EXECUTIVE
SUMMARY Footwear Retail Outlet is proposed to be set up in urban areas. The
outlet would cater to the demand for ladies and children footwear, belonging to
middle and upper middle income groups.
The demand for footwear is constantly rising and there are a number of
local manufacturers producing good quality footwear. The consumers are becoming
increasingly quality conscious and seek products offering value for money. This
trend has led to strong growth in retail footwear outlets all across
Pakistan. The focus of the business
would be to provide casual, semi-formal and formal, quality footwear at
affordable prices. Shoes are assumed to be purchased from different
subcontracted manufacturers and sold at the retail outlet. The total project
cost for setting up a footwear retail outlet is estimated at Rs. 2.18 million.
BRIEF DESCRIPTION OF PROJECT & PRODUCT
This
document provides information for setting up a Footwear Retail Outlet for
ladies and children. It involves purchase of ladies and children shoes from any
local manufacturer and selling it through a retail outlet established in a
rented premise under a brand name, in any of the urban cities of Pakistan. The
retail outlet will have a covered area of 900 sq. ft. Shoes of the required
quality and quantity will be sourced from wholesale markets and small shoe
manufacturers. The product mix would include ladies and children shoes in all
sizes. This product mix is divided into further categories; casual, semi-formal
and formal footwear which includes pumps, heels, coat shoes, sandals, slippers,
etc. made of leather and other materials. The three categories among ladies and
children shoes are further classified by proposed selling prices, ranging
between Rs. 750 – Rs. 1,125 for ladies shoes and Rs. 375 – Rs. 675 for children
shoes.
CRITICAL
FACTORS
Following
factors are critical for the success of footwear retail business:
Develop strong linkages with suppliers for sourcing good quality products at
competitive prices.
Efficient management of stock to keep inventory cost at the minimum.
Selection of a central location keeping in mind the target market.
Knowledge about the latest market trends.
Induction of trained sales personnel for efficient customer handling.
Strong competition with similar shops in the same commercial area.
INSTALLED
& OPERATIONAL CAPACITIES
Since
the proposed venture is a trading business, there are no installed capacities
per se. The turnover will depend on seasonal sales and ability of the venture
to attract customers through quality and price incentives. Experienced and
efficient sales staff also plays a critical role in determining the sales
revenue of the business. The business is expected to have a capacity to sell
15,000 shoes in one year. The proposed project assumes to have a stock of
12,000 pairs at 80% capacity, out of which 500 pairs would be kept in inventory
while remaining 11,500 pairs will be sold during first year of operation. The
outlet will operate for 12 hours daily.
GEOGRAPHICAL
POTENTIAL FOR INVESTMENT
There
is significant domestic demand for footwear in all the urban and semi- urban
areas, year round. Thus, the outlet can be opened in any urban Location in the
country, where customers have an easy access to the outlet, like shopping
malls, busy markets or similar high traffic.
POTENTIAL
TARGET MARKETS / CITIES
Most
of the shoe manufacturing units and a number of shoe stores are present in
cities like Lahore, Karachi, Faisalabad, Quetta, Hyderabad, Peshawar, Sahiwal,
Gujranwala and Rawalpindi. Hence, these cities and other comparable cities in
the country are considered as a suitable option for setting up a footwear
retail outlet.
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