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then OAT Shoes are made for you. This is the most environmentally responsible sneaker company till date. OAT shoes are completely made of biodegradable materials. It is said A pair of OAT Shoes bought means a New Tree planted. When you are done with your pair of OAT shoes, bury them in your garden and sooner or later you will be growing a tree. Introduction The common oat (Avena sativa) is a species of cereal grain grown for its seed, which is known by the same name (usually in the plural, unlike other grains). While oats are suitable for human consumption as oatmeal and rolled oats, one of the most common uses is as livestock feed. Oats make up a part of the daily diet of horses, about 20% of daily intake or smaller, and are regularly fed to cattle as well. Oats are also used in some brands of dog food and chicken feed. Oat seeds are commonly marketed as cat grass to cat enthusiasts, since cats readily harvest and eat tender young oat, wheat. THE ADVANTAGES OF THE IDEA: This Idea is environment friendly so all the institution take-caring of environment will support this idea. These products will be Allergy free. 100% Bio-degradable product will provide a satisfaction to customer. That they are not harming environment. Other benefit of the product is customer not need to worry about dumping; they also can bury them in the lawn. Customers also doing their part by planting the tree though bury the shoe after use them.
THE DISADVANTAGES OF THE IDEA: Not easy to market because of the acceptability of the material used. Very difficult to change the mind-set of young customers. Fashion conscious people will not accept any product which made out of material which will became tree in future. Processing the OAT tree will take time. If the acceptability is high them hard to provide the raw material. In todays scenario its not easy to sell anything like this because less number of people cares about nature.
THE ADVANTAGES OF THE IDEA: Higher conversion of sales. Strong word of mouth Superb user-friendly website Amazing designs of products Getting good employees and job-workers Quick delivery of products
THE DISADVANTAGES OF THE IDEA: Proper inventory management. Creating a strong technology and design team Getting traffic Job worker flexibility to produce particularly producing designs in smaller lot or single pieces. Proper functioning by DSP`s and payment gateways. Create a brand with limited capital.
MAIN IDEA
DiE (Denim in Everything)
1. Introduction Denim is the fabric which will never go out of trend. Since ages, people prefer wearing denim and it will continue because of its high tensile. Every individual`s wardrobe is incomplete without a pair of denim. Similarly denim fabric can be used for many products apart from making jeans because of the strength of the fabric. So based on the advantages of the fabric DiE (Denim in Everything) company has been formed. DiE is a company which will have its entire product range made out of denim fabrics and for many of its products it will also take use of waste denims or damaged denim fabrics. The main reason for choosing denim is that it lasts longer than other cloth fabrics as well as helps in maintaining the style quotient of the youth. DiE plans to manufacture jeans, shirts, jackets, accessories, bean bags, wallets, footwear, bags, etc., and all using denim fabric. Whatever possible which can be made out of denim fabric, we will make it. This is our motto. Product and Service Initially we will introduce denims and want to target menswear. Later down the line, more products will be added like ladies denim, shirts, jackets, accessories, bean bags, wallets, footwear, bags etc., but all using of denim fabric. It will be an online portal where one can choose and buy the denim. On online one can select the denim from the designers gallery or one can also customize on its own by using a 3d software. It will also have an offline presence as well. Online will be more for the branding and visibility. Higher number of sales is expected to be generated from the offline mode as sell apparels on internet has not yet picked up in India. DiE will have an in-house brand like tapINvogue which will manufacture denims for the youth. India has the highest youth population in the world, urbanization is on a constant rise, and standard of living and disposable income of people are increasing. So tapINvogue plans to cater to the youth aged 15-35 years and want to make its presence on internet platform. tapINvogue would provide following features: Providing trendy designs One can customize ones own denims Providing re-attachable accessories Providing denim in few different colors
The process of denim selection by the customer on the website The customer will come to the homepage and will check varieties of designs and services offered. He can select denim from the designers denim showcase which will be ready to wear or he will customize on its own by using 3-d software. The details and mode of payment should be done by the customer online. The rates will be high for the customized denim.
If the customer selects one from the designer`s showcase, it will be shipped immediately after getting the order. If it is according to one need it will be takes around 15-20 days.
The process of manufacturing denim From the fabric supplier, particular fabrics are chosen by the designer and ask it to supply it over to the job-worker. The job-worker will be given a sample and program order, where it will be mentioned the number of pieces, the styling, particular trims and accessories to be used etc.
The fabric reaches the job-worker store and job worker according to the program order manufactures it. After the washing, packaging, designing is done the job-worker will send it over to my warehouse. Process for selling via offline mode It will sell directly via retailers initially and slowly will go for distributorship directly. The distributors are going to be appointed in every state. The selling of denims via offline mode will have higher sales comparatively to online portal. It is expected that offline sales will contribute approx. 80% of the total sales.
