INDUSTRY PROJECT

(SUSHI SHOP – CLOTHES BUSINESS)

Name: Trần Lê Bảo Ngọc

Chung Nguyễn Phương Uyên
Nguyễn Hoàng Minh Phương
Nguyễn Hồng Đức
Hà Sỹ Thành
Trần Hồng Phát
Subject: COMPANY REPORT
Instructor: Mr. Brian O Reilly
Date: 6/12/2017

Table of Content: 1
1. Executive Summary 2
2. Background 4
3. Research 5
4. Recommendation 7
a) Benefits & Risks of recommendation 7

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 b) Contingency Plan 11
c) Financial 13
d) Action Plan 13
5. References 16
6. Illustration 16
7. Appendices 16

1. Executive Summary
Case study
SUSHI SHOP is a multiple locations brand in Ho Chi Minh City. It was started because
the love of fashion from the owner. It is a small individual business so it has certain advantages
compares other big firms such as limited staff members and easy to manage. Business itself is
doing really well, store’s revenue is about 1.2 billion VND and value gain per year is around 10-
12%. Despite the high revenue, business owner is still having some problems during operating,
which are not having enough online marketing platforms and cash flow problem leads to
inventory turnover issue.
Recommendations
Focusing on online marketing platforms, diversify products and managing cash flow will
be the key to overcome all the problems. At the time SUSHI SHOP only using Facebook as the
engaging tool to the customers with more than 550.000 followers, making it way too busy and
over whelming to finish all the orders at the same time. So Instagram, Google Ads and other
Social medial platforms will be used to increase communication and service to away customers.
Product diversification is also apply to increase sales, more designs will new collection will be
imported on time to serve the high demand customers as well as maximizing their spending at
store. Renting factories will be the plan for the near future to produce unique products under
SUSHI brand and make it widely oversea.

Solutions
SUSHI SHOP will outsource third – party company to do marketing part such as create &
design professional website, manage fan page in other social media platforms such as
Instagram, Zalo, does Facebook, Google ads for about 3 months to make SUSHI brand broadly
in the market. For financial problems, the solution are reduce transportation cost and divide
smaller purchases. In the next coming 10 years, the goal for SUSHI SHOP’s owner is to open
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his own small-scale factory near by the business. The idea is to minimize the production cost as
well as managing inventory flow, instead of being inactively import products from overseas,
which is costly and risky. Shop will also establish its own logo to fight with low quality clothes
and counterfeit products. The product variety and range will expand to attract more women in
larger age and younger age to shop. Promotion and discount, coupons will also be applied more
frequently to bring more customers to engage and become loyal to the brand.
Financials
Because of being a small-scale business, the budget spent for expense in both marketing
and brand promotion is not that high. Instagram and Google Ads are the 2 platforms, which
SUSHIP has to pay the most money for advertising. Budget for total spending in a month for
this campaign is only at 17 million VND, which is very considerable.
Action plan
Observing the trend, SUSHI SHOP sees the opportunity at each holidays coming. The
amount of customers, the time and their spending budget is much higher compares to normal
working day, so SUSHI has set target as well as preparation in both staff service and inventory
to be able to provide enough products for a very high demands of shopaholics in Ho Chi Minh
City. Cash flow and other miscellaneous expense of the store will be tighten down to be able to
invest into a proper factory in the very near future.

2. Background

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Fig 1: “SUSHI SHOP” 2017
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 SUSHI SHOP established in August, 2014 with a small scale store in District 10. SUSHI
SHOP has been established because of the love for fashion of the owner. At first, the store was
working quite not well because of some reasons about the financing and the wrong step when
they decided where to import the products. As the technology is growing, there is easier for
SUSHI to import products from the right suppliers. SUSHI SHOP has 1 main store at 567A Su
Van Hanh, District 10 and 2 branches are located at 479 Le Van Sy, District 3 and 38 Thach Thi
Thanh, District 1. Thanks to the appropriate location and the well training staffs with 5 online
sale persons at the main store and 3 offline sale persons for main store and each branches,
SUSHI SHOP is now running really well. Monthly revenue is around 1.2 billions VND and gain
about 10-15% profit of revenue. The benefits are: SUSHI SHOP is a small independent shop so
it’s easier to control and manage the import, export, revenue and all the staffs. Besides, there’s
also some disadvantages such as they only have 1 fan page on Facebook is the main selling
way, so if there is anything happen to the page, SUSHI will be in trouble. They also have some
troubles in financing when they want to import more products because the money flow is not
really smoothly.

