Blossoms Boutique is a start-up retail venture that sells varieties of fashionable clothing to all genders of the millennial.com generation. It is located in downtown Ontario, Canada, the center for primary textile design and productions that meet modern demands in technology and the market. While the business venture initially aims to set up one boutique, expansion plans shall be to potentially franchise the retail store and build a publicly well-recognized brand name. As the business progress, it will strive to penetrate a significant online segmentation of the retail market.
Business Product and Services
The identification of a market niche is a significant step in every business venture. It helps to highlight unidentified business opportunities by most employees. In this case, the fashion and retail industries have tended to focus on young adolescents and youths overly. Through close follow-up of the generational preferences in fashion trends and feedback from customers’ expectations, Blossoms Boutique will tailor its inventory to satisfy clients’ expectations and needs. The business shall solely concentrate on fits, styles, and colors to flatter the millennial.com generation. Meeting the requirements in designs and fits of the millennial generation will be the sole specialty of the business venture.
Reported total sales in the Canadian state’s clothing retail industry over the past decade, when automotive and food services are included, exceeded the country’s GDP. There are greater demands for modern fashions in today’s world market, with almost half of young adults and youths. In Ontario states, the current population is significant but majorly comprised of youths. Approximately half of the people are fashion-focused adolescents and young adults. The estimated median income for fashions and clothing line stands at $50,000. The business will initially seek local customers; however, it will expand its reach to secure the brand name and build a public image.
Strategy and Implementation
Marketing is an essential tool that helps to enhance business competitive advantage and profitability. It carries the weights and powers of reaching and influencing customers to reach a business’s products and services. Customer loyalty and purchasing culture are also promoted through marketing power. Hence, Blossoms Boutique appreciates the essence of marketing in its business venture and profitability goals. The business aims to boost its clothing retail business by targeted marketing and ambitious campaigns to its target customers. The marketing campaign will include local media coverage, a grand opening event, direct mail campaign, and print advertising. The objective of the business is to maintain the marketing budget to less than 5% of the realized annual gross sales. The business will also partner with local entities such as the Downtown Merchants Association and Chamber of Commerce in business operability.
Blossoms Boutique will sell a broader combination of recognized brand names and clothing lines from varied select designers in fashions. The business’s leading staple apparel will be jeans, casual wear, and business clothing. Also, the venture will offer accessories like belts, hats, and scarves. The profitability of the business will rely on merchandise and franchise in its stores as its operations expand to external markets. The pricing strategy will be flexible from implementing retail pricing of different brands and the exercise of the keystone pricing approach. The pricing structure will encompass value-based functionality to measure the value and quality of products to target customers. Blossoms Boutique shall avail overstock and holiday sales, end-of-season sales, promotional coupons, and multi-buy savings in a patterned strategic interval.
Blossoms Boutique recognizes the need for inventory storage in business performance. Inventory storage is a significant threshold that enables the business to meet variations in the supply and demand of products to the target market (Jalagat & Aquino, 2021). It will also help cater to seasonal and cyclical demand based on various aspects such as seasonal festivals’ previous data sales. Besides, inventory storage will be an essential tool for Blossoms Boutique to understand and predict economies of scale in procurement. As a result, the business will have a reduction in transit times and transit costs. Since the business venture will focus on fashions and clothing lines, inventory storage will be helpful to realize high demand and long-lead in-demand items. Generally, inventory stores help companies to be independent and less dependent on others.
Purchasing and Accounting Systems
The business will need to establish a production line system. The product line system ensures that related products get marketed under one brand name sold by the same company. Product line sales will also ensure that different fashions are distinguished from each other for customer usability. Accounting and purchasing systems will be based on contract purchasing, market purchase, and schedule purchase. Additional purchase and accounting systems will guarantee profitability advantages such as price fluctuation in demand and stock supply. Contract purchasing will help the company evade the effects of loss from purchases made on materials with a higher fluctuation rate. The market purchase will help the business to realize and take advantage of price fluctuation in the market. On the other hand, the schedule purchasing approach is cyclic. Blossoms Boutique will thus use a schedule purchase system to purchase fashions whose pricing values have low subjectivity to fluctuation in the market.
