NATIONAL INSTITUTE OF FASHION TECHNOLOGY, PATNA

Course: Master of Fashion Management

Session: 2019-21

Subject: IT Essentials For Fashion E-business

Topic: Develop a Plan for E-business

Submitted to: Neeraj Kumar

Submitted by: Ruchi Ratan
ACKNOWLEDGEMENT

I would like to express my deepest appreciation to all those who provided us the possibility to
complete this business plan.

A special gratitude I give to our professor, Dr. Rishikesh Kumar, whose contribution in
stimulating suggestions and encouragement, helped me to coordinate my project especially in
completing this document. I would also like to thank him for investing his full efforts in
guiding me in achieving the goal.

The completion of this undertaking could not have been possible without the participation
and assistance of so many people whose names may not all be enumerated. Their
contributions are deeply appreciated and gratefully acknowledged.

RUCHI RATAN
ABSTRACT
 CONTENTS

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2. INTRODUCTION 5

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INTRODUCTION
E-commerce is buying and selling goods and services over the Internet. Ecommerce is part of
e-business. E-business is a structure that includes not only those transactions that center on
buying and selling goods and services to generate revenue, but also those transactions that
support revenue generation. These activities include generating demand for goods and
services, offering sales support and customer service, or facilitating communications between
business partners.

By the help of the flexibility offered by computer networks and the availability of the Internet
,E-commerce develops on traditional commerce . E-commerce creates new opportunities for
performing profitable activities online. It promotes easier cooperation between different
groups: businesses sharing information to improve customer relations; companies working
together to design and build new products/services; or multinational company sharing
information for a major marketing campaign.

The followings are the business uses of the Internet. These services and capabilities are a core
part of a successful e-commerce program. They are either parts of a value chain or are
included as supporting activities: • Buying and selling products and services • Providing
customer service • Communicating within organizations • Collaborating with others •
Gathering information (on competitors, and so forth) • Providing seller support • Publishing
and distributing information • Providing software update and patches Airline and travel
tickets, banking services, books, clothing, computer hardware, software, and other
electronics, flowers and gifts are some popular products and services that can be purchased
online. Several successful e-businesses have established their business models around selling
these products and services. Ecommerce has the potential to generate revenue and reduce
costs for businesses and entities. Marketing, retailers, banks, insurance, government, training,
online publishing, travel industries are some of the main recipients of e-commerce.

In e-commerce there may be no physical store, and in most cases the buyer and seller do not
see each other. The Web and telecommunications technologies play a major role, in e-
commerce. Although the goals and objectives of both ecommerce and traditional commerce
are the same—selling products and services to generate profits—they do it quite differently.
Traditional commerce presents product information by using magazines, flyers. On the other
hand, ecommerce presents by using web sites and online catalogs. Traditional commerce
communicates by regular mail, phone yet e-commerce by e-mail. Traditional commerce
checks product availability by phone, fax and letter. However, e-commerce checks by e-mail,
web sites, and internal networks. Traditional commerce generates orders and invoices by
printed forms but ecommerce by e-mail, and web sites. Traditional commerce gets product
acknowledgments by phone and fax. On the other hand, e-commerce gets by email, web sites,
and EDI. It is important to notice that currently many companies operate with a mix of
traditional and e-commerce. Just about all medium and large organizations have some kind of
e-commerce presence.

E-COMMERCE BUSİNESS MODELS

The ultimate goal of an e-business is to generate revenue and make a profit, similar to
traditional businesses. It is factual that the Internet has improved productivity for almost all
the organizations that are using it. Nevertheless, the bottom line is that productivity must be
converted to profitability. To achieve profitability as the final goal, different e-businesses or
e-commerce sites position themselves in different parts of the value-chain. To generate
revenue, an e-business either sells products/services or shortens the link between the
suppliers and consumers. Many business-to-business models try to eliminate the middleman
by using the Web to deliver products/services directly to their customers. By doing this they
may be able to offer cheaper products and better customer service to their customers. The end
result would be a differentiation between them and their competitors, increased market share,
and increased customer loyalty. Products sold by e-businesses could be either traditional
products, such as books and clothing, or digital products, such as songs, computer software,
or electronic books.