3. Research
 Clothes industry in Vietnam:
According to the survey data, Vietnamese spending on clothing ranked third with 13.9%,
only lower than the expenditure on food (32.9%) and savings (14.9%). This is relatively high
figure compared to the consumption and savings of Vietnamese consumers (“Vietnam’s Textile
Industry”, 2017). In particular, women make up the percentage of choice and buy clothes for
themselves more than men. There are some reasons consumers decide to buy new clothes such
as: after receiving salaries, discounts, prepare to travel or even they just want to buy whenever
they want. So, based on the data, consumers usually purchase for clothes about 2-3
times/month, then 1 time/month. The level of consumer shopping does not differ too much. The
average Vietnamese consumers will spend about 1 million VND for the purchase of clothes in a
month and usually focus on consumers from 30 to 39 years old (Quyen, 2016).
 Competitors:
Vietnam is increasing intergrated day by day, and so the fashion industry. There are more
and more overseas brands want to come and invest in Vietnam such as: Stradivarius, Massimo
Dutti from Spain, Hennes&Mauritz (H&M) from Sweden and it makes the Vietnamese brands
become more difficult to run. The appearance of the big foreign fashion industry not only meet
the increasing demand of consumers, but also create fierce competition in domestic fashion
market.
H&M fashion show opened its first store in Vietnam in early September, causing fever in
young people, attracting more than 4000 people waiting, lining up to buy international branded
products, affordable price. According to experts in the field of fashion, Zara (Spain) set food in
Vietnam, the first day of opening has reached more than 5.5 billion VND. Vietnam is always
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appreciated for the consumption of imported goods, and it’s the advantage that a series of
international fashion brands to pay attention to. Other names are also planning to enter Vietnam
such as: Uniqlo, Forever21, etc. making the market share of domestic textile and garment
enterprise, which have been reduced to the risk of smaller and smaller.
According to the statistics of the Hanoi Supermarket Association: Foreign companies
occupy more than 50% of retail market in Vietnam. The actual number is much larger. There are
80-90% of industries, foreign enterprises. So, this will be a big competitor to SUSHI SHOP
(Anh, 2017).
 SUSHI SHOP:
SUSHI SHOP is a small-scale store which has more than 550.000 followers on Facebook
and gain a lot of trust from customers. SUSHI focus on women from 25 to 40 years old who can
afford for what they want. As you know, SUSHI SHOP is a women only clothing store (dress,
shirt, T-shirt, skirt, pants, etc.), but it also sells shoes and hand bags which give customers more
option to choose and don’t have to go anywhere else to buy a pair of shoes or a hand bag that fit
with the dress. SUSHI SHOP imports products mostly from China and Korean by marine
transport. All products in SUSHI SHOP are carefully selected before it have been decided to
import to Vietnam so the products will have the high quality, good design and the price is some
not really cheap (but the highest price is not more than 1 million VND), that’s why SUSHI
focus on the one that have the ability to purchase for what they want. SUSHI established in
2014, get through a lot of trouble to gain trust from customers. Until now, SUSHI Shop still
trying day by day to improve the staffs in order to bring the good services and new high-quality
products and more promotions to customers.

