports

• establish, maintain, and coordinate the implementation of accounting and accounting control procedures • prepare and review budget, revenue, expense, payroll entries, invoices, and other accounting documents

Visual Merchandiser & Stylist • coordinate with CEO, design team and sales associates and take control of the visual look of the store

• organize fashion events, discount sales, and other promotions to attract more store customers • design catalogs and build online website

• communicate with clients to acquire visual merchandising feedback in order to present e$ective promotional ideas to increase store sales without significantly impacting gross margins

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Award  Policy  &  Salaries We are going to set our monthly sales goal. If the goal is reached, the visual merchandising team, sales team and buying team will be rewarded. If the goal cannot be reached, they will receive only their basic monthly salaries but this will give them something to strive for.

*In the last month of the year what is December, all the sta$ will get double pay in order to reward them for a good year of work and to celebrate Chinese New Year.

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05. Marketing Plan

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Marke9ng  Strategy China is no doubt the largest apparel manufacturing country as well as the largest apparel exporting country in the world. Rich natural resources, relatively inexpensive labor, highly advanced equipment, convenient transportation and advanced logistics systems have led to their success. But the reality is that China, who uses its previously low-cost labor and huge market to feed international brands and foreign designers is becoming much more expensive as a production source because of the growing middle class. In other words, paradoxically, China’s low cost of production has led to their economic growth and raised their costs of labor.

China announced in late June of 2011 that they were going to lower the duties and tari$s on luxury goods to encourage more spending. While they are looking to expand individual spending, the majority of Chinese people have traditionally saved on their spending. #is pertains to the majority of the Chinese population not the very upper echelons that enjoy luxury goods. We do not lack strong manufacturing ability in China, but we are short of creative designers and those that understand the value of marketing and promotion. In addition, long lead times, high cost of materials and weakness in creativity also leads to overstock and cash flow problems.

Besides internal factors, we are also facing some external factors. Because of economic crises and other countries’ rise, global orders are decreased. On the other hand, luxury brands that have a strong advantage in funding, creative ideas in design and mature experiences in promotion are opening more and more flagship stores in China to impact the market share.

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We are faced with challenges as well as opportunities. One of the three key points to creating a lasting and stable business is that we should have a thorough analysis of the target market in order build a sophisticated marketing strategy. #e other factor is the improvement of the quality of products, and reinforcement of the management and quality assurance of services.

Petite Bourgeoisie is going to provide unique and novelty merchandise by using experienced buyers. We are also going to o$er lifestyle products such as pop-up books, 3-D puzzles, chic candles and creative mugs to build our visual merchandising and create a larger customer base.

Our target customers are well-educated women between 23 and 35. She has a nice job, a good salary, a great attitude to life, a sincere personality, understandable thought and ability in appreciating artworks. She has the ability to purchase Louis Vuitton but she doesn’t want it. She is much more experiential in her wants and needs. For her, luxury brands are not special enough to represent her personality but Petite Bourgeoisie is.

Just as our brand name Petite Bourgeoisie suggests, we stand for the middle class. Our price is going to be in the middle of general brands and luxury brands. For apparel and accessories, the price range will be from $15.99 to $199.99; for lifestyle products, it is between $7.99 and $99.99. It is no doubt that we can and will provide an unexpected quality and service at this price range.

As our business is a small boutique, we are going to use internet marketing and public relations to launch our brand. Internet marketing will include cooperating with the most popular Kaixin001, Sina Weibo, QQ and MSN and building our own website.

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Marketing Buzz Have you ever walked into a store, luxury, high end or any kind of store and felt invisible? Sales associates pay no attention to you. #eir cold attitude keeps you at a distance and makes you feel as though you are not welcome or qualified to enter their store. Petite Bourgeoisie is a special place that treats our middle class clients as though they were queens and princesses. Our goal is to tell people that money can buy you trends but not style; money can give you vanity but not taste; money can purchase you luxury goods but not lifestyle. Isn’t it interesting to see a catalog in your favorite co$ee shop or bookstore that is selling more than merchandise – they are selling lifestyle. We will be the happiest to hear our customers tell us that Petite Bourgeoisie encourages them to believe that “Life is an attitude & Fashion is a revolution”.

