Realizing the business potential in this fertile market, TIEM GUOC brand launched a store in Ho Chi Minh City with the goal of expanding and developing more branches spread across the co
COMPANY OVERVIEW
Mission and vision statement
Our commitment is to create quality, comfortable, fashionable and reasonably priced products, from elegant, noble to youthful designs, so that every Vietnamese woman is satisfied when using it product use
Creating products that meet high quality standards, TIEM GUOC will become a close companion contributing to the success, happiness and prosperity of all Vietnamese women.
Core product and service offerings
3.1 Describe your product or service and the problem it is solving
Shoes are accessories that play an extremely important role in women's fashion because they contribute to their femininity and nobility At the same time, it adorns the outfit, making the wearer stand out more High heels are one of the accessories that women are particularly fond of
In contrast to sports shoes, which are more concerned with comfort and practicality for everyday wear, high heels are a little pickier because some people are afraid of the sensation of wearing a pair of shoes that are too high and difficult to wear in commuting However, when wearing high heels, women gain significant height, not to mention increased femininity Furthermore, high heels are especially suitable for polite events, while some types of low-heel shoes can also be used for everyday walking
In recent years, the Vietnamese market has become very differentiated, with two main groups of high-heeled shoes, one of which is a group of low-priced high-heeled shoes with no brand, imported from Chinese merchants and purchased through retail stores Chinese floors, such as Tao Bao, frequently have very low prices with a variety of designs, but the downside is that the quality is very poor The rest of the group are high- end high-heeled shoes from famous fashion brands around the world, such as Gucci, Chanel, Christian Louboutin, and so on, with trendy designs, sophisticated finishing quality, but very high prices, which only a few people can afford
Recognizing this, we are determined to launch a mid-range high-heeled shoe brand to meet the needs of those seeking high-heeled shoes with beautiful design, good quality, and a reasonable price in comparison to the majority of Vietnamese people's income Furthermore, the brand emphasizes culture in its products; all products will be made directly in Vietnam and will have names and designs that are somewhat related to our country
In addition to selling shoes, the store will offer a service in which customers can ask employees to repair shoes they have purchased Editing can include adding more accessories (bows, stones, rivets, etc ), drawing more textures, changing the height of the base, and so on
The shop will also offer a 10-day return policy if the product is found to be defective, a 1-year warranty on all products, free sole stickers, and free retouching for shoes with peeling paint over time The above services will be charged for a one-year period
Accompanied service: In addition to selling shoes, the store will offer a service in which customers can ask employees to repair shoes they have purchased Editing can include adding more accessories (bows, stones, rivets, etc ), drawing more textures, changing the height of the base, and so on
The shop will also offer a 10-day return policy if the product is found to be defective, a 1-year warranty on all products, free sole stickers, and free retouching for shoes with peeling paint over time The above services will be charged for a one-year period
Cleaning and restoration of leather shoes services
The store will take care of cleaning and polishing so that the s retain their original color We also get restoration like gluing so re-sewing soles, restoring skin color, and replacing linings damaged shoes
In addition to receiving custom high heels, the shop accep other types of leather shoes if customers have a demand Cus can personalize their purchases by drawing, attaching rivets, a more accessories, and so on
Table 1: List of alternative services
3.3 Discuss how you will differentiate yourself from competitors
The differences between TIEM GUOC and other competitors such as Juno, Vascara or Trinnie are reflected in a number of factors:
• Price: Although the price of TIEM GUOC products is not too low but when compared with the products of the same type of other enterprises such as Trinnie, TIEM GUOC is confident that customers will buy quality products at a good price Or when compared to Vascara or Juno, we can show guests that at the same price or just a little higher but their choice will be more
• Quality: With the criteria set from the beginning, TIEM GUOC ensures to bring products with high-end materials, quality accessories, new designs and the number of products produced each step should be thoroughly inspected
• New product release time: Each quarter we will have 10 new designs equivalent to 1 year We will launch 40 designs and this number is three times more than TIEM GUOC’s competitors
• Service: Each product of TIEM GUOC, if the customer needs to edit a few small details, we will support the customer because we have the production & design room right in the store TIEM GUOC is confident with this service because currently on the market, no store receives their ready-made shoe editing In addition, in the future we may add additional individual shoe design services on request for each customer That will make TIEM GUOC completely different from its current competitors
TIEM GUOC’s unique value proposition
