The handbag and accessory business in the United States has maintained steady development, but the present slowdown in growth is worrisome. The handbag market is very competitive, with a number of major fashion brands present (Nugraha et al., 2021). As a pioneer of a novel and innovative product, Baggy for Short prides itself on being the first of its kind. The name of the firm, which sells unique handbags and accessories, is reflected in this product. The bag’s strap doubles as a belt, and the two goods are designed to work together. The company demonstrates how a fashion trend may develop into not just sophisticated designs but also in terms of purpose and usefulness. Instead of buying bags and belts individually, the final result might be a combination of two or more different goods.
Our team came up with a brilliant answer to a recurring issue, which is that if the ladies do locate a comparable bag, it costs a lot more than Baggy bags. Many individuals would at least take a peek at these bags if they were for sale at school or the mall. Stylish and cheap, these items would appeal to a wide range of potential buyers (Nugraha et al., 2021). Since we are new to industry, Baggy Handbags will put in more effort than others. In order for our goods to be better than they currently are, we need to slow down, examine our faults and rectify them, and not know the routes.
Business Structure
There will be a public limited corporation for Baggy Handbags. In order for a business to succeed, it must have a strong foundation. Everything from suppliers to manufacturing to key employees and customer service will run smoothly as a result, and not only will the company’s reputation improve but also its relationships with important clients will benefit as a result. It all begins with good leadership, which sets the stage for cooperation, and culminates in success (Reed et al., 2015). The company’s ability to communicate internally, externally, and with consumers is critical to its survival in the marketplace.
Product
A key aspect of our business is our product. Because it’s a first mover approach, a new kind of product will quickly gain traction in the market. In order for a firm to achieve success, it must first get a foothold in the market (Reed et al., 2015). Once we’ve reached this point, we’ll use tactics like membership programs to keep and attract new clients.
Price
Depending on our own views and the comments of our peers, we determined that the repurposed purses would be sold for $7 to $10 each. Several of the kids and educators who took the time to answer our questions stated they would purchase them if they saw them in a store. Our items are far less expensive than those of our counterparts. We are able to do this since we are using “gently worn” long sleeve jerseys rather than brand new ones.
Place
Our product will be sold and distributed primarily by means of two distinct channels in the state of Texas. We’ll start by offering them for sale on the internet. This, we believe, will aid in the public awareness of our goods. Afterwards, we plan to begin selling it during our lunch break. We believe that encouraging our peers to purchase it will help us get the word out. After that, we’ll offer them for sale at each of our congregations. The Coppell Texas will be our first stop if we get in.
In order to express our thanks to our valued clients and to further improve customer happiness, we will also deliver the best possible customer service. Consumption and disposable income have both risen in recent years, indicating that the economy is beginning to recover from the crisis. An uptick in consumer discretionary spending is likely to fuel sector growth in coming years as the United States economy recovers. According to Almaghrabi & Ahmed, (2021) In 2020, the handbags Stores industry in the United States of America is expected to earn more than USD 49.63 billion in revenue.
Baggy Handbags will have 2 sales managers whose duties will include:
- Carrying out sales within Texas and its neighboring areas. Managing external data and all internal information sources coordination’s to retain and acquire new consumers for the firm.
- Modelling and analyzing transactional data produced by customers’ purchases.
- Finding, analyzing, and contacting potential new business connections and prospects, among other things.
- Finding Identifying development opportunities, follow up on leads and connections, taking role in the project design and financing, ensuring entire project are all duties that come under this person specification.
Personal Liability, Tax & IRS Information and Formation
Limited liability businesses are used by Baggy Handbags. This approach provides us with the greatest level of security and the lowest corporation tax rate. “An effort to blend the best elements of a partnership with the best features of a corporation” is how Fundamentals of Business Law describes Limited Liability Companies (Reed et al., 2015). As a result, LLC laws and regulations tend to highlight a more streamlined formation process, lower tax return remittances, flow-through income tax whereby representatives of a company are levied on their income while the firm isn’t levied, the continuity of a company (a associate’s departure wont disintegrate the company), and liabilities, whereby company is responsible for any arrears and the its shareholders don’t.
As an LLC, Baggy Handbags will be able to do business. Broadly speaking, LLCs do not have to pay income tax to either the federal or state governments. On the other hand, a capital stock tax must be paid by all Pennsylvanian LLCs. Individual LLC members must also pay taxes on the profits they get as a result of their membership in the business.
As with the majority of LLCs, we’ll be taxed using the pass-through approach. This implies that the owners of Baggy are responsible for paying their individual taxes, rather than the firm as a whole. In most cases, the individual tax rate is lower than the corporation tax rate; however, this is not always the case (Reed et al., 2015). An owner’s summary is included in the LLC’s tax return to establish that the owners will be responsible for paying the tax.
As a competitor to already established fashion lines, we want to stand out from the crowd via an array of marketing maneuvers, uniqueness, and a well-known brand name (Nugraha et al., 2021). Baggy handbags aims at creating a high-end fashion brand that is sophisticated, innovative, adaptable, and pricey. Sales promotions of all kinds are part of our comprehensive promotional campaign.
Finances and Budget
We at Baggy Handbags have set a goal of actively developing and marketing a broad line of products to the general public. Using our marketing methods, exclusivity, and brand recognition, we seek to sell our fashion line as an alternative to current fashion lines. With our knowledge in the garment sector, we hope to expand our product line and conquer any challenges that may arise. In terms of financial projections and costs, the following is provided for Baggy Handbags:
- It costs $750 to incorporate the company.
- $10000 is the approximate cost of obtaining the necessary insurance, licenses, and permissions required by law.
- In a commercial district, the price of office space for half an year (including the cost of re-construction) is $45,000.
