Purpose of the Business Plan for Selling Handbags from China

The reason for writing this export business plan for selling handbags from China is to prepare the company to compete in the international market and to ensure better organization in its existing international handbags business. It will address the issue of assessing product’s export potentials and identify the target market in this industry. The plan will involve the choice of the most effective strategy, which the company should use to enter the market, and the best marketing actions available to boost the business. It will evaluate the management of business operations and the financial aspect associated with the latter. Finally, the plan will set goals for sales and financial profits to be attained at a specified period of time.

Canadian fashionistas have looked for options in the handbag industry, namely unique luxury designer bags. The latter have become popular in almost every market in every continent due to the increasing fashion tastes and diversity. The company is looking to import designer handbags from China that are affordable to urban women in Canada and are of similar quality to the ones in other markets.

The enterprise is optimistic about this venture for a number of reasons:

  • First, the market in Canada is full of women who are fashionable, but have minimal disposable incomes.
  • Second, the company will use the trend of seeking luxury experience as a bargaining chip against ownership, which has proven successful in many countries.
  • The availability of an untapped market opportunity, strategic business plan and hardworking and passionate management will put the business in a good position to become a national brand.

The import/export sector is a very tough business, and in order for a trade person to be able to start his/her venture, it is imperative to know the basics of activities in this industry. Capital, knowledge, energy, time and determination are some of the requirements needed for the company to reach the top. To market its products, the one should have a website or a blog launched. This research paper is going to present an export business plan for selling handbags from China to Canada. For big companies in the industry, this business is has high sales productivity. It is also characterized by fully strong prices and sales. It is the reason why the company has chosen the handbag export business as a perfect opportunity to venture into. Most Canadian women do not have an income that is disposable enough to buy various luxury bags that the United States and European markets offer, but they desire to have such. Exporting handbags from China to Canada, which are relatively cheap and of quality, is the best opportunity to satisfy the cravings they have for wearing these beautiful things.

Situational Analysis

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The product to be exported is a handbag designed fashionably and the size of which ranges from medium to large. It is used by women to keep their personal items intact when going somewhere. Producing a handbag is an art of fashion, and trying to stay one step ahead in the market, while analyzing the ever-changing fashion trends in this industry, has proven to be next to impossible. Beauty and fashion have proven to be increasingly costly for women everywhere, but demands for something different have been difficult to resist. Medium- and low-earning women, who are the majority in most markets, are looking for products that have quality, but are sold at an affordable price. It makes a handbag a perfect commodity in this business, and this is what the company is planning to deliver.

Country History

Canada is one of the few countries that have had few political conflicts and military warfare. It has encouraged economic growth, specifically in the fashion industry. The Canadian handbag export market, which slowly developed in the early 1980s and exploded in the mid-1990s, has been an important factor increasing the popularity of Canadian designers in foreign countries (Olive). Canada has traded various luxurious handbags with France, the USA, Brazil, Australia, and developing foreign markets for the last twenty years. The handbag business has established its market value amounting to ten billion U.S. dollars (Palmer).

Cultural Overview

The Canadian people believe and have a national concern of the ability of technology to connect their land, which is dispersed and full of diversity (Palmer). It can be a hindrance to the reception of handbags since most advertisements are run online. In Canada, many people can access this commodity using the Internet, but some of them, especially those living upcountry, have a negative notion about technology. It can hinder the sale of handbags to a large part of the population.

Attitude, Education, and Languages

Attitudes of customers to handbags and fashions are changing and have had a significant influence on business operations. A downturn in the economy has changed people’s buying habits. Customers now tend to be more economical when buying accessories, more responsible to make sure they purchase what they need, and more demanding in relation to handbag retailers (Agyeman, Bullard, & Evans). In Canada, many people are learned, and education has been the key in the growth of their economy. Thus, many customers in the country can read instructions and know how to use the handbag. Furthermore, Canada is diverse and has a lot of immigrants (Palmer). The study shows that individuals with at least one language from Asia as their mother tongue are over 50% of the immigrant population (Olive). It indicates that a fraction of the country speaks Chinese, and almost everyone speaks English. Thus, the comprehension of labels and instructions to handbags is not a problem.

Political Environment

The Canadian government is ruled by the Queen, who has the Governor General as her representative, and the prime minister. There is the Cabinet, Ministers, Parliament, and different departments and agencies (Olive). All goods sold by China are legally compelled to be labeled using the Chinese language with a detailed specification of the contents, as well as production and expiration dates. It is also a legal requirement for all handbags for export to be inspected and provided with a compulsory certification. In the Canadian Consumer Packaging and Labeling Act, there are specific requirements for handbags, such as the ones prohibiting misleading packaging (Olive). A handbag label should not be placed with any false information. The product must comply with assertions made on the label, which relate to quality, type, manufacturing method and origin (Olive).

Export Marketing Plan

A short-term objective of this venture is to maintain profit by saving during the months of a peak in demand and keeping the door open during other periods to generate revenue that will enable the growth of the company. The latter must identify ever-changing consumer trends and find distributors for a label to succeed in the long term (Palmer). Another goal of the company is to gain brand recognition to receive lucrative prospects. Canada has a large population of women working in the corporate industry, who have a taste for fashion but do not have a disposable income to buy expensive European luxurious bags (Agyeman). Tariffs and regulations set by the Canadian government are also favorable for the importation of this product. Since the retail market in Canada has grown and expanded, it will ensure the distribution and selling of the brand to the majority of people.

Economic Development

Canada is a country that is developed and has the ninth highest nominal income per capita in the world (Palmer). The private sector has faced significant growth. One of the best economies globally favors the handbag business by providing a large market for the product and ensuring the recognition of the brand selling it to many markets that plié their trade in Canada. Luxury goods in Canada have seen an increase in the current value due to widening credit rates that are low and have seen high purchasing power due to a strong economy. The Canadian retail market has grown due to good roads, housing and modern technology, which ensures access to various products by people living upcountry (Agyeman). This good infrastructure will assist in the distribution of handbags in the country for better sales. Moreover, Canada’s economy is one of the best in the world, and this has led to the emergence of large corporate companies (Agyeman). The working class is now better paid due to economic growth. Thus, women targeted by the handbag business receive higher wages. It will boost this venture because of high sales in the country.


Canada is a perfect place to kick-start this business venture due to support provided by the business environment and the public and private sectors in the country. A large population of middle-aged women with a stable income and a taste for fashion, good infrastructure, ideal legal and political requirements, and the growing retail sector among other characteristics create a perfect target market for the successful export of handbags from China. Thus, this business venture has the potential of growth according to the analysis and the preliminary business plan. The latter has provided useful information about starting up the handbag export business and has evaluated all economic, social and legal aspects that can affect this opportunity in the fashion industry. This plan has found out that Canada is an ideal target market for the product to be imported and holds a lot of promises for the future in terms of goals and objectives set by the company.

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