If you are planning to write the Undergarments business plan on your own, then this sample Undergarments business plan can be great for guidance. However, if you are looking for a professional business plan writer for a business loan, SBA loan or to find out the possibility of success for your new business then let’s talk!
Executive Summary
Overview: Le Bustiere Store is a new European-inspired lingerie boutique in Washington, DC, with a wide range of brands, styles, and sizes not presently accessible in the city. Our lingerie business in Washington, DC, strives to give excellent customer service. Fashion-forward trends, comfort, and fit are all things that we are enthusiastic about. You’ll be able to complement your style with a utilitarian bra or a piece of Parisian lingerie. We can indeed find something to fit your body shape or style, almost as if you had a personal lingerie stylist.
Mission: To make a difference in the world by assisting women in realizing and expressing their desire to be beautiful. Le Bustiere Boutique hopes to do this by combining professional and individualized customer care with high-value-added items that cater to the demands of women all over the globe.
Vision: To be the market leader in underwear and build a profitable business that allows employees to impact society positively.
Industry Overview: Underwear accounts for 4% of all women’s clothing sold online in the United States and the United Kingdom. While this may seem little, lingerie is predicted to be valued at $78.66 billion globally by 2027, making that 4% worth having. Lingerie is one of the few categories that has changed dramatically throughout time. The epidemic exacerbated the trend’s already-popular comfort, putting soft cup shapes front and center. Viral DTC companies like Parade and SKIMS have responded to consumer demand for diverse sizes and hues, compelling traditional players to either step up or fall away. To succeed in this market, merchants must promote sustainability and variety and be price-flexible in response to a dynamic market that is now being squeezed by inflation.
Financial Overview:
Financials is one of the most important sections of a Undergarments business plan. You can get an idea of your projected revenue, required investment amount, is the business sustainable without additional funding, etc.
Financial Highlights:
| Liquidity | 2020A | 2021A | 2022F | 2023F | 2024F |
| Current ratio | 6 | 12 | 23 | 32 | 42 |
| Quick ratio | 6 | 11 | 22 | 31 | 40 |
| DSO | 8 | 8 | 8 | 8 | 8 |
| Solvency | |||||
| Interest coverage ratio | 8.2 | 11.1 | 14.2 | ||
| Debt to asset ratio | 0.01 | 0.01 | 0.2 | 0.18 | 0.16 |
| Profitability | |||||
| Gross profit margin | 51% | 51% | 53% | 53% | 53% |
| EBITDA margin | 12% | 14% | 21% | 22% | 22% |
| Return on asset | 5% | 6% | 13% | 14% | 14% |
| Return on equity | 5% | 6% | 16% | 17% | 17% |
FUND USAGE
Industry Analysis
The industry analysis section of the Undergarments business plan will help you get better insights into competitors, market growth, and overall industry prospects. You can order a custom market research report for your Undergarments business.
Despite the reintroduction of events, comfort is still in high demand, with retailers boosting their investment in sports bras by 9% and bralettes by 4% year over year. Push-up bra sales have dropped 15% year over year and 25% year over year since 2020. Diversity must be incorporated into all elements of a retailer’s operations, not simply as a checkbox. Nude underwear in darker hues now accounts for 56% of skin-tone underwear in the United States, up from 42% a year earlier. On the other hand, the UK is deficient, with 72 percent of nude items being softer beige shades.
While working on the industry analysis section of the Undergarments business plan make sure that you add significant number of stats to support your claims and use proper referencing so that your lender can validate the data.
The lingerie industry in the United States was worth around 6.87 billion dollars in 2018, and it was expected to grow to 11.36 billion dollars by 2025. In 2018, the worldwide lingerie retail industry was estimated to be worth $29.84 billion.
Due to decreased demand and restricted income sources resulting from shop closures, revenue for the Lingerie Stores business has been revised to shrink by 8.1 percent in 2020. Industrial revenue is expected to climb by 4.4 percent in 2021 as shops reopen at full capacity and demand for industry goods increases. Because the bulk of lingerie is made in other countries to save money, the industry’s buying prices are projected to vary, resulting in erratic profits.
