Case Study : Market Entry Strategy

This expansion demonstrates how the luxury industry is now run by massive corporations whose focus is only on growth, visibility, brand awareness, advertising, and most importantly, PROFITS! With growth and expansion, has come a decrease in quality and rarity. The luxury garments produced are mostly not handmade but are even outsourced to large factories in places such as China and Turkey. Also, to meet quarterly turnover projections, “designers churn(ed) out increasingly trendy collections of clothes, handbags, and shoes.” (Thomas, Pg. 246) With hundreds of new stores around the globe the surplus of designer labeled merchandise is immense hence, the proliferation of outlet malls.

The continually increasing globalization in the world has linked many countries together and the borders have become inconspicuous. Many firms cooperate in a global market, which leads to an increased amount of transnational corporations acting in a global surrounding (Douglas & Wind, 1987). In the fashion industry, the business environment is especially competitive and firms have to adjust their business practices rapidly such as products and launching time of each collection on the basis of the demand of current market (Lowson, King & Hunter, 1999). Companies in the fashion industry like ZARA, Topshop and H&M have emerged a new trend — “fast fashion” that combines two main characteristics: short lead times and trendy design products (Passariello,2008 ; Rohwedder & Johnson, 2008). However, fast fashion leaves behind some issues, which are not beneficial to environmental protection and human costs. In fast fashion industries, it requires companies to complete missions in a short time, some fast fashion companies use unethical acts in order to complete producing on time which may result in environmental issue and appears unfair labour practices. In addition, Luz (2007) pointed out that globalization provided fast fashion industries a chance to produce clothes at lower prices so that they can sell clothes with a cheaper price. This result in many customers considers fast fashion clothes to be disposable. Therefore, this essay will first explain what is fast

The marketing activities like attractive promotions and proper communication tools should be used in very clear manner in order to expand the strong brand image towards the consumers.

The western fashion market is making a rapid move toward the eastern hemisphere and into Chinese territory. While activewear is becoming highly popular in the United States, expensive jean producers are looking toward broadening their consumer market. Brands such as American Rag Chie, RtA, and AG are quickly developing strategies to sell high quality jeans to China’s large economy.

Mike Massicotte joined New Entry as the Director of Finance and Administration where his responsibilities include strategic planning, business development and financial reporting activities. Supporting New Entry’s training and educational footprint nationally, Mike oversees human resources, funding and grant management activities, as well as the information technology platform critical to the growing enterprise.

International market entry modes allow firms to enter foreign markets and can choose the most appropriate entry mode for their industry. After analysing market drivers, demand and consumer behaviour, Pharmaceutical firms may choose the most strategic mode of entry to enter a market. The market entry mode is strategic and is regarded as a major factor in the Internationalisation process (Morschett et al.,2015, p.323). As illustrated below, the International market entry model outlines that Pharmaceutical firms may enter foreign markets through Exports/Imports, Subsidiaries, Mergers/Acquisitions, Joint ventures, or Licensing.

Second, a large capital investment is required to fund the production and the distribution of the apparel. Funding is also required to perform extensive market research to ensure that the styles generated by the brand fit the current fashion trends that consumers are interested in buying. In today’s economic conditions, it may be difficult for new start-up designers to gain access to capital needed to enter the fashion industry. Although there are always talented and up-and-coming designers waiting for their chance to make their mark on the fashion world, it is not likely that new entrants have the potential to greatly affect Tory’s sales. The branding requirements alone to compete in the saturated luxury women’s fashion industry limit the impact of new market entry from new designers.

In the luxury goods industry, the rapid development has brought the market more brands and the latest design products. Industry matures has caused the accelerated development of a wide range of luxury goods (Chiari, 2009). However, one thing was constant, no matter how much increased production costs, the large luxury brand of origin will not be transfer. Long cultural history is an integral part of the luxury brand, and the origin of products have also brought a certain cultural value for luxury goods (Heine, 2012).Especially for Asian consumers, it seems that in the far west, craft superb tailoring and rich cultural history of the western area are the pursue of Chinese consumers (Sombart, 2001).Louis Vuitton 's president has said that (2013), “when customers buy our products, they expect Western quality. The mystery of the origin of our brand is closely linked with our brand”. Although with the close of trade, many luxury goods in the production and sales process will cooperation with other country’s companies, the final product definitely launch in the country of origin. Gucci is a legendary brand in Florence (Italy), and it will also strictly control the production done in Tuscany (Italy), to ensure pure and high-quality products (Gucci, 2015). Therefore, a regional feature has brought an intangible value and more local cultural characteristics to the luxury goods.

