1.0 Introduction
Japan, one of the most important garments markets in the world with almost every brand available. Many Readymade garments companies from all over the world want to take advantage of this large and diversified Japanese garment market. This report will give a brief description about Fashionable, a readymade garment company from Australia who want to enter into the Japanese market with their readymade garments. This report will also give information about the Japanese market. The main aspect of this report will be to discuss the various modes of entries available and the most suitable mode of entry Fashionable should choose to enter the Japanese market with its advantages, disadvantages and reasons to choose that particular
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More than 130 titles of fashion presses are distributed and their impacts on the dissemination and diffusion of fashion trends are deemed substantial in the Japanese market (Sakaguchi, 1992 as cited in John Fernie, 2004), together with the impacts of the role model figures of the time and the peer pressures/interactions within and between social groupings. Amongst the 4,000 stores directly operated by Italian luxury fashion houses worldwide, Tokyo has the largest concentration of those brand boutiques, accounting for 188 shops, which is followed by Milan (124), Seoul (108), Paris (92), New York (76) and London (72) (Senken Shimbun, 2000 as cited in John Fernie, 2004).
From the above discussion it can be seen that the Japanese Readymade garment market is very big and competitive in nature. The market fluctuates according to the changing fashion trends and the taste of the people.
4.0 SWOT Analysis
The overall evaluation of a business’s strengths, weaknesses, opportunity, and threats is called SWOT analysis. SWOT analysis consists of an analysis of the external and internal environments (Philip Kotler, 2006).
4.1 Internal Environments Analysis 4.1.1 Strengths
• The main strength of the company is that Fashionable manufactures high quality of garments at very competitive price.
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A strengths, weaknesses, opportunities, and threats (SWOT) analysis is a situational analysis in which internal strengths and weaknesses of an organization, and external opportunities and threats faced by it are closely examined to assist management with planning and course correction (BusinessDictionary.com). Managers can use the results SWOT analysis to determine how competitive the organization is in its industry and to develop an effective organizational strategy. Though commonly associated with for profit organizations, SWOT analysis also are carried out by public institutions such as, hospitals, government agencies, and schools. The County College
SWOT Analysis SWOT Analysis is a very effective way of identifying your Strengths and Weaknesses, and of examining the Opportunities and Threats you face. Carrying out an analysis using the SWOT framework helps to focus activities into areas where the business are strong and where the greatest opportunities lie. Strengths: * What advantages do you have?
Esquel, one of the leading cotton-shirt-manufacturers in the world came from China and it supplies lots of clothing brand such as Banana Republic, Tommy Hilfiger, Hugo Boss, Brooks Brothers, Abercrombie and Fitch, Nike, Nordstrom and Lands’ End, in addition to private companies (Plunkett Research, Ltd.). However, due to the high demand of the US apparel stores for Chinese products, the low cost, which was the main reason why raw materials are being purchased from China, have increased. China’s competition is huge, with Vietnam, the Philippines, Malaysia and Sri Lanka also producing material at cheap prices (Plunkett Research, Ltd.). The US apparel stores can instead purchase from these other Asian countries. It is hard to determine the exact number of suppliers in this industry; but, in general, majority of them are in Asian countries that can provide low-cost raw materials to US-based apparel stores. Therefore, the US apparel stores may acquire higher net profi
A SWOT analysis is an evaluation of the business environment and organizational strategic capability to identify key issues that may impact strategy development (Ireland, R., Hoskisson & Hitt, 2008). Strengths and weaknesses define a firm’s internal environment whereas opportunities and threats constitute the external environment.
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.
The company that I'm going to discussed is Uniqlo Singapore. Since March 1949, Ogori Shōji , a Yamaguchi-based company that have only be operating a men's clothing shops, existed in Ube, Yamaguchi. In May 1984, they opened a unisex casual wear store in Fukuro-machi, Naka-ku and Hiroshima under the name "Unique Clothing Warehouse" It was then, as a contraction of "unique clothing" , the name "Uniqlo" was born. Uniqlo are well known for being high quality, innovative, functional and affordable. To keep such a high standards and reasonable prices, they design and manufacture every single item themselves and there is times where they collaborate with inspiring people like, "Pharrell William" , "Star Wars" and "Tezuka Osamu" etc. In September 1991, the name of the company was then changed to "Fast Retailing" and by April 1994,
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.
Swot analysis refers to the strength, weaknesses, opportunities and the threats that a business faces. Every company has its strengths, weaknesses, opportunities and threats that it faces.
2. Richard M. Johns (2006). The Apparel Industry. 2nd ed. UK, London: Blackwell Publishing Ltd.. 1-124.
There are segmented clothing and retail industries around the world. Therefore, there are provisions for a smaller number of firms in the industry. Although Creación has direct competitors like Jovian and
The purpose of this paper is to explore how fast fashion affects markets and environments, while attempting to increase awareness of
‘Fashion industry is characterised by short product life cycles, volatile and unpredictable demand, tremendous product variety, long and inflexible supply processes and a complex supply chain.’
Rivalry among existing competitors: The apparel industry is highly competitive with a great number of both local and global competitors. As the market is mature, its growth is small. Accelerated growth and expansion to new markets are not easy goals to achieve. The barrier to get out of the industry is quite low for distributors, but high for producers. Most fashion manufacturers moved their production base to low-cost countries like China as wage and raw materials in developed markets like Western Europe are high. Besides, there is no great discrepancy in terms of quality of products, so customers make their purchase choices based on price and brand recognition.
5. barriers to entry - dependent on the industry, it may be hard or easy for new firms to enter the market. examples include economies of scale - m+s obviously has as it is so large, therefore difficult for small independent retailers to enter the market. However ther may be little brand loyalty in the fashion market so new entrants may not find it difficult to gain new customers. the industry is not highly specialised or patented (like, for example, pharmaceuticals) so this is not an issue, the knowledge needed to enter is easy to acquire.
The clothing industry in South Africa has always been an industry where there is intense rivalry between the companies. There are main companies in the industry namely Edgars, Woolworths Truworths, but there are smaller retail companies that enter the market that can satisfy the demand of the consumer’s better.