Revised Business Plan from Lawrence Yuen

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.