Hello everyone. I am Sai Phanindra, director of "Starburst Internet (OPC) Private Limited" company, India. I have started this startup company on 21st June 2017. I started importing Artificial Leather (PU & PVC) Handbags from China and sold on our own website as well as 5+ other online e-commerce websites in India. After receiving a hugely positive response, I have decided to manufacture handbags in India itself as it can reduce a huge amount of sale price on bags and create employment opportunities here.
So as I explained about myself and my concept earlier, let me give you a detailed overview of my project here.
I spent a good amount of over 6 months' time and created this project by meeting all kinds of people involved in bag making.
My motto is simple and clear, I just want to make premium quality bags in India and sell them for a reasonable price to women all over the world. As of now starting off with bags, in the future looking to expand to other categories related to women.
I have already tied up with all the raw material suppliers in India for making our bags. Right from the sewing thread to leather, we are going to use high-quality materials without compromising anything.
We are being backed by the Indian Leather Association, Kolkata. They are going to provide designs for our bags initially and help us in employee training, etc. Our company received Start-Up recognization from "Department of Industrial Policy & Promotion", Government Of India. We already won a few contests and placed our handbags stall at Inorbit Shopping Mall, Hyderabad.
I have started selling bags on our own brand called, "SPIRAL". Our logo is placed on bags and we gave a jute bag with every purchase with our branding also. We have all the legal documents for our company and took all permissions to start the manufacturing industry. In fact, we recently got Trademark Approval as well for our brand name "SPIRAL".
We need an INR 1 Crore ($134,159) fund to start our manufacturing unit. We are going to buy machinery and raw material. The remaining fund, need to take space on lease and to meet other expenses like furniture, transport vehicle, card swipe machines, generator for power backup, office furniture, laptops, stationery, handbag designs, etc.
What We Do:
Initially, we are going to make 3000 Handbags of both PU & PVC materials. We will make Shoulder bags, Clutches & Sling bags. A total turnover would be INR 21 Lakhs per month and we will give 30 jobs initially.
Struggle Behind The Company/Funding For This Concept:
I left my job at Amazon to start this company. I received lots of criticism for it but I always had faith and confidence in myself and my idea.
An organization promised to fund this project initially, I took my time and crafted the entire business plan and went to them, however, they were involved in scams with the fund they have and closed it temporarily.
Without getting discouraged, I went up to banks, few banks weren't interested to listen to me but one banker agreed to take it up. I have insisted them to consider my project under the government scheme which will not ask for any collateral to sanction the loan. Initially, they agreed to it, and after spending 2 months of time submitting all documents and opening accounts, they asked for collateral unfairly.
After this, I went to another bank where I clarified everything at first, and they took up our application. They took like 6 months and still kept our application in process. I patiently waited and cooperated with them.
At this point, if time, I got an investor who promised to fund 100% for the project, so I left the banking process and went behind him for another 6 months. However, after 6 months he sidelined from the investment plan without any specific reasons.
So I came to where I started again. But I lost a huge amount of valuable time and also, I started facing financial troubles. Due to unpaid EMI's, my credit score went down and hence I can't go back to banks for the loan this time. I went into a huge depression and had to face family problems too, but I never gave up. And finally, here I am now, trying my luck one last time.
Market In India:
The women handbags market in India has estimated at INR 3600 crore. It is projected to grow at about 15 percent annually in the next five years to INR 6,000 crore. The key growth drivers are increasing the number of working women, their rising incomes, increasing fashion consciousness and aspiration levels, and the growing influx of foreign brands. The Majority of the market (about 70 percent) belongs to unbranded products, including local or regional brands. However, going forward the growth rate of the branded segment is estimated to be much higher (about 25 percent) than the overall market. The key success factors of this industry are design/style/ fashion, Brand, Product Quality, and pricing to name a few. However, industry attractiveness also comes with challenges such as lower product life cycles, the influx of counterfeits, and the presence of large unorganized segments. The main categories in ladies' handbag are leather and non-leather handbags. The presence of brands in leather handbags is limited as compared to the higher brand concentration in terms of other handbags. The leather handbag products typically have higher pricing as compared to non-leather goods, with a limited consumer base.