6 Boutique Management

N. Radhika

epgp books

 

 

 

 

1.   INTRODUCTION

 

Boutique is a fashion villa with collection of enormous designs. To an extent, in recent times the word ‘Boutique’ plays an active role in the day-to-day life. The main attraction is towards the ethnic designs, standard colours, desired patterns and availability of Ready-to-wear garments. Further they sell fashionable goods including apparel, jewellery, handbags, shoes and hair accessories. Many of the boutiques are specialized in producing handmade clothing and customer made apparels.

 

Successful management of the boutique is based on user friendly system. It is the system to manage the clothing, accessories and the accounts associated to the boutique. A boutique can be a successful one by managing it in a correct way. Boutique is a place where the collection of designers is displayed or it is the place where the fashionable garments and accessories are sold.

 

In a simple term, boutique is a place where a particular style of apparel is produced. A clear vision has to be set while opening one’s own store. Research should be made from different sources before opening up a boutique. It starts with the planning of infrastructure, deciding the type of collections, creating one’s own brand, marketing and especially giving importance to good quality fabrics.

 

This chapter presents an overall glimpse about managing a boutique successfully and helps to

  • Understand the factors assisting in starting up of a boutique
  • Analyze the risk factors involved in the running of a boutique

 

2.  AREAS TO BE COVERED IN THIS CHAPTER

  • Want to start up a Boutique?
  •  Mode of Business Structure
  • How to select a name for the Boutique?
  • What are the types of Boutique?
  • Size of the Boutique
  • Location for starting a Boutique
  • Source of Finance
  • Theft Prevention Methods
  • Inventory Management
  •  Human Resource Management
  • Requisite Components for successful starting up a Boutique
  •  Merchandising
  •  Fashion Marketing

 

3. WANT TO START A BOUTIQUE?

 

Opening one’s own store/boutique is a great task and can be accomplished successfully when worked passionately. Financial planning along with high investment is necessary to supply new fashions and designer clothes.

 

Boutiques can be opened by doing a preliminary research on current fashion trends in the fashion field. Branded items or Designer’s work pieces can be sold in a boutique and sometimes one’s own designs can be created and marketed.

 

 

3.1 Factors to be considered Before Starting Up a Boutique:

 

The following factors are to be considered before starting up a boutique;

  • Deciding the type of boutique to be started – Higher End/Lower End
  • Analyzing and studying the customers and their population in that particular area/township where the boutique is to be started
  • Selection of business plan/structure
  • Determining the forms of capital to be invested
  • Getting a Legal advice, obtaining a Business License and consulting with an Accountant
  • Spotting the venue for the boutique
  • Hiring of skilled employees for the boutique
  •   Planning of size, ambience and interiors for the boutique
  • Developing of boutique’s brand – choosing the name and logo
  • Starting up of website and
  • Choosing the popular advertising media and the best forms of promotion.

4. SELECTION OF BUSINESS STRUCTURE

 

The  selection  of  business  structure  is  based  on  two  forms  of  organizations  viz., Non-Corporate Enterprises and Corporate Enterprises. Under Non-Corporate Enterprises, the notable classifications are Sole Trading Concern, Partnership Concern and Joint Hindu Family Firms. Corporate Enterprises function under Government, Private and Co-operative sectors.

 

5. HOW TO SELECT A NAME FOR THE BOUTIQUE?

 

Choosing a name for the boutique is very important and at times strongly linked to the success of the business too. If one wants to stand out, then a boutique name should be chosen so that nobody else could possibly do. The names should be very unique and classy.

 

A list of cool and trendy names should be made and finalized at the end. At times, naming can either make or break a business startup too. Boutique names should be catchy, must not be too lengthy; must be a memorable name; must be specific and clear.

 

6.  TYPES OF BOUTIQUE

 

Boutiques can be generally classified into Higher End boutiques and Lower end boutiques. Further divided into Stand – Alone and Chain. The upcoming fashion trends and sales are analyzed and scrutinized by Fashion Experts, especially a team of fashion merchandisers.

  Stand – Alone boutiques are owned by single ownership and a perfect location whereas Chain boutiques have the ownership by larger companies and widespread locations.

    ▪      High End Boutiques

▪      Low End Boutiques

 

Boutiques are available to all people of different strata, say, for example, the rich people can afford the price and the other one is the place where the people with moderate range can buy the desired collections.

 

6.1 High End Boutique

 

High End Boutique is the place where the top brand collections are displayed starting from infants to adults wear, shoes, sandals etc. with an extreme or expensive cost which cannot be afforded by the moderate people.

