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HO CHI MINH CITY UNIVERSITY OF TRANSPORT SECONDHAND CLOTHING SHOP BUSINESS PLAN STUDENTS NAME: LAM THI HUYNH TRANG TRAN THI PHUONG NHUNG TRINH BOI LINH NGUYEN THE DUONG NGUYEN HUYNH ANH TU CLASS: 20PL2 SUBJECT: PRINCIPLE OF MANAGEMENT LECTURE: NGUYEN THI THANH HIEN SUBMISSION: DECEMBER 20th , 2021 ACKNOWLEDGMENTS We would like to convey our heartfelt appreciation to Ms Nguyen Thi Thanh Hien, also known as the Principle of Management instructor She patiently walked us through the teaching process and shared her knowledge with us This study's theoretical foundation Also, thank you to the following team members: Boi Linh, Phuong Nhung, Huynh Trang, Anh Tu, and The Duong You all worked hard to complete this study as a group Due to a lack of time and competence, our research paper cannot be error-free, therefore I eagerly await feedback from professors and friends so that I may complete useful additions and experience to help our research progress Thank you very much ABSTRACT Nowadays, with the stressful situation of the covid pandemic, the world economy in general and Vietnam in particular are experiencing major fluctuations affecting the income and consumption of each person(Tongcucthongke,2021) The most notable of which is the increase in prices of goods and services leading to consumers starting to tighten their spending even more Besides, the consumer demand of the people is increasing, especially the demand for costumes That's why it has become one of the most suitable choices for the majority of consumers Grasping the common psychology of customers is that they like to shop but want cheap prices Especially in the Thu Duc area, there are not many stores to meet the above needs or have not been able to choose beautiful products and quality sources Using this understanding of the market and this category of products, the group came up with the idea of opening a second-hand fashion shop This business project has the advantage of abundant stock, low capital and fast turnaround, attractive income and fast payback time Table of Contents I Introduction Secondhand definition Sida clothes is the name of the old clothes box created by a Swedish humanitarian organization brought to support Vietnam in the 80's - 90's(To Minh Nguyet,2021) Nowadays, Although the aid goods are gone, the phrase “sida” is becoming more popular to indicate the used clothes or things but still usable and buy and resell at a cheap price What is the status of old clothes in recent years? The secondhand clothing business market is considered to be a large market by unemployed, low-income people increasingly due to precarious economic conditions, or currently customers are mainly university students always have to save money, so old but still quite new items, trendy designs are always prioritized Reasons for choosing ideas The second hand market in recent years, Nowadays, old clothes, especially in fashion, are very popular with young people because they are both fashionable and economical Besides, These second-hand items often have rich and diverse designs with cheap prices only 2/10 of the price of new items In particular, each item is limited in number, not worry about collision If cleverly combined, you can create many eye-catching sets with prices that are less than or equal to a new item bought from the store Especially mixed in these second-hand items are countless branded goods from famous brands such as Mango, Zara, H&M, originating from Europe, Korea, Japan or the most "fake" as well come from China's domestic source In addition, the uniqueness and unique products from the design to each story behind the secondhand outfit also become attractive to customers Unique, timeless and not-so-popular outfits and accessories are what fashionistas hunt for and love Grasping the general psychology of customers who like to shop but want cheap prices Using their understanding of this market segment and type of item, the team came up with the idea of opening a second-hand fashion shop This business project has the advantage of abundant stock, low capital and fast turnaround, attractive income and fast payback time Business form The form of business that our business registers is a two-member limited liability company II Environment scanning Macro environment 1.1 Economic analysis Vietnam’s population In 2021, Vietnam's population is expected to increase by 830,246 people and reach 98,564,407 people by early 2022 Vietnam's population currently accounts for 1.25% of the world's population Vietnam is ranked 15th in the world in the population rankings of countries and territories in the world The population density of Vietnam is currently 317 people/km² with a total land area of 310,060 km² In which, 37.34% of the population lives in urban areas (36,346,227 people in 2019) The average age in Vietnam is currently 32.9 years old (Danso, 2021) The average income of Vietnam The average income of