Are you about starting a lingerie line? If YES, here is a complete sample lingerie line business plan template & feasibility report you can use for FREE.
It is a fact that females cannot do without underwear, and this makes the lingerie market one viable market in the clothing industry. So, if you are already in the cloth manufacturing industry, then it will be very much easier for you to add lingerie production to your line.
Any aspiring entrepreneur can start this business as long as they are creative, they can get celebrities to promote their brand and they have good business skills.
The starting size of this type of business doesn’t really matter as long as the business is built on the right foundation and with the right combination of skills and talents. Below is a sample lingerie line business plan template that can help you to successfully write your own with little or no difficulty.
A Sample Lingerie Line Business Plan Template
1. Industry Overview
Beyond every reasonable doubt, the clothing line industry of which lingerie is a part of, is indeed a money spinning industry just like the food and real estate industry. It is simple, clothing is amongst the top three needs of humans because it has to do with covering nakedness.
Because of favorable economic conditions in the united states, the Lingerie, Swimwear and Bridal industry is projected to grow in the coming years.
Since most industry products are considered discretionary, the industry typically trends in line with the health of the overall economy; over the last half a decade, as per capita disposable income increased, the lingerie, swimwear and bridal industry was buttressed by greater consumer spending.
The demand in the industry was also strengthened by growth in the industry’s largest market: adults between the ages of 20 and 65.
Statistics has it that in 2010, American households spent an average of $1,700 on apparel (lingerie inclusive), footwear, and related fashion products. In the 2010 alone, the global market for textiles made from organically grown cotton was worth over $5 billion; that goes to show how big the industry is.
The bureau of statistics stated that employment in the U.S. apparel manufacturing industry has declined by more than 80 percent (from about 900,000 to 150,000 jobs) over the past twenty years. However, labor productivity in the U.S. manufacturing sector more than doubled from 1987 to 2010.
Labor productivity also more than doubled over that period in U.S. textile mills and nearly doubled in footwear manufacturing sector as well.
According to report released by IBISWorld, the Lingerie, Swimwear and Bridal industry is moderately concentrated, with the four largest companies representing 43.1 percent of total industry market share. The report stated that while L Brands dominates the industry with 36.1 percent market share, the remaining companies are small- to medium-sized players that offer specialized and niche products.
In fact, IBISWorld also estimates that over 85.0 percent of all companies are non – employers, which are operators without hired employees. Industry concentration has increased over the past five years, largely due to Victoria’s Secret outperforming the industry thanks to its well-recognized brand name and expanding product line; the company’s market share has grown from 17.7 percent in 2011 to 18.4 percent in 2016.
Some of the leading labels in the lingerie cum fashion industry are from the United States of America. Although some of these lingerie labels outsource their production to other parts of the world; predominantly countries in Asia in the bid to cut cost.
Some of the factors that encourage entrepreneurs to start their own lingerie manufacturing company are that the business is profitable and the products can be sold not just in your country but all across the globe. The lingerie line industry is growing and there are opportunities for entrepreneurs to launch their own business from the scratch and still become a globally recognized.
The advent of computer and computer software brought leverage in the industry as designing lingerie can be conveniently done with the aid of software, and a designer can reach out to the world market by putting up his products for sale online. Instagram, YouTube et al are good platforms to promote this type of business.
2. Executive Summary
Beci Lamb® Lingerie, Inc. is an international lingerie manufacturing company that will be located in Olympia – Washington. We have been able to secure a large warehouse facility in a strategic part of town that will be converted to our factory.
We were able to out rightly buy over the facility with the help of our bank and support from family and friends. Beci Lamb® Lingerie, Inc. will be involved in the manufacturing of lingerie and swimwear for different sizes and age groups to meet the trend in the industry.
Our business goal is to become one of the leading lingerie manufacturing companies in the United States and we will make sure that every lingerie and swimwear that leaves our factory can favorable compete with the best brands in the industry.
Our workers are going to be selected from a pool of talented designers in and around Olympia – Washington. We will make sure that we take our workforce through the required trainings that will position them to meet the expectations of the company.
We have put plans in place to build a state of the art lingerie manufacturing factory in Olympia – Washington, which is why we have entered agreement with some manufacturers of sewing machines to produce customized sewing machines for us that will give us the quality we want to be known for.