 

The Higher End Boutiques collection will be unique with highly stylized designs, top quality fabrics and features based on current trends. These are generally located in metropolitan cities and in fashion centres.

 

7.2 Lower End Boutique

 

A comfortable zone of shopping is said to be the Lower End Boutiques. It also has a wide range of varieties at reasonable cost. A wide range of people depends more on the low end stores which can produce the exclusive designs with desirable price. Designs made for lower priced items are generally sold through mass market retailers.

 

7.    SIZE OF THE BOUTIQUE

 

The size of the boutique is dependent on so many factors such as type of business, type of products to be sold, figuring out the finances, type of market, location availability and type of customers to be targeted etc.

 

8.    LOCATION FOR STARTING UP A BOUTIQUE

 

▪  Ideal location selection is very important for starting up a boutique. Certain factors are to be considered before deciding the location of a boutique. A very successful boutique location aims for lowest unit cost in the production and simultaneously concentrating on the distribution of goods at the right place at right time to the target customers.

 

▪ Selection of place for starting up a boutique highly depends on the availability of raw materials nearby, proper transport facilities, availability of skilled labour, cheaper power facilities and transport facilities. Further it should be focused on the type of target customers

 

▪ Since boutiques are focused majorly on high end customers, it should be started in a place where fashion trends are updated seriously. Sometimes it may be based on the personal preferences such as starting up a boutique in his/her own native place, hiring a land at lower price etc.

 

9.    SOURCE OF FINANCE

 

Knowledge about sources of finance motivates the entrepreneurs to start up a boutique in a confidential manner. Sources of finance include Equities, Debts, Term Loans, Letter of Credit, Debentures, Earnings, Working Capital Loans and Venture Capital Funds etc.

 

10. THEFT PREVENTION METHODS

 

In boutique or clothing stores, the majority of the losses are attributable to retail theft. To avoid this, implementation of Inventory Management is mandatory along with high security systems.

 

Common theft prevention methods adopted in boutiques are;

  • Video Surveillance
  • Burglary Monitoring
  • Panic Buttons
  • Security Mirrors
  • Educating the employees continuously
  • Organizing the boutique properly and
  • Hiring the security guard.

 

12.  INVENTORY MANAGEMENT

 

Inventory Management is a great asset to a boutique. It supervises the flow of goods from manufacturers to ware houses and from these facilities to point of sale.The predominant role is to keep a detailed record of each new or returned product as it enters or leaves a warehouse or point of sale.

 

The employees should be intimated regularly to fold and organize inventory. Further it is very important for staff to maintain continuously an orderly appearance on the sales floor to improve the overall shopping experience.

 

12.1 Inventory Management Process

 

In Inventory Management at boutiques, goods are delivered into the receiving area of a warehouse in the form of raw materials and are put into stock areas. The goods are then pulled from the stock areas and moved to production facilities where they are made into finished goods. The finished goods then will be returned to stock areas and are held before shipment or at times shipped directly to custom.

 

12.2 Inventory Management Techniques and Systems

 

In Inventory Management at boutiques, varied techniques are used to keep the right amount of goods on hand to fulfill customer demands and to operate in a profitable manner. It uses several data to keep track of goods as they pass through the process which includes lot numbers, serial numbers, quantity of goods, price of goods and also the dates when they move through the process.

 

12.3Inventory Management Safety Measures

 

Electronic Tags can be added to prevent theft and accidental loss of memory. Even though many systems are available, this method is commonly used and is activated by sensorsnear the storefront. Beeping of alarms will be made if an inventory product is exited out of the store.

 

13. HUMAN RESOURCE MANAGEMENT

 

Employees are the heart of any business and it goes with organizing boutiques too. Human Resource Managers or Store Managers are responsible for Human Resource Management in boutiques. They have the job of tracking of the employees and failure to do so will lead to financial losses.

 

Store Managers must intercept traffic to schedule enough people for sales and peak shipping hours. Recruitment is an ongoing activity for human resources in the boutiques.

 

14.  REQUISITE COMPONENTS FOR SUCCESSFUL MANAGEMENT OF A BOUTIQUE

 

▪  Determining the types of apparel to keep hold of

▪  Fixing the price

▪  Friendly exposure to labours

▪  Preventing theft and

▪ Tracking of account are the basic components that can be considered for successful running of a boutique.

 

15. MERCHANDISING – RETAIL MERCHANDISING/ VISUAL MERCHANDISING

 

Fashion merchandising is the promotion of sales of apparel goods. Further it involves the tasks necessary to deliver the clothing requests and meet the desires of potential customers and apparel designers. The love for merchandising grows every time. Merchandising is the magical word of the apparel industry. It also plays a vital role in the fashion marketing industry.

