Let me walk you through our product offering:

We offer a comprehensive range of handcrafted textile products, Our product line includes
handbags, shoulder bags, purses, backpacks, laptop bags, pillow covers, tote bags, and scarves,
all featuring vibrant patterns and intricate designs inspired by Bhutanese culture. From everyday
accessories to statement pieces, our products cater to diverse preferences and needs.

Pricing

We will employ two pricing strategies.

- Cost-plus pricing: Our pricing is based on several factors, including the cost of materials, labor,
and overhead expenses, as well as market demand and competition.We will calculate the
expenses involved in making Yathra, considering the materials like yak hair and sheep hair.
While yak wool is rare and premium due to its superior quality, it's sourced from the alpine
regions of Bhutan, making it more luxurious. To manage costs, we import raw materials from
India. Then, we add a markup to ensure profitability, covering all production expenses including
the wages for weavers and the transportation charges.

- Value-based pricing: We aim to offer competitive prices that reflect the value of our
handcrafted textiles. We deeply value the cultural significance and uniqueness of Yathra, which
guides our pricing strategy. Understanding the market's perception of our products, we set prices
based on their perceived value. This lets us keep our prices fair while still making sure our
products reflect their true value.

-We have fixed the prices of the products as mentioned below after considering the price of raw
materials, labor, and overhead expenses:

Our products are priced competitively to offer value to our customers. With prices ranging from
300 to 1999 THB, making them accessible to a wide range of customers with varying budgets
and preferences.

● Reflecting the materials used, intricacy of design, and production costs. Higher-end
jackets may include more premium features or unique designs, hence the price range.
● the variation in price may be influenced by factors such as size, design complexity, and
additional features like pockets or closures

Competitors
In the competitive landscape of the Thai market, Yathra faces various competitors offering
similar or alternative products.

1. **Local Thai Artisanal Brands**: Thailand has a rich tradition of handicrafts where several
local artisans are creating beautiful products like bags, scarves, and homeware. These brands
focus on traditional techniques based on specific regions, reflecting the country’s rich heritage
and traditional craftsmanship. Examples of local brands are Bang Chao Cha's Wicker Ware, Mae
Chaem's Colorful Textiles, and Lampoon's Brocade Silk.

These brands focus on traditional techniques and cater to customers who appreciate locally
made goods. They have established a brand with already existing loyal customers who are
familiar with the availability of the products. These brands cater to a niche market of customers
seeking authentic and locally made products, which could compete with Bhutanese Yathra
products in terms of craftsmanship and cultural significance.

2. **Karen Hill Tribe Crafts**: Karen Hill Tribe Crafts is a Thai brand specializing in
handwoven products such as beads, scarves, shawls, and other handwoven textiles. They are
known for their intricate weaving techniques and craftsmanship passed down from generations.
Their strong market presence and active promotion platforms pose competition in terms of
attracting customers seeking traditional handmade products.

Yathra stands out in the Thai market for several reasons:

1) Sustainability and ethical sourcing

Yathra prioritizes sustainability and ethical sourcing practices. Unlike some businesses that may
prioritize profit over environmental and social responsibility, Yathra is committed to using eco-
friendly materials, supporting local artisans, and ensuring fair trade practices. This commitment
to sustainability and ethics resonates with consumers who are increasingly conscious of the
environmental and social impact of their purchases.Your purchase ensures artisans receive a fair
wage for their skills and helps preserve this cultural heritage.

2) Durability

Yathra is built to last. Yathra products stand out for their durability because they're crafted
meticulously using robust materials like yak hair and sheep wool. This ensures they maintain
their quality over time, offering longevity and reliability even with frequent use.
The meticulous handweaving and use of premium yak hair result in a luxurious and durable
product. By choosing Yathra, you're making a conscious decision to invest in quality and
support sustainable practices.The emphasis should be on the exceptional quality and durability
that comes with handcrafted yak hair products. This positions Yathra as a worthwhile investment
compared to less durable, mass-produced alternatives.

