A screening the business idea and business model for ~Climate Control Clothing~
Introduction
Technology gives us more reasons to smile and more ways to make life easier. Climate control clothing is technology in the clothing industry that helps you keep warm even when it is cold and cools you up when it is cold. Many people have not experienced this, which makes it a good idea to venture into climate control clothing business. In a bid to embrace technology and make a profit out of it, climate control clothing provides a solution to everybody, young and old. This paper analyses in depth, climate controlled clothing as a business idea considering the risks involved and what investors stand to gain. The paper is a guide into the business and provides detailed information on the potential growth of climate control clothing as a business and its financing requirement. This paper will also provide supporting details on how to grow this business venture.
Original Business Idea
Climate control clothing is a business idea that aims at taking advantage of few manufacturers of the product in the market. Manufacturing and controlling the supply of this product, to control and fully eliminate unauthorized intermediaries in the supply process. The business idea in climate control clothing is providing light wear that is made from advanced fabrics.
Clothes made using this technology provide solutions and comfort in varying climatic conditions, cooling effects when it is hot and warm when the weather is cold. The main idea and concept behind this clothing is to make you comfortable in all weather conditions. For companies, this will help reduces the rate of absenteeism by employees caused by unpredictable weather thus maintaining the production curve.
Together with providing a solution to working in varying weather conditions, climate control clothes are fashionable. The clothes are designed in different styles to bring out individuals sense of fashion. The business should manufacture customized clothes on request of customers, to suit individual tastes and preferences.
The need to provide fashionable wear using the current technology to provide solutions both to individuals and corporate organizations led to the idea of climate control clothing as a business venture. The idea furthers main use of clothing to provide a unique quality of clothes.
Product Description
Climate control clothing is a general word used to refer to all types of clothing that are manufactured using special type of fabric. The purpose of using this special fabric to manufacture the clothes is to make clothes that are suitable for wear in different climatic conditions. As the name suggest, climate control clothing helps you adapt in different environments with different climatic conditions. The clothes can be worn by anybody despite their age, gender, size or body weight and shape.
Attire made from the special fabric provides both cooling and warm effects depending on the current climate; this means, you feel cooler when it is hot and warmer when it is cold. Simply, these clothes provide effects similar to an air conditioner keeping your body temperature at a balance.
The special fabric is designed using Nano technology, making the products extremely advanced. Any type of attire can be made from this fabric, including jackets and scarfs. Vests and hats too can be made from this fabric; entire body attire can be manufactured using the special fabric. Climate control clothing should not be ironed and is dirt free bringing a different concept away from traditional clothing. The product brings an entire change in the clothing industry, where designs are incorporated with the latest technology to serve the same purpose.
Value Proposition
The need to have clothes that help people adapt to different climatic conditions exists. Manufacturing clothes using the special fabric technology meets the need of having clothes that help in maintaining body temperature in varying weather conditions. The clothes manufactured need to provide similar solutions to different people, different sizes and designs need to be manufactured. To meet specific individual needs, customization of the clothes should be provided as a service to take care of specific needs.
Climate control clothing provides the solution to children who fall sick during cold seasons and miss school. The same also applies to workers whose productivity lowers and rates of absenteeism rise during periods of harsh climatic conditions. The need to have light worn that can help individuals to withstand different climatic conditions will be met, by manufacturing clothes that are light and easy to clean.
The need will be met through using the Nano fabric technology to manufacture all types of clothes. Clothes that are casual wear and clothes that are office wear will be manufactured using the fabric. Distribution and sales are to be made worldwide to reach out to all continents and provide this unique product.
Business Model
The business idea arises from the need to use technology in designing fashionable wear. There is a general need to have clothes that an individual feels comfortable in and can work efficiently in during all-weather conditions.
During cold weather, people wear heavily in order to keep warm; they also drink hot fluids to maintain body warmth. During extremely hot weather, people wear light clothes in order to keep cool and allow air circulation in their body. The concept of climate control clothing provides a balance to all this using special fabric to design clothes that provide air conditioning solutions. Maintaining a regular body temperature that is recommended at the same time feeling comfy and flexible is the advantage of these clothes.