Vietnam is about 4.2 million VND/person/month (TGSO) - The General Statistics Office has just announced, the average income of person / month of Vietnam in 2020 at current prices is about 4.2 million VND, down about 1% compared to 2019 (Lưu Nguyên Sơn, 2021) CPI of Vietnam in 2021 In the rest of 2021, with the average increase in the first months of the year at 1.47%, it is possible to control the average CPI for the whole year at about 4% However, there are still many potential risks to inflation coming from the world situation, or the tendency to speculate and hoard domestic goods at some point in time Therefore, the management agencies need to participate more actively, contributing to the implementation of the dual goals of the Government (Tổng cục thống kê, 2021) GPD of Vietnam in 2021 GDP in 2021 is estimated to grow at a rate of 2.0% to 2.5%, significantly lower than the predicted 4.8% in August 2021 (Đặng Hiếu, 2021) Although people's income has decreased, but people's consumption of clothing-related products is still increasing, so the sale of second-hand goods can still grow 1.2 Technological environment Technology in Vietnam Vietnam is presently the eighth biggest supplier of IT administrations within the world Five IT businesses that are as of now trending are fin-tech, fake insights, E-commerce, program outsourcing, and instruction innovation (vnetwork, 2021) How many people in VN using technology? According to Digital statistics (data as of January 2021): The number of Internet users in Vietnam is 68,720,000, an increase of 551,000 people (up 0.8%) in the period 2020-2021, accounting for 70.3% of the population; the number of social network users in Vietnam is 72 million (an increase of more than million people within year), equivalent to 73.7% of the total population, an increase of 7,000,000 people (an increase of 11%) in the period 2020 -2021… (Lâm Hoàng Ân, 2021) Have Vietnamese people's buying habits and behavior changed? After the outbreak of the epidemic in 2020, 93% of survey respondents said that they shop online regularly at least once a week The number of people who regularly shop (more than times a week) accounts for 39% In which, 58% of people say they often shop on e-commerce more after the impact of the pandemic Payment via payment apps In 2021, Vietnam will be one of the top three nations in Asia in terms of mobile payment percentage, with 29.1% By the end of the first quarter of 2020, Vietnam had 13 million activated and utilized digital wallet accounts, a total wallet balance of around 1.36 trillion dong, and up to 225 million transactions (State Bank, 2020) Due to the pandemic, the payment form is now can by using the online application like : ShopeePay, Momo, ZaloPay, ViettelPay, And because it's faster and safer they've been recommended more often 1.3 Social environment A Demographic analysis – population structure Simultaneously, we use demographics as a step to effectively evaluate whether the quality of products and services of the business meets the expectations of customers or not Here are the factors that we study: Gender Figure 1: Gender With a male population of 49.4 percent and a female population of 50.6 percent, Vietnam's population is virtually evenly split between men and women.( Countrymeters, 2021) Age Figure 2: Age from under 15 to over 65 year old People under the age of 15 account for 25.2 percent of the population, while those over 65 account for only 5.5 percent As a result, the population aged 15 to 64 years old accounts for 69.3 percent of the total.( Countrymeters, 2021) Figure 3: Age from 16 to 30 The youth population was predicted to account for 23.8 percent of the country's population in 2019 When it came to age groups, the young between the ages of 25 and 30 always accounted for the biggest share which is 45.0 percent in 2018 While the number of young people aged 20-24 years old takes up 32.7 percent , the number of young people aged 1619 years old accounts for 22.3 percent ( Anh Tuan, 2021) Viet Nam population density As of December 2021, the population density in Vietnam is 295.8 persons per square kilometer (766.2/mi2) The population density of Vietnam is computed as the permanently settled population divided by the entire area of the nation Within Vietnam's international borders and coasts, total area is the sum of land and sea areas According to the United Nations Statistics Division, Vietnam's total area is 331,212 km2 (127,882 mi2) ( Countrymeters, 2021) Population in major cities of Vietnam Ho Chi Minh City Ha Noi Da Nang Hai Phong Bien Hoa Can Tho 8,838,000 4,875,000 988,561 841,520 830,829 812,088 Income Average Monthly Salary in Viet Nam (VND) Ho Chi Minh City Ha Noi Whole country 8,900,000 8,700,000 6,300,000 In general, the average monthly income of employees in the first quarter of 2021 reached 6.3 million VND, an increase of 339,000 VND compared to the previous quarter and an increase of 106,000 VND compared to the same period