TIEM GUOC high heels products are designed and handcrafted by the shop's own workers under the direct supervision of the designer Every pair of shoes you receive comes with their enthusiasm and commitment me about product quality, sophistication and most importantly, your satisfaction
As a brand of Vietnam, the materials of the product are prioritized to be imported in the country and combined with traditional craft villages in Vietnam This is an attractive
13 point for TIEM GUOC's customers because Vietnamese people are very fond of "made in Vietnam" products With Vietnamese origin, customers will be somewhat more assured when using the product
Explain the nature of the industry
According to a Vietnam report, the Vietnamese footwear market is in a growth phase and is becoming one of the largest markets in SoutheastAsia
Figure 4: Revenue structure of Vietnamese fashion products 2020
Figure 5 : Turnover in Vietnam fashion market ( 2017 -2021)
However, the high heel shoe market in Vietnam is a growing industry in recent years However, compared to other developed countries, this market in Vietnam is still not fully developed and does not have many big brands
Famous high heel shoe brands in the world such as Jimmy Choo, Christian Louboutin, Gucci, Valentino, are being loved and used by many Vietnamese consumers In addition, there are also many high-quality Vietnamese high-heeled shoes brands that are trusted and chosen by customers However, this market still has many opportunities for emerging brands to penetrate and develop, especially TIEM GUOC with high- heeled shoes
In recent years, the Vietnamese fashion market has recorded the landing of fashion brands in the world and received many positive business results It is the ability to allow customers to access the latest designs at affordable prices that has created the attraction of "fast fashion" with Vietnamese consumers However, the short life cycle that causes these “fast fashion” items to be thrown away early has had a negative impact on the environment, people and resources
Meanwhile, at TIEM GUOC adopting sustainable fashion – supplying, manufacturing and consuming fashion products designed in a way that ensures environmental, social and economic sustainability – is forecast to be an inevitable trend in the context that the income of Vietnamese people is gradually improving and the sense of responsibility of young people towards fashion products and the environment is increasing
• The popularity of influencer marketing
Influencer marketing has surged in popularity as fashion brands leverage platforms like Facebook, YouTube, Instagram, and TikTok to showcase their products through key opinion leaders (KOLs) KOLs have become instrumental in introducing new brands and designs to audiences They also serve as the faces of brands in lookbooks and promotional videos In line with this trend, TIEM GUOC has partnered with influential figures such as GonPink and Giai Y to promote its products.
Along with the growth of e-commerce, video content is becoming more and more attractive and is expected to dominate social media According to research by technology company Cisco, by 2022, about 82% of online content will be in the form of video Besides, livestream is also showing its usefulness in promoting sales for fashion brands Many large- ale shopping events are held on livestream and this is sc becoming more and more common
• Distribution on e-commerce channels is increasingly popular
Recently, consumers have turned to online shopping channels more TIEM GUOC has expanded online sales on e-commerce sites such as Lazada, Shoppe, Tiktok
Many external factors can affect the Vietnamese high-heeled shoe market and greatly affect the business of TIEM GUOC, from politics to legal regulations, the economy, etc This can be seen more clearly in the PESTLE analysis in section 4.4 because the PESTLE Analysis is a framework for analyzing the key factors influencing a new business or industry from the outside
In summary, through the above factors, it can be seen that the high heel shoe market is also influenced by fashion trends and consumer needs Shoe manufacturers and brands are focusing on developing more beautiful, comfortable and safe high heels to attract customers and increase sales In order to meet the reduction of the impact of the shoe industry on the environment, more attention is being paid, especially in the use of environmentally friendly materials and product recycling TIEM GUOC is also looking to optimize production and transportation processes to minimize emissions and energy consumption.
COMPETITIVE AND MARKET ANALYSIS
Market segmentation
Targeted customer Identifying characteristics Age Income
- A woman who is perfectionist and meticulous in her work
- Confident and always wants to attract all eyes
- Being judged by the people around him as having a good taste in clothes and bei fashionable
- Enjoy discovering the ideal shoes to
- Very important in terms of form and layout
- Discover the styles of dress in many parts of the world
- Likes to shop and especially intereste in limited edition items
2.2 Describe the competition and How TIEM GUOC will gain market share
The global high-heel shoe market is projected to grow exponentially, reaching a value of US$30 billion by 2022 This growth is attributed to the rising number of affluent individuals worldwide, leading to increased purchasing power Additionally, the increasing number of women joining the workforce in developed nations, such as Japan, the UK, and France, is driving market expansion These factors are expected to fuel sustained growth in the high-heel footwear market in the coming years.