 

15.1 Role of Retail Merchandising

 

Retail merchandising in a boutique facilitates the direct selling of fashion apparels, accessories or services to the potential customers. Promotional activities such as window display and fashion event management are undertaken by retailers and they help in assembling of fashion goods from suppliers and wholesalers.

 

15.2 Role of Visual Merchandising

 

The entire appearance of a boutique is determined by means of visual merchandising. Itcan be changed in accordance with seasons, occasions, festivals etc.Selection of themes, arrangements, properties and maintaining a good relationship are the key factors in visual merchandising.

 

15.3 Types of Visual Merchandising

 

The various types of visual merchandising tools adopted in fashion marketing are as follows;

 

▪      Window Display

▪      Interior Display

▪      Lights

▪      Scrolling Advertisements

▪      Attractive Banners

▪      Photographs and

▪      Seasonal Displays etc.

 

15.4 Tools used in Visual Merchandising

 

The significant tools used in the visual merchandising are Mannequins, Hangings, Forms, Stand, Fixtures, Platform, Poles, Accessories, Wall Decorations, Furniture, Sounds, Lights and Fabrics.

 

16. FASHIONMARKETING

 

Fashion Marketing is a type of marketing process where it deals with the buying and selling of apparels and accessories targeting the desires and demands of a prospective customer in a long run.

 

16.1 Pricing

 

Pricing is a key factor in deciding the success of a boutique. Pricing adopted in a boutique is solely based on the production costs involved along with the profit. It varies highly for custom made apparels. Pricing is based on so many factors such as competition, objectives of the boutique, target customers, proposed positioning strategies, market share, demand etc. Premium pricing strategy is adopted by many boutiques.

 

16.2 Promotional Methods

 

Promotional methods are adopted to gather the attention of the people by bringing in awareness, attraction and induce them to buy the product. It also effectively communicates the brand or service offered to the customers.

 

16.3 Personal Selling

 

Personal selling is considered to be a very effective method of marketing in boutiques. Personal selling involves one to one communication with the prospective customers. This technique helps the customers to know the salient features of the apparels especially if it is a designer’s clothing; also induces the customers to go for a trial and creates a persuasive impact on them.

  16.4 Tele Marketing

 

Tele Marketing is a marketing technique adopted in boutiques or clothing stores to create awareness on latest styles and collections through telephone calls and video conferencing systems. Personal interactions are made to communicate with the customers.

 

16.5 Electronic Marketing

 

Electronic Marketing (E – Marketing) is the latest trend of marketing the fashion apparels and accessories through Internet facilities. Creating websites and apps in mobiles supports the customers in E-Marketing and creates a direct link with the Manufacturers or Designers. It brings in faster response and updating of trendy collections is possible in a rapid manner.

 

16.6 Kiosk Marketing

 

Kiosk Marketing is booth like shops arranged in high-traffic areas with the aid of Kiosk machines for attracting people to buy the products. This type of marketing also educates the customers and helps in branding and advertising of apparels and fashion accessories with lots of advantages.

  1. CONCLUSION

Studying of boutique management assists the store owners to experience about buying and merchandising, accounting, marketing, event planning and selling etc. It helps them to gain confidence as an entrepreneur especially for women.Fashion forecasting is an essential process in boutique management and aids in operating a successful clothing boutique. Further working as an entrepreneur in boutiques,Store owners can work with all types of personalities, meet individual needs through listening, develop strong creative problem-solving skills and practical skills.

 

To conclude, owning a boutique enhances the creative and marketing skills of a store owner and further provides monetary benefits.

you can view video on Boutique Management

 

REFERENCES:

 

  • Brianna Stewart (2014), How to Open a Boutique: The Simple Guide to Boutique Success, Create Independent Publishing Platform, Newyork.
  • Leon C.Megginson (2013), Small Businesss Management – An Entrepreneur’s Guide Book, 5th Edition, Mc Graw Hill Educational (India) Pvt. Ltd., New Delhi.
  • H. Kincade, Fay.Y.Gibson (2012), Merchandising of Fashion Products, Pearsons Publications, Newyork.
  • Martin M.Pegler (2002),Visual Merchandising and Display, Fairchild Publications,
  • Sharma R.K., Shashi.K.Gupta (2009), Business Management, Kalyani Publishers, New Delhi.
  • B (2010), Management of Entrepreneurship, Excel Books Publications, New Delhi.
  • Dinkar Pagare (2013), Business Management, Sultan Chand and Sons, New Delhi.

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