Brand Events We will sponsor events that resonate with our target customer, such as a Breast Cancer marathon or triathlon. Otherwise, we are going to have our catalogs in the most popular independent co$ee and teashops and they are available free of charge. #ey will talk about her (our customer’s) looks, our sta$, as well as popular culture.

Membership

When you purchase greater than $100 in our store (one time), you are qualified for our membership card. And each time you shop at our store, you will earn store credits with $1 equal to one point.

Being our member, you are able to get 90% discount for apparel (not including on sale merchandise) as well as enjoying free shipping when the credits reach 500 points.

Otherwise you are the first person to get our first hand information about the latest merchandise and sales promotions. Last but not least, you will receive our gi' to you on your birthday!

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Adver9sements  

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Fashion Magazine —— will not pick According to the data collected from a survey we posted on a Chinese website, Sojump in November of 2010, it is indisputable that in China fashion magazines have the largest group of readers among our target population. According to this survey, people in Shanghai prefer to read Japanese fashion magazines rather than American fashion magazines. As is known to all, Japanese magazines do not specifically recommend any fashion brands, but mix everything together to tell a fashion story. Although they give credits to what they use, it is still confusing when your store is not that famous. Petite Bourgeoisie will not advertise our brand for two main reasons. First, our merchandise is more than Japanese styles. In addition, it is not necessary for us to spend a large amount of money for only showing our brand name.

Local weekly magazine Otherwise, we have four other mediums to advertise our brand. As #e Bund is one of the most influential local weekly magazines in Shanghai and publishes 581,000 volumes per issue in the first-tier cities in China, we will launch 50% of our advertisements in #e Bund. #e Bund faces readers who are well educated and care about not only international a$airs but also fashion trends. According to the bar chart, it is no doubt the most popular weekly magazine with 27.9% readers among our target customers.

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Fashion Blogs #e third largest group is a new media for our clients to obtain fashion information - fashion blogs. #ose fashion blogs contain both international fashion trends and local brand news and are more popular than those that include only local street fashion. Our goal is to become the local fashion guide and fashion source in three years. Also we provide a fashion studio service online that means our clients can play a mix and match game with our merchandise online. When you upload your own face to our website, you can see how our garments look on you!

Catalogs Catalogs are also a fresh media to spread our brand. Bookstores also serve co$ee and desserts and are one of our clients’ favorite places to spend their leisure time. Our catalog is going to be featured in this kind of bookstore as well. It is not only a catalog but also a lifestyle guide for our clients.

Chinese "Yelp"

“People’s comments” is a popular website where people can grade and review merchants and service. As word of mouth is an e$ective way to build our reputation, we are going to mark our store on the website and respond to clients’ demands.

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The Bund Fashion Blog

Catalog People’s Comments 49  

Spokesperson   As our primary customers are young professional ladies from 23 to 35, Guey Lun- mei is the best spokesperson for our brand. Majoring in French Literature, she was the exchange student to France for one year and later gained her bachelor’s degree in one of the best universities in Taiwan. During her leisure time, she loves dancing, sports and movies what can represents our target customers. As an actress, she brings people an elegant and intellectual image. She doesn’t look as beautiful as Ingrid Bergman; she doesn’t act as sexy as Marilyn Moore, but her pure appearance, natural performance and free lifestyle make her the most suitable person for our brand.

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Return  Policy (Return policy is only applied for in store shopping.) 80% cash back

As one of our aims is to satisfy our clients, we are going to provide the “return policy” that is not currently popular in China. According to the Sojump survey, people prefer cash back rather than store credit. In order to minimize the incidence of fraud, we will provide 80% cash back instead of 100% cash back. 100% store credit

Instead of 80% cash back, our clients can also choose 100% store credit so that we are able to retain our customers.

