V KidsFootwear
Presented by Group (3)
Ma Hnin Thiri Chaw (Roll no. 4)
Ma May Zin Htet (Roll no. 14)
Ma Mya Myin Kyi (Roll no. 25)
Ma May Myo Mon (Roll no. 36)
Ma May Thu Naing (Roll no. 45) { Leader }
Mg Thein Oo (Roll no. 53)
Ma Zin Hnin Phyu (Roll no. 57)
Ma Khine Hnin Hnin Thu (Roll no. 71)
Ma Yin Mar Naing Win (Roll no. 81)
Ma Ei Ei Phyo Zaw (Roll no. 90)
Executive Summary
Business History
Market Research
Marketing Decisions
Legal Decisions
Manufacturing & Operations
Personnel Strategies
Financial Decisions
Implementation Schedule
Content
Executive Summary
“V-kids” is a shoe manufacturer and exporter that will sell high quality kid’s shoes within five countries.
We will offer wide variety of colors and styles and high quality materials used in the manufacture.
Shoes size start from size 12 to size 23 and include half sides for example 12 ½.
Our business will cater to the needs of kids’ age from infant to 5 years.
Business History
Kids’ shoes manufacturer and exporter for
babies’ footwear with good quality and latest
trends.
Partnership {owned by 10 partners}
Manufacture using different fabrics such as
velvet, cotton, wool, etc.
Available in a wide range of gorgeous colors,
designs and prints, these shoes are designed
keeping in mind the most up-to-date fashion
trends.
Company Description
Name V-kids
Address Shwe Pyi Thar
Registered name ဗြီ��-ကစ္�(ဇ္�)
Contact number +951973166019
Fax +951217458
Domain name http://www.v-kids.shoes.com.mm/
Bank MICB, MFDP
Company Description
Business Type Exporting Manufacturer
Capital Investment $ 116,500
Total Annual Sales $ 48,250
No. of Total Staff 45 employees
Year Establishment 2012
Payment Terms L/C (or) T/T
Export Market China, India, South Korea, Thailand, Singapore
Company Logo
Slogan
“Think shoes, Choose V-kids!”
VisionTo be a distinguished kids footwear brand
known worldwide for the quality of products,
setting new trends and lifestyles.
MissionTo offer continuous value added products to
our customers.
To accomplish this, we focus on exceptional
design, innovation, quality, convenience and
interactive communication.
Production Process
Step (1)
• Lay out the fabrics, cut 2 pieces for each
pattern piece.
Step (2)
• Prepare the sole. Trace the shoe sole
pattern onto the appliqué adhesive paper
side and cut out. Iron the adhesive to the
wrong side of the inside sole piece.
Step (3)
• Cut and lay out the top, wrap pieces. Lay
them right sides together. Sew along the
top as shown.
Step (4)
• Place the right sides together at the center
back of the heel with center bottom of the
wrap as shown. Sew around until you reach
the end of one side of the top wrap.
Step (5)
• Start at the center back again and sew the
opposite direction, keeping close to the
edge. To finish the edges you can either use
an overcasting stitch, pinking shears or a
serge the edges.
Cotton Baby Shoes (0-6)months
Velvet sandals
Baby wool boots
Cotton shoes
What we offer?
Age - Infant to 5 years
Size – 12 to 23
Color - Various
Product Items - Boots, Shoes, Sandals
Fabrics – velvet, wool, cotton.
Product Characteristics
Light and Comfortable
Soft
Custom-made with a Perfect Fit
Fully Lined
Beautifully Crafted, High Quality, Constructed Correctly
Cost-Effective and Practical
Strength & Core Competencies
We ensure the excellence of our shoes are:
Material
Cut
Design conformation
Embroidery
Stitching
Stability
Finish
Color fastness
Trustworthy Raw Materials
Fabrics
• Velvet
• Cotton
• Wool
We source all materials from reputable
suppliers in China (mainland) and Taiwan who
are international approvals holders so that you
can be confident you're sourcing products that
are safe for babies and children to use.
Why trustworthy?
Benefits and Features
Innovative Design
With cartoon characters,
beep, light,
phosphorescent
Highlighted Features
Lovely designs and prints
Eye-catching colors
Long-lasting shoes
Comfortable to wear
Available in various sizes
Cartoon pattern
Seasonally design
creation
Services
For up to 5 years age groups, our variety of kids
footwear is offered in different sizes and is
tremendously comfortable to wear.