BUSINESS PLAN
Fashion negatively impacts the environment and is calling for the need to switch or bring
change in the business model of fashion. Change in demand of the business model and more
aware consumer has led to the demand of apparel available for rent. India is a land of various
celebrations. Consumers demand blingy/heavy traditional wear to dress up for these
occasions. Especially Indian marriages that has minimum of four main functions needs a lot
of money to be spent on dresses and jewelry. To cater to this problem, the rental market in
India is targeting the middleman whose income would be in the range of 12-15 lakhs per
annum and do not want to invest on expensive clothing for one-time use. The apparel market
is said to grow by an overall 11% and is dominated by women. Keeping the same in mind,
the rental market is targeting the women apparel industry as well.

Another important physiological factor that plays an important role is the undying need, of a
woman, for choice and variety. Majority of the women want to spoilt by the choices of
clothes variable to them and are reluctant to repeat an outfit. This is another problem that
rental market in India wants to target. Want to wear it once? Why not rent it? This helps save
money and gives one an option to wear something new every time.

Since the concept is new, the aggressive players in the Indian market are limited to 2-3
players. The rising awareness and conscious of the Indian population have created the higher
demand, which has, and further will, lured more players in the industry.

INDUSTRY OVERVIEW

Clothing rental business falls under the Formal Wear & Costume Rental Industry and
businesses in this industry engage in renting out women’s formal wear (e.g. bridal wear and
gown), men’s formal wear (e.g. tuxedo and suit), costume, motion picture wardrobe and
costume, theatrical wardrobe and costume and other clothing to consumers. It is important to
state that this industry does not include companies that sell these items.

According to a research report by Allied Market Research, the rental clothing market is
expected to grow to $1,856 million by 2023 from $1,013 million in 2017, at a CAGR of
10.6%. The reason being the rapid growth in the field of technology, the high penetration and
adoption of smartphone use globally. The driving factor for the consumers to be attracted to
rental clothing is the value for money that rental clothes offer. On the other hand, the lack of
awareness of the concept acts has a restraining factor for the same.
North America has the biggest market share of 40% in 2017, followed by European market.
Increased use of the internet and urbanisation in the countries like china and India will be the
reason for boost of the clothing rental market. Women would dominate the rental clothing
market and will account for 58% of the rental market share, according to the market forecast.
Women make for the highest share as they are the ones who don’t want to repeat clothes.
Social media would help trigger growth in the online as well as offline clothing rental market.

Currently, the clothing rental market is facing high demand of festive outfits for events like
corporate events, weddings, bachelorette wear. In Asian region, festive wear means wedding
wear such as sari, lehenga and gowns for women, and tuxedo and suit for men.

However, western wear is the highest growing segment during the forecast period, as it
consists of corporate wear in countries of North America and Europe, while party wear in
Asian countries. Western wear is expected to grow at a comparatively higher CAGR,
particularly, due to the rise in demand of rental formal wear. The growth in corporate world
and the increase in female workers have boosted the usage of formal wear.

Individuals going through rapid body shape change such as pregnant women and kids are the
target customer base for some of the market players in this industry. Thus, clothing rental
service enables a cost-effective option for consumers by renting the particular type of dress at
a much lesser price than its original price for a short period of time.

New players are entering the market and looking for funds, whereas the old players are
holding onto their position and have a stronger footprint in the market due to their early start
and adaptation to changes. The US market is supporting the shared economy space,
maximum contribution coming from the millennials. Millennials have been of a mindset to
waste less and increase an outfit’s life cycle. More than 10 players are currently in operation
in the US market and have raised $230 million.

The clothing rental shop business will continue to blossom because there will always be
weddings, corporate dinners and parties, hence, the need to rent tuxedos and other formal
wears. Some of the factors that encourage entrepreneurs to start their own clothing rental
business could be that the business is easy to set up and manage with minimal start-up capital
and manpower. The truth is that if a cloth rental shop is stocked with designers’ tuxedos,
costumes and other corporate wears and also positioned in an environment with the right
demography, they will sure attract regular clients and their items will be well booked all
through the year.
 VISION

Their Vision is to become the number one online clothing rental company in the whole of
India with active presence in major cities in Maharashtra, West Bengal, Karnataka and New
Delhi.

