Executive​ ​Summary

X&co startup is an online clothing company, which has the designs of simplicity, suitability and
designer-styled targeting on middle and high-income level. ​“X&co” ​signifies unity, consistency,
and a bridge that connects all culture together as one and live in harmony without breaking its
bond. The company will be targeting educated people with a high sense of fashion style. As for
now, the company will only focus on managing an e-commerce with the plan to strengthen it
with a brick-and-mortar store in the future. The company will promote through the platform of
local​ ​famous​ ​Instagrammers​ ​and​ ​through​ ​the​ ​use​ ​of​ ​social​ ​media​ ​advertising​ ​and​ ​e-newsletter.

Section​ ​1​ ​Value​ ​Proposition

X&co sells clothing that uses 100% cotton. The company’s goal is to create a T-shirt that is
quick, convenient and fashionable to be worn anytime, anywhere, any occasion. Besides, the
T-shirt​ ​is​ ​not​ ​just​ ​a​ ​garment;​ ​it’s​ ​a​ ​projection​ ​of​ ​a​ ​lifestyle,​ ​culture​ ​and​ ​homeland.

X&co ​is adopting the new high technology from Hewlett-Packard (HP), by using the printing
sublimation method, which eliminates the liquid phase during T-shirt printing. This technology
allows the prints on the T-shirt to be durable to withstand thousands of washing. The printing
will gives off photo-like quality, due to the significant high printer resolution in the market. The
technology is cost-effective to only produce a small batch of T-shirts, which allows us to keep
selling new designs in-store. The company may just be the pioneer in the online fast-fashion
business​ ​due​ ​to​ ​the​ ​new​ ​technology.
Section​ ​2​ ​Business​ ​Model

X&co is selling using the model business-to-consumer (B2C). Hence, the company has no
intention in doing wholesaling business yet. Collaboration with other business may be viable
provided​ ​that​ ​both​ ​business​ ​interests​ ​are​ ​the​ ​same.

The company will be targeting all the educated people with high sense of fashion due to the
nature of T-shirt designs, which are quite sophisticated. Not only that, the children market is also
covered as a part of Generation Y today is already a parents and may want to have the same shirt
as​ ​a​ ​family.

To ensure quality, the company will only source from the trusted supplier, which allows the
company to get a low bulk price. Since the T-shirts sold are only white and black in colors, it is
more​ ​untroubled​ ​to​ ​get​ ​a​ ​lower​ ​price​ ​from​ ​the​ ​supplier.

Section​ ​3​ ​Market​ ​Analysis

X&co ​operates in a clothing industry, which has been seen with a steadily increasing demand by
the locals. Not only that, the country is also slowly adapting the e-commerce culture, which
makes​ ​the​ ​company​ ​more​ ​favorable​ ​in​ ​conducting​ ​online​ ​clothing​ ​business.

The existing competitors needed to be faced by the company are namely Stoned & Co, TNTCO
and Supercrew. Those named had already established a name for themselves. Hence, ​X&co
needs​ ​to​ ​emerge​ ​as​ ​a​ ​new​ ​brand​ ​to​ ​be​ ​accepted​ ​by​ ​the​ ​same​ ​target​ ​market.

Consequently, the targeted market would be people around Klang Valley, at the age of 13-45,
and well educated. This is because the company finds that they are the market that will most
likely​ ​to​ ​accept​ ​this​ ​high​ ​fashion​ ​designed​ ​by​ ​X&co.

Section​ ​4​ ​Marketing​ ​&​ ​Sales

X&co​ ​has​ ​plan​ ​to​ ​drive​ ​traffic​ ​to​ ​the​ ​e-commerce​ ​site​ ​by​ ​the​ ​following​ ​methods:

1. Online​ ​Advertisement

The company will target high commercial intent keywords as part of the paid search strategies.
Some of the keywords will be “trending”, “clothing”, “local” and more. It is said that building
new​ ​brand​ ​on​ ​an​ ​online​ ​platform​ ​is​ ​much​ ​more​ ​effective​ ​than​ ​the​ ​traditional​ ​advertising​ ​method.

Paid search marketing is adopted in the business strategy to advertise within the sponsored
listings of a search engine by paying for each time ​X&co​’s advertisement is clicked
(pay-per-click).

2. Social​ ​Media

As mentioned briefly in the ​Executive Summary​, the company will be borrowing the use of the
local famous Instagrammers to help promote ​X&co​. This is because they have high influential
and​ ​much​ ​more​ ​effective​ ​to​ ​create​ ​awareness​ ​for​ ​a​ ​new​ ​brand.

In addition, the company will also advertise through the online social media platform such as
Facebook,​ ​Twitter,​ ​Instagram​ ​and​ ​so​ ​on​ ​as​ ​these​ ​social​ ​media​ ​has​ ​a​ ​very​ ​high​ ​traffic​ ​rate​ ​daily.

