Business Plan for Boaz Trading PLC: T-Shirt Stores Project Project Name: T-Shirt Stores | Total Cost: 27,500,000 ETB | ROI Target: 18% --- ### Executive Summary Boaz Trading PLC, an Ethiopian enterprise, aims to establish a premium T-shirt brand in Addis Ababa, blending local cultural heritage with global appeal through strategic participation in the Cannes Film Festival. With a total investment of 27,500,000 ETB (including 6,875,000 ETB for Cannes activation), the project targets Ethiopia’s growing middle class and leverages international exposure for brand prestige. Financial projections show a monthly cash flow of 412,500 ETB, delivering an 18% ROI. Key strategies include locally sourced materials, tiered pricing for Ethiopian purchasing power, and omnichannel sales. --- ### Mission Statement To empower Ethiopian self-expression through affordable, culturally inspired apparel that bridges local artistry and global trends. ### Vision Statement To become Ethiopia’s leading lifestyle brand, recognized internationally for quality, innovation, and social impact. --- ### Company Description Based in Addis Ababa, Boaz Trading PLC combines Ethiopia’s rich textile heritage with modern design. The T-shirt line will feature two collections: a premium Cannes-inspired line for international markets and a locally priced line for Ethiopian consumers. --- ### Market Analysis - Local Industry: Ethiopia’s apparel market is growing at 7% annually, driven by urbanization and a youth-dominated population (70% under 30). - Purchasing Power: Average monthly income in Addis Ababa is 10,000–15,000 ETB; pricing tailored to affordability. - Opportunities: Rising demand for fashionable, locally made products and Ethiopia’s position as a global textile hub. --- ### Competitive Analysis Competitors: Local tailors (low-cost), international fast fashion (limited presence). Differentiation: - Cannes Collaboration: Exclusivity and global branding. - Ethiopian Sourcing: Cost efficiency and sustainability. --- ### SWOT Analysis - Strengths: Local production, cultural relevance, Cannes partnership. - Weaknesses: Import dependency for premium materials, infrastructure challenges. - Opportunities: Export potential via diaspora, expansion into East African markets. - Threats: Currency volatility, political instability. --- ### Target Market & Segmentation - Primary: Addis Ababa youth (18–35), middle-class professionals (avg. income 10,000–25,000 ETB/month). - Secondary: Ethiopian diaspora, tourists, and international buyers via Cannes. --- ### Product Line 1. Cannes Collection (Premium): - Price: 4,400–8,250 ETB (export/diaspora focus). - Designs: Ethiopian motifs fused with cinematic themes. 2. Everyday Line (Local): - Price: 300–800 ETB (organic cotton, unisex fits). --- ### Pricing Strategy - Local Line: Competitive pricing aligned with purchasing power. - Cannes Line: Premium pricing for international markets. --- ### Marketing & Sales Strategy - Local: Social media campaigns, pop-up stores at Addis events (e.g., Meskel Festival), partnerships with Ethiopian influencers. - International: Cannes pop-up store, collaborations with filmmakers, e-commerce (Shopify/Amazon). - Budget: 6,875,000 ETB for Cannes (25% of total), 3,000,000 ETB for local marketing. --- ### Financial Projections (Year 1) - Revenue: 16,500,000 ETB (Cannes line: 6,600,000 ETB; Local line: 9,900,000 ETB). - COGS: 8,250,000 ETB (50% margin). - Operating Expenses: 7,237,500 ETB (rent, salaries, marketing). - Net Profit: 990,000 ETB (18% ROI on 27,500,000 ETB). - Monthly Cash Flow: 412,500 ETB. --- ### Funding Request - Total: 27,500,000 ETB (equity/debt mix). - Use of Funds: - Cannes Activation: 6,875,000 ETB - Local Production: 11,000,000 ETB - Store Setup (Addis): 5,500,000 ETB - Marketing: 3,000,000 ETB - Contingency: 1,125,000 ETB --- ### Risk Mitigation - Currency Risk: Hedge forex exposure for Cannes expenses. - Supply Chain: Dual sourcing (local + international). - Political Risk: Diversify revenue streams (online/export). --- ### Sustainability & Compliance - Eco-Friendly: Partner with Ethiopian organic cotton farms. - Compliance: Adhere to AGOA standards for export, Ethiopian textile regulations. --- ### Implementation Timeline 1. Q1 2024: Secure suppliers, finalize designs. 2. Q2 2024: Launch Addis store, begin local marketing. 3. Q3 2024: Cannes activation, international sales rollout. --- ### Human Resources - Team: 15 employees (local designers, sales staff, logistics). - Training: Partnerships with Ethiopian fashion institutes. --- ### Milestones & Metrics - 6 Months: Break-even sales (1,000 units/month locally). - 12 Months: Achieve 18% ROI. - 24 Months: Expand to Dire Dawa and Hawassa. --- ### Exit Strategy - Acquisition: Target regional retailers (e.g., Sheba Leather). - Franchising: License brand to East African entrepreneurs. --- ### Technology & Partnerships - E-Commerce: Localized platform with mobile payment integration (TeleBirr). - Collaborations: Ethiopian Textile Development Institute, Cannes organizers. --- ### Appendix - Supplier contracts (Hawassa Industrial Park). - Cannes partnership agreement. - Cash flow projections in ETB. --- This plan positions Boaz Trading PLC to capitalize on Ethiopia’s economic growth while leveraging global opportunities, ensuring scalability and investor returns grounded in local purchasing power.