 MISSION

Their mission as a clothing rental company is to develop a highly successful, profitable

online clothing rental business that will provide quality services in their community and to
become a standard for an ideal online clothing rental
business in Mumbai.

 LOGO OF THE COMPANY

A company logo is a symbol of the company's identity. It

creates customers' first impression of the company.

The logo of the company ‘RENT IT’ is in a circular shape

including triangles of various sizes.
Circles tend to project a positive emotional
message. Using a circle in the logo, ‘RENT IT’ suggests community, friendship, love,
relationships and unity. Circles are round and soft, which gives off a certain feel that is
drastically different than most other shapes. They’re often associated with femininity, and
they can also portray security, continuity, and protection. The usage of triangles in the logo
represents a good association with power, science, religion and law. These tend to be viewed
as masculine attributes, representing the company’s service offerings for men.

The link between colour and brand identity is strong. The logo is a combination of the
following colours:

• Red implying excitement, bold, youthful, and passion for fashion.

• Pink can be fun and flirty, representing feminine associations with the company’s service
offerings, which are specifically targeted at women.
• Black is a colour representing class, luxury and sophistication.
• White is generally associated with purity, cleanliness and simplicity.

The implication of multiple colours in the logo shows that the company ‘RENT IT’ is
offering a wide choice of products and services.

The hanger is generally intended to support and display apparel. Hanger is one of the most
known and popular manners of displaying various items of clothing. ‘RENT IT’ used it to

represent its connection with the fashion industry. The symbol ‘♡’ represents the love of the
people towards fashion.

The slogan of the company ‘RENT IT’ is ‘love | rent | wear | return.’

 BUSINESS STRUCTURE

The success of any business lies in the foundation on which the business is built on, which is why they
have decided to build their clothing rental company on the right business foundation.

As a matter of fact, they are set out to build a clothing rental business that will compete favourably with
leading brands in the industry. They want to build a business of dedicated workforce who will ensure that
their customers are satisfied and they get value for their money.

They are aware that it takes a business with the right employees and structure to achieve all what we
have set to achieve, which is why will be putting structures and standard operating processes in place
that will help them to deliver excellent services and run the business on auto pilot. The success of their
clothing rental business will be anchored on the team not on any individual.

With their service offerings, ‘RENT IT’ is only expected to employ more than it is required to run a
conventional clothing rental business. Definitely, they will have various employees to man the various job
roles available in ‘RENT IT’ Clothing Rental Services, Inc.

CLOTHING RENTAL BUSINESS PLAN - SWOT

ANALYSIS
They are building a standard clothing rental services business with variety of complimentary services
which is why they have decided to subject their business idea (company) to SWOT Analysis.

 STRENGTHS
Aside from the wide range of clothes and costumes from different designers under their rental services,
‘RENT IT’ Clothing Rental Services, Inc. is centrally located in a densely populated business and residential
estate in Mumbai; their location is in fact one of their major strength. Another strength that counts for
them is the power of their team. They have a team of experts in the formal wear and costume rental
industry.

 WEAKNESSES

‘RENT IT’ Clothing Rental Services, Inc. is owned by a group of people, and they may not have the
financial muscle to sustain the kind of publicity they want to give their business. As a new business, they
are also quite aware that it will take time for them to build trust with their clients.

 OPPORTUNITIES

They are centrally located in one of the busiest areas in Mumbai, Maharashtra and they are open to all
the available opportunities that the city has to offer. Their business concept also positioned them to be a
one stop shop in the clothing rental business.

The truth is that there are no standard clothing rental services within the area where theirs is going to be
located; the closest clothing rental services company to their proposed location is about 9 miles away. In
a nutshell, they do not have any direct competition within their target market area.

 THREATS

Some of the threats that are likely going to confront ‘RENT IT’ Clothing Rental Services, Inc. are
unfavourable government policies, seasonal fluctuations, demographic/social factors, downturn in the
economy which is likely going to affect consumer spending and of course emergence of new competitors
in their location.