In 2022, worldwide sales of women's footwear will be mainly contributed by high heels
The high heels market contributes a higher revenue share than men's shoes Changing lifestyles, growing interest in fashion and celebrity endorsements have a significant impact on the global footwear market Recent market trends for high heels are sustainable footwear and sports trends Popular motifs in the past including – minimalist style high heels, feather high heels, etc will continue to be the main trend in the near future This is driving overall footwear sales worldwide
Vietnam is the third-largest footwear producer in Asia and the fourth in the world Vietnam's footwear export output is second only to the Chinese market
According to statistics of the General Department of Customs, Vietnam's footwear export in October 2022 is estimated to reach a turnover of over 1.96 billion USD, up 9.54% compared to September 2022 and increasing sharply 109.42% compared to October 2021 By the end of 10 months of 2022, the export of this commodity reached US$ 20.12 billion, an increase of 41.36% over the same period and accounting for over 6.43% of the total export turnover of our country in the first 10 months of this year
According to the Vietnam Leather and Footwear Association, in 2022, Vietnam's leather and footwear industry has overcome many difficulties and challenges to achieve an impressive export turnover But this is no guarantee that the industry will maintain its growth in 2023, as there are many objective factors affecting the growth of the
18 industry Therefore, the industry needs to ensure operational aspects to minimize losses and maintain operations in an extremely unpredictable period like today
The Vietnamese high-heeled footwear industry faces challenges despite its potential Outsourcing and lack of planning hinder domestic enterprises' supply chain control, leading to dependence on imported raw materials The domestic market is heavily reliant on imported products, indicating low demand for Vietnamese brands Furthermore, the industry struggles with supply chain and human resource issues.
We are still heavily dependent on raw materials from other countries At the same time, the labor force in the industry is still in short supply and has not yet met the needs of the market Meanwhile, current human resources are still limited in terms of skills and qualifications for accessing new technologies Therefore, we still have many difficulties in competing with other competitors
In addition, Vietnam currently has about 129 enterprises investing in the production of raw materials and accessories, but only about 20 domestic enterprises are capable of supplying high-quality raw materials, making leather and shoe manufacturers facing many difficulties in taking the initiative in ordering and sourcing raw materials Currently, the leather and footwear industry follow the fashion trend that is constantly changing, so it is necessary to develop the Vietnamese leather and footwear industry in accordance with the tastes
In recent years, Vietnam's domestic market has garnered significant attention from businesses Notably, the footwear industry boasts large enterprises such as Juno, Vascara, Trinnie, and Dong Hai These established players pose competition to TIEM GUOC, a prominent player in the Vietnamese footwear market.
JUNO's footwear products are created by the company's own design team and processed at the factory located in Ho Chi Minh City JUNO's product line is diverse in models, colors and types JUNO focuses on products such as: high heels, doll shoes, boots, sandals and sandals The products have high fashion, youthful colors, and dynamic designs and are suitable for many ages and the needs of customers However, JUNO's products have not been able to overcome the foot pain caused by customers when using it for the first time In addition, there are products with excess glue, the excess just not really satisfying customers
Vascara was established in 2007, known as a brand originating from Brazil, with a design center and factory run by Vietnamese people, specializing in fashionable footwear for office women and women Currently, Vascara owns 88 stores nationwide
Officially launched in 2015, Trinnie focuses on developing high-end high-heeled shoes in the Vietnamese market and only sells pointed-heel products with slim criteria The designs of Trinnie heels are modern and youthful, loved by many celebrities,
19 stylists, domestic and foreign businessmen Up to now, Trinnie has become one of the high-heeled shoe brands with 100% of its products exclusively produced in Vietnam
Dong Hai High Heels have made their mark in the market with their exceptional design and quality Established in the 1950s, the brand has grown steadily and now boasts five sales showrooms across various locations Over the years, Dong Hai has maintained its reputation for creating high-quality footwear that combines style and comfort With a focus on craftsmanship and attention to detail, the brand has earned a loyal customer base that appreciates its commitment to fashion and functionality.
Ho Chi Minh City, Dong Hai products are very diverse, for both men and women with high-quality leather materials Another detail of this brand that attracts a large number of consumers is the price of the product Although Dong Hai's products are all impressive and of impeccable quality, their prices are extremely soft
All businesses have their own orientations in the high-heel shoe industry in the Vietnamese market But one thing in common is that they all focus on quality when the product reaches the consumer This requires that the TIEM GUOC store, in addition to focusing on product quality like other businesses, needs to have its own different strategies to stand out and leave an impression in the hearts of customers
For casually designed shoes, the company must send the design to the workshops for them to produce in large quantities, not exclusively for the owner of the shoes Moreover, mass-produced products make it difficult for women to choose for themselves a particular model and style Besides, customers do not know the materials that the company creates, so it is difficult to know whether the materials are good or not
In order to be able to compete with other competitors, we have thoroughly researched the high-heeled footwear market before producing the product
SALES AND MARKETING PLAN
Detail the market materials you will use to promote your product,
2025 Focusing on launching new products to match customer needs
Increasing the number of products produced per model t
● Value-based selling Raise 10% based on the brand's values and market
Affirming the value of the brand is unique
Pushing sales to its own customer segment
Increasing the number of products to 200 and 220 in years 4 and 5
Ensure your stable sales, an continue to maintain your position in the market
Table 15:Expected Sales in 5 years
More specifically about the sales strategy of products for 5 years is presented in the revenue forecast sheet of the Financial Plan for 5 years.
