TITLE SHEET

NEW BUSINESS PLAN PROPOSAL REPORT

(In partial fulfillment of the degree of 4 years B.COM(HONS)/ HONS with research of
University of Calcutta)

Name of the business- EcoClothing

Address- Kolkata

Name- Tanisha Shaw

CU Roll number- 231145-11-0117
CU Registration number- 145-1211-0440-23
College roll number- 688
Name of the college- Goenka College of Commerce and Business
Administration
Month- February
Year- 2024
 EcoClothing

Executive Summary
Our sustainable clothing brand, EcoClothing, is dedicated to revolutionizing the fashion
industry by offering environmentally-friendly and ethically-produced apparel. With a
commitment to sustainability at every stage of the supply chain, EcoClothing aims to
redefine the way consumers view and interact with their clothing. EcoClothing prioritizes
ethical sourcing practices by partnering with suppliers who adhere to fair labour standards
and utilize eco-friendly materials. We minimize our environmental footprint by using
recycled and organic materials, reducing water and energy consumption during production,
and implementing eco-conscious packaging solutions. EcoClothing provides full visibility
into our supply chain, allowing customers to trace the journey of their garments from raw
materials to finished products. Our design philosophy blends sustainability with style,
offering fashionable clothing that doesn't compromise on quality, comfort, or aesthetics. We
advocate for a circular economy model by promoting garment longevity, offering repair
services, and encouraging customers to recycle or upcycle their clothing
 Table of Content

• Background of the new business idea

• SWOT analysis

• Description of products

• Feasibility study report

• Organizational structure

• Market description

• Competiton analysis

• Production plans

• Projected financial plan

• Contingency plans

• Conclusion
Background of the new business idea

The idea for a sustainable clothing brand stems from growing awareness and concern about
the environmental and social impacts of the fashion industry. Traditional fashion practices are
associated with significant environmental degradation, including pollution, deforestation, and
water consumption, as well as exploitation of labor in developing countries. The rise of
consumer consciousness and demand for ethically-produced and environmentally-friendly
products has created a market opportunity for sustainable fashion brands. Consumers are
increasingly seeking out alternatives to fast fashion and are willing to support brands that
align with their values of sustainability and social responsibility.Overall, the background of
the sustainable clothing idea is rooted in the need to address the environmental and social
challenges of the fashion industry while meeting the evolving demands of conscious
consumers.
SWOT Analysis
Strengths:

1. Growing Demand: Increasing consumer awareness and concern about environmental

and social issues have created a strong demand for sustainable clothing options.

2. Brand Differentiation: Sustainability initiatives and ethical practices can differentiate

the brand in a crowded market, attracting eco-conscious consumers.

3. Innovation Opportunities: Sustainable clothing offers opportunities for innovation in

materials, design, and production processes, fostering creativity and uniqueness.

Weaknesses:

1. Higher Costs: Sustainable materials and production processes may incur higher costs,
impacting profit margins and pricing competitiveness.

2. Limited Supply Chain: Sourcing sustainable materials may be challenging due to

limited availability and higher costs compared to conventional materials.

3. Consumer Education: Educating consumers about the benefits of sustainable clothing

and overcoming misconceptions may require significant marketing efforts and
resources.

Opportunities:

1. Market Growth: The sustainable fashion market is experiencing rapid growth,

presenting opportunities for expansion and market penetration.

2. Innovation in Materials: Advancements in sustainable materials and technologies

offer opportunities for product innovation and differentiation.

Threats:

1. Competition: Intense competition in the sustainable fashion market from established

brands and new entrants may impact market share and profitability.

2. Supply Chain Risks: Dependence on a limited number of suppliers and manufacturers

for sustainable materials may expose the business to supply chain disruptions and
risks.
 Description of products
Our clothing items are designed to minimize harm to the planet and prioritize the
well-being of workers involved in their production. Here's a detailed description of
our product

• Materials: EcoClothing utilizes eco-friendly materials such as organic cotton, hemp,

bamboo, linen,and recycled fabrics (e.g., recycled polyester, nylon). These materials
are cultivated or manufactured with minimal use of pesticides, chemicals, and water,
reducing their environmental footprint.

• Production Processes: Sustainable clothing brands prioritize eco-conscious

production processes. This includes implementing energy-efficient manufacturing
techniques, reducing water usage and pollution, minimizing waste generation, and
utilizing non-toxic dyes and chemicals. Some brands also employ innovative
technologies like waterless dyeing and closed-loop systems to further minimize
environmental impact.

