Dự án mở cửa hàng thời trang nam project a men fashion shop

Project “A men Fashion shop”

FOREWORD
Thai Nguyen Province is one of the political-economic centers of Viet Bac region,
in particular, and of the northeast mountainous areas in general. It is also the socioeconomic exchange center between mountainous areas and northern delta area. On the
other hand, Thai Nguyen is also widely known as the third biggest center for people
training just behind Hanoi and Ho Chi Minh City with 6 universities, 11 colleges,
vocational schools and 9 vocational centers. As a result, this province is populated heavily
with students and peoples. The need for clothes and entertainment cannot be absent.
Whiles, in 2008, Thai market was completed for use. This market is in modern
design, big size and operates as a big trading center for Thai Nguyen Province and the
whole northeast region as well. This is very suitable to develop stalls of products and
services for daily needs such as food, cuisine, entertainment, jewelry, groceries,
accessories and particularly for fashion clothes. In fact, there are quite many fashion stalls
of all size attracting a lot of customers. However, such stalls mainly specialize in women
fashion. The vacancy for men fashion is very rare.
With great advantages and potentials of this field, our group has chosen and made
the project “A men fashion shop” in this region.
Objectives


To combine learned knowledge with researches in making the real project “A men
fashion shop” in Thai market, the objectives of this project are:
- Gain profits for investor.
- Meet the demand of men fashion for people, students in the province.
- Contribute to provincial economic development under policies of Vietnamese
Communist Party, State and the Province.
Scope:
“ Men fashion shop” is a small-sized project. So in its first phase, it just focuses on
meeting clothes demand of people, students in the City and the whole province.
Therefore, feasibility study and project design focus on basic items.

Implementing method:
Use study method of secondary information source to assess and plan the project
Contents:
Apart from foreword and conclusion, the project includes the following two parts:
Part 1: PROJECT OVERVIEW
Part 2: PROJECT PLANNING


PART 1: PROJECT OVERVIEW
1.1. The necessary of investment
At present, society is developing together with increasing living conditions for
people. For clothes, nice style is not only for women but also for men. This leads to a
demand in variety of types, quality of clothes. However, fashion shops now mainly serve
women. Fashion shops for men are in very small number, which cannot meet the demand
of fashion for man.
The demand for fashion now not only attracts women but also men. However, the
number stalls for men fashion in Thai market just counts for 1/3 of those for women.
Moreover, styles, types of men fashion are still limited while demand of customers is very
high. Therefore, it is necessary to open a men fashion shop in Thai market to meet
customer’s demand. This project is feasible and highly profitable.
1.2 .Project summary
- Project name: A men fashion shop
- Investor : Students of MBA B03 – Group 3
- Place of investment : Thai market
- Type of investment : Direct contribution
- Objective and duties : To meet demand for fashion of men in Thai Nguyen city
and neighboring areas. To gain profit, contribute to socio-economic development of Thai
Nguyen province.
- Investment basis : Provincial policies in economic development and 2005 Law
on Trade

- Total capital : VND250,000,000
- Main products : Men fashion (clothes)
- Technology and equipment for the project


- Sources of materials : Big markets such as Dong Xuan market, border gates in
Lang Son, Mong Cai or from wholesalers.
- Time : January, 2013
- Market: Thai Nguyen city and neighboring areas.
- Financial effectiveness: profit
- Socio-economic effectiveness: promoting economic development of the province,
meeting demand of fashion for men in Thai Nguyen City and neighboring areas.
1.3. Feasibility study
1.3.1. Socio-economic aspects
Although this project is not big in scale, it will bring socio-economic effectiveness
to the province :
- It will bring profits to the investor.
- Demand for fashion of men is very high. Upon operation, this project will help
provide enough clothes for men in the city, in general, and for male students in
universities, colleges and schools in particular.
- It will increase State budget through sales tax and business tax.
1.3.2. Legal aspect
A legal project is that makes no violations to national security and defense,
environment, identity and legislation of Vietnam
1.3.3. Market aspects:
The project is run in Thai market – a big trading center of Thai Nguyen Province
built in the city center. This area is very populated with high income.
According to the website of Thai Nguyen Department of Industry and Trade, 2011
GDP was 14.6%, GDP per capita was 30 million Vietnamese dong/person/year. This

reflects the increasing living conditions of people here, leading to high demand of
fashion.
Number of customers: According to the 2011 survey, population of Thai Nguyen
Province was about 1.2 million in which Thai Nguyen city counted for 330 thousand.
Additionally, there are 6 universities, 11 colleges and vocational schools, 9 vocational
centers with dozen of thousands of students. Target customers of the project is men in
Thai Nguyen city and universities, colleges, schools. Investigations reveals that men often
go shopping at weekends and public holidays and their favorite destination is city center,
particularly markets. Therefore, a men fashion shop in Thai market is suitable with
people’s income and will meet the lack of items, the taste of customers and attract
customers from competitors.