Exchange of equal values

Clients can also exchange their merchandise for merchandise of equal value. If the price of the merchandise they want to charge is too high, they have to pay the di$erential.

Due time

Clients are required return in 7 days.

Condition #e merchandise they purchase should be 100% brand new with all the tags on it.

Merchandise It is only applied for apparel, shoes and bags.

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06. Product Strategy

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Brands Fujifilm-Instax Mini 7 - Price range:$50 - $99 It is an instant camera that uses self-developing film to create photography, like a Polaroid. Instax Mini 7 has a rounded shape, easy-to-hold side grip and fingertip controllable composite control panel. #e camera o$ers vivid, high-quality prints and also has an automatically adjusting flash, high-resolution retracting lens and high quality performance. Its look is updated vintage – that is it isn’t the smallest camera, nor is it the sleekest. It doesn’t use a memory card and it can’t download it to your computer. It is the antithesis of the 21st century and the epitome of cool. It is ideal for professional application as well as for personal enjoyment.

Nathalie Garçon - Price range: $99-$229

Nathalie Garçon is a fashion brand that exudes French romance, elegance, mystery and drama. She exemplifies the French flea market feel. She also takes her inspiration from French cinema such as “Amelie”. Nathalie’s fashion can be found in 200 retail points across the world and there are two boutiques in China, one is in Beijing and the other one is in Shanghai. #e designs she creates have a very modern femininity with a rich interplay of fabrics and textures.

A-ZA - Price range: $19.99-$49.99

ZA owns their online flagship store as well as their experienced design team. A-ZA strictly manufactures bags. #e vertical online retail business model saves time and cost for both A-ZA and their clients. Because of their stringent quality standards, they have a high reputation for its quality. A-ZA believes that girls who use their bags are brave and confident to meet challenges.

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&'!

Brand  Philosophy #e brands we are going to carry are not luxury or famous brands at all. We truly believe that there are many interesting and innovative brands that are developing in China that are not that expensive but have a lot of potential. We also believe that our clients do not want to follow the leader – they want to be the leader!

We have the same goal to provide the best quality and service to our clients and we have a similar attitude towards fashion, which is about creating your own style instead of copying from others. #ey all have very good reputation among their customers but that’s not enough. Petite Bourgeoisie’s purpose is to bring them all together and spread our life concept all over the world.

We want to give our customers the confidence to be creative in the way that they dress. While the “petty bourgeoisie” were considered upstarts and noble “wannabes” they now rule the world! But they have become the Petite Bourgeoisie, there is nothing petty about them.

#e 20th century saw the end of the imperial dynasties in China and the democratization of all peoples. #e 21st century is now all about the democratization of fashion and lifestyle.

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Categories of Products Petite Bourgeoisie is primarily an apparel boutique with lifestyle products in store as well. #erefore, the merchandising plan is simply split into three sections, apparel, accessories and bags and lifestyle products. We carry di$erent kinds of merchandise due to seasonal factors. We also believe that the new customer wants her fashion to reflect her lifestyle and her lifestyle to reflect her fashion sense. #ey have become interchangeable in the minds of consumers.

Pricing

For apparel, our prices range from $15.99 to $199.99 and the average profit margin is 64.22%; for accessories, it ranges from $7.99 to $159.99 and the average profit margin is 61.12%; for lifestyle products, the price ranges from $1.99 to $99.99 and the average profit margin is 57.34%. #e total average profit margin is 60.89%. #e diversification of our product mix accounts for the variance of our pricing. In addition, di$erent seasons as well as di$erent materials that we use will also influence prices. Petite Bourgeoisie positions itself at bridge prices in order to tell our clients that we guarantee the quality as well as the service. We know our customers do not want the cheapest items but they do not want the most expensive either.

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Vendors'  Informa9on

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07. Corporate Identity Systems

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LOGO

Packaging

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Visual  Merchandising Exterior Design: Size: Length * width * height: 50' * 40' * 12' Total: 2000'²

#e color of the outside wall is dominant so that our clients can see it from afar. Also we want to attract people who do not know our brand in this way. As for the strong, painted wall, we are going to use white frames to sketch the contours of the window and the door as well. #e window display is going to be decorated with simple and clean colors so that it does not distract from the merchandise or cause confusion in the minds of the consumers.