• Fair Labour Practices: Ethical considerations are central to sustainable clothing

production. Brands ensure fair wages, safe working conditions, and respect for labor
rights throughout their supply chains. This includes partnering with suppliers and
manufacturers who adhere to international labor standards and supporting initiatives
that empower workers in the fashion industry.

• Transparency: Transparency is a key tenet of sustainable clothing brands. They

provide detailed information about their supply chain, including sourcing practices,
production processes, and social and environmental impacts. This transparency allows
consumers to make informed choices and hold brands accountable for their practices.

• Durability and Longevity: Sustainable clothing is designed to be durable and long-

lasting, with high-quality construction and materials that withstand wear and tear.
This promotes garment longevity, reducing the need for frequent replacements and
ultimately minimizing waste.

• Circular Economy: Many sustainable clothing brands embrace the principles of a

circular economy, which aims to eliminate waste and maximize resource efficiency.
They encourage practices such as garment repair, recycling, and upcycling, enabling
consumers to extend the lifespan of their clothing and diverting textiles from landfills.
Feasibility study report
Product feasibility-

• Range of Products: Assess the feasibility of offering a diverse range of sustainable

clothing items, including tops, bottoms, outerwear, and accessories.
Materials and Fabrication: Evaluate the availability and suitability of eco-friendly
materials, such as organic cotton, hemp, bamboo, and recycled fabrics.
Design and Styling: Determine the feasibility of designing fashionable and on-trend
clothing items that appeal to the target market while maintaining sustainability
principles.

Technical feasibility-

• Use of technology solutions such as blockchain for supply chain transparency and
product authentication.

• Implementing digital tools for product design, prototyping, and virtual sampling to
reduce waste and speed up the development process.

Legal feasibility-

• Risk Management and Legal Liability: Identifying potential legal risks and liabilities
associated with sustainable clothing production, including environmental liabilities,
supply chain disruptions, and product recalls.

• Industry Standards and Certifications- Industry standards and certifications relevant

to sustainable clothing, such as GOTS (Global Organic Textile Standard), Fair Trade,
and OEKO-TEX.

Resource feasibility-

• Raw materials :- Sourcing sustainable materials such as organic cotton, hemp,

bamboo, and recycled fabrics and Identifyying suppliers and manufacturers that offer
eco-friendly alternatives to conventional textiles and materials.

• Human Resources: To manage and operate a sustainable clothing business, including

product development, supply chain management, marketing, and sales and Identifying
potential talent gaps and develop strategies for recruiting and training employees with
relevant experience and knowledge in sustainability.
 Feasibility study report

Marketing feasibility-

• The marketing feasibility of sustainable clothing is quite promising as there’s a

growing consumer demand for environmentally friendly and ethically produced
products..Our effective marketing strategies include emphasizing the benefits to the
environment, promoting social responsibility, and educating consumers about the
importance of sustainable fashion. Additionally, collaborations with influencers, eco-
conscious events, and partnerships with eco-friendly organizations can further
enhance brand visibility and credibility in the market.

Financial feasibility-

• Consumers are increasingly willing to pay a premium for sustainable products, which
can help offset higher production costs. Additionally, implementing efficient supply
chain management practices and exploring innovative technologies can further
optimize costs and improve profitability
Government incentives, grants, and subsidies aimed at promoting sustainability in the
fashion industry can also contribute to the financial viability of our sustainable
clothing business.
Organisational structure

Executive Leadership Team:

 CEO (Chief Executive Officer): Responsible for overall strategic direction and
decision-making.
 CFO (Chief Financial Officer): Oversees financial operations, budgeting, and
financial planning.
 COO (Chief Operating Officer): Manages day-to-day operations and ensures efficient
production processes.
 CMO (Chief Marketing Officer): Leads marketing initiatives, brand development, and
customer engagement strategies.
 CSO (Chief Sustainability Officer): Drives sustainability efforts, ensures adherence to
ethical and environmental standards, and develops sustainable sourcing strategies.

Departments:

 Design and Product Development

 Production and Supply Chain Management
 Sales and Distribution
 Marketing and Communications
 Research and Development
 Human Resources

Cross-functional Teams:

 Sustainability Task Force

 Innovation Team
 Corporate Social Responsibility (CSR) Team
Market description

The market for sustainable clothing has experienced significant growth in recent years, driven
by increasing consumer awareness of environmental and social issues associated with the
fashion industry. Here's a description of the market for sustainable clothing:

Growing Consumer Demand: There is a rising demand for clothing that is ethically
produced, environmentally friendly, and socially responsible. Consumers are becoming more
conscious of the impact of their purchasing decisions and are actively seeking out sustainable
alternatives.