last year ( Doanhnhansaigon,2021) In terms of the area, employees' average monthly salary in Ho Chi Minh City climbed dramatically, hitting almost 8.9 million VND/ month in the first quarter of 2021, up over 690,000 VND from the previous quarter Workers in Hanoi earned an average of 8.7 million VND per month in the third quarter, up more than million VND from the previous quarter( Doanhnhansaigon,2021) B Cultural environment Instead of taking advantage of the selection of clothes according to new fashion trends during the year-end shopping season, many young people start shopping markets from social networks to real life to minimize their wardrobe to spread the message of "living green" together and save money ( Thien Thanh ,2020) Living green is not only about stopping littering, saying no to plastic items and plastic bags, but many young people have also begun to change their dressing habits: buying clothes, minimizing wardrobes, choosing 'make sure to wear durable clothes' ' or 'vegetarian fashion' That's when young people realized that the fashion industry with an abundance of goods also pollutes the environment as much as plastic ( Vu Thuy, 2019 ) Moreover, people like to buy used things quite a lot, especially women, because they can buy a dress, a beautiful handbag at very cheap price but the quality is still very good With secondhand goods that are cheap, unique, and diverse in style, especially targeting the current environmental protection factor of young people, secondhand goods are very attractive to students 10 Figure 17: Best Express (Source: Internet) The reason for choosing Best Express: • • • Good price(giaohangtotnhat,2020) There are policies to compensate for damaged goods((giaohangtotnhat,2020) The way to handle risks and lost goods is very professional and sincere (Quang Vu, Tri Thuc • • Tre, 2020) Dedicated service attitude, sociable Best Express is very careful and detailed in updating the status of the order Make a good impression and bring higher trust to users Figure 18: Best Express bill of lading process (Source: Shopee) GHN (Fast Delivery) The app is used to track the shipping process: 36 Figure 19: GHN Express (Source: Internet) The reason for choosing GHN: • • • • Good price(ghn.vn,2021) Have a clear and specific compensation policy for damaged goods (ghn.vn, 2021) Fast delivery GHN is are very careful and detailed in updating the status of the order Make a good impression and bring higher trust to users Figure 20: GHN Express bill of lading process After contacting Best Express and GNN, we negotiated a price for the offer, provided that the number of orders must be over 200 orders per month 37 Promotion 5.1 Advertise Facebook Facebook is one of the most widely used internet advertising platforms One of the most common strategies to enhance sales is through online product promotion on Facebook This includes selling via personal Facebook (personal profile), fanpage, Group, livestream • Sales on the News Feed of personal Facebook Selling on personal Facebook has the benefit of allowing us to actively offer things using our own reputation while also completing orders quickly The disadvantage of this strategy is that our audience is restricted to 5000 individuals and only includes accomplices and relatives, and we are unable to use Facebook's advertising features • Sales on the News Feed of Facebook Fanpage This approach is thought to be more professional The number of clients on a Fanpage is unrestricted To locate new consumers, we can employ advertising methods We may also enhance client involvement by writing entertaining content Not only that, but we can leverage Facebook retargeting features to boost conversion rates and close rates • Sell on Facebook Groups VIETNAM SECOND HAND MARKETPLACE, HOI YEU HANG THUNG- NGHIEN SECONDHAND, the gioi 2hand, Hiep hoi hang thung Viet Nam,2HANDLAND, are some common sales and agreement groups on Facebook at the moment We may use these groups to distribute our sales efforts and the best part is that it's usually free If the admin requires fee for the post, it is not so expensive (from 3.000 VND/post) • Facebook Ads Ads may be found in the Desktop News Feed, the Mobile News Feed, and the right column of the Facebook desktop Ads are occasionally accompanied by information about your friends' social activity, such as like a Page (Facebook for business, 2021) 38 In Facebook advertisements, your friends might see news about your social activity Only your confirmed friends will be able to see this news, and it will be subject to the privacy settings you've established for your account It is your profile image, not a photo from your photo album, that is utilized if a photo is used (Facebook for business, 2021) Instagram We will sell via News Feed of personal profile, livestream and ads • Instagram Ads Instagram postings might be used to promote a company's product or service They may be found in both feeds and stories These articles may feature