Due to the need to maintain productivity throughout the year, regardless of the climatic conditions this concept provides a long lasting solution. Fashion embraces technology through the design of clothes that act as air conditioners. The criteria implemented using this concept is the utilization of advanced resources to create long lasting products, moving away from conventional.
Need exists to provide these kind of clothing, this creates need for the product. The technology has not been used widely and being among pioneer companies to manufacture the product gives a competitive advantage.
Market size and Growth
The product has a wide market segment due to its ability to cater for the needs of all individuals. The initial target of climate control clothing is to produce for all kinds of people. The market is large enough to provide profits to the business venture, by targeting all people who wish to dress comfortably under any weather. The business should maximize on profits by taking advantage of the economies of scale, purchasing of the Nano technology fabric in large quantities. Use mass production to minimize on the costs of production and achieve a wide profit margin.
The market has a growth potential, to expand and provide products for pets. Coats for puppies and other pets can be manufactured using the same technology. These products will serve the same purpose; to maintain a steady body temperature balance. Growth to this level will ensure that the product remains relevant in the market at all times and makes profits from the venture. To ensure product growth, continuous research and use of technology will be conducted by the business to ensure that the product satisfies future needs.
Competitive advantage
The business will stand out from other competitors in the industry by providing customer level services. Customization and designing products that are specially requested by customers will be our competitive advantage. Taking time to cater to a customer’s specific needs and implementing the requested designs for individual customers besides producing standard clothes for the general market.
The business will continuously conduct research on the product to enable further advancements on the product. This will ensure that new products are introduced into the market and give competition to those that will have stayed for too long in the market.
Affordable costs of the final product; offering the product at an affordable price having put into consideration production costs and ensured a wide profit margin product prices will be set. The business will compete with other companies in the industry by offering the product at affordable prices.
Offering direct distribution to worldwide stores will eliminate intermediaries who break the link between the manufacturer and the customer. Having direct contact with the customers will enable the business to get immediate feedback about the product from the customers. This will also help create good customer relations which will help the business understand the customer in a better way. This gives competitive advantage to the business over other players in the industry.
Management
The business venture will require two different types of managers;
Business Manager- this is the entrepreneur who has invested into the business. The business manager is well informed on the technologies used and is the major source of financing for the business. The greatest financial risk lies on him/her, the manager will determine who to hire and other aspects regarding the venture. The main role of the business manager is to be the business leader, to guide the direction of the business using his/her wide knowledge on marketing and business management.
Production Manager- he/she will be responsible for all steps of production. The production manager will lead the production team in the production process. Other roles include leading the research team to conduct more research on advancement of the product. The production manager will require sound knowledge on the fabric technology being used and ratios of production.
The business and production managers must work together for the business to full achieve its potential. Communication between the two managers must be clear to avoid business losses and present the business in good light.
Revenue/Growth projections
The product is expected to go through different stages of growth from its introduction into the market to the level of it being financially viable.
During the first stage the product will be introduced into the market. Here the business will incur high costs of production and low profits since the product will be new to the market and more costs will be spent on advertising and product promotion.
The second stage will be the growth stage of the product. The target market will be aware that the product exists due to the advertising done in its first stage. Here the product will bring profits to the business as sales will increase.
The final stage will be the stage of product maturation. Here the product will be widely known in the market and will have existed for some time. At this point the business returns will be high and profits will be achieved. This is when the business can be termed as a financially viable business venture.
The duration spent in each of these stages by the product depends on target reception on the product. When the business is a financially viable venture it will be able to cater for all its needs and have a high profit margin.
Financing requirements
The business venture needs to be financed through personal savings and collections by the business manager, who is the entrepreneur. Borrowing from financial institutions is another way of financing this business venture. Financial assistance is offered by financial institutions after the viability of the business idea is tested.
After achieving its short term growth targets and when need to expand arises, the business may sell shares to the public and register as a company to increase its financial resources. Selling shares will help a business pull more money together and serve its expansion costs.
Summary
The product life cycle is a theory that indicates the stages that a product goes through to fully penetrate into the market. Climate control clothing will undergo similar stages to all other products because it is new to the market. It has to be introduced to the market, where the business will incur huge costs in running advertisements and making the product popular.
The second stage of the product will bring an increase in sales and increase in returns from the product. Finally the product will reach a level of maturation where there will be full maximization of potential.
References
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