Expanding Market Reach: Sustainable clothing is no longer niche; it has gained mainstream
acceptance and is accessible across various demographics and geographic regions. Major
retailers, independent brands, and online platforms are increasingly offering sustainable
fashion options to cater to this growing market segment.

Focus on Transparency: Consumers are demanding greater transparency from fashion

brands regarding their supply chain, production processes, and sourcing of materials. Brands
that can provide clear information about their sustainability efforts and practices tend to
resonate more with consumers

Premium Pricing: Sustainable clothing often commands a higher price point compared to
conventional fashion due to the use of eco-friendly materials, ethical labor practices, and
higher production standards. However, consumers are willing to pay a premium for products
that align with their values and contribute to positive social and environmental impact.

Regulatory and Industry Standards: Governments, non-profit organizations, and industry

associations are increasingly implementing regulations and standards to promote
sustainability in the fashion industry. This includes initiatives related to labor rights,
environmental protection, and waste reduction.
Competition analysis

A competition analysis of the sustainable clothing market involves examining key

competitors, their strengths, weaknesses, market positioning, and strategies. Here's an
overview:

Established Sustainable Clothing Brands:

 Companies like Patagonia, EILEEN FISHER, and Stella McCartney have established
themselves as leaders in the sustainable clothing market. They are known for their
strong commitment to sustainability, transparent supply chains, and high-quality
products.
 Strengths: Strong brand reputation, loyal customer base, extensive experience in
sustainable practices.
 Weaknesses: Higher price points compared to mainstream fashion brands, limited
accessibility for some demographics.

Mainstream Fashion Brands Embracing Sustainability:

 Many mainstream fashion brands are incorporating sustainable practices into their
operations in response to consumer demand and regulatory pressures. Examples
include H&M's Conscious Collection and Adidas' partnership with Parley for the
Oceans.
 Strengths: Established brand presence, extensive resources for research and
development, ability to reach a wide audience.
 Weaknesses: Criticism for greenwashing or lack of genuine commitment to
sustainability, challenges in fully integrating sustainable practices throughout their
supply chains.

Online Platforms and Marketplaces:

 Online platforms such as ASOS, Zalando, and Etsy feature a wide range of
sustainable fashion brands, providing consumers with convenient access to eco-
friendly clothing options.
 Strengths: Large customer base, ability to showcase a diverse range of sustainable
brands, convenience and accessibility for shoppers.
Production/procurement plans
Sustainable Materials Sourcing:

 Identify and source eco-friendly materials such as organic cotton, hemp, bamboo,
recycled polyester, and TENCEL™.
 Prioritize materials certified by recognized sustainability standards (e.g., GOTS for
organic textiles, OEKO-TEX)

Ethical Labor Practices:

 Ensure fair labor conditions throughout the supply chain, including compliance with
labor laws, fair wages.
 Collaborate with suppliers and manufacturers committed to ethical labor practices and
social responsibility certifications

Energy Efficiency and Resource Conservation:

 Implement energy-efficient manufacturing processes, such as using renewable energy

sources and optimizing production machinery.

Supply Chain Transparency:

 Establish transparency and traceability in the supply chain to ensure accountability

and integrity of sustainable claims.
 Maintain open communication with suppliers and subcontractors to monitor and
address any social or environmental concerns.

Local Production and On-Demand Manufacturing:

 Consider local or regional production to reduce carbon emissions associated with

transportation and support local economies.
 Explore on-demand manufacturing or made-to-order production models to minimize
overproduction and excess inventory.

Certifications and Standards Compliance:

 Obtain certifications and adhere to industry standards for sustainable and ethical
production, such as Global Organic Textile Standard (GOTS), Bluesign®, and
Sustainable Apparel Coalition's Higg Index.
Projected financial plan(for three consecutive year)

• Estimation of required fund

• Probable sources of fund
• Projected application of fund
• Projected income statement
Estimation of required funds
Particulars Par Amount (in thousands)

Production and equipment facilities 759000

Inventory 100000

Technology 1000000

Certificate and compliance 10000

Marketing and branding 20000

Legal and administrative cost 5000

Labour cost 20000

Utilities and rent 30000

Shipping and logistics 6000

Maintenance and repair 10000

Contingency and growth fund 40000

Total 2000000
Probable sources of fund
Bootstrapping:

Self-funding by using personal savings, income from a day job, or proceeds from selling
assets. Bootstrapping allows entrepreneurs to maintain full control over their business and
avoid debt or equity dilution.