MARKET ANALYSIS
 Market Trends

One who is conversant with the latest trends in the clothing rental industry, he/she will note that more
people now rent clothes and costumes via mobile application, and other internet access rather than
visiting the office. Clothing and costumes rental mobile application usage has seen an increment in recent
time.

The business is also segmented into organized and unorganized labor, with the organized labor expected
to provide the highest incremental opportunity going forward.
The import penetration measures the portion of domestic demand that is captured by imports. An
increase in low-cost imports enables consumers to purchase formal wear for a marginally higher rate
than renting it. Import penetration is expected to increase over years, representing a potential threat to
the industry.

The number of adults in the population affects demand for formal wear and costume rental. In particular,
adults aged 20 to 65 are a key demographic for spending on formal wear rentals, as this age group
accounts for almost 80.0 percent of industry revenue. The number of adults aged 20 to 64 is expected to
increase, representing a potential opportunity for the industry.

Another notable trend in the industry is that most clothing rental companies in the bid to survive the
recent global economic meltdown included additional services to their core service offerings.

 Target Market

Before choosing a location for a clothing rental services, we conducted our feasibility studies and market
survey and we were able to identify those who will benefit greatly from our service offerings.

The demographic component of those who need the services of clothing rental services spreads across
the public sector, the organized private sector, and individuals from different strata of the society and
from all walks of life. Below is a list of the people and organizations that our clothing rental services is
designed for:

• Households
• Corporate Executives
• Theatres
• Students
• Movie producers

 Competitive advantage
Clothing rental is an easy to set up business that does not require formal training; anybody can set a
clothing rental services business if they have the required start-up capital.

It means that the possibility of such businesses springing up in this location is high- Mumbai, India.

The location of clothing rental business will definitely count as a positive amongst any competitor that
might start a clothing rental business in same location.

For the time being, RENT IT Clothing Rental Services, Inc. has many competitors like Flyrobe, Stage 3, Rent
It Bae, Rent closet that can compete with wide range of clothes and costumes from different designers.
Customer service will be customized to meet the needs of all customers.

Lastly, all the employees will be well taken care of, and their welfare package will be among the best
within the category in the industry. It will enable them to be more than willing to build the business and
help to deliver the set goals and achieve all the business aims and objectives.
 CLOTHING RENTAL BUSINESS PLAN - SALES AND
MARKETING STRATEGY
 MARKETING STRATEGY AND SALES STRATEGY

The marketing strategy for RENT IT Clothing Rental Services is going to be driven by wide range of clothes
and costumes, excellent customer service, honesty and quality service delivery. This company will build a
loyal customer base. It drive sales via the output of services and via referral from satisfied customers.

Sales and marketing team will be recruited based on their vast experience in the industry and they will be
trained on a regular basis so as to be well equipped to meet their targets and the overall goal of RENT IT
Clothing Rental Services, Inc.

The goal is to grow RENT IT Clothing Rental Services, Inc. to become the leading clothing rental company
in India. In future the company will add accessories like bags, shoes, sandals etc. in their service offerings.

RENT IT Clothing Rental Services, is set to make use of the following marketing and sales strategies to
attract clients:

• Introduce clothing rental services business by sending introductory letters alongside brochure to
corporate organizations, movie makers, households and key stake holders in – Mumbai, India.
• Print out fliers and business cards and strategically drop them in offices, libraries, public facilities,
airports and train stations.
• Use friends and family to spread word about our business
• Post information about our company and the services we offer on bulletin boards in places like
schools, libraries, and local coffee shops.
• Place a small or classified advertisement in the newspaper, or local publication about our
company and the services we offer.
• Leverage on referral networks such as agencies that will attract clients who would need our
customized services.
• Advertise our clothing rental services company in relevant magazines, newspapers, and TV and
radio stations.
• Attend relevant expos, seminars, and business fares to market our services.
• Engage in direct marketing approach.
• Encourage the use of Word of mouth marketing from loyal and satisfied clients.
• Join local chambers of commerce and industry to market our services.

