DEPARTMENT OF CHEMICAL ENGINEERING

UNIVERSITY OF KARACHI

FEASIBILITY REPORT

Name: Ruba Tarique

Class: 6th Semester

Seat no: B21108006024

Course: Entrepreneurship ( CE-510 )

Feasibility Report and Business Plan: Scrunchie Business in Karachi
1. Executive Summary

This report outlines the feasibility and business plan for launching a scrunchie-making business in Karachi, Pakistan,
with an initial investment of 1 lakh rupees (100,000 PKR). The business will focus on producing Pinterest-inspired,
high-quality, handmade scrunchies for young women and fashion-conscious individuals. The primary target market
includes students, working professionals, and individuals interested in trendy, affordable accessories. The business will
initially operate from home, utilizing online platforms for sales, and will emphasize creative designs and eco-friendly
packaging to attract customers.

2. Business Overview

Business Name: (To be decided by the owner)

Product Line: Handmade scrunchies made from various fabrics (satin, velvet, silk, cotton, etc.), inspired by popular
designs on Pinterest.

Location: Home-based business in Karachi, selling online and through local markets.

Target Market: Fashion-conscious young women, students, and working professionals, aged 12 to 30.

Business Model: The scrunchies will be handmade and sold directly to consumers via social media (Instagram,
Facebook) and local pop-up markets. There will be an option to expand the product line based on demand and market
feedback.

Initial Investment: 1 lakh rupees (100,000 PKR)

3. Market Research and Analysis

3.1 Target Market

 Primary Audience: Young women aged 12–30 who are active on social media, fashion-forward, and looking
for trendy, budget-friendly hair accessories.
 Location: Karachi initially, with potential to expand to other cities via online sales.
 Demographics: Students, office workers, and women who are trend-conscious and appreciate handmade,
customizable products.

3.2 Market Trends

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  Growing Demand for Hair Accessories: Scrunchies have made a big comeback as a fashion trend due to their
versatility, comfort, and ability to be personalized. Popular designs on Pinterest are driving demand for
handmade, high-quality scrunchies.
 Handmade and Sustainable Products: Consumers are increasingly leaning towards handmade products, often
viewed as unique and eco-friendly. Your business can leverage this trend by offering scrunchies made from
sustainable materials and packaged in eco-friendly packaging.

3.3 Competitor Analysis

 Local Competitors: Karachi has several small businesses selling scrunchies, both in physical markets and
online. Some may be offering mass-produced options, while others are selling handmade varieties.
 Key Differentiators for Your Business:
o Unique, Pinterest-inspired designs that aren’t readily available in local markets.
o Handmade with attention to detail and quality materials.
o Customization options (e.g., fabrics, sizes, colors).
o Attractive packaging and branding focused on aesthetics and sustainability.

4. Operational Plan

4.1 Production Process

 Home-Based Production: Initially, production will take place at home, where scrunchies will be sewn either
manually or using a sewing machine.
 Batch Production: Scrunchies will be produced in small batches to control quality and reduce wastage.
 Materials: High-quality fabrics (e.g., satin, velvet, silk) will be sourced locally from fabric markets in Karachi.
Elastic bands and thread will also be locally procured.
 Labor: The owner will handle production, though additional help (part-time seamstress) may be hired as the
business scales.

4.2 Sales Channels

 Online Platforms:
o Instagram and Facebook: These platforms will be used to showcase products, run promotions, and
manage direct sales via Instagram/Facebook shop features.
o Local E-commerce Sites: Products may also be listed on platforms like Daraz.pk for greater visibility.
 Offline Sales:
o Participating in local pop-up markets, school/college fairs, and exhibitions.
o Collaborating with local fashion boutiques to stock scrunchies on a consignment basis.

5. Marketing and Branding Plan

5.1 Brand Identity

 Brand Positioning: A trendy, youth-focused brand offering high-quality, handmade scrunchies inspired by
popular designs and seasonal fashion trends.

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  Brand Aesthetic: Vibrant, playful, and eco-conscious. The packaging will be Instagram-worthy, using eco-
friendly materials like recycled boxes, tags, and stickers.

5.2 Marketing Strategy

 Social Media: Instagram and Facebook will be your main platforms. You will need to post regularly, with an
emphasis on beautiful product photography, styling ideas, and user-generated content (e.g., customers posting
photos with your products).
 Influencer Partnerships: Partner with local fashion influencers to promote your scrunchies through giveaways,
shout-outs, or paid collaborations.
 Paid Advertising: Facebook and Instagram ads will be run to target young women in Karachi, starting with a
small budget (5,000–10,000 PKR) to increase brand visibility.
 Seasonal Promotions: Special collections and sales during peak shopping seasons, such as Eid, wedding
seasons, and back-to-school timeframes.

6. Financial Plan

6.1 Startup Costs

Category Estimated Cost (PKR)

Fabrics (Various types) 20,000
Elastic bands 5,000
Sewing machine 20,000 – 30,000
Tools and accessories (thread, scissors, etc.) 2,000
Packaging materials (boxes, tags) 5,000
Marketing (social media ads) 10,000
Photography (professional shoots) 8,000
Logo design and branding 5,000
Miscellaneous expenses 5,000 – 10,000
Total Estimated Cost 70,000 – 80,000

Initial Investment Breakdown

Startup cost
Fabrics
Elastic bands
6% sewing machine
6% Tools and accessories
25%
10% packing boxes
Marketing
13% 6% photography
Logo design and branding
6% Miscellaneous Expenses
3% 25%

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6.2 Pricing Strategy

 Average Selling Price: 150 to 300 PKR per scrunchie, depending on the fabric and design complexity.
 Production Cost per Scrunchie: Approximately 30 to 50 PKR.
 Profit Margin: 60% to 80%.

6.3 Sales Forecast

Month Estimated Sales Revenue

Volume (PKR)
Month 200 scrunchies 40,000
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Month 300 scrunchies 60,000
2
Month 400 scrunchies 80,000
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Breakeven Point: Given the initial investment of approximately 70,000 to 80,000 PKR, you could reach breakeven in
2 to 4 months, depending on sales growth and marketing effectiveness.

7. Risk Analysis

 Market Saturation: There are many small businesses selling scrunchies, but with strong branding and unique
designs, you can differentiate your product.
 Supply Chain Issues: Consistent access to high-quality fabrics and elastic bands is crucial. Establishing
relationships with reliable suppliers will mitigate this risk.
 Scaling Challenges: As demand grows, managing production may become more challenging. Additional
investment in staff or production machinery may be needed to scale efficiently.
 Pricing Pressure: Competitors may offer lower-priced options. You can address this by focusing on quality,
unique designs, and strong branding.

8. Conclusion and Recommendations

Launching a scrunchie-making business in Karachi with 1 lakh rupees is financially feasible and has good growth
potential. With careful budgeting, a strong social media presence, and unique product offerings, this business can be
profitable within the first few months. Focusing on high-quality materials, Pinterest-inspired designs, and a sustainable
brand image will differentiate your business from competitors.

Next steps include finalizing the brand name, setting up your social media pages, sourcing materials, and starting
production. With an effective marketing plan and consistent sales efforts, your scrunchie business can grow and thrive
in Karachi's vibrant fashion market.
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