photos or videos, as well as content and links to the company's preferred websites The benefit of advertising on Instagram is that it makes use of information provided by Facebook members This increases the number of people who see your adverts (Instagram's parent business is Facebook.) (TopOnSeek, 2021) Livestream to promote things online This is a new style of selling that has been developing since the beginning of 2019, but has made rapid development and has a large consumer base Simply sit in front of your smartphone or laptop, activate the livestream feature, and demonstrate your sales prowess Investing in a good presentation, presenter, and selecting the correct online time window for your potential clients is the formula for success when using an online sales channel Advertising through big forums We will go to huge forums like webtretho, zingme, truongton, vatgia and post our products/services there, and in the future, we will consider to be a VIP member of the forum in order to get our article pinned at its new location every day, increasing the number of views Nowadays, people conduct seeding on huge forums to amaze users and remember their brand You could even discover something new and intriguing as a result of the consumers' inquiry Get the support from the acquantances 39 When it comes to purchasing a new product, people frequently seek recommendations from their friends and neighbors Word of mouth, sometimes known as personal recommendations, can help us locate new clients In person and on social media, ask friends, relatives, and existing customers to spread the news about you and your business We will request that they write reviews for us on the internet Consider providing a little incentive for a recommendation Also, the acquantances can support us by purchasing some products on the grand opening day 5.2 Promotion • • 10-20% discount of all items during the holidays Reward points program (100,000 VND = point), when they get 50 points they can get a • voucher 50,000 VND (this offer cannot be combined with other offers) We will apply same price promotion (20,000- 30,000 VND and 29,000 VND), when our fanpage reach certain number of likes or to celebrate some occasions (brand’s birthday, Thuy Tien won a crown at Miss International Grand 2021, Viet Nam won a football match,…) Business and stakeholders 6.1 Primary stakeholders Shareholders The shareholders are five of us, who own shares in a clothing store, therefore, have an ownership interest in the business Initially, we decided to raise capital together to start a clothing business Each person contributes 20 million, the total capital is 100 million for this project Custome Target customers: Da Little N targets young people from 18 to 30 years old Dealers (retailers) E-commerce sites support us in the process of promoting products to customers: • • Shopee Lazada 40 In addition, accompanying us are some of the popular social networking sites in Vietnam today: Facebook Instagram Partners • • Our partners are two shipping units that we choosed for delivery: • • Giao Hang Nhanh Best express Suppliers Source of clothes: • • • Wholesale markets Social networking sites and websites specializing in selling secondhand goods Large secondhand wholesale stores in Vietnam, where there are warehouses to choose from Business space lessor: • • • Location: Thu Duc (near the national university village) Area: 50m2 Price: 10.5 million/month Employees First time: members who contributed capital to the project After a while, the store develops: Hire some more employees with an estimated price of 15,000 VND /1 hour/a person • • Media High social media influencers on store experience and reviews Write store reviews on pages of great interest: "Thanh Riviu" (with 1,802,940 followers) , "Sai Gon Review" (with 265,060 flowers),"Ho Chi Minh City National University Village Student Association" (with 140,000 flowers) and so on Government 41 We registered to establish a 2-member limited liability company in Thu Duc City Business registration fee at the registration office - Department of Planning and Investment: 50,000 VND Fee for registering a business establishment statement on the national portal: 100,000 VND - Fees/license fees 6.2 Potential ethical problems and solutions for balancing the benefits for the primary stakeholders a Shipping unit After learning and practical experience, we have come up with some comparisons between other units still moving above with some other shipping units such as: J&T ,Giaohangtietkiem and so on The shipping units all have the same compensation policies Also the price of giahangtietkiem is cheaper than the best express and GNN However, on actual experience and market survey, it shows that Giaohangtietkiem and J&T have had a lot of negative feedback from customers: 42 Figure 21: Complain of customer for J&T and Giaohangtietkiem (Source: Linh Dang, 2020) J&T : • Shipper steals goods from customers (customers report with specific