BUSINESS PLAN

보석
Gojoseon Shop
I named my business as “Jewel’s Gojoseon Shop” which 보석 means “gem” Jewel and
Gojoseon means ”Korean”. You can call my shop J’Korean. We offer Korean outfits for
Korean fans out there.

.
1. Executive Summary

Jewel’s Korean Shop, unlike a typical fashion shop, will provide a good service to all
our target customers. The publics want: (1) good quality with affordable price, (2)
accessibility to the shop (3) membership to be offered discount (4) delivery of the products
(5) availabilities to buy online.
Filipinos really love Korean outfit. It is a way of life, a life which makes every single Korean
lover extraordinary. Here’s Gojoseon Shop to bring you the finest clothes outfit which are
proudly in Philippines in the lowest price.

1.1. Objectives

Jewel Korean Shop's objectives for the first 2 years of operation include: The
creation of any strategies to differentiate the Gojoseon from local existing fashion shops
with better opportunity and condition. Retailing is one of our main points to serve all
customers. Wholesaling is the next crucial point for those who want us to be a supplier.
Online service is one of the marketing strategies to fulfill the demands of those who do
online shopping.

1.2. Mission

According to the population of youth preferring new, trendy, and fashion styles,
Jewel Korean Shop is created to fulfill the demand nowadays. Furthermore, to avoid
spending too much on transportation for other sellers, we would like to become one local
of the suppliers to offer the products to them.

1.3. Keys to Success

The keys to success for the Jewel Korean shop are:

Good quality with acceptable prices

Memberships to get discounts
Wholesale and retail
Online shopping

1.4. Risks

The risks involved with starting the Jewel’s Korean Shop are:
 The economic crisis still exist in Philippine’s economy or somehow get worse
 Increase of popularity of korean shop
  The possible appear of shop that provide lower prices than ours
 The increase of suppliers in local market

2. Company Summary

Jewel Shop is going to appear in the corner of the cross road which is near in the SM
Downtown, Gaisano, and Ayala. This shop will offer all customers, especially the teenagers,
the good quality clothes with affordable optional prices from 700 to 1,500.
Customers can get every trendy and fashion dresses, typically Korean style, which is the
most popular and well-known in Philippines. We also offer all kind of stylish clothes for
customers aged between 17 and 30. The main target groups are fashionable teenagers,
students, office staff, and some middle aged people.

Moreover, Jewel Shop’s business will be categorized into two parts namely:
wholesaling and retailing.

To have an affordable price, we ourselves decided to purchase all those goods

mostly from Korea. Doing this means we can deduct the products’ cost and add value to the
products.

2.1. Start-up Summary

Jewel shop’s start-up costs will include capital to cover losses in the first year
(minim in six months), house rent, shop equipments, computer system fee, camera control,
and shop’s renovation and decoration to attract customers.
In addition, we need to renovate and redecorate the house where we rent to be a
professional fashion shop.

Table: Start-up

Start-Up
Requirement
Start-Up Expenses
Rent Expenses 186,000.00
Building Renovation 200,000.00
Network Alliance 250,300.00
JVC TV for showing action 16,200.00
Camera Control and DVR(5cams 31,000.00
Air Conditioner(Panasonic)(2sets) 46,500.00
Service Fee for air conditioner 2,850.00
Fixture and other shelves etc 87,870.00
Total 820,720.00

2.2. Company Location and Facilities

An area has been chosen near the downtown in the corner of the Rizal Street and Bonifacio
Street.
There are many reasons to decide to choose this location:
- That area is also in the downtown zone (business area)
- It is near the Novo and Department Store which sell clothes in higher price than what we
are going to
- There is parking place in back of the shop
- Well visibility
- The cost of rent is reasonable

3. Services
3.1. Service description

Our Korean Shop will provide a full extend of services in order to satisfy and make
facility to our customers. Therefore, we divided it into two categories of services:

1. Personal service: That is to upgrade our services to reach a degree of a good

impression. Our main principle is to consider customers as the king or boss. The staffs in
the J’Korean will be trained to be a good listener and able to help all what the customers
need by finding or orienting them of our goods. This is the key to makes customers feel
appreciated to our shop, and this can attract more clients to come to our shop by mouth-to-
mouth marketing strategy.

