FASHIONPRENEURSHIP ESSENTIAL

Developing Sustainable Business Model and Plan

By Sadikin Gani / Satusatu.id

FASHION

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Key Terms Fashion, Cloth, Dress, Fashion System, Fashion Industry, Fashion Supply Chain, Fashion Business, Business Model, Business Plan.

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FashionFashion is (a) an intangible force (b) that is manifested in tangible products, (c) that represent newness relative to prior fashion products, (d) are adopted by a group of people, and (e) are reflections of society and culture.

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Clothing x Dress x Fashion

Clothing is a product made out of a textile that is worn on the body; a shirt is an article of clothing.

Dress includes three elements: (1) any item worn on the body (e.g., clothing, accessories); (2) any modification to the body (e.g., tanning, dieting, tattooing, hair styles); and (3) anything appended to the body (e.g., handbags, crutches, dog leashes, fans).

Fashion is a form of dress or article of clothing that has or will become popular. Fashion is also a social process whereby an item of clothing or dress is adopted by many people.

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Within the fashion system are forecasters, designers, manufacturers, marketers, merchandisers, sales representatives, managers, promoters, and retailers, each of whom has a role in fostering fashion change.

Fashion System

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Fashion Industry

Haute Couture / La Chambre Syndicale de la Couture / US$10,000 - 200.000

Designer / US$1,000 or more / Gucci, Prada, Marc Jacobs, Dior, ect.

Bridge / Under US$1,000 / Ted Baker

Better / Under US$500 / Massimo Dutti

Moderate / Under $100 / Zara, H&M, Uniqlo

Budget / Under $50 / Bershka

SegmentBased on price point and

relative quality

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Ready-to-Wear

Fast Fashion

Product Areas of Fashion

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Area Brief Market

Women’s daywear Practical, comfortable, fashionable Haute couture, ready-to-wear, mass market

Women’s eveningwear Glamorous, sophisticated, right for the occasion

Haute couture, ready-to-wear, mass market

Women’s lingerie Glamorous, comfortable, washable Haute couture, ready-to-wear, mass market

Men’s daywear Casual, practical, comfortable Tailoring, ready-to-wear, mass market

Men’s eveningwear Smart, elegant, formal, right for the occasion Tailoring, ready-to-wear, mass market

Boys’ wear Practical, hard-wearing, washable, inexpensive Ready-to-wear, mass market

Girls’ wear Pretty, colorful, practical, washable, inexpensive

Ready-to-wear, mass market

Teenage wear Highly fashion-conscious, comfortable, inexpensive

Ready-to-wear, mass market

Sportswear Comfortable, practical, well-ventilated, washable

Ready-to-wear, mass market

Knitwear Right weight and color for the season Ready-to-wear, mass market

Outerwear Stylish, warm, right weight and color for the season

Ready-to-wear, mass market

Bridalwear Sumptuous, glamorous, classic Haute couture, ready-to-wear, mass market

Accessories Striking, fashionable Haute couture, ready-to-wear, mass market

New York

London

Milan

Paris

Fashion Week Schedule

New York’s premier fashion event to showcase top womenswear fashion labels, including Marc Jacobs and Ralph Lauren, to international buyers and press. New York Fashion Week is a highlight in the fashion calendar and is attended by international buyers and celebrities.

February / September

London’s premier fashion design event showcases a mix of established labels and emerging talent and it has a reputation for creativity and design innovation. London Fashion Week includes a dedicated men’s day.

February / September

Milan’s premier event to showcase top womenswear designers including Prada and Gucci to international buyers and press. Milan Fashion Week is a highlight in the fashion calendar and is attended by international buyers and celebrities.

February / September

Paris Fashion Week is the premier fashion event for top ready-to-wear womenswear fashion labels including Louis Vuitton, Chanel and Lanvin. Paris Fashion Week is a highlight in the fashion calendar and is attended by international buyers and celebrities.