Our factory will be equipped and we will ensure that we follow the trend in the industry. Beci Lamb® Lingerie Line, Inc. will manufacture high quality lingerie and swimwear for both the high – end and low income earners; we want to become the people’s choice wherever our lingerie and swimwear are put up for sale.
Apart from mass production of lingerie and swimwear, we will also be engaged in customized production of lingerie and swimwear for customers based on their demands.
We are quite aware that there are some clients such as music producers, swimming clubs / swimmers, and film producers et al who would need customized lingerie and swimwear for specific purposes and we are prepared to deliver as requested.
Beci Lamb® Lingerie Line, Inc. is owned by Beci Lamb and her immediate family members. She is an American fashion enthusiast with over two decades of experience in the fashion industry.
She will occupy the position of the chief executive officer (CEO) / President of the organization. Beci Lamb has Degree in Fashion Designing from New York School of Fashion and also an MBA in Economics from Columbia Business School.
She is a respected figure in the fashion industry. Prior to starting Beci Lamb® Lingerie Line, Inc. she was the creative director in one of the world’s leading fashion label that is based in Los Angeles – California.
3. Our Products and Services
Beci Lamb® Lingerie Line, Inc. is established with the aim of producing high quality and highly fashionable lingerie and swimwear for different classes of women.
We know that quality is a key factor that will help us sell our brand which is why we have put in place a competent quality assurance team that will ensure that all our lingerie and swimwear meet and even surpass our customers’ expectations.
We will work hard to ensure that our brand is not just accepted nationally in the United States of America, but also in other parts of the world.
4. Our Mission and Vision Statement
- Our vision is to establish a lingerie company whose products will not only be accepted in the United States of America, but also in other parts of the world.
- Our mission is to establish a lingerie manufacturing company that will design and produce high quality lingerie and swimwear; a lingerie line that will compete favorably with international labels like Ashley Graham Lingerie Collection, Calvin Klein Underwear, Victoria’s Secret and Stella McCartney et al at the global stage.
Beci Lamb® Lingerie, Inc. intends to start small in Olympia – Washington, but looks to grow big in order to compete favorably with leading lingerie manufacturing companies both in the United States and on a global stage. We are aware of the importance of building a solid business structure that can support the kind of world class lingerie business we want to own.
This is why we are committed to only hiring the best hands within our area of operation. At Beci Lamb® Lingerie Line, Inc., we will ensure that we hire people that are qualified, hardworking, customer centric and are ready to work to help us build a prosperous business that will benefit all the stakeholders.
As a matter of fact, profit-sharing arrangement will be made available to all our senior management staff and it will be based on their performance for a period of five years or more as agreed by the board of trustees of the company. In view of the above, we have decided to hire qualified and competent hands to occupy the following positions;
Chief Executive Officer (Owner), Production Manager, Human Resources and Admin Manager, Sales and Marketing Executive, Accountant, Fashion Designers (With Bias in lingerie and swimwear), Quality Control Officer, Tailors, and Factory Workers.
5. Job Roles and Responsibilities
Chief Executive Officer – CEO:
- Increases management’s effectiveness by recruiting, selecting, orienting, training, coaching, counseling, and disciplining managers; communicating values, strategies, and objectives; assigning accountabilities; planning, monitoring, and appraising job results; developing incentives
- Creates, communicates, and implements the organization’s vision, mission, and overall direction – i.e. leading the development and implementation of the overall organization’s strategy.
- Responsible for fixing prices and signing business deals
- Accountable for providing direction for the business
- Responsible for signing checks and documents on behalf of the company
- Evaluates the success of the organization
- Reports to the board
- Maintains quality service by establishing and enforcing organization standards.
- Maintains professional and technical knowledge by attending educational workshops; reviewing professional publications; establishing personal networks; benchmarking state-of-the-art practices; participating in professional societies.
- Contributes to team effort by accomplishing related results as needed.
- Responsible for managing the daily activities in the factory
- Devises ways of improving the manufacturing process to ensure higher-quality and durable lingerie and swimwear
- Ensures that manufacturing production lines run smoothly and generate a consistently suitable output
Human Resources and Admin Manager
- Maintains office supplies by checking stocks; placing and expediting orders; evaluating new products.
