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Fashion Merchandising
Introduction
The importance of expansion of a business’ operations cannot be gainsaid as far as safeguarding the profitability of the business is concerned. This is especially having in mind that the main aim of businesses is to increase their sales volume and, consequently, their profits. In essence, it is always imperative that the business carries out a comprehensive research on the locations where it intends to expand so as to determine the viability of the venture. This relates to the potential demand in the intended location and, consequently, the potential for success in the new location. This paper aims at comparing the various aspects pertaining to Arizona City and California City with regard to the expansion of Classy Seedling. Classy Seedling aims at offering flattering, beautiful, and affordable garments for expectant mothers. The business deals in classic, casual styles that would be appropriate for numerous settings. It has recognized the fact that most expectant women are saving their money for the time when the baby comes. In essence, they offer clothing at retail prices ranging from $45 to $75, in quality and easy-to-care-for fabrics. This paper will compare the social, economic, as well as housing characteristics, and the demographic estimates of the Arizona City and California City.
Arizona social characteristics
Social characteristics of a certain location entail the characteristics of individuals living in that society. In Arizona City, White people make up 73% while the Blacks make up 4.1% of the total population. Alaska native persons and American Indians take up 4.6% of the population, while Asian persons take up 2.8% of the total population. Native Hawaiians and other Pacific Islanders form the smallest percentage of the population, which is 0.2% ( HYPERLINK “http://quickfacts.census.gov/qfd/states/04000.html” http://quickfacts.census.gov/qfd/states/04000.html). The distribution of the races in Arizona means that the business has numerous degrees of freedom as to the clothes that it introduces, which gives it high chances of succeeding in the city.
California social characteristics
The proportion of the white people in California is less than in Arizona. The whites make up 57.6%, black persons, 6.2% and Asian persons 13%, while American Indians and Alaska native persons make up 1.0% of the population. As in the case of Arizona City, native Hawaiians and other Pacific Islanders make up the smallest group in California at 0.4%. Individuals who have more than one race in California City make up 4.9% of the entire population ( HYPERLINK “http://quickfacts.census.gov/qfd/states/06000.html” http://quickfacts.census.gov/qfd/states/06000.html). The multiplicity of races in California City means that the business has chances of succeeding in the city as the idiosyncrasies of one race would not affect the profitability of the business (Rubinfeld and Hemingway, 47). However, the dominance of whites means that they hold the key to the profitability of the business.
Economic characteristics of Arizona City
As at 2007, Arizona City boasted of a total of 491,529 firms, 2.0% of which are owned by blacks while Asians owned 3.3% of them. Hispanics-owned firms amounted to about 10.7% while Alaska natives and American Indians owned about 1.9% of the firms. It is worth noting that 28.1% of the firms in Arizona City are owned by women, which essentially speaks of a considerably high level of women empowerment as far as finances are concerned. It is noteworthy that the households in the city had a median income of $50,448, with only 15.3% of the people living below poverty level ( HYPERLINK “http://quickfacts.census.gov/qfd/states/04000.html” http://quickfacts.census.gov/qfd/states/04000.html). The high percentage of women who own businesses coupled with the low poverty rate show the possibility of high purchasing power, which may signal at high potential for profitability (Rubinfeld and Hemingway, 39).
California economic characteristics
As at 2007, California City boasted of a total of 3,425,510 firms. Spaniards owned a large chunk of these firms at 16.5% followed by Asians who owned 14.9% of the firms. On the other hand, blacks owned about 4.0% of the firms, while Alaska natives and American Indians owned 1.3 percent of the firms. 0.3% of the firms in California City were owned by native Hawaiians and other Pacific Islanders. It is noteworthy that women owned almost a third of the firms in California at 30.3 percent as at 2007. California households have a median income of $60,883, and a poverty level of 13.7%, which is lower than that of Arizona ( HYPERLINK “http://quickfacts.census.gov/qfd/states/06000.html” http://quickfacts.census.gov/qfd/states/06000.html). This makes California to be quite viable for investment since the low poverty rates underline the possibility of high purchasing power (Rubinfeld and Hemingway, 78).
