The Under Shop Franchise Business Opportunity

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What is The Under Shop business?
The Under Shop is a very established retail outlet specializing in modest wear. They sell a wide range of products like socks, undergarments and others.

What is the background of The Under Shop?
The first outlet was opened in Lot 10 Shopping Centre and that was back in 1999. Since then, it has grown to become one of the leading names in this market segment.

What is so good about The Under Shop?

The Under Shop benefits from being one of the few names in the undergarment segment, especially for men. It was one of the pioneers that sold men’s undergarments before expanding to other products like ladies lingerie, undershirts and socks. As such, The Under Shop now carries various brands like Charles Jourdan, B.U.M Equipment, Renoma Underwear and DKNY, among others.

How big is The Under Shop?
To date, there are now more than 10 outlets of The Under Shop across the country. Besides that, the brand has since ventured overseas where it operates in countries like Indonesia, China, Vietnam, Thailand, Japan and China.

Can I franchise The Under Shop?
Yes, you can. This is one brand that gives you a lot of leverage and profit opportunities as a franchisee. You will enjoy support in terms of running the business, operations, cash-flow management and marketing, among others.

What should I know about owning The Under Shop?
You will need to:

  • Initial Capital – Depends on the location and size of the store
  • Franchise Fee – RM30,000
  • Royalty Fee – 1%
  • Advertising Fee – 1%
  • Return on Investment – With a ready market catchment, you should have a pool of returning customers. Volume sales could help you to break even within the first 3 years of operation.
  • Location – Not crucial. Visibility is a must but you will have customers looking for The Under Shop in most shopping malls.
  • Customer Segment – Primarily men and families.

The Final Word
The Under Shop enjoys a brand name that is well established especially in the retail industry of Malaysia. It has a niche market that is very stable with a steady flow of repeat purchase customers. The startup cost is not very high as compared to others where a large portion might be on inventory. However, with the right formula and the returning customers, this business is a sound investment with very good and steady returns as long as you have the funds to sustain the business in the long term.

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