Title:
Business Plan for Hong Kong Outlet (www.outlethongkong.com)
Business Description:
Hong Kong Outlet is
an online shop which is a subsidiary of the Brands Corner Company limited.
Brands Corner is located in TST and established on June 2012. The Hong Kong
Outlet shop will focus on selling brand names handbags and watches mainly
parallel imported from Europe and US.
Market size & Description:
There are a lot of
parallel imported handbags shops in Hong Kong, (e.g. Milan station, VIP
station, etc.). The Milan station which have about 60% market share in Hong
Kong, the total sales volume in 2012 is around 676 million dollars. Therefore
the total market size will be around 1125 million dollars. From the 2012 yearly
report of Milan station, 26% of the sales are under $10,000, 18% sales are
between $10,001 and $30,000, 6% of the sales
are from $30,001 to $50,000 and 50% of the sales are above $50,000.
Most of the customers are coming from mainland China and they are mainly focus on low price and high price luxury goods.
Products/Services:
Hong Kong outlet
will focus on selling imported brand names Handbags, Wallet, watches and
accessories under $30,000 online. (BV, LV, Coach, Prada, Gucci, Chanel, etc.)
All the goods are directly purchased by the company's purchasing team and not
from the foreign buyers. We can choose the correct styles and price range goods
which fit the market at that moment. Moreover, the goods are 100% real goods,
there will be no risk for obtaining forfeit products from the foreign buyers.
The Hong Kong outlet also provides a consignment services platform for customer
to resell their brand new handbags.
Marketing Plan:
The original www.brands-corner.com website has no
electronic payment system and also can only support two languages. Therefore, Hong
Kong outlet will be running on the eonenet platform (www.outlethongkong.com) which can
provide support on electronic payment system, multimedia and social network. By
using the MegaWebsiteBuilder, the Hong Kong outlet website should have a
professional outlook and features.
Moreover, we will
use the search engine optimization techniques to make sure the online customer
can find Hong Kong outlet online shop within the first 10 outcomes for most
search engines (Google, Yahoo, Bidu, etc.). In addition, because of the Multilanguage
support of the eonenet system, the target customers will not only for Hong Kong
and China but also including Japan, SEA and South Korea.
The Hong Kong outlet will provide both shop pickup and mailing services for the customer.
Market Risk:
From the Milan
yearly report, the sales volume in Hong Kong is decrease by 23% in 2012, the
profit margin is decrease from 24% to 21 % in 2012. The Milan station is the
main competitor in the market and just started the online shop on last year.
There is a 5% discount on the online shop price.
Funding:
The setup cost for
the Hong Kong outlet online shop will be only around HK$8,000, all the selling
products will be directly provided by the Brands Corner at cost. The Hong Kong
outlet online will be running by eonenet and Brands Corner.
For the physical
shop, the monthly sale is around HK200,000-300,000. Therefore the Hong Kong
online shop should get about a yearly sales HK2.4M to 3.6M in the first year,
HK5M in second year and HK10M in the third year. The profit margin should be
around 30-35%.
Exit Strategy:
As Hong Kong outlet
online is supported by Brands Corner, there is no asset for this shop and the
only action is to close the website.
Management Team:
CEO is Lawrence Yuen
which has strong e-Business knowledge and technical knowhow, COO is eonenet
which will provide e-marketing support for the online shop, online shop manager
is Pauline Ngai which is the shop manager for the Brands Corner.