2. Material service: This is the second step for the J’Korean; we will offer all kind of
customers our service: retailer and wholesaler with reasonable price, plenty of quantity,
good quality, trendy, stylish clothes. Moreover, the customers can also purchase our
products through the internet (online shopping) with discount when they order more and
become our shop member.

For those who want to buy such a wholesale, we also have a discount for them and
have a service to deliver to their places with or without charged according to their orders.

3.2. Competitive Comparisons

Although, we just run our Korean shop but we try to find strategies to make the
Jewel’s Korean Shop be one of the leading clothes selling shop by providing services: online
shopping and delivery service, good quality of products, and stylish clothes which some
shops do not obtain yet. Our J’Korean will feature the shop be a distinct shop among others.

3.3. Fulfillment

J’Korean will obtain products from South Korea, Hong Kong, China. Those
companies will supply shirts, jeans, skirt, pants with modern style of the age of teenage and
adult to Unique Fashion. Surely, more products will be considered to import from Bangkok,
Thailand to answer to the market required and deduct transport expense from other
destination besides Bangkok, Thailand.

3.4. Future services

 Whenever J’Korean grows, more product such as; bags, belts, shoes will be added to
satisfy the customers need. The suitable place of additional products will be shown on the
first floor of our current location which J’Korean is willing to run. As well, as the J’Korean is
well known by more and more people, J’Korean will open its new branch that people are
able to find and buy. Moreover, as the changing of fashionable society, J’Korean will try its
best to import new fashionable product as well as well-design product to serve the
customers’ demand.

4. Market Analysis Summary

As the consistent popularity of Korean style is increasing from time to time in Philippines,
The Jewel’s Korean Shop will face with the dramatic supports from civilians especially from
teenagers expectedly.
4.1. Market Segmentation
The customers are divided in to 2 groups. The first group refers to the ones who are
familiar and dramatic with the fashion and special design of Korean youth clothes. They are
normally teenagers who are both students and employees. The second group is either love
Korean clothes, but this group is categorized in the middle ages. The middle-aged are not
really interested in the dramatic design or fashionable clothes, but they will surely love the
quality of clothes in Jewel Korean Shop.

Both men and women will be enthusiastically interested in Jewel’s Korean Shop as there
will be clothes for both male and female teenagers and the middle aged. Because of that, the
customers are expected to be between the age of 15 and 30 with both sexes.

Market Analysis
 Potential customers
Students
Office Staff
Senior
Teenagers
Others
Total
Teenagers

Table: Market analysis

Market analysis Growth

20%
15%
10%
30%
5%
80%
8
5
9
2
3
1
6

4.2. Target Market Segment Strategy

4.2.1. Market Needs

Others

2016

8000
5000
4000
10000
2000
29000
Office Staff

2017

9600
5750
4400
13000
2100
34850
Students

2018

11200
6500
4800
16000
2200
40700
Senior

2019

12,800
7,250
5,200
19,000
2,300
46,550

We intend to offer services to those who fancy of wearing the high quality clothes with the
appropriate prices. All stuffs in Jewel’s Korean Shop will be unique for Korean citizens
because those kinds of clothes will be only brought from various well-know suppliers.
Besides that, as the Internet is accessible and used widely in Korea, the customers will have
a chance to order or purchase clothes online from Jewel’s Korean Shop through Facebook,
and our website (www.jewelskoreanshop.com.ph).

