Market Demand
Institution Affiliation
Date
Market Demand
To have a good understanding of the business, I will conduct an online search for the fashion market industry. Researching the fashion industry will give me a lot of information on how the industry is doing. For instance, I will know who my competitors will be and have a proper understanding of supply and demand. Understanding the market demand will be very important. This will help me to make informed decisions when it comes to the demand and supply of the store. I will know what I need to stock, depending on the market demand. This will help in making sure that I do not have any dead stock going to waste. I will also be able to do sales forecasting; this means that is the demand is high, the sales will also be high. The information will help me to come up with the best prices. In a case where the demand for the products is high, then I will be able to charge higher for the items (Bhardwaj and Fairhurst, 2010). If the demand is low, it will make sense to charge low so that the products can sell. After understanding the demand, I will be able to come up with the best marketing decision. I will know where I need to market the products and the best approach to use.
In the first year, I estimate to have a profit of about $51,000 depending on the market share percentage. I find this to be a reasonable amount for the first year and therefore making my business viable. This amount of money will be sufficient when it comes to running the business independently. For instance, the maintenance of the store and reimbursement of the staff. This income will also be critical when it comes to marketing the business. The income is likely to go up year after year. However, it will be crucial to find the best location for the business to be able to attract the right customers.
Reference
Bhardwaj, V., & Fairhurst, A. (2010). Fast fashion: response to changes in the fashion industry. The international review of retail, distribution, and consumer research, 20(1), 165-173.