4. Recommendations
 Advanced Social Media platforms Improving marketing
Creating foundation for launch exclusive
 Google Ad Words SUSHI brand name

 Product Diversification & Renting

factories to product our unique
products  Gaining more customers, having exclusive products
 Instead of importing goods at the same time with quite a lot of products which make
company does have enough money to pay, SUSHI SHOP should divided into 2
purchases to cut the cost  handling financial problems
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 a) Benefits & Risks of recommendations
 Advanced Social Media platforms
 Benefits:
Facebook is the only one media platform that SUSHI SHOP uses to introduce products
and communicate with customers. SUSHU SHOP is lacking of online interfaces to promote the
brand as well as diversify its access to the store. New idea is SUSHI SHOP will innovate the
online shop, no longer just Facebook. The shop should invest money to establish website with
proper domain which allow payment online by credit cards and promote products on all other
media tools such as Instagram, Snapchat and Bigo – live... because people today likely prefer
shopping online than go to physical store more and more. And these social media platforms
very easy to create with the cost is 0đ. Moreover, it offer quite a lot of tools help business sell
products. SUSHI SHOP have already had fan page on Facebook but not use maximum
advertising tools such as Facebook Ads, Boost Post to get more reach. So, the shop must
implement it now.

 Risks:
Choosing the wrong platforms will lose the trust of the customer, the use of promotion,
discount value of the product, not select the right marketing time will waste a lot of money
without bringing more revenue for the shop, marketing wrong subjects, too little marketing, etc.
Moreover, it will waste a lot of money if the shop doesn’t know how to use Facebook Ads
smartly like choose wrong target customers or locations. That makes the ads useless and bring
bad affects to financial of the business.
 Google Ad Words
 Benefits:
When everyone want to buy something, they always search on Google. So, buying
Google ads to advertise products online is can be competitive advantages of SUSHI SHOP than
some other shops. There are many advantages for businesses to buy Google ads, which is the
product, will pop up on the platforms that online users visiting regularly. In addition to the
frequent pop ups will make our customers trust and familiar with the brand of SUSHI SHOP.
 Risks:
Google Ads is a great tool to advertise. But its disadvantages are undeniable. In addition
to paying an expensive cost for pay per click instead of buying whole month/year package like
Internet purchased. Second, small businesses find it hard to compete with big companies, as
these companies can pay huge sums for their advertising campaigns. Robert Kenny from Forbes
writes: “Because larger companies have a consistent cash flow, they can afford to drop well
over $300,000 per month on an Ad Words campaign. They have the resources and time to do
that. This means by the time an up and coming business launches, all of their relevant keywords
have been taken, which in turn, raises the price” (Rampton, 2014).

 Product Diversification & Renting factories

 Benefits:
Product diversification is a key factor in maximizing customer’s spending while shopping
at the store. There are many different clothes of shops that offer a wide variety of choices for
customers, especially those who are demanding variety of products. Study shows that product
diversification works very well: “Diversifying into new products and service lines can provide
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an effective path to fast growth, as you sell more products to existing customers or establish
new markets. But it’s vital to weigh up the risks as well as the opportunities” (“Benefits of
diversification”, 2016). At now, SUSHI just focus on clothes for women from 25 to 40, to
expand the target customers range, the shop should consider about new designs which for
teenagers and young people because they are occupy large percentage in population. When
more and more people know SUSHI brand, love SUSHI’S products as well as the shop having a
large number of loyal customers, SUSHI can easily gain a lot of profit. That money will be used
to rent factories producing exclusive products also launch more branches for SUSHI.
 Risks:
First, it’s difficult to find good suppliers for more new designs for the products
diversification. Second, in the first stages of renting factories to make unique products, it may
not have enough inventory to supply the high peak season, may lose the old customers because
the change of design, materials. Initially the model will be less diverse because the shop can
only sell its brand to reduce the competition and brand assertion, counterfeit goods…

 Adding more products purchases

 Benefits:
It will help SUSHI SHOP reduce the money for each purchase, make the cash flow more smoothly, deduce the burden
of capital rotation. The shop will have cash to solve unexpected situation such as customers give back the products. Too much
stock inventory problem will be minimized. Moreover, with small inventory, SUSHI SHOP can easily control source of goods,
promote the import best – sellers clothes and cut down products not selling well. That is good for a small business.
 Risks:
Because cut down the quantity of products, suppliers will may not give us favorable
price. It will higher than the price before as well as some other fee such as taxes and
transportation cost.