OWNERSHIP STRUCTURES AND MANAGEMENT PLAN 46
Detail the management team’s roles, relevant experience, and
Trương Nguyễn Hiền Thơ Co-Founder
Bachelor of Business Administration Marketing
Data skills include analyzing, measurin analyzing and tracking the strategies that company offers, Monitoring th performance of departments
Understand the principles and tools Digital Marketing and marketing strategie
Lê Th Trang Nhã ị Co-Founder
Bachelor of Business Administration Marketing
Having experience in the fashion fie having worked in marketing and advertisi for a fashion company about design dresses, responsible for the position Facebook, Google and Tiktok, and work in the product development department the company The company is respons for products and promotional gifts fo customers
Experienced in product research a development, has worked in produ development for a fashion company ab bags, has experience in monitoring mar trends and new production technolo applications , to promptly have a suitab product development plan A promoter
48 production rationalization, analysis production efficiency and desig recommendations or plans regarding equipment to be used in the production new products
Manager of Finance and Accounting
Bachelor of Accounting & Financia Management
Experienced in running a large weddi function, with management skills an strategic vision
Always be full of energy, calmly face an problem, stay objective and create creativity needed to make your busine profitable compared to your competitors
Bachelor of Business Administration Major in Marketing
Experienced in human resour management, currently working as manager at The Coffee House, District branch, fluent in speaking, goo communication skills, quick and optim problem solving
Bachelor of Business Administration Marketing
Working for the marketing team at Chu Insurance Company, managing the fanp to create articles, run ads on platforms l Facebook, Tiktok, youtube, well usin support tools
Experienced in applying big data to wo doing well in bigdata tools to hold big da about customers
Previous sales experience plus experie in forex and stock investment worked fVintage FX
Good analytical ability, risk prediction an risk management skills
Very good communication an communication skills, able to rea situations, and handle situations ve skillfully
Phạm Viết Dương Material Staff
Bachelor of Business Administration Human Resource Management
Experienced in business with excelle leadership ability, ability to train, coach an mentor, plan and execute sales plans
Bachelor of Business Administration Human Resource Management
Possess good communication skills a effective teamwork, and good time and wo organization skills
Used to work in the customer ca department of the City Gym chain of gym understands the work, grasps import solutions when taking care of customers
Table 16:The role of the management team
List the staffing requirements of TIEM GUOC business, including
Main responsibility Technical skills and expertise
As a business leader, it is imperative to assume complete ownership of all strategic decisions By implementing well-defined strategies, you drive revenue generation while simultaneously addressing potential risks and challenges This comprehensive approach ensures that you proactively mitigate any obstacles and seize growth opportunities, ultimately contributing to the overall success and sustainability of your organization.
▪ Has energy and fighting spirit
Responsible for the technical aspects of the projects Conceptual edit, complete and hand over design to customers Not only that, but also have to work with the finished produ production department if the project requires it
▪ ave your own design style
Establish and develop manuals an procedures for quality management systems
Internal audit of the quality management system annually
Update and improve the quality management process
Coordinate with the manufacturer when there are customers to evaluat the company
Maintain records and certifications according to procedures and regulations (e.g project completion records)
Evaluate suppliers, subcontractors performing the work at the company
Conduct training for relevant departments on the application of systems, standards and procedures well as changes of systems and processes to suit actual requirement
Perform final inspection (Final inspection) for products handed ove to customers to ensure the quality is committed
▪ nderstanding of quality standards and management a supervision processes
▪ roficient in using office software (Word, Excel), management software
▪ bility to organize, think logically and systematically
▪ ood analytical and data-driven skills
Review planning and manage t ordering process, issue purcha requisitions, manage the selecti process
Build and maintain importan relationships with close suppliers a negotiate with them to purchase goo at reasonable prices
Regularly arrange freight, track orders and confirm production times delivery times and costs
Analyze and evaluate different market trends and use the knowledg skills and experience of material staf to make the most accurate and time purchasing decisions
▪ Good communication and negotiation skills
Identify new business opportunitie to drive your market growth Forming business goals of the enterprise
Design a business strategy, make viable business plan
Monitor, manage and evaluate personnel regularly to identify the problems they are facing to provide suggestions for solutions
Ensure personnel to serve the job
Ensure the company's business activities comply with the principles and laws
Evaluate the business performanc of the business periodically
▪ 3 years of experience in the same field
Market research as the basis for marketing decisions
Develop marketing strategies and plans
Organize the implementation of the built marketing strategy/plan
Develop, implement and adjust marketing measures
Monitor and check the implementation of specific marketing strategies, plans and measures
Develop and propose the use of marketing budget
Ensure the support and coordinatio of other functional departments
▪ Be sensitive to the market
▪ Skills with online marketing tools
Responsible for receiving information and resolving customer complaints and problems The ultimate aim of this work is to optimize customer satisfaction and satisfaction
▪ Skills to handle situations and solve problems
▪ Ability to withstand high pressure
▪ Analytical skills, market research and products/services
Responsible for evaluating, making sound investment decisions and preparing financial statements
Conduct rigorous data analysis to identify strategic opportunities for enhancing financial performance Collaborate closely with senior managers and company executives to devise actionable recommendations that maximize profitability Meticulously ensure the accuracy of financial statements and thoroughly evaluate the potential impact of suggested measures to guarantee their alignment with business objectives.