1.3.4. Technical aspects
- Equipment for the project
Due to its small size and its features of goods business, equipment for the project is
simple including fans, stainless hangers, light bulbs etc and others such as chairs, curtains,
broom.
- Products of project are men clothes and accessories such as shorts and socks.
- Types and styles of goods: depending on seasons and taste of customers.
- Place of project: In Thai market.
+ This area is highly populated. Therefore, consumption ability is very high.
+Security: This area is secured as it is under management of market supervision
board.
- Environment: Waste from producing and consuming will be classified and
collected within the day.
1.3.5. Financial aspects.
1.3.5.1. Capital mobilization method

* Capital mobilization plans:
- Method: mobilizing capital from members
- Return: At the end of second year, the project will gain return and profit.
* Because capital for project is equity capital, it is necessary to take into account
inflation and opportunity cost. We have:
-Inflation rate f= 6,2% ( based on the rate of 3 early months of 2012 presented by
Ministry of Investment and Planning in the web conference of the Government on )
- Interest rate ceiling: opportunity = 14%/year ( based on interest rate ceiling of State
Bank of Vietnam )
Then rate r is as follows:
r = (1+f)(1+ r opportunity) – 1= (1+0,062)(1+0,14) - 1= 0,2107or 21,07%
* Time estimate for return and method of capital contribution:
Capital for project is mainly in cash and the time for capital collection and
contribution is 2 weeks prior to the offset of the project.
1.3.5.2. Determining total capital for the project
Unit: VND
No
1

Item
Fixed capital:
- Expense for buying stalls

Amount
138,656,000
130,000,000

- Expense for repairing stalls

1,000,000

- Expense for equipment

7,656,000

2

Current capital

3

Provision capital

100,000,000
11,344,000


Total

250,000,000

Table 01: Total investment of the project
* Estimated expenses
-

Expenses for equipment:

Unit; VND

Table 02: Expenses for equipment
* Estimated expenses for buying clothes early months of spring and summer
Unit: VND1,000
No

Item

Quantity

Unit price

Amount

(Item)
1

T-Shirts

90

30

2,700

2

T-shirts

200

100

20,000

3

Shirts

200

150

30,000

4

Underwear

60

15

900

5

Trousers

100

110

11,000

6

Jeans

80

150

12,000

7

Shorts

50

50

2,500

8

Trousers

80

160

12,800

9

Shorts

30

90

2,700

Total

82,720


Table 03: Estimated expenses for buying clothes for early months of spring and
summer
* Estimated expenses for buying clothes in 6 successive months of spring and
summer
Unit: VND1,000
No

Item

Quantity

Unit price

Amount

(Item)
1

T-Shirts

30

30

900

2

T-shirts

50

100

5,000

3

Shirts

30

150

4,500

4

Underwear

20

15

300

5

Trousers

30

110

3,300

6

Jeans

30

150

4,500

7

Shorts

30

50

1,500

8

Trousers

30

160

4,800

9

Shorts

25

90

2,250

Total

27,050

Table 04: Estimated expenses for buying clothes in 6 successive months of spring and
summer
* Total expenses for early months of spring and summer

Unit: VND1,000


No

Expense

Amount

1

Expense for buying clothes

82,720

2

Employee’s wages (1,000 x 2)

3

Expenses for electricity and water

200

4

Expense for opening day

500

4

Others

700

2,000

Total

86,120

Table 05: Total expenses for early months of spring and summer

* Total expense for each successive month of spring and summer
Unit: VND1,000

No

Expense

Amount

1

Expense for buying clothes

2

Employee’s wages (1,000 x 2)

3

Expenses for electricity and water

200

4

Others

500

Total

27,050
2,000

28,400


Table 06: Total expense for each successive month of spring and summer

* Estimated expenses for buying clothes in the first months of spring and summer
Unit: VND1,000
No

Item

Quantity

Unit price

Amount

(Item)
80
50
40
20

120
350
150
200

9,600

14,000
6,000
4,000

1
2
3
4

Autumn-winter clothes
Overcoats
Pullover
Wind-breakers (set)

6

Jeans

50

150

7,500

7

Trousers

50

160

8,000

8

Socks (pair)

30

15

450

Total

49,550

Table 07: Estimated expenses for buying clothes in the first months of spring and
summer

* Estimated expenses for buying clothes in 4 successive months of autumn and winter
Unit: VND1,000
No

Item

Quantity

Unit price

Amount

(Item)
1

Pullovers

20

150

3,000

2

Overcoats

50

350

17,500


3

Wind-breakers (set)