3) Uniqueness and rarity

Yathra products are deeply rooted in Bhutanese tradition and cultural richness. Unlike many
other businesses in the Thai market, Yathra offers authentic Bhutanese textiles that showcase
centuries-old weaving techniques and designs. This unique cultural heritage sets Yathra apart,
appealing to consumers who value tradition and authenticity.Yatra offers a unique aesthetic
compared to Thai or Karen textiles. It allows customers to stand out with a piece steeped in
Bhutanese heritage, a story not commonly found elsewhere in Thailand.
Yathra incorporates yak hair, a luxurious and rare material not typically used in Thai
textiles. This elevates the perceived value and exclusivity of Yathra products.

2. **Exceptional Craftsmanship**: Yathra is renowned for its exceptional craftsmanship. Each

product is meticulously handcrafted by skilled artisans who have inherited the traditional
techniques of Yathra weaving. This dedication to craftsmanship results in high-quality textiles
that stand out in terms of design, durability, and attention to detail.arn and Yathra creates a
strong brand story around Yathra weaving and the cultural heritage it represents. Their focus on
customer service through social media and initiatives like complimentary souvenirs can lead to a
more memorable and positive customer experience compared to competitors.Yathra connects
you to the artisans who create these beautiful pieces.Owning Yathra goes beyond just
having a textile. It's about connecting with the story of Bhutanese culture and the artisans
who create these pieces. This emotional connection can be a powerful differentiator.

4. 4. **Blend of Tradition and Innovation**: While Yathra honors tradition, it also embraces
innovation. The brand blends traditional weaving methods with contemporary design elements,
creating products that appeal to modern consumers while retaining the cultural essence of
Bhutan. This fusion of tradition and innovation sets Yathra apart from competitors that may
focus solely on either traditional or modern designs.While staying true to their cultural roots,
Yathra aims to create designs that appeal to the Thai market. This blend of tradition and modern
design can give them an edge over competitors who may offer more traditional or generic
products.

Financial plan
This table provides a rough estimation of the revenue, costs, profits, and cash flow for our
business in Thailand for the next two years in Thai Baht (THB).

Major Cost Components:

● Our major cost components include raw materials procurement (wool, dyes, threads),
labor costs, production equipment and maintenance, transportation charges, packaging
materials, marketing and promotion expenses, rent for production facility, utilities, and
miscellaneous expenses. These costs contribute to the overall expenses by ensuring the
smooth operation of our Yathra production process, from sourcing quality materials to
delivering finished products to the market.
● We considered the need for initial capital to establish operations, procure raw materials,
set up distribution channels, and implement marketing strategies tailored to the Thai
market.
● The investment will fund key initiatives such as production scaling, marketing
7campaigns to raise brand awareness, distribution network setup, and working capital to
support initial operational expenses.
● We anticipate steady growth in revenue over the investment period, driven by increasing
market penetration, expanding product offerings, and growing brand recognition.
● While initial profit margins may be conservative due to upfront investment costs, we
expect profitability to improve as economies of scale are realized and operational
efficiencies are optimized.
● We anticipate the increase in expenses as we expect the market demand to grow and so
does the production volume.

● By offering high-quality Yathra products with distinctive designs and storytelling

elements, we aim to capture a niche market segment of consumers seeking authentic and
meaningful experiences through their purchases.

The break-even point is estimated to be achieved within 9 months. This is because the revenue
projection for Year 1 is 1,000,000 THB, which exceeds the total expenditure of 950,000 THB.
By generating enough revenue to cover the operational costs within this timeframe, the business
can reach the break-even point. Additionally, with the projected increase in revenue for Year 2 to
1,250,000 THB, accompanied by a slight increase in expenses, the net profit is expected to
further improve, ensuring sustained profitability beyond the break-even period.