Know-How Exchange : Research/Metrics

This sounds like a perfect time to do a SWOT on the company. SWOT stands for Strengths, Weaknesses, Opportunities, and Threats.

SW are internal - what are the strengths and weaknesses of the proposed boutique. What can they do well and what will be challenges?

OT are external - what are the opportunities and threats from competitors, government changes, demographic changes, etc.

After you do this, you will likely see if whether the Boutique is worth doing, and if so, some specifics on how to do it.

It is great to have a list of competitors, but it is uncertain how much information you will get from them (they will definitely not be able/willing to give you an answer to your 4 questions). A list of potential customers (within the target audience, but preferably not the current company's customers) will get you further: interviewing even just a few big customers will give you a quick idea about the market feasibility of a bespoke clothing creation boutique, and pricing strategy.
To identify and contact such customers (your questions 2 and 3), ask your client (or an industry analyst) who they would really like to get (who/which kind of customer would be interested in such product and where they hang out - physically or virtually - for easy contact). Try to avoid only talking to current customers of the company: because they already prefer your client's products, their response can not be scaled up to market level for a feasibility and pricing study

Thanks for the responses so far. To answer your questions the client will be focusing on growing the bespoke creation side of the business which is primarily taking a brief from clients and then desigining something personal for the occasion from scratch. She has a handful of existing customers who have been delighted with both the product and the price but is new to the industry. She has money to invest in the idea if it progresses and I think she wants to reach out to make the product accessible to those wishing to spend anything from £200 upwards for a gown. UK market is the focus and the brand strategy has not been formulated yet but I think it is the personal outfitter theme she will go down. I don't think she wants the celeb status (walk before she runs) but wants to raise awareness and build her reputation and clients.

Marie

Time is short. If you can identify the four best-located competitors (by best-located, I mean those with the probable highest rents or property values) because those are the competitors whose businesses are likely to be the more viable from the list of 20.

If you can also determine how long they have been established and reject any new entrants until you have four "stayers", i.e. business that have survived 4-5 years, that would help.

To get the places with the higher rents, ask a friendly real-estate person.

OK, now you have a sample target that comprises 20% of the competitor population (and hopefully 80% of the value of the market for the population).

For balance pick one or two stores in the lower end to visit for after you've hit the "top 4"

Now visit each store on the pretext of needing something made for a special event for yourself or a female relative - make it convincing. This is how you can answer the questions you need to answer to give you the background for your report, such as:

1. How many other customers do you see there?

2. If it's busy, ask a salesperson if it's typically so, or is it usually quieter (pretext - so you can come back for your garment discussion).

3. Observe how many people seem to be engaging in transactions, as opposed to window shopping inside. .Look at them carefully and see if you can observe signs like - the labels they wear, jewelery, cars they drive, how they seem to relate to staff, create a mini-picture of one or two customers, if you can

4. Look for tell-tale signs such as how many sales being rung up, number of garments on completed racks, number of fitting rooms, how skilled the tailors/couturiers seem to be.

5. Look at pricing - are you talking $500, $5,000 or $50,000 for a piece? (or whatever steps seem right in your market).

6. Of course, a really up-market salon will require an appointment so they can focus on you alone, make a note of places that need appointments as they will likely be at the pinnacle of the market viz. pricing and perception of quality/exclusivity.

The above will go some way to helping you map out the situation. You can't go to all 20 places for this unless the budget for the report is large enough to recruit an army of assistants to go out and complete your report template, in any case have 100% of the information is an unnecessary luxury.

The SWOT framework is a good start but why not expand it out to a TOWS to develop suggested strategies for your client? See this page for an explanation of how...

Hope this helps.

ChrisB

Thanks Chris, as you rightly pointed out time is short, I don't think we are able to visit the stores but I can definitely call on the pretext of needing something myself. In this type of report would you include suggestions of who the target audience could be (i.e. maybe ladies groups who have balls regularly, brides etc?) or would you stick to straight facts? Currently the type of customers who use this service are a, b & c?

As for the budget, we are doing this free of charge with a view to being retained if we identify a feasible audience (which I think there is but that's not enough for the report findings!).

I've had a look at various market reports on the UK Clothing industry but most are geared to manufacturers of mass produced garments and retailers.

My thoughts are that if our client positions herself as a provider of these high quality garments and embarks upon an integrated communications programme that we will raise awareness and create demand for the goods.

Marie

Chris, thanks so much once again for your input. Technology has stumped us for a few days due to changing hosts etc for a few days so apologies for my delay in responding. I need to submit our report by tomorrow and am well underway speaking with competitors etc, I just need to think carefully as you pointed out about the content now. I will try to do as you suggest and include enough to show feasibility but not enough to run with - they have now told me the research is part of a grant application so once approved there is funding to roll-out the project so I do need to put some substance in there.

I thought the report could follow this format:

Overview of remit
Summary of findings
SWOT Analysis of concept
Overview of competitors
Overview of customers / target markets
Methodology

Do you think this is enough or would you expand on sections / content?

Kind regards.

Marie

Marie

Just got to this and it may be too late to help...

Content looks good, but I would look at expanding the SWOT out to a TOWS (see my link in first reply for details) and maybe identify one or two crucial strategies for Growth and one or two essential strategies for survival... (Label all these as DRAFT strategies).

The objective here is to show you have the ability not just to analyse but to set strategic direction.

Make it clear this is an early-stage diagnosis/recommendation and the next stage will add the detail essential for execution.

Hope this helps. If you would like me to review and comment on your draft (if time permits) feel free to e-mail me - details via my profile.

Best of luck.

ChrisB

Chris, I had already sent it over in a slightly revised format but touched on TOWS and also strategic development for driving the project and business forward.

Seriously, cheers for the support and advice, really appreciated. Marie

Marie

Best of luck. Do e-mail me off-forum and let me know the outcome!

Chris

Will do, I've taken a note of your email.

Marie