30

200

6,000

4

Trousers

10

110

1,100

5

Jeans

45

150

6,750

6

Trousers

40

160

6,400

7

Socks (pair)

30

15

450

Total

41,200

Table 08: Estimated expenses for buying clothes in 4 successive months of autumn and
winter

* Total cost for the first month of winter
Unit: VND1,000
No

Expense

Amount

1

Expense for buying clothes

49,550

2

Employee’s wages (1,000 x 2)

3

Expenses for electricity and water

200

4

Others

500

2,000

Total

52,250

Table 09: Total cost for the first month in winter
* Total expense for each successive month in autumn and winter

Unit: VND1,000


No

Expense

Amount

1

Expense for buying clothes

41,200

2

Employee’s wages (1,000 x 2)

3

Expenses for electricity and water

200

4

Others

500

2,000

Total

43,900

Table 10: Total expense for each successive month in autumn and winter


Estimated revenue in a year



Revenue at the beginning of spring and summer

Unit: VND1,000
No

Item

Quantity

Unit price

Amount

(Item)
20
50

25

45
150
200

900
7,500
5,000

1
2
3

T-Shirts
T-shirts
Shirts

4

Underwear

10

25

250

5

Trousers

20

160

3,200

6

Jeans

25

280

7,000

7

Shorts

15

65

975

8

Trousers

25

280

7,000

9

Shorts

15

110

1,250

Total
Table 11: Revenue of the first month of spring and summer

33,075


 Revenue of successive months of spring and summer
Unit: VND1,000
No

Item

Quantity

Unit price

Amount

(Item)
1

T-Shirts

40

45

1,800

2

T-shirts

70

150

10,500

3

Shirts

40

200

8,000

4

Underwear

15

25

375

5

Trousers

30

160

4,800

6
7

Jeans
Shorts

30
25

280
65

8,400
1,625

8

Trousers

30

280

8,400

9

Shorts
Total

25

110

2,750
46,650

Table 12: Revenue of successive months of spring and summer
 Revenue of the first month of autumn and winter
Unit: VND1,000
No
1
2
3
4
5
6
5
6
7

Item
Pullovers
Overcoats
Shirts
Autumn-winter clothes
Wind-breakers (set)
Underwear
Trousers
Jeans
Trousers

Quantity

Unit price

(Item)
15
10
10
50
5
10
10
20
30

200
500
200
170
350
25
160
280
280

Amount
3,000
5,000
2,000
8,500
1,750

250
1,600
5,600
8,400


8

Socks (pair)
Total

15

20

300
36,400

Table 13: Revenue of the first month of autumn and winter


Revenue of successive months of autumn and winter
Unit: VND1,000

No
1
2
3
5
6

5
6
7
8

Item

Quantity

Unit price

(Item)
15
50
10
20
10
10
45
30
20

220
500
220
350
25
185
280
290

20

Pullovers
Overcoats
Shirts
Wind-breakers (set)
Underwear
Trousers
Jeans
Trousers
Socks (pair)
Total

Amount
3,300
25,000
2,200
7,000
250
1,850
12,600
8,700
400
61,300

Table 14: Revenue of successive months of autumn and winter


Estimated profits and losses:
Unit:

VND1,000

No

1

Years of
operation

Item

Annual
expenses

Year 1

Year 2

Year 3

Year 4

Year 5

468,870

468,870

468,870

468,870

468,870


2

Total revenue

579,925

579,925

579,925

579,925

579,925

3

Investment

250,000

0

0

0

0

4

Net profit

-138,945

111,055

111,055

111,055

111,055

5

Accumulated
profit

-138,945

-27,890

83,165

194,220

305,275

Table 15: Estimated profits and losses
- The above table shows that in year 2, the project begins to gain profit and get return
* Net Present Value.

Unit: VND1,000
NO

Objectives

1

Revenue:

2011

- Revenue
2

579,925

2012

2013

2014

2015

579,925

579,925

579,925

579,925

0

0

0

0

468,870

468,870

468,870

468,870

111,055

111,055

111,055

111,055

0.826

0.682

0.563

0.465

Expenditure:
Initial 250,000
investment
Annual
468,870
expense

3

Difference
of
revenue
and 138,945
expenditure

4

Discount
coefficient
(1+r)n

1/

1


(r = 0.2107)
5
6

Discounted cash flow
138,945
Accumulating
discounted cash 138,945
flow

91,731.4

75,739.5

62,523.96

51,645.75

3

1

5

47,213.57

28,525.94

91,049.905 142,690.48

Table 16: Objective of net present value (NPV)
The above shows that NPV = VND142,690,480
1.4. General assessment
1.4.1. Advantages
- The project is suitable with policies of the province.
- The project has big market, high profitability.
1.4.2. Disadvantages
- This area is very populated with many shops. Therefore, it is difficult to find a
good and suitable place.
- This is the first operation of the investor, it has no or little experience in legal
procedures.
PART II: PROJECT PLANNING
2.1. Work Breakdown Structure (WBS)
2.1.1.Tasks of the project
The project “A men fashion shops” consists of the following tasks:
- Capital contribution:
+ Calculate expense and determine the amount of capital contributed
+ Choose type and subjects of capital contribution


