III.

GENERAL COMPANY DESCRIPTION:

About Boutique:
Clothing industry summarizes the types of trade and industry along the production
and value chain of clothing and garments, starting with the textile industry
(producers of cotton, wool, fur, and synthetic fiber), embellishment using
embroidery, via the fashion industry to appeal retailers up to trade with second-
hand clothes and textile recycling. The producing sectors build upon a wealth of
clothing technology some of which, like the loom, the cotton gin, and the sewing
machine heralded industrialization not only of the previous textile
manufacturing practices.

“Boutique”, It immediately sets expectations. Those expectations may vary a bit

from person to person, but in general, a boutique for clothing is usually a medium -
end, specialized business. A boutique might focus on one type of product or
service or on serving a specific type of customer. It originally referred to either a
small specialized shop or a small shop within a larger store.

A Small shop or a small specialty department within a larger store, especially one
that sells fashionable clothes and accessories or a special selection of other
merchandise.

Boutiques in India sell fashionable and trendy items like garments, jewelry and
accessories. However, majority of them sell trendy clothing, which have got
maximum demands. Some boutiques in India sell products for all segments of
people - for the women, for the men and for the children. However, some others
may have specialties, as often can find boutiques exclusively for the women, or for

DSBA, Bangalore P a g e 1 | 34
the men. There can be boutiques exclusively for the children as well. As people are
getting more fashion-conscious these days, the demands for boutiques in India are
also growing high. A number of boutiques have come up in almost every city or
town in the country. However, the metropolitan and other big cities are the places
where one can find maximum number of boutiques.

The customers of boutiques in India are mostly from higher- and middle-class
families who starve for fashion. They are mainly the segment of people who have
enough disposable income to spend on fashion and entertainment.

VISION STATEMENT:

 We strive to be caring and well-managed organization for our customers and

employees and responsible corporate citizen to our society.

MISSION STATEMENT:

 Can make our customers happy and satisfy with quality and branded clothes.
 Creativity is our uniqueness.

COMPANY GOALS AND OBJECTIVES:

GOALS:

: To satisfy our customers with new products.

: To achieve brand reorganization.

: Hire creative and knowledgeable employees.

: To increase social following.

: Create new products.

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OBJECTIVES:

 The primary objective is to design clothing that will sell, and designs may
undergo multiple revisions before a designer settles on a final design.
 To provide women with a boutique that offers an elegant and classy clothing
designs.
 To showcase quality, well-constructed fashions from prominent and cutting-
edge designers.
 To offer a variety of beautiful and high-end fashion accessories
 To generate buzz and sales through top-notch exclusive.
 Increase average length of customer relationships and decrease customer
turnover.

LOCATION:

 Bangalore is the home of the top fashion rental services.

 Place that has high volumes of vehicle and human traffic apply here.
 The size of the pool from which potential customers will come from.
 At shopping centers, in residential areas, malls.
 Where products or service is in high demand or where competition is fairly low.

LICENSE REQUIRED TO START A BOUTIQUE:

 Taxes: We need to sign up with state government as a sales-tax collector. Many

states will allow us to register online. Once registered, we should collect and

DSBA, Bangalore P a g e 3 | 34
 forward the appropriate amount of tax. If we have more than one store, the tax
rate may differ between them.

 Business Structure and Name: We can structure our boutique business as a

corporation, a sole proprietorship or a partnership, among other forms. Different
forms require different amounts of paperwork to set up. we can start a
partnership or sole proprietorship without filing any paperwork with state
government, but if we intend to incorporate, we will need to file articles of
incorporation.

 Business Licenses: In some parts of the country, we will have to apply for a
state business license to legally operate boutique. Many cities and countries
require a local license, as well. If anyone open a new clothing boutique in
Houston, for example, no city business license is required.

 Building: In addition to permits for boutique business operation, we will need

one for building. premises will have to undergo inspection to make sure to
meet the local building and fire codes. If we don't, we will have to make
upgrades or repairs before the city or country will allow building to open.

CLOTHING INDUSTRY IN INDIA:

India’s textiles sector is one of the oldest industries in the Indian economy, dating
back to several centuries.

The industry is extremely varied, with hand-spun and hand-woven textiles sectors
at one end of the spectrum, with the capital-intensive sophisticated mills sector at
the other end.