Undergarment, often known as intimate underwear, is the clothing worn near the skin or beneath other clothing. Bras, underpants, sleepwear and loungewear, Shapewear, and other intimate underwear goods are grouped into four key product areas. L Brands, Hanes Brands, Berkshire Hathaway (Fruit of Loom), PVH, American Eagle (Aerie), and others are leading participants in the global intimate underwear market. The top five producers control about 70% of the global market. With a market share of over 25%, China is the biggest market, followed by Europe and North America, which each have a market share of approximately 50%. Bras is the most popular product, accounting for approximately 35% of total sales. Specialty stores, followed by department/general merchandising stores, are the most common use.
Lingerie shopping changed dramatically throughout the epidemic. Before the epidemic, women preferred to buy innerwear from physical shops where they could see, feel, touch the items, and put them on in certain cases. As a consequence of the COVID-19 outbreak and subsequently required lockdowns, customers’ purchasing patterns shifted. Many women resorted to internet shopping for their underwear due to the epidemic, where they could discover a broad assortment of designs at low costs and have them delivered to their homes. They had greater privacy as a result of this option.
Brassieres, knickers, Shapewear, and other types of lingerie make up the worldwide lingerie market. Because of the increasing availability of fabrics and constant technological developments, the brassiere sector is predicted to have the biggest market share at the start of the projection period. Furthermore, variables such as laser-cut, seamless, model, and full t-shirt brassiere and the integration of elastic laces, pleated polyester, tulle, and microfiber materials are likely to solidify the latter segment’s dominating rise throughout the forecast period.
According to Technavio’s recent market research analysis, the lingerie industry has the potential to expand by 64.48 billion dollars between 2020 and 2024. During the projection period, cost advantages for online retailers will be critical in driving the global online lingerie market’s development. The popularity of online lingerie has accelerated in recent years as the number of working women has risen. In addition, the availability of regular discount offers, a diverse stock selection, and simple return and exchange procedures have enticed many women to shop online. Furthermore, internet retailers include measuring instructions to assist ladies in selecting the right kind, style, and size. Several such advantages fuel the market’s expansion.
The worldwide lingerie market is divided into specialty shops, multi-brand stores, and online distribution channels based on distribution channels. Due to expanding features such as trail facilities and quick scanning of items in real life, the multi-brand shop category is predicted to have the biggest market share at the start of the projection period. Because of a growing online customer base and an expanding number of online merchants launching their brands and presence, among other factors, the online category is predicted to develop at the quickest CAGR throughout the projection period.
According to the analysis, Europe is expected to account for the largest market share at the start of the projection period due to a growth in the presence of key firms in the area and rising demand for premium and luxury items, among other reasons. Furthermore, factors such as increasing attention to designs and quality by major market players and a rise in the number of limited-edition items will aid in extending the lingerie industry’s footprint at the start of the forecast period. Increased product availability and a rise in the number of online and offline distribution channels would lead to an increase in the lingerie market’s customer base at the start of the forecast period.
Marketing Plan
A key part of the marketing plan in a Undergarments business plan is the marketing budget. The growth in the number of customers is proportional to the budget and dependent on the CAC.
Website: Le Bustiere Boutique’s website allows you to look for all our products and purchase them online.
Social Media: Le Bustiere Boutique Facebook and Instagram page is an efficient channel to establish good communication with our customers.
Email Campaigns: When someone purchases from our online store, we will send newsletters and some offers to encourage customers to return to Le Bustiere Boutique’s online store.
Content marketing: Le Bustiere Boutique will be posting original, high quality and attractive content to encourage customers.
Influencers: Influencers are gaining popularity on social media. Having them mention Le Bustiere Boutique’s products in their videos will help market our product.
Organogram:
Financial Plan
This section of the Undergarments business plan helps your lender figure out whether you will be able to pay off the loan, whether the business is sustainable, what are the growth prospects, etc.