Housing characteristics in Arizona City
Housing comes as a crucial determinant of the viability of a location for business, thanks to the fact that it signals at the economic capabilities of the people of that area. In Arizona, 79.8% of the people were found to have been living in the same for one year and over in the period between 2006 and 2010. As at 2010, Arizona City had a total of 2,844,526 housing units. It is worth noting that, for the period between 2006 and 2010, the house ownership rate in the city was 67.4%, which speaks of financial capability and stability of investment. Out of these housing units, 20.7% of them were in multiunit structures. Notably, the owner-occupied housing units had a median value of $215,000 ( HYPERLINK “http://quickfacts.census.gov/qfd/states/04000.html” http://quickfacts.census.gov/qfd/states/04000.html). Within the same period, the city had a total of 2,326,468 households, with an average of 2.63 persons per household. The high level of home ownership means that people have high chances of remaining in the city, meaning that the market is relatively guaranteed. This cements the viability of the area for expansion (Rubinfeld and Hemingway, 66).
California housing facts
For the period between 2006 and 2010, 84% of the population lived in the same house for one year or more. The city had a total of 13,680,082 housing units as at 2010, with 57.4% of the population owning the housing units. These units housed a total number of 12,392,852 households between 2006 and 2010, with every household being composed of 2.89 persons on average. Within the same period, 30.7% of the housing units were in multiunit structures. The median value of the owner-occupied housing units in California City was almost twice that of Arizona at $458,500 ( HYPERLINK “http://quickfacts.census.gov/qfd/states/06000.html” http://quickfacts.census.gov/qfd/states/06000.html). High population coupled with the high home ownership underlines the economic power of the people in the area, which shows that the area is viable for expansion (Rubinfeld and Hemingway, 45).
Arizona demographic estimates
Demographics refer to the characteristics of the populations of a place. It includes characteristics such as density, size, growth and distribution. Arizona City had an estimated population of 6,482,505 as at 2011, which was an increase from the 2010 population estimates of 6,392,017. The population had increased at a rate of 24.6% from 2000 to 2010. Female persons take up 50.3% of the population ( HYPERLINK “http://quickfacts.census.gov/qfd/states/04000.html” http://quickfacts.census.gov/qfd/states/04000.html). The population between 18 years and 65 years of age takes up 60.7% of the population, which means that most of the people are within the fertile bracket. The percentage increase in population means that there is quite a high migration or birth rate in the city, which makes the city viable for the maternity clothes that Classy Seedlings offers.
California City ACS demographics
California had an estimated population of 37,691,912 as at 2011, which was an increase from the estimated 37,253,956 in 2010. The population has grown by 10% from 2000 to 2010 with people between the 18 and 65 years of age taking up 63.6% of the population. The proportion of females in this city is 50.3% of the total population ( HYPERLINK “http://quickfacts.census.gov/qfd/states/06000.html” http://quickfacts.census.gov/qfd/states/06000.html). These demographics show that California has high potential for sustaining businesses, thanks to the high population especially between the fertile stages of life (Rubinfeld and Hemingway, 34).
In conclusion, the paper aimed at examining the prospects that Arizona City and California City hold for Classy Seedling’s profitability. It has shown that both cities are mostly composed of whites with most businesses owned by Hispanics. As per housing, most of the population in both cities lived in the same house for a year, in the period between 2006 and 2010. This shows that there is relative stability in the cities, which makes them viable for investment. However, it is worth noting that California had a higher median income than Arizona, which means that the people in California may have a higher capability than those in Arizona. In addition, the poverty levels in California are lower than in Arizona, which enhances its viability for investment.
Works cited
United States Census Bureau. California. 2012, Web retrieved 19th June 2012 from HYPERLINK “http://quickfacts.census.gov/qfd/states/06000.html” http://quickfacts.census.gov/qfd/states/06000.html
United States Census Bureau. Arizona. 2012, Web retrieved 19th June 2012 from HYPERLINK “http://quickfacts.census.gov/qfd/states/04000.html” http://quickfacts.census.gov/qfd/states/04000.html
Rubinfeld, Arthur and Hemingway, Collins. Built For Growth: Expanding Your Business Around The Corner Or Across The Globe. New York: Wharton School Pub. 2005. Print
