COURSEWORK
TRENDS AND OPPORTUNITIES: THE OPPORTUNITY OF OPENING A SECOND HAND BOUTIQUE
2010
TABLE OF CONTENTS
2. Second - hand boutique clothing – a new and exciting business opportunity
2.1. Future projection of second hand clothing trends in Bulgaria
2.2. Evaluation of the business opportunity
The main issue for Bulgarian economy over the last couple of years has been the impact global financial and economic crisis. This negative trend brings on the agenda the new business opportunity of opening a second hand boutique since second hand boutique clothing may be the perfect solution for women who want to be stylish without spending too much money on clothing.
The second hand business is thriving due to the fact that the majority of the population can barely survive with the low incomes, but they still prefer to wear fashionable clothes. In spite of the prejudices that only poor people buy second hand clothes, Bulgarians (especially women) tend to buy quality second hand clothes instead of the cheap Chinese and Turkish alternatives. However, very few of the second hand stores provide quality clothes which creates a certain niche in the market.
Opening second hand clothing store does not require a big investment, as 1 kg of first-quality clothes is worth only 14 levs. Finding such clothes is not difficult as the licensed firms who can import second hand clothing in Bulgaria are 74[1]. The option of enabling women to sell their designer clothes on a commission up to 50 per cent will probably contribute to the profit of such business as it is more likely Bulgarian women to buy clothes with known origin. Although this option will be mutually beneficial for the seller and the commissioner, strict rules for such bargains need to be developed in order this trade to comply with the current legislation.
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The option of enabling women to sell their designer clothes on a commission up to 50 per cent will probably contribute to the profit as it is more likely Bulgarian women to buy clothes with known origin. Although this option will be mutually beneficial for the seller and the commissioner, strict rules for such bargains need to be developed in order this trade to comply with the current legislation.
The overall conclusion is that the trend of people turning to second hand clothing and the emerged business opportunity of opening a second hand boutique can be profitable. Poor economic conditions made people less conservative about wearing clothes used by someone else before them. The social environment can be considered a major contributor to the trend of second hand clothing sector growth. The low average monthly income in the country and the low purchasing power of the population are key factors to the good results of the industry.
The option of enabling women to sell their designer clothes can be a successful complementation of the general idea described above. The PESTEL analysis demonstrates that even if the political, economical, social and legal conditions in Bulgaria worsen, the business can remain profitable, as the industry is one of the very few that can benefit from the crisis. Another advantage of this business is the fact that it does not require a significant initial investment.
1. Culture Grams (2010) [online], http://www.culturegrams.com/products/Bulgaria.pdf [Accessed: 28th April 2010]
2. Bulgaria Will Overcome Crisis in 2010 [online], http://paper.standartnews.com/en/article.php?d=2009-12-31&article=31494 [Accessed: 28th April 2010]
3. Country Profile: Bulgaria (2009) BBC News [online], http://news.bbc.co.uk/2/hi/europe/country_profiles/1059735.stm [Accessed: 28th April 2010]
4. Economic Crisis vs. Bulgaria – Action Required [online], http://eurolink-bulgaria.com/economic-crisis-vs-bulgaria-action-required/ [Accessed: 28th April 2010]
5. Gillespie, A. (2007) Foundations of economics. Additional chapter on business strategy, Oxford University Press [online], http://www.oup.com/uk/orc/bin/9780199296378/01student/additional/business_strategy.pdf [Accessed: 28th April 2010]
6. Secon Hand Boutique [online], http://www.segabg.com/online/article.asp?issueid=722§ionid=5&id=00004 [Accessed: 28th April 2010]
7. Ordinance № 27 of 16 August 2005 on health requirements for second-hand clothes [online], http://www.riokozkn.net/?page_id=27 [Accessed: 28th April 2010]
8. Second hand blouse for 3 levs. Why not? [online], http://www.lovechpress.info/index.php?option=com_content&task=view&id=7756&Itemid=53 [Accessed: 28th April 2010]
9. Unemployment in Bulgaria to soar to 20% in 2010 – industry union [online], http://sofiaecho.com/2010/01/18/843808_unemployment-in-bulgaria-to-soar-to-20per-cent-in-2010-industry-union [Accessed: 28th April 2010]
10. http://www.nsi.bg/otrasal.php?otr=21&a1=31&a2=36&a3=153#cont [Accessed: 28th April 2010]
Темата е разработена 2010 г.
Съдържа таблици.
Най – новата информация е от 2010 г.
Ключови думи:
Second - hand boutique, clothing, business opportunity, low income, poor economic conditions, benefit from the crisis, health requirements
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