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The decentralized power looms/ hosiery and knitting sector form the largest
component of the textiles sector. The close linkage of textiles industry to
agriculture (for raw materials such as cotton) and the ancient culture and traditions
of the country in terms of textiles makes it unique in comparison to other industries
in the country. India’s textiles industry has a capacity to produce a wide variety of
products suitable for different market segments, both within India and across the
world. India is working on major initiatives to boost its technical textile industry.

Owing to the pandemic, the demand for technical textiles in the form of PPE suits
and equipment is on the rise. The government is supporting the sector through
funding and machinery sponsoring.

Top players in the sector are attaining sustainability in their products by

manufacturing textiles that use natural recyclable materials.

The future of the Indian textiles industry looks promising, buoyed by strong
domestic consumption as well as export demand. With consumerism and
disposable income on the rise, the retail sector has experienced a rapid growth in
the past decade with the entry of several international players like Marks &
Spencer, Guess and Next into the Indian market.

The textile industry in India traditionally, after agriculture, is the only industry that
has generated huge employment for both skilled and unskilled labor.

The textile industry continues to be the second-largest employment generating

sector in India. It offers direct employment to over 35 million people in the
country. India is the world's second largest exporter of textiles and clothing, and in
the fiscal year 2022, the exports stood at US$ 44.4 billion. According to the

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Ministry of Textiles, the share of textiles in total exports during April–July 2010
was 11.04%. During 2009–2010, the Indian textile industry was pegged at US$55
billion, 64% of which services domestic demand. In 2010, there were 2,500 textile
weaving factories and 4,135 textile finishing factories in all of India. According to
AT Kearney’s ‘Retail Apparel Index’, India was ranked as the fourth most
promising market for apparel retailers in 2009.

India is the second largest producer of fiber. The country is the world's largest
producer of cotton and jute. India is also the world's second largest producer of
silk. Other fibers produced in India include wool, and man-made fibers. 100% FDI
is allowed via automatic route in textile sector.

India exports yarn to Japan, United States, United Kingdom, Russia, France,
Nepal, Singapore, Sri Lanka and other countries. India has the second-largest
installed capacity of spindles in the world, with 43.13 million spindles (30 March
2011) after China. Although India has a large share in world trade of cotton yarn,
its trade in garments is only 4% of the world's total.

In 2000, the Government of India passed the National Textile Policy. The major
functions of the Ministry of Textiles are formulating policy and coordination of
man-made fiber, cotton, jute, silk, wool industries, decentralization of power loom
sector, promotion of exports, planning & economic analysis, finance and
promoting use of information technology. The Ministry of Textiles is currently led
by Piyush Goyal. Darshana ben Jagdish is currently Minister of State. The advisory
boards for the ministry include All India Handlooms Board, All India Handicrafts
Board, All India Power looms Board, Advisory Committee under Handlooms
Reservation of Articles for Production and Co-ordination Council of Textiles

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Research Association. There are several public sector units and textile research
associations across the country.

The domestic apparel & textile industry in India contributes 2% to the country's
GDP, 7% of industry output in value terms, The share of textile, apparel and
handicrafts in India's total exports was 11.4% in 2020-21. India holds 4% share of
the global trade in textiles and apparel.

The market value of textile and apparel across India in the financial year 2021 was
80 billion U.S. dollars and this value was estimated to reach 190 billion U.S.
dollars by 2026.Dresses constitute the largest segment of all products sold online in
India. Close to 35% of the entire revenue generated from online sales comes from
apparel and dress materials. Apparels include ladies' clothes, men's clothing, and
children's dresses.

PROS AND CONS OF CLOTHING INDUSTRY:

PROS:

1.Wide Product Range.

The boutique business offers a wide range of products and services to the fashion
lover customer’s market. Like apparel of men, women, and children, footwear
(boots, sandals, shoes), luggage, bags, purse, watches & jewelry, accessories,
formal wear, traditional clothes, sportswear, textile, costumes, cosmetics, vintage,
and secondhand products.

2. Financial Growth.

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 The fashion business is a multibillion-dollar industry. Different multinational
companies back fashion shows and finance the artwork of creative designers and
artists.

However, they’re visionary people and they value and worth of art. If one
idea/design clicks, it would go to mass-scale production worldwide, and it would
pay off the company in billions of dollars.

3. Quality Products.

Some of the well-established fashion brands don’t compromise on the quality of

their products and services. They offer both quality and fashion at the same time.
They have established a large database of loyal customers because of the quality
products. That’s why customers always choose the products of renowned brands
and designers.

4. Independent Operations.

Various operations of the fashion have completed autonomy on their work and
interconnect at the same time.