“Our Multilingual Staff Responds Quickly”
All members in foreign section are those who
know English and Chinese well. So, our customers
can contact us in English or Chinese today, and
we'll respond within 24 hours.
Customer Value Creation
A number of the factors that have made us the
ideal choice of our customers are:
Quality guaranteed goods
Customization
Capacity to accept mass orders
Well-timed delivery
Easy payment modes of Cash
Increasing competition, especially from
branded baby footwear corporations
High cost materials
Changing demands and catering to this
demand
Changing fashions and changing behavior of
demographics
Challenges
Target Market
Demographics
Target Customers: Age up to 5 years
Target Buyers: Parents, Family Members,
Retailers, and Wholesalers.
SWOT Analysis
- Product line with variations and innovative designs- Discounts are available for bundle buying- Expertise in getting new products to the market quickly- Expertise in providing good customer service- Online selling could be a competitive edge over similar rivals
- New in business as compare to rivals- Huge capital required to start business as credit is not easily available from supplier in start- Marketing expense in the start will be huge, to establish brand name required lot of advertising
Strengths Weaknesses
External Analysis
- 2015 Free Trade Policy- Policy encourage exporting - Developing economy in Myanmar- Animated movies increased the demands and popularity of attractive design for kids- High birth rate opportunity for kids foot wear section- Technology improvement support for easy exporting transaction
- Competition is high and big chains like Wall-Mart, Gap and Limited Incorporation introduced their kid’s shops in the city and penetrating in market- People are more conscious for pricing due to many competitions and going for discounts
Opportunities Threats
China
India
South Korea
Thailand
Singapore
Target Countries
Competition in Target Countries
Singaporean Rivals
• Products: baby sandals, children flogs, kids shoes, children boots and sandals.
• Products: baby shoes, sport shoes, evening dress shoes.
Shoes’ at Endless Co.,Ltd
Alibaba Shoes Factory
Chinese Rivals
Shenzhen Baby Happy Import and Export Co., Ltd
• Products: baby shoes, children shoes, kids
shoes, children boots and sandals and shoes
keychain.Jinjiang Jiaxing Shoes & Garments Factory
• Products: Kid Clogs, Flip flops, medical clog,
beach clog, baby sandals, slippers, lady
slipper, shoes, etc.
Indian Rivals
R.N. Overseas Co., Ltd.
• Products: Children's Sandals, Children's
Slippers, and Children's Shoes.
Global Technology Fashion Co., Ltd.
• Products: baby shoes, evening dress shoes.
South Korean Rivals
Tobias Mayer Online Shoe Store
• Products: Shoes, Sandals and all other clogs
and boots by Birkenstock online.
Silla International Co., Ltd.
• Products: Shoe, Boots, Canvas Shoe, Sandal,
Slipper.
Thailand Rivals
Thai Interplus Trading Co., Ltd.
• Products: Children Garment, Children's &
Baby's Shoes, Skin Care, Costume & Fashion
Jewelry.Psk Industries Ltd.
• Products: Children's & baby's shoes
Marketing Decisions
Distribution Strategies- Direct Exporting
- Logistic Alliances
Marketing Strategies
- Locally by Marketing Department
- Internationally by Foreign Distribution Group
Online Marketing
Price Range
Myanmar Kyats 5000 to 8000
China Yuan 127 to 158
India Rupee 986 to 1233
South Korea Won 23000 to 28000
Singapore S$ 24 to 30
Thailand Baht 615 to 770
Myanmar (500*5,000Kyats =US$ 6.5)
China (1000*12,000Kyats =US$15)
India (1000*12,000Kyats =US$15)
South Korea (300*12,000Kyats =US$15)
Thailand (300*12,000Kyats =US$15)
Singapore (400*12,000Kyats =US$15)
Pricing Strategy
Penetration Pricing will be the pricing strategy
V Kids
Promotion Strategy
Advertising - Baby TV, Billboard
Sales Promotion - Seasonal Discounts
Sponsor - Kids show and Activities, School
events
Place – hospitals, theme parks, schools,
shopping malls
Product Strategy
Local
Supermarkets
Departmental Stores
Specialty Stores
International
Supermarkets
Shopping Malls
Specialty Stores
Legal Decisions
Export Procedures
Apply to Directorate of Trade for registration as
exporter
Partnership firm
Terms of registration = 3yrs
Issued by the licensing authorities concerned
The validity of export license is 6 months from
the date of issue, and can be extended for three
months period at a time.
