Premium Leather Customization Shoes

Our business concept was started from some complaints that we get from some people about their dissatisfaction of their footwear. Some said that they found some difficulty in finding their footwear. They couldn‟t find their footwear due to their „unusual‟ size of their foot, or due to their abnormal-shaped foot that caused by some disease, asymmetric between the right and left feet, etc. Some people also suffer pain and foot diseases; such as athlete‟s foot, pain in the heel, and callouses, because they wore the wrong footwear. Based on our survey, 77% of the people around 20-30 years old faced that kind of trouble in finding their footwear. Meanwhile, we found that almost all people at the age of 30 years old have suffered those difficulties. Our business gives solution to the problem that was explained before. We plan to establish a business that can give them the most suitable shoes for each of them professionally. Our main business is making professional formal customization man‟s shoes based on each person‟s measurement, so that the shoes that we made would be perfectly fit on their feet. We will use the best quality leather and we will provide best professional shoe‟s makers, so that the shoes would be very comfortable and exclusive. Our target market is the male employees that are above 30 years old, working in Jakarta, and have personal income above 10 millions rupiah each months. According to our survey, their main priorities in choosing their custom shoes are comfort and quality. The footwear industry in Indonesia is growing rapidly nowadays. It was supported by the fact that about 80% of the people in Indonesia have been aware of the importance of wearing footwear (Asprindo). In 2012, the footwear industry could earn about 27 billion rupiahs, and it could grow even higher on another several years. We will use focus differentiation as our main strategy. The marketing division will focus in maintaining customer satisfaction and building the brand of our product. The company will have „invest to grow‟ strategy, where the company will invest most of the resources for the company‟s growth. The operation division will also support the marketing division by doing a strict quality control and timeline maintenance in order to produce the best quality product. The human resources will focus on maintain the working climate index, by doing a proper selection recruitment process and having periodic evaluation through the employees about the working environment. In the first year company estimated to sell 1.412 pairs shoes which are worth 2.5 billion rupiah. If the actual sales conform with the forecasting at the end of fifth year company will get 13.7 billion rupiah with net profit almost 1.6 billion rupiah. Running this company will need a capital Rp1.759.040.000 for the investment. Our company will use discount overflow (DCF) method which is Net Present Value (NPV), Payback Period (PP), and Internal Rate Return (IRR) to calculate the advisability of our company and the risk of our project with 3 scenarios that possible happen. With coefficient of variant 2.254 and expected NPV 2 billion rupiah we can conclude that this risky business is feasible to run.