Earnings:
Break-Even Analysis:
Income Statement:
| 2020A | 2021A | 2022F | 2023F | 2024F | |
| ANNUAL REVENUE | |||||
| Item 1 | 9,217 | 59,117 | 175,410 | 415,277 | 781,357 |
| Item 2 | 34,701 | 222,558 | 660,368 | 1,563,394 | 2,941,580 |
| Item 3 | 4,067 | 19,561 | 46,432 | 78,519 | 114,905 |
| Total annual revenue | 47,985 | 301,236 | 882,211 | 2,057,189 | 3,837,842 |
| % increase | 528% | 193% | 133% | 87% | |
| COST of REVENUE | |||||
| Item 1 | 360 | 2,259 | 6,617 | 15,429 | 28,784 |
| Item 2 | 480 | 3,012 | 8,822 | 20,572 | 38,378 |
| Item 3 | 52,000 | 65,000 | 78,000 | 91,000 | 104,000 |
| Item 4 | 720 | 3,615 | 8,822 | 16,458 | 23,027 |
| Item 5 | 140,000 | 336,000 | 560,000 | 840,000 | 1,120,000 |
| Item 6 | 60,000 | 144,000 | 240,000 | 360,000 | 480,000 |
| Item 7 | 32,000 | 61,333 | 85,533 | 112,153 | 141,435 |
| Total Cost of Revenue | 285,560 | 615,220 | 987,794 | 1,455,612 | 1,935,625 |
| as % of revenue | 595% | 204% | 112% | 71% | 50% |
| Gross Profit | -237,575 | -313,984 | -105,583 | 601,578 | 1,902,218 |
| SELLING & ADMIN EXPENSES | |||||
| Item 1 | 28,000 | 96,800 | 154,880 | 175,692 | 193,261 |
| Item 2 | 75,000 | 105,000 | 120,000 | 120,000 | 120,000 |
| Item 3 | 36,000 | 96,000 | 108,000 | 120,000 | 120,000 |
| Item 4 | 8,000 | 12,000 | 12,000 | 12,000 | 12,000 |
| Item 5 | 3,839 | 18,074 | 44,111 | 61,716 | 115,135 |
| Item 6 | 3,359 | 12,049 | 26,466 | 41,144 | 76,757 |
| Item 7 | 5,600 | 10,000 | 12,904 | 15,034 | 17,376 |
| Item 8 | 6,667 | 14,000 | 22,067 | 30,940 | 40,701 |
| Total selling & admin expenses | 166,464 | 363,924 | 500,428 | 576,525 | 695,230 |
| as % of revenue | 347% | 121% | 57% | 28% | 18% |
| Net profit | -404,039 | -677,907 | -606,011 | 25,052 | 1,206,987 |
| Accumulated net profit | -404,039 | -1,081,947 | -1,687,957 | -1,662,905 | -455,918 |
Cash Flow Statement:
| 2020A | 2021A | 2022F | 2023F | 2024F | |
| CASH FLOW from OPERATING ACTIVITIES | |||||
| Net profit before tax | -$404,039 | -$677,907 | -$606,011 | $25,052 | $1,206,987 |
| Depreciation | $44,267 | $85,333 | $120,504 | $158,127 | $199,512 |
| Payables | |||||
| Item 1 | $4,333 | $5,417 | $6,500 | $7,583 | $8,667 |
| Item 2 | $11,667 | $28,000 | $46,667 | $70,000 | $93,333 |
| Item 3 | $6,250 | $8,750 | $10,000 | $10,000 | $10,000 |
| Item 4 | $3,000 | $8,000 | $9,000 | $10,000 | $10,000 |
| Item 5 | $667 | $1,000 | $1,000 | $1,000 | $1,000 |
| Total payables | $25,917 | $51,167 | $73,167 | $98,583 | $123,000 |
| change in payables | $25,917 | $25,250 | $22,000 | $25,417 | $24,417 |
| Receivables | |||||
| Item 1 | $320 | $1,506 | $3,676 | $5,143 | $9,595 |
| Item 2 | $360 | $1,807 | $4,411 | $8,229 | $11,514 |