 PRODUCT

‘RENT IT’ Clothing Rental Services, Inc. is planning to achieve the aim of maximizing the profit in the
industry and for this, company make sure to attract clients on a regular basis.
‘RENT IT’ will generate income by offering the following clothing rental services and other related
services:
• Women’s formal wear (e.g. bridal wear and gown) rental

• Men’s formal wear (e.g. tuxedo and suit) rental

• Costume rental
• Motion picture wardrobe and costume rental
• Theatrical wardrobe and costume rental

 SALES FORECAST

The company is planning to place their position in Mumbai, India, because the company is quite
optimistic that it will help the company to meet their set target of generating enough income/profits
from the first six months of operation and help to grow the company business and their clientele base.

‘RENT IT’ clothing Rental Services, Inc. examine the clothing rental services market and then analyse their
chances in the industry. After that, the company come up with the following sales forecast. Below is the
sales projection for RENT IT, it is based on the location of company business and of course the wide range
of related services that the company will be offering:

• First Fiscal Year: ₹ 1,11,88,500

• Second Fiscal Year: ₹1,49,18,000
• Third Fiscal Year: ₹1,86,47,500

This project is done on the base of what is obtainable in the clothing rental industry and with the
assumption that there won’t be any major economic meltdown and there won’t be any major competitor
offering the same services as the company does within the same location.

 PRICING STRATEGY

The company’s pricing system is going to be based on what is obtainable in the clothing rental industry,
the company doesn’t intend to charge more and don’t intend to charge less than its competitors are
offering in Mumbai, India. Be that as it may, the company have put plans in place to offer discount
services once in a while and also to reward company’s loyal customers especially when it refers clients to
the company.

The prices of ‘RENT IT’ services will be same as what is obtainable in the open market.

• PAYMENT OPTIONS

The payment policy of ‘RENT IT’ is all inclusive because the company is quite aware that different
customers prefer different payment options as it suits them, but at the same time, the company will
ensure that it is abiding by the financial rules and regulation of the India.
Here are the payment options that ‘RENT IT’ will make available to its clients;

• Payment via bank transfer

• Payment with cash
• Payment via credit cards
• Payment via online bank transfer  Payment via cheque

In view of the above, the Company has chosen banking platforms that will enable its clients make a
payment for renting company’s clothes and costumes without any stress on their part. Bank account
numbers of the company will be made available on its website and promotional materials to clients.

 CLOTHING RENTAL BUSINESS PLAN - PUBLICITY AND ADVERTISING STRATEGY

 RENT IT’S WEBSITE

RENT IT WEBSITE’S FEATURES:

 HOMEPAGE

The homepage focuses on two important things that customers care about i.e. discovering and renting
dresses. The homepage also has a neat design and uses the white space carefully. It is not lengthy and
only consists of the most important sections. Here are the most prominent ones:
Banner: A pinch of innovation on the homepage banner is added using two conversion elements. One
which takes visitors to How It Works page while the other starts the dress booking process instantly. An
image and a website message is used for the banner area to make it more attractive.

Most popular styles: Some designers and dresses are popular amongst customers. These are displayed
on the homepage in a slider to get visitor’s attention. This section is placed belowthe-fold area. In
addition to dress images, the section also displays:

• Dress name

• Designer name

• Rental price

• Add to favourites option

Seasonal Styles: The homepage features another eye-catching section that introduces the visitor to
different seasons. This is in the form of a dedicated page and display lists of seasonal collections. Filters
are also added in a side panel to generate tailor-made results.

In addition to that, a discount is offered on the first purchase to encourage users to buy from your
website or app and boost conversions.

A pop-up is displayed that highlights the discount & registration link when a user lands on the homepage
of the RENT IT website.

Now let’s move on to RENT IT website’s inner pages.

 RENT IT’S PAGES

Item pages of the website is an inspiration for e-commerce stores as well as users. It is highly
informational with zero clutter.

From renting process to image reviews, everything is organized while keeping the user experience in
mind. The dress page covers one section at a time.

Rental Form: The process of reserving a dress is quick. Users are asked about necessary information like
zip code, size, and delivery date and at the end of the form, there is the ‘Reserve’ button. The following
value added options are also featured in the section:

• Stylist notes: Details about product being in trend

• Size and fit: Size guide table

• Product details: Technical details about the product

• Share buttons: Share product on social networks

Dress Images: Like most online stores dealing in clothes, RENT IT website consists of highquality images
clicked professionally. Beside the product images it also has a place to display customers’ photos who
previously rented them.