For instance, the designers and creative artists have complete independence in their
creative work. So as the marketers, manufacturers, retailers, and sellers; they all
work independently and close collaboration at the same time. When look at the
final product, then the final result is amazing.

5. In-house Production.

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Speaking of renowned brands and their quality work, the reason they manage to
maintain a high standard of quality and creativity is that they get the products
manufactured in-house under their close supervision.

CONS:

1.Changing Fashion Trends.

As many of you are aware it the beauty and fashion industry are highly
competitive, and various fashion brands are competing with one another to be the
first in setting up new trends in the market.

In fact, the fashion industry doesn’t have control over it. All they have to do is to
keep up their pace with the latest fashion trends. If they don’t, then they would lose
the market share, sales, and profitability ultimately.

2. 3rd Party Suppliers.

In order to be cost-efficient, many fashion brands outsource their production and

manufacturing work to third-party suppliers. It’s good in some cases.

But it creates a number of problems like having no control over the production
work, quality standards, delayed work, and custom and border issues.

When you add up all of these costs, then it leaves you without any cost advantage.

3. Low Quality to Keep Price Low.

If you want to gain a price advantage over competitors, then you have to use
alternative materials. However, when they alternative material, or outsource the

DSBA, Bangalore P a g e 9 | 34
production processes, then it results in the form so of low quality. In other words,
the goal to achieve low prices compromises the quality of the fashion products.

4. Entering New Markets.

Boutique business always has to enter new markets and target new customers. It’s
because fashion trends are always changing, and their target market is different age
groups. It means that always have to be ready to face the uncertain conditions and
unexpected responses of the market.

IV. PRODUCTS AND SERVICES:

In our Boutique we provide best quality clothing with unique designs which
customers can choose happily. And also, customers can get their cloth customized
with different designs. We also provide ladies fashion accessories. We also hire
creative, specialized designers and outfitters.

1. Layered or Ruffled Lehengas:

It is the most current trend. Moreover, it changed the definition of the typical
Lehenga choli. It is a combination of western Gown and Indian Lehenga.

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 2. Maxi Dresses:

A max dress is a long dress that reaches down to ankles

or sometimes the floor. It's an informal dress that still
looks sophisticated enough for events that require a little dressing up.

3. Wedding Blouse:

4. Jewelry Accessories:

Items that are worn or carried in order to compliment an individual's outfit. 

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PRICING STRATEGY FOR BOUTIQUE

1. Premium Pricing

Women who shop boutiques tend to expect medium prices and tend to believe a
even medium price means a better product. We Attract this audience with best
prices but ensure the brands we carry have a reputation for high quality,
sophistication and distinctiveness in the women's fashion market.

2. Value-Based Pricing

Women may bypass a price tag if they have a perceived value of an item or brand
in our boutique. We are using value-based pricing, if know what is a target
market wants and needs when making purchases in our boutique. Women buy
from our boutique because our cloth makes them feel comfortable, gives them a
certain status or recognition among their friends or helps them camouflage
undesirable areas of their bodies.

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3. Medium-Low Pricing

As a women's boutique owner, we can take advantage of price discounting when

devising pricing strategies. With medium-low pricing, can charge more than
competing stores and boutiques that attract target market but use promotional
efforts to offer low prices on some items.

4. Dynamic Pricing

Dynamic pricing is a strategy many online businesses use, including airlines and
concert venues, which you can also use. Technology is available to adjust pricing
on a website, which takes many factors into account. These include the current
state of the market, data gathered on customers based on where customers live
and what they paid for similar items they have purchased online.

V. MARKETING PLAN:

PROMOTIONAL STRATEGIES

1. Social Media: Creating and posting quality content. To showcase our designs,
consistency, consider using carousel and collection ads on Instagram and
Facebook. using the most relevant hashtags related to our business. people

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 love giveaway’s, it is a valuable asset that would make our clothing boutique
more memorable to the customers than our competition. Tagging a few friends
or sharing what we have posted online in exchange for a shot at winning one
of our latest dresses is nothing less than a deal of the century.

2. Word of Mouth: Word of mouth marketing is one of the most organic ways we
can spread the word about Boutique Business. word of mouth marketing focus on
targeting a narrow group of people, for example, referral marketing. Others, like
influencer marketing, can target much larger audiences, depending on the niche. It
has the advantage of using the very people that most consumers trust to deliver a
brand's message, rather than using “untrustworthy” corporate and official
advertising means.

One person can tell a message to somebody who can, in turn, pass it on to multiple
other people. These people, in turn, spread the word in a snowball fashion.

