Boutique Proposal

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Text of Boutique Proposal







September 6, 2003

Mr. Sajjad SirajInstitute Of Business ManagementKorangi Creek, Karachi 75190Pakistan

Dear Sir:The attached report authorized by you in the beginning of the term of summer 2002 of MBA (Exec.) to meet the requirement of the course, describes the complete feasibility report about the BoutiqueThe research on this report is mainly done by visiting different top ranking boutique in the market, people working in the fashion industry, a lot more information were gathered form the internet, and then summarized in the form of this report.

I have tried my level best to meet your level of requirement. I would be pleased to discuss this report and its conclusions with you at your request. I thank you for your guidance to prepare this comprehensive report.

Yours sincerely,Razia Nasruddin



Completing any report requires a lot of time, energy and effort. However, we must acknowledge the sincerity and help that MISS NADIA MISTRY, AND MR ADNAN KAISAR AND MISS NADIA DR AHMAD extended to us, which has brought

us to this wonderfully complied project. Not to forget the efforts of our teacher MR SAJJAD SIRAJ who helped me throughout the project.



Letter of Transmittal Acknowledgement Project Brief

Key Assumptions

Depreciation and Amortization Schedule Income Statement

Balance Sheet Cash Flow




Clothing is a beautiful visual demonstration of the social and emotional needs of people wearing it. It also portrays in a clearly understood visual manner, what people of different cultures and styles want socially. Fashion, through times, has gone through so many rapid changes and bizarre extremes that it has examples of nearly every kind of clothing function. However, in a boutique business, the specifications and descriptions of the designs and clothes are so general that they can fit more than one costume, which actually are quite different in nature from each other and this is solely dependent on the taste of the people. The range of Pakistani dresses is remarkably wide, according to the vast cultures, geographical differences, purchasing capacities, influence of the western culture, and bewildering diversities of the ethnic groups. One has, therefore, to sift and isolate, and then relate and bring together, the ideas for creating various designs, which can fit in the context of the fashion in vogue and the culture in practice.


In reference to Pakistan, the Boutique business is quite in vogue but has yet to be formalized. The market of this enterprise is quite scattered and unorganized. There are a few major players in Boutique business and these entrepreneurs have also taken an initiative based on their caprice and experience in the field of fashion design. However, there is a massive potential in this field, if one has the ability to design and market his/her products through introducing innovative designs both in stitching as well as the fabric sector. Furthermore, there is massive export potential in this sector, as the demand of Pakistani dresses, especially in countries like UAE, USA, and UK, is massive due to a high number of Pakistani expatriates who have settled in these countries. The Boutique business can also be expanded into a more profitable venture by providing stitching facilities to other boutiques, which do not own a stitching unit or are lacking this facility.


The Boutique business capacity is greatly dependent on the market size and the number of potential clientele one can attract. Furthermore, the women fashion wear garments will be designed through a contracted designer and then stitched through in-house stitching unit. On average, a designer can supply forty designs per month from which nearly twenty designs are selected on average. Approximately, total capacity of the defined unit with 5 stitching machines (basis on 8-10 hours shift) will be about 500 1 dresses. The breakup of the total number of dresses will be as follows:

Total designs selected by designer20

Number of dresses in each design5

Number of dresses in each size5

Total Number of dresses500

This production and sales capacity is estimated to be economically viable and justifies the capital as well as operational costs of the project.


Currently, the boutique industry is relatively unorganized and is scattered in and around the posh areas of the metropolitan cities of Pakistan i.e. Lahore, Islamabad, Karachi, Peshawar, and Quetta. The boutiques in Peshawar and Quetta, mostly sell the traditional dresses having indigenous/local designs, whereas the ones in Lahore, Islamabad, and Karachi deal in fashion wear greatly influenced by the west and the local trends in vogue. As such, there is no exact detail available of the number of boutiques; especially in women wear, because there is no association or link between these enterprises. The reason being the business rivalries and the competitive structure of this industry. However, one can name a few major players in the business such as Indifference, Generation, Parahan, Nee Punhal, Bossini, Kapre Waghera, Maria B, Ninas, and some individual designer players like Beegees, Nilofar Shahid, Nadia Mistri, Amir Adnan, Shayan Malik, and Sahar Saigol.



The marketing of boutique follows the conventional marketing pattern, which is dependent on selection of venue of the outlet/s and the product mix (designs and sizes), as well as the promotional strategy. Furthermore, the boutique owner has to marketing techniques like:

Usage of print media i.e. printing of posters and pamphlets as well as displaying it and distributing it at proper places

Advertisement in print media i.e. newspapers and fashion magazines, etc. Usage of electronic media i.e. projection of the boutique in fashion programs, advertisement on television, and provision of dresses to various television plays and films.Event arrangement like fashion shows and photo-shoots.Usage of e-commerce i.e. launching of website and advertising on web. Moreover, in order to keep abreast with the emerging trends and clienttastes, surveys regarding customer satisfaction/needs should be a regular feature of this project. As this project of Boutique deals in designer women wear, therefore the product mix will comprise of different styles of the female dresses in different sizes. Whereas, the styles will be Shalwar Kameez, Q-lots, Pajama Kameez, Frocks, Kurta, Peeshwaz, Party dresses, Casual Dresses and other prevalent dresses based on the market trends. The average sale price per dress is assumed to be Rs.2100.Apart from this, there is a vast export potential in this industry, which is evident from the export figures of 1998-99 (available from the data of Federal Bureau of Statistics-FBS)

SITC 2 CodeProduct Classification2000 2001

Value (Rs. 000)

8422102Suit women cotton not1415124


8422103Suit women synthetic not501917


8422104Suit women (other textile46861

material not knitted)

8422202Suit women (other textile2107

materialnot knitted)





made fiber not knitted


textile not knitted


dresses of cotton


8427006Baluchi Kameez of Silk27


(Source: Federal Bureau of Statistics)

Even these figures represent the formal export patterns of women dresses from Pakistan and are not representative of the export of these dresses taking place on informal level. Most of the women dresses prepared in Pakistan are exported to USA, UK, Germany, UAE, Saudi Arabia, France, Belgium, Netherlands, and South Africa. The end users of these dresses in foreign countries are mostly Pakistani and Indian women who have immigrated to these countries.


The raw material required for such sort of projects, would be as follows: Fabric: The fabric, which is the basic raw material requirement for a boutique

and a major component of the cost, can be obtained from wholesale markets or from markets specializing in designer cloth at Faisalabad, Karachi, and Lahore.Accessories: Accessories such as buttons, laces, zippers, elastics, threads, needles, embroidery threads, glasses, etc. will be procured from the local market at competitive rates.Labels, tags and packaging: Labels and tags can be obtained on order, as these serve as an identity for the boutique and are useful for promotion.


The process for converting fabric in designer wear garments follows thebelowmentioned sequence:

Design: The initial process starts from the designing phase. Various patterns of clothing and the fashions in vogue, which also relate to the tastes of the concerned clientele, are designed. The contracted designer as does thishe/she will provide the basic designs of which the fabric will be converted into the designer wear garment. On average, a designer is supposed to provide 40 designs per month or 100-120 designs per season i.e. three months. From these designs, approximately 50% of the designs are selected for further development of clothes.Pattern Making/Cutting: Based on the designs selected, patter