▪ At least 3 years of experience in the financial sector
▪ Working meticulously, being careful, paying attention to details
▪ Ability to lead and supervise the activities of the department
▪ Ability to strategic planning and analysis
Table 17:List the staffing requirements of your business
Manager of Finance and Accounting
180.000.000 VND first year 12% increase next year
Internal accounting 144.000.000 VND the first year
Salary increases 10% after 1 year of working
114.000.000 VND the first year Salary increase 15% after 1 year working
120.000.000 VND the first year Salary increase 30% after 1 year working
96.000.000 VND the first year Salary increased by 1.16% after 1 year of working
Salary increase 20% after 1 year working
Quality superviewer 108.000.000 VND the first year
Salary increase 20% after 1 year working
Material staff 102.000.000 VND the first year
Salary increased by 19% after 1 year of working
Detail any training plans TIEM GUOC will put in place for employees and
TIEM GUOC prioritizes internal training and development in its Human Resources strategy In these training methods, managers and employees have the opportunity to create close links with each other, share experiences and knowledge between departments and create sustainable development for the company
Leadership training : for those who are leaders, often used with joint stock enterprises
Professional training : for advanced employees with the aim of improving their professional skills prepare for new mission
New employee training : for new employees
On-the-job training : Employees will learn through practical work This method will be suitable for highly practical jobs
Internal periodic meeting : This is a training method through weekly, monthly and quarterly meetings This form is applied to training a skill for many subjects
In each department, we divide new employees into small groups of about 3-5 people to tackle the challenge facing the company This eases the pressure on newcomers because in a small group, whether introverted or extroverted they will have many – opportunities to come up with ideas and share experiences In addition, placing new employees in a small group with experienced members is also an advantage for them to learn and be trained directly by ô training employees directly by doing real work economic When facing difficulties and problems in the working process, instructors can monitor, guide and promptly provide immediate support Thereby, helping to improve work results
The online training system can provide a repository of courses with diverse lectures suitable to the nature of the job for trained employees In addition, each department head has separate skills and professional training sessions for employees in the online department every month, which helps to understand the employee's work progress and improve satisfaction and efficiency employee performance This approach not only easily solves the problem of cost optimization, but also gives new employees flexibility in arranging time to work and study anytime, anywhere
- Part-time employees: For part-time employees, flexible working time in multiple shifts makes it easy for employees to choose, especially students who want to work part- time
▪ Manage the number of employees
Continuous monitoring and monitoring of the number of employees in the enterprise is extremely necessary Help businesses understand the productivity and quality of employees' work, control recruitment and promotion targets, effectively control personnel, help directors and heads of human resources have a more effective plan in allocating reasonable human resources, timely replenishment of necessary human resources, or have a promotion mechanism to plan for high-productivity employees and quit for employees who do not meet the company's needs
▪ Assess the quality of personnel
There are two main factors to evaluate the quality of human resources, which are the employee's capacity (through work performance) and the employee's potential for future development Based on the nature of the work of each department, the directors and heads of departments will evaluate each employee fairly and transparently to monitor and check employees in many aspects: work efficiency, attitude , working qualifications, employee relations, other job skills Thereby knowing exactly the capacity of employees to orient development for employees such as appropriate rewards and punishments and training policies to retain talented employees
▪ Analysis of supply and demand relationships, the ability to adjust the human resource management system
The analysis of labor supply and demand for the company's short-term plan based on the assessment of the quality and quantity of human resources will help the company make specific policies, plans and programs on human resources human resources such as how many additional workers need to recruit, structure, industry standards and which training programs and courses should be applied, rights and responsibilities of participants, training and training funding sources, evaluation of training effectiveness,
56 whether corrections are needed change, add anything about the salary regime, remuneration, to adapt to the opportunities and challenges of the market in the future.
