Export-Market-Research-Good-for-Sunday
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Feb 20, 2024
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Export Marketing Research Written Report Submitted By: Student Name (ID No.) The Business School, Centennial College INTL 725 (SEC 006) Research Methods for Trade and Development Professor July 21, 2023
EXPORT MARKET RESEARCH Company Name:
Good for Sunday - Apparel Company This exploratory market research report was provided for Good for Sunday to help them identify the best market once they expand their business in another country. Specifically, this paper provides extensive research and recommendations for Good for Sunday, an eco-friendly retail clothing chain store located in Canada that prioritizes sustainable practices, about their export products and the potential of Japan as the chosen market for its expansion. I.
The Product Good for Sunday is a retail clothing chain store located in Canada that prioritizes sustainable practices. It does not come at the expense of the environment or the infringement of human rights in any way. It is focused solely on creating ethical clothing products that are timeless and effortless in nature. Its eco-friendly and sustainable clothing line includes hosiery and socks, shirts, sweaters, undergarments, pants, and cut-and-sew clothes such as dresses, suits, shirts, and trousers. It also makes soft, wearable garments from organic cotton, linen, and bamboo (Good for Sunday, 2023). Demand
Since Canada's fashion industry has a history of excess and unsustainable methods, the increasing demand for eco-friendly clothing products is a major development. Recently, there has been a growing sustainable clothing movement to create clothes that are good for the planet, society, and business. As a result of the widespread adoption of sustainable business procedures by Canadian fashion designers and companies, the country has emerged as one of the world's foremost pioneers in the fashion industry. Consumer demand, cutting-edge materials, and forward-thinking corporate strategies are propelling the Canadian sustainable fashion sector. Collaborations and technological advances help put Canadian firms at the forefront of the environmental movement. Greening Canadian fashion includes the use of eco-friendly textiles as well as circular production techniques that promote reuse and recycling. Additionally, sustainable fashion events have become more prevalent, resulting in great attention from customers, business professionals, and media outlets. These events highlight the most recent trends in environmentally friendly apparel, accessories, and shoes designed by influential designers from across the nation (Wong, 2023). According to Gitnux (2023), the percentage of the global apparel market share that comprises sustainable clothing products is anticipated to rise from 3.9% in 2023 to 6.1%
in 2026. Sustainable apparel is becoming more in demand as the sustainable fashion industry experiences rapid growth. This suggests that the sector of sustainable fashion is getting more profitable and that an increasing number of individuals are becoming aware of the significance of sustainable fashion. This is advantageous to the environment as well as the apparel industry as a whole. Specifically, in Japan, consumer demand for sustainable goods is rapidly expanding due to consumers' growing interest in environmentally friendly clothes and their consideration of sustainable products before making purchases. Price Trends
Price is the primary factor preventing consumers from purchasing more eco-
friendly goods. When it comes time to make a purchase, the price typically outweighs other considerations, even though consumers claim they value sustainability and want to show their support for sustainable products (Canaves, 2022). The idea that sustainable fashion is reserved for a wealthier audience is perpetuated by the fact that the price of a garment that was made sustainably is frequently substantially higher when compared to an off-the-rack item that was mass-manufactured. However, there are several factors that go into making sure that every piece of clothing manufactured has a negligible effect on the environment. Firstly, a garment that has been produced sustainably and is reasonably priced shows a company's commitment to minimizing its negative effects on the environment and the people who manufacture it. In the backdrop of fast fashion, which has conditioned a new generation of consumers to demand low costs on virtually everything, sustainable fashion may appear pricey. In addition, the pricing of items made from sustainable materials begins with the raw resources. The price of materials made from natural fibers, such as silk, is typically higher than those made from practically plastic polyester blends. The type of raw materials, the location from where the raw materials were obtained, the manner in which and the location at which the product is manufactured, as well as who manufactures the product and under what conditions, are all elements that could have an effect on the pricing (Khatib, 2022). Consumer Purchasing Trends
The survey conducted by Canaves (2022) has shown consumer purchasing trends for sustainable clothing items. The findings show that customers in the later stages of the millennial and Gen X generations have the lowest levels of willingness to pay a higher price for sustainable fashion. On the other hand, younger consumers or members of Gen Z are more willing to pay more for sustainable clothing. Another factor for eco-friendly
clothing is that its target market of environmentally conscious customers tends to buy more of everything. The demand from customers is primarily what is driving the present movement toward more sustainable practices in the fashion sector. People are becoming more conscious of the negative effects that fast fashion has on the environment and society, and as a result, they are looking for alternatives that put value on ethical production and minimize waste. This has resulted in the development of a rising movement known as slow fashion, which places emphasis on quality rather than quantity and encourages customers to make purchases with a value retained over time. Because of this, many companies, such as Good for Sunday, are starting to make use of environmentally friendly business procedures as a means of satisfying the ever-increasing customer demand (Wong, 2023). II.
The Competition / Competitive Intelligence The apparel industry in Canada is enormous, and the country is also home to some of the most well-known clothing companies in the world. The apparel industry is a highly competitive and dynamic sector that consistently adapts to new trends and consumer preferences. The market is quite large and consists of over 2,000 different companies. There are very few barriers to entry in terms of government regulations, and the apparel sector in the country has been very welcoming to new competitors. The majority of the clothing companies in Canada are held by Canadian citizens, with only 2% of the businesses being owned by individuals or organizations located outside of Canada. Multinational corporations control most of these businesses with foreign ownership, with their headquarters in the United States. Large-scale production of items like jeans, undergarments, and fundamental clothing is a primary focus for these global conglomerates. Toronto, one of the most important cities in Canada, has carved out a special place for itself in the apparel sector. Companies from the United States, Mexico, Japan, and other countries have shown trust in Toronto's apparel manufacturers. The clothing produced by Toronto manufacturers is guaranteed to be of high quality, with a rapid turnaround time, in addition to flexible catering and dependable services (Smith, 2022). In addition, the apparel sector in Canada is seeing rapid expansion, yet, it is hampered by a number of challenges, such as a lack of qualified labor in many cities and the relocation and shifting of major companies to countries with more developed economies. Moving to such countries presents cost-effective possibilities, such as lower manufacturing expenses cost and a cheaper labor workforce, all of which are key business platforms for clothing businesses that want to sustain and thrive in a global market that is seeing increased levels of cutthroat competition. As a result of increases in the cost of
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