- Ensures operation of equipment by completing preventive maintenance requirements; calling for repairs.
- Defines job positions for recruitment and managing interviewing process
- Carries out induction for new team members
- Responsible for training, evaluation and assessment of employees
- Responsible for arranging travel, meetings and appointments
- Oversees the smooth running of the daily office activities.
Sales and Marketing Manager
- Identifies, prioritizes, and reaches out to new partners, and business opportunities et al
- Identifies development opportunities; follows up on development leads and contacts
- Responsible for supervising implementation, advocate for the customer’s needs, and communicate with clients
- Documents all customer contact and information
- Represents the company in strategic meetings
- Helps to increase sales and growth for the company
- Responsible for preparing financial reports, budgets, and financial statements for the organization
- Provides managements with financial analyses, development budgets, and accounting reports
- Responsible for financial forecasting and risks analysis.
- Performs cash management, general ledger accounting, and financial reporting
- Responsible for developing and managing financial systems and policies
- Responsible for administering payrolls
- Ensures compliance with taxation legislation
- Handles all financial transactions for the organization
- Serves as internal auditor for the organization
- Responsible for designing lingerie and swimwear to meet the latest trend
- Stays abreast with the dynamics of the fashion industry with key interest in lingerie and swimwear
- Researches and advices the organization on style, size and other trendy fashion statements.
Quality Control Officer
- Ensures that all the lingerie and swimwear in our production line meets the required quality before they are released in the market
- Ensures that the organization work in line with international best practices
- Handles any other responsibility as assigned by the general manager
Tailors (Industrial Sewing Machine Operators)
- Responsible for sewing a wide range of lingerie and swimwear as instructed by the fashion designer
- Responsible for cutting clothing materials to fit the expected design and size
- Handles any other duty as assigned by the general manager
- Responsible for ironing and packaging of lingerie and swimwear
- Responsible for movement of equipment and raw materials as required
- Ensures that toiletries and supplies don’t run out of stock
- Cleans both the interior and exterior of the factory, machines and other equipment
6. SWOT Analysis
Beci Lamb® Lingerie, Inc. intends to build a world class lingerie manufacturing business that will manufacture a wide range of lingerie and swimwear. We will be based in Olympia – Washington, but we will not restrict the sale of our products to the U.S market alone, we will sell our product in other parts of the world.
In other to achieve this in a highly competitive industry, we must ensure that we look through our strength, our weaknesses, the opportunities available in the industry and the threats that we will are likely going to face.
Because of the nature of the business we are involved in and the brand we want to build, we were able to hire the services of an HR and Business consultant with bias in fashion and retailing to help us conduct a thorough SWOT analysis and to help us create a Business model that will help us achieve our business goals and objectives. This is the summary of the SWOT analysis that was conducted for Beci Lamb® Lingerie Line, Inc.;
One of our strongest strengths could be attributed to the quality of employees and the latest machines and equipment that we have in our factory. Our chief executive officer, Mrs. Beci Lamb will be bringing her vast wealth of experience to the table and that is indeed a huge positive for Beci Lamb® Lingerie Line, Inc.
A major weakness that may count against us is the fact that we are a new lingerie manufacturing company and we don’t have the financial capacity to compete with multi – billion dollar fashion labels like Ashley Graham Lingerie Collection, Calvin Klein Underwear, Victoria’s Secret and Stella McCartney et al when it comes to controlling the market or determining the trend.
One thing is certain, whether good or bad, ladies will always look for lingerie and swimwear to wear and that in itself is a huge business opportunity for us. Besides, the opportunity for lingerie companies to sell their lingerie and swimwear is massive and we hope to leverage on these opportunities to sell our products.
Just like any other business, one of the major threats that we are likely going to face is economic downturn. It is a fact that economic downturn affects purchasing power. Another threat that may likely confront us is the arrival of a new lingerie company in same location where our target market exist.
7. MARKET ANALYSIS
- Market Trends
The fashion industry relies more on mass market sales for them to make the kind of income that will sustain the business.
The mass market takes care of a wide range of customers that cuts across both the rich and the poor. Most of the new lingerie companies that are trying to catch – up with the market ensures that they produce ready-to-wear lingerie and swimwear using trends set by leading fashion labels.