It is ensured that the high demand of Korean clothes exist in Korea because the design of
Korean clothes totally satisfies both teens and the middle aged through the occurrence of
Korean film stars and pop singers on television. We are also expecting that the popularity
of Korean Fashion will remain constantly for years as the cool quality and attractive design
of Korean clothes are improved from time to time.
According to the observation, Jewel’s Korean Shop will hopefully hold at least 85 percent of
Korean clothes market as there is only a small number of Korean Clothes Shop in Korea. In
the next few years, it is anticipated that more competitors will enter the market. However,
Jewel’s Korean Shop has determined to maintain the percentage greater than 50 percent in
the Korean clothes market share in Korea as we will exclusively import the exquisite and
fashionable Korean clothes to our developing country.
4.2.2. Market Trend
Although quality is essential, price is also an important major in daily life. Obviously,
Philippine people especially teenagers will not tend to spend large amount of their money
because some of them are still in college. Some teenagers and middle ages are not even
interested in new fashion. They do not really care about the fashionable clothes, whereas
the others are crazy about new international styles.
Accordingly, we can find out that 400-1,000 is the suitable amount of money that both mid-
to high-income consumers tend to spend on their clothes.
4.3. Service Business Analysis
The economy of Philippines has been growing rapidly, and the living condition of people
especially in Manila has been highly raised. There are major factors contribute to the
demand of Korean clothes in Manila. Most economic activities are in Manila, so people from
around the country will come to Manila in case they want to buy fashionable clothes. When
people are rich, they would think much about their appearance especially fashion. In
addition, almost all universities in the country are located in Manila, and this means most
teenagers, who are favor of fashionable clothes, are in Manila. Current trends of teenagers
in Manila reflect the great demand for fashionable clothes with affordable prices.

In term of lifestyle and fashion, Korean culture has been strongly influenced on Philippine
teenagers through tourism, investment, movies, and music since 2008. Those who are rich
and fashionable dare to spend a lot of money travel to buy those fashionable products
abroad. In order to facilitate this situation, Jewel’s Korean Shop will seek to provide the
quality Korean style clothes and convenient services to all customers within acceptable
prices which most people can afford.

In order to compete with the large number of competitors, the owners must distinguish
Jewel Korean Shop from other existing fashion shops in Manila to sustain its survival, to
gain market share, and to achieve competitive advantage. Korean designed clothes with
affordable price, innovative decoration, and perfect services are the key success of Jewel’s
Korean Shop over its competitors. Jewel’s Korean Shop will be the first shop which
provides original Korean designed clothes with gold quality, and this will push the shop
into the profitable stage.

4.3.1. Business Participants

There is no Korean clothes wholesaler or retailer in Korean, so the owners will have to
purchase Korean clothes from supplier in Thailand, China (mainland), Hong Kong, or the
owners will have to travel to purchase those products in South Korea directly. For online
purchase, there are a few websites which provide the price rank, suppliers, products
overviews (i.e. www.ccby88.com, www.hehe.com).
4.3.2. Distribution Patterns
Besides direct rival, Jewel Korean shop’s business has to cope with problems related to
Korean styled clothes retailers. Recently, not many fashion shops in Manila import clothes
directly from South Korea; therefore, there are not many competitors. Most clothing is
imported from Thailand, Hong Kong, and China, so the price is cheaper than that from
South Korea; as a result, Jewel Korean shop will face some competition in term of price.
Korean made clothes’ price is ranking from 700 to 1,500 for casual clothes, while Chinese
made clothes’ price is just ranking from 250 to 700. Due to the demand of clothes with
affordable price, Unique Fashion Shop will alternatively import clothes from the country
mentioned above where the price is cheaper than that in South Korea.
4.3.3. Competition and Buying Patterns
The main competitors in retailing clothes are, SM Downtown, Gaisano, Ayala and so forth.
These businesses are located in the city town, especially along SM, and target similar
market segmentation to Jewel Korean shop’s (i.e. teenagers, students, and young office
staff). However, unlike other existing shops, Unique Fashion Shop provides both menswear
and women swear with a lower price than that of those shops.
5. Strategy and Implementation summary

To start up a fashion shop, we have 5 points to do with our business. The first point is
related to our staff. We need the staff that suitable for the work; it means that they have
much working experience with fashion. The second point is that we need to survey the
market specification to buy the raw and also the final products because we need to import
both raw and final products. For, we need to make clothes by our staff too. For the third
point, it is related to the media that we want to use to promote our shop, for example,
magazine, leaflet and the Internet. The media is very important for fashion business
because we have the balance money and profitability of those advertisements. The fourth
point is that we need to have an expert who knows clearly about recent social trends.
5.1. SWOT Analysis
In order to run a business, we need to know about the strengths, weaknesses that show us
about the internal factors, and we also need to know about the opportunities and threats
that we will face when we run a business. Likewise we need to think about the external
factors that will affect the process of our business.
5.1.1. Strengths
When Jewel’s Shop runs, we need to know clearly about strengths.