OPERATING PLAN
Describe the physical location(s) of TIEM GUOC business
Our store is located at 650/27 Dien Bien Phu, Ward 11, District 10, Ho Chi Minh city Set up shop in alley 650 Dien Bien Phu Street in District 10 to save money because renting a whole house in the alley is much cheaper than on Dien Bien Phu Street Alley 650 Dien Bien Phu is also relatively large, with a width of 6m for cars to easily move and turn around, and plenty of parking space for customers to come to the shop
Dien Bien Phu is also Ho Chi Minh City's lifeline, stretching from District 1,3,10 to Binh Thanh This is also an important road that connects Saigon's major thoroughfares
- Ly Thai To roundabout - Le Hong Phong roundabout (District 5): 4 minutes by motorcycle
- Dan Chu roundabout direction to District 3: 5 minutes by motorbike –
- Cong Hoa six-way intersection - direction to District 1: 5 minutes by motorbike
- By motorcycle, it is only 20 minutes from Tan Son Nhat airport
Figure 8:Store location at alley 655 Dien Bien Phu Street, District 10
In addition, some general characteristics of the city Ho Chi Minh should note as:
Ho Chi Minh City is the country's densely populated economic and cultural center This location has many fashion brands and can be said to be the leading place in fashion and consumption in the country; we believe that this is the location to have the right customer base for the brand and the ability to maximize future growth potential Economic potential:
Despite the difficult and challenging context of the pandemic, the city's economic potential has been confirmed with many bright spots Total retail sales of consumer goods and services in 2022 are expected to be VND 1.089,446 billion, up 30.5% from the previous year Retail sales of goods are expected to reach VND 625,520 billion in
2022, accounting for 57.4% of total sales and increasing 20.5% over the same period last year This is a sign of the recovery and development of the retail industry in Ho Chi Minh City after the pandemic, also a potential opportunity for businesses like us Weather:
Weather: Ho Chi Minh City has a consistently high temperature, averaging 27 °C, with highs reaching 40 °C and lows reaching 13.8 °C all year (dry season with little rain) Ho Chi Minh City has two seasons: the rainy season and the dry season The rainy season lasts from May to November, and the dry season lasts from December to April of the following year The annual rainfall in the city is 1,949 mm Rainfall is heavier in the inner city and northern districts than in the rest of the city Rainy seasons, storms, and flooding can have an impact on the store's revenue
According to 2020 statistics, Ho Chi Minh city has nearly 7.6 million motorcycles (one-third of the total number of motorcycles in the country) and approximately 700.000 cars, with a total population of 13 million One of the city's challenges is traffic congestion, which has an impact on economic development.
Describe the production workflow
The design department implements shoe model sketches at the request of the leadership and research of the company's designers based on an understanding of customer tastes, aesthetics, and set creativity.
Based on the company's facilities and employees, the design department will create a draft proposal for the designer and the company's leadership The design must take care to ensure that the product is aesthetically pleasing, functional, and meets technical standards.
Step 2: Gather materials for making leather shoes:
Following agreement and finalization of the overall design, the next step in the process is to prepare fuel for production According to the designer's description, the factory will import all types of cowhide, crocodile skin, and so on.
These materials must be processed and cut to standard sizes in the design, either by machine or by hand This stage will have a direct impact on the finished product's quality
During the manufacturing process, creating the shoe mold is crucial for shaping the shoe to provide a natural fit on the foot To ensure cost-effectiveness and durability, the mold is primarily crafted from plastic and metal materials Precision measurements are employed by the mold-making unit to capture the dimensions from the heel to the toe, ensuring the mold aligns with the intended shoe design.
Precise mold creation requires adherence to 59 appropriate standard parameters The completed shoe mold is carefully placed within a protective skin, sewn securely with a specialized needle This meticulous stitching process ensures the creation of a beautiful and anatomically correct foot shape The molding process demands precision, with each needle and stitch carefully placed and free from errors.
The process is finished with the use of a sewing machine Before shipping, the leather used to make the shoes will be marked and thinned This allows the craftsman to distinguish and easily identify the pieces of leather and shoes Make sewing and stamping work faster and easier from there.
Step 5: Put the toe cap together:
The properly assembled toecap mimics the design for a snug, fit- -size fit for pain-to free walking.
Step 6: Decorate the base by lining it:
The first step is to glue and stitch the pad, then remove the spiked nail that has been pinned at the heel, leaving only the hole, and finally sealing it Errors should be identified at this point and corrected before shipment Ironing, dyeing, or polishing can be used to repair seams The brand logo will be stamped and cleaned around the heel and sole after they have been worn.
