Business plan for an online store of men's and women's watches

* Calculations use average data for Russia

1.Project summary

The goal of the project is to open an island format store for retail sales of jewelry and accessories and making a profit. The outlet will occupy an area of ​​6 square meters. meters and be located in a large shopping center of the city with a population of more than 1 million people. The store will be aimed at middle-income aged visitors.

The volume of starting investments is 560 thousand rubles. The source of funds is personal cash savings. The planned payback period for the store is 14 months. Start of sales - September 2016.

2. Description of the industry and company

Costume jewelry is jewelry that is made from inexpensive non-precious metals and stones. Outwardly, jewelry resembles jewelry, but its cost is much lower. Bijouterie is an integral part of fashion retail, the volume of which is estimated at about 57 billion dollars. The jewelry market is about 2.5 billion dollars, that is, about 4% of the entire fashion retail market.

Currently, the domestic market is dominated by imported jewelry of the mid-price segment, a smaller part falls on Russian-made products. According to the calculations of DISCOVERY Research Group, the Russian production of jewelry in 2013 amounted to more than 700 million rubles, which turned out to be 30% more than in the same period. Basically, costume jewelry is produced in the North-Western and Central federal districts. The largest manufacturer of bijouterie is Zhenavi CJSC.

The purpose of this project is to open an island format store for retail sales of jewelry and accessories and make a profit. The outlet will occupy an area of ​​6 square meters. meters and be located in a large shopping center of the city with a population of more than 1 million people. The store will be aimed at visitors with an average level of income. The assortment of the store will be based on multi-brand women's jewelry made of non-precious materials of 8 product groups (bracelets, brooches, beads, clips, necklaces, rings, pendants, earrings). The short-term goal of the project is to reach the payback point and ensure stable operation. In the long term lies the opening of a chain of jewelry stores. The mission of the store is to provide modern girls and women with high-quality original inexpensive jewelry that can emphasize the individuality of the image and character of the hostess.

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Sole proprietorship will become the form of business organization. The taxation system is UTII. The group of OKVED codes for this direction is 52.4 Other retail trade in specialized stores. The store is managed by an individual entrepreneur, who is also involved in the trading process. The staff of the company at the initial stage will include 1 sales assistant.

3.Description of goods

The main sold products of the jewelry store (more than 60%) of the headings will be women's jewelry made of non-precious materials. These are bracelets, brooches, beads, clip-on earrings, necklaces, rings, pendants and earrings. Less than 40% of the assortment will be for all kinds of accessories and related products: hair ornaments, watches, leather goods. The price segment of the project is medium. The markup level is traditionally set from the cost of production and sales costs (rent, wages to sellers, etc.). The markup level is 200%. The range of prices for products sold is given in Table. one.

Table 1. Price range for goods

The main competitive advantage of the store will be the uniqueness of the assortment. Buyers will be provided with products of several brands-manufacturers from Europe and Asia. The organization of deliveries will not be limited to one or two companies. To form the initial assortment, the experience of competitors' jewelry stores will be analyzed and used, and positions that are in greatest demand will be highlighted. This stage is the key to the success/failure of the store. In addition to the ratio of categories, it is important to correctly maintain the proportions for the best-selling materials, themes, and the color scheme of products. On fig. 1-3 shows the ratios for these parameters, calculated on the basis of the offer of successful online jewelry stores in a similar price category.

Figure 1. Materials in the jewelry. Percentage in assortment

Figure 2. Themes of jewelry that are in the greatest demand

Rice. 3. Popular colors favored by jewelry buyers

Retail trade in jewelry and accessories will not require any licenses. Products are also not subject to mandatory certification, and transportation does not require the creation of special conditions.

4.Sales and marketing

Until recently, the jewelry market in Russia showed stable growth, adding 30-40% annually. A positive trend was predicted by analysts for 2014-2016 as well, but the economic situation in the country made its own adjustments. Due to the devaluation of the ruble and the decrease in the purchasing power of Russians, the demand for jewelry has fallen. After a surge in sales that occurred in December 2014, when the population rushed to spend the rapidly depreciating rubles, a recession followed. The most tangible crisis was felt by jewelry sellers in the fall of 2015, when instead of the expected seasonal growth, a drop in sales or “marking time” was recorded. Retail is facing rising costs. Due to the fact that most of the costume jewelry is imported, purchase prices have increased. Under such conditions, entrepreneurs had to look for ways to reduce costs, optimize the assortment and keep prices. Despite the unfavorable market conditions, the costume jewelry market is doing relatively well compared to many other industries. Thanks to the revision of the level of markups for products and an increase in purchase volumes, many entrepreneurs were able to adjust to the new realities. According to industry experts, major positive developments can be expected as early as 2017.

The main buyers of the jewelry store are women aged 18 to 45 years. Unlike buyers of the late 90s and early 2000s, today's customers have higher demands on costume jewelry. Buyer requests differ according to age. While it is important for girls to look stylish, be in fashion and buy well-known brands of jewelry and bright colors, older clients have a more conservative taste, prefer a classic style, choose materials that do not cause allergies, etc. According to survey results, the vast majority of women buy jewelry once every few months or less, and no more than 10-15% prefer to buy jewelry once a month.

Since purchases of jewelry are often made impulsively, and not purposefully, the chosen format of work in the form of an island-type department seems to be the most successful. The point of sale will be viewed from all sides, while the store will not need to go to see the item you like. Due to the fact that the store will be located in a large shopping center with a large flow of visitors, there is no need for large spending on advertising. At the preparation stage, an advertising design of the outlet with a colorful sign and a name that will attract customers will be developed, branded price tags will be developed. In the course of activities, if necessary, methods of distributing printed advertising will be applied. To increase revenue, the store management will use techniques to expand the thematic range during the holidays, provide seasonal discounts. The traditional decline in demand for jewelry occurs from May to the end of August. With the beginning of autumn, there is an increase in demand. Surges in sales occur in December on the eve of the New Year holidays, as well as in February-March (Valentine's Day, March 8).