Export Procedures (continued)
No export license fee
Commercial tax = 2%
Income tax = 30%
LC = opened by MICB
Shipment on F.O.B basis under Myanma Port
Authority
Shipping bills, other shipping documents,
Country of Origin and customs pass, must be
presented to the Bank for transaction.
Custom Clearance (Export Declaration)
Export license / permit
Invoice
Packing list
Sales Contract
Shipping Instruction
Payment advice referring Inward Telegraphic Transfer
Private No./Inward Telegraphic Transfer Government No.
Sample of goods
Manufacturing and Operations
Location of production facilities for exports
• State-of-art Machines
• Sewing Machines
• High Quality Materials
H/O, Factory location – Shwe Pyi Thar
Township
Personnel Strategies
Organization Chart
BOD
Legal Consultant GM
Marketing Manager
Assistant
Admin And HR
Manager
Assistant
Production Manager
Assistant
Finance Manager
Assistant
Foreign Relation Manager
Assistant
Production
Operation
Procurement
Cutting
Embroidery
Sewing
Gluing
Finishing
Designing
Quality Control
Step-by-step quality control system for
Raw materials
Fitting
Stability
Color fastness
If one defect product has seen, it will reject to
export.
Training and Hiring
Well-trained program for staff to produce
quality products and to reduce defects.
Hiring temporary workers if the orders are
unexpectedly rising.
Human Resource
Designer with 5 years of international
experience .
Our top priority is designing safe products with
cute designs that babies and children love.
Over 30 percent of our staff members are
designers, and most of them have at least 5
years of experience in this field.
Financial Decisions
Start-up Expense Summary
Profit and Loss Statement
Cash Flow and Balance sheet
Break Even Point
Budgetary for V KidsKyats
Owners Equity (7,000,000Kyats * 10 shareholders) 70,000,000
15% Bank Loan 20,000,000
Capital investment 90,000,000
Required Money for 1st Month of Operation
Fixed Cost (Capital investment) 44,600,000
Expenses for 1st Month of Operation 27,025,000
Required Money for 1st Month of Operation 71,624,000
Reserve Capital in hand 18,376,000
*** Monthly Inventory (on hand) = 1000 units
Monthly Budgeted
Trading, Profit & Loss A/C
for V Kids for First Month
of Operation
V Kids Finance (edi G3).xlsx
(In Kyats)
Revenue 38,500,000
Less: Cost of Goods sold 14,015,000
Gross Profit 24,485,000
Less: Expenses (13,210,000)
Earning Before Interest & Tax 11,275,000
Less: Bank Interest Charges(20,000,000Kyats*15%/12months) (250,000)
Earning Before Tax 11,025,000
Income Tax (11,025,000Kyats*30%) 3,307,500
Commercial Tax (38,500,000Kyats*2%) 770,000 (4,077,500)
Net Profit 6,947,500
Retained Earning (2,500,000)
Dividend Paid 4,447,500
Dividend Paid to (10) Shareholders 444,750
Break Even Point
Expected Annual Sales & Profit
(Next 3 Years)
(In Kyats) Year (1) Year (2) Year (3)
Gross Profit 315,820,000 317,620,000 365,940,000
(-) Production Cost 146,180,000 144,380,000 158,460,000
(-) Administrative Cost 20,040,000 20,040,000 23,160,000(-) Sales & Distribution Cost 138,489,000 140,489,000 157,120,000
Earning Before Interest & Tax 157,291,000 157,091,000 185,660,000
Less: Bank Interest Charges(20,000,000Kyats*15%/12months)
(30,000,000) (30,000,000) (30,000,000)
Earning Before Tax 127,291,000 127,091,000 155,660,000
Income Tax (11,025,000Kyats*30%) (38,187,300) (38,127,300) (46,698,000)
Commercial Tax (38,500,000Kyats*2%) (9,240,000) (9,240,000) (10,488,000)
Net Profit 79,863,700 79,723,700 98,474,000
Implementation ScheduleYear/ Tasks 2012 2013
Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4
Select Locations
Develop Stores in LocalStart Basic Kids shoes availablefor Selling
Start Online Selling
Expand ProductLine
Start Promotion activitiesStart Planning ForNew Location
Thank You For Your Attention!