Skillful and friendly staff: As a service business, we have well-trained and friendly staffs
who can attract customers into the shop, and we also have the staffs can sew and design
different models that are unique, imaginative and fashion where other shops cannot offer.
Location and facilities: The location of Jewel Korean Shop is very convenient and
comfortable because our shop is equipped with high air conditioners and professional
decoration which appeal to the customers.

Competitive advantage: Jewel Korean shop will offer customer with various kinds of both
male and female clothes with reasonable price where customers cannot find in other shops.

Products: Unlike other existing shops, Jewel Korean Shop intent to offer Korean made
clothes to customer who dare to purchase. Also, we have the products which are self-
designed and self-made with unique style.
5.1.2. Weakness
As a new start-up fashion shop, we face some weakness:

Popularity and awareness: Jewel Korean Shop will face with problems of awareness
among teenager; most teenagers prefer to buy clothes where they used to, so it is hard to
bring to Jewel Korean Shop.

Accessibility of fashion trend: As it is the new business, so it is very hard for Jewel Korean
shop to determine the trends effectively.
5.1.3. Opportunities
Growing of Teenagers: There are many chances for our shop to gain the profits because
the number of teenagers that grow up every day in the context of globalization.

Livelihood of people: Philippine teenagers recently are brought up with modern

environment, so they are really fancy of fashion—they dare to pay load of money to come
up to the trends which they like. The condition of people is now better; therefore, the
demand of fashionable clothes is also raised.

Lack of supplier within the local market: The demand of Korean designed clothes is
greater than its suppliers so that it is the great opportunity for Jewel Korean Shop to come
into the market.

5.1.4. Threats
Doing this business, we encounter some principal threats such as:

Rapid changes in fashion: The world of fashion is not static, so we have to adopt
effectively with that trends. It is very dangerous to purchase a large inventory at the time.
Possible emerging of competitors: New generation fashion shop will come to with
innovative ideas to compete with Jewel Korean Shop. As we can see, new shops which sell
brand name similar products to ours is establishing in Manila from day to day.

The high cost of self-designed product: As most of the raw apparels are imported for
foreign countries, so the price of self-designed product is so high that it can affect the
popularity of the shop.

5.2. Competition Analysis

Before Jewel’s Korean Shop opens, we already studied about our competitors and
make the comparison between Jewel’s Korean Shop and other shops. We find that Jewel’s
Korean Shop has many edges over its competitors.
Jewel’s Korean Shop has the employees who also know how to design the cloth style and
make clothes, so it may create its own new style that can push its sale. Also, Jewel’s Korean
Shop provides the membership card to its customers for discounting that other shops do
not do.

5.3. Marketing Strategy

In order to provide the fair price for customers, Jewel’s Korean Shop sets the price base on
purchasing-price, customer-price and competitors-price. Moreover, Jewel’s Korean Shop
also helps its customer know about how to identify the original products, doing so will
make the shop more reliable. For the 6-month-existed-korean style Jewel’s Korean Shop
discounts 5 percentages from the new-released price. Moreover, Jewel’s Korean Shop will
prepare fashion show to demonstrate its clothes in the special occasions such as Festivals,
New Year, and Christmas Day. Furthermore, Jewel’s Korean Shop propagandizes itself on
Medias such as Internets, Magazines, and leaflets. For every purchase over 2,500.00, will
get 10 percentages. Online marketing campaign such as Facebook or website will also be
used.

5.4. Sale Strategy

Jewel’s Korean Shop trains its employees to know well about each kind of cloth style in
order to inform and introduce to customers about the real details of each clothes. More
importantly Jewel Korean Shop’s employees are friendly, helpful and hospitable for all
customers.

6. Management Plan
Jewel Shop is owned and operated under the name of company, Jewel Korean Limited
Partnership. The company is in fact fairly small, but there are a general partner and other
seven limited partners. The implementation of organizational structure strongly rely on the
general partner, Mr. Daniel, to make all principal decisions and monitor all other business
activities.