b) Contingency Plan
To push sales and gain more profit, SUSHI SHOP need to spend more money on
advertising base on marketing campaign, advertising & promotion programs.
Because SUSHI SHOP now does not have any experts in running advertising like
Facebook Ads or knowledge about Google Awards, the company will have 2 options. First is
employ who is very good at Digital Marketing, do everything about marketing. The salary for
that person is quite high about 15 million after researching the labor market today. Second is
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outsource third - party company to help SUSHI do market research and marketing.
To be the most
efficient, SU SHI SHOP
should choose combo 3
of AZ TECH because
like their name, they
can help business
marketing from A to Z,
from easy to hard things
such as:

With the help of

reliable company, it will
help SUSHI SHOP to
have good marketing
foundation (“Marketing
service” n.d). After that,
SUSHI may just need to
hire marketer online to
maintain activities on
the website and other
social media platforms.
Secondly,
because the amount of
products we order in
one time is lower than
before so that the
money of each product
will increase. The
solution is we will
negotiate with our
suppliers not increase
the money since we still
pay for one quantity of
products just divided
into 2 purchases to cut
down the cost for each one. Besides, we will order more on some season that we guess will
have more customers such as Luna New Year, Woman day, and before the marketing campaign.
Moreover, we will base on the sale of each product, which one have better sale we will order
more or other products that have the same style. SUSHI should take the goods depend on the
trend of Clothing Industry in order to meet the demand of the customers. On the other side we
will change to pay on credit instead of pay cash to slow down the payment process and use the
revenue of the next month to pay for the last month.
Thirdly, to avoid the risk of having our own brand in clothing industry, we will work with
our designers to have the best logo that is unique and make other can easy to remember the
brand name. Depend on the value proposition and target customers to produce the cloth, test
many time to find down the best product to be our official product. SUSHI shop will have a
good relationship with 1 to 2 factories in order to have the supply that can help us to keep the
product copyright so that our products is always unique in the market. Moreover, the factories
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that we choose should have the flexibility in many situations and have ability to produce more
in some high seasons. Especially, SUSHI shop will work with the government to have the
quality assurance, paperwork, brand licensing before putting the products into the market.

c) Financial
The marketing cost per month will be:
Advertising Costs (VND)
Outsourcing (AZ Tech) 10.000.000
Instagram Ads 2.000.000
Promotion on SU SHI day 3.000.000
TOTAL 17.000.000
d) Action Plan
SUSHI SHOP will use COMBO 3 of AZ Tech to support about marketing segment,
create foundation for viral the brand name and products. Facebook As, Google Ads will make
more and more people know about SUSHI as well as increasing potential customers for the
shop. After 3 months, SUSHI can hire someone to manage the fan page for them because it
already have had good foundation.
Besides Facebook, we will use Instagram Ads because nowadays more and more people
especially they prefer buy and sell clothes on Instagram which has high – quality pictures for
customers to have clearly view about the products they intend to buy. Because Instagram is the
focus of a large number of potential customers, with the ability to spend, along with large
shopping needs, with the number of people are "landing" Instagram is constantly rising,
Instagram social network is being seen by many online shop owners as a new tool to promote
their products and services.
Nearly 50% of users actively search for products on Instagram so shopping needs on this
social network is very large. According to statistics, users on Instagram have good taste and a
higher average income than Facebook. Instagram's natural user interaction rate is ~ 50 times
higher than Facebook, Instagram posts show 100% to users, while for Facebook pages, reach
reaches only 1-5% People like that fan page. So that, sell on Instagram help you reach
customers better (“Why Instagram is better than Facebook”, 2013).
For promotion plan, like many cinemas, they have their own special day to give discount
for customers which call “HAPPY DAY”. So that, SU SHI will choose the grand open day 20 th
of each month to be the special day to give 20% discount for bills over 500 thousand VND or
create some MINI GAME such as comment a number customers like, tag 3 friends in
promotion post on fan page and the luckiest will receive voucher value 200.000 VND. That will
help SUSHI SHOP increasing customers loyalty, get more customers as well as more people
will know about company’s brand.
About SUSHI shop financial controlling, reorder the clothes from supplier each month
instead of 3 month like before, and the amount of the products should not the same all the time
such as: Order more clothes on December to February and on May to August because at these
seasons people will tend to buy more clothes, especially dress which our company have the
strength on (“The best time to buy new clothes”, 2016). This ways can help the company
manage the stock and have money for cash flow. SUSHI SHOP will sign a long-term contract
with our suppliers to show that we will work with them for a long time in order to gain a belief
from them and have a discount. Additionally, to reduce transportation cost, SUSHI must change
to cheaper transportations such as road transport (truck) to save more money.

