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Fashion Boutique Industry of Kathmandu Essay

Management in partial fulfillment of the requirements for the degree of Bachelor of Business Administration. This proposal writing assignment was guided by our course instructor Mr.. Parka’s C. Battier and with his help and my interest I selected the topic: An Overview of the Fashion Boutique Industry of Nepal. I have always been interested in fashion. When I was given this opportunity to do a project work on the interest of my choice, I had no doubt it was going to be related with the fashion industry of Nepal. The fashion industry worldwide seems to be at its glamorous eight, having its reach from New York to Paris to London and Tokyo.

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All over the globe the latest trends travel so fast that designers are busy making forecasts for each and every season and occasion they can think of. The modern technologies, media, and the entertainment industry have propelled fashion into new, unforeseeable heights. People everywhere are becoming more and more fashion conscious and the Naples are not behind. The increasing number of trendy boutiques in Nepal and almost every major street being lined up with fashion and clothing stores show there is a rising demand for high fashion among the modern Naples.

The fashion industry is very lucrative and its scope is unlimited. Nepal, being such a culturally and naturally diverse country, has a lot of inspiration for the fashion industry. If this diversity can be converted into creativity and be sustainable entrenched in the fashion industry of Nepal through the fashion boutiques, this industry would ultimately have a very unique image, so much so that Nepal should also consider it as a potential forte. To understand the current Naples fashion boutiques industry and see the area of potential in it, who better to ask than boutique owners?

These are the people who are in the industry; who know about fashion, designs, and trends ultimately shaping the Naples fashion industry into new forms. They are the people who are learning about what is happening in the industry right now and what will or should happen in the future of the fashion industry of Nepal. So, I have decided to survey the boutique owners of the Splendor area of Paten since that seems to be the centre point of the boutique industry of Katmandu valley. With this research, I hope to understand the current market of fashion boutiques in Nepal and discover its constraints as well as potential scope.

I have always been fascinated by the fashion industry. It is a mixture of art, pop culture, ideas and creativity. The fashion industries everywhere in the world are on new levels while the Naples fashion industry is still in its infancy. One of the major components of the total fashion industry of Nepal is the fashion boutique industry. Being a business student, I see considerable scope in this industry since it has a constantly growing market and it has the ability to revive itself with the changing times because of the creativity of the designers involved.

I chose to research about he fashion boutique industry to see where the boutiques stand in the Naples fashion industry at the moment, to examine the constraints imposed for its growth and to assess its possible scope. As a result, I want to find out whether there is a possibility that it will stand and even compete in the same level with the imported ready-to-wear industry of Nepal in the future. The questions that I would like to address in this study are: 1. What is the current state of fashion boutique industry in Nepal? 2. What are the factors that are hindering the growth of the boutiques of Nepal? . What is the scope of the fashion boutique industry in Nepal? 4. What should be done to propel the fashion boutique industry into an established and respected industry in the country? 1. 3 Objectives of the Study 1. 3. 1 General Objective The main objective of this research is to find out the actual state of the boutique industry of Katmandu I. E. The present state, constraints and the future scope of the industry. 1. 3. 2 Specific objectives 1. To understand the current state of the fashion boutiques in Katmandu. 2. To identify the constraints faced by the fashion boutiques 3.

To identify the scope and opportunities for the fashion boutique industry 1. 4 Importance of the study Fashion is important to almost everyone. Gone are the days where clothes were only used to hide your body or protect it. These days, clothing and style plays a huge role in peoples’ lives. Every day, we see hundreds of people. Whether we see them on the street, at work, at school, or on television, people pass through our visual field. It may be intentional or unintentional but we form opinions about people based on their style of dress.

This study will be useful in understanding the current state of fashion boutique industry of Nepal. It will help to determine, as well as, understand the obstacles and constraints faced by the boutique owners of Nepal. It will even help to understand about the state of mind of the Naples in terms of the connection between fashion and boutiques, and also about the influences of international fashion in Nepal. With the completion of this research, areas of potential or scope of the boutique industry or where this industry should be heading will be clear and the possibility of generation of market in fashion will be illustrated.

This research will be helpful to anyone who wants a glimpse of the fashion boutique industry of Nepal. It will also be helpful to those people who will want to go in the boutique industry in the future, for creative or business purposes, as the project will illuminate where this industry is heading. 1. 5. Limitations of the study This study is not absolutely free from limitations; the limitations that may be observed are as follows: a. Since the study use primary and secondary data in order to prepare report, the data collection might be influenced by social crisis and personal influence of the data collector. . As the study is to be conducted by the students themselves, many opportunities to conduct a detailed market research may e lost due to budget and time constraints. C. The primary data used in this research will be from only a random sample of boutiques, which may not reflect the opinions of the boutique owners of the entire industry. D. The secondary data used in this research is limited as no such research has been done in Nepal in the past. E. The study may lack exact information because it is based on the opinions and information provided by the surveyed boutique owners. F.