These images can be fetched from reviews and helps the customers see how a dress really looks.
Implementing such competitive features adds more value to the brand.
Review system: The rating and review system is implemented in a way that users can easily discover
relevant reviews. Here are a few things implemented to deliver a satisfying user experience:

• Filters like size, height and bust

• Details like age, body type, and height

• Review and photo sliders

Recommendations Section: Sometimes, just one dress is not enough. That’s why RENT IT website and
app has a ‘You may also like’ section just below the product details. From design to implementation,
everything is right with dress recommendation feature.

PROCESS FLOW DIAGRAM FOR RENT IT’S ONLINE PLATFORM

 

NAVIGATION

On the main navigation bar, there are tabs for main product categories like Dresses, Clothing, and
Occasions which leads users to the selected product category page. Other than that, following tabs are
also displayed which makes the section easier:

• Subscription

• Designers

• Stores

Moving further with pages’ tabs design and their unique features.

Subscription: This page carries the service that is at the apex of a website’s revenue generation strategy.
In order to accomplish the feat of making the customers rent from them on a daily basis, they need to
come up with some engaging subscription plans. For example, yearlong free delivery, unlimited clothes,
and more.

Here is a list of sections on the subscription page:

• Banner with service introduction

• Brand associations

• FAQs

Designers: Under this tab, designers are listed associated with RENT IT’s marketplace. Designers have a
dedicated page that features an introduction about them followed by their products and their availability
for rent or sale.

Stores: Under this section, stores are listed that act as physical addresses for the brand. Clicking on any
store will take users to the respective store’s page, which features the following:

• Services

• Location

• Hours

• Contact info

• Booking system

They use a reliable third-party solution for booking functionality.

 PRODUCT CATEGORY PAGES

How to find the right size, length, color, sleeve, body type, neckline, age, trend, style, and designer when
looking for a dress? The answer is simple — use filters. They offer a detailed set of filters that gives
complete freedom to their customers and helps them search for what they are looking for in a seamless
manner.
 

CHECKOUT PROCESS

Unlike most e-commerce stores, their dress rental website doesn’t divide the whole process into different
sections and wrap it all up on a single page. They emphasize on the security of the payment gateway.

Additionally, they have enabled a feature that allows customers to pick up the order from nearby
locations instead of getting them delivered.

 USER ACCOUNT

Through their account, registered shoppers are able to view and manage every detail related to their
orders, profile, and rewards. It has dedicated sections for:

• Upcoming order – View and modify your orders.

• Order history – View history of your orders.

• Profile – Update your profile

• Credits – View referral credit available

• Invites – Send invites to earn credits

• Assessment – Submit personal details to get style assessment.

• My Appointments – Appointment details with sellers

Basically, users are able to manage every aspect of their activities on RENT IT’s website and app through
their respective accounts.

 HELP SECTION

To simplify things for users their team delivers an extensive Help section. Major highlights of the Help
section includes:

• How It Works page

• FAQs

• Contact Us page

• Section to ask a new question

Detailed search filters, intuitive contact forms, and links to other helpful resources enables their website’s
Help section to answer every query related to the website’s features and functionalities.

QUALITY ASSURANCE
 

Quality assurance is a challenging aspect of every e-commerce business. But since the products are
reused things become more challenging for rental marketplaces.

Renters get a dress in the condition it is displayed on the website, but when the dress is returned, will it
be in the same condition?

Such concerns that need to be addressed proactively to ensure a smooth sailing for an online rental
business.

Here are some steps they take in this regard:

• Charge an insurance fee from the renters to cover any unexpected damages

• Conduct a thorough quality check before renting a product

• Implementing the provision of insurance for expensive items

 REQUEST AN ITEM OPTION

There is a possibility that the target market already has an online rental marketplace and maybe new
ones will emerge with time. And in order to stand out from the competition, they offer something
unique.