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 Besides, to achieving exclusive brand in the clothing market, SUSHI SHOP must viral
their brand, raise awareness for everyone about the brand by bring the story of the company to
people (“7 Steps-to-Success for Clothing Industry Start-ups” n.d). That is Vietnamese people
use Vietnamese products and the dream of affirming Vietnamese clothing brand to the world.
Therefore we will regularly have a post everyday on our website about our company and the
reasons why we come up with an ideas to have our own brand so that the customers can
understand and support our brand. Besides, we will recommend the owner of SUSHI shop have
a talk on TV about Start Up to talk about the brand the company, or we will hire famous people
come and PR for us because we know that PR is good for our brand name. Always gain the
knowledge about fashion and the trend of Vietnam Clothing Industry to produce the clothes that
can meet the trend and the demand of target customers and the unique of SUSHI’s products
make the different from our competitors (“How to Start a Successful Clothing Brand: Luck or
Innovative Product?”, 2015). Because brand of a company always go with the quality so each 2
months we will go to the factories to check the production line and have a fashion expert go
with to recommend for changing and having new products. We will focus more on dresses
because we have more sale from selling dresses. Our recommend garment factory is
ANHOASTORE (ANHOASTORE.COM, n.d) because this place have a quality to export
clothes to abroad so that we can trust them to be our partner in the future. Whenever have the
products we will send it as a gift for our loyal customers and ask for their thinking about our
new product. This ways can help the company show that we care about the customers so that we
can build a good relationship with our customers and have a product that meet their need.

5. References
7 Steps-to-Success for Clothing Industry Start-ups” n.d, Entrepreneur. Accessed: 4 th December, 2017 from
https://www.entrepreneur.com/slideshow/299680
Anh H, 2017, “Fierce competition in the fashion market”, Nhan Dan Dien Tu. Accessed: 4th December, 2017 from
http://www.nhandan.com.vn/kinhte/item/34357102-canh-tranh-khoc-liet-tren-thi-truong-thoi-trang.html ﾧ
“Benefit of diversification” 2016, Santander. Accessed: November 30th, 2017 from https://www.santandercb.co.uk/insight-and-
events/news/benefits-diversification
“How to Start a Successful Clothing Brand: Luck or Innovative Product?” 2015, Makersrow. Accessed 4 th
December, 2017 from https://makersrow.com/blog/2015/04/how-to-start-a-successful-clothing-brand-
luck-or-innovative-product
“Marketing service” n.d, AZtech. Assessed 4th December, 2017 from http://marketing.aztech.com.vn/
Quyen P, 2016, “REPORT ON VIETNAM FASHION MARKET PERIOD 2015-2016”, Maybanhang.net. Accessed: 4th
December, 2017 from https://maybanhang.net/2016/12/bao-cao-thi-truong-thoi-trang-viet/ﾧ
Rampton, J 2014, “5 reasons you shouldn’t use Ad Words”, Forbes. Assessed: December 1st, 2017 from
https://www.forbes.com/sites/johnrampton/2014/07/07/5-reasons-you-shouldnt-use-adwords/#38abcf2139db ﾧ

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“The best time to buy new clothes”, 2016, 24h. Accessed 4th December, 2017 from http://www.24h.com.vn/thoi-
trang/nhung-thoi-diem-thich-hop-nhat-de-mua-quan-ao-moi-c78a772307.html
“Vietnam’s Textile Industry” 2017, Study.com. Accessed: 4th December, 2017 from
http://study.com/academy/lesson/vietnams-textile-industry.html
“Why Instagram is better than Facebook” 2013, TechOpti. Accessed 4th December, 2017 from
https://www.techopti.com/why-instagram-is-better-than-facebook/
6. Illustration:
Figure 1: “SUSHI SHOP” 2017
7. Appendices
Link video: https://goo.gl/vog5km

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