As a result, the company may put aside approximately RM1000 to RM2000 monthly for the
advertising​ ​fees.

Section​ ​5​ ​Technology

With much consideration and evaluation, ​X&co has decided to integrate the following
technologies​ ​into​ ​the​ ​e-commerce​ ​site,​ ​which​ ​are:

1. Shopping​ ​Cart​ ​–​ ​Shopify

The reason for choosing Shopify is due to its easy accessing for a beginner e-commerce starter to
navigate and use. Not only that, Shopify supports many online payment methods which will ease
the​ ​payment​ ​of​ ​consumers​ ​in​ ​the​ ​future.

2. Payment​ ​Processor​ ​–​ ​Paypal,​ ​2Checkout

Emerged as one of the safest payment method, Paypal has successfully allowing the global
citizens to utilize it. Hence, it may also help expanding the business into worldwide. Besides,
2Checkout​ ​is​ ​also​ ​one​ ​of​ ​the​ ​accepted​ ​payment​ ​methods​ ​in​ ​Malaysia.

3. Fulfilment​ ​Centre​ ​–​ ​Local​ ​Mailing​ ​Service

The company will be employing the national postage service – Poslaju, to deliver all the parcels
to the consumers. The mailing company has been receiving good compliments yet many sellers
choose​ ​to​ ​deliver​ ​through​ ​this​ ​company​ ​as​ ​well.

4. Social​ ​Media​ ​Planning​ ​Tools​ ​–​ ​Hootsuite

As social media is one of the company’s essential marketing method, Hootsuite is suitable to
manage several social media accounts all in the same dashboard. Hence, simplifying the work
done.​ ​Besides,​ ​posts​ ​can​ ​also​ ​be​ ​scheduled​ ​accordingly​ ​without​ ​physically​ ​posting​ ​it​ ​on​ ​time.

5. Newsletter​ ​–​ ​Mailchimp

Mailchimp allows newsletters to be designed quickly and artistically in a short period of time.
With the build-in template and the designs available, it is able to create different designs each
time​ ​when​ ​sending​ ​out​ ​e-newsletter.

6. Customer​ ​Loyalty​ ​Program​ ​-

Consumers will be awarded points every time when they purchase using their registered account.
For each RM10 spent, 1 point will be awarded and the points can be used to buy ​X&co selected
items.

Section​ ​6​ ​Products​ ​and​ ​Services

X&co produces T-shirts with the use of the latest HP printer which gives the highest resolution,
hence the image on the T-shirts are in its finest form. By using the sublimation method, the ink
sublimates itself from a gas matter to a solid matter. Thus, allowing the printing to withstand
through​ ​thousands​ ​of​ ​washing.
Not only that, ​X&co will constantly designing new printings to allow fast-fashion. On top of that,
the company will also offer seasonal designs such as Malaysia Day edition, Halloween edition,
Christmas​ ​edition​ ​and​ ​more.​ ​This​ ​is​ ​so​ ​that​ ​the​ ​consumers​ ​can​ ​get​ ​various​ ​offerings​ ​from​ ​X&co​.

In the long term, ​X&co will roll out customization option to allow consumers to be able to design
their personal T-shirts. This benefit is attributed by the high technology of the HP printer which
allows​ ​low-cost​ ​printing​ ​and​ ​yet​ ​high​ ​quality​ ​images​ ​to​ ​be​ ​offered​ ​to​ ​the​ ​consumers.

Section​ ​7​ ​Financial​ ​Management

Managing an e-commerce generally saves a massive cost as it does not requires a high start-up
cost like the traditional physical store business. Hence, ​X&co first needs approximately
RM12,000 to cover the initial cost. Not only that, it is projected that in the fourth month the
company will achieved break-even and earning profit by that time. Below are the full details of
the​ ​projected​ ​financial​ ​information​ ​of​ ​the​ ​company:

Month 1 2 3 4 5 6

RM RM RM RM RM RM

Sales 6550 9825 13100 19650 22925 26200

Less:​ ​Expenses

Fixed​ ​Expenses

Salary 3900 3900 3900 3900 3900 3900

Software​ ​Fees 300 300 300 300 300 300

Office​ ​Rental 2055 2055 2055 2055 2055 2055

HP Printer 500 500 500 500 500 500

Rental

Variable
Expenses
Raw​ ​T-shirts 400 600 800 1800 2100 2400

Ink 300 300 450 500 500 500

Utility​ ​Bills 3000 4000 5500 5790 6800 6800

Delivery​ ​Fees 1000 1500 2000 3000 3500 4000

Net​ ​Income -4905 -3330 -2405 1805 3270 5745