Forums: Discussions for entrepreneurs and small business.

Hi,
I`m currently writing a business plan for a new business related to handbags/purses, etc.

However, I`m a bit stumped on the sections which will be entitled:
-Market Research
-Size of Industry
-Key Product Segments
-Key Market Segments
-Key Industry Trends
-Industry Outlook

Can anyone point me in the direction of applicable industry statistics/websites/other information???

Thanks, I appreciate any help.

Hi Eniven,

Briefly
Market research is something you or a company hired by you does about your product, in this case handbags/purses. Do the people in your area use these products? If so what type of bags do they prefer those made out of leather or synthetic materials? Do they tend to buy upscale products or disposable bags? Etc. You want to establish what type of market are you looking at a well established market for this type of product with lots of competition, an undeveloped market were by introducing your products you will be breaking new ground as you go or anything in between.

Size of industry is the industry expressed in dollars over a given period of time. In a year 1,000 handbags are sold for $10,000. Since this is for a business plan you want to narrow it down to a figure that is relevant for your purposes, for instance, while the market size for handbags in the US may be 10 billion dollars annually, if you are going to open a shop in a Mall in a town with 20,000 people knowing that in the US the market size is 10 billion is of little if any use to you. Within the area that your business will serve how many handbags are sold annually? That is the size of the industry you are looking at.

Key products segments, you should divide the handbags market into it’s components, i/e. into leather, cloth, plastics and organic materials as well as upscale/elegant, everyday use etc. of those pick the ones that will be ‘key’ segments for your business. If you will be narrowing your focus to a specific niche mention why.

Key market segments as above but instead of it being focused on your target market in this case you should be talking about the general market. Mention if they are the same as those of your business plan.

Key industry trends, what segments in that market are taking off, or used to be a ‘hot’ area but are now in a downtrend. Is this a temporary situation that you can profit from or is it a more generalized nationwide development. What is happening in that market and why.

Industry outlook, what’s in the future for this market? Are young people taking to handbags or do they find them redundant, for instance watches are in a downward trend as cell phones take off, since the cell phones come with a clock in them the watch is becoming a symbol of a bygone era among young folks.

Explore the links on this search string  also on google type in

Define: business market

do the same with all the others, it should aid you in understanding what you are trying to do.

Cheers,

I thank you very much for your response!

Unfortunately I have a decent idea of what info needs to go in those sections... I just don`t know where to find that info... Appologies if I was not more clear.

Also, one thing I neglected to mention is that my business will be an ecomerce online retail business.

I have been using an online business plan website to construct my business plan... Let me be more specific about the information that the program is requesting:

• Where would I find info on how many handbags/purses are sold worldwide each year? What about in the USA each year? What about online? Also, what are the $$$ figures associated with those sales?
• Where can I find out how fast the handbag/purse industry is growing? Particularly online sales of handbags/purses.
• What is the number of online retailers in my area?
• The program also wants info on key business trends in my industry. I know what that means, but quite frankly, I don`t know what the "key trends" are exactly... Thing is, I`m not sure it the key trends even matter since my business would be somewhat unique compared to some of the others in my area.

Also, I have identified a few related online competitors, but have no idea what their market position is etc or how successful they`ve been in this industry...

Thanks again, and any other suggestions would be greatly appreciated.

Ohh I see, Ok then :-) you need this site to get started, they are not cheap but it`s likely they`ve got the info you are looking for.

I don`t know your market but my guess is that this search will give you the reports you want.

Eniven,

Your new favorite word is "comparable." The best way to find out information about the industry is to look at comparables. Find a competitor who has recently gone public. Read and use their market analysis numbers. They must disclose pretty much everything in order to have an IPO. Most of what you need will be there. Best part - it`s free.

Good luck.


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• Where would I find info on how many handbags/purses are sold worldwide each year? What about in the USA each year? What about online? Also, what are the $$$ figures associated with those sales?
• Where can I find out how fast the handbag/purse industry is growing? Particularly online sales of handbags/purses.

I`d suggest you do some research at your library.  Do you have access to databases through your library such as InfoTrac or anything like that?

• What is the number of online retailers in my area?

By "area" do you mean geographic area?  Seems fairly irrelevant since you are primarily online.  If by area you mean niche, such as "handbags in the $30-$50 range" or "funky handbags for college age girls" or "conservative handbags for professional women" or whatever, than that is totally relevant.

• The program also wants info on key business trends in my industry. I know what that means, but quite frankly, I don`t know what the "key trends" are exactly... Thing is, I`m not sure it the key trends even matter since my business would be somewhat unique compared to some of the others in my area.

I would take key trends to mean...where is the industry headed?  Is leather being phased out as a material for purses in favor of vinyl, or plastic, or license plates?  How many purses per year do customers purchase?  Why do women buy a new purse?  To match a new outfit?  Because they`re bored with the last one?  Just because it strikes their fancy?

Also, I have identified a few related online competitors, but have no idea what their market position is etc or how successful they`ve been in this industry...

Again, some research at your library will help with this.  There are tons of articles, heck, entire publications about the industry.  Read up on them, it will help you immensely.

Let me know if I can help you further.  I`m starting my own market research firm and this is what I do.  Happy to help!  If you don`t have time to do it yourself I`ll do it for you!  I actually have some of this research already, I did a project in grad school for a small purse retailer (brick and mortar, not online) and found some industry info for that.  It`s a bit out of date, but if you like I can shoot you some references to track down.  Let me know.

Kelly

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Kelly -- living the entrepreneurial life one day at a time.

It's important to find out the suppliers in your industry. Only then would you be able to work out the pricing structure. It will be a cut throat industry unless you are able to distinguish yourself from your competitors. You would probably need very strong USPs to do that.

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Seo Consultant | Rattan | Microsoft Dynamics Nav | Autism Singapore | Industrial For Rent | Business Park | Gallbladder Surgery Singapore

Hey,

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Hi there,

I think some of the style social networks would be a great choice for you to find out what people like, what they're buying, etc.

I would create profiles on StyleHive, StyleFeeder, PopSugar and Kaboodle. I think if you check out accessories content there you'll find what you're looking for.

Good luck!

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Susan Rawlings Boutique Search Marketing http://www.spectralcore.com Twitter: susansboutique Facebook: facebook.com/dreampantry Skype: sclarerawlings

When writing a business plan, the Industry section is best organized as two parts: an overview of the industry and a summary of your business' position within the industry.

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