SALES
Offline Sales
Online Sales
Direct retailers
Distributors
Customers
Customers
Customers
Customer rs
Customer
Retailers
Retailers
Customer
Customer
Customer
Customer
Resources Capital Investment 7 computers (25000*7) Building/ Real estate (Deposits) Development of a funky website Legal expenses 3-d software Miscellaneous expenses Furniture and fittings Total 175000 150000 150000 20000 100000 20000 150000 765000
Furniture & fittings Computer furniture & fixtures Stock keeping unit Chairs General
Main office and warehouse will be operating from the same place. This will be done in the outskirts of Mumbai like in Goregaon or Jogeshwari, as the rent is low and people are easily available because of the efficient local trains. Advance for Rent/Building is the token deposit or an security 3d software will be used for the customizing of a denim Initially investment in inventory is essential. So an approx. 500 pieces of investment is taken into account.
Manpower requirement 5 people for handling online portal It will include 2 people for marketing via SEO and social media. 1 person for handling the operations. 1 for customer care and 1 for maintaining website. We need to have one full time designer, as the customers customizing it may be directly requires. For maintaining sales account and also admin expenses. His role to look after online packing and also dispatching denims for offline mode. He will manage stock and will ensure proper dispatching of goods. He will also manage the basic accounts for the warehouse management. They will be meeting different people in different parts of the country and will get sales for us. For all the basic chores That will be me and will be more of managing and getting sales. I will also look after all the departments as well.
1 designer
2 sales people
1 helper Owner
Cost of Denim For online selling (Designer`s showcase) Job work (including fabric & transportation to warehouse) Re-attachable accessories) 75 Courier charges 60 Amount charged by CC Avenue TOTAL VARIABLE COST 480
For offline cost of a denim Well for selling via offline the courier cost will significantly come low, since the denims will be send in bulk to the retailers and distributors. So approx. rate for transporting one denim will be 10 rupees. Apart from courier charges, remaining rates will be the exactly same. So the total cost of denim for selling via offline mode will be 565 Rupees. Price kept per denim is 1400 is rupees. Retailers are expected to charge 40% mark down on the MRP. So comes out to be 560 as retailers margins. Job work (including fabric & transportation to warehouse) Re-attachable accessories) Courier charges Retailers margins TOTAL VARIABLE COST 480 75 10 560 1125Rs per piece
Job-worker cost DESCRIPTION AMOUNT Cotton fabric (Arvind or Raymond mills) is approx. 180 rupees per meter. 216 The fabric is 10-12 ounces. Per denim consumption is approx. is 1.20 meter. So that is 180*1.2 Total cutting and stitching cost (Basic 5 pocket denim) 90 It includes Pocketing, zipper and thread. Washing, this varies upon the wash. 120 Particularly for rough took, tearing wash will be there which will have spray andwiskers done on it. Finishing, which includes thread cutting, ironing etc 15 Accessories 20 It includes buttons, rivets, P.O pockets etc Trendy Bag to pack, labels and transportation 19 TOTAL 480
Re-attachable Accessories DESCRIPTION Cotton belt Leather steel chain This will be connected from back pocket to front pocket. Musical attachable circles TOTAL AMOUNT 30 25 20 75
These accessories can be kept or can be removed as well. The basic purpose for this the denim is the one likes simple 5 pockets, he can remove accessories and wear it. It can target two groups of people to a certain extent
For customization according to one`s desire. Over here the cost of denim will be significantly high because of single product being manufactured at a time. This is also tedious work as told to me by one of the job-worker. The rates will be 3 times higher than the normal ones at least for stitching. Total cost Job work (including fabric & transportation to warehouse) Re-attachable accessories) Courier charges Cost charged by the payment gateway TOTAL VARIABLE COST 800 75 60 75 1010Rs per piece
DESCRIPTION AMOUNT Cotton fabric (Arvind or Raymond mills) is approx. 180 rupees per meter. 234 Per denim consumption is approx. is 1.30 meter. So that is 180*1.3 Total cutting and stitching cost (Basic 5 pocket denim) 250 It includes Pocketing, zipper and thread. Washing, this varies upon the wash. 222 Particularly for rough took, tearing wash will be there which will have spray andwiskers done on it. Finishing, which includes thread cutting, ironing etc 40 Accessories 35 It includes buttons, rivets, P.O pockets etc Trendy Bags, labels and transportation 19 TOTAL 800
The cost of washing is not correctly driven, so I have presumed to be at least double of the normal washing charges. In areas where labor is involved the rates have almost be taken 3 times than the normal average cost. This is because of the tedious process. The rates are not been so accurate as the job-worker gave me an approx. figure in that.
Fixed Cost
Description Total salaries Fixed advertising Office cum warehouse rent General expenses Total Salaries
Description People handling online portal (18000*5) 1 designer 1 Accountant 1 packaging person 1 warehouse manager 2 sales person 2*15000 1 helper Total
Pricing method I expect approximately 85% of the sales to be happening from offline sales and 12 % from online. I expect approx. 3% of sales to happen via online customization of denim. Variable cost Online salesOffline salesOnline customization of denim-
Average Variable cost = 655*0.12*12000 + 565*0.85*12000+ 1010*0.03*12000 3 = Rs.2356600 Variable cost- Rs Fixed cost- Rs Expected sales units Unit cost 605 270000 1500 pieces per month