Window Display: Size: Length * width * height: 3' * 10' * 8'

#e walls are going to be painted white and paper flowers will be used to decorate the windows. We choose to use wooden mannequins instead of general mannequins because their joints are free to be moved. #erefore, they are able to have more poses. #ese mannequins will be dressed in our latest and hottest merchandise and pose di$erently to show their lifestyle. We are also using wooden mannequins to show the ordinary “petite bourgeoisie” population.

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Survey  –  Visual  Merchandising  

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Floor Plan:

Size: 2000'²

O&ce – 150'²

Stock room – 150'²

Restroom – 20'²

Fitting room – 20'² * 4

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Website:

Our website is going to be very clean and uncluttered with the merchandise shown in the e$ect of our instax picture. We have three categories for clients to choose: online shopping, fashion blog and fashion studio.

For fashion studio, that means you can pick our garments and play the mix and match game on our website. Otherwise, you may upload your profile to see how the garment looks like on you.

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08. Financial Plan

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Summary For boom seasons such as January, February, May, October and December, the sales volume is going to reach 2,000 pieces. For slack seasons such as June, July, August and September, the sales volume is decreased. We plan to catch our secondary clients, college students during summer vacation. Due to less and lighter fabric we use, the price is lower and lots of things are going to be on sale. #e sales volume will be between 1,600 pieces and 1,900 pieces during moderate months such as May, April and November. Sales Volume Estimation

We assume that there will be 8 clients who enter our store per hour and the business time is 10 hours during weekdays. Fi'een clients will enter our store during weekends and the business time is 12 hours. 30% of them will buy at least 1.5 piece of merchandise in our store.

(8×10×22+15×12×8)×1.5×30%=1440 (pieces)

According to the computational formula, the average sales volume is going to be 1,440 pieces per month. Due to the extra shipping fees, there will be more on sale merchandise available for online clients. Assuming that at least 100 clients will browse our website and 5% of them will purchase at least 2 pieces of merchandise, we are going to sell 300 pieces per month online.

1440+300 = 1740 (pieces)

#e total sales volume is going to be 1740 pieces per month.

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Start  up  

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Assortment  Plan  

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Profit  and  Loss  Analysis  

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Three  Years  Sales  Plan  

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Cash  Flow  Forecast  

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09. Appendix

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1. www.economywatch.com/world_economy/china/ 2. www.docstoc.com/docs/19643466/china-fashion-industry 3. news.ifeng.com/mainland/detail_2011_01/20/4366455_0.shtml

4. www.asiarooms.com/en/travel-guide/china/culture-of-china/fashion-in-china.html

5. www.asiarooms.com/en/travel-guide/china/culture-of-china/fashion-in-china.html 6. www.chinatoday.com/people/people.htm (http://www.chinatoday.com/people/people.htm

7. www.360doc.com/content/11/0108/20/895167_85070538.sht 8. 021shfs.5d6d.com/archiver/tid-315.html

9. www.stats-sh.gov.cn/fxbg/201105/214093.html) w.stats-sh.gov.cn/

10. www.verylib.com.cn/page/technology/294/867997.htm 11. traditions.cultural-china.com/en/15Traditions5178.html

12. www.zpooo.com/info/20100514/45617.html 13. www.alexa.com/siteinfo/taobao.com

14. www.shop235.com/Article.asp?id=235&Page=1

15. tech.163.com/11/0228/10/6TVKHMHB000915BF.html 16. www.bundpic.com/info.php?type=aboutus

17. uk.ykone.com/magazine/news/ 18. www.mybabyghost.com/en/collection/index.html

19. store.taobao.com/shop/view_shop.htm?user_number_id=16306902

20. www.dfuse.com.cn/ 21. mp.ppsj.com.cn/Greensitts.html

22. www.aza-bag.info/archives/9 88