Family and Friends:

Seeking investment or loans from family members, friends, or acquaintances who believe in
the business concept and are willing to provide financial support.

Grants and Government Programs:

Researching and applying for grants, subsidies, or government programs aimed at supporting
sustainable businesses, environmental initiatives, or small enterprises.

Impact Investors and Social Venture Capitalists:

Impact investors and social venture capitalists are investors who prioritize both financial
returns and positive social or environmental impact.

Crowdfunding:

Launching a crowdfunding campaign on platforms like Kickstarter, Indiegogo, or GoFundMe

to raise funds from a large number of individuals who support the business.

Bank Loans and Lines of Credit:

Applying for traditional bank loans or lines of credit to finance startup costs, working capital,
or expansion plans.

Angel Investors:

Seeking investment from angel investors who provide capital in exchange for equity or
convertible debt.
Projected application of funds
Production and material:

 Investing in sustainable materials sourcing, including the purchase of organic cotton,

hemp, bamboo, recycled polyester, and other eco-friendly fabrics.
 Procuring machinery, equipment, and tools needed for manufacturing processes that
prioritize energy efficiency, waste reduction, and ethical labor practices.

Labor and Human Resources:

 Providing training and professional development opportunities to build a skilled and

motivated workforce committed to sustainability goals.
 Implementing fair labor practices and workplace policies that ensure employee well-
being and promote diversity, equity, and inclusion.

Marketing and Branding:

 Allocating funds for branding initiatives, including logo design, website development,
packaging design, and marketing materials that communicate the company's
commitment to sustainability.

Operations and Infrastructure:

 Covering expenses related to facilities, utilities, rent or lease payments, insurance, and
maintenance to support day-to-day operations.
 Implementing technology solutions for inventory management, order fulfillment,
customer service, and e-commerce platforms to streamline operations and enhance
customer experience.

Certifications and Compliance:

 Budgeting for costs associated with obtaining certifications and adhering to

sustainability standards such as Global Organic Textile Standard (GOTS).
 Conducting audits, assessments, and monitoring activities to ensure compliance with
regulatory requirements and industry best practices.

Regular monitoring and evaluation of financial performance can help ensure that funds are
being used efficiently and effectively to support the company's mission and objectives.
Projected income statement
PARTICULARS 2024-25 2025-26 2026-27
Revenues
 Sale of sustainable 60000 80000 100000
clothing
 Wholesale products 6000 7000 9000
 Other revenue 4000 5000 6000
sources
Total revenue 70000 92000 115000
Cost of goods sold
 Cost of materials 5000 6000 7000
 Labour costs 15000 20000 25000
 Manufacturing 5000 6000 8000
overhead
Total cost of goods sold (25000) (32000) 40000
Gross profit 45000 60000 75000
Operating expenses
 Marketing and 2000 3000 4000
advertising
 Salaries and wages 5000 6000 8000
 Rent and utilities 8000 10000 15000
 Research and 3000 5000 6000
development
 Other operating 4000 5000 6000
expenses
Total operating expenses (22000) (29000) (39000)
Operating income 23000 31000 36000
Interest expense (3000) (3000) (3000)
Net income before taxes 20000 28000 33000
Income tax expense (4000) (5000) (5000)

Net income after tax 16000 23000 28000

Contingency plans

Supply Chain Disruptions:

 Identifying alternative suppliers and manufacturers to reduce dependence on a single

source.
 Maintain buffer inventory of raw materials to mitigate potential disruptions in the
supply chain.

Market Downturns:

 Implementig flexible pricing strategies, promotions, and discounts to stimulate

demand during economic downturns.
 Building brand loyalty and customer relationships to maintain sales during
challenging times.

Natural Disasters and Environmental Risks:

 Developing disaster preparedness and response plans to protect employees, facilities,

and inventory in the event of natural disaster.
 Consider sustainable packaging and storage solutions that minimize environmental
impact and reduce vulnerability to climate-related risks.

Regulatory Changes and Compliance Risks:

 Maintaining accurate records and documentation to demonstrate compliance with

relevant laws and standards.

Financial Challenges:

 Develoing contingency budgets and cash flow projections to assess the potential
impact of financial risks and identify areas for cost savings or revenue generation.

Brand Reputation

 Monitoring social media channels and online reviews to address customer feedback
and maintain a positive brand image.
Conclusion

Our sustainable clothing brand, EcoClothing encompasses a holistic approach to fashion that
considers environment, social and ethical factors. By prioritising eco-friendly material,
ethical production, transparency, durability and circularity, we aim to create a more
responsible and conscientious fashion industry.