Business Plan of Thai Lay Garments

Executive Summary

Thai Lay is a fast-moving Garment Export Manufacturing unit for men, women, and children.

Over the years, this company has produced innovative, attractive, and colorful clothes to suit different tastes, designs, choices, and preferences, including half and full sleeve T-Shirts for men, women, and children, woolen products, and casual wear. Their woolen sweaters and cashmere products are well sought after in European markets.

It now wishes to make forays into the e-commerce market.

Background of the Company

Thai Lay is a limited company headquartered in Hong Kong with its manufacturing unit in mainland China. This location has been a strategic choice for gaining quality raw materials, lowered labor and overheads costs (that substantially form part of manufacturing costs), and economies of scale, since the company is operating in a competitive market where it may not be possible to hike sales prices without affecting quantum and volume of sales. Cost controls and market development has been key ingredients that incorporate planning for the “last 20 years “of their existence. (Thai Lay Fashion Co Ltd. 2008).

It is necessary that Thai Lay develop niche products like woolen sweaters and cashmere products, which are its main selling product lines. This can be achieved by making innovative designs, attractive color combinations, and fiber blending which has not to be carried out, as yet, by any of its present competitors.

It is necessary that Thai Lay concentrate on the production of premier products that could be sold online.

There is tremendous demand for the kind of products that Thai Lay manufactures and the present market of “China’s share of US and EU clothing imports will double or even treble in the next five years.”(Survey of Chinese Garment Company Strategies: Summer 2005 Buying Season).

For the sake of a robust Marketing Plan for the future, Thai Lay needs to break up its marketable products into five segments namely: Casual wear, Formal wear, Sports and Swimwear, winter wear, and Party wear. For each of these product lines, it is needed that a company proposes a Market Plan based on past performances, future expectations, and market standings. It is needed that an accurate pulse of the present market is made and battle lines are drawn accordingly, taking into account the future trends and how well Thai Lay could exploit market opportunities and trends in terms of capturing and retaining market shares, through strategic planning and execution.

Serial Sales forecasts 2008
£
2009
£
2010
£
2011
£
1. Casual wear 15,000 16,500 18,750 21,000
2. Formal wear 14,000 16,000 17,750 20,000
3. Sports and Swimwear 12,000 12,750 13,800 14,500
4. Winter wear 15,000 16,500 17,250 18,000
5. Partywear 11,000 11,700 12,000 13,600
Total 67,000 83,450 79,550 87,100
Serial Cost of sales 2008
£
2009
£
2010
£
2011
£
1. Casual wear 13,000 13,500 12,750 13,000
2. Formal wear 12,000 12,700 12,750 13,000
3. Sports and Swimwear 11,000 12,250 12,750 13,500
4. Winter wear 11,000 12,500 12,800 13,000
5. Partywear 10,000 11,000 11,700 12,000
Total 57,000 61,950 39,800 64,500

Proposed profits for tears 2008 – 2011

Serial Sales forecasts 2008
£
2009
£
2010
£
2011
£
1. Sales 67,000 83,450 79,550 87,100
2. Less: Cost of sales 57,000 61,950 39,800 64,500
3. Projected profits 10,000 21,500 39,750 22,600

Market forecast for Thai Lay Garments Products

Serial Potential customers Growth rate 2008
£
2009
£
2010
£
2011
£
1. Casual wear 10% 190,000 209,000 229,900 252,890
2. Formal wear 12% 250,000 280,000 313,600 351,232
3. Sports and Swimwear 8% 200,000 216,000 233,280 251,943
4. winterwear(niche) 15% 400,000 460,000 529,000 608,350
5. Partywear 9% 150,000 163,500 178,215 194,254
Total 11,90,000 13,28,500 14,83,995 16,58,669

Demographics and bestsellers

The demographics regarding the distribution of high-quality garments would be an equal ratio between males and females for T-shirts, jeans etc. The niche market for Thai lay in the winter wear which comprises woolens, sweaters, cardigans, pullovers, cashmere shawls, mufflers, etc. Their woolen cardigans are bestsellers because of their attractive design (Computer-aided) color combination and textures.

Their Sports range covers the gamut of needs of young people from early teens to vigorous adults and also the widest age and price ranges. The formal wear is also well accepted and is worn by adults in the earning groups of £ 48,000 per year.

SWOT Analysis

SWOT Analysis of M/s.Thai Lay Garment Export Company

Strengths Weaknesses Opportunities Threats
In-depth and wide experience in garment export trade Brand image not present Possibilities for enlarging the market potential Highly competitive market
Wide range of quality products Employees dissatisfaction Capacity could be increased depending upon market trends Profit margins could attract potentially strong rivals in later years
Good reputation and goodwill Lack of motivation for staff and employees Since quality and pricing are good, there is tremendous growth potential Govt regulations in export areas could affect business
Strategic location in Hong Kong close to main markets Delay in order execution There are no constraints regarding raw materials, power, or resources Inflation and money market pressures may affect business
Spacious manufacturing infra-structure Catering to European markets only – need to move into other areas, especially e-commerce business Professional management with wide experience in the export field can be better utilized Proposed internet business will have inherent risks

A SWOT analysis is used for understanding the organization. (Swot Analysis-Matrix, Tools Templates and Worksheets: How to do a Swot Analysis. 2008).

Main strength and weaknesses

The main strength of this company would be in terms of its robust marketing experience and the team of professionals well versed with various facets of export trade. Its principal weakness is the lack of a good brand image.

Competition

Being in a highly competitive garment export business, it is believed that its forays into the internet and eCommerce deployed selling would expand the vistas of its trade and reinforce selling on an international basis. This would also offer opportunities to gain deeper and intensive market knowledge so that new products could be developed and presented to valued customers. In garments, “Uniqueness is important as it creates individuality, whilst plain generic is also important to the extent that they can be dressed up, dressed down or teamed up with a unique item to create an over all individual look.” (Target Market: Public market: Zenovia/Business Plan/ Marketing Plan).

Marketing objectives

The main goals of this Marketing Plan are resource planning and allocation of resources according to budgets. The main aspects of revenue generation, cost controls, customer satisfaction, and new product development are critical areas within the ambit of marketing plans. (Principles of Marketing: How to Write a Marketing Plan: Part 1: Purpose and mission).

Conclusions

It is seen that new product development is a critical area in that market sustainability and acceptance are also important factors that need to be addressed to Garment business is all about monitoring and controlling overheads to ensure that expenses are below incomes and long-term business objectives are realized from time to time.

Bibliography

Target Market: Public market: Zenovia/Business Plan/ Marketing Plan. [online]. 2008. Web.

Thai Lay Fashion Co Ltd. (2008). [online]. eSource Apparel: Revolutionizing the Business of Fashion. Web.

Principles of Marketing: How to Write a Marketing Plan: Part 1: Purpose and mission.[online]. KnowThis.com. 2008. Web.

, Tools Templates, and Worksheets: How to do a Swot Analysis. (2008). [online]. Rapidbi: Knowledge Understanding Action. Web.

Survey of Chinese Garment Company Strategies: [online]. 2008. Web.