3. Influencer’s: It is a way to get the word out about our design’s by working with
someone who already has an engaged audience. It gives us direct access to new
followers, customers, and eventually, lifelong fans. Influencer’s puts our design’s
front and centre for new eyes to discover what we have to offer. Whether they
can create original content, distribute branded content or collaborate in other
ways, influencers are an important part of our marketing plan.

MARKETING RESEARCH:

WHY: So, Market Research gives us insights on the size of market we are
targeting, how competitive it is, and where there is room for implement.

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Marketing Research help us to identify new target markets and makes us to
understand how existing customers feel about our brand. Helps us to measure
customer’s experience.

SWOT ANALYSIS:

STRENGHTS:

 Speciality selection

 Price points

 Location

 Limited start up risk

 Ability to sell design’s in online

WEAKNESSES:

 E-Commerce

 Website

 High transportation costs

 Limited start-up costs

 Limited flexibility in pricing

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OPPORTUNITIES:

 Continued expansion for online sales

 Ability to develop additional rounds of capital

 Affiliate relations with related vendors

 Development of wholesale distribution relationships

THREATS:

 Neighbouring boutiques

 Increases in price inputs can cause upward pricing

 Insurance costs are continually increasing

 Power house retail companies

HOW:

Making Use of Online Survey Tools:

With the help of online survey tools, we can know about prospective customers
and target audience and plan accordingly.

Conducting Personalized Interviews:

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we are also conducting online and personalized interviews with fashion brands
and know about their success journey and story to learn more about the fashion
industry.

MARKET SIZE IN INDIA: clothing boutiques are getting increasingly popular

because of a high demand for it and also owing to the many opportunities that
come with it. The Indian clothing retail industry is the largest among all the
industries, accounting for over 10% of the country’s GDP and around 8% of the
total employment. Market size overview It is envisaged that the current fashion
retail market worth Rs 3,61,160 crore (US$ 54 billion) will grow at a promising
CAGR of 8.1 percent for next ten years to reach Rs 7,88,532 crore (US$ 118
billion) by 2028.

TARGET MARKET:

Young age to Middle age Women’s looking for trendiest in latest fashions.
College age customers looking for trendy customized clothing at affordable price.
Young professionals in search of trendy clothing at an affordable price for
themselves and children.

CUSTOMERS:

Age: Our target market is for children, teenagers and youngsters. we ensure
that marketing efforts are designed to appeal to this age group. Our customers

DSBA, Bangalore P a g e 17 | 34
 should be happy for choosing our store. These generation women are very
fond of jewellery. In our store jewellery is markable with best quality.

Gender: Females are the main customers for our store. women spend more
than 85% of their money on jewellery and dresses.

Location: Our designs will be sold where our target customers are their, so the
location would be shopping malls, textile shops, social platform,

COMPETITION:

Recently many small boutiques business come up with similar ideas and are
already existing in the market and doing pretty good, so our major competitors
would be,

Competitor’s Product
Plush boutique Long frock, wedding outfit, designs,
ethnic were.
Ethnic boutique Women accessories, ladies’ outfit

PROPOSED LOCATION:

NEW U FASHION’S will be located in Central Business District (CBD),

Bangalore. This space has 2000 sq. feet area. We feel it essential for our initial
and ongoing success that we locate ourselves in the heartbeat of the community.
We also strive to create an atmosphere of acceptance and community, as well
retail environment where individuals can identify and bond their culture.

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DISTRIBUTION CHANNELS:

- Retail

- Online platform.

- Direct (mail order)

VI. OPERATIONAL PLAN

o Effective Use of Signage:

People and passers-by need to know that the store exists and is open for business.
Outdoor signs get that message out. Signage should carry the store's logo and
give potential customers a sense of the type of store we have and the kinds of
products we offer. Local printing shops and national signage franchises are good
sources to have the signs made to our design and specifications.

o Shelves and Racks

The manner of displaying the clothes we sell depends on the theme of our store.
One of the most popular types is the gondola style, which is a floor-mounted
system that uses cantilevered shelves that extend on both sides from a vertical

DSBA, Bangalore P a g e 19 | 34
back. Free-standing, vertical racks are useful for hanging shirts, blouses and
pants. Place them where customers can walk around and peruse the selections.

o Types of Hangers

We can't have too many hangers, so we buy plenty of them. The type of hanger
that we use depends on the theme of our store and the displays. Plastic hangers
come in colours and range from lightweight to heavy and unbreakable. Same
thing for wire hangers, but they should be vinyl-coated to prevent rust.