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Certain information may be based on approximation. G. Many of the respondents may not answer the questions provided in the questionnaire. Fashion, design and clothing can incorporate a wide range of different activities: These days, almost everything is related to fashion, from cars to architecture to stationery (AS Consultation y Formica¶n, 2008). However, in this report, when we refer to the fashion sector we will be using the term in its most traditional sense – as the original fashion sector that has expanded to incorporate other parts of our life – the clothing sector and fashion in terms of the way people dress.

Apparel products are typically classified into broad categories, such as basic commodity products (knit underwear and socks), fashion-basic products (dress shirts, casual slacks, and knit sportswear), “better” fashion (moderately priced dresses and suits), “bridge” fashions (higher priced ready-to-wear fashion products), designer collections (high quality and expensive ready-to-wear fashion products) and custom-made haute couture (Abernathy, et al. , 1999).

These fashion categories are often portrayed in a “fashion pyramid” in which products are arrayed according to factors such as fashion content, length of product life cycle, quality, and price (see Figure 1). The Fashion Pyramid More Fashion Content More Product Differentiation Designer Greater Demand Uncertainty Collections Higher Quality Fabric Higher Price Shorter Product Cycles Shorter Production Runs Diagram 2: The Fashion Pyramid (Derringer & Cretan, 2006). The boutiques of Nepal fall in the category of Better Fashions or Bridge Fashion collections.

A boutique is a small shopping outlet, especially one that specializes in elite and fashionable items such as clothing and Jewelry. In terms of Nepal, boutiques are a small shopping outlets specializing in fashionable ready-to wear items, as well as a home to the boutique owner’s creations. Dozens of boutiques and fashion designing companies lining up from Bagman Bridge to Himalayan Hotel in Expandable is enough to indicate that fashion has already grown up as an entrepreneurship in Katmandu. Youth have started to see a good prospect in fashion as entrepreneurship.

National Institute of Art and Fashion Designing, India Education Center, Unman College of Fashion Technology, Alkaloid Institute of Fashion Designing and Lord Buddha Education Foundation are some of the institute offering fashion education in Nepal. The scene in the Nepal fashion industry is not quite bleak indeed. Fashion boutiques are growing in Katmandu and in other cities like Dharma, Pokka, Butyl, and Bipartisan, too (Timpanist, 2009). Small fashion boutiques remain to have certain advantages over larger retail formats.

It is found that find that small fashion boutiques excel in relational marketing and store branding. Small boutiques operators invest their effort in relational marketing by developing friendship with a group of core customers and supplying accurate fashion information to all customers. Although small fashion retailers cannot afford to have specialized marketing staff or a budget for mass media advertisements, their mall size put them in a position to develop relational marketing with their customers much more thoroughly and deeply than large fashion retailers.

Also, small fashion boutiques effectively gain store brand equity through flexible visual merchandising and cultivating a charismatic image for the operator. (Chew, 2009) The marketing of boutique follows the conventional marketing patterns, which is dependent on selection of venue of the outlets and the product mix (designs and sizes), as well as the promotional strategy. Furthermore, the boutique owner has to marketing techniques like: -Displaying and distributing it as proper places Usage of electronic media: I. E. Rejection of the boutique in fashion programs, advertisement on television, and provision of dresses to various television plays and films. -Even arrangement: like fashion shows and photo-shoots Moreover, in order to keep abreast with the emerging trends and client tastes, surveys regarding customer satisfaction/needs should be regular feature of the project. As this project deals in designer women wear, therefore the product mix will comprise of different styles of the female dresses in different sizes. Fashion is in an era of change driven by designers, consumers and brands.

The fashion industry today, in Nepal like in India, is a mixture of influences due to globalization resulting in a shift in the socio-cultural, economic, demographic and cryptographic make up of the country; these directly and indirectly have an impact on fashion (Insight Inshore, 2011). From the many fashion schools, institutes and other small scale institutes, there has been a birth of a new breed of experimental designers with no reservations about any mode of self expression. There is a rise of new target groups across the diverse sub-continent.

Further, there is an increased awareness of fashion accelerated by advances in technology and media proliferation (Insight Inshore, 2011). Boutiques currently have a high potential market, but something missing. There is a shallow awareness of diverse target segments; there isn’t an in-depth understanding to identify diverse requirements & new segments. There is an ability to predict the effect of regular media influences on existing target groups, dependence on western trend adaptations; there isn’t an ability to forecast fashion adaptations across a diverse map (Insight Inshore, 2011).

There is a traditional static, consumer-research eased approach to design & strategy; there isn’t a dynamic approach driven by an understanding of trends, and shoppers along with traditional consumer research. There is mostly independent design and business strategies; there isn’t a cohesive design and business strategy that is borne out of trend, consumer & shopper research. 1. 7 Conceptual framework In Nepal, small fashion boutiques that provide its clients with custom-made as well as ready-made innovative designs of clothing.