What they do is that they try to see the direction of the trend as established by renowned fashion brands before producing their own versions of the original look by making use of cheaper fabrics and simpler production processes which can easily be done by machines.
They can comfortably sell such products at a cheaper price to the masses who can’t afford to by the original which is often way too expensive for the common man.
As a matter of fact, lingerie and swimwear manufacturers now leverage on the runway – fashion expo to promote and attract market for their products. Any fashion designer who is recognized in Paris, Milan, New York City, or London can comfortably become a global recognized fashion label.
Startup lingerie companies leverage on small markets such as community swimming clubs, film producers and sport fans to sell their lingerie and swimwear. These group of people can order large numbers of customized lingerie and swimwear for special purposes.
For example, a swimming club may enter into a business deal with a lingerie line to help them produce swimwear to be used by their supporters during competitions.
8. Our Target Market
When it comes to selling lingerie, swimsuits and clothes generally, there is indeed a wide range of available customers. In essence, our target market can’t be restricted to just a group of people, but all those who resides in the locations where we intend opening our lingerie company.
Despite the fact that Beci Lamb® Lingerie Line, Inc. will start operation from a single factory in Olympia – Washington, we have a holistic view of the kind of business we want to build; we want to grow to the level where we will build factories in Thailand and China.
Our lingerie and swimsuit – brand is going to be designed to penetrate the world’s fashion industry. We want people of all walks of life across the globe to someday put on our lingerie and swim suit; we want to see our products being worn by ladies in Paris, London, Tokyo, Lagos, Madrid, Johannesburg, Bueno Aries, Sao Paulo, Port Elizabeth, Dubai and all over the world.
Our competitive advantage
A close study of the lingerie industry reveals that the market has become much more intensely competitive over the last decade. As a matter of fact, you have to be highly creative, customer centric and proactive if you must survive in this industry.
We are aware of the stiffer competition and we are prepared to compete favorably with other companies both in the United States of America and other parts of the world.
Another competitive advantage for Beci Lamb® Lingerie Line, Inc. is the quality and robust experience of its management team. The management team comprises of professionals who have worked with some of the leading international brands in the fashion industry.
Our latest machines and equipment also count towards our advantage especially when it comes to competing with other companies within the same category that we operate.
Lastly, our employees will be well taken care of, and their welfare package will be among the best within our category in the industry, meaning that they will be more than willing to build the business with us and help deliver our set goals and achieve all our aims and objectives.
We will also give good working conditions and commissions to freelance sales agents that we will recruit from time to time.
9. SALES AND MARKETING STRATEGY
- Sources of Income
Beci Lamb® Lingerie Line, Inc. is in business to retail a wide range of lingerie and swim suits both in the United States and other countries of the world. We are in this business to maximize profits and we are going to ensure that we achieve or business goals and objectives. In essence, our source of income will be the manufacturing and retailing of a wide range of both lingerie and swimsuits.
10. Sales Forecast
One thing is certain when it comes to this business, if you manufacture a wide range of lingerie and swimsuits, you will always attract customers cum sales and that will sure translate to increase in revenue generation for the business.
We are well positioned to take on the available market in and around Olympia – Washington and we are quite optimistic that we will meet our set target of generating enough income/profits from the first six months of operation and grow the business and our clientele base.
We have been able to examine the lingerie industry, we have analyzed our chances in the industry and we have been able to come up with the following sales forecast. Below are the sales projections for Beci Lamb® Lingerie Line, Inc., it is based on the location of our business and other factors as it relates to lingerie manufacturing startups in the United States;
- First Fiscal Year: $250,000
- Second Fiscal Year: $550,000
- Third Fiscal Year: $1.0 Million
N.B: This projection was done based on what is obtainable in the industry and with the assumption that there won’t be any major economic meltdown and there won’t be any major competitor offering same products as we do within same location. Please note that the above projection might be lower and at the same time it might be higher.
- Marketing Strategy and Sales Strategy
Before choosing a location for Beci Lamb® Lingerie Line, Inc., we conducted a thorough market survey and feasibility studies in order for us to penetrate the available market and become the preferred choice for residents of Olympia – Washington and every other location where our lingerie and swim suits will be retailed.
We have detailed information and data that we were able to utilize to structure our business to attract the number of customers we want to attract per time.