Request an Item is one such feature. Its purpose is simple, if customers don’t find the dress they are
looking for, they can request for it on the marketplace. In the long-term, this feature will also help them
in expanding their product categories without spending extensive efforts on market research.
 

 LOGIN RELAXATION

Not every visitor is comfortable with registering right away. RENT IT lets their visitors ‘like’ products and even
add them to cart without registration. This feature increases the time customers spend on their website or
app and improve conversions.

 OPTIMIZED CHECKOUT PAGES

Every e-commerce store owner hates cart abandonment. Optimized checkout pages play a pivotal role in
minimizing cart abandonment rate. In an effort to close the deal on a single page, they do not clutter the
checkout section. They implement a design that is a best-fit for their business.

 OTHER FEATURES

They also incorporate some other interesting features like creating a rental product calendar that displays
real-time stock availability, defines buffer days for product return, block unavailable dates for rented
products and extend rental duration from the admin panel.

 STARTUP EXPENDITURE (BUDGET)

‘RENT IT’ have been able to pull cash that will be enough for a successful launch of this standard clothing
rental company with a wide range of clothes and costumes from different designers. These are the key areas
where the company will spend its start-up capital on:

• The total fee for incorporating the business in India – ₹55,943

• The budget for basic insurance policy covers, permits and business license – ₹1,86,475
• The amount needed to acquire a suitable facility that will accommodate company’s laundry (Re-
Construction of the facility include) – ₹59,67,200
• The cost of equipping the office (computers, software applications, printers, fax machines, furniture,
telephones, filing cabins, safety gadgets and electronics) – ₹3,72,950
• The cost of launching an official website – ₹44,754
• The cost for the purchase of a wide range of clothes and costumes – ₹74,59,000
• The cost for the purchase of a delivery van – ₹3,72,950
• Budget for paying at least 4 employees for 2 months plus utility bills –₹22,37,700
• Additional Expenditure (Business cards, Signage, Adverts and Promotions) – ₹1,86,475  Miscellaneous:
₹3,72,950

22
 

Going by the report from the market research and feasibility studies conducted, the company will need about
(₹1, 72, 56,397) Indian currency to successfully set up a medium scale but standard clothing rental business
firm in the India.

 GENERATING FUNDS/STARTUP OF RENT IT

‘RENT IT’ will be owned and managed by Debopriya Saha, Ruchi Ratan, and Simran Singh. The company is
planning to restrict the sourcing of the start-up capital for the business to just three major sources.

• Generate part of the start-up capital from personal savings and the sale of their stocks,
• Generate part of the start-up capital from friends and other extended family members, 
Generate a larger chunk of the start-up capital from the bank (loan facility).

The company has been able to generate about 74,59,000 (Personal savings 59,67,200 and soft loan from
family members 14,91,800) and the company is in the final stage of obtaining a loan facility of 97,97,397 from
the bank. All the papers and documents will be duly signed and submitted.

 CLOTHING RENTAL BUSINESS PLAN - SUSTAINABILITY AND EXPANSION STRATEGY

It is an established fact that the future of a business lies in the number of loyal customers that they have, the
capacity and competence of their employees, their investment strategy and the business structure. If all of
these factors are missing from a business, then it won’t be too long before the business closes shop.

One of the major goals of ‘RENT IT’ Clothing Rental Services, Inc. is to build a business that will survive off its
own cash flow without the need for injecting finance from external sources once the business is officially
running.

The company knows that one of the ways of gaining approval and winning customers over is to rent out its
clothes and costumes a little bit cheaper than what is obtainable in the market and the company is prepared
to survive on a lower profit margin for a while.

‘RENT IT’ will make sure that the right foundation, structures and standard operating processes are put in
place to ensure that its staff welfare are well taken of. Company’s corporate culture is designed to drive its
business to greater heights and training and retraining the workforce is at the top burner of its business
strategy.

As a matter of fact, profit-sharing arrangement will be made available to all company management staff and
it will be based on their performance for a period of five years or more as determined by the board of the
organization. The Company knows that if that is put in place, the company will be able to successfully hire

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and retain the best staff in the company; they will be more committed to help the company in building the
business and achieve its target and dreams.

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