| Total receivables | $680 | $3,314 | $8,087 | $13,372 | $21,108 |
| change in receivables | -$680 | -$2,634 | -$4,773 | -$5,285 | -$7,736 |
| Net cash flow from operating activities | -$334,536 | -$569,958 | -$468,280 | $203,311 | $1,423,180 |
| CASH FLOW from INVESTING ACTIVITIES | |||||
| Item 1 | $16,000 | $13,200 | $14,520 | $15,972 | $17,569 |
| Item 2 | $20,000 | $22,000 | $24,200 | $26,620 | $29,282 |
| Item 3 | $28,000 | $22,000 | $14,520 | $10,648 | $11,713 |
| Item 4 | $96,000 | $88,000 | $72,600 | $79,860 | $87,846 |
| Item 5 | $20,000 | $22,000 | $24,200 | $26,620 | $29,282 |
| Net cash flow/ (outflow) from investing activities | -$180,000 | -$167,200 | -$150,040 | -$159,720 | -$175,692 |
| CASH FLOW from FINANCING ACTIVITIES | |||||
| Equity | $400,000 | $440,000 | $484,000 | $532,400 | $585,640 |
| Net cash flow from financing activities | $400,000 | $440,000 | $484,000 | $532,400 | $585,640 |
| Net (decrease)/ increase in cash/ cash equivalents | -$114,536 | -$297,158 | -$134,320 | $575,991 | $1,833,128 |
| Cash and cash equivalents at the beginning of the year | – | -$114,536 | -$411,693 | -$546,014 | $29,978 |
| Cash & cash equivalents at the end of the year | -$114,536 | -$411,693 | -$546,014 | $29,978 | $1,863,105 |
Balance Sheet:
| 2020A | 2021A | 2022F | 2023F | 2024F | |
| NON-CURRENT ASSETS | |||||
| Item 1 | $16,000 | $29,200 | $43,720 | $59,692 | $77,261 |
| Item 2 | $20,000 | $42,000 | $66,200 | $92,820 | $122,102 |
| Item 3 | $28,000 | $50,000 | $64,520 | $75,168 | $86,881 |
| Item 4 | $96,000 | $184,000 | $256,600 | $336,460 | $424,306 |
| Item 5 | $20,000 | $42,000 | $66,200 | $92,820 | $122,102 |
| Total | $180,000 | $347,200 | $497,240 | $656,960 | $832,652 |
| Accumulated depreciation | $44,267 | $129,600 | $250,104 | $408,231 | $607,743 |
| Net non-current assets | $135,733 | $217,600 | $247,136 | $248,729 | $224,909 |
| CURRENT ASSETS | |||||
| Cash | -$114,536 | -$411,693 | -$546,014 | $29,978 | $1,863,105 |
| Accounts receivables | $680 | $3,314 | $8,087 | $13,372 | $21,108 |
| Total current assets | -$113,856 | -$408,380 | -$537,927 | $43,349 | $1,884,214 |
| Total Assets | $21,878 | -$190,780 | -$290,791 | $292,078 | $2,109,122 |
| LIABILITIES | |||||
| Account payables | $25,917 | $51,167 | $73,167 | $98,583 | $123,000 |
| Total liabilities | $25,917 | $51,167 | $73,167 | $98,583 | $123,000 |
| EQUITIES | |||||
| Owner’s equity | $400,000 | $840,000 | $1,324,000 | $1,856,400 | $2,442,040 |
| Accumulated net profit | -$404,039 | -$1,081,947 | -$1,687,957 | -$1,662,905 | -$455,918 |
| Total equities | -$4,039 | -$241,947 | -$363,957 | $193,495 | $1,986,122 |
| Total liabilities & equities | $21,878 | -$190,780 | -$290,791 | $292,078 | $2,109,122 |