We hired experts who have good understanding of the lingerie industry to help us develop marketing strategies that will help us achieve our business goal of winning a larger percentage of the available market in Washington. In summary, Beci Lamb® Lingerie Line, Inc. will adopt the following sales and marketing approach to win customers over;
- Introduce our lingerie line label by sending introductory letters and catalogue to film makers, music producers, female organizations, swimming clubs and other key stakeholders in and around Washington
- Attend fashion expos in the U.S and in other parts of the world
- Organize our own fashion show; in order for us to display our designs / lingerie
- Advertise our lingerie label in newspapers, TV and radio stations
- Canvass celebrities to wear and help us promote our lingerie label
- List our business on yellow pages’ ads / local directories
- Leverage on the internet to promote our business
- Engage in direct marketing
11. Publicity and Advertising Strategy
Publicity and advertising as it relates to the fashion industry involves being in touch with the organizations target market and being very creative and proactive. Beyond every reasonable doubt, the media plays a very big role when it comes to helping clothing labels gain international significance.
The social media also plays an important role in modern day fashion publicity and advertisement; it gives fashion labels the ability to reach out to a wide range of customers all over the world within a short period of time and of course at a very cheaper price when compared to other publicity and advertising platforms.
Any player in the lingerie industry that wants to take on the market must be deliberate when it comes to building brand awareness and credibility. Most often than not, big – time lingerie and clothing labels ensure that they create great hype whenever they are about to release any unique design from their stable.
Social media, such as blogs, micro blogs, podcasts, photo and video sharing sites are some of the tools fashion designers leverage on to promote their labels.
Some of the preferred social media platforms that are used in the fashion industry are Instagram, Tumblr, WordPress, Facebook, twitter, YouTube and other sharing sites. Here are the platforms we intend leveraging on to promote and advertise Beci Lamb® Lingerie Line, Inc.;
- Place adverts on both print (newspapers and fashion magazines) and electronic (radio and TV) media platforms
- Sponsor relevant community programs like swimming competitions, beauty pageants and fashion shows
- Leverage on the internet and social media platforms like; Instagram, Tumblr, WordPress, Facebook, twitter, YouTube and other sharing sites.et al to promote our brand
- Attend local and intentional fashion expos
- Organize our own fashion show
- Promote our lingerie label on our own official websites and online fashion community
- Build relationship with celebrities especially in the entertainment industry and sports to endorse of lingerie label.
12. Our Pricing Strategy
Beci Lamb® Lingerie Line, Inc. will make sure that we design and manufacture a wide range of lingerie and swimsuits that will meet the financial capacity of different classes of females in the world. The prices for all our lingerie and swimsuits will be affordable and at the same time competitive with what is obtainable in the industry.
- Payment Options
The payment policy adopted by Beci Lamb® Lingerie Line, Inc. is all inclusive because we are quite aware that different customers prefer different payment options as it suits them but at the same time, we will ensure that we abide by the financial rules and regulation of the United States of America. Here are the payment options that Beci Lamb® Lingerie Line, Inc. will make available to her clients;
- Payment via bank transfer
- Payment with cash
- Payment via credit cards / Point of Sale Machines (POS Machines)
- Payment via online bank transfer
- Payment via check
- Payment via mobile money transfer
In view of the above, we have chosen banking platforms that will enable our client make payment for lingerie and swimsuits purchased without any stress on their part. Our bank account numbers will be made available on our website and promotional materials.
13. Startup Expenditure (Budget)
In setting up any business, the amount or cost will depend on the approach and scale you want to undertake. If you intend to go big by renting a place, then you would need a good amount of capital as you would need to ensure that your employees are well taken care of, and that your facility is conducive enough for workers to be creative and productive.
The machines and equipment that will be used are nearly the same cost everywhere, and any difference in prices would be minimal and can be overlooked. These are the key areas where we will spend our startup capital;
- The total fee for registering the business in the United States of America – $750.
- Legal expenses for obtaining licenses and permits as well as the accounting services (software, P.O.S machines and other software) – $3,300.
- Marketing promotion expenses for the grand opening of Beci Lamb® Lingerie Line, Inc. in the amount of $3,500 and as well as flyer printing (2,000 flyers at $0.04 per copy) for the total amount of $3,580.