Quality Control Procedure
Quality control measures entail testing units and ensuring customer expectations and satisfaction with the products and services offered. Blossoms Boutique is determined to ensure that fashions sold to customers are authentic and meet the market evaluation. The business will use product quality control measures to ensure that all fashions and designs are not fake. This control measure will be enhanced by creating benchmarks with our partners, training personnel, and statistical checking of variations.
Goals of Supply Chain Management
The business’s supply chain management goals will include cost control, risk management, efficient resource allocation, and a compelling collection of information significant for the business decision-making process (Dwivedi et al., 2021). Cost control will help determine a considerable business budget below 5% of the gross sales in the business. Risk management goals shall be focused on contingence occurrence in the business stores and supplies. Management of risk is a significant factor that helps to set funds necessary for emergencies and investment in stocks. Resource allocation will focus on adequate management stores with the necessity of available servicing capital that cater to the employed workforce. Thus, decisions can be easily made concerning current market trends to invest in stocks in different stores.
Effects of Goals on Business Operation
The set goals in the business’s supply chain will be efficient to realize effective fulfillment of demand. Cost control will help in meeting demand since unnecessary losses can be avoided in stocks. These goals will also help the business entity’s operations to have a sound driver in outstanding customer value. Also, organizational responsiveness shall be improved while evaluating risk management and features. Blossoms Boutique will also be able to build customer and network resiliency through collected data from market trends. Organizations find breakthroughs that facilitate financial successes from objectives and goals set in their supply chain management. For this reason, the business operation will have a streamlined, smooth flow of processes to target customers.
Implementation of Global Supply Chain Management
The business will need to employ a global supply chain management to achieve varied benefits. It will be significant for the business to organize business operation services such as transport strategies. Thus, a global management strategy will be adequate to enjoy margins of minimized cost and waste. Implementation of global supply chain management will guarantee the business venture to expand its operability in the international markets (Challa, Padmalatha, & Krishna, 2021). Besides, the business can exercise its business in larger volumes and fashions that meet the market demands and supplies.
LA Showroom vendor will be the best supplier to utilize in obtaining stocks for the business stores. It serves the purpose of a marketplace and directory wholesale for clothing supplies.
Continuous Improvement Process
A continuous improvement procedure is essential in determining progressive improvement in the performance of the business. Thus, the business will utilize the procedural continuous improvement process to ensure efficiency in business processes (Iyer, 2018). Blossoms Boutique business will suit the process since its competitive operation is based on monitoring crucial data from current sales data and customer feedback.
Practice and Environmental Concerns
Sustainability in business promotes competitive advantage. Sustainability contributes to adding brand value, meeting customer demand, and increasing efficiency (Amankwah-Amoah, 2020). Thus, the business is focused on controlling waste streams and using products that will not promote environmental harm. In this case, waste accumulated from fashions can be reused to make other marketable products. The business venture objectively aims to enhance ecological sustainability by installing environmentally friendly solar energy.
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Dwivedi, A., Agrawal, D., Jha, A., Gastaldi, M., Paul, S. K., & D’Adamo, I. (2021). Addressing the challenges to sustainable initiatives in value chain flexibility: Implications for sustainable development goals. Global Journal of Flexible Systems Management, 1-19.
Iyer, V. G. (2018, February). Total quality management (TQM) or continuous improvement system (CIS) in the education sector and its implementation framework towards sustainable national development. In The Proceedings of the ASSEHR 2018 International Conference on Education Reforms and Management Science (ERMS2018) CD-ROM held at Wuhan, (pp. 22-23).
Jalagat, R. C., & Aquino, P. G. (2021). We are achieving sustainable competitive advantage through inventory management practices: The case of the homegrown coffee business. In Sustainable Production and Consumption Systems (pp. 143-156). Springer, Singapore.