evidence) • Disclosure of customer information causes customers to cheat orders • Shopee and J&T Express deceive customers and push each other responsibility Do not allow • customers to refund Giaohangtietkiem : Lost and damaged the goods of many customers but gave reasons to deny responsibility, not • to compensate The attitude of the staff Giaohangtietkiem is not good and often does the wrong process Solution for this problem: • • • • Do research about the shipping partners before cooperation Leave some notes on the packaging bags to remind the shippers Always track the orders Remind the customer to check the shipment details, bill of lading code and contact us immediately In addition , according to my own practical experience when using freight units I noticed that Best Express and GNN are very careful and detailed in updating the status of the order Make a good impression and bring higher trust to users For example: • • Single shipping process updated for customers of Best Express and GNN Single shipping process updated for customers of other shipping units 43 Figure 22: Compare bill of lading process (Soure: Shopee) b Suppliers It will be tough to discover respectable and quality sources of goods with so many options for secondhand items available, from domestic to international, on social networking sites to wholesale markets It is possible for shop owners to be duped into importing counterfeit and low-quality goods 44 Figure 23: Defective products (Source: Internet) Solution: • Get goods from big and reputable websites, warehouses or wholesale markets, known and • reviewed by many people Before paying, inspect the goods thoroughly and call the pick up location if there is any • damage to the goods Go to the warehouse location to check the quality and design c Government The first thing when opening a business store is to register a business license with the state during operation If they are checked by the authorities, in case they are not registered, they will be fined up to 30 million VND (Huu Duc, 2020) If it is more serious, the store is forced to stop operating for a period of time, or have products of non-origin recalled Solution: Required to register to establish a business IV Project of finance List of necessary tools to open a second hand shop Numerica l order Equipment name Quantil y Unit price (VND) Value (VND) Shelves Pylons Iron hanger Bag (Paper or plastic) 10 set 07kg 300,000 15,000 400,000 20,000 600,000 150,000 800,000 140,000 45 10 11 12 13 Total Mirror Mannequin Sticker Combo :Receipt printers & Barcode scanners Billboards Chair Dressing room frames and curtains Repair and decorate the shop Camera 2 1000 100,000 300,000 14 800,000 200,000 600,000 140,000 800,000 1,000,000 100,000 250,000 1,000,000 200,000 750,000 time 1,500,000 1,500,000 350,000 8,280,000 VND 1,400,000 Other fee Business License Tax :2,000,000/year Rent expense : 10,500,00/month V Conclusion Our Da little N shop does business as a two-member limited liability company and specializes in providing second-hand goods to a group of customers from 18-30 years old in Thu Duc city The current difficulty we are facing is that we cannot open a store in person due to the complicated situation of COVID, so we have opened an online store on social networking sites and e-commerce sites However, the business potential of our store is quite positive when we choose the right customer group and the light business type is suitable for those who are just starting out, we also point out the highlights store and analyze pricing relative to competitors Besides, our source of goods is also quite diverse and suitable to the tastes of customers with many prices from 30,000 to 200,000 VND Through the information that we have presented above, we realize that we still have many shortcomings, we look forward to receiving suggestions from the lecturers 46 VI References Iprice.vn 2021 Bản đồ thương mại điện tử Việt Nam [online] Available at: [Accessed 19 December 2021] Nhĩ Anh, N., 2021 Doanh thu thương mại điện tử Việt Nam tăng trưởng 18% [online] Nhịp sống kinh tế Việt Nam & Thế giới Available at: [Accessed 19 December 2021] admin, 2021 Tình Hình Thương Mại Điện Tử Ở Việt Nam Năm 2021, Thị Trường Thương Mại Điện Tử 2020 [online] 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[online] LuatVietnam Available at: [Accessed 20 December 2021] Thank you for reading! 50 ... December 2021] https://accgroup.vn /kinh- doanh- do-cu/ 2021 Kinh Nghiệm,Thủ Tục Đăng Ký Kinh Doanh Đồ Cũ (Cập Nhật 2021) [online] Available at: [Accessed 18 December... at:https://www.smartgreenpost.com/2019/10/19/second-hand-clothes-are-good-for-theenvironment-and-economy/ Huu Dang, 2020 Năm 2021, kinh doanh khơng có giấy phép bị xử phạt nào? [online] LuatVietnam Available at: ... Figure 17: Best Express (Source: Internet) The reason for choosing Best Express: • • • Good price(giaohangtotnhat,2020) There are policies to compensate for damaged goods((giaohangtotnhat,2020)