6.1. Personnel Plan

The staff of Jewel Korean shop will consist of two 6 employees working from 8 a.m. to 7
p.m. (4 shop assistant and 2 designer/tailor) a day with various payroll per month. In
addition to those ten full-time staff, all other limited partners will be responsible to help
controlling day to day business activities whenever they are available. The others seven
investors, Ms. Kath, Ms. Jen, Ms. Sydney, Ms. Alyssa, Mr. Kurt, Mr. Gian and Mr. Vince, will
involve in the management process. Although this management process is a bit complicated
and time consuming, it will help the business to make important decision and come up to
the updated korean trends.
Table: Personnel

Personnel Plan 2012 2013 2014

Shop assistant 1 4,100.00 4,100.00 5,100.00

(Female)
Shop assistant 2 4,100.00 4,100.00 5,100.00
(Female)
Shop assistant 3 4,100.00 4,100.00 5,100.00
(Male)
Shop assistant 4 4,100.00 4,100.00 5,100.00
(Male)

Tailor 1 6,100.00 6,100.00 7,700.00

Tailor 2 6,100.00 6,100.00 7,700.00

Total people 6 6 6
Total payroll 28,600.00 28,600.00 35,800.00

7. Financial Plan
Sales: The sales of menswear and women swear will be estimated up to daily actual
demands. We project that our sales will be rise in some important national holiday such as
New Year, Christmas Day, Valentine’s Day and so forth.

Cost of goods sold: The cost of goods sold for menswear, women swear, and other
accessories is determined by “retail profit analysis” we obtain from the websites such as
www.hehe.com where we can find the latest prices of clothes from various suppliers. The
selling prices of clothes will be added 20% to 30% on the cost to gain the profits for the
shop.

Fixture cost: Fixture costs along with starting Jewel Korean shop include: TO Software and
Hardware =250,300.00, JVC TV for showing action = 16,200.00, five Camera Control
Devices and a DVR = 31,000.00, Air conditioner (Panasonic) (2sets) = 46,500.00, fixture
and shelves = 87,870.00. Total fixture cost is 431,870.00.

Salaries Expense: The owner and other investors will not receive the salary, but they will
be offered the dividend up to the number of shares and profit earned. On the other hand, 6
full-timed staffs will be paid up to their position as mentioned in the personnel plan.

Rent Expense: Unique Fashion shop is renting a house at the high street with rent of
6,200/month. The renting contract agreed that we have to pay the rent 6,200 for 24
months with 6 months deposits. After the two year contract, we and the landlord will
renegotiate the price again.

Utilities Expense: Due to contract, the landlord will be responsible for the utilities expense
such as electricity, water service, waste disposal, and real estate taxes. However, the shop
will be responsible for phone bills. In case of Philippines, we decide to use prepaid service
which is more convenient and flexible such as met home or cell phones, so the phone bills
will depend greatly on the real situation.

Insurance Expense: For security and stability of Jewel Korean shop, the owners decide to
purchase property insurance service of Infinity Insurance. The property insurance service
expense will cost 51,580.00 a year.

Legal procedure and consulting fee: The cost of issuing some important legal document
in order to register the business, start up the shop, and other necessary legal procedures
will be 15,470.00. As issued in the law, official registration fees will cost 7,730.00, and the
other 10,050.00 will be spent on miscellaneous tasks.
Taxes: As a registered business body in the ministry of commerce, Jewel Korean shop is
taxable under the taxation law. According to taxation department of ministry of economy
and finance of Philippines, Jewel Korean shop, a new established business, will have to pay
around 119,000 for government tax/stamp duty, and Jewel Korean shop will also have to
be taxed 15,470.00 annually for patent tax. As an importer, Jewel Korean shop will also
have to pay for VAT up to its real annual income.

Table: Start-up funding

Start-up funding

Start-up Expenses to Fund $ 33,800

Start-up Assets to Fund $ 15,135

Total Funding Required 820,720.00

Assets

Non-cash Assets from Start-up 264,860.00

Cash Requirements from Start-up 515,800.00

Total Assets 780,660.00

Capital

Planned Investment

Siem Pichnorak 515,800.00

Men Pioun 515,800.00
Khay Sovat 515,800.00
Sok Dara 515,800.00
Lim Sivy 515,800.00
Chheak Sokheang 515,800.00
Ruon Sophina 515,800.00
Phuon Makara 515,800.00

Total Planned Investment 4,126,400

Start-up Expenses (820,720.00)

Total capital 1,600,340.00

Total Funding 820,720.00