For a step up, we may want to use either padded or wooden hangers. Padded
hangers are better for delicate clothing items. Wooden hangers with lock bars are
preferable for displaying pants.

o Types of Display Cases

Display cases show off accessories and serve as the checkout area with the cash
register. Cases come in either half-vision or full-vision. Several styles are
available to fit in with the theme of store. These cases are good places for a few
small rotating racks for accessories.

o Mirrors are Essential:

Mirrors are essential for clothing store. A good plan is to place several full-length
mirrors close to the fitting rooms. If we are selling any accessories, place several
smaller mirrors on the display counters.

o Mannequins to Show Clothing

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Clothing items show off much better when they're presented on mannequins
instead of just being placed on racks or shelves. Mannequins are not expensive,
so they won't break the budget if we place a few in the store. They're also useful
for setting up attractive window displays.

o Sales Materials and Tags

It's handy to have a pricing gun and tags so, we don't have to do this work by
hand. We will need a supply of bags printed with the theme and name of the
store. Adequate Cleaning Supplies Cleaning is a daily chore, and an adequate
supply of cleaning materials is a must. Cleaning items should include at least the
basics such as glass cleaner, sponges, mops, buckets and spray cleaners. Searches
for shelving, POS systems, racks, mannequins and display cases will turn up
plenty of suppliers.

PRODUCTION:

 Production techniques and costs – Assembly line and overhead cost method.

 Quality control – ISO Certification

 Customer service- close relation with customers.

 Inventory control- RFID and software protection.

 Product Development- Mumbai based design team

LOCATION:

DSBA, Bangalore P a g e 21 | 34
 Amount of space – 2000sq.ft

 Types of building – Retail building space

 Zoning – High traffic zone

 Power and other- consistent and regular

LEGAL ENVIRONMENT:

 Licensing and bonding requirements- for expansion through franchising

 Health, work place, environmental regulations- ISO certificates

 Insurance coverage – TATA AIG

PERSONNEL:

 Employees of our boutique is 5 to 7members. We will choose professionals,

skilled designers, employment workers.

 We have schedules and written procedures prepared

 We have drafted job description for employees.

INVENTORY:

 We will keep inventory in the form of raw materials, supplies and finished
goods.

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 Average value in stock is will be around 10 to 15 lakhs.

 Rate of turnover we expect to be around 3.5 to 4 lacs.

 Seasonal build-ups are main festivals, weddings, any occasion.

 Lead time for ordering will be 20 to 30 days.

SUPPLIERS:

We can get enough suppliers for cloth materials and equipment’s in market like
mg road, chick pet, 4th block, in Bangalore.

VII. MANAGEMENT AND ORGANIZATION

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 owner

Designer stitching

Employees

VIII. STARTUP EXPENSES AND CAPITALIZATION:

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 START UP EXPENSES

REQUIRMENTS AMOUNT

Trade License 3000 INR

Infrastructure development/ 1,50,000 INR

decorations
Staffing 1,00,000 INR

Promotion 50,000 INR

Machinery 5,00,000 INR

Cloth materials 2,00,000 INR

Delivery 20,000 INR

Equipment’s 15,000 INR

Fashion accessories 80,000 INR

Total 11,18,000 INR

IX. FINANCIAL PLAN

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12 MONTH PROFIT AND LOSS PROJECTION

Sales will be higher in months of festivals and weddings and higher profit margin
is expected with sales hopefully reaching to above 60000 in these months. When
wedding month is not there and no festivals near, customers rarely buy our outfits.
so, the sales will be low and reductions and discounts will be increase.

PROJECTED CASH FLOW

We have a cash sale and another with the credit cards, but the funds tend to flow
immediately and for suppliers we can purchase on credit terms of 20 to 30 days.

Monthly expenses will be rent, electricity, salaries, other expenses will vary with
our production levels.

We will track essentials operating data, which is not necessarily part of cash flow
but allows us to track items that have a heavy impact on cash flows, such as sales
and inventory purchases.

We buy cloth materials and we repair machines every six months so, we need
money to order around 40%.

Loan payments, equipment’s purchase, and owner’s draws usually do not show on
profit and loss statements but definitely do take cash out.