5.Production plan

The jewelry store will be located in a large shopping and entertainment center in a residential area with a population of over 280,000 people. The selected mall is the largest in the region and covers an area of ​​more than 45 thousand square meters. meters, 35 thousand of which are suitable for rent. The potential audience is expanding due to the surrounding areas. Most of the city's population (about 800-820 thousand people) lives within half an hour's drive. The peculiarity of the selected mall is that it is not a weekend center: the flow of customers is high even on weekdays due to the proximity of sleeping quarters. The mall has 4 floors, parking for 600 cars, a cinema, several anchor tenants (a grocery supermarket, a furniture store, an electronics store). The mall has an advantageous location, located at the crossroads of transport routes and on the way to the central and eastern parts of the city. The flow of mall customers varies from 12-17 thousand people on weekdays and from 17-19 thousand on Friday, weekends and holidays. About 66% of shopping center visitors are women, while 77% are between the ages of 20 and 45, which is the target audience of a jewelry store.

The outlet will be located on the second floor of the mall on an area of ​​6 sq. meters. When choosing a location, the entrepreneur proceeds from the following factors: the proximity of anchor tenants, the proximity of stores of a similar assortment (clothing stores, jewelry stores, etc.), the cost of rent, the level of traffic (for the second floor it is 80% of the total). The cost of rent will be 12 thousand rubles. per sq. meter, which is a good indicator, because. in other shopping centers under consideration, the price level reaches 16-20 thousand rubles. per sq. m.

For the jewelry trade, a ready-made island module with an area of ​​6 sq. meters of glass 5 mm and laminated chipboard with a shockproof edge. The module will also include lighting, shockproof glass film and decorative elements. The cost of the module will be 115 thousand rubles. In addition, you will need to purchase stands for jewelry, a cash register, a cashless payment terminal, which will require another 45 thousand rubles. In total, 160 thousand rubles will be needed to equip the point. About 30-40 thousand more will be spent on the visual design of the point.

The opening hours of the jewelry store will coincide with the opening hours of the mall. The point will be open daily from 10:00 to 22:00. For the daily work of the store at the initial stage, you will need to hire at least one sales assistant (later the staff can be expanded). The entrepreneur himself will also participate in sales. When hiring sales personnel, the key role will be played not by the level of education and experience, but by the personal qualities of a person: an active life position, competent speech, sociability, a desire to work with people, responsibility and accuracy. A sense of style, a good knowledge of products and brands will not be superfluous. The staffing of the seller is presented in Table. 2.

Table 2. Staffing and payroll

The main constant expenditure items in the store will be rent and payment of wages. The variable part will include spending on the purchase of jewelry. In addition, you should take into account the cost of electricity, the cost of printed advertising products and consumables (price tags, booklets, packaging, etc.).

In the process of activity, three development scenarios are possible: pessimistic, realistic and close to reality. In the worst case, the level of sales will be 3.5 thousand rubles. on weekdays (Monday-Thursday) and about 6 thousand rubles. Friday, weekends and holidays. With such indicators, the store will balance on the verge of profitability. Under the most optimistic scenario, revenue on weekdays will reach 7 thousand rubles, on other days - up to 12 thousand rubles. In this case, net profit can reach up to 100 thousand rubles. at a turnover of 280 thousand rubles. The development of events seems to be the most probable, in which on weekdays the income will be 4-6 thousand rubles, and on Friday, weekends and holidays - 7-10 thousand rubles. With this level of sales, the net profit of the outlet will be about 40-45 thousand rubles with a turnover of 200 thousand rubles. per month. It would be strategically correct to open a retail outlet in early autumn - during the period of rising sales, when you can form a clientele for the New Year holidays. Calculations for all key financial indicators based on this scenario are given in Appendix 1.

6. Organizational plan

The jewelry store will be managed by an individual entrepreneur. His duties will include all organizational and legal issues, strategic planning, purchase of jewelry. Sales consultants will be subordinate to the entrepreneur. The sales assistant is engaged in advising buyers and selling jewelry, participates in the acceptance of goods, inventory, promotions. As a motivation for the sales staff, a system of incentives is used (a bonus based on the results of work, bonuses), as well as discounts on products sold.

7. Financial plan

Starting investments in opening a point will amount to 560 thousand rubles. The source of funds will be personal savings. In Table. 3 presents the main investment costs. Indicators of planned revenue, net profit, costs are given in Appendix 1. The seasonality factor was taken into account in the calculations (sales growth on holidays, decrease from May to early autumn).

Table 3. Investment costs

8. Evaluation of the effectiveness of the project

The project to open a jewelry store is commercially viable, as evidenced by key performance indicators calculated over a three-year period (see Table 4).

Table 4. Project performance indicators

9.Risks and warranties

The project to open a jewelry store is distinguished by a low level of risks. The business requires a small initial investment. The location of a retail outlet in a large shopping and entertainment center provides a guaranteed daily flow of customers, however, there is a risk of becoming unprofitable due to high rental rates. In addition, one should take into account the fact that jewelry does not belong to essential goods, which means that certain risks arise when the purchasing power of the population decreases. The main risks of a jewelry store are in Table. 5.

Table 5. Assessment of project risks and measures to prevent their occurrence or their consequences

10.Applications

ATTACHMENT 1

Production plan and main financial indicators of the project in a three-year perspective

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