SCHOOL OF BUSINESS AND

MANAGEMENT

CIA III

SUB: ENTREPRENUERAL
DEVELOPMENT

ASSIGNMENT ON: BUSINESS MODEL

CANVAS

TOPIC: DROP-SHIPPING BUSINESS MODEL

REFURBISHED AND UPCYCLED FASHION

Submitted by:

Abhishree Chettiar 2224343

Submitted to: Dr. Shrinivas

(Department of Business and Management)
Date of submission: 1st April , 2024
 INTRODUCTION OF FASHION INDUSTRY AND THE COMPANY

In recent decades, the amount of clothes the fashion industry produces has
grown and grown, while at the same time, profit margins have shrunk and
the impact on the environment has increased. Between 2000 and 2015, clothing
production doubled, while over the same period utilization – the number of times an
item of clothing is worn before it is thrown away – decreased by 36%.

There’s been a stereotype that people can’t reware the clothes again, getting strucked
upon this idea. Innovated the business model which would help the environment too and
also helps the customer to be a part of sustainable activities. This business model comes
under SGD 12: Responsible consumption and production and SDG13:
Climate action, since fashion industry is known as a major contributor to greenhouse
gas emissions and by promoting clothing reuse and upcycling helps to reduce overall
environmental impact associated with producing new clothing.

Company name: MYSTIQUE

Mission: To encourage people to be sustainable by bringing unique, high-quality

upcycled clothing

Vision: To revolutionize fashion as a force for bold and positive change, promoting
sustainable practices and upcycled clothing

Values: focus on being sustainable and environmentally friendly and cultivate self-
expression through upcycled unique clothing

PRODUCT AND IT’S SERVICE DESCRIPTION

Product – Refurbished and upcycled clothing procured form secondhand high-quality
garment supplier

Service –
• In-house repair or tailoring services for clothes.
• Workshops on recycling and tailoring clothes into beautiful and unique customer
preferred style.
• Subscription box service for vintage collection that has been curated from sleected
upcycled pieces.

Marketing plan –
• Target audience –
1.Eco-conscious consumers
2.DIY enthusiasts
3.Budget – conscious shoppers

• Marketing channel –
1. E-commerce website with product description, mission & vision and values of
the company
2. PR Collaboration with vintage clothing stores
3. Content video on how to upcycle clothes and sustainable fashion trends.
 Financial Plan-

• Revenue streams

1. Income from repair or tailoring services of the garments

2. Subscription box of vintage collection fees
3. Drop-shipped refurbished and upcycled clothing
4. Customers giving clothes for upcycling clothes

• Cost structure
1. Procurement of product

Clothes can be purchased from MYSTIQUE to upcycle their clothes and can
avail 5%offer, mainly the clothes for the company is being supplied from a
secondhand good quality shop and will be negotiated bwith bulk discounts

2. Refurbishment cost

Tshirts will be priced 750 and above as tailoring machine, labour cost, other
matrials like zippers, threads, buttons and cleaning solutions.

3. Drop-shipping fees

It will be based on order volume and weight of the drop-ship item

Avg 5kg weight package is around 230 INR shipping from Nagasandra, Bangalore
to Raipur, Chhattisgarh. It may be differed according to geographical distances.

4.Packaging

Eco-friendly recycled cardboard boxes, biodegradable packing or reusable cloth

pouches and one box can amount upto 350 INR but here by using recycled
corrugated box for 28 INR cost can be minimized.

5.Marketing expenses

• Content creation: DSLR, video editing, writing social media posts.

