Eve. by Sundas is a fashion accessories company, that provides the choicest of products to the female Pakistani market. The product range includes handbags, shoes and apparel.
The businesses currently prevailing in the same market are either selling low quality, unesthetic items or are too expensive to afford for some. And by being expensive, it still does not mean that they are any better in aesthetics. I propose to set up a business that knows what the next thing in fashion is, recognizes that it will be what the people demand even though the people don’t know it and provide it. It will basically be a trend setter that does not follow fashion, but fashion follows it. All of this can be made possible due to my uncanny ability in judging what should be the next IN thing the next season. I am a Fashion Design graduate working on my Business degree at the moment. My education background in both Fashion and Business will definitely make my business processes more refined and will set my business apart from all those who are just working with no backhand knowledge.
The business that I am proposing is currently functional at the moment but on a very small-scale with no investment. My business has an online presence through a facebook page with about 2000 fans[1]. I search the global market for the best designs and best prices. The pictures are then uploaded on my page for the viewers to see. Once an order is placed for a certain product, the customer is asked to make advance payment. After which that product is imported from its point of origin be it China, UK, Dubai etc. Once the product reaches me, it is sent to the customer through courier. My business model has many flaws:
1) I am selling products designed/made by others. The basic aim is to set up my own manufacturing unit to design and produce my own merchandise
2) The lead time is too long. It takes a product 30 days to reach me after an order is placed. This annoys the customer and also is a reason for many cancelled orders or orders not placed
3) The payment method is Telenor Easy Paisa or bank transfer, which is sometimes difficult for the customers to do
4) There is always a chance of the merchandise getting lost on its way to Pakistan and has happened a few times too
5) Customers always like to see and feel the product before purchasing it. This is not possible as I don’t keep inventory and import the product only when an order is placed.
6) Because at one time I import, one or maximum 2 to 3 products, I can’t take advantage of bulk order or economies of scale
7) The international sellers demand payment mostly through paypal. I don’t have a paypal account as the facility is not available in Pakistan and have to use a friend’s account to make payments. It creates further delays and inconvenience
8) My company at the moment is unregistered.
With the new business model, all of these problems can be solved. With the funding, I can bring in an inventory of averaging what I already sell in a month, every month. By doing so, the lead time can be reduced from 30 days to a mere 3 days. With that I will also be taking advantage of economies of scale. Further, a service called ‘cash on delivery’ can be introduced which allows the customers to pay in cash when the item reaches their doorstep. I can also rent a stall in one of the multi-brand boutiques like L’atelier in F-8/3 Islamabad, where the customers can actually see the product and buy on the spot. In the long run, of course I would like to own my own shop with a manufacturing unit to make my own products. Some of the problems I still may face with my new business model are inventory risk, high working capital requirements, large start-up capital requirements, significant dependencies on partnerships etc.
Sundas Liaqat 