They are becoming increasingly popular, as seen by their presence in every major street of the Katmandu valley. It is essential to analyze their current state so that the future or scope of the boutique industry can be accurately predicted. Purpose of boutiques Cost Customers Socio-economic changes Political scenario Area of expertise Regulations Resource management Competition Diagram 1: Conceptual Framework In this context, this study has made the framework given below to get a glimpse of the fashion boutique industry of Nepal.

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Here, by getting an idea of the purpose of boutiques, cost and their customers, we can get a pretty good idea about the current state of fashion boutiques of Nepal. From the current state, the future of this industry can be illuminated by exploring the opportunities of this industry such as changes in the socio-economy of the country, finding particular areas of expertise or niche, and expanding resource base. But the growth of the industry is hindered to a certain extent by factors such as competition, regulations of governments, and the political scenario of the country.

All this is illustrated in the framework above. 1. 8 Research Methods 1. 8. 1 Study Area The study was conducted by surveying the boutique owners of Katmandu valley, primarily of the Splendor area of Paten. The boutiques were randomly selected and surveyed. I chose this particular location for my study because it is one of the thriving places for boutiques and fashion in Nepal right now, as seen with the entire road being lined up with boutiques on either side. 1. 8. 2 Research Design The main purpose of this study is to give more information about fashion industry of Nepal.

Hence, with the help of this study, we come to know about the current state of fashion boutique industry and find its potential scope that is very important for the people who have an interest in this industry, for personal or professional purposes. Therefore, the research design is descriptive in nature. 1. 8. 3 Nature and Source of Data Both primary and secondary data were used for the study. Since the study use both sources of information, both qualitative and quantitative data were utilized for the study. To get information on this study about the current state of fashion boutique industry, various published articles were used.

And in order to learn about the future scope of the fashion industry and current market as well, primary data was viewed. Primary data was collected from the randomly selected boutique owners of Splendor and secondary data and information was collected from various published articles and reports, though very little secondary data was used. 1. 8. 4 Data Collection Techniques The structured questionnaire was used to collect the primary data for the study is attached in Annex 2. A set of structured questionnaire was developed to conduct interviews with owners of fashion boutiques.

All the information that includes the current market, constraints and scope of the fashion industry was asked with the help of the closed questionnaire. For the sampling procedure, 20 boutiques were elected and the owners of those boutiques were asked questions about their understandings and opinions of the boutique and fashion industry of Nepal. The convenience sampling technique was made use of in the study area. 1. 8. 5 Data Analysis and Report Writing All the collected data has been properly processed by entering the collected data in the computer software SIPS.

In SIPS, through the use of various mathematical and statistical tools, the collected data has been refined and analyzed. Different tables, charts, diagrams and graphs have been used as applicable. All these findings have en presented well in the summer project report. CHAPTER – II DATA ANALYSIS AND MAJOR FINDINGS This chapter is the heart of the report. The questionnaires filled by participants are tabulated and analyzed in order to come closer to our objectives. That very analysis is mainly presented in this chapter with the help of figures and charts.

Questionnaire brief 20 boutique owners of Splendor had filled out the questionnaire (prototype in Annex) I had provided them with. Below, the answers provided by them are analyzed in order to understand the fashion boutique industry of Nepal and explore its scopes and threats. Note: The words “boutique owner” and “designer” are used interchangeably as in case of this report, they both are the same person. In some of the charts and graphs, the total response has come to more than 20 because some respondents have treated the question as multi-response questions.

Data Presentation and Analysis 1 . Current state of fashion boutique industry The current state of the boutique fashion industry largely depends on the character, nature, and skill levels of the ones who control the industry I. E. The boutique owners. Presented below is a graph illustrating the basic demography (education level and ender) of those very owners. Figure 1: Education and gender of boutique owners Field study, 2011 As we can see here, 90% of the boutique owners are female while only 10% of them are male.

This isn’t a big surprise because it is usually women who are more interested in fashion and trends in general in most societies. Also, all of the owners have completed their bachelor level and some have even achieved their masters’ degree. From the surveys filled out by them, it is seen that all of them have done some kind of course or training related to fashion or design such as Diploma in Fashion Designing, Bachelor in Fashion Design, etc. Some have even gone abroad for their trainings, such as Sunlit Martha Sahara, owner of Jaeger who studied in Metro Design Institute of North Carolina, USA.

We can clearly see from the study that currently, all the boutique owners of Katmandu are highly trained professionals with extensive knowledge and training in their fields. 1. 1 Purpose When the boutique owners were asked why they had decided to open a boutique and Join the industry, the results were as follows: Figure 2: Purpose of opening boutiques A staggering 90% of the boutique owners claim to have opened a boutique because hey have a passion for designing and creating new things.

Only 10% have chosen this field for other reasons. In the questionnaire, these 10% of the owners have mentioned that they chose this field because they wanted to “earn money with creativity and skills that possessed as designers”. We see that most boutique owners have chosen to be in this field because they followed their heart. As we have already established in the introduction part of this project that fashion boutiques are small shopping outlets specializing in fashionable ready-to wear items and custom-

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