- The total cost for hiring business consultant – $2,500.
- The total cost for the purchase of insurance (general liability, workers’ compensation and property casualty) coverage at a total premium – $2,400.
- The cost for payment of lease for manufacturing factory for 24 months – $150,000
- The cost for factory remodeling (construction of racks and shelves) – $20,000
- The amount required for the purchase of industrial sewing machines – $200,000
- Other start-up expenses including stationery ($500) and phone and utility deposits ($2,500).
- Operational cost for the first 3 months (salaries of employees, payments of bills et al) – $150,000
- The cost for start-up inventory (stocking with a wide range of fabrics (textiles), sewing accessories and other related merchandize) – $100,000
- The cost for store equipment (cash register, security, ventilation, signage) – $13,750
- The cost of purchase and installation of CCTVs – $5,000
- The cost for the purchase of furniture and gadgets (Computers, Printers, Telephone, TVs, Sound System, tables and chairs et al) – $4,000.
- The cost of launching a website – $600
- Miscellaneous – $5,000
We would need an estimate of $450,000 to successfully set up our lingerie line cum manufacturing factory in Olympia – Washington.
Generating Startup Capital for Beci Lamb® Lingerie Line, Inc.
Beci Lamb® Lingerie Line, Inc. is a family business that is owned and financed by Beci Lamb and his immediate family members. They do not intend to welcome any external business partner which is why she has decided to restrict the sourcing of the startup capital to 3 major sources.
- Generate part of the startup capital from personal savings
- Source for soft loans from family members and friends
- Apply for loan from the bank
N.B: We have been able to generate about $100,000 (Personal savings $80,000 and soft loan from family members $20,000) and we are at the final stages of obtaining a loan facility of $350,000 from our bank. All the papers and document have been signed and submitted, the loan has been approved and any moment from now our account will be credited with the amount.
14. Sustainability and Expansion Strategy
The future of a business lies in the number of loyal customers that they have, the capacity and competence of their employees, their investment strategy and business structure. If all of these factors are missing from a business, then it won’t be too long before the business close shop.
One of our major goals of starting Beci Lamb® Lingerie Line, Inc. is to build a business that will survive off its own cash flow without the need for injecting finance from external sources once the business is officially running.
We know that one of the ways of gaining approval and winning customers over is to retail our lingerie and swimsuits a little bit cheaper than what is obtainable in the market and we are well prepared to survive on lower profit margin for a while.
Beci Lamb® Lingerie Line, Inc. will make sure that the right foundation, structures and processes are put in place to ensure that our staff welfare are well taken of.
Our company’s corporate culture is designed to drive our business to greater heights and training and re – training of our workforce is at the top burner. We know that if that is put in place, we will be able to successfully hire and retain the best hands we can get in the industry; they will be more committed to help us build the business of our dreams.
- Business Name Availability Check: Completed
- Business Registration: Completed
- Opening of Corporate Bank Accounts: Completed
- Securing Point of Sales (POS) Machines: Completed
- Opening Mobile Money Accounts: Completed
- Opening Online Payment Platforms: Completed
- Application and Obtaining Tax Payer’s ID: In Progress
- Application for business license and permit: Completed
- Purchase of Insurance for the Business: Completed
- Leasing of facility and remodeling the shop: In Progress
- Conducting feasibility studies: Completed
- Generating capital from family members: Completed
- Applications for Loan from the bank: In Progress
- Writing of Business Plan: Completed
- Drafting of Employee’s Handbook: Completed
- Drafting of Contract Documents and other relevant Legal Documents: In Progress
- Design of The Company’s Logo: Completed
- Printing of Packaging and Promotional Materials: In Progress
- Recruitment of employees: In Progress
- Purchase of industrial sewing machines and sewing equipment: In Progress
- Purchase of the needed furniture, racks, shelves, computers, electronic appliances, office appliances and CCTV: In progress
- Creating Official Website for the Company: In Progress
- Creating Awareness for the business both online and around the community: In Progress
- Health and Safety and Fire Safety Arrangement (License): Secured
- Compilation of our list of sizes, colors and designs of lingerie and swimsuits that will be available in our production line: Completed
- Establishing business relationship with vendors – suppliers of textile (fabrics), sewing accessories and related merchandize: In Progress