March / October

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Trading Year

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Season Calendar

Fall / Winter August to January

Holiday range (optional) November

Spring / Summer January to July

High Summer (optional) May / June

Season Calendar

Early spring August to January

Spring November

Early Summer January to July

Summer Sale May / June

High Summer July

Transitional Fall July / August

Fall September / October

Party Wear November

Christmas / Transitional Spring December

Winter sale December / January

Designer Fast Fashion

Fashion Supply Chain

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1. Business Strategy

2. Market Research

3. Design Development4. Sampling

5. Wholesale Season Selling

6. Production

7. Distribution8. PR & Marketing

9. Retail Selling Season

Supply chain: the process of planning, implementing, and controlling the

flow and storage of products, from their point of origin to their point of

consumption, in order to meet customers needs.

CommerceCreativity

Fashion Business

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Technology

Fash

ion

“Aspiring designers enter the fashion world to be creative, but regardless of

creative genius, fashion is nothing without commerce. ”

Fashion involves: Change, Novelty, Context of Time, Place, Wearer

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The Reality

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Running a successful fashion label requires around 90 percent business acumen and only about 10 percent artistic ability.

Designers work 7 days a week, 12 or more hours per day, and have little time for friends, exercise, or vacation.

More than 50 percent of small businesses fail in their first year, and 95 percent are gone by the fifth.

The Fundamentals

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Business Model

Business Plan

Where you are going and how you will get there?

The business model is the mechanism through which the company generates its profit while the business plan is a document presenting the company's strategy and expected financial performance for the years to come.

The business model is at the center of the business plan.

The business model describes how the company is positioned within its industry's value chain, and how it organises its relations with its suppliers, clients, and partners in order to generate profits. The business plan translates this positioning in a series of strategic actions and quantifies their financial impact.

How?

What?

9 Blocks

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Customer Segments

Value Propositions

Channels

Customer Relationships

Revenue Streams

Key Resources

Key Activities

Key Partnerships

Cost Structure All costs incurred to operate a business model.

The different groups of people or organizations an enterprise aims to reach and serve.

The bundle of products and services that create value for a specific Customer Segment.

How a company communicates with and reaches its Customer Segments to deliver a Value Proposition.

The types of relationships a company establishes with specific Customer Segments.

Represents the cash a company generates from each Customer Segment.

The most important assets required to make a business model work.

The most important things a company must do to make its business model work.

The network of suppliers and partners that make the business model work.

Business Model

9 Blocks

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Business Model Canvas

The Business Model Canvas

designed by: Strategyzer AGThe makers of Business Model Generation and Strategyzer

This work is licensed under the Creative Commons Attribution-Share Alike 3.0 Unported License. To view a copy of this license, visit:http://creativecommons.org/licenses/by-sa/3.0/ or send a letter to Creative Commons, 171 Second Street, Suite 300, San Francisco, California, 94105, USA.

strategyzer.com

Revenue Streams

Customer SegmentsValue PropositionsKey ActivitiesKey Partners

Cost Structure

Customer Relationships

Designed by: Date: Version:Designed for:

ChannelsKey Resources

Right Canvas: ValueLeft Canvas: Efficiency

Logic Emotion

Business Plan for Fashion

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A key tool, from starting out, to growing into a larger brand.

Reflect: current status, areas of focus, and future goals.

Executive Summary

Background / Introduction

The executive summary should include all of the key features contained in your plan.

An overview of the sector you are moving into rather than being about your own business.

The Business

What is the business going to do? / Legal status and capital / Mission Statement / Business Objectives (year one) / Key Strengths & / Competitive Advantage / Short term, medium term and long term goals / Key Strengths & Competitive Advantage

Management, Organisation and Personnel

The Market

Market Research Analysis

Business and Marketing Strategy

Operational Details

Financial Overview

Risk AnalysisStrengths, Weaknesses, Opportunities, Threats

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Terima KasihSadikin Gani

www.satusatu.id / www.theactualstyle.com / www.esaifoto.com@sadikingani

sadikingani@satusatu.id