• Social media advertising: Ads for target audience with the help of SEO
optimization.
• Public relations: Costs associated with hosting workshops or any press news,
article releases.
• Website maintenance: Monthly fees for website, domain name registration and
security certificates
• Platform fee: Such as Shopify, Wix, Alibaba ecommerce platforms transaction and
store management features
• Employee Salary: Customer service, online marketing, tailoring services.
 OTHER FUNCTIONAL AREA PLANS
1. Operations:
Partnering with recognized organizations who have been working in this industry and
are collecting high quality used clothing

Company is going to work on defect categorization as while upcycling the garments it

will help to see the differences in the material like MINOR FLAW (small tears, loose
buttons, basic repairs), MODERATE FLAW (rips, stains, missing buttons or extensive
repair to be done), MAJOR FLAW (large holes, extensive fabric wear, irreparable
flaws which makes it unsuitable for upcycling)

This method will help to identify garments which can be upcycled with minimal
efforts.

Another method will be about the fabric type where the garment’s fabric is considered
whether it is suitable for cutting and patching into new designs and while stained silk
material can be repurposed into linings or accessories.

Last method, Trend analysis which is about being updated on current fashion trends
and currently it’s Gen Z going on and have to matching it accordingly.

2. Human Resources
Staffing is important as packages has to be delivered to upcycle garments and
upcycled and refurbished clothes has to delivered to respective customers in the city

For the first year it’s going to be in Bangalore after some years business will expand so
for that we will focus on E-commerce platforms, Marketing and social media for
brand awareness and online presence by hiring a specialist and also in-house skilled
tailors or other upcyclers to partner with the company.

3. Technology
Using e-commerce platform like Fiverr, Wix, Shopify for product listings, secure
payment process and order managements

Also, a customer relationship management system to manage customer interactions,

track purchase history and personalize marketing efforts.

Social media content creation(Reels, TikTok, and Youtube Shorts) and tracking the
customer engagement is crucial for the company so as to know the interests of
customers engaging and in order to know how to attract.
 PROJECTED BUDGET PLAN

VARIABLE COSTS
Average costs for used clothing:
• Basic items (t-shirts, shirts): ₹50-₹150
• Jeans, dresses: ₹100-₹300
• Jackets, sweaters: ₹200-₹500

This might differ vendor to vendor

FIXED COSTS
Website maintenance and other e-commerce platform can amount up to 10,000 to
50,000 per year

REVENUE
If product sold in a year is 10,000 then my revenue in a year would be 2,15,50,000
As the products will be sold from 950 and is up to 2500 like the basic t-shirt, mystique
styled jeans, t-shirt and outerwear, DIY styled to vintage collection

My average pr

CALCULATIONS-

1st year:

Total variable cost (including product [250/- on average], refurbishment [90/-], drop-
shipping fees [100/-], packaging and marketing expenses [500]) – 940/-
Total fixed costs (website maintenance, platform fees)- 800/-
Total costs- 1740/- *10000 units sold
Annual Projected Revenue- 2,15,50,000
Annual Profit/(Loss) – Total revenue – Total cost= 41,50,000

3rd year:

Total variable cost (including product [150/- on average], refurbishment [75/-], drop-
shipping fees [100/-], packaging and marketing expenses [600]) – 925
Total fixed costs (website maintenance, platform fees)- 800/-
Total costs- 1725/- *12,000 units sold
Projected Revenue- 4,05,00,000
Profit/(Loss)- Total revenue – Total cost=1,98,00,000

5th year:

Total variable cost (including product [350/- on average], refurbishment [100/-], drop-
shipping fees [300/-], packaging and marketing expenses [600/-])
Total fixed costs (website maintenance, platform fees)-850
Total costs- 2200/- *18000 units sold
Projected Revenue- `4,75,00,000
Profit/(Loss)- Total revenue – Total cost=79,00,000
Assumptions-
• Prices may vary according to the economic trend
• Demand may change so according to that cloth style may change too
• For continuous 2-3 years research analyst will try to predict the consumer’s
tastes, needs and wants and report the areas that are untapped to work and
which might seem profitable for the company.

GROWTH RATE
2,50,00,000

2,00,00,000

1,50,00,000

1,00,00,000

50,00,000

0
2023 2026 2028

VIDEO PRESENTATION
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