Step 7: Double-check and finalize
Leather shoe production culminates with rigorous testing to guarantee quality before release This testing ensures the integrity of the footwear, regardless of its price point or whether it is a bespoke design The testing process verifies the shoe's condition, completing the final stage of production and ensuring its readiness for public consumption.
After ensuring that the product meets the standards and is fit for use, the shoes are folded and packed into boxes before being shipped to the customer.
List any additional physical requirements
No Machine Quantity Price Total
2 Hot and Cold Shoe Toe
Describe the materials TIEM GUOC need to produce TIEM GUOC‘s
product or service and explain how TIEM GUOC‘s plan to source them
The following are the primary materials used in the manufacture of the store's shoes:
The following leathers are used to make shoes:
Cowhide: Cowhide is the most commonly used type of leather in footwear Because this skin type has straight circular pores that are evenly distributed and do not close together It will produce better shoes because of its grain texture and tight
62 leather fibers, which are thin, light, and easier to maintain than other types of leather.
Full Grain leather: The uppers are made of full grain leather Because it has the breathability properties of leather, this leather is very durable and supple.
Buffalo hide: Buffalo skin has large pores and few holes, the leather is softer and flabbier than cowhide, and the surface is less smooth and beautiful than cowhide However, this leather is still used in certain details.
Goat skin: is thin, flexible, and easily shaped and molded.
Simili: Simili material is another name for imitation leather products Other names for simili include faux leather, pleather, and PU leather Simili is a lining fabric knitted with polyester yarn and dyed with 1 to 2 layers of PVC to form a bond between the fabric and the plastic layer This bonded sheet is put through the process of creating texture on the surface and finally dyeing to make the product more beautiful and smooth The surface has the texture of real leather, but simili is still a PVC product, as evidenced by the characteristic smell and gloss of this material
PU leather, an artificial material synthesized from Polyurethane (PU) plastic, possesses an array of advantages Its resemblance to genuine leather in terms of softness and durability makes it an ideal substitute Moreover, PU leather excels in ease of maintenance and boasts a significantly lower price point compared to authentic leather, making it a cost-effective choice These attributes have led to its widespread use in the production of accessories such as wallets, bags, and footwear.
Shoe soles are typically made of the following materials: PVC, EVA, PU, thermoplastic rubber, or vulcanized rubber
Heel and heel face material:
▪ Heel: pressed leather surface, wooden heel, plastic heel, and metal heel are suitable and meet an -collision requirements, as they are not brittle, soft, or ti cracked during gluing and wearing.
When crafting the heel surface, materials must prioritize longevity, durability, and stability Typically, heel soles are constructed from robust substances like PU, Nylon, PE, Thermoplastic Rubber, or Polypropylene These materials excel in resisting wear, preventing stretching, and minimizing slippage, ensuring the longevity and comfort of the footwear.
▪ The insole: is the part of the shoe that connects the outsole to the toe and is located between them, where the foot rests on the lining glued to the insole Glue or sewing thread is used to secure the toe and outsole to the inner sole Animal hides, leather panels, and fiber boards are among the materials used to make the inner.
Materials to make Cap toe, Postparts and Stiffness:
▪ The cap toe: is the section between the toe cover and the lining that helps keep the toe shape and protects the toes The material used to make the cap can be soft to allow for flexibility or hard to keep its shape while being worn
▪ Animal leather, polystyrene impregnated fibers, rubber, and thermoplastic materials are among the raw materials used in the production of cap toe.
▪ The backing: is the glued portion of the shoe between the upper and the lining at the back, providing a snug fit and preventing slippage The back of the shoe is usually moisture-resistant and has good bounce, but it still has a firm and flexible section The raw materials used to make after-shoes are typically animal leather, leather, fiberboard, and plastic, or resin dipped in solvent.
▪ Stiffness: is a material that is placed between the insole and outsole of a shoe to act as reinforcement, making the shoe more durable.
Adhesives used in the production of shoes:
Adhesive is a chemical compound that forms a necessary temporary or permanent adhesion between surfaces Latex, Neoprene, Polyurethane, and other hot melt adhesives are frequently used in the footwear industry.
Thien Bao International Trading Production Co., Ltd and Industry Alran will be chosen as the company's main material distribution partners to supply leather, fabric, and textile machinery.
FINANCIAL PLAN
Demonstrate the potential growth and profitability of your business
The following shows TIEM GUOC's forecasted revenue for the next 5 years from
2023 to 2027 We sell 40 different items:
Product pricing at TIEM GUOC follows an annual upward trend The price range of products spans from 705,000 VND to 1,734,958.5 VND Fluctuations in raw material costs drive these price adjustments To maintain profitability amidst rising raw material expenses, TIEM GUOC implements a consistent 10% annual price increase for its products.