SALES FORCAST

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Year 2022-23 2023-24 2024-25
Profits 60000 100000 165000
Percentage (%) 40% 66% 80%

sales forecast
180000
160000
140000
120000
100000
80000
60000
40000
20000
0
2022-23 2023-24 2024-25

profits percentage(%)

DSBA, Bangalore P a g e 27 | 34
BREAK EVEN ANALYSIS:

Formulae:

1.Break-even point = fixed cost divided by selling price -variable cost

2.Break-even point = fixed cost divided by contribution margin per unit

Calculation of Break-Even Point

Suppose we are manufacturing of wedding dress. want to calculate break-even

quantity and value (INR) for a particular year. So that we can determine our
minimum requirement of production to run our factory at profit. Based on the
following information when we put the values in the above formulas, we will get
the value of break-even point.

Sales Price Per Piece: 5000 INR

Variable Cost Per Piece: 2000 INR

DSBA, Bangalore P a g e 28 | 34
Total Fixed Cost: 5,00,000INR

Sales (Quantity): 5,000 Piece

Total Sales: 4,00,000 INR

Contribution Margin Per Unit: 2.5

Total Contribution Margin: 59,000

Contribution Margin Ratio: 0.29

Break Even (Quantity): 15,000 Piece

Break Even (Value): 1,355,932 INR

Here, the break-even quantity is 15,000 pieces, this means we have to produce this
number of the wedding outfit to remain a situation where there is no profit and
loss. On the other hand, need to sale total of 1,355,932 INR. If we can sell more
than this then we will get profit. That is in addition to our break-even there will be
an addition to profit amount. So, this is an easy way to set the target of our
boutique.

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 X. REFINING THE PLAN

The initial capital means money used to start a business starting phase. The funds,
or capital, may come from a bank loan, a government grant, outside investors, or
the business owner's personal savings. The money is used to cover such startup
costs as purchasing building, purchasing equipment and supplies, and hiring
employees.

Initial capital is a financial investment in the development of a new company or

product. However, the initial investment that is paid into a project at the beginning.
This is typically a negative number since more capital is required to help a project
produce a profit over time.

The following are the ways to raise capital for my business;

1.Use own saving & take from family.

2. Take loan on Gold and Insurance policies.

3. Apply for Bank Loans & govt. schemes for funding like mudra loan.

4. Launch a crowdfunding campaign.

RETAIL BUSINESS:

Company image

 We are standardizing the customer experience to maximize returns for goal

comparison.

DSBA, Bangalore P a g e 30 | 34
 Clarifying our brand that Establish a clear sense of style so customers know
what they’re getting
 our marketing efforts will be consistent with our brand.

Pricing:

Mark up policies

even though there are no absolute rules for pricing boutique merchandise, small
retailers use a 50-percent markup for merchandise. This is known as the
“keystone” and essentially means doubling the total cost of an item. For example, a
jewelry with a wholesale cost of 500 INR sells for 1000 INR at retail, or a dress
that costs 2000 INR retails for 3000 INR. Note how a percent markup sounds more
palatable to the consumer than a 100 percent markup, which would be the technical
definition of the price doubling.

Costs:

We must consider more than wholesale costs when determining a profitable

markup percentage. Other factors that enter into pricing include what the
competition is charging, the expenses for overhead - such as rent and utilities - the
wages and benefits for staff, the quality and perceived value of the merchandise,
the sales volume, and whether the item is cutting edge or outdated. A lower
markup may be necessary on an item that cannot compete at the full keystone
markup or to bring more customers into the boutique who can then buy other items
at a higher markup.

Calculations:

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The markup is a percentage added to 1 and multiplied by the total (wholesale) cost
to determine the retail price. For example, if you have a bracelet that costs 200 INR
at wholesale, and you want to sell it at 27 percent markup, you add that percentage
to 1 to produce 1.27. You then multiply 200 INR by 1.27 to create a retail price of
201.27. Most retailers express their markups based on the retail price, so it sounds
less than the technical markup. This is actually known as the “gross margin” but
prevents sellers from sounding greedy to their customers. This method divides the
increase in price by the retail price.

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 XI. CONCLUSION

Fashion interacts with several economic, financial, psychological, and sociological

factors, which reinforce the importance and need for fashion companies to
understand their customers’ behaviors. Fashion participates in, find inspiration
from, and adapts to the evolution of societies as it manages the relationships
between eager fashion shoppers and competitive fashion firms.

Today’s fashion shoppers are more informed and, aware of companies’ practices
and more demanding too. Facing this challenging demand, fashion managers use
different elements in their marketing mix to stimulate these shoppers’ appetites and
convince them to purchase the items produced by their fashion brands. To attract
customers, then create and affirm them.

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