At the apex of the market was haute couture with it very high-end “custom” product offering that catered to the extremely wealthy. Luxury goods manufacturers believed diffusion brand’s lower profit margins were offset by the opportunity for increased sales volume and the growing size of the accessible luxury market and protected margins on such products by sourcing production to low-wage countries. Eye-catching utilization of their products by prominent figures in society leads to increasing demands for luxury good items and it is a growing industry with the global luxury goods market growing 9% per year. These consumers buy their products for satisfaction and to boost their self-esteem rather than for ease or comfort. All these components blend in the context of a successful business of the luxury goods.

Herman Miller is a modern furniture company based in Zeeland, Michigan. Originally named Star Furniture Company in the early 1900’s the company was known for high quality bedroom suites (Herman Miller). In 1909 Dirk Jan De Pree was hired as a clerk for the company and eventually became president in 1919 when the company was also renamed Michigan Star Furniture Co. Five years later De Pree convinces his father-in-law, Herman Miller to help purchase 51% of the company’s stock then renamed the company Herman Miller Furniture Company (Herman Miller). The company later became Herman Miller Inc. in 1960. During the 1920’s HMI only produced traditional style furniture but was forced in a new direction by both the great depression and the ambitions of Gilbert Rhode.

Louis Vuitton has successfully gained the title of the world’s leading international fashion house and the world’s most valuable luxury designer brand (O’Connor, 2015). Through their three 3P’s (Brand Promise, Brand Positioning and Brand Performance), it has triumphantly upheld its advantage over its contenders by not only supplying their customers with outstanding products that are incomparable in quality and features, but also offer a customer service atmosphere that is unlike any other (Fill, 2013). New surfacing Markets such as China, has also helped Louis Vuitton to continue to successfully expand, confirm and reinforce position and credibility of their business (Fill, 2013). Louis Vuitton strives on their

Shanghai Tang has been in the business of selling high quality retail items for men and women, clothing and accessories, since 1994. Their designs have been based upon Chinese cultural influence while also being modern and wearable in markets around the world. Although business has gone well under the leadership of Rafael Le Manse, the company is experiencing some new internal and external issues. Shanghai Tang’s competition is about to establish a market presence in China and in order to stay ahead in the game; Le Manse needs to figure out how to expand the existing customer base. Also, Le Manse’s long time creative partner, Joanne Ooi, is leaving

The last problem we highlighted concerns how to increase the number of customers in the mainland China market . First, we believe that the most relevant issue is a survey amongst customers on the Shanghai Tang brand perception and the 5 luxury brands in their top-of-mind, in order to analyze the competitors that the company has to face in the future.

Luxury product sales boost in the emerging marketing like China, which has extraordinary growth and strong potential consumers for the development of luxury goods in the China market. With gradually lower and lower increase of revenue in the European countries, Louis Vuitton (abridged as LV in the following sections) commits itself to set up more stores in China. However, LV is faced with the problems of declining profits in China, which urges it to adjust its entry strategy into the China market. In this case, this report will focus on distinguishing the factors that influence LV’s development in China and

Owing to the successfully accomplishment of " low price, quality assurance" and excellent online sales channels, UNIQLO sees itself as nicely positioned to weather the China's slowing economic growth (Roxburgh, 2016). Meanwhile, serious competition with other apparel retailers is the primary obstacle to the development of UNIQLO. In the view of Zhu (2013), the Chinese market is massive, diverse, and has enormous potential. For the sake of truly thrive in this market, there is a need for foreign brands authentically understand the changing characteristics of Chinese customers, and establish quality products and services to satisfy their requirements. One recommendation is because this report use the SWOT analysis and Marketing Mix to assess UNIQLO's marketing strategies in China, it is worthwhile for further researchers to utilize other marketing tools to evaluate UNIQLO such as Porter's Five Competitive