In terms of revenue, our company's revenue is expected to increase over the years
In which, total net revenue is expected to reach VND 3.850.100.000 VND in year 1 Total net revenue is expected to increase to VND 6.352.665.000 VND in the following year Similarly, in year 3, total net sales is expected to increase by 1.3 times compared to year 2 and reach a decent level of 8.358.517.800 VND The final forecast of the 5th year reaches the highest revenue of 12.401.249.102 VND
Figure 11:Annual Income Statement Forecast
As shown in the previous sections, the main revenue of the enterprise is obtained from the profit of products sold in a limited number of 10 models per quarter With the positioning of the value of the product, we offer a price of 190% of the original price to break even and make a profit In the first year, the cost will account for 88,8% of revenue because this is the first year of operation we need a lot of raw material and labor costs, so we only earn 11.2% of gross profit compared to revenue And after deducting operating expenses in the first year it is quite high, this year we earned a loss of about - 35.3% However, in the following year after successfully entering the market, with the same tactic of increasing the price of products by 10% and increasing the quantity of each model, combined with the reduction of raw material costs, labor and operating costs after stabilization Therefore, this year the business earned profit after tax profit of -7,4% compare to the revenue, which is decreased 27,9% compare to year 1
Next, in years 3,4,5 the costs are quite similar to year 2 when it is stable In the following years, we continue to ensure payroll costs, marketing for operations, and backup risk costs Particularly, we focus in sales and marketing activities in the following years to ensure our sales, which will account for around 26%-33% of revenue each years Moreover, our product price and quantity of product is increased every year to raise the revenue after we have our value in this market Therefore, our profit after tax will gradually increase from 7,4% to 2.8% by 2027, which is positive for our – business.
Create a projected cash flow statement
Figure 12:Cash flow Statement table
The cash flow in and out of Shophouse from its establishment and official operation in 2023 to 2027 is shown in the Statement of Cash Flows above It can be seen that only negative data was recorded in the base year The initial amount of money that businesses spend to invest in assets for factories and shops is 461.220.000 VND in investment activity
*Cash flows from Operating Activities
Profit after tax has risen steadily over the years and is expected to rise even further in 2024 As mentioned in the previous section, when the enterprise entered the market, it increased the price of the product, increased the number of products that increased net revenue, and reduced the cost sharply due to lower raw material costs
Short-term assets also experienced a significant shift, increasing from -913.436.225 VND in 2023 to 34.007.933 VND in 2025 and decreasing from 0 to -209.488.869 VND
Inventories in 2024 fell sharply from -1.332.803.160 VND to -203.610.510 VND, indicating a very strong increase in product consumption in 2024, followed by a further decrease in 2025, an increase in 2026, and a slight increase in 2027 In 2027, it can be explained that in 2026 and 2027, enterprises will increase the number of products produced, resulting in a slight increase in inventories
Since then, cash flow from operating activities has steadily increased, rising from -3.022.862.151 VND in 2023 to 438.172.130 VND in 2024 and rising steadily over the years to 32.283.163 VND in 2027
*Cash flows from investing activities
In addition to the cash flow fluctuations from the initial fixed asset purchase of 461.220.000 VND and 30.000.000 VND in 2023, 130.000.000 VND in 2025, the remaining years did not record any change in cash flows money from investing activities
*Cash flows from financial activities
The cash flow index from financial activities increased year-over-year accept the year 2026, 59.1% higher than in 2023, 135.8% higher in 2025 than in 2024, 11,4% decrease in 2026 compared to 2025, and increase sharply 162% in 2027 compared to
2026 It is because the value of corporate shares increases sharply according to the common stock market price because business activities have many bright spots
Create a projected balance sheet
Figure 13:Yearly Balance Sheet Forecast
This balance sheet provides information regarding the value of all current assets and capital of TIEM GUOC at the time of issue of the financial statements Therefore, the balance sheet can be considered as all the financial resources of our company at a given time.
The portion of assets shown on the balance sheet includes current assets and net fixed assets From this table, we can see that the asset classes focus on short-term assets and net fixed assets The short-term assets of the TIEM GUOC include cash, inventory and other short-term assets such as tools, supplies, and receivables Net Fixed Assets is the value taken from the Fixed Assets table, with a base year of 461.220.000 VND.
With an initial capital of 5.200.000.000 VND the shop does not borrow short-term and long-term debt from the bank.
As the data in the above table shows, the data has grown correspondingly, showing that capital size, capital allocation and financial autonomy have all increased.