+ Negotiate, make contract
+ Sign contract.
+ Get capital contribution
- Goods sources determination:

+ List target goods
+ Investigate price, choose and buy goods
+ Transport goods
- Business registration:
+ Study legal procedures
+ Prepare business registration documents
+ Submit documents
+ Complete legal procedures.
- Stall selection
+ Investigate place
+ Choose stall
+ Negotiate terms and conditions with Market Management Board
(MMB)
+ Make contract for purchase of stall
+ Sign contract
- Equipment purchase
+ Determine necessary equipment
+ Investigate prices


+ Buy and transport equipment
- Opening plan
+ Determine the time
+ Make signs
+ Print and handout leaflets
+ Arrange and decorate the shop
+ Open the shop


2.1.2. Work breakdown structure at level 3

Work breakdown structure is to divide a project into certain task groups, to determine, list and make tables to explain each task
that are necessary. This will help to determine what tasks belonging to and what tasks not belonging to the project. The project “A
men fashion shop” is a small one with low investment, short time for implementation. Therefore, it requires work breakdown structure
at level 3 that are necessary tasks.

Project “A men
fashion shop”

1.
Capital
contribu
tion

2.
Goods
sources
determi
nation

3. Business
registration

4. Stall
selection

Nhóm: 03

5.
Equipment

6.
Opening
plan


1. Capital contribution

1.1
Calculate
expense and
determine
the amount
of capital

1.2 Choose
type and
subjects of
capital
contribution

1.3.

Negotiate,
make
contract

1.4 Sign

1.5 Get

contract

capital
contribution

2. Goods sources
determination

2.1. List

2.2
target
Investigate
goods
price,
3.Business registration
choose and
buy goods

2.3
Transport
goods

Nhóm: 03
4. Stall selection


3.1. Study
legal
procedures

4.1.
Investigate
place

3.2. Prepare
business
registration
documents

4.2.Choose
stall

5.1.
Determin
e
necessary
equipmen6.2.
Make
signs

3.3.
Submit
documents

4.3. Negotiate terms
and conditions with
market management
5. Equipment
board purchase

5.2.
Investigate
prices
Nhóm: 03
6. Opening plan

3.4.
Complete
legal
procedures
.

4.4. Make
contract for
purchase of stall

5.3. Buy
and
transport
equipment
6.4.
Arrange
and
decorate
the shop

4.5. Sign
contract

6.5.
Open
the shop


6.1.
Determine
the time

6.3.Print
and
handout
leaflets

Nhóm: 03


2.1.3. List code of items of the project
No

Task

Code

Detail

1
2

A

1.
1.1

3

B

1.2

4
5
6
7

C
D
E

1.3
1.4
1.5
2.

8

F

2.1

Capital contribution
Calculate expense and determine the amount
Choose type and subjects of capital
contribution
Negotiate, make contract
Sign contract
Get capital contribution
Goods sources determination
List target goods

9
10
11
12
13
14
15
16
17
18
19
20
21

G
H

2.2
2.3
3.

3.1
3.2
3.3
3.4
4.
4.1
4.2
4.3
4.4
4.5

I
J
K
L
M
N
O
P
Q

Investigate price, choose and buy goods
Transport goods
Business registration
Study legal procedures
Prepare business registration documents
Submit documents
Complete legal procedures
Stall selection
Investigate place

Choose stall
Negotiate terms and conditions with MMB

Make contract for purchase of stall
Sign contract

Previous
task
A
A
B,C
D
F
G,Q
E
I
J
K
E
M
N
O
P
27


22
23
24
25

26
27
28
29
30
31

5.
5.1
5.2
5.3
6.
6.1
6.2
6.3
6.4
6.5

R
S
T
U
V
W
X
Y

Equipment purchase
Determine necessary equipment
Investigate prices

Buy and transport equipment
Opening plan
Determine the time
Make signs
Print and handout leaflets
Arrange and decorate the shop
Open the shop

E
R
S,Q
L,T,H
U
U
U
V,W,X

Table 17: List code of items of the project
2.2. Estimate expenses and resources of the project
2.2.1. Estimated expenses and resources
Estimated budget for the project is the plan to allocate the fund for activities in order to ensure the schedule of the
project
Project of “A men fashion shop” is funded by its members. Expense is estimated bottom up, that is from specific
item to general items.
Total fund for the project is VND239,930,000
- Estimate fund for the project:

28