Product
One Night One Attire (ONOA) is an online concept store. Our products are selected with care and follow a specific theme: “sustainable fashion". This regards the concept of renting clothes for a night.
We follow five important approaches:
Our customers will fulfill their dream closet, with unlimited choice. Every occasion needs a specific outfit. By going through our selection, customers will feel as if they own more than they actually do.
No bothersome constraints. Customers may rent their outfit for 4 or 8 days. We also offer dry cleaning.
Complete styling services. With time, we hope to be able to hire freelancer stylists, makeup and hair artists. That way, our customers will be able to get advice in order to look the best.
Hesitation is key. Stressing about finding the perfect outfit is irritating, especially for women. We believe that offering a second try-on session for free will help clients to make a better decision.
Green fashion. Renting to wear once is more sustainable than buying.
2. Customers
We’re targeting market online shopping users. Also, we aim to reach out to students and the business class as they have a higher chance to attend high table dinners, graduation dinners, cocktail balls, wedding parties, and different business events; meaning they would need different types of clothing to meet the specific dress-codes.
II. COMPANY DESCRIPTION
Mission statement
Our mission is to make our customers feel confident and powerful in their clothes at all times; whoever they are, wherever they go.
2. Members
Anastasia Grouvel, CEO: in charge of executive leadership and articular strategic vision.
Carman Cheung, General Manager: in charge of overseeing daily operations, providing direct management of key functional managers.
Karman Leung, I.T Manager: in charge of managing basic I.T infrastructure systems and providing internet.
Heiman Ng, Marketing Manager: in charge of developing the marketing strategy, planning and implementing promotional campaigns.
Ryan So: in charge of providing financial reports and interpreting financial information.
3. Legal Structure
ONOA is a sole partnership; based in Tsuen Wan, Hong Kong.
III. MARKET RESEARCH
Market analysis
In 2017, the value of online clothing rental market reached $1,013 million; it is estimated to be at $1,856 million in 2023. The value has nearly doubled. The compound annual growth rate of the industry is 10.6% and figures indicate that the potential of the market leads to substantial growth.
In the clothing rental sector, North America has the greatest market share (40%), followed by Europe. Although the Asia-Pacific regions do not occupy a large market share, they have the highest growth rate, at around 11.4% per year. In addition, the clothing rental industry in Hong Kong is in the growth stage of Product Life Cycle since there are a limited but increasing number of competitors. Therefore, our company has great prospects in Hong Kong.
There are four main reasons for the clothing rental industry to succeed. First, people need different clothes for different events and are stressed by the increase in social acceptance via clothing. Additionally, E-business is wide spreading. Finally, people lack financial resources to purchase a huge variety of clothing.
2. Competitor Analysis
a. YEECHOO
This firm provides different purchase plans like single rental, packages and monthly plans. Besides, the clothes are usually sorted by size, colour, and brands. YEECHOO also sets more categories such as length and type of sleeves, which facilitates the customers’ selection process on clothing.
b. WARDROBISTA
This company categorizes their clothes by occasions, besides general sorting criteria. Moreover, a large variety of clothes are provided in order to largely fulfill customers’ needs.
c. Prêt-à-Dress
This company sorts their clothes through material and patterns, such as lace, floral, metallic, and sequins. Also, some particular requirements on clothing, such as bra friendly, are offered.
However, after analyzing the competitors above, we noticed they all lack menswear. Therefore, our firm will seize this opportunity to reach a larger market.
3. SWOT Analysis
Strength: our company provides comprehensive data for size matching, and offers flexible delivery and rental period to customers.
Weakness: our firm lacks of variety in clothing as we are just starting.
Opportunities: the trend of online shopping, lack of dress for men, and desire to wear trendy clothes push our firm towards success.
Threats: the rising of competitors may affect our business.
4. Promotion
We plan to provide sponsorship via KOL (Key Opinion Leader). They can have a trial run on our service and wear our clothes to public events. After that, they would share their experience on social media platforms such as Facebook and Instagram. Comments and feedbacks may also be shared for customers’ reference. Moreover, we would like to collaborate with popular Youtubers from Hong Kong. They will post a video to record their experience of trying our service, and provide more details to viewers.
IV. FUTURE PLANS AND IMPLEMENTATION OF WORK
In our short term future plan, we want focus on the online business and marketing. We will use different marketing strategies to appeal new customers. We also aim to increase awareness.
In our long term future plan, we believe that our company can achieve more. Therefore, we will have more resources to provide additional stylish services, such as make-up and hair setting service. We will also provide eye-catching seasonal clothes. These comprehensive and fruitful services can satisfy customers’ personal desires. We also hope to increase customer loyalty.
V. Production and Operations
Instead of using one supplier, we plan on cooperating with several ones, which will avoid us being dependant. It unables the risk of uncertainty especially if the company suddenly shuts down.
First of all, customers can search and select the dress or suits of their liking. Customers can use the search filters which are based on the size, type, and color in order to find relative clothes. This will make customers find their preferred clothes more efficiently. We provide 60 units of dresses and 40 of suits for female and male respectively. The number of choices is still short due to budget limitations, but we will still provide high quality clothes in order to satisfy our customers.
Customers can opt to try on clothes at our office or and may try on two outfits at most. If customers do not rent the clothes after trying them on, we will charge $150 as a fitting and administration fee.
Before paying the renting fee, customers must create an account first, and enter information including their name, email address, and height. This will help us to provide size recommendations. It will make it easier for us to analyze customers’ characteristics. We will also provide comprehensive and detailed size charts on the website as a reference.
Customers just click on their favorite dress into the shopping cart and then make a payment. The rental fee of 4 days is 8% of the clothes selling price; 8 days is 10% of the clothes selling price. Customers can pay the rental fee by credit card, cash and PayMe. After that, customers choose the delivery way and the specific date of shipping. They may also take it by themself. We guarantee our customers can receive the clothes within 1-3 business days. All of the renting procedures are easy and convenient.
When the clothes get returned to us, and after checking their condition, we will send them to dry cleaning and re-rent them out to other customers.
VI. Management
VII. FINANCE DETAILS
Budget Allocation
In this budget plan, we assume that our business will initially focus on an online platform. Therefore, our first costs should be relatively low and we can retain our cash for further investment after we build our brand up . However, as we need a unique and attractive online platform, the cost of hiring a better web-design page will be high (Appendix).
2. Risk and return
Risk
As the trend of dress renting industry is rising, we assume that there will be more competitors joining the industry. Therefore, the major risk is not building an image attractive enough.
b. Return
The return model is on a pessimistic basis. We assume to have 1 transaction per 2 days in the first year and a 30% net loss. After we build up the reputation and provide extra services in the second year, we can double our transaction per day at least. The expected sales revenues in the future 3 years are around $120000, $290000 and $310000 respectively (see appendix 2). We can record a positive profit margin during the year 2-3 (appendix 3). The profit tax-rate is 15%.
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