- Furnishings, telephones, file cabinets, security devices, and other technical equipment are all included in the $5,000 budget for setting up the office.
- It costs $10, 000 to purchase all of the necessary software programs (such as CRM software, bookkeeping applications, and payroll system, for example).
- Our official website’s launching will cost $600.
- A six-month salary for at least three employees and utility costs totals $30,000.
- Costs Not Included in the Budget – $2,000 Additional Expenditure
- The amount of money we have in our inventory fund Is $1,000,000
- Miscellaneous funds: $1000
Growth and Adaptability
Segmentation
Since our items come under the category of cosmetics and are geared at those who identify as female or GLBT (Gay, Lesbian, Bisexual, and Transgender), marketers divided the market by gender. With regard to age, marketing departments divided the market into three distinct generations—Generation X—whose members are mostly professional women who make a good living—Millennials—who represent a rapidly expanding market—and Baby Boomers—who represent a lucrative demographic with high income levels—into three distinct age groups (Kasuma et al., 2016). Youth, Singles, Married with Children, and Married without Children are all segments of the Family Cycle that marketers use to segment the market for their products (Kasuma et al., 2016). Advertisers categorized the goods by employment, enabling only those who could afford it to acquire it, such as businesswomen, office employees, professionals, learners, and mothers.
Promotion
Effective communication and, of course, consumers is a key component of their marketing strategy. Also, to rule the web and reference sites by covering the search phrases with our business analysis and marketing research to entice prospective consumers. We’ll use coupons, web advertising, co-marketing, TV commercials, and advertising to promote our items during special promotional events. As a result, they’ll be able to provide clients with more than simply sales pitches.
Strengths
- Unique and expanding, our company location is ideal for us.
- Within a 45-minute drive, Baggy Handbags has no local competitors.
- Since all of our suppliers have established themselves as providers of high-quality goods and specialized services, we are confident in their ability to handle projects of any size. Competitors may not accept our proposal.
Weaknesses
- The downturn in the economy has caused a financial slowdown in the sector during the last three years.
- Our prototype webpage may not be able to compete with other rival websites in terms of functionality and complexity.
- Efforts to raise awareness have been hampered. A retail store’s operating hours are restricted (Monday to Friday 8:00 a.m. to 7:00 p.m.)
Opportunities
- Fresh graduates, artists and other celebrities are moving to our Baggy Handbags business location, and shopping is booming. Those who want to live in the town’s city center are drawn to it by this dynamic.
- Also keep in mind that some young adults are drawn to inner-ring suburbs like Cinco Ranch, Sugarland and Coppell, because they want to live closer to the city. At Baggy Handbags, we see this as a significant opportunity.
Threats
- Long-term economic crisis that hinders the recovery of local firms and reduces disposable income Global technical advancements that might make current retail equipment obsolete.
- In the surrounding vicinity, a new rival has sprung up.
Market Analysis
Competitors
Although we have a number of rivals, they can’t match our pricing. Almost majority of these rivals are based in or around the Northwest Arkansas Mall. Both Wal-Mart and Target also sell messenger bags that are of poor quality. In an effort to save money, a number of people have attempted to make their own bags (Kasuma et al., 2016). Bags are available for purchase on the internet, but shipping and handling add to the price.
Cultural
The researchers analyzed the tastes of the local market for accessories, notably bags and belts, as the widest contextual driver of consumer attributes. Despite the fact that both are already seen as necessities, most women still only allocate a small portion of their budgets to them. Filipinos are renowned for their preference for items that provide several benefits at a reasonable price, and the combination of these two products is guaranteed to draw notice in the local market.
Consumer Behavior
Prior to making a purchase, a consumer must go through many steps. The product is classified as a Limited-problem-solving procedure, one of three types. When a customer is presented with a brand they have never heard of before, it suggests they have already established a list of conditions for making a purchase (Fortune Business Insights, 2021). When it comes to encouraging customers to test and buy a product from a new and unknown brand, the firm uses marketing techniques to reinforce and urge them to make the purchase.
Growth Strategies
Organic growth and self-funding are the ultimate goals after the first round of funding. Sales will continue to rise as a result of aggressive marketing campaigns and a steady expansion of product ranges. For a period of time, all of the company’s profits will go into expanding the business, investing in new products, expanding marketing efforts, and acquiring patents. Baggy Handbags intends to grow beyond home production after analyzing demand and finding potential partners. Hiring textile manufacturers in the West Texas and establishing a stable corporate basis will be part of the expansion. To maintain uninterrupted production, management and administrative personnel will be increased.
References
Almaghrabi, S. A., & Ahmed, M. (2021). The impact of self-concept and brand personality on brand choice–exploring the handbag market in jeddah. PalArch’s Journal of Archaeology of Egypt/Egyptology, 18(16), 299-305.
Fortune Business Insights. (2021). Handbag market size, share & growth | Industry analysis [2028]. Retrieved from https://www.fortunebusinessinsights.com/handbag-market-103860
Kasuma, Jati & Yacob, Yusman & Jamadin, Nurnazirah & Shafiee, Ahmad & Sulaiman, Shahrin. (2016). Determinants of purchasing luxury handbags among the generation Y. Journal of Scientific Research and Development.
Nugraha, Nugraha & Novita, Dina & Djamlaludin, Djamlaludin & Satriani, Arba’iyah. (2021). Design of Bag Product’s Marketing Strategy by Implementing QFD Method and SWOT Analysis. MIMBAR : Jurnal Sosial dan Pembangunan. 37. 10.29313/mimbar.v37i1.7011.
Reed, O. L., Cahoy, D., Shedd, P., Magid, J. M., & Pagnattaro, M